Supreme Court E-Library
Information At Your Fingertips

  View printer friendly version

1
General

The Implementing Rules and Regulations of P.D. No. 1594, governing infrastructure contracts provide for registration and classification of contractors which shall be undertaken by an Inter-Agency Committee composed of representatives from the different designated government agencies/offices.

Registration and classification of contractors by the Inter-Agency Committee shall substantially reduce registration requirements through the use of uniform guidelines and criteria, provide quick access to updated records of contractors, and avoid possible irregularities attributed to multiple/inconsistent registration.

The Inter-Agency Committee shall formulate uniform guidelines, criteria and procedures for the classification of contractors to be adopted by all offices/agencies/corporations concerned.

2
Definition of Terms

2.1 Infrastructure Projects – refers to construction, improvement or rehabilitation of roads and highways, airports and air navigation facilities, railways, ports, flood control and drainage, water supply and sewerage, irrigation system, dams, buildings, communication facilities, dredging and reclamation, power generating plants, power transmission and distribution facilities and other related construction projects that form part of the government capital investment.

2.2 Filipino Contractor – refers to a Filipino citizen, partnership or corporation duly organized and licensed under the laws of the Philippines and at least seventy five percent (75%) of the capital stock of which belongs to Filipino citizens.

2.3 Inter-Agency Committee – refers to the Committee, composed of representatives from the different designated government agencies/offices, created under Section IB 1.5 of the Implementing Rules and Regulations of P.D. No. 1594, as amended to classify, register and predisqualify contractors.

2.4 IAC-Category – refers to the size of a contractor classified as small, medium and large.

2.5 IAC-Classification – refers to the types or classes of projects such as roads, buildings, etc.

3
Who May Apply for
IAC Registration

The following may apply for registration as contractor with the Inter-Agency Committee:

3.1 Filipino contractors as defined under Section 2.2 above:

1. Citizens in the case of single proprietorship.
   
   
2. Partnership or corporation duly organized under the laws of the Philippines, and at least seventy five percent (75%) of the capital stock of which belongs to Filipino citizens.

3.2 Contractors forming themselves into a joint venture, i.e., a group of two or more contractors that intend to be jointly and severally responsible for a particular contract, which shall for purposes of bidding/tendering comply with LOI No. 630, and currently and properly accredited by the Philippine Contractors Accreditation Board in pursuance to the provision of Article IX, Section 38 of R.A. No. 4566.

3.3 Foreign contractors, who are duly licensed by the Philippine Contractors Accreditation Board, may apply for registration for internationally bid foreign-assisted projects under the same procedures and/or in accordance with procedures established by, and agreed upon with, the lending/financing institution.

4
IAC Registration System

4.1 General – The IAC Registration involves the screening of the qualifications of prospective contractors for government infrastructure projects to determine their general ability to undertake different types and sizes of projects without referring to any specific contract.

4.2 IAC Classification of Projects – Government infrastructure projects for purposes of registration shall be classified as follows:

