TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

938 Aurora Blvd., Cubao, Quezon City

CE 593
CE LAWS, ETHICS, AND CONTRACTS
CES41S1

REPORT NO. 3: LAWS RELATED TO THE PROFESSION OF

CIVIL ENGINEER

PANGANIBAN, ELIJAH V.

GRADE
DATE OF SUBMISSION:
05 MARCH 2024
TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
938 Aurora Blvd., Cubao, Quezon City

ATTENTION:
MR. HERNANDO GOZON
FACULTY, CIVIL ENGINEERING DEPARTMENT

CE 593 – CE LAWS, ETHICS, AND CONTRACTS

REPORT NO. 3: LAWS RELATED TO THE PROFESSION OF
CIVIL ENGINEER

GENTLEMAN I AM SUBMITTING TO YOU

MY REPORT NO. 3

RESPECTFULLY SUBMITTED: PANGANIBAN, ELIJAH V.

 Republic Act 544 (Civil Engineering Law)
Republic Act 544 – Civil Engineering Law An Act to Regulate the Practice of Civil
Engineering in the Philippines
• Under Republic Act 544, the practice of civil engineering is defined as "the
application of mathematical and physical sciences in the design, construction, and
maintenance of public and private works, or the execution of any technical works
requiring the services of a person trained and experienced in the principles and
methods of engineering."
• The law establishes the Board of Civil Engineering (BCE), a government agency
responsible for the regulation and supervision of the civil engineering profession.
• The Republic Act was approved on the 17th of July 1950 and was amended by RA
1582, which was also approved on the 16th of June 1956
• The legislation was reintroduced by Senator Panfilo M. Lacson as Senate Bill No.
2770
Some of the key provisions of RA 544 include:
Registration and licensure: The law requires all civil engineering practitioners to be
registered and licensed by the BCE. To be eligible for licensure, an individual must have
a degree in civil engineering from a recognized educational institution and must have
passed the civil engineering licensure examination.
Code of ethics: RA 544 sets a code of ethics that all civil engineers must adhere to. This
includes principles such as honesty, integrity, and responsibility. Violations of the code of
ethics can result in disciplinary actions by the BCE.
Scope of practice: The law defines the scope of practice for civil engineers, which
includes designing, constructing, and supervising various types of engineering projects.
It also prohibits unlicensed individuals from practicing civil engineering.
Continuing professional development: RA 544 mandates that civil engineers engage
in continuous professional development to keep up with the advancements in their field.
This includes attending seminars, workshops, and other educational activities. Penalties:
The law provides penalties for individuals who violate its provisions. This can include
fines, suspension, or revocation of the license to practice civil engineering.
 RA 386: Philippine Civil Code
An Act to Ordain and Institute the Civil Code of the Philippines It is the product of
codification of private law in the Philippines.
• Public Law – deals with issues that affect the public or state, the society.
• Private Law – affects the rights and obligations of individuals, families, businesses and
small groups and exists to assist citizens in disputes that involve private matter. Its scope
is more specific than public law.
Civil Code of the Philippines is the basic law governing persons and family relations,
property and property rights, ownership of modifications, the modes of acquiring
ownership, and the obligations and contracts.
Its history was influenced by the Spanish “Codigo Civil”, which was enforced in 1889 in
the Philippines. It remained effective until American occupation. In 1940, President
Quezon formed a commission to draft a new Civil Code, but the records were destroyed
during the Japanese Invasion. In 1947, President Roxas created a new Code
Commission.
The final draft was completed by December 1947. It was submitted in the Congress which
enacted it into law through Republic Act 386. It was enacted and signed on June 18, 1949,
and took effect by the year 1950.
Important sections and provisions of the Philippine Civil Code:
Title I: Persons (Articles 37-78)
Article 37: Juridical capacity, which is the fitness to be the subject of legal relations, is
inherent in every natural person and is lost only through death.
Article 38: Minority, insanity, imbecility, the state of being a deaf-mute, prodigality, and
civil interdiction are mere restrictions on capacity to act but do not exempt the
incapacitated person from certain obligations, as when the latter arise from his acts or
from property relations, such as easements.
Title II: Different Kinds of Property (Articles 414-465)
Article 414: All things which are or may be the object of appropriation are considered
either: Immovable or real property Movable or personal property
Title III: Property (Articles 712-1114)
Article 712: Natural fruits, industrial fruits, and civil fruits are included in the concept of
fruits of things. Article 920: The heir who has renounced the inheritance shall not be
liable for the expenses of the illness which caused the death of the decedent, without
prejudice to the fulfillment of the duties referred to in the first paragraph of Article 1994.
Title IV: Modes of Acquiring Ownership (Articles 712-1114)
Article 712: Ownership is acquired by occupation and by intellectual creation.
Article 1136: The ownership of movables prescribes through possession for three years.
Title V: Prescription (Articles 1106-1135)
Article 1106: By prescription, one acquires ownership and other real rights through the
lapse of time in the manner and under the conditions laid down by law.
Title VI: Succession (Articles 774-1080)
Article 774: Succession is a mode of acquisition by virtue of which the property, rights,
and obligations to the extent of the value of the inheritance, of a person are transmitted
