On 27 April 2022, President Rodrigo Duterte signed into law Republic Act No. 11711 (RA 11711), which amended the antiquated Republic Act 4566 (RA 4566) otherwise known as the “Contractors’ License Law.” The amendments seek, among others, to promote the growth of the contracting business, to upgrade the construction capability both in public and private sectors, and to ensure that only licensed, competent, and dependable contractors are allowed to render construction work, thereby ensuring the quality of construction projects, buildings, and other public works and public safety.
RA 11711 expounded on the prohibited acts under the Contractors’ License Law and imposed harsher penalties therefor. Unlicensed contractors, who, for a price, commission, fee or wage, submit or attempt to submit a bid to construct, or contract to or undertake to construct, or assume charge in a supervisory capacity of a construction work, would now be penalized with a fine ranging from P100,000 to P500,000, plus one-tenth of one percent (0.1 percent) of the project cost. They would also be prohibited from obtaining a contractor’s license for a period of one year. Similar penalties plus automatic revocation of existing license would be imposed upon two or more licensees who jointly submit a bid without securing an additional license to act as a joint venture or combination. Further, any person who presents or files the license certificate of another, gives false evidence to the Philippine Contractors Accreditation Board (PCAB), impersonates another, or uses an expired or revoked license would now be penalized with a fine of P500,000 to P1,000,000 and imprisoned for a period of one to six years. The foregoing is a significant increase from the P500 to P5,000 fine under RA 4566.
RA 11711, likewise, increased the fees ten-fold for obtaining a license or a renewal thereof. From P50 to P60, the prescribed fees are now: P5,000 for an original license; P6,000 for the examination of an applicant; and P5,000 for renewal. RA 11711 has also authorized PCAB, in consultation with its stakeholders, to adjust or increase the fees by not more than 15 percent.
All contractors’ licenses shall be valid for one year from the date of issuance, but there is good news for long-standing, well-established existing contractors. Those who have been operating in good standing for 25 years or more may renew their licenses every three years, and those operating in good standing for 10 years or more may renew their licenses every two years.
Applications and all other requirements for license renewal may be filed with the PCAB, either in person or online, not earlier than 90 days but not later than 30 days before the expiration of the license. To apply online, register at the PCAB Online Licensing Portal at https://www.pcab.construction.gov.ph or https://www.pcabgovph.com. You may also visit http://construction.gov.ph/program and services/contractors-licensing-and-registration/ to know more about contractor’s licensing and registration.
The Daily Tribune
