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PRESIDENTIAL DECREE NO. 1746
PRESIDENTIAL DECREE NO. 1746
- CREATING THE CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES
(CIAP)
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WHEREAS,
the construction industry constitutes an important segment of the
industrial sector and contributes significantly to the gross
national product of the Philippines;chanroblesvirtualawlibrary
WHEREAS, construction is now a major industry, accounting for
more than five hundred thousand workers and providing livelihood
to more than three million Filipinos;chanroblesvirtualawlibrary
WHEREAS, the construction industry has began to venture into
international markets, generating foreign exchange and providing
greater employment to Filipino workers;chanroblesvirtualawlibrary
WHEREAS, the orderly growth and development of the construction
industry and the upgrading of the capability of construction
contractors are in consonance with national interest and will
benefit both public and private sector;chanroblesvirtualawlibrary
WHEREAS, the continued growth and development of the construction
industry requires an increasing number of skilled construction
workers; and chanroblesvirtualawlibrary
WHEREAS, such growth and development have been hampered by the lack of
cohesive government policies and the absence of a central agency
to deal with the problems of the industry and to coordinate with
other government agencies on matters affecting the industry.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do
hereby order and decree the creation of the Construction Industry
Authority of the Philippines (CIAP) designed to promote,
accelerate and regulate the growth and development of the
construction industry as follows:cralaw:red
Section 1. Composition. — There is hereby established
a Construction Industry Authority of the Philippines which shall be
composed of the Minister of Industry as Chairman, the Chairmen
of the different agencies under this Decree namely: the
Philippine Contractors Accreditation Board, the Philippine
Overseas Construction Board, the Philippine Domestic
Construction Board, the Construction Manpower Development
Foundation, the President of the Philippine Contractors
Association, and one representative of the private construction
sector to be appointed by the President, as members. The chairman
shall designate a Vice-Chairman from among the members.
Section 2. Powers and Objectives. — The Construction
Industry Authority of the Philippines shall promote, accelerate
and regulate the growth and development of the construction
industry in conformity with national goals. chanroblesvirtualawlibrary
Specifically, the Authority shall have the following powers and
objectives:cralaw:red
a. To evolve an overall strategy and exercise
centralized authority for the optimum development of the
construction industry;chanroblesvirtualawlibrary
b. To monitor and study the operations of the
construction industry both here and abroad, to identify its
needs, problems and opportunities and to recommend and/or
implement policies, legislations, programs and measures to
support the development of the industry;chanroblesvirtualawlibrary
c. To rationalize investments in the construction
industry in accordance with national investment priorities and
development needs;chanroblesvirtualawlibrary
d. To establish criteria for the classification and
categorization of contractors which accurately reflect their
contracting capacity and performance capability;chanroblesvirtualawlibrary
e. To enforce relevant and reasonable rules and
requirements, as well as implement practicable and efficient
procedures for pre-qualification of public projects;chanroblesvirtualawlibrary
f. To recommend and encourage the adoption of
equitable and realistic contract conditions for construction;chanroblesvirtualawlibrary
g. To seek the adoption of credit and other financing
policies necessary for sustaining the continued and orderly
development of the construction industry and for supporting
Filipino contractors particularly those involved in overseas
construction;chanroblesvirtualawlibrary
h. To identify and recommend other incentives
necessary to support overseas construction;chanroblesvirtualawlibrary
i. To establish procedures, guidelines and criteria
for fair and expeditious adjudication and settlement of claims
and disputes in contract implementation; chanroblesvirtualawlibrary
j. To promote construction manpower training to
supplement the manpower training efforts of the private sector,
through the centralization of programming and coordination of
activities of all government agencies;chanroblesvirtualawlibrary
k. To establish a funding mechanism with the private
sector to promote and develop the construction industry;chanroblesvirtualawlibrary
l. To perform such other functions necessary to
achieve its objectives.