through his death to another or others either by his will or by operation of law.
Title VII: Donations (Articles 725-781)
Article 725: Donation is an act of liberality whereby a person disposes gratuitously of a
thing or right in favor of another who accepts it.
Title IX: Contracts (Articles 1305-1448)
Article 1305: A contract is a meeting of minds between two persons whereby one binds
himself, with respect to the other, to give something or to render some service.
Title X: Agency (Articles 1868-1935)
Article 1868: By the contract of agency, a person binds himself to render some service
or to do something in representation or on behalf of another, with the consent or authority
of the latter.
Title XI: Sales (Articles 1458-1482)
Article 1458: By the contract of sale, one of the contracting parties obligates himself to
transfer the ownership and to deliver a determinate thing, and the other to pay therefor a
price certain in money or its equivalent.
Title XII: Lease (Articles 1643-1688)
Article 1643: In the lease of things, one of the parties binds himself to give to another the
enjoyment or use of a thing for a price certain, and for a period which may be definite or
indefinite.
Title XIII: Partnership (Articles 1767-1867)
Article 1767: By the contract of partnership, two or more persons bind themselves to
contribute money, property, or industry to a common fund, with the intention of dividing
the profits among themselves.
Article 1723 The engineer or architect who drew up the plans and specifications for a
building is liable for damages if within fifteen years from the completion of the structure
the same should collapse by reason of a defect in those plans and specifications, or due
to the defects in the ground. The contractor is likewise responsible for the damage if the
edifice fags within the same period on account of defects in the construction or the use of
materials of inferior quality furnished by him, or due to any violation of the terms of the
contract. If the engineer or architect supervises the construction, he shall be solitarily
liable with the contractor.
Acceptance of the building, after completion, does not imply waiver of any of the causes
of action by reason of any defect mentioned in the preceding paragraph. The action must
be brought within ten years following the collapse of the building.
Article 1724 The contractor who undertakes to build a structure or any other work for a
stipulated price, in conformity with plans and specifications agreed upon with the
landowner, can neither withdraw from the contract nor demand an increase in the price
on account of the higher cost of labor or materials, save when there has been a change
in the plans and specifications, provided:
(1) Such change has been authorized by the proprietor in writing; and
(2) The additional price to be paid to the contractor has been determined in writing by
both parties. (1593a)
Article 1725 The owner may withdraw at will from the construction of the work, although
it may have been commenced, indemnifying the contractor for all the latter's expenses,
work, and the usefulness which the owner may obtain therefrom, and damages. (1594a)
Article 1726 When a piece of work has been entrusted to a person by reason of his
personal qualifications, the contract is rescinded upon his death. In this case the
proprietor shall pay the heirs of the contractor in proportion to the price agreed upon, the
value of the part of the work done, and of the materials prepared, provided the latter yield
him some benefit. The same rule shall apply if the contractor cannot finish the work due
to circumstances beyond his control. (1595)
Article 1727 The contractor is responsible for the work done by persons employed by
him. (1596)
Article 1728 The contractor is liable for all the claims of laborers and others employed by
him, and of third persons for death or physical injuries during the construction. (n)
Article 1729 Those who put their labor upon or furnish materials for a piece of work
undertaken by the contractor have an action against the owner up to the amount owing
from the latter to the contractor at the time the claim is made. However, the following shall
not prejudice the laborers, employees and furnishers of materials:
(1) Payments made by the owner to the contractor before they are due;
(2) Renunciation by the contractor of any amount due him from the owner. This article is
subject to the provisions of special laws. (1597a)
Article 1730 If it is agreed that the work shall be accomplished to the satisfaction of the
proprietor, it is understood that in case of disagreement the question shall be subject to
expert judgment. If the work is subject to the approval of a third person, his decision shall
be final, except in case of fraud or manifest error. (1598a)
Article 1731 He who has executed work upon a movable has a right to retain it by way
of pledge until he is paid. (1600)
 Republic Act No. 4566 – Contractors’ License Law
An Act Creating the Philippine Licensing Board for Contractors, Prescribing its Powers,
Duties and Functions, Providing Funds Therefore, and for Other Purposes
The government has been focusing on the construction industry since 2016 because it is
an important sector for national development. This industry not only builds the
infrastructure needed for development but also provides employment opportunities for the
people. It is crucial that the State's policies are in line with current standards to support
the construction industry's vital role. To achieve this, there is a proposal to update the
current legislation on contractors' licenses in the Philippines. The Contractors' License
Law, also known as Republic Act No 4566, was enacted in 1965 to ensure that only
qualified and reliable contractors are allowed to undertake construction projects in the
country.