IAC CLASSIFICATION OF PROJECTS		COVERAGE		MAJOR AGENCIES INVOLVED
I. General Engineering
A. Road, Highway, pavement, Railways, Airport horizontal structures and Bridges		Roads:
		All types including national, provincial, city. Municipal, and barangay roads and related structures		PNR, LRTA
		Railways:
		All types
		Airport Horizontal Structures: Runways, taxiways, apron, stopways, other aircraft movement areas and related structures		DPWH, DOTC
		Bridges and Similar Structures: All types of bridges, interchanges, viaducts, and related structures		DPWH
B. Irrigation and Flood Control		Flood Control and Drainage: River control including dikes and revetments, channel improvement, drainage systems, pumping stations and related structures		DPWH
		Irrigation Systems: Irrigation canals, canal structures, drainage, pumping stations and related structures		NIA, DPWH
C. Dam, Reservoir and Tunneling		Dams: Reservoirs, storage/diversion dams and related structures		NIA, NPC, MWSS, DPWH
		Tunneling: Diversion Tunnels		NIA, NPC, MWSS, DPWH
		Power Generating Plants: Hydroelectric plants and related structures		NPC, NEA
D. Water Supply		Water Supply: Wells, developed springs, and other source development works, distribution systems and related structures		DPWH, MWSS, LWUA
E. Port, Harbor and Offshore Engineering		Ports: Piers, wharves, causeways, and related structures		PPA, DPWH
		Dredging and Reclamation: Harbor dredging, reclamation, rockworks and related structures		DPWH, PPA, PEA
II. General Building
A. Building and Industrial Plant		Air Navigation Facilities: Air traffic control facilities (Area approach and aerodome) and other related structures		NAIA, DOTC
		Power Generating Plants: Thermal (oil, coal, etc.), geothermal plants and related structures		NPC, NEA
		Power Transmission and Distribution: Poles, towers, substations and related structures		NPC. NEA
		Buildings: All types including school buildings, hospitals, airport terminal buildings, post offices, market, housing, multi-storey buildings and related structures		DPWH, DOTC, NHA
		Communication Facilities: Antennae, towers, telephone exchanges and related structures		DOTC, DPWH, PPA, PAGASA
B. Sewerage and Sewage Treatment/Disposal Plant		Sewerage: Sewerage systems, treatment plants, and related structures		MWSS, LWUA
C. Water Treatment Plant and System		Water Supply: Water pumping stations, elevated water tanks, filtration plants, and related structures		MWSS, LWUA, DPWH
D. Park, Playground and Recreational Work		Others: Parks playground, landscaping, monuments and similar structures		DPWH, LGUs
III. Specialties
A. Foundation Work
B. Structural Steel Work
C. Concrete Pre-casting and prestressing
D. Plumbing and Sanitary Work		Water Supply: Pumping, filtration and treatment plant equipment installation and distribution systems		WSS, LWUA, DPWH
		Sewerage: Sewerage systems and treatment plant equipment installation		MWSS, LWUA
E. Electrical Work		Electrical Installation:
		Power Generating Plants: Electromechanical works		NPC, NEA
		Power transmission and Distribution: High voltage lines and sub-station equipment installation		NPC, NEA
F. Mechanical Work		Mechanical Installation:
		Power Generating Plants: Electromechanical works		NPC, NEA
G. Air Conditioning and Refrigeration Work
H. Elevator and Escalator Work
I. Fire Protection Work
J. Waterproofing Work
K. Painting Work
L. Well Drilling Work		Water Supply: Wells, developed springs and other source development works		MWSS, LWUA, DPWH
M. Navigation Equipment and Instrument Installation		Air Navigation Facilities: Very high frequency omnirange/distance measuring equipment, non-directional beams, radio detector and ranging (radar) instrument landing systems installation		DOTC, DPWH, PPA, PAGASA
N. Communication Equipment and Instrument Installation		Communication Facilities: Landlines, cables, and other communication equipment and instrument installation		DOTC, DPWH, PPA, PAGASA

The Inter-Agency Committee may add, delete, modify, and/or alter the foregoing Classifications, whenever deemed necessary by the Committee to render them more relevant and responsive to prevailing conditions.

4.3 IAC Categorization of Contractors – For each of the above types or classes of projects, a contractor shall be categorized on the basis of its evaluated capability to carry out contracts of different costs, as follows:

IAC CATEGORY OF CONTRACTORS		ALLOWABLE RANGE OF CONTRACT COSTS
Small
	Sub-Category A	Less than or equal to P 0.5M
	Sub-Category B	Less than or equal to P 3.0M
Medium
	Sub-Category A	Above P 3.0M up to P 15.0M
	Sub-Category B	Above P 3.0M up to P 30.0M
Large
	Sub-Category A	Above P 3.0M up to P 50.0M
	Sub-Category B	Above P 3.0M

