CREATING THE CONSTRUCTION INDUSTRY AUTHORITY OF THE PHILIPPINES (CIAP)

WHEREAS, the construction industry constitutes an important
segment of the industrial sector and contributes significantly to the gross
national product of the Philippines;

WHEREAS, construction is now a major industry, accounting
for more than five hundred thousand workers and providing livelihood to more
than three million Filipinos;

WHEREAS, the construction industry has began to venture into
international markets, generating foreign exchange and providing greater
employment to Filipino workers;

WHEREAS, the orderly growth and development of the
construction industry and the upgrading of the capability of construction
contractors are in consonance with national interest and will benefit both
public and private sector;

WHEREAS, the continued growth and development of the
construction industry requires an increasing number of skilled construction
workers; and

WHEREAS, such growth and development have been hampered by
the lack of cohesive government policies and the absence of a central agency to
deal with the problems of the industry and to coordinate with other government
agencies on matters affecting the industry.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree the creation of the Construction Industry Authority of the
Philippines (C1AP) designed to promote, accelerate and regulate the growth and
development of the construction industry as follows:

SECTION 1. Composition. —There is hereby
established a Construction Industry Authority of the Philippines which shall be
composed of the Minister of Industry as Chairman, the Chairmen of the different
agencies under this Decree namely: the Philippine Contractors Accreditation
Board, the Philippine Overseas Construction Board, the Philippine Domestic
Construction Board, the Construction Manpower Development Foundation, the
President of the Philippine Contractors Association, and one representative of
the private construction sector to be appointed by the President, as members.
The chairman shall designate a Vice-Chairman from among the members.

SEC. 2. Powers and Objectives. —The Construction
Industry Authority of the Philippines shall promote, accelerate and regulate the
growth and development of the construction industry in conformity with national
goals.

Specifically, the Authority shall have the following powers and
objectives:

1. To evolve an overall strategy and exercise centralized authority for the
   optimum development of the construction industry;
2. To monitor and study the operations of the construction industry both here
   and abroad, to identify its needs, problems and opportunities and to recommend
   and/or implement policies, legislations, programs and measures to support the
   development of the industry;
3. To rationalize investments in the construction industry in accordance with
   national investment priorities and development needs;
4. To establish criteria for the classification and categorization of
   contractors which accurately reflect their contracting capacity and performance
   capability;
5. To enforce relevant and reasonable rules and requirements, as well as
   implement practicable and efficient procedures for pre-qualification of public
   projects;
6. To recommend and encourage the adoption of equitable and realistic contract
   conditions for construction;
7. To seek the adoption of credit and other financing policies necessary for
   sustaining the continued and orderly development of the construction industry
   and for supporting Filipino contractors particularly those involved in overseas
   construction;
8. To identify and recommend other incentives necessary to support overseas
   construction;
9. To establish procedures, guidelines and criteria for fair and expeditious
   adjudication and settlement of claims and disputes in contract implementation;
10. To promote construction manpower training to supplement the manpower
    training efforts of the private sector, through the centralization of
    programming and coordination of activities of all government agencies;
11. To establish a funding mechanism with the private sector to promote and
    develop the construction industry;
12. To perform such other functions necessary to achieve its
    objectives.

SEC. 3. Organization. —The Authority shall be
attached to the Ministry of Industry for policy and program coordination. It
shall exercise authority with respect to the government agencies that conduct
business with or exercise regulatory powers over the construction industry. It
shall exercise jurisdiction and supervision over the following agencies which
shall act as its implementing arms.

a. The Philippine Contractors Accreditation Board;
b. The Philippine
Overseas Construction Board;
c. The Philippine Domestic Construction
Board;
d. The Construction Manpower Development Foundation.

SEC. 4. The Philippine Contractors Accreditation
Board.—There is hereby created a Philippine Contractors Accreditation Board
under the jurisdiction and supervision of the Authority. The Philippine
Contractors Licensing Board is hereby abolished and all its funds and records
are hereby transferred to the Philippine Contractors Accreditation Board.

1. Composition. —The Board shall be composed of a Chairman and two (2)
   members to be appointed by the President upon recommendation of the Authority.
   The present Board of the Philippine Contractors Licensing Board shall continue
   to hold office as the Board of the Philippine Contractors Accreditation Board
   until their respective successors have been duly appointed.
2. Functions. —The Philippine Contractors Accreditation Board shall
   perform the present functions of the Philippine Contractors Licensing Board
   until such time as its other functions, powers and duties are issued by the
   Authority.

SEC. 5. The Philippine Overseas Construction
Board.— The Philippine Overseas Construction Board created under P.D. 1167,
as amended, is hereby placed under the jurisdiction and supervision of the
Authority. It shall continue to perform its present functions and shall perform
additional functions as may be assigned by the Authority.

SEC. 6. The Philippine Domestic Construction Board.
—There is hereby created a Philippine Domestic Construction Board under the
jurisdiction and supervision of the Authority.