Article I: Administration
Section 1. Title of Act. This Act shall be known as the "Contractors' License Law."
Section 2. Composition of the Board. To carry out the purpose of this Act, there is hereby
created a "Philippine Licensing Board for Contractors", under the office of the Board of
Examiners, hereinafter referred to as the Board, consisting of a Chairman and two other
members who shall be appointed by the President of the Philippines, with the consent of
the Commission on Appointments.
Section 3. Qualifications of members. Each member of the Board shall be of recognized
standing in his branch of the contracting business for ten years, or more, a citizen and
resident of the Philippines for at least eight years immediately prior to his appointment, at
least thirty-five years of age and possessed of a good moral character.
Section 4. Term of office. The Chairman and members of the Board shall hold office for
a term of three years. The members of the Board first appointed shall hold office for the
following terms: Chairman for three years; one member for two years; and the other
member for one year.
Any member of the Board may be removed by the President of the Philippines for neglect
or dereliction of duty, incompetence, malpractice, and unprofessional, unethical, immoral
or dishonorable conduct: Provided, That in the course of investigation, the President of
the Philippines shall have the power to suspend such member under investigation and
designate a temporary member in his place.
Vacancies in the Board shall be filled for the period of the unexpired term only.
Section 5. Powers and duties of the Board. The Board is vested with authority to issue,
suspend and revoke licenses of contractors, to investigate such violations of this Act and
the regulations thereunder as may come to its knowledge and, for this purpose, issue
subpoena and subpoena duces tecum to secure appearance of witnesses in connection
with the charges presented to the Board, and to discharge such other powers and duties
affecting the construction industry in the Philippines. The Board may, with the approval of
the President of the Philippines, issue such rules and regulations as may be deemed
necessary to carry out the provisions of this Act, to adopt a code of ethics for contractors
and to have an official seal to authenticate its official documents.
Section 6. Board meetings. The Board shall meet as frequently as is necessary to
perform its duties, but it shall meet at least once a month. It may be convoked by the
Chairman or upon written request of the two other members.
Section 7. Compensation. For every meeting attended, the Chairman of the board shall
receive a per diem of fifty pesos, while the members thereof shall receive a per diem of
twenty-five pesos each: Provided, That in no case will the total amount received by each
of them exceed the sum of four hundred pesos for any one month.
Section 8. Annual report. The Board shall, at the end of each fiscal year, submit to the
President of the Philippines and the Congress a detailed report of its activities and
proceedings during the period covered by the fiscal year ended.
Section 9. Definition of terms. As used in this Act:
(a) "Persons" include an individual, firm, partnership, corporation, association or other
organization, or any combination of any thereof.
(b) "Contractor" is deemed synonymous with the term "builder" and, hence, any person
who undertakes or offers to undertake or purports to have the capacity to undertake or
submits a bid to, or does himself or by or through others, construct, alter, repair, add to,
subtract from, improve, move, wreck or demolish any building, highway, road, railroad,
excavation or other structure, project, development or improvement, or to do any part
thereof, including the erection of scaffolding or other structures or works in connection
therewith. The term contractor includes subcontractor and specialty contractor.
(c) A "general engineering contractor" is a person whose principal contracting business is
in connection with fixed works requiring specialized engineering knowledge and skill,
including the following divisions or subjects: irrigation, drainage, water power, water
supply, flood control, inland waterways, harbors, docks and wharves, shipyards and ports,
dams, hydroelectric projects, levees, river control and reclamation works, railroads,
highways, streets and roads, tunnels, airports and airways, waste reduction plants,
bridges, overpasses, underpasses and other similar works, pipelines and other system
