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PCAB Licensing questions, discussions & suggestions
Contractor License in Philippines
My name is Sarawut, working for Italthai Engineering Company as a site engineer. Now, I have got a contact from a gold mining company in Philippines for invitation to bid. However, they’re asking for a contractor license to work in Philippines.
So, I would like to know how to get this license in Philippines, say;
1) What organization or persons in Philippines we need to contact with?
2) What kind of document we have to submit?
3) How long for the process to get the license?
4) Do we need to have a local office in Philippines?
5) How much we have to pay for the application fee?
6) Any regulation or restriction we need to comply with?
7) Any criteria we need to know?
Thank you in advance.
ITALTHAI ENGINEERING CO.,LTD. 2034/124 Italthai Tower 29th Fl.,New Petchburi Rd., Bangkapi, Huay Kwang, Bangkok 10310
Tel: +662 723 4420-5 Ext: 7102 Fax: +662 723 4427 Mobile: +856 2822 1725
Firstly, we wish to point out that no entity may engage in the business of contracting in the Philippines unless such entity has first secured a license from the Philippine Contractors Accreditation Board (PCAB). Failure to do so is an offense under the Contractors’ License Law (RA 4566). (There are some minor exceptions but they do not apply in the current instance)
The participation of foreign contractors in projects in the Philippines is limited to foreign financed/ internationally-funded projects subject to international bidding and allowed in accordance with a Bilateral Agreement entered into by and between the Philippine Government and the foreign/International Financing Institution.
Foreign contractors qualifying for such projects must apply for a Special License to PCAB. A special license is limited to a single project and does not extend beyond the scope of that project. There is no general license for foreign contractors.
Section 4.6.e of the Rules & Regulations under RA 4566 (the Contractors’ License Law) provides as follows in respect of the sole participation of foreign contractors in local projects:
e) A foreign Constructor
ea) Application properly accomplished on form as prescribed by the Board;
eb) General Information Sheet;
ec) Board Resolution authorizing its Resident Alien Representative in the Philippines to act for and in behalf of the company. The Board Resolution must define the scope and/or limitations of the powers of the Resident Alien Representative:
ed) Board Resolution appointing and authorizing the Filipino Resident Agent to accept summons and other legal process in behalf of the applicant;
ee) Copy of Contractors License/Permit/Authority issued by the appropriate government agency in the home country of the applicant foreign contractor, if required by the home government;
ef) Certification from the appropriate Tendering Agency (Ministry, Bureau, Office) that the project is foreign financed/ internationally-funded and that international bidding is allowed under the Bilateral Agreement entered into by and between the Philippine Government and the foreign/International Financing Institution;
eg) Certificate issued by the Board of Investments allowing the foreign contractor to undertake construction project in the Philippines;
eh) Copy of "Invitation to Bid" or "Instruction to Bidders" or "Notice to Bidders" showing the date of bidding;
ei) List of completed construction project(s) in the Philippines undertaken by the company during the last three (3) years showing the following: Title of Projects, Location, Tendering Agency (DPWH, MWSS, NIA, etc.) Lending Institution (IBRD, ADB, OECF), Date contract was signed, Date of completion, Loan Agreement No.;
ej) List on-going construction project(s) in the Philippines being undertaken by the company showing the following: Title of Project, Location, tendering Agency, Lending Institution, Date Contract was signed, scheduled date of completion. Loan Agreement No.;
ek) Audited Financial Statements during the preceding year; and
el) Philippine Income Tax Return during the preceding year, if applicable.
The filing of the Special License application will only be accepted by PCAB if it is 100% complete in form and substance. From that point onwards the approval or not of the license should take no more than 10 days provided that the information contained therein is easily verifiable. If not, it may take a bit longer.
The New Foreign Contractor License Application as well as Fee Structure is downloadable from our website in the following link: www.pcametro.ph/pcab.htm (in left margin under PCAB Forms). The contact particulars of PCAB are also enumerated on that page.
Joint ventures with Filipino Partners are also possible but that is a different subject.
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