A.

TYPES OF CONTRACTOR’S LICENSES

The Philippine Contractor’s Accreditation Board (“PCAB” or “Board”)1 is authorized to issue two types of
licenses to contractors: a regular license or a special license. A regular license authorizes the licensee to
engage in construction contracting within the field and scope of his license classification for as long as the
license validity is maintained through annual renewal. 2 A special license, on the other hand, authorizes the
licensee to engage only in the construction of a single specific undertaking/project. 3

The license shall authorize the licensee to engage in construction contracting in the Philippines subject to
license type and classification restrictions. Each licensee, even on of multiple classifications, shall be issued
only 1 license.4

ISCOM PHILIPPINES ROOFING CONSTRUCTION is qualified to apply for a Special License.

B. QUALIFICATIONS FOR A REGULAR LICENSE

The following qualify for a Regular License:

1) Filipino sole proprietorships, or partnerships or corporations with at least 60% Filipino equity
participation and duly organized and existing under and by virtue of the laws of the Philippines.

2) A foreign contractor with more than 40% foreign equity5, provided that it:
a) has a capitalization or net worth of at least P1 Billion;
b) is registered with the SEC as a domestic company with foreign equity exceeding 40%;
c) foreign equity should be in the form of either 100% cash or 50% cash and 50% assets and
cash should be registered with the BSP;
d) only engages in private domestic construction projects with contract cost of at least P1
Billion;
e) procures a global insurance or surety bond to cover the required structure warranty for a
period of 15 years as provided in Article 1723 of Civil Code;
f) shows proof it is compliant with the relevant Philippine laws including but not limited to tax,
immigration and labor laws.

As an exception to the P1 Billion investment, a foreign contractor may be granted a Special License
to engage in the construction of a single specific undertaking/project with a project cost of at least
P1 Billion where there is limited local capability in technology as determined by the Board. 6

C. QUALIFICATIONS FOR A SPECIAL LICENSE

The following can qualify for the Special License:

1) A joint venture7, consortium8 or any such similar association organized for a specific
undertaking/project;
2) A foreign firm legally allowed by the proper Philippine government authority to undertake
construction activities in the Philippines;

1
Republic Act (“RA”) 4566 otherwise known as the “Contractors’ License Law”
2
New Policies and Regulations Implementing RA 4566, DTI Memorandum, [1989], Section 3.1(a)
3
Ibid., Section 3.1(b)
4
Note 2, Section 3.4
5
DTI Board Resolution No. 333 series of 2013
6
Ibid.
7
“Joint Venture” means a cooperative arrangement of licensed constructors to jointly perform a single specific undertaking/project
with each of the partners contributing to the performance. [Note 2, Sec. 1.1 (h)]
8
A “consortium” means a cooperative arrangement between licensed constructor(s) and non-constructor(s) to jointly perform a
single specific undertaking/project with the licensed constructor(s) as managing and operating partner(s) and the others as financier(s)
or any such other construction supportive role. [Note 2, Sec. 1.1 (h)]
 3) A project owner undertaking by himself, sans the service of a constructor, the construction of a
project intended for sale, lease, commercial/industrial use or any other income generating purpose.

In case the licensee is a foreign firm, the license authorization shall be further subject to conditions as may
have been imposed by the proper Philippine government authority in the grant of the privilege for him to so
engage in construction contracting in the Philippines.

In general, there is no foreign ownership limitation on applicants for a special license. However, the 10th
Regular Foreign Investment Negative List (Executive Order No. 184, 29 May 2015) imposes a 25% foreign
equity limitation on the following undertakings/projects:

1) Contracts for the construction and repair of locally-funded public works (Sec. 1 of Commonwealth
Act No. 541, Letter of Instruction No. 630), except infrastructure/development projects covered in
RA 7718 and projects which are foreign funded or assisted and required to undergo international
competitive bidding (Sec. 2(a) of RA 7718) 9; and
2) Contracts for the construction of defense-related structures (Sec. 1, CA 541).

Annual renewal shall be required for as long as the undertaking/project is in progress, but shall be restricted
to only as many times as necessary for completion of the same. A Special License shall be cancelled by
the Board upon completion of the single undertaking/project authorized by the license and to which it is,
therefore, restricted, even though before expiry of the fiscal year.

