What is a Philippine Contractors Accreditation Board License (PCAB)?
If you are a contractor working in the construction industry in the Philippines, you will need to get a Philippine Contractors Accreditation Board License (PCAB). PCAB is a license mandated by the Philippine law under RA 4566 or Contractor’s License Law. It states that it is a legal offense to engage in contracting business without first securing a license. The law aims to ensure the safety of the public so that only qualified contractors will be allowed to undertake construction in the country.
Under the aforementioned law, all architects and engineers who are planning for work to be contracted in the Philippines shall stipulate in their invitation to bidders and in their specifications that it will be necessary for any bidder, whether contractor, sub-contractor, or specialty contractor, to have a license before his bid is considered. This applies to all – regardless of whether they are a resident of the Philippines or not. A contractor may engage in any of these four classifications: general engineering, general building, specialty, and trade, and you can learn more about these classifications in this article.
Types of PCAB licenses
- Regular – A license awarded to domestic construction companies classified as a sole proprietorship, a partnership, or a corporation with at least sixty percent (60%) Filipino equity.
- (There is an interesting development here, the supreme court in the case of PCAB vs. Manila water company inc G.R> no. 217590 Dated March 10, 2020, struck down this nationality requirement and ruled that PCAB went beyond the confines of delegating statute when it created the nationality-based license types in its Rules and Regulations. They further ruled that Regular Licenses can be issued to domestic corporations regardless of foreign equity ownership. In other words, because of this ruling, even a 100% foreign-owned construction company can secure a Regular License from PCAB. That said, construction companies holding a Regular License can also restructure its ownership to increase foreign equity participation without its License being ipso facto invalidated. Note however, that as per PCAB, this ruling of the Supreme Court is yet to be implemented by their office; hence, the status quo is still in place, wherein the limitation of 40% for foreigners is still in effect.)
- Special – A license granted to a consortium, a foreign contractor, a joint venture, or a project owner who only allows the construction of a single, specific project/undertaking.
How long is the validity of the PCAB license?
A regular license will be valid for one fiscal year from July 1 to June 30 of the following year unless canceled, suspended, or revoked by the board. On the other hand, a special license will be canceled by the board when the project for which it was applied for is completed, even before the fiscal year.
How long is the processing time for the licenses?
These are the recommended processing times for licenses as reported by the Construction Industry Authority of the Philippines:
- 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
- Change of Business Name – 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
Requirements to apply for a PCAB license:
Here is a list of what you will need to apply for a new regular contractor’s license:
- Affidavit of Attestation
- Authorized Managing Officer (AMO) Affidavit
- Authority to verify documents with Depository Bank, BIR and other Government Agencies
- Authorized Representatives Affidavit
- Certificate of Attendance of 2-day AMO Seminar
- Certificate of Completion of 40-hour Construction Safety and Health Seminar (COSH)
- Certificate of Completion of 40-hour Construction Safety and Health Seminar (COSH) of at least one (1) of the qualified nominated STEs;
- A certified true copy of the Business Name Registration Certificate
- Contractor’s General Information
- 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.
- Construction in Progress: Schedule with complete details (if the amount exceeds 10% of the Net Worth)
- Documents supporting other assets
- 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
- Integrity Pledge
- Original NBI Clearance
- Original signature (preferably with blue ink) of AMO on every page of the application forms, including supporting documents
- Proofs of Employer’s membership with SSS, PHILHEALTH, and PAG-IBIG
- Schedule of Receivables
- Sustaining Technical Employee(s) Affidavit of Construction Experience
- Sustaining Technical Employee(s) Personal Appearance
- Sustaining Technical Employee(s) Affidavit of Undertaking with a copy of valid PRC ID/s
Can I get help in acquiring my PCAB license?
Yes, you may get help in acquiring your Philippine Contractors Accreditation Board License (PCAB). Foreign nationals or non-resident aliens who find it challenging to obtain their PCAB license in the Philippines may contact Triple I Consulting for assistance. As the first ISO 9001:2008 company in the Philippines to offer business registration services to its clients, Triple I Consulting is armed with a team of Philippine business strategy experts who can provide professional help for the timely acquisition of a PCAB license.
Instead of doing this yourself, you can Contact Us Here, fill out the form below, call us at +63 (02) 8540-9623, or email us at firstname.lastname@example.org to book an initial consultation with one of our PCAB license experts.