House panel approves bill amending Contractors’ License Law

House panel approves bill amending Contractors’ License Law

MANILA – A measure imposing fines on contractors who engage in joint ventures without first securing an additional license to conduct business and complying with other eligibility requirements hurdled committee level at the House of Representatives.

During its virtual meeting on Tuesday, the House Committee on Trade and Industry approved House Bill 1911, which seeks to amend Sections 38, 39, and 40 of Republic Act 4566, or the Contractors’ License Law.

The bill proposes a fine of not less than PHP50,000 if the cost of the project is not more than PHP500 million, and a fine of not less than PHP500,000 if the cost of the project is more than PHP500 million.

The bidder shall also be automatically disqualified from the award of contract.

Deputy Speaker Aurelio Gonzales Jr., the main author of the bill, said the proposed amendments aim to rectify the “existing infirmities” in the Contractors’ License Law.

Gonzales said the existing fees as stipulated in the law has yet to be amended since its enactment in 1965.

The measure seeks to increase the original license fee to PHP5,000 from the current PHP50; the examination of an applicant to PHP6,000 from the current PHP60; and the annual renewal to PHP5,000 from the current PHP50

“Higher fees for licensing, registration of application and renewal shall be implemented to address inflation and rising operational costs and expenses of the PCAB (Philippine Contractors Accreditation Board) support additional mandates and services, and other developmental programs, projects and advocacies by the PCAB,” Gonzales said.

According to the proposed law, a license shall be made valid for one year from its issuance. It also may be renewed by filing an application for renewal at least one month before its expiry date to the board accompanied by the annual renewal fee and such other documents as may be required by the board. (PNA)

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