4.4 Validity of Certificate of Registration

	4.4.1	Regular IAC certificate of registration:  A Filipino contractor as defined in Sec. 3.1 hereof which has been duly registered by the Committee shall be issued a regular Certificate of Registration valid for a period of three (3) years from the date of its issuance.  The contractor may submit a request for upgrading of its IAC Category and/or for additional IAC Classification at any time during the validity of the said certificate of registration.
	4.4.2	Special IAC Certificate of Registration: Contractors forming themselves into a Joint Venture as well as Foreign Contractors duly registered by the Committee to bid/undertake a specific project as provided for in Secs. 3.2 and 3.3 hereof shall be issued a Special Certificate of Registration valid for a period of three (3) years from the date of its issuance, or for the entire duration of the specific project/undertaking, whichever is shorter. The Special Certificate of Registration must be renewed after three (3) years from the date of its issuance until the specific project/undertaking for which it was issued has been finally completed.
	4.4.3	Monitoring of the registered contractor’s capability. The Inter-Agency Committee shall monitor the capability of the contractor according to its present Category and Classification and shall downgrade its Category and/or cancel any of its IAC Classification if it fails to sustain the prescribed minimum requirements for such Category and Classification at any time during the validity of its Certificate of Registration. Failure on the part of IAC Registered Contractors to renew their Contractors License as well as failure to sustain the minimum qualification requirements for registration shall be grounds for the automatic suspension of the Contractor’s Certificate of Registration with the Inter-Agency Committee.
	4.4.4	Eligibility for pre-qualification. A duly registered contractor shall be deemed eligible for pre-qualification by any tendering agency involved, for any project subject to the limitations of the classification and category as provided in the Contractor’s Certificate of Registration.

5
Criteria for Registration

5.1 Legal Qualification – To be legally qualified for registration with the Inter-Agency Committee, a contractor must meet all of the following requirements:

	5.1.1	Possession of a valid Contractor’s License for the current year pursuant to R.A. 4566;
	5.1.2	For a joint venture, a subscribed joint venture agreement making the parties jointly and severally liable for a particular contract and compliance with LOI 630 (at least 75% Filipino capital);
	5.1.3	Also for a joint venture, a separate Joint Venture License per R.A. 4566 on a project to project basis; and
	5.1.4	In the case of foreign contractors, who satisfy the conditions stated in Section 3.3 above, a special license duly issued by the Philippine Contractors Accreditation Board for a particular project and a certificate as bonafide contractor in their own country duly authenticated by their respective embassies/consulates.

5.2 Contractor’s License Category – The IAC Category of a contractor shall take into account the contractor’s License Category as determined by the Philippine Contractors Accreditation Board based on capital/networth, actual experience of sustaining technical employees, net book value of equipment, number of years in actual construction operation and annual turnover volume.  The lowest License Category required to qualify for each IAC Category as provided for in Sec. 4.3 above shall be as follows:

IAC CATEGORY		LOWEST LICENSE CATEGORY
Small
	Sub-Category A	Trade
	Sub-Category B	D and C
Medium
	Sub-Category A	B
	Sub-Category B	A
Large
	Sub-Category A	AA
	Sub-Category B	AAA

5.3 Track Record

5.3.1 Experience.  The IAC Category of a contractor shall likewise take into account its actual construction experience, in the government and private sectors, over the last fifteen years, as indicated by the present value of the single largest relevant project it has satisfactorily completed

The minimum track record required to qualify for each IAC Category as provided for in Section 4.3 above shall be as follows:

	5.3.1	Experience.  The IAC Category of a contractor shall likewise take into account its actual construction experience, in the government and private sectors, over the last fifteen years, as indicated by the present value of the single largest relevant project it has satisfactorily completed
		The minimum track record required to qualify for each IAC Category as provided for in Section 4.3 above shall be as follows:
		IAC CATEGORY OF CONTRACTORS		PRESENT VALUE OF SINGLE LARGEST RELEVANT PROJECT COMPLETED WITHIN THE LAST FIFTEEN (15) YEARS
		Small
			Sub-Category A	Less than or equal to P500,000
			Sub-Category B	Less than or equal to P 1.5M
		Medium
			Sub-Category A	Above P 1.5M up to P 7.5M
			Sub-Category B	Above P 7.5M up to P15.0M
		Large
			Sub-Category A	Above P15.0M up to P25M
			Sub-Category B	Above P25M
	5.3.2	The Category of a contractor according to the above criteria shall be governed by the range of requirements that it meets. Thus, where a contractor meets the Track Record requirements for “medium” but is found to meet only the License Category requirement for “small” the contractor will be categorized as “small” until such time that it submits enough evidence to warrant upgrading.

5.4 Performance Records – Commission by the contractor of any act or omission which constitutes a cause for disciplinary action as provided for in Sec. 8.1 hereof shall be a ground for the Inter-Agency Committee to deny the registration or renewal or registration of said contractor.

6
Invitation for Registration
of Contractors

At least once a year, the Committee shall advertise, in at least two newspapers of general circulation, an invitation for registration to interested contractors.