Section 3. Organization. — The Authority shall be
attached to the Ministry of Industry for policy and program
coordination. It shall exercise authority with respect to the
government agencies that conduct business with or exercise
regulatory powers over the construction industry. It shall
exercise jurisdiction and supervision over the following
agencies which shall act as its implementing arms. chanroblesvirtualawlibrary
a. The Philippine Contractors Accreditation Board;chanroblesvirtualawlibrary
b. The Philippine Overseas Construction Board;chanroblesvirtualawlibrary
c. The Philippine Domestic Construction Board;chanroblesvirtualawlibrary
d. The Construction Manpower Development Foundation.
Section 4. The Philippine Contractors Accreditation
Board. — There is hereby created a Philippine Contractors
Accreditation Board under the jurisdiction and supervision of the
Authority. The Philippine Contractors Licensing Board is
hereby abolished and all its funds and records are hereby
transferred to the Philippine Contractors Accreditation Board.
a. Composition. — The Board shall be composed of a
Chairman and two (2) members to be appointed by the President
upon recommendation of the Authority. The present Board of
the Philippine Contractors Licensing Board shall continue to hold
office as the Board of the Philippine Contractors Accreditation
Board until their respective successors have been duly appointed.
b. Functions. — The Philippine Contractors
Accreditation Board shall perform the present functions of the
Philippine Contractors Licensing Board until such time as its
other functions, powers and duties are issued by the
Authority. chanroblesvirtualawlibrary
Section 5. The Philippine Overseas Construction
Board. — The Philippine Overseas Construction Board created under
P.D. 1167, as amended, is hereby placed under the jurisdiction and
supervision of the Authority. It shall continue to perform its
present functions and shall perform additional functions as may
be assigned by the Authority.
Section 6. The Philippine Domestic Construction
Board. — There is hereby created a Philippine Domestic
Construction Board under the jurisdiction and supervision of
the Authority.
a. Composition. — The Board shall be composed of
Chairman and four (4) members to be appointed by the President
upon recommendation of the Authority.
b. Functions. — The Philippine Domestic Construction
Board shall formulate, recommend and implement policies, guidelines,
plans and programs for the efficient implementation of public and
private construction in the country. Specifically, it shall:cralaw:red
1. Formulate and recommend appropriate policies and
guidelines for prequalification, bidding and contract award for
public infrastructure projects;chanroblesvirtualawlibrary
2. Monitor and evaluate information on the status of
public construction projects as well as on the performance and
contracting capacity of contractors engaged in such projects;chanroblesvirtualawlibrary
3. Adjudicate and settle claims and disputes in the
implementation of public construction contracts and for this
purpose, formulate and adopt the necessary rules and regulations
subject to the approval of the President; chanroblesvirtualawlibrary
4. Formulate and recommend approximate and
standardized contract terms/conditions and guidelines for determining
contract price adjustments in private construction;chanroblesvirtualawlibrary
5. Formulate and recommend rules and procedures for
the adjudication and settlement of claims and disputes in the
implementation of contracts in private construction;chanroblesvirtualawlibrary
6. Perform such other functions as may be assigned by
the Authority.
Section 7. The Construction Manpower Development
Foundation. — There is hereby created a Construction Manpower
Development Foundation which shall serve as the manpower
development arm of the Authority. chanroblesvirtualawlibrary
a. Composition. — The Foundation shall have a Board
of Directors as composed of a Chairman and four (4) members to be
appointed by the Minister of Industry upon recommendation of the
Authority.