D. TERMS AND CONDITIONS OF THE LICENSE10

1) It is non-transferable.
2) It is valid during the contracting fiscal year (July 1 to June 30) for which it was issued provided it
has not been suspended, cancelled or revoked by the Board.
3) It is to be renewed annually on or before the expiration of its validity.
4) The licensee must not submit any bid, or enter into any construction contract after the license has
expired and before the same is renewed otherwise the constructor shall be deemed to be operating
without a contractor's license and shall be liable to appropriate disciplinary action and payment of
additional license fee.
5) The licensee must not undertake/implement any construction project which is not within the scope
of his license classification otherwise he shall be liable to appropriate disciplinary action and
payment of additional licensing fee.
6) The licensee's qualification is subject to review at any time to ascertain the constructor's eligibility
to the present classification and category of his license.
7) License category may be upgraded and other classification(s) may be added to the license upon
formal application by the licensee together with all the necessary supporting documents.
8) The licensee must notify the Board in writing of resignation or disassociation of any of its Sustaining
Technical Employee and must replace the said employee within a period of ninety days from the
date of resignation or disassociation.
9) The licensee must submit to the Board monitoring reports that may be required from time to time.
10) The licensee must observe and abide by the provisions of RA 4566, as amended by Presidential
Decree No. 1746, its implementing Rules and Regulations, and other orders or instructions which
the Board may issue from time to time pursuant to its power and authority under the Law.
11) The licensee must at all times observe and adhere to the letters and spirit of the code of ethics for
constructors.
12) Any misrepresentation or false information submitted to the Board shall subject the licensee to
administrative disciplinary action without prejudice to the imposition of penal sanctions provided by
law.

9
Amended BOT Law: Project proponents may obtain financing from foreign and/or domestic sources and/or engage the services of
a foreign and/or Filipino contractor: Provided, That in case an infrastructure or a development facility's operation requires a public
utility franchise, the facility operator must be Filipino or if a corporation, it must be duly registered with the Securities and
Exchange Commission and owned up to at least sixty percent (60%) by Filipinos.
10
Note 2, Section 3.3
 13) A licensee who is retiring from the construction business must advise the Board in writing and must
immediately surrender the license to the Board for cancellation.

E. MINIMUM REQUIREMENTS FOR A LICENSE11

To be eligible as a candidate for licensing, an applicant shall have the following minimum qualifications:

1) He must, by virtue of his Sustaining Technical Employee, have at least two (2) years of construction
implementation experience, and knowledge of Philippine construction-building codes and
ordinances, labor safety codes and other laws applicable to construction operation, subject to the
nomination requirement as provided for under Section 4.2;
2) He must, by virtue of his Authorized Managing Officer, have at least two (2) years of experience in
construction contracting, business management and contract administration, and knowledge of
Philippine laws on contracts, liens, taxation, labor and other construction business matters, subject
to the nomination requirement as provided for under Section 4.3;
3) He must have a stockholders'/owner's equity or networth of at least the amount required to qualify
for the lowest constructor category; and
4) If a partnership or corporation, the applicant firm shall have, in its Articles of
Partnership/Incorporation, construction as a primary purpose, or as a division or department
separate and distinguishable from the overall organization of the firm.

The foregoing notwithstanding, the eligibility of an applicant shall be further contingent upon his non-
possession of any of the disqualifications for or impediments to licensing as stipulated in Sec. 11.1.

F. SUSTAINING TECHINICAL EMPLOYEE (“STE”)12

A STE shall be nominated by the constructor from among his technical personnel and whose training and
experience shall be considered by the Board in determining the appropriate contracting classification(s)
and/or category of the constructor.

To fully qualify for the said nomination, the STE, in addition to the requirements stated in the previous
section on Minimum Requirements for a License, must:

1) Be a technology professional licensed by the Professional Regulation Commission and of academic

discipline relevant to the classification of his intended assignment; provided that, in lieu thereof:

a) A licensed technology professional of any other academic discipline but who has been
employed, in a managerial/supervisory capacity, by a constructor in construction of a
classification for at least four (4) years immediately prior to his nomination, may be deemed
eligible by the Board for nomination to the classification by the constructor; and
b) For trade category with Specialty Classification, an individual with two years construction
implementation experience in the specialty classification to which he is being nominated
shall suffice.

2) Be a full-time employee of the nominating constructor, not associated professionally or

employment-wise with any other party, particularly one engaged in construction or construction-
related activities; except a party affiliated with the nominating constructor or with whom such
association is deemed by the Board to be not undesirable nor incompatible with his role as a STE;
and

3) Have none of the following disqualifications:

a) Involvement in any construction malperformance of grave consequence, in any capacity

11
Ibid., Section 4.1
12
Ibid., Section 4.2
 and deemed by the Board to be suggestive of his negligence, incompetence and/or
malpractice;
b) Involvement in any act or omission liable for disciplinary action as stipulated in Sec. 11.2
of the IRR of RA 4566,13 by himself or in collaboration with any other person or firm and of
which he or the other person or firm was found guilty by the Board;
c) Conviction by a court of competent jurisdiction of any offense involving moral turpitude;
and
d) If a former STE or AMO disassociated with his constructor-employer, failure to notify the
Board of the disassociation in accordance with the provisions of Sec. 10.5 14 and Sec. 10.615
of IRR of RA 4566.