for the transmission of petroleum and other liquid or gaseous substances, land leveling
and earth moving projects, excavating, grading, trenching, paving and surfacing work.
(d) A "general building contractor" is a person whose principal contracting business is in
connection with any structure built, being built, or to be built, for the support, shelter and
enclosure of persons, animals, chattels or movable property of any kind, requiring in its
construction the use of more than two unrelated building trades or crafts, or to do or
superintend the whole or any part thereof. Such structure includes sewers and sewerage
disposal plants and systems, parks, playgrounds and other recreational works, refineries,
chemical plants, and similar industrial plants requiring specialized engineering knowledge
and skill, powerhouse, power plants and other utility plants and installations mines and
metallurgical plants, cement and concrete works in connection with the abovementioned
fixed works. A person who merely furnishes materials or supplies under section eleven
without fabricating them into or consuming them in the performance of the work of the
general building contractor does not necessarily fall within this definition.
(e) A "specialty contractor" is a person whose operations pertain to the performance of
construction work requiring special skill and whose principal contracting business involves
the use of specialized building trades or crafts.
Section 10. Public personnel. This Act shall not apply to an authorized representative of
the Republic of the Philippines or any incorporated town, city, province, or other municipal
or political corporation or subdivision of the Republic of the Philippines.
Section 11. Finished products. This Act shall not apply to any sale or installation of any
finished products, materials or articles or merchandise, which are not actually fabricated
into and do not become a permanent and fixed part of the structure.
Section 12. Personal property. This Act shall not apply to any construction, alteration,
improvement of repair of personal property.
Section 13. Minor work. This Act shall not apply to any work or operation on one
undertaking or project by one or more contracts, with an aggregate contract price of less
than ten thousand pesos for the labor, materials and all other items. This exemption,
however, shall not apply in any case wherein the work or construction is only part of a
larger or major operation, whether undertaken by the same or a different contractor, or in
which a division of the operation is made in contracts of amounts less than ten thousand
pesos for the purpose of evading or otherwise violating the provisions of this Act.
Section 14. Architects and engineers. This Act shall not apply to a registered civil
engineer or a licensed architect acting solely in his professional capacity.
Section 15. Material men. This Act shall not apply to any person who only furnishes
materials or supplies without fabricating them into, or consuming them in the performance
of, the work of the contractor.
Article II: Application of the Act
Section 16. Classification. For the purpose of classification, the contracting business
includes any or all of the following branches.
(a) General engineering contracting;
(b) General building contracting; and
(c) Specialty contracting.
Section 17. Power to classify and limit operations. The Board may adopt reasonably
necessary rules and regulations to effect the classification of contractors in a manner
consistent with established usage and procedure as found in the construction business
and may limit the field and scope of the operations of a licensed contractor to those in
which he is classified to engage, as respectively defined in section nine. A license may
make application for classification and be thus classified in more than one classification
if the licensee meets the qualification s prescribed by the Board for such additional
classification or classifications. No additional application or license fee shall be charged
for qualifying or classifying a licensee in additional classifications.
Section 18. Incidental work. Nothing in this Act shall prohibit a specialty contractor from
taking and executing a contract involving the use of two or more crafts or trades, if the
performance of the work in such crafts or trades, other than in which he is licensed, is
only incidental or supplemental to the performance of work in the said craft or trade for
which he is licensed.