7
Technical Working Group

A separate Technical Working Group shall be created at the PCAB Secretariat to assist the Committee in the performance of its functions.

The Technical Working Group shall be composed of civil engineers, lawyers, mechanical/electrical engineers, and financial analysts plus administrative support, who must possess the necessary working knowledge.  It shall be responsible for the processing, evaluation, preparation, and issuance of necessary documents relative tot the contractor’s application for registration.  It shall also undertake investigation/verification of information and documents as well as physical inspection of proejcts undertaken/completed by registered contractors and safekeeping of records.

8
Disciplinary Action/Administrative Sanction

8.1 Causes/Grounds for Disciplinary Action – Any of the following acts or omissions shall constitute as ground/cause for the suspension or revocation of registration of an IAC-Registered Contractor:

	8.1.1	Misrepresentation of a material and substantial fact and/or submission of spurious documents in obtaining his Certificate of Registration and Classification from, and in any application or representation with, the Inter-Agency Committee;
	8.1.2	Malpractice in the course of operation/business which shall consist of any or all of the following:
		8.1.2.1 Willful and deliberate abandonment, without just excuse, of any government construction project engaged in or undertaken by the contractor;
		8.1.2.2 Willful material and substantial departure from or disregard of plans and/or specifications of government construction project without the consent of the government agency or instrumentality concerned which is entitled to have the particular construction project completed in accordance with such plans and/or specifications or duly authorized representations causing prejudice to the government;
	8.1.3	Any finding of an act or omission committed in violation of the provisions of P.D. 1594 and its Implementing Rules and Regulations, based on a verified complaint filed by a tendering agency.
	8.1.4	Active participation in the performance by any person, natural or juridical, of any act or omission constituting a cause for disciplinary action.

8.2 Procedure

	8.2.1	Jurisdiction. The imposition of a disciplinary action for any of the above grounds shall be commenced either by a charge made by the committee itself, motu proprio, or by a complaint filed by a government tendering agency.
	8.2.2	Prescription. Any charge or complaint shall be filed or proceedings initiated within two (2) years from discovery of the commission of any of the above grounds for disciplinary action.
	8.2.3	Charge or Complaint. The charge made by the Committee, motu proprio, shall set forth in clear and concise manner the bases therefore.

The complaint made by a government tendering agency shall be made in writing and under oath and must be filed in triplicate with the Secretariat.  It shall set forth clearly, distinctly and concisely the ground therefor, and shall be accompanied by a supporting affidavit or material evidence, if any.

	8.2.4	Referral to PCAB for further proceedings. The charge or complaint shall be referred, and all documents, submitted appertaining thereto forwarded, by the Committee to the Philippine contractors Accreditation Board (PCAB) and the latter shall take charge of the investigation/proceedings on the matter.
	8.2.5	Decision. The decision of the Philippine Contractors Accreditation Board on the case shall be taken by the Committee as basis for formulating its own action.

9
Applicability

These Revised Guidelines shall apply to all contracts for infrastructure and other construction projects of all government agencies and instrumentalities, including government-owned and controlled corporations (GOCCs).

10
Effectivity

These Revised Guidelines shall take effect fifteen (15) days after publication in two newspaper of general circulation.

11
Transitory Provisions

11.1  Applications filed with and received by the Inter-Agency Committee prior to the effectivity of the Revised Guidelines shall be evaluated on the basis of the old IAC Guidelines.  The IAC Category/Classification granted to contractors registered under the old IAC Guidelines shall remain valid until expiration unless the contractor voluntary applies for upgrading of IAC Category, or additional IAC Classification, or renewal of IAC Registration, in which case, the requirements of the Revised IAC Guidelines shall apply.

11.2  The Revised Guidelines for Registration and Classification of Contractors shall be implemented starting on the date of effectivity for all applicants for IAC Registration, upgrading of IAC Category, additional IAC Classification and renewal of IAC Registration filed with and received by the Inter-Agency Committee on that date and thereafter.

Adopted by the Inter-Agency Committee for Registration of Contractors this 1st day of March, 1991.

Adopted: 1 Mar. 1991

(SGD.) ANTON C. KHO Chairman	(SGD.) JOSE F. MABANTA Member
(SGD.) MARIO J. PADILLA Member	(SGD.) JOSE R. VALDECANAS Member
(SGD.) AUGUSTO B. SANTOS Member