A constructor may have more than one STE to qualify for licensing in more than one classification. He may
also have more than one STE in any classification in which he is licensed. Only one STE is necessary to
sustain a constructor's eligibility for a classification. A technology professional of academic multi-discipline
may even be approved by the Board to sustain a constructor's eligibility for more than one classification. In
categorization, however, every addition of a STE of the required experience in a classification accrues to
the improvement of a constructor's credit rating in that classification in the categorization criterion of
Experience of Technical Personnel.

A STE who meets the qualifications, may be appointed by a constructor and approved by the Board to hold
a position of AMO concurrently. Any officer of a partnership/corporation may be a STE.

13
SECTION 11.2. Causes for Disciplinary Action. — Any of the following acts or omissions by a constructor shall constitute a cause
for disciplinary action against him: a) Malpractices: aa) Willful and deliberate abandonment without lawful and/or just excuse of any
construction project or operation engaged in or undertaken by him as a constructor; ab) 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; ac) Willful material misrepresentation and/or use of spurious documents in the pursuit of his
business; ad) Doing of any willful or fraudulent act as a consequence of which another is injured or damaged; b) Infractions of the
Law: ba) Failure to comply with the provisions of the Law, defined in Sec. 1.1 (a) hereof, and these rules and regulations, including
but not limited to: i) Operating in a classification not authorized by his license; ii) Engaging in construction contracting with an expired
or lapsed license; iii) Retiring from business without advising the Board and surrendering his license, resulting in the illegal use of his
license by another with or without his know ledge; bb) Aiding or abetting an unlicensed person to evade the provisions of the Law and
these rules and regulations, or knowingly combining or conspiring with, or allowing his license to be used by, or acting as an agent or
partner or associate or otherwise of an unlicensed person with the intent to evade the provisions of the Law and these rules and
regulations; c) Willful misrepresentation of a material and substantial fact in obtaining his license and in any other application or
representation with the Board; d) Conviction by a court of competent jurisdiction of any offense involving moral turpitude or the
commission of which would, in the opinion of the Board, render him unfit to be the holder of the license; and e) Active participation in
the performance by any person or firm of any act or omission constituting a cause for disciplinary action under the Law.
14
SECTION 10.5. Disassociation of a Sustaining Technical Employee. — Disassociation of a Sustaining Technical Employee, by
employment termination, death or any other cause, shall be reported in writing to the Board by the employer- constructor, within thirty
(30) days from date of disassociation. A constructor so affected, shall be entitled to a time period for replacing the disassociated
employee, subject to the following provisions: a) A constructor complying with the above stipulated reporting requirement, shall be
allowed a replacement period of ninety (90) days from date of disassociation to nominate a replacement for approval by the Board.
Within this period, he shall be allowed repeated nominations, as long as no nominee has yet been approved by the Board. B) A
constructor failing to so comply, shall be entitled to a grace period of thirty (30) days from date of disassociation, within which a
replacement employee shall be deemed as a replacement nominee for approval by the Board, sans nomination by the constructor.
During the replacement or grace period, the constructor's current license shall remain in force. It shall also be the duty of a
disassociated Sustaining Technical Employee to give written notice to the Board of his disassociation, unless in case of death, within
thirty (30) days from date of disassociation. Failure to so notify shall be an impediment to his eligibility as a Sustaining Technical
Employee, an Authorized Managing Officer, or a license applicant in any future transaction with the Board.
15
SECTION 10.6. Change of an Authorized Managing Officer. — Change of an Authorized Managing Officer shall be subject to prior
approval by the Board. Any act by a constructor's representative not previously approved as the Authorized Managing Officer by the
Board, for and in behalf of the constructor in any transaction with the Board, shall be deemed not valid. The constructor shall bear
whatever may be the consequence of such invalidity. In case of disassociation of an Authorized Managing Officer and the affected
constructor is unable to immediately appoint a replacement to effect a change, the constructor shall give written notice to the Board
to this effect. Upon such notice, he shall be allowed to designate an Officer-in-Charge, for acknowledgement by the Board, to act in
the capacity of an Authorized Managing Officer, pending final appointment of a replacement therefor. The final appointment of a
replacement Authorized Managing Officer, for approval by the Board, shall be made within ninety (90) days from date of disassociation.
It shall also be the duty of a disassociated Authorized Managing Officer to give written notice to the Board of his disassociation, unless
in case of death, within thirty (30) days from date of disassociation. Failure to so notify shall be an impediment to his eligibility as an
Authorized Managing Officer, a Sustaining Technical Employee, or a license applicant in any future transaction with the Board.
EIASDT
 G. AUTHORIZED MANAGING OFFICER (“AMO”)16

An AMO shall be nominated by the constructor to be its authorized sole management representative to
act on all matters concerning the requirements of the Board.
To qualify for the said nomination, the AMO, in addition to the requirements stated in the previous section
on Minimum Requirements for a License, must:

1) Be a senior executive of the nominating constructor firm, empowered to render general

management and administrative decisions;
2) Have none of the disqualifications applicable to a STE;
3) A constructor shall have only one AMO whose appointment shall be evidenced by a resolution of
the firm's board of directors.

