Change comes after 5 decades: House OKs bill raising 1965-era penalties for errant contractors

By Billy Begas

The House of Representatives has approved on third and final reading a measure increasing the penalties against errant public works contractors.

In a statement issued on Friday, Pampanga Rep. Aurelio Gonzales Jr. said House Bill 7808 will amend the Contractors’ License Law (Republic Act 4566) that was enacted in 1965.

Gonzales, a civil engineer by profession, said his proposal seeks to ensure that only qualified and reliable contractors are allowed to undertake construction in the country.

Under the measure, a contractor who participates in a bidding or actually engages in construction without a license from the Philippine Licensing Board for Contractors would face a fine of not less than P100,000 or .1% of the project cost, whichever is higher.

In addition, the errant contractor would be prohibited from gaining a contracting license for one year.

The penalty under RA 4566 is a fine of P500 to P5,000.

Licensed contractors who intend to jointly undertake a construction project would be required to obtain an additional license from the licensing board for their joint venture.

Failure to do so would automatically disqualify them from such project. Additionally, they would face a fine of .1 percent of the project cost.

The bill also increases fees for processing of original or renewal of license from P50 to P5,000. The payment for written or oral examination will be increased to P6,000 from P60.

For contractors with less than 10 years of experience, the contracting license should be renewed every year. For those with 10 to 25 years of experience, the renewal will be every two years and every three years for contractors with more than 25 years of experience.

Source: Latest Politics News Today (Politics.com.ph)