b. Functions. — The Foundation shall perform the
following functions:cralaw:red
1. Draw up an overall construction manpower
development plan and relevant strategies; chanroblesvirtualawlibrary
2. Develop and implement manpower training programs
for the construction industry; chanroblesvirtualawlibrary
3. Formulate and adopt construction skills and
standards and establish skills testing and certification
facilities in coordination with the National Manpower and Youth
Council;chanroblesvirtualawlibrary
4. Recommend appropriate policies and measures to
rationalize training and export of trained manpower in the
construction industry in coordination with the Ministry of Labor
and other pertinent government agencies; chanroblesvirtualawlibrary
5. Develop a funding mechanism in cooperation with
the construction industry to enable it to carry out its functions
by collecting fees and undertaking income generating activities;chanroblesvirtualawlibrary
6. Borrow from financing institutions as may support
its operations;chanroblesvirtualawlibrary
7. Perform such other functions as may be assigned by
the Authority. chanroblesvirtualawlibrary
The Foundation shall coordinate its activities and work program
with the National Manpower and Youth Council, the Bureau of
Employment Services of the Ministry of Labor, the Philippine
Overseas Construction Board and the Ministry of Education and Culture.
Section 8. Executive Office. — The Authority shall
have an Executive Office headed by a full-time Executive Director
to be appointed by the Chairman.
The Executive Office shall maintain a technical, legal and management
staff to assist the Executive Director in the performance of
these duties and responsibilities.
The Executive Director shall report directly to the Authority on
matters pertaining to and/or concerning the Authority and shall
be responsible for monitoring and implementation of the policies
and programs of the Authority, particularly by the four (4)
agencies of the Authority, for the purpose of ensuring
effectiveness and proper coordination. chanroblesvirtualawlibrary
The Philippine Contractors Accreditation Board, the Philippine
Domestic Construction Board and the Construction Manpower
Development Foundation shall establish their own Secretariats to
service their respective Boards and to assist the Authority in
the execution of its functions and responsibilities, subject to
pertinent budgetary organization, compensation and civil service
rules and regulations. Each of the three (3) agency
Secretariats shall be headed by their respective Executive
Officers to be appointed by the Chairman of the Authority upon
recommendation of their respective Boards. The Philippine
Overseas Construction Board shall continue to maintain its
Executive Staff.
All relevant agencies of the government involved in the
development and promotion of the construction industry are hereby
directed to coordinate with the Authority in the execution of its
functions.
Section 9. Compensation. — The Authority shall fix
(a) per diems of the Chairmen and the members of the different
Boards of the implementing agencies; and (b) the salaries and
allowances of the Executive Director, the staff of the Executive
Office as well as the office of the different Secretariats under
the Authority, subject to pertinent budget, compensation,
organization and civil service rules and regulations.
Section 10. Meetings. — The Authority and the Boards
of the implementing agencies shall meet as often as is necessary
but not less than once a quarter. Special meetings may be called
by the respective Chairmen. The presence of the majority of the
members of the Authority or the Boards of the implementing
agencies shall constitute a quorum. chanroblesvirtualawlibrary
Section 11. Rules and regulations. — The Authority
shall issue such rules and regulations as may be necessary for
the implementation of the general provisions of this Decree.
Section 12. Funding. — The amount of five million
pesos (P5,000,000.00) is hereby authorized to be released from
the Special Activities Fund to cover the operating and capital
expenses of the CIAP and its implementing agencies for CY 1981,
subject to Section 40 of P.D. No. 1177.
The Authority and its implementing agencies are hereby empowered to
collect fees and undertake income generating activities as may be
necessary in the execution of its functions and responsibilities.
The Authority and its implementing agencies are hereby authorized to
use its income to finance its operations, the provisions of law, to the
contrary, notwithstanding. chanroblesvirtualawlibrary
Section 13. Separability Clause. — The provisions of
this Decree are declared to be separable and if any provision or
the application thereof is held invalid or
unconstitutional, the validity of the other provisions shall not
be affected.
Section 14. Repealing Clause. — All provisions of
existing laws, proclamations, decrees, letters of instruction and
executive orders contrary to or inconsistent with this Decree are
hereby repealed or modified accordingly.
Section 15. Effectivity Clause. — This Decree shall
take effect immediately.
Done in the City of Manila,
this 28th day of November, in the year of Our Lord, nineteen
hundred and eighty.
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