An AMO who meets the qualifications for an STE may be nominated by a constructor and be approved by
the Board to hold the position of a STE concurrently.

H. SPECIAL LICENSE APPLICATION DOCUMENTS17

An application for a Special License by a foreign constructor shall comprise of the following:

A LEGAL
1 Duly accomplished and notarized application for Special License by Foreign Contractor
(PCAB Form 701)
2 General Information Sheet (PCAB Form 702)
3 SEC (Securities and Exchange Commission) Certificate of Registration, Articles of
Incorporation or Partnership, showing construction as one of the primary purposes of the
corporation, and By-Laws and subsequent amendments thereto
4 Board Resolution authorizing its Authorizing Managing Officer (AMO)/Resident Alien
Representative (RAR) in the Philippines to act for and in behalf of the company, and
defining the scope and/or limitations of the powers of the AMO/RAR
4.1 Copy of appointment paper/contract of employment of RAR/AMO to current position in the
firm authenticated by the Philippine Embassy in the home country of the RAR/AMO
5 Original National Bureau of Investigation (NBI) Clearance for newly nominated Filipino
AMO and for RAR who resided in the country for 6 months and longer; or certified true
copy of Police Clearance of RAR/AMO from the country of origin duly authenticated by the
Philippine Embassy in the home country of the RAR/AMO
6 Affidavit of Undertaking of the RAR/AMO (PCAB Form 703)
7 Alien Certificate of Registration and current working visa of the RAR/AMO
8 Authenticated diploma and/or transcript of records as well as Professional Regulation
Commission (PRC) ID/certificate of registration or equivalent (for new RAR/AMO
professional)
9 Board Resolution appointing and authorizing the Filipino Resident Agent to accept
summons and other legal processes in behalf of the foreign contractor applicant, and
authorizing PCAB, in the absence of the Filipino Resident Agent, or where such agent
cannot be found at his address of record, or upon cessation of business of the foreign
contractor in the Philippines, to accept summons or legal processes as if the same were
made upon the firm at its home office
10 Original or certified true copy of valid Contractor’s License/Permit/Authority issued by the
appropriate government agency duly authenticated by the Philippine Embassy in the home
country of the foreign contractor applicant