Article III: Licensing

Section 19. Examinations required. In accordance with the rules and regulations
promulgated by it, the Board may investigate, classify and qualify applicants for
contractors' licenses by written or oral examination, or both.
Section 20. Qualifications of applicants for contractors' licenses. The Board shall require
an applicant to show at least two years of experience in the construction industry, and
knowledge of the building, safety, health and lien laws of the Republic of the Philippines
and the rudimentary administrative principles of the contracting business as the Board
deems necessary for the safety of the contracting business of the pubic. For the purpose
of this section, a partnership, corporation, or any other organization may qualify through
its responsible managing officer appearing personally before the Board who shall prove
that he is a bona fide responsible officer of such firm and that he exercises or is in a
position to exercise authority over the contracting business of his principal or employer in
the following manner: (1) to make technical and administrative decisions; and, (2) to hire,
superintend, promote, transfer, lay off, discipline or discharge employees.
Section 21. Notice of disassociation required. If the individual who has qualified under
the preceding section ceases for any reason whatsoever to be connected with the
licensee under this Act, or if any individual who has been denied a license, or whose
license had been revoked or suspended, or has filed to secure the restoration of his
license if it has been suspended, or has been a responsible managing officer or employee
of any partnership, corporation, firm or association whose application for a license has
been denied, revoked, or suspended, or who has failed to secure the restoration of its
license if it has been suspended, shall in anyway become associated with or be employed
by a licensee, the licensee shall notify the Board in writing ten days from such cessation,
association or employment. Such notice may entitle the license concerned to remain in
force within reasonable period as determined by the rules prescribed by the Board.
Section 22. Failure to notify in case of disassociation. If the license fails to notify the
Board within the tenday period in accordance with the preceding section, his license shall
be ipso facto suspended. Such license may be restored, however, upon the filing of an
affidavit, executed by the licensee or the duly authorized responsible managing officer of
the licentiate firm, with the Board, to the effect that the person originally appearing for
examination on behalf of the licensee has been replaced by another individual, that this
individual has been qualified by examination, that he can comply with the provision of this
section and that he has not had his license suspended or revoked or that he has not been
connected with a licensee whose license has been suspended or revoke due to the lack
of a good character required of an applicant for a license.
Section 23. Issuance of licenses. Upon the payment of the corresponding fee and the
filing of the application, and after examination and investigation as may be required, the
Board within fifteen days after the approval of the application shall issue a license to the
applicant permitting him to engage in business as a contractor under the terms of this Act
for the remaining part of the fiscal year.
Section 24. Death. A surviving member or members of a licensed partnership by reason
of death shall be entitled to continue in business under such license until the expiration
date thereof, if an application for permission is made to the registrar within thirty days
after the death of the deceased member, and approved by the Board.
Section 25. No examination required. Contractors actively engaged in the construction
industry at the effectivity of this Act and licensed as such for the last five years, may upon
application, be issued license without necessity of examination.

