MANILA, Philippines — The House committee on trade and industry on Tuesday approved a bill that seeks to “rectify existing infirmities” in the Contractors’ License Law.
In an online hearing, the panel approved House Bill No. 1911, which would amend Sections 38, 39, and 40 of Republic Act No. 4566 or the Contractors’ License Law. The measure was filed by Deputy Speaker Aurelio Gonzales Jr.
Aurelio said that under R.A. 4566, “no contractor shall engage in the business of contracting without first having secured a Philippine Contractors Accreditation Board (PCAB) license to conduct business.”
“The purpose of R.A. No. 4566 is to ensure that only qualified and reliable contractors are allowed to undertake construction in the country,” Gonzales said.
“The law also aims to promote, for the benefit of the public and private sectors and for the national interest, the orderly growth of the contracting sector and the upgrading of construction capability,” the lawmaker added.
However, Gonzales believes that R.A. 4566 have deficiencies that need to be corrected.
Gonzales proposes that violators of Section 38 of the law, which deals with joint license, shall be fined not less than P50,000 if the cost of the project is not more than P500 million and a fine of not less than P500,000 shall be imposed if the cost of the project is more than P500 million.
Section 38 states that it is unlawful for any two or more licensees, each of whom has been issued a license to engage separately in the capacity of a contractor, to jointly submit a bid or otherwise act in the capacity of a contractor without first having secured an additional license for acting in the capacity of such a joint venture or combination.
Gonzales likewise proposes higher fees for licensing, registration of the application, and renewal taking several matters into consideration such as inflation and rising operational costs and expenses for PCAB, among others.
The lawmaker said existing fees have not been amended since the law’s enactment back in 1965.
The adjusted fees, based on Gonzales’ proposal, is P5,000 for an original license, P6,000 for an examination of an applicant, and P5,000 for annual renewal.
Lastly, Gonzales proposes that a license be valid for one year from its issuance, and may be renewed by filing an application for renewal at least one month before its expiry date.