16
Ibid., Section 4.3
17
Ibid., Section 4.6
 11 Certification from the appropriate Tendering Agency that the project is foreign
financed/internationally funded and that international bidding is required, or the
participation of foreign contractors is allowed under the terms of the Bilateral Agreement
entered into by and between the Philippine Government and the Foreign/International
Financing Institution; or Certification that the project is to be implemented in accordance
with the Expanded BOT Law or RA 7718, or other laws of similar nature, and that other
requirements, under existing laws, have been waived in the loan agreement, if any (PCAB
Form 704)
12 Original or certified true copy of “Invitation to Bid” or “Invitation to Bidders” or “Notice to
Bidders” or original ad/clipping of the project applied for showing the date of bidding
13 Back-to-back guarantee from the parent company if the applicant is a subsidiary of a
foreign contractor
14 Self-addressed & self-stamped letter form/notice. (PCAB Response Form)
B FINANCIAL
15 Financial Statements (duly audited and signed on every page by a PRC-BOA accredited
external auditor) as of the end of the taxable year immediately preceding the filing of
application duly filed with the BIR and a diskette/CD (compact disc) containing the firm’s
Audited Balance Sheet & Income Statement in the prescribed template (PCAB Financial
Statement Forms A & B downloadable from the DTI website at www.dti.gov.ph together with
pertinent application forms)
15.1 Documents in support of new acquisitions
15.1.1 If increase is due to additional capital infusion
Cash: i) Original copy of Bank Certification/Bank statement of account certified by Bank
Manager of cash deposits as of the Balance Sheet date [Note: Amount in excess of ½ of
1% of the minimum networth required for category applied for or P 50,000.00, whichever is
higher, reflected as “Cash” or “Cash on Hand” will be deducted from the networth, if
unsupported.]
ii) Authorization to Depository Bank (PCAB Form 703a)
Land and Building: i) List of Land and Building/s owned by the company and registered in
its name (PCAB Form 704a);
ii) Certified true copy of TCT including back page for newly acquired land and/or
condominium which were not previously reported/submitted to PCAB
Transportation & Construction Equipment - List of Construction and/or Transportation /
Delivery Vehicles/Equipment/Machineries/Plants owned by the company and registered
in its name (PCAB Form 704b);
ii) Certified true copy by the LTO of the LTO Certificate of Registration and current Official
Receipt of Registration of newly acquired registrable Construction and/or Transportation/
Delivery Vehicles/Equipment
iii) Certified true copy of Deed of Sale or sales invoices/official receipts for newly acquired
non-registrable construction equipment/machineries/plants, or newly acquired
construction equipment
Additional documents to be submitted only if the values of each of the applicant's
Inventories and Receivables Accounts exceed more than 20% of the contractor’s
Networth, otherwise, the amount in excess of said account shall be deducted from
networth.
i) Schedule of Receivables (PCAB Form 709)
ii) Schedule of Inventories (PCAB Form 709)
15.1.2 If increase is due to appraisal of properties:
i) Independent Appraisers Report
C TECHNICAL
16 List of STEs (PCAB Form 708) supported by the following documents for each STE:
16.1 Nominated STE affidavit/s (PCAB Form 709) with passport size picture/s of the nominated
STE/s
16.2 Certified true copy of valid PRC ID of STE as licensed professional or original Certification
of Good Standing for those awaiting issuance of new or renewed PRC ID
 16.3 Original NBI Clearance/s of STE/s
16.4 Special PRC Permit, Alien Certificate of Registration and current working visa for foreign
STE, if any
16.5 STE Affidavit/s of Construction Experience (PCAB Form 710)
16.6 Personal Appearance Form duly accomplished and signed by the STE/s appearing before
the designated officer of the PCAB or the nearest DTI regional/provincial office (PCAB
Form 711)
D TRACK RECORD
17 Copy of single largest relevant construction contract or subcontract agreement completed
and/or Change Order/ Supplemental Agreement, if any, certified true by the Project Owner
or Prime Contractor for sub-contract work. If project was undertaken outside of the
Philippines, the aforesaid documents must be duly authenticated by the Philippine
Embassy or Consulate Office in the country where project is located
18 Copy of Certificate of Completion/Acceptance certified true by the Project Owner or Prime
Contractor for sub-contract work. If project was undertaken outside the Philippines, the
aforesaid documents must be duly authenticated by the Philippine Embassy or Consulate
office in the country where project is located
19 For privately owned projects only: Certified True Copy of Certificate of Creditable Income
Tax Withheld (Form 1743.1/ 1743.750/2307) stamped received by the BIR for each
contract/subcontract.
E Others: PCAB Response Form (self-addressed and with sufficient stamps affixed)

The RAR/AMO must sign each and every page of the application forms and supporting documents. For
NEW RAR/AMO: Personal Appearance/Interview by the Board at 5th Floor, Executive Building Center, 369
Sen. Gil Puyat Ave., cor. Makati Ave., Makati City. Failure to appear on scheduled date may be deemed as
abandonment of application resulting in disapproval.

I. APPLICATION FILING18 AND PROCESSING19

License application shall be filed with the Secretariat of the Board. An application which is complete with
respect to prescribed documentary requirements, shall be received by the Secretariat and considered filed
as of the date of such receipt.

The processing of license applications shall be made on a monthly batch basis. The Board shall either
approve or disapprove each application subject to subsequent approval of the Authority. The Board's
decision shall be communicated in writing to each applicant within ten (10) days from the date of such
decision and, accordingly, the license certificates shall be prepared for and issued to those whose
applications were duly approved.

Any applicant who was not satisfied with the Board's decision on its application may file a written request
for reconsideration and to present appropriate documents to the Board in support of such request within
thirty (30) days from receipt of notice thereof. Failure to do so shall be a ground for the Board not to entertain
such request if filed beyond the prescribed thirty (30) day period.

J. CONTRACTING CLASSIFICATIONS AND SUBCLASSIFICATIONS20

A licensed constructor shall operate within the classification(s) that he is authorized, by his license, to
engage in. The 3 main classifications and their sub-classifications are:

a) General Engineering Contractor

i) Road, highway, pavement and bridge
ii) Irrigation and flood control

18
Ibid., Section 4.4
19
Ibid., Section 4.7
20
[New Policies and Regulations Implementing RA 4566, DTI Memorandum, [1989], Sec. 1.1 (h)]
 iii) Dam, reservoir and tunneling
iv) Port, harbor and offshore engineering

b) General Building Construction

i) Building and industrial plant
ii) Sewarage and sewage treatment/disposal plant and system
iii) Water treatment plant and system
iv) Park, playground and recreational work

c) Specialty Construction
i) Foundation work
ii) Structural Steel work
iii) Concrete pre-casting and pre-stressing
iv) Plumbing and sanitary
v) Electrical
vi) Mechanical
vii) Ventilation-refrigeration
viii) Elevator-conveyor
ix) Fire Protection
x) Waterproofing
xi) Painting

