Presented during the AMO Seminar of the

The PICE Makati Chapter

11-12 September 2012
Jade Valley Cantonese Cuisine, Timog, Quezon City

SONIA T. VALDEAVILLA, C.E.,DURP

POCB & PDCB Officer-in-Charge
Philippine
Overseas
Construction
Board

Presentation Outline
I. Construction Industry Authority of the
Philippines (CIAP)
II. Philippine Overseas Construction Board
(POCB)
III. Philippine Domestic Construction Board
(PDCB)

IV. Constructors Performance

System (CPES)

Evaluation
Philippine
Overseas
Construction
Board

DTI
CIAP

Constructio
n Industry
Arbitration
Commission
Construction
Contract
Dispute
Resolution

Philippine
Domestic
Construction
Board
Construction
Quality &
Efficiency
Improvement

Philippine
Contractors
Accreditation
Board

Philippine
Overseas
Construction
Board

Contractors
Licensing
and
Registration

Overseas
Contractors
Registration
& Devt

Philippine Construction Industry Authority

of the Philippines (CIAP)
MANDATE (R.A. 1746 as amended by E.Os. 679 & 768 - 28 Nov. 1980)
To evolve an overall strategy and exercise
centralized authority for the optimum development
of the construction industry;
To evolve an overall strategy and exercise
centralized authority for the optimum development
of the construction industry;
To establish a funding mechanism with the private
sector to promote and develop the construction
industry;
Philippine
Overseas
4
Construction
Board

Philippine Construction Industry Authority

of the Philippines (CIAP)
MANDATE (R.A. 1746 as amended by E.Os. 679 & 768 - 28 Nov. 1980)
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;
To perform such other functions necessary to
achieve its objectives
Philippine
Overseas
5
Construction
Board

Composition of CIAP Board

Chairman : Secretary of DTI
Members

Secretary of DPWH
Secretary of DOTC
Secretary of DOLE
Chairmen of PCAB, POCB, PDCB, and CMDF
President of the Phil. Constructors Association, Inc.
Representative of the private construction sector
Special Construction Industry Representative in
the Middle East (ex-officio member)
The Chairman shall designate a Vice Chairman
from among the Members
Philippine
Overseas
6
Construction
Board

PHILIPPINE
OVERSEAS
CONSTRUCTION
BOARD
(PD 1167 as amended by
PD 1657, 27 June 1977)

Promote Philippine Construction Contractors,

Consultants and Materials in the international market
Philippine
Overseas
7
Construction
Board

POCB Board
Chairman :

Isidro A. Consunji

Members :

William U. Christopher Liu, Jr.

Michael Roberto P. Reyes

Francisco Gonzalez, Jr.

Oscar Mercado

Term: 3 years to expire on August 15, 2011

Philippine
Overseas
8
Construction
Board

POCB MANDATE
Develop the Phil. Overseas Construction Industry

Regulate and control the participation of

construction contractors and consultants
(including general engineering/building and
specialty contractors, construction management,
engineering and specialized consultancy group) in
overseas construction projects
Administer the grant of incentives for under PD
1167
Philippine
Overseas
9
Construction
Board

Powers
Functions
of the Board
POCB &
Programs
& Projects
A. Develop the Phil. Overseas Const. Industry
Identify projects, and countries where Phil. contractors and
consultants may operate ;
Recommend, participate in the negotiation of bi-lateral and multilateral arrangements that would facilitate the entry of contractors/
consultants in overseas markets & protect the interests of Filipino
contractors and workers operating overseas; and
Formulate, implement or cause the implementation of a scheme or
arrangement for the protection of Filipino contractors from noncommercial risks with respect to their assets, equipment & other
property held overseas
Philippine
Overseas
10
Construction
Board

Powers
Functions
of the Board
POCB &
Programs
& Projects
B. Regulate
Register Filipino contractors and consultants who will
undertake projects overseas;
Determine who among the interested construction
contractors/consultants will be allowed to bid for overseas
projects;
Authorize the exportation of construction materials and
equipment (never been implemented); and

Cancel, suspend registration and enjoyment of incentives or

other benefits including the imposition of penalties
Philippine
Overseas
11
Construction
Board

Powers
Functions
of the Board
POCB &
Programs
& Projects
C. Control
Check, verify and evaluate the performance of construction
contractors and consultants engaged in overseas projects;
Check, verify the books, requires submission of regular reports
or by some other method deemed most effective;
Obtain, collate and evaluate information necessary for effective
discharge of its primary purpose and proper exercise of its
powers and functions

Philippine
Overseas
12
Construction
Board

Powers
Functions
of the Board
POCB &
Programs
& Projects
D. Administration of Incentives

Determine who will avail of and eligible for

incentives (no incentives administered since the
package of incentives were withdrawn under E.O. No.
93 on 17 December 1986)
i. Assistance/endorsement to PhilExim for guarantee assistance
ii. Special window at POEA for mobilization of workers
iii.Assistance in checking the credentials of prospective foreign
clients or partners
iv.Inclusion in the mailing list for Prospects which give
information on project opprtunities in the overseas
13

Philippine
Overseas
Construction
Board

I. Market Development
II. International Project Monitoring
III. Registration and Incentives

Philippine
Overseas
14
Construction
Board

POCB Registration, Renewal, and

Project Authorization

Philippine
Overseas
Construction
Board

General Classification of POCB Registered Companies

1. Construction Companies

General construction contractor

Specialty contractor

Service contractor
2. Specialized Consultancy Groups

Philippine
Overseas
Construction
Board

Requirements :

