Under Republic Act No. 4566, as amended, otherwise known as the Contractor’s License Law, contractors, including sub-contractor and specialty contractors engaging in the business of contracting must first secure a license to conduct business under the Philippines Contractor Accreditation Board (PCAB). It is done so for public safety—that only qualified and reliable contractors are allowed to undertake construction in the country.
There are two types of contractor’s license. A regular license is issued to a domestic construction firm, either under a sole proprietorship, a partnership, or a corporation. Meanwhile, a special license is granted to a joint venture, a consortium, a foreign contractor, or a project owner who authorizes the licensee to engage only in the construction of a single, specific project or undertaking.
The following documents are required in applying for a contractor’s license:
- Duly accomplished application form for a new permit (Sole Proprietorship and Corporation/Partnership);
- Integrity Pledge;
- Latest audit financial statement, not more than six months old, signed by a Certified Public Accountant (CPA) accredited by the Board of Accountancy;
- Bank certification, as proof of cash as of financial statement date;
- Certified copy of Transfer Certificate of Title (TCT), tax declaration of land and building assets;
- Certified copy of deeds of sale, official receipts of transportation and construction equipment, and other assets;
- Certified copies of valid PRC IDs of technical personnel;
- Personal appearance of technical staff before the PCAB or the Regional or Provincial Offices of the Department of Trade and Industry (DTI);
- Completion of 40-hour Safety Seminar–Basic Occupational Safety and Health (BOSH) for Construction Site Safety Officer of Construction Safety and Health (COSH);
- Completion of a two-day Authorized Managing Officer (AMO) Seminar;
- Passed the AMO written examination;
- Membership with SSS, PhilHealth, and Pag-Ibig;
- E-mail address;
- Original signature of the AMO on every page of the application forms, including supporting documents;
- Self-stamped envelopes for verification of supporting documents; and
- Proof of payment of Prepaid Courier Pouch for mailing of license certificate (optional).
The applicant must submit the accomplished application form, together with the supporting documents and pay the corresponding upfront fees to the Construction Industry Authority of the Philippines (CIAP) offices located at the DTI regional and provincial offices.
The evaluation of the application and the eventual issuance of a license will take about 30 business days.
For more information, visit the CIAP website at www.ciap.dti.gov.ph.