The classification (or sub-classification) of a constructor shall be determined by the training and experience
of the constructor or of his STE. To qualify for a classification (or sub-classification), said training and
experience shall be of the nature and level required for the classification (or sub-classification), same as
required for eligibility of a STE. The Board, however, may prescribe any additional requirement whenever
deemed necessary.

A license applicant may apply for and be issued more than one classification (or sub-classification);
provided that one of which shall be designated by the applicant as his Principal classification. The rest shall
be considered as other classification(s). The category of a multi-classification constructor shall be evaluated
with respect to his Principal classification and shall be recognized as such.

K. CATEGORIES21

Every constructor shall be graded and assigned a category. General Engineering and General Building
constructors shall be categorized in a scale of six, namely: AAA, AA, A, B, C, and D. Specialty constructors
shall be categorized in a scale of seven, namely: AAA, AA, A, B, C, D and Trade.

L. CATEGORIZATION CRITERIA22

Evaluation of category shall be based on the following criteria quantified by equivalent credit points in scales
as determined by the Board:

1) Financial Capacity

Financial capacity shall be in terms of Networth based on the latest AFS submitted to the Bureau of Internal
Revenue, or paid-up capital based on the latest AFS submitted to the Securities and Exchange
Commission, if a newly-organized partnership or corporation.

2) Equipment Capacity

Equipment capacity shall be in term of book value as reflected in the constructor's latest AFS submitted to

21
Ibid., Section 5.6
22
Ibid., Section 5.7
the Bureau of Internal Revenue or to the Securities and Exchange Commission, whichever is applicable,
of equipment owned which are in operational condition and applicable to construction of the classification
in which the constructor is to be categorized. Said owned equipment shall include units under installment
payment and/or under lease purchase. ASTDCH

3) Experience of Firm
Experience

Experience of firm shall be in terms of:

a) Aggregate number of years in which the constructor firm, under the same business identity,
has been actively engaged in construction contracting and operation; and
b) Average annual value of work completed by the firm during the past three (3) years or, if a
constructor's license is less than three (3) years, since being licensed, based on audited
financial statements submitted to the Bureau of Internal Revenue.

4) Experience of Technical Personnel

Experience of technical personnel shall be the sum total of individual experience of each of the STE
nominated to the classification in which the constructor is to be categorized. Said individual experience of
a STE shall be as defined and qualified below:

a) The experience shall be in term of aggregate number of years in which the STE, in his present
employment as well as previous, has been involved in construction of the classification in
which the constructor is to be categorized.
b) It shall include only the years in which he was performing in managerial/supervisory capacity
bearing on construction operation and/or contract implementation.
c) It shall be subject to a creditable ceiling of twenty (20) years, over which no excess shall be
recognized, and to a creditable floor set by the Board for each constructor category.

M. CATEGORY IDENTIFICATION

Evaluation of a constructor's category shall consist of rating his various qualifications by credit points. The
constructor's category shall be the one sustainable by each of the following three (3) category determinants:

1) Minimum credit points in the criterion of Financial Capacity.

2) Minimum credit points in the criterion of Experience of Technical Personnel.
3) Aggregate credit points in all criteria

Constructors aspiring for a particular category must satisfy all the minimum credit points required under the
three category determinants mentioned above which correspond to the desired category. Otherwise, the
constructor shall be considered for the any lower category as could be fully sustained by his present
qualifications. Each constructor shall be given only one category. A multi-classification constructor shall be
given the category corresponding to his Principal Classification.

See table below for the minimum qualification requirements for each classification, sub-classification and
category.

CATEGORIZATION – CLASSIFICATION TABLE

C MINIMUM QUALIFICATION REQUIREMENTS
A (2) (3)
CLASSIFICATION (1)
T STE Min. Construction Overall
Financial Capacity
E Exp. Requirement Credit
 G Credit Points
O Min. Required
Stockholder’s Points Indivi Aggre-
R C.P.
Equity (C.P.) -dual gate
Y Req’d.
Req’d.
AAA P90,000,000.00 900.00 10 60 300 1,950.00
A. GENERAL ENGINEERING
AA 45,000,000.00 450.00 10 50 250 915.15
GE-1 (Road, Highways, Pavement,
Railways, Airport Horizontal A 9,000,000.00 90.00 7 21 105 265.00
Structure, and Bridges)
B 4,500,000.00 45.00 5 10 50 122.50
GE-2 (Irrigation or Flood Control) C 3,000,000.00 30.00 3 3 15 75.50