1. Composition. —The Board shall be composed of a Chairman and four
   (4) members to be appointed by the President upon recommendation of the
   Authority.
2. Functions.—The Philippine Domestic Construction Board shall
   formulate, recommend and implement policies, guidelines, plans and programs for
   the efficient implementation of public and private construction in the country.
   Specifically, it shall:
   1. Formulate and recommend appropriate policies and guidelines for
      pre-qualification, bidding and contract award for public infrastructure
      projects;
   2. Monitor and evaluate information on the status of public construction
      projects as well as on the performance and contracting capacity of contractors
      engaged in such projects;
   3. Adjudicate and settle claims and disputes in the implementation of public
      construction contracts and for this purpose, formulate and adopt the necessary
      rules and regulations subject to the approval of the President;
   4. Formulate and recommend approximate and standardized contract
      terms/conditions and guidelines for determining contract price adjustments in
      private construction;
   5. Formulate and recommend rules and procedures for the adjudication and
      settlement of claims and disputes in the implementation of contracts in private
      construction;
   6. Perform such other functions as may be assigned by the Authority.

SEC. 7. The Construction Manpower Development
Foundation.─There is hereby created a Construction Manpower Development
Foundation which shall serve as the manpower development arm of the
Authority.

1. Composition.— The Foundation shall have a Board of Directors to be composed
   of a Chairman and four (4) members to be appointed by the Minister of Industry
   upon recommendation of the Authority.
2. Functions.— The Foundation shall perform the following functions:
   1. Draw up an overall construction manpower development plan and relevant
      strategies;
   2. Develop and implement manpower training programs for the construction
      industry;
   3. Formulate and adopt construction skills and standards and establish skills
      testing and certification facilities in coordination with the National Manpower
      and Youth Council;
   4. Recommend appropriate policies and measures to rationalize training and
      export of trained manpower in the construction industry in coordination with the
      Ministry of Labor and other pertinent government agencies;
   5. Develop a funding mechanism in cooperation with the construction industry to
      enable it to carry out its functions by collecting fees and undertaking income
      generating activities;
   6. Borrow from financing institutions to support its operations;
   7. Perform such other functions as may be assigned by the
      Authority

The Foundation shall coordinate its activities and work program with the
National Manpower and Youth Council, the Bureau of Employment Services of the
Ministry of Labor, the Philippine Overseas Construction Board and the Ministry
of Education and Culture.

SEC. 8. Executive Office.—The Authority shall have
an Executive Office headed by a full-time Executive Director to be appointed by
the Chairman.

The Executive Office shall maintain a technical, legal and management staff
to assist the Executive Director in the performance of these duties and
responsibilities.

The Executive Director shall report directly to the Authority on matters
pertaining to and/or concerning the Authority and shall be responsible for
monitoring and implementation of the policies and programs of the Authority,
particularly by the four (4) agencies of the Authority, for the purpose of
ensuring effectiveness and proper coordination.

The Philippine Contractors Accreditation Board, the Philippine Domestic
Construction Board and the Construction Manpower Development Foundation shall
establish their own Secretariats to service their respective Boards and to
assist the Authority in the execution of its functions and responsibilities,
subject to pertinent budgetary organization, compensation and civil service
rules and regulations. Each of the three (3) agency Secretariats shall be headed
by their respective Executive Officers to be appointed by the Chairman of the
Authority upon recommendation of their respective Boards. The Philippine
Overseas Construction Board shall continue to maintain its Executive Staff.

All relevant agencies of the government involved in the development and
promotion of the construction industry are hereby directed to coordinate with
the Authority in the execution of its functions.

SEC. 9. Compensation.—The Authority shall fix (a)
per diems of the Chairmen and the members of the different Boards of the
implementing agencies; and (b) the salaries and allowances of the Executive
Director, the staff of the Executive Office as well as the office of the
different Secretariats under the Authority, subject to pertinent budget,
compensation, organization and civil service rules and regulations.

SEC. 10. Meetings.—The Authority and the Boards of
the implementing agencies shall meet as often as is necessary but not less than
once a quarter. Special meetings may be called by the respective Chairmen. The
presence of the majority of the members of the Authority or the Boards of the
implementing agencies shall constitute a quorum.

SEC. 11. Rules and Regulations.—The Authority shall
issue such rules and regulations as may be necessary for the implementation of
the general provisions of this Decree.

SEC. 12. Funding.— The amount of five million pesos
(P5,000,000.00) is hereby authorized to be released from the Special Activities
Fund to cover the operating and capital expenses of the CIAP and its
implementing agencies for CY 1981, subject to Section 40 of P.D. No. 1177.

The Authority and its implementing agencies are hereby empowered to collect
fees and undertake income generating activities as may be necessary in the
execution of its functions and responsibilities. The Authority and its
implementing agencies are hereby authorized to use its income to finance its
operations, the provisions of law, to the contrary, notwithstanding.

SEC. 15. Effectivity Clause.—This Decree shall take
effect immediately.

Done in the City of Manila, this 28th day of November, in the year of Our
Lord nineteen hundred and eighty.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Presidential Assistant