Article IV: Records

Section 26. Publication of list. The Board shall publish, at least once a year in a
newspaper of general circulation, a list of the names and addresses of contractors,
registered under this Act and of the licenses issued, suspend or revoked, and such further
information with respect to this Act and its administration that it deems proper. Copies of
such lists may also be furnished by the Board upon request to any firm or individual upon
payment of a reasonable fee as fixed by the Board.
Section 27. Changes. All licenses shall report to the Board all changes of personnel,
name, style or addresses recorded under this Act within thirty days after the changes are
made.
 Article V: Disciplinary Action
Section 28. Causes for disciplinary action. The following shall constitute causes for
disciplinary action:
(a) Willful and deliberate abandonment without lawful and/or just excuse of any
construction project or operation engaged in or undertaken by the licensee as a
contractor.
(b) Willful material and substantial departure from or disregard of plans and/or
specifications in any material respect, and prejudicial to another without consent of the
owner or the person entitled to have the particular construction project or operation
completed in accordance with such plans and/or specifications or their duly authorized
representations.
(c) Willful misrepresentation of a material and substantial fact by an applicant in obtaining
a license;
(d) Aiding or abetting an unlicensed person to evade the provisions of this Act, or
knowingly combining or conspiring with an unlicensed person, or allowing one's license
to be used by an unlicensed person, or acting as agent or partner, or associate, or
otherwise of an unlicensed person with the intent to evade the provisions of this Act.
(e) Failure to comply the provisions of this Act;
(f) The doing of any willful or fraudulent act by the licensee as a consequence of which
another is injured or damaged; and
(g) The participation by a licensee in the performance by any partnership, corporation,
firm, or association of which he is a responsible managing partner, employee or officer,
of any act or omission constituting a cause for disciplinary action under this Act.
 Republic Act No. 9184 – Government Procurement Reform Act
The Republic Act No. 9184, also known as the Government Procurement Reform Act of
the Philippines, was signed into law on the year 2003. The purpose of this act is to
establish a modern, transparent, and accountable government procurement system that
ensures the efficient use of public funds. The key provisions of RA 9184 include:
1. General Principles: The act emphasizes the principles of transparency,
competitiveness, accountability, efficiency, and public participation in government
procurement.
2. Procurement Methods: The act provides guidelines for different procurement methods,
such as competitive bidding, limited source bidding, direct contracting, and alternative
methods for small value procurement.
3. Bid Documents and Bidding Process: RA 9184 sets standards for bid documents, pre-
bid conferences, bid submission, bid evaluation, and post-qualification procedures.
4. Procurement Planning: Government agencies are required to prepare an Annual
Procurement Plan (APP) to ensure effective and efficient procurement of goods, works,
and services.
5. Bid Security and Performance Security: The act requires bidders to post bid securities,
which serve as a guarantee of the bidder's commitment to undertake the project if
awarded. Performance securities are also required to ensure the satisfactory completion
of the project.
6. International Agreements and Treaties: The act encourages international cooperation
in procurement through adherence to international agreements and treaties.
7. Dispute Resolution: RA 9184 establishes mechanisms for resolving disputes in the
procurement process, including administrative remedies, protests, and the creation of
Government Procurement Policy Board (GPPB) and Bids and Awards Committee (BAC)
to oversee the process.
8. Anti-Corruption Measures: The act includes provisions on conflict of interest,
blacklisting of erring contractors, and penalties for violations.
9. Modernization and Capacity Building: Government agencies are encouraged to adopt
electronic procurement systems and conduct capacity-building programs to ensure the
effective implementation of the act.
The Government Procurement Reform Act aims to promote fairness, transparency, and
efficiency in government procurement processes, ultimately leading to better value for
taxpayers' money.
Key Sections:
Section 1: Provides the title of the act, its declaration of policy, and its objectives,
emphasizing the need for fair, efficient, and transparent procurement processes.
Section 2: Defines key terms used in the act, including "government procurement,"
"procuring entity," and "goods, infrastructure projects, and consulting services."
Section 3: Establishes the Government Procurement Policy Board (GPPB) as the
primary policy and regulatory body responsible for overseeing government procurement.
Section 4: Defines the powers and functions of the GPPB, which include issuing rules
and regulations, providing training, and resolving disputes related to procurement.
Section 5: Specifies the composition of the GPPB, including its chairperson and
members.
Section 6: Details the creation of the Bids and Awards Committee (BAC) in procuring
entities, responsible for conducting the procurement process and ensuring compliance
with the GPRA.
Section 7: Outlines the qualifications and disqualifications of BAC members and the
procedures for their appointment.
Section 8: Enumerates the functions and responsibilities of the BAC, including the
preparation of bid documents, the conduct of pre-procurement and pre-bid conferences,
and the evaluation of bids.
Section 9: Discusses the procurement methods available, such as competitive bidding,
shopping, and direct contracting, and sets forth the criteria for selecting the appropriate
method.
Section 10: Defines the procurement process, including pre-procurement, procurement
planning, publication of notices, bid submission, bid evaluation, awarding of contracts,
and post-qualification.
Section 11: Addresses the procurement of goods, specifying requirements for
specifications, quality standards, and inspection and testing.
Section 12: Covers the procurement of infrastructure projects, with provisions on the
preparation of detailed engineering designs and cost estimates.
Section 13: Discusses the procurement of consulting services, including the use of
shortlists and the selection of consultants.
Section 14: Provides for the eligibility of suppliers, contractors, and consultants, outlining
the requirements for registration and prequalification.
Section 15: Details the bid security and performance security requirements for bidders
and contractors.
Section 16: Sets out the rules on bid submission and opening, including bid envelopes
and bid validity periods.
Section 17: Addresses the bid evaluation process, specifying the criteria for bid
evaluation and bid evaluation reports.
Section 18: Covers the awarding of contracts, including the posting of performance
securities and the issuance of notices of award and notices to proceed.
Section 19: Discusses protests and disputes, establishing procedures for resolving
disagreements related to procurement.
Section 20: Addresses procurement-related offenses and penalties, including fines and
imprisonment for violations of the GPRA.
Section 21: Grants the GPPB the authority to issue implementing rules and regulations
(IRR) for the GPRA.
Section 22: Provides for the publication of the IRR and the GPRA itself.
Section 23: Specifies the effectivity date of the GPRA.