GE-3 (Dam, Reservoir or

Tunneling)

GE-4 (Water Supply) D 900,000.00 9.00 3 3 15 24.00

GE-5 (Port, Harbor or Offshore

Engineering)
AAA P90,000,000.00 900.00 10 60 300 1,910.00
B. GENERAL BUILDING
AA 45,000,000.00 450.00 10 50 250 895.00
GB-1 (Building or Industrial Plant)
A 9,000,000.00 90.00 7 21 105 261.00
GB-2 (Sewerage or Sewage
B 4,500,000.00 45.00 5 10 50 120.50
System)
C 3,000,000.00 30.00 3 3 15 66.50
GB-3 (Water Treatment Plant &
System)
D 900,000.00 9.00 3 3 15 24.00
GB-4 (Park, Playground or
Recreational Work)

C. SPECIALTY
AAA P90,000,000.00 900.00 10 60 300 1,510.00
SP-FW (Foundation Work)

SP-SS (Structural Steel Work)

AA 45,000,000.00 450.00 10 50 250 695.00
SP-CC (Concrete Pre-casting, Pre-
Stressing or Post-tensioning)

SP-PS (Plumbing & Sanitary Work) A 9,000,000.00 90.00 7 21 105 211.00

SP-EE (Electrical Work)

SP-ME (Mechanical Work) B 4,500,000.00 45.00 5 10 50 110.50

SP-AC (Air-conditioning or
Refrigeration)
C 3,000,000.00 30.00 3 3 15 60.50
SP-ES (Elevator or Escalator)
SP-FP (Fire Protection Work)

SP-WP (Waterproofing Work)

SP-PN (Painting Work)

SP-WD (Well-Drilling Work)

SP-CF (Communication Facilities)

D 900,000.00 9.00 3 3 15 24.00
SP-MS (Metal Roofing & Siding
Installation)

SP-SD (Structural Demolition)

SP-LS (Landscaping)

SP-EM (Electro Mechanical Work)

SP-NF (Navigational Facilities)

TRAD
D. SP-TRADE 45,000.00 0.40 none none none 0.45
E
* Minimum Qualification Requirements for Principal Classification
** For Other Classification/s, Minimum of 3 Years Actual Construction Experience
*** Overall credit points inclusive of Equipment Capacity (1 point/P100Th); Experience of Firm (10 points/year of active
existence); &
1 point/P100Th of 3 year Average Annual Volume of Work Accomplished; and COMTCP points if STEs are
COMTCP certified

CIRCULAR NO. 001, SERIES OF 2009

Second Stage of Adjustment on Allowable Ranges of Contract Costs (ARCC) and
Single Largest Project (SLP) Completed / Track Record Requirements
License
Size Range SLP ARCC
Category
Large B AAA Above Php 150 Million < or above Php 300 Million
Above Php 100 Million up to Php 150
Large A AA Up to Php 300 Million
Million
Above Php 50 Million up to Php 100
Medium B A Up to Php 200 Million
Million
Above Php 10 Million up to Php 50
Medium A B Up to Php 100 Million
Million
Small B C&D < Php 10 Million Up to Php 15 Million
Small A Trade < Php 500 Thousand Up to Php 500 Thousand
Note: Par. 3 of Sec. 23.11.2 of the IRR of RA 9184 allows Small A and Small B contractors without similar experience
to bid only for contracts not more than fifty percent (50%) of the allowable range of contract cost of their
respective size range(s).

Contractors who satisfy the required minimum Networth/Stockholders' Equity and Construction Experience
of Technical Personnel of a particular category must also satisfy the minimum credit points required for the
said category, otherwise the contractor will not be qualified for such category. Conversely, contractors who
satisfy the minimum credit points must likewise satisfy both the required minimum Networth/Stockholders'
 Equity and Construction Experience of Technical Personnel of a particular category, otherwise the
contractor will not also be qualified to obtain such category.|||

"Credit Points" are based on five (5) basic licensing criteria which are given equivalent weights of
importance (credit points) for the purpose of categorizing contractors. The system for determining credit
points is shown at the back of this page.

The firm's AFS for the preceding CFY will be used to determine the contractor's Networth/Stockholders'
Equity. However, PCAB has the right to reject, or reduce portion thereof if, upon verification, the reported
assets of the contractor were found to be erroneous or not properly supported with documents.
At least one of the STE of the contractor must be a technology professional, such as an engineer or
architect, duly licensed by the Professional Regulation Commission (PRC) and possesses the required
minimum number of years of experience in a managerial or supervisory capacity, in
implementing construction projects which are of such types relevant to the contractor's classification.

