Senate approves proposed changes to contractors’ license law

Facade of the Senate building in Pasay City. (Philippine Daily Inquirer file photo)

MANILA, Philippines — The Senate on Monday passed on third and final reading a bill that aims to amend the country’s contractors’ license law and impose stiffer penalties of up to P1 million, increase fees, and modify the renewal process.

With 20 affirmative votes, no negative votes and abstentions, senators approved Senate Bill No. 2247, which seeks to modify Republic Act No. 4566 or the Contractors’ License Law.

The measure’s proposed new Section 35  wants a stiffer penalty, specifically that any contractor who undertakes construction work without first securing a license to engage in the business of contracting may now face a minimum penalty of P100,000 to a maximum penalty of P500,000.

The new provision also prohibits the offending party from obtaining a contractor’s license for a period of one year.

Meanwhile, parties who will provide false evidence or proof to obtain a license would be slapped with a minimum fine of P500,000 to a maximum of P1,000,000, as well as prison term for a minimum of one year to a maximum of six years.

Further, the bill increases the fees prescribed by the law from P50 to P5,000 for an original license; from P60 to P6,000 for the examination of an applicant; and from P50 to P5,000 for an annual license.

It also states that the issued license will be valid for one year and sets the license renewal fee to P5,000.

The measure, sponsored by Senator Aquilino Pimentel III on the floor, is authored by Senators Sherwin Gatchalian, Ramon “Bong” Revilla Jr., and Lito Lapid.

KGA