Republic Act No. 6957 – Build, Operate and Transfer Law

An Act Authorizing the Financing, Construction, Operation and Maintenance of
Infrastructure Projects by the Private Sector and for Other Purposes.
Policy It is the declared policy of the State to recognize the indispensable role of the
private sector as the main engine for national growth and development and provide the
most appropriate incentives to mobilize private resources for the purpose of financing the
construction, operation and maintenance of infrastructure and development projects
normally financed and undertaken by the Government.
• Provision for incentives and support
• Climate of minimum Government regulations
• Reasonable returns of investments
• Transparency and Competition
• Appropriate risk-sharing mechanisms
• Closer collaboration between national and local governments
• Compliance with obligations and undertakings
Coverage :
• Department. Bureau, Office, Commission,
• Authority or Agency of National Government
• Local Government Units
• Government-Owned and/ or –Controlled Corporations
 • Government Financial Institutions
• State Universities and Colleges
BOT Law Variants
• Build-and-transfer (BT)
• Build-lease-and-transfer (BLT)
• Build-operate-and-transfer (BOT)
• Build-own-and-operate (BOO)
• Build-transfer-and-operate (BTO)
• Contract-add-and-operate (CAO)
• Develop-operate-and-transfer (DOT)
• Rehabilitate-operate-and transfer (ROT)
• Rehabilitate-own-and-operate (ROO)
• Others approved by President
On 26 April 2022, the Implementing Rules & Regulations (IRR) of “An Act Authorizing the
Financing, Construction, Operation and Maintenance of Infrastructure Projects by the
Private Sector and for Other Purposes” or the Build-Operate-and-Transfer Law (Republic
Act No. 6957, as amended by Republic Act No. 7718) was amended.
Some of the Key Amendments of the 2022 IRR
• Required the advice of the regulator and/or the approval of the approving body for
finalizing the formula/adjustment schedule for the imposition of tolls/fees/rentals/charges
• Defined “availability payments” as the predetermined payments by the Agency/LGU to
the Project Proponent in exchange for delivering an asset or service in accordance with
the contract. The definition likewise provides that such shall not be construed as a Direct
Government Subsidy
• Removed the provision requiring projects to first undergo evaluation by a technical
working group composed of NEDA, the Department of Finance (DOF), and the
Agency/LGU, prior to endorsement to the ICC Technical Board
 Executive Order 1008 Construction Industry Arbitration Law
The Construction Industry Arbitration Commission (CIAC) was created in recognition of
the construction industry's contribution to national development goals. Realizing that
delays in the resolution of construction industry disputes would also hold up the country's
development, Executive Order No. 1008 (EO 1008) expressly mandates the CIAC to
expeditiously settle construction industry disputes and, for this purpose, vests upon the
CIAC original and exclusive jurisdiction over disputes arising from, or connected with,
contracts entered into by parties involved in construction in the Philippines, whether the
dispute arises before or after the completion of the contract, or after the abandonment or
breach thereof.
Executive Order 1008, also known as the Construction Industry Arbitration Law of the
Philippines, was enacted on February 4, 1985, by then-President Ferdinand Marcos. Here
are the key details about this executive order:
Purpose: The primary objective of Executive Order 1008 is to expedite the resolution of
disputes in the construction industry through arbitration, thereby promoting efficiency and
minimizing delays associated with traditional court proceedings.
Creation of Construction Industry Arbitration Commission (CIAC): The executive
order established the CIAC as the sole arbiter of disputes arising from or connected to
construction contracts in the Philippines. CIAC operates as an attached agency of the
Department of Trade and Industry (DTI).
