PCAB License in the Philippines

In construction businesses within the Philippines, adherence to the regulations stipulated by the Philippine Contractors Accreditation Board License (PCAB) is a prerequisite for all contractors. Enshrined within the legal framework of RA 4566, or the Contractor’s License Law, this mandate underscores the imperative for contractors to secure licensure before engaging in any contracting business activities. The overarching aim of this law is to safeguard public safety by ensuring that only duly qualified contractors are entrusted with construction projects throughout the nation.

About the statute above, it is incumbent upon architects and engineers orchestrating contracted work in the Philippines to explicitly state within their bid invitations and project specifications the indispensable requirement for bidders—contractors, sub-contractors, or specialty contractors—to possess a valid license. This requirement applies universally, irrespective of residency status within the Philippines. Contractors may operate within four classifications: general engineering, general building, specialty, and trade—a delineation detailed further within this discourse.

Types of PCAB Licenses

1. Regular License:
2. They are awarded to domestic construction entities classified as sole proprietorships, partnerships, or corporations maintaining at least sixty percent (60%) Filipino equity. Notably, a recent legal development emanating from the Supreme Court ruling in the case of PCAB vs. Manila Water Company Inc. (G.R. No. 217590, March 10, 2020) has challenged the nationality requirement previously imposed on Regular Licenses. The Court deemed such restrictions to exceed the statutory purview delineated by the governing statute. Consequently, the ruling established that domestic corporations can obtain regular licenses regardless of foreign equity ownership, enabling even wholly foreign-owned construction enterprises to secure such licensure.
3. Special License:
4. Granted to consortiums, foreign contractors, joint ventures, or project owners exclusively for constructing a singular, designated project or undertaking.

PCAB License Validity and Processing Duration

The validity of a Regular License spans one fiscal year, extending from July 1 to June 30 of the subsequent year, subject to cancellation, suspension, or revocation by the board. Conversely, a Special License is terminated upon completing the project for which it was acquired, irrespective of the fiscal year.

Processing timelines for various license categories are recommended by the Construction Industry Authority of the Philippines (CIAP) and are delineated as follows:

• New Regular License: 30 business days
• Renewal of Regular License: 10 business days
• Revision of Classification: 15 business days
• Upgrading of License Category: 30 business days
• Change of Authorized Managing Officer: 30 business days
• Change of Business Name & Status: 15 business days
• Joint Venture-Local (New/Renewal/Re-Issuance); Consortium-Local (New/Renewal/Re-Issuance): 5 business days
• Joint Venture-Foreign (New); Consortium-Foreign (New); Foreign (New): 30 business days
• Joint Venture-Foreign (Renewal); Consortium-Foreign (Renewal); Foreign (Renewal): 10 business days
• Registration for Government Infrastructure Projects: 10 business days
• Additional Project Kind: 15 business days
• Public-Private Projects (PPP): 5 business days

PCAB License Application Requirements

Prospective applicants are mandated to furnish the following documentation for the procurement of a new Regular Contractor’s License:

1. Affidavit of Attestation
2. Authorized Managing Officer (AMO) Affidavit
3. Authority to verify documents with Depository Bank, BIR, and other Government Agencies
4. Authorized Representatives Affidavit
5. Certificate of Attendance of 2-day AMO Seminar
6. Certificate of Completion of 40-hour Construction Safety and Health Seminar (COSH)
7. A certified true copy of the Business Name Registration Certificate
8. Contractor’s General Information
9. Complete Audited Financial Statement (AFS) with accompanying Auditor’s Opinion Report and Notes dated within the last six (6) months immediately preceding the filing of the application
10. Construction in Progress: Schedule with complete details (if the amount exceeds 10% of the Net Worth)
11. Documents supporting other assets
12. For existing firms: AFS for the immediately preceding taxable year and copy of Annual Income Tax Return (ITR) and Quarterly ITR certified by the BIR
13. Integrity Pledge
14. Original NBI Clearance
15. Original signature (preferably with blue ink) of AMO on every page of the application forms, including supporting documents
16. Proofs of Employer’s membership with SSS, PhilHealth, and PAG-IBIG
17. Schedule of Receivables
18. Sustaining Technical Employee(s) Affidavit of Construction Experience
19. Sustaining Technical Employee(s) Personal Appearance
20. Sustaining Technical Employee(s) Affidavit of Undertaking with a copy of valid PRC ID/s

PCAB Categorization Classification Table

The PCAB License Categorization and Classification table provides a comprehensive framework for categorizing and classifying contractors within the construction industry. This table offers a structured approach to discerning the capabilities and qualifications of contractors, facilitating informed decision-making processes for stakeholders involved in construction projects. By delineating contractors into specific categories and classifications based on their expertise, capacity, and track record, the table ensures compliance with industry standards and regulations.

Below is the latest PCAB Categorization and Classification table, dated 2017.

Secure a PCAB License for your contracting business more efficiently than navigating the learning curve on your own. The PCAB License must be renewed annually, which we can also assist your company with.

BusinessRegistrationPhilippines (sister site of Triple i Consulting) is your go-to platform for assisting contractors, investors, and stakeholders in establishing and securing their enterprise’s business needs.

Triple i Consulting is the first ISO 9001:2008 certified firm offering company and business registration services in the Philippines. With a team of seasoned experts with up to a decade of experience in Philippine business incorporation, accounting, taxation, FDA licensing, product registration, and more, Triple i assists contracting businesses seeking to secure their PCAB License and other necessary permits.

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