Being a Contractor in the Philippines, regardless of the nationality of the company, may not be as easy as it used to be. Indeed, after years of non-compliance with the Republic Act (RA) 4566 (also called Contractor’s License Law)—sometimes due to a simple lack of awareness of the law—the government is now determined to enforce stricter regulations. Obtaining a PCAB License for Contractors is a mandatory requirement to legally operate in the country, ensuring compliance with industry standards and government regulations. Understanding the requirements for PCAB license is crucial for businesses seeking to secure their license and maintain legal operations in the construction industry.
“The Contractor’s License Law: R.A. 4566 provides that no contractor (including sub-contractor and specialty contractor) shall engage in the business of contracting without first having secured a PCAB license to conduct business. It is an offense to engage in contracting business without a license first being obtained.”
The law was enacted in 1965 to ensure for the safety of the public that only qualified and reliable contractors are allowed to undertake construction in the country, meaning those obtaining the Philippine Contractors Accreditation Board (PCAB) License.
PCAB has been working hard to enforce compliance with unlicensed Contractors by implementing a series of actions. For example, Mayors have been required to only issue Business permits to licensed contractors, subcontractors and specialist contractors. Additionally, Local Building Officials have been requested to ensure that only duly licensed and registered contractors may perform the work before Building Permits are delivered for projects.
The Philippines Construction Association (PCA Metro), accredited by PCAB, believes that the lack of compliance in obtaining the PCAB License creates a dangerous imbalance in the construction industry affecting the credibility, legitimacy and competitiveness of the industry locally and also globally. Therefore they do not hesitate to denounce publicly the unlicensed companies. Furthermore, PCA Metro launched a campaign untitled “Report an unlicensed contractor” to allow the public and fellow contractors to anonymously provide details of unlicensed contractors for PCAB action.
Many major companies such as PLDT are now requiring all their contractors to obtain their requirements for PCAB license as it is an offense under the law to hire unlicensed contractors. In fact not only engineering and building professions are required to obtain their license but also companies providing Plumbing & Sanitary work, Communication facilities, Electrical work, and many others under the category “Specialty”.
Triple I consulting has a team of expert consultants who are fully up to speed with latest PCAB requirements and conditions. Our team can assist you to secure your PCAB accreditation in the shortest amount of time and with the least amount of fuss. Contact us today for an initial consultation.