To determine which category ISCOM ITALY should apply for reference should be made to the contract of
engagement with the subcontractor and/or the agreement with the tendering agency.

N. APPLICATION FO REGISTRATION AND CLASSIFICATION OF CONTRACTOR (ARCC) FOR

GOVERNMENT INFRASTRUCTURE PROJECTS

Applicants interested to participate in government projects should accomplish the Application for
Registration and Classification of Contractor for Government Infrastructure Projects and file the same with
the PCAB Application Form.

The following are the documentary requirements therefor:

1 Duly accomplished application form

2 Contract agreement duly authenticated by the tendering agency/project owner/prime
contractor in case of subcontract
3 Letter or certificate of acceptance duly authenticated by the tendering agency/project
owner/prime contractor in case of subcontract
4 Certificate of creditable income tax withheld of source (BIR Form 1743.1, 1743.750 or 2307)
duly stamped-received by the BIR or Bank Collecting Agent for subcontracts and & non-
government or private contracts

O. LICENSING FEE STRUCTURE

Licensing and other related and incidental services shall be subject to assessment of the following fees:

PCAB LICENSING FEE STRUCTURE

CATEGORY
TYPES OF FEES AAA AA A B C D TRADE
(Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos) (Pesos)
New Application
Filing Fee 600 600 600 600 600 600 600
Classification Fee
 Principal Classification 2,400 1,200 240 120 72 24 exempt
 Other Classification/s
(chargeable for each 1,200 600 120 60 36 12 exempt
classification)
Categorization Fee 21,600 10,800 3,600 2,400 1,200 600 exempt
License Fee 50 50 50 50 50 50 50
Renewal Application
Filing Fee 600 600 600 600 600 600 600
Category Review 14,400 7,200 2,400 1,800 960 480 exempt
License Renewal Fee 50 50 50 50 50 50 50
Surcharge for late Renewal 20 20 20 20 20 20 20
Special License
a. New Application
Filling Fee 600 600 600 600 600 600 600
License Fee (per project basis) 50 50 50 50 50 50 50
Categorization Fee (per CFY
21,600 10,800 3,600 2,400 1,200 600 exempt
basis)
b. Renewal Application
Filling Fee 600 600 600 600 600 600 600
License Fee 50 50 50 50 50 50 50
Categorization Fee 14,400 7,200 2,400 1,800 960 480 exempt
Additional Classification
Principal Classification License 1,200 600 120 60 36 12 N/A
Revision/Re-issue 50 50 50 50 50 50 N/A
Upgrading of Category
Categorization Fee 21,600 10,800 3,600 2,400 1,200 600 N/A
License Revision/Re-issue 50 50 50 50 50 50 N/A
Other Types of Petitions
Change of AMO 50 50 50 50 50 50 50
Change of Business Name/Status 50 50 50 50 50 50 50
License Revision (for each type of
50 50 50 50 50 50 50
petition)
License Replacement/Reprint 60 60 60 60 60 60 60

REGISTRATION (ARC) FEES

TYPE OF FEES SIZE RANGE
Large A & B Medium A & B Small A& B
(Pesos) (Pesos) (Pesos)
New Registration
a. Filing Fee 60 60 60
b. Project Kind (PK) Fee
 First Project Kind 3,600 2,400 1,200
 Succeeding Project Kind (if any) 600 600 600
Re-Registration
a. Filing Fee 60 60 60
b. Project Kind (PK) Fee
 First Project Kind 3,600 2,400 1,200
 Succeeding Project Kind (if any) 600 600 600
Upgrading of Size Range
a. Filing Fee 60 60 60
b. Size Range (SR) Fee
 Small A to Small B - - 60
 Small A/B to Medium A/B - 1,200 -
 Small A/B to Large A/B 2,400 - -
 Medium A to Medium B - 60 -
 Medium A/B to Large A/B 1,200 - -
 Large A to Large B 60 - -
Additional Project Kind
a. Filing Fee 60 60 60
b. Additional Project/s Fee
 First Additional Project Kind
o Small A/B & presently with all Small A/B 600
o Medium A/B & presently with all Small 1,200
A/B
o Large A/B & presently with all Small A/B 2,400
o Medium A/B & presently with all Medium 600
A/B
o Large A/B & presently with all Medium 1,200
A/B
 Succeeding Project Kind/s (if 600 600 600
any)

PHILIPPINE OVERSEAS CONSTRUCTION BOARD

Revised Miscellaneous Fees
(Revised Schedule of Fees, effective CFY 2001-2002)
Listing (per page) P 12 Registration (new) P 20,000
Certification (per page) P 24 Renewal of registration P 10,000