AN ACT CREATING THE PHILIPPINE LICENSING BOARD FOR CONTRACTORS

Case Overview and Summary

Summary of Republic Act No. 4566 (Contractors' License Law):

Title and Administration
- This Act is known as the "Contractors' License Law".
- It creates the Philippine Licensing Board for Contractors under the Board of Examiners. (Sec. 1-2)
- The Board consists of a Chairman and two members appointed by the President. (Sec. 2)
- Members must have 10+ years of experience in contracting, be Filipino citizens, residents for 8+ years, 35+ years old, and of good moral character. (Sec. 3)
- The Chairman and members have 3-year terms, with initial staggered terms. (Sec. 4)
- The Board has powers to issue, suspend, and revoke licenses, investigate violations, issue subpoenas, adopt a code of ethics, and make rules with Presidential approval. (Sec. 5)

Application of the Act
- Defines key terms like "persons", "contractor", "general engineering contractor", "general building contractor", and "specialty contractor". (Sec. 9)
- Exempts authorized government representatives, finished product installations, personal property work, minor work under ₱10,000, architects/engineers acting professionally, and material suppliers. (Sec. 10-15)

Classifications
- Contracting business includes general engineering, general building, and specialty contracting. (Sec. 16)
- The Board can classify contractors and limit their scope of operations. Contractors can be classified in multiple categories. (Sec. 17)
- Specialty contractors can perform incidental work in other trades. (Sec. 18)

Licensing
- The Board can examine and qualify applicants for contractors' licenses. (Sec. 19)
- Applicants must have 2+ years of experience, knowledge of relevant laws and business principles. Firms can qualify through a responsible managing officer. (Sec. 20)
- Licensees must notify the Board within 10 days of personnel changes or face suspension. (Sec. 21-22)
- The Board issues licenses upon application, fee payment, and examination/investigation. (Sec. 23)
- Provisions for partnership continuance after death, and exemption from examination for experienced contractors. (Sec. 24-25)

Records and Disciplinary Action
- The Board publishes a list of licensed contractors annually. (Sec. 26)
- Licensees must report changes in personnel, name, style or address within 30 days. (Sec. 27)
- Causes for disciplinary action include abandonment, plan violations, misrepresentation, aiding unlicensed practice, non-compliance, fraud, and participation in violations by a firm. (Sec. 28)

Disciplinary Proceedings
- The Board investigates complaints against contractors and can suspend or revoke licenses. (Sec. 29)
- Accusations must be filed within 1 year, except for fraud (2 years after discovery). (Sec. 30)
- The Board can lift suspensions upon compliance, and renew revoked licenses after 1 year if conditions are met. (Sec. 31)
- The Board retains jurisdiction over lapsed, suspended or surrendered licenses. (Sec. 32)

Enforcement and Penalties
- Law enforcement officers must enforce the Act and report violations. (Sec. 33)
- The Board can secure injunctions against unlicensed contractors. (Sec. 34)
- Unlicensed practice, misrepresentation, impersonation or use of revoked license is punishable by ₱500-5,000 fine. (Sec. 35)

Miscellaneous Provisions
- Bidding documents must include licensing requirements. (Sec. 36)
- Individual licenses are required for responsible managing partners/employees. (Sec. 37)
- Joint licenses are required for joint venture bids by multiple licensees. (Sec. 38)

Fees
- ₱50 for original license, ₱60 for examination, ₱50 for annual renewal. (Sec. 39)

Renewal of Licenses
- Licenses must be renewed annually by June 30, with late fee of ₱20 after that date. (Sec. 40)
- Licenses suspended for over 1 year cannot be renewed. (Sec. 41)

Special Provisions
- Separability clause for unconstitutional provisions. (Sec. 42)
- Repeals inconsistent laws. (Sec. 43)
- Effectivity upon approval. (Sec. 44)