Creating The Construction Industry Authority Of The Philippines (CIAP)

Case Overview and Summary

Summary of Presidential Decree No. 1746

Creation of the Construction Industry Authority of the Philippines (CIAP)
- Established to promote, accelerate and regulate the growth and development of the construction industry (Section 2)
- Composed of the Minister of Industry as Chairman, Chairmen of different agencies under the Decree, President of the Philippine Contractors Association, and a private sector representative (Section 1)

Powers and Objectives of CIAP (Section 2)
- Evolve overall strategy and exercise centralized authority for the construction industry
- Monitor and study the operations of the industry, identify needs, problems and opportunities, and recommend/implement policies, programs and measures
- Rationalize investments in the construction industry
- Establish criteria for classification and categorization of contractors
- Enforce rules and requirements for pre-qualification of public projects
- Recommend adoption of equitable and realistic contract conditions
- Seek adoption of credit and financing policies for the industry
- Identify and recommend incentives for overseas construction
- Establish procedures for adjudication and settlement of claims and disputes
- Promote construction manpower training
- Establish a funding mechanism with the private sector
- Perform other necessary functions

Organization of CIAP (Section 3)
- Attached to the Ministry of Industry for policy and program coordination
- Exercise authority over government agencies conducting business with or regulating the construction industry
- Exercise jurisdiction and supervision over implementing agencies:
1. The Philippine Contractors Accreditation Board (Section 4)
2. The Philippine Overseas Construction Board (Section 5)
3. The Philippine Domestic Construction Board (Section 6)
4. The Construction Manpower Development Foundation (Section 7)

The Philippine Contractors Accreditation Board (Section 4)
- Replaces the abolished Philippine Contractors Licensing Board
- Composed of a Chairman and two members appointed by the President
- Performs the functions of the former Philippine Contractors Licensing Board

The Philippine Overseas Construction Board (Section 5)
- Created under P.D. 1167, as amended
- Placed under the jurisdiction and supervision of CIAP
- Continues to perform its present functions and additional functions assigned by CIAP

The Philippine Domestic Construction Board (Section 6)
- Composed of a Chairman and four members appointed by the President
- Formulates, recommends and implements policies, guidelines, plans and programs for efficient implementation of public and private construction
- Specific functions include:
1. Formulate policies and guidelines for pre-qualification, bidding and contract award for public infrastructure projects (Section 6(b)(1))
2. Monitor and evaluate information on public construction projects and performance of contractors (Section 6(b)(2))
3. Adjudicate and settle claims and disputes in public construction contracts (Section 6(b)(3))
4. Formulate and recommend standardized contract terms/conditions and guidelines for determining contract price adjustments in private construction (Section 6(b)(4))
5. Formulate rules and procedures for adjudication and settlement of claims and disputes in private construction (Section 6(b)(5))
6. Perform other functions assigned by CIAP (Section 6(b)(6))

The Construction Manpower Development Foundation (Section 7)
- Serves as the manpower development arm of CIAP
- Composed of a Chairman and four members appointed by the Minister of Industry
- Functions include:
1. Draw up an overall construction manpower development plan and strategies (Section 7(b)(1))
2. Develop and implement manpower training programs (Section 7(b)(2))
3. Formulate construction skills and standards, establish skills testing and certification facilities (Section 7(b)(3))
4. Recommend policies and measures to rationalize training and export of trained manpower (Section 7(b)(4))
5. Develop a funding mechanism by collecting fees and undertaking income generating activities (Section 7(b)(5))
6. Borrow from financing institutions (Section 7(b)(6))
7. Perform other functions assigned by CIAP (Section 7(b)(7))
- Coordinates activities with National Manpower and Youth Council, Bureau of Employment Services, Philippine Overseas Construction Board, and Ministry of Education and Culture

Executive Office (Section 8)
- Headed by a full-time Executive Director appointed by the Chairman
- Maintains technical, legal and management staff
- Executive Director reports to CIAP and monitors implementation of policies and programs
- Each implementing agency establishes its own Secretariat headed by an Executive Officer

Compensation (Section 9)
- CIAP fixes per diems of Chairmen and members of implementing agency Boards
- CIAP fixes salaries and allowances of Executive Director, staff of Executive Office, and Secretariats

Meetings (Section 10)
- CIAP and implementing agency Boards meet at least once a quarter
- Special meetings may be called by respective Chairmen
- Majority of members constitutes a quorum

Rules and Regulations (Section 11)
- CIAP issues necessary rules and regulations for implementation

Funding (Section 12)
- ₱5,000,000.00 authorized from Special Activities Fund for CY 1981 operating and capital expenses
- CIAP and implementing agencies empowered to collect fees and undertake income generating activities
- CIAP and implementing agencies authorized to use income to finance operations

Separability Clause (Section 13)
Repealing Clause (Section 14)
Effectivity Clause (Section 15)