Jurisdiction: CIAC has jurisdiction over disputes related to construction contracts,
including but not limited to design and construction, engineering, procurement, and
consultancy services. The parties involved must agree to submit their dispute to CIAC.
Appointment of Arbitrators: CIAC has the authority to appoint and regulate arbitrators
for construction disputes. Arbitrators can be either professionals from the construction
industry or lawyers with extensive knowledge and experience in construction laws.
Arbitration Procedures: CIAC follows an expedited arbitration process to ensure a swift
resolution of disputes. The executive order provides specific guidelines for the initiation,
conduct, and conclusion of arbitration proceedings, including the qualifications and
obligations of arbitrators and the enforceability of arbitration awards.
Exclusivity of Arbitration: Executive Order 1008 emphasizes the exclusivity of
arbitration as the preferred method of dispute resolution for the construction industry. It
discourages parties involved in construction contracts from initiating court litigation unless
authorized under few exceptions prescribed in the order.
Appeals: The executive order establishes the mechanism for appealing CIAC's
arbitration decisions to the Court of Appeals. Appeals are only allowed on questions of
law and must be filed within thirty days from receipt of the award.
 Presidential Decree No 1445 Government Auditing Code of the Philippines
Presidential Decree No. 1445, also known as the "Government Auditing Code of the
Philippines" (GACP), is a law that establishes the framework and procedures for
government auditing in the Philippines. It governs the conduct of audits, examinations,
and reviews of government agencies, departments, and instrumentalities to ensure
transparency, accountability, and proper use of public funds.
Date of Enactment: Presidential Decree No. 1445 was issued on June 11, 1978
The GACP needs to be considered when dealing with construction contracts involving the
government. The GACP specifies that the powers of the Philippine Commission on Audit
(COA) extend to the examination, audit and settlement of all debts and claims of any sort
due from or owing to the government or any of its subdivisions, agencies and
instrumentalities. This becomes relevant when, in the event of a dispute, a contractor
obtains a favourable judgment against the government.
There have been several instances in the past when a CIAC award against the
government has been modified and reduced by the COA, pursuant to its power to approve
money claims against the government. In Taisei Shimizu Joint Venture v COA and DOTr
(2020), the Supreme Court ruled that the COA may not disregard final and executory
judgments rendered by courts and other adjudicative bodies by disallowing any part of
such final award.
Presidential Decree 1096– Philippine Green Building Code
The Philippine Green Building Code seeks to improve the efficiency of building
performance by adopting measures that promote resource management efficiency and
site sustainability while minimizing the negative impact of buildings on human health and
the environment. The Code proposes a set of standards which apply to efficient use of
resources, site selection, planning, design, construction, use, occupancy, operation and
maintenance.
Presidential Decree 1096– Philippine Green Building Code The Green Building Code
shares the following principles:
1) the technical professionals, developers, contractors, property managers and building
owners involved in the planning, design, construction and management of buildings have
the opportunity to help government address the adverse effects of climate change by
ensuring that buildings are planned, designed, constructed, operated and maintained to
the required efficiency level;
2) resources must be used efficiently to equitably meet the developmental and
environmental needs of the present and future generations;
3) occupants of green buildings will benefit from improved indoor environmental quality
which promotes higher productivity and better comfort.