CONSTRUCTION CONTRACT

MANAGEMENT
Construction Industry Arbitration Commission

July 12, 2018

Speaker: Ar/EnP. Maribel Tubera, MsCM, UAP, PIEP
2/F Executive Building Center, 369 Gil Puyat Ave. cor Makati Ave., Makati City
 FLOW OF DISCUSSION

• EXECUTIVE ORDER NO. 1008

• Presidential Decree No. 1746
• CIAC Construction Industry Arbitration Commission
• Resolution No. 01-2011
• Terminologies
• Procedures for arbitration
• Procedures for mediation
 EXECUTIVE ORDER NO. 1008
• Creating an arbitration machinery for the
Philippine construction industry
• "Construction Industry Arbitration Law".
• Creation of CIAC
 Presidential Decree No. 1746
• Created the Construction Industry Authority of
the Philippines (CIAP) to exercise centralized
authority for the optimum development of
the construction industry and to enhance the
growth of the local construction industry.
 CIAP Construction Industry Authority
of the Philippines
• Created on November 28 1980 by Virtue of PD
1746
• It promotes, accelerates and regulates the
construction industry.
• Its implementing boards are the Philippine
Contractors Accreditation Board (PCAB),
Philippine Overseas Construction Board (POCB),
the Philippine Domestic Construction Board
(PDCB), and the Construction Industry
Arbitration Commission (CIAC)
 Philippine Overseas Construction
Board (POCB)
• processes and approves, applications of
construction contractors for registration under
PD No. 1167, and to impose and collect
reasonable fees which shall be used
exclusively to meet the operating and
administrative expenses of the Board and in
promoting its objectives
 Philippine Domestic Construction Board
(PDCB)
• "adjudicate and settle claims and disputes in
the implementation of public and private
construction contracts and for this purpose,
formulate and adopt the necessary rules and
regulations subject to the approval of the
President“.
 Construction Industry Arbitration
Commission (CIAC)
• The CIAC shall be under the administrative
supervision of the PDCB.
 Jurisdiction of CIAC
• The CIAC shall have original and exclusive
jurisdiction over disputes arising from, or
connected with:
– contracts entered into by parties involved in
construction in the Philippines, whether the disputes
arises before or after the completion of the contract,
or after the abandonment or breach thereof.
– These disputes may involve government or private
contracts.
– For the Board to acquire jurisdiction, the parties to a
dispute must agree to submit the same to voluntary
arbitration.
 Jurisdiction of CIAC
• The jurisdiction of the CIAC may include but is not
limited to:
– violation of specifications for materials and
workmanship;
– violation of the terms of agreement;
– interpretation and/or application of contractual
provisions;
– amount of damages and penalties;
– commencement time and delays;
– maintenance and defects;
– payment default of employer or contractor and
changes in contract cost.
• Excluded from the coverage of this law are
disputes arising from employer-employee
relationships which shall continue to be
covered by the Labor Code of the Philippines.
 Finality of Awards
• The arbitral award shall be binding upon the
parties.
• It shall be final and unappealable except on
questions of law which shall be appealable to
the Supreme Court.
Execution and Enforcement of Awards
• As soon as a decision, order or award has
become final and executory, the Arbitral
Tribunal or the single arbitrator, with the
concurrence of the CIAC, shall motu propio or
on motion of any interested party, issue a writ
of execution requiring any sheriff or other
proper officer to execute said decision, order
or award.
 Mediation

• Is referred to a single neutral third party,

called a mediator, who is tasked to assist the
disputing parties arrive at a settlement.

• The mediator does not decide, but merely

makes recommendations for the parties to
consider.
 Arbitration
• Is a way of settling disputes(s) between
parties who agree to submit the same for
resolution by their nominated judges or
arbitrators.
• A decision or an award rendered by
arbitrator/s in CIAC arbitration proceedings is
enforceable by a writ of execution
 Two Modes of Arbitration
1. Sole arbitrator – one arbitrator
2. Arbitral Tribunal – 3 Arbitrators (chairman
and 2 members)
 Sole Arbitrator
• Where the parties have agreed that the
dispute(s) shall be settled by a Sole Arbitrator,
each party shall have the right to nominate six
arbitrators. If any or both of the parties fail to
submit the names of their nominees within
the period/s prescribed by CIAC, a Sole
Arbitrator shall be appointed by CIAC.
 Arbitral Tribunal
• Where the parties agree that the dispute shall
be resolved by an Arbitral Tribunal, each party
shall have the right to nominate six arbitrators
from the list of CIAC accredited arbitrators.
• If there is no common nominee, CIAC shall choose and
appoint, as members of the Tribunal, one arbitrator
from the claimant’s nominees and another arbitrator
from respondent’s nominees.

• The Third Arbitrator shall be selected by the two

Arbitrators first chosen within fifteen (15) days from
acceptance of their appointment.

• The three arbitrators shall decide from among

themselves who will be the Chairman.

