Office of the do temp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 26 FEB 19 A9:51 First Regular Session RECEIVED BY: SENATE S. No. 1874 Introduced by Senator JV Ejercito AN ACT STRENGTHENING THE CONTRACTOR'S LICENSE LAW, FURTHER AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 4566, AS AMENDED, AND FOR OTHER PURPOSES EXPLANATORY NOTE Recent national issues have compelled the Department of Public Works and Highways, or DPWH, to take decisive action by blacklisting several contractors following the discovery of infrastructure anomalies that began to surface in July 2025. These incidents raise serious concerns about the quality, integrity, and accountability of infrastructure projects that directly affect the safety and welfare of our people. Under Republic Act No. 4566, contractors are required to secure a valid license to ensure proper oversight and accountability in the construction sector. This law regulates the construction industry and established the Philippine Contractors Accreditation Board, or PCAB, to supervise licensing and compliance. Recognizing the need for even stricter safeguards, Congress further strengthened this framework through Republic Act No. 11711, which imposes tighter rules on prohibited acts and more stringent requirements for the renewal of contractor licenses. These measures underscore the government's commitment to professionalizing the construction industry, enforcing higher standards, and ensuring that only qualified and responsible contractors are entrusted with public infrastructure projects.
With the recent anomalies involving corruption in government infrastructure projects, particularly in flood-control works, it is high time for us to further strengthen our existing laws and enforcement mechanisms. These incidents not only waste public funds but, more importantly, put lives and communities at risk. This bill therefore seeks to restructure and strengthen the Philippine Contractors Accreditation Board, or PCAB. It proposes more stringent qualifications and fixed terms of office for its members, enhances its regulatory and disciplinary powers, and expands the prescriptive period for filing cases against erring contractors to ensure that accountability is not easily evaded. Moreover, it establishes clear and stricter conditions for the restoration or renewal of contractor licenses, so that only those who meet the highest standards of competence and integrity are allowed to undertake public infrastructure projects. In light of the foregoing, the immediate passage of this legislation is earnestly sought. • ' JV EJERCITO
Go One of the Gie mu TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES A9:51 26 FEB 19 First Regular Session RECEIVED BY: SENATE S. No.1874 Introduced by Senator JV Ejercito AN ACT STRENGTHENING THE CONTRACTOR'S LICENSE LAW, FURTHER AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 4566, AS AMENDED, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Section 2 of Republic Act No. 4566, as amended by Section 4 of
2 Presidential Decree No. 1746, is hereby further amended to read as follows: "Section 4. The Philippine Contractors Accreditation Board. There is hereby created a Philippine Contractors Accreditation Board under the jurisdiction and supervision of the Authority. The Philippine Contractors Licensing Board is hereby abolished and all its funds and records are hereby transferred to the Philippine Contractors Accreditation Board. (a) Composition. The Board shall be composed of a Chairman and [two (2)] FOUR (4) members to be appointed by the President upon recommendation of the Authority: PROVIDED, THAT THE CHAIRMAN SHALL BE SELECTED FROM THE LIST OF NOMINEES OF THE RECOGNIZED CONTRACTORS' ASSOCIATIONS. The present Board of the Philippine Contractors Licensing Board shall continue to hold office as the Board of the Philippine
Contractors Accreditation Board until their respective successors have been duly appointed. THE FOLLOWING MEMBERS ARE AS FOLLOWS: 1. ONE REPRESENTATIVE FROM THE DEPARTMENT OF PUBLIC WORKSAND HIGHWAYS; 2. ONE REPRESENTATIVE FROM THE SECURITIES AND EXCHANGE COMMISSION; 3. ONE REPRESENTATIVE FROM THE DEPARTMENT OF BUDGET AND MANAGEMENT; AND 4. ONE REPRESENTATIVE FROM THE ACADEME. XXX
SEC. 2. Section 3 of Republic Act No. 4566 is hereby amended to read as
follows: "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.] AT THE TIME OF HIS APPOINTMENT: 1. BE A NATURAL BORN CITIZEN AND RESIDENT OF THE PHILIPPINES FOR AT LEAST TEN (10) YEARS; 2. BE AT LEAST THIRTY-FIVE (35) YEARS OF AGE AND OF GOOD MORAL CHARACTER; 3. NOT BE AN OWNER, OFFICER, OR A STOCKHOLDER OF A CONSTRUCTION COMPANY ENGAGED IN THE BUSINESS OR TRANSACTION WITH THE GOVERNMENT. WHEN A CONFLICT OF INTEREST ARISES, THE MEMBER SHALL DIVEST HIS/HER POSITION,
SHAREHOLDINGS, INTEREST, CONTROL, OR OWNERSHIP IN THE CONSTRUCTION COMPANY INVOLVED WITHIN THIRTY (30) DAYS UPON ASSUMPTION OF OFFICE."
SEC. 3. Section 4 of Republic Act No. 4566 is hereby amended to read as
follows: "Section 4. Term of office. The Chairman and members of the Board shall hold office for a term of three (3) years WITHOUT REAPPOINTMENT. 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."
SEC. 4. Section 5 of Republic Act No. 4566 is hereby amended to read as
follows: "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] MOTU PROPIO OR UPON VERIFIED COMPLAINT 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."
SEC. 5. Section 30 of Republic Act No. 4566 is hereby amended to read as
follows: "Section 30. Prescription. All accusations or charges against [licensees] ANY INDIVIDUAL FOR VIOLATIONS OF THIS ACT shall [be filed] PRESCRIBE within one year TEN (10) YEARS [after the] FROM THE DISCOVER OF THE act or omission [alleged as the ground therefore, except that with respect to an accusation alleging a violation of subsection (c) of section twenty eight the accusation maybe filed with in two years after the discovery] by the Board [of the alleged facts constituting the fraud or misrepresentation]."
SEC. 6. Section 31 of Republic Act No. 4566 is hereby amended to read as
follows:
Section 31. Restoration or renewal of licenses. After suspension of
the license upon any of the grounds set forth in this Act, the Board may lift such suspension upon proof of compliance by the contractor with the requirements and conditions set forth by the Board. After revocation of a license upon any of the grounds set forth in this Act, it shall be renewed or reissued within a period of one year after the final decision of revocation upon proper showing OF DEMONSTRABLE FINANCIAL AND OPERATING CAPACITY TO LAWFULLY AND COMPETENTLY ENGAGE IN THE CONTRACTING BUSINESS AND that all losses caused by the act or omission for which the license was revoked have been fully satisfied and that all conditions imposed by the decision of revocation have been complied with."
SEC. 7. Separability Clause. - Should any provision or part of this Act be
2 declared unconstitutional or invalid, the other provisions and parts hereof, insofar as 3 they are separable from the invalid ones, shall remain in full force and effect.
SEC. 8. Repealing Clause. - All laws, decrees, orders, proclamations, rules and
regulations, or parts thereof, which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.
SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,