An Act Further Amending Republic Act No. 4566, as Amended, Otherwise Known as the Contractors' License Law
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An Act Further Amending Republic Act No. 4566, as Amended, Otherwise Known as the Contractors' License Law
Republic Act No. 11711
April 27, 2022
Case Overview and Summary
Summary of Republic Act No. 11711 (Further Amending the Contractors' License Law)Issuance of Licenses (Section 1):
- The Contractors' License Board shall issue a license to the applicant permitting them to engage in business as a contractor for one (1) year from the date of issuance, upon payment of the corresponding fee and filing of the application.
Prohibited Acts and Penalties (Section 2):
- Engaging in contracting business without a license is punishable by a fine of not less than ₱100,000 but not more than ₱500,000, plus 0.1% of the project cost, and prohibition from obtaining a license for one (1) year.
- Licensed contractors jointly submitting a bid or acting as a joint venture without an additional license are subject to the same fine, automatic revocation of licenses, and prohibition from obtaining a license for one (1) year.
- Managing partners, officers, or employees of a licensed entity engaging in contracting business individually without a license are subject to the same fine, plus 0.1% of the project cost, and prohibition from obtaining a license for one (1) year.
- Presenting or filing another's license certificate, giving false evidence, impersonating another, or using an expired or revoked license is punishable by a fine of not less than ₱500,000 but not more than ₱1,000,000, and imprisonment of not less than one (1) year but not more than six (6) years.
Fees (Section 4):
- ₱5,000 for an original license.
- ₱6,000 for examination of an applicant.
- ₱5,000 for renewal.
- The Board can adjust the fees not more than once every three (3) years, but not more than 15%.
Renewal (Section 5):
- Licenses are valid for one (1) year from the date of issuance, with a renewal fee of ₱5,000.
- Contractors in operation for 25 years or more can renew their license every three (3) years.
- Contractors in operation for 10 to 25 years can renew their license every two (2) years.
- Contractors in operation for less than 10 years must renew their license every year.
- Renewal applications can be filed 90 days before expiration but not later than 30 days before expiration.
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An Act Further Amending Republic Act No. 4566, as Amended, Otherwise Known as the Contractors' License Law
Republic Act No. 11711
•April 27, 2022
April 27, 2022
REPUBLIC ACT NO. 11711
AN ACT FURTHER AMENDING REPUBLIC ACT NO. 4566, AS AMENDED, OTHERWISE KNOWN AS THE CONTRACTORS' LICENSE LAW
SECTION 1. Section 23 of Republic Act No. 4566, as amended, is hereby amended to read as follows:
"Section 23. Issuance of Licenses. — Upon the payment of the corresponding fee and the filing of the application, and after examination and investigation as may be required, the Board shall issue a license to the applicant permitting him to engage in business as a contractor under the terms of this Act for one (1) year from the date of issuance."
SECTION 2. Section 35 of Republic Act No. 4566, as amended, is hereby deleted, and replaced with a new Section 35, to read as follows:
"Section 35. Prohibited Acts. — The following are prohibited under this Act:
"(a) Any contractor who, for a price, commission, fee or wage, submits or attempts to submit a bid to construct, or contracts to or undertakes to construct, or assumes charge in a supervisory capacity of...
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