General construction contractor

Current PCAB License (category AA or higher );

Classification of general Building & General Engineering;

One (1) key technical staff employed by the applicant for

not less than one (1) year at the time of filing the
application;
Five (5) years of continuous actual operation as a
licensed contractor counted from the date of earliest
contract;
Must have completed during the immediate past five (5)
years a project at least one (1) general
engineering/building costing at least 10M pesos
Philippine
Overseas
Construction
Board

Requirements :

Specialty contractor

Current PCAB License (category A or higher ) and a

classification relevant to the specialization being applied
for;
One (1) key technical staff employed by the applicant for
not less than one (1) year at the time of filing the
application;
Five (5) years of continuous actual operation as a licensed
contractor counted from the date of earliest contract;
Must have completed during the immediate past five (5)
years one (1) project falling within its field(s) of
specialization costing not less than P5 M;
Philippine
Overseas
Construction
Board

Requirements :

Service contractor

Current PCAB License (category A or higher );

One (1) key technical staff employed by the applicant
for not less than one (1) year at the time of filing the
application;
Five (5) years of continuous actual operation as a
licensed contractor counted from the date of earliest
contract;
Substantial experience in the overseas as a labor subcontractor or manpower service contractor;
Have remitted substantial amount of foreign exchange
Philippine
Overseas
Construction
Board

Requirements :

Specialized Consultancy Groups

Minimum paid-in capital and networth of two hundred

fifty thousand pesos (P250T);

At least three (3) permanently employed staff with

appropriate degrees and professional training along the
line of consultancy services offered by the company;
One of the staff must have been actively engaged in the
practice of his profession for at least ten (10) years;

One of the staff must have been employed by the

company for not less that one (1) year at the time of
filling the application;

Philippine
Overseas
Construction
Board

Requirements :

Specialized Consultancy Groups

Five (5) years of continuous actual operation as a

specialized consultancy company counted from the
date of earliest contract;
Must have completed during the immediate past
five (5) years
One (1) consultancy project costing not less than P1
M;

Philippine
Overseas
Construction
Board

Registration Validity and Fees

Type of
Application

Validity

Amount of
Fees (Pesos)

New
Registration

2 years

20,000.00

Renewal

2 years

10,000.00

Contract
completion

None

Proj.
Authorization

Philippine
Overseas
Construction
Board

Philippine
Overseas
Construction
Board

PHILIPPINE DOMESTIC
CONSTRUCTION BOARD (PDCB)
PD 1746

Philippine
Overseas
Construction
Board

The PDCB Board

Chairman: Atty. Ramon P. Ereneta, Jr.

Members : Engr. Rogelio C. Lombos
Engr. Anthony L. Fernandez
Atty. Romeo C. Lagman
Vacant

Chairman and Four (4) Members

- appointed by the President upon recommendations of the CIAP
No specified tenure of Office
Philippine
Overseas
Construction
Board

MANDATES
1. To enforce relevant and reasonable rules and
requirements, as well as implement practicable
and efficient procedures for prequalification of
public projects;
2. To recommend and encourage the adoption of
equivalent and realistic contract conditions for
construction; and
3. To establish procedures, guidelines and criteria
for fair and expeditious adjudication and
settlement of claims and disputes in contract
implementation.
Philippine
Overseas
Construction
Board

Functions of the Board

To formulate, recommend and implement
policies, guidelines, plans and programs for the
efficient implementation of public and private
construction in the country, specifically:
1. appropriate policies and guidelines for
prequalification, bidding and contract award
of public infrastructure projects;

2. Monitor and evaluate information on the

status of public construction projects;
performance and contracting capacity of
contractors engaged in such projects;
Philippine
Overseas
Construction
Board

Functions of the Board

3. approximate and standardized contract
terms/conditions
and
guidelines
for
determining contract price adjustments in
private construction;
4. 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.
Philippine
Overseas
Construction
Board

Functions of the Board

5. for the adjudication and settlement of
claims and disputes in the implementation
of contracts in private construction; and
6. Perform such other functions as may be
assigned by the Authority.

Philippine
Overseas
Construction
Board

PDCB Programs
1) Policy Formulation & Monitoring
2) Arbitration & Adjudication Program
(performed by the Construction Industry
Arbitration Commission (CIAC)

Philippine
Overseas
Construction
Board

PDCB Programs
Construction
Industry
Arbitration
Commission (CIAC) created under Exec.
Order No. 1008
Construction Industry Arbitration Law
signed by Pres. F. Marcos on Feb. 4, 1985

PDCB maintains administrative supervision

over the CIAC .
Philippine
Overseas
Construction
Board

PDCB Programs
3. Supervise the implementation of
Constructors Performance Evaluation System
(CPES)
- Accreditation of CPES evaluators;
- Maintain data bank on the performance of
constructors in government projects; and
- Continuous improvement of the CPES
guidelines
4. Consolidate and Submit Monthly Report on
Blacklisted Contractors to the GPPB

Philippine
Overseas
Construction
Board

CPES

OVERVIEW

C
P
E
S

L
O

G
O

CONSTRUCTORS PERFORMANCE EVALUATION

SYSTEM (CPES)

A system of grading the

performance of a constructor in a
specific kind of project using a set
of criteria

LEGAL BASIS FOR CPES

IMPLEMENTATION
Section 12 of Annex E of the Implementing Rules
and Regulations (IRR) of R.A. 9184
(The Government Procurement Reform Act)

All procuring entities implementing infrastructure

projects are mandated to evaluate the performance of
their contractors using the NEDA-Approved CPES
Guidelines regardless of contract amount and