• In case of failure to agree on the third member within

such period, CIAC shall, within fifteen (15) days
thereafter, appoint the third member from its list of
accredited arbitrators.
Conditions for appointment of foreign arbitrator
• A foreign arbitrator not accredited by CIAC may
be appointed as a co-arbitrator or chairperson of
an arbitral tribunal for a construction dispute
under the following conditions:
– the dispute is a construction dispute in which one
party is an international party i.e. one whose place of
business is outside the Philippines
– the foreign arbitrator to be appointed is not a
national of the Philippines and is not of the same
nationality as the international party in the dispute;
Procedure for appointment of foreign arbitrator

• The foreign arbitrator must be nominated by the

international party or is the common choice of
the two CIAC-accredited arbitrators one of whom
was nominated by the international party.

• The nomination must be accompanied by a

resume or bio-data of the nominee relevant to
qualifications as a construction arbitrator and a
signed undertaking of the nominee to abide by
CIAC arbitration rules and policies.
 General qualification of arbitrators
• The Arbitrators shall be men of distinction in whom the
business sector and the government can have
confidence.

• They shall be technically qualified to resolve any

construction dispute expeditiously and equitably.

• The Arbitrators shall come from different professions.

• They may include engineers, architects, construction

managers, engineering consultants, and businessmen
familiar with the construction industry and lawyers
who are experienced in construction disputes.
 The Arbitrators must be CIAC-accredited
• Only CIAC-accredited arbitrators may be nominated by
parties or by the first two arbitrators appointed as the
third member of a Tribunal and appointed by CIAC as
arbitrator.
• A replacement arbitrator shall likewise be a CIAC-
accredited arbitrator.
• However, as an exception to this rule, CIAC may
appoint to an Arbitral Tribunal an arbitrator who is not
CIAC - accredited PROVIDED that the nominee:
– 1) is the parties‟ common nominee;
– 2) possesses the technical/legal competence to handle the
construction dispute involved; and
– 3) has signified his availability/acceptance of his possible
appointments.
How to file?
 For Arbitration
1. Got to arbitration/Mediation Fee Online
Calculator to know how much is the
estimated fees required upon filling of the
complaint.

2. Download and Fill-up Request of Arbitration

Form. C:\Users\User\Desktop\space\lectures\module 4.4\Request For Arbitration (RFA).pdf

3. Download CIAC List of Accredited Arbitrators

as of 04 August 2017 and nominate six (6)
Arbitrators for Arbitral Tribunal
C:\Users\User\Desktop\space\lectures\module 4.4\List of CIAC-Accredited Arbitrators_as of 04Aug2017.pdf
Arbitration continued…
4. Download CIAC List of Qualified Sole
Arbitrators as of 09 August 2017 and
nominate six (6) arbitrators.
C:\Users\User\Desktop\space\lectures\module 4.4\list of arbitrators.pdf

5. Follow the Arbitration of Construction Claims

/Disputes (Process Flow Chart)

6. Procedures/Steps for CIAC Arbitration Clients

Arbitration of Construction Claims
Flow Chart
C:\Users\User\Desktop\space\lectures\module 4.4\Process Flow Chart on Arbitration of Construction Claims
Dispute.pdf
CIAC Arbitration Client Flow Chart
C:\Users\User\Desktop\space\lectures\module 4.4\Procedures Steps for CIAC Arbitration Clients.pdf
 For Mediation
1. Go to Arbitration/ Mediation Fee Online
Calculator to know how much is the estimated
fees required upon filling of the Complaint.

2. Download and fill-up MF No. 005 Request for

Mediation Form C:\Users\User\Desktop\space\lectures\module 4.4\Request for Mediation (MF
No. 005).pdf

3. Download Roster of CIAC Trained Mediators as

of 1 January 2017 C:\Users\User\Desktop\space\lectures\module 4.4\M.9 Roster of CIAC -
Trained Mediators (NEW) 1 January 2017.pdf
Mediation continued…..
4. Follow the Mediation of Construction
Claims/Disputes (Process Flow Chart)

5. Procedure/Steps for CIAC Mediation Clients

 Mediation of Construction Claims
Flow Chart
C:\Users\User\Desktop\space\lectures\module 4.4\Mediation of Construction Claims Dispute (Process Flow Chart).pdf
Steps for CIAC Mediation Clients
Procedures Steps for CIAC Mediation Clients.pdf
 Resolution No. 01-2011
Limiting the Scope of CIAC Resolution No.10-
2010(Requiring Orientation on Mediation prior
to arbitration) to small claims.
 Philippine Institute of Construction Arbitrators
and Mediators, Inc. (PICAM)
Recommended that:
• parties in arbitration cases involving sums in dispute (CIDs)
of not more than P10 million, to attend to orientation on
mediation to be conducted by CIAC Officer-of-the-Month
prior to arbitration.

• To increase the threshold for small claims from P1 million to

P10 million in order to expand the coverage of cases that
would fall within the CIAC’s Small Claims Assistance
Program and thereby entitled, under Rule 20 of the CIAC
Rules, “ to special procedures of disposition and reduced
fees.” as well as to subsidized costs of hearing if held
outside of Metro Manila.
References
• https://ciap.dti.gov.ph
• Presidential Decree No. 1746
• REPUBLIC ACT NO. 9285
• Resolution No. 01-2011
• CIAC Revised Rules of Procedure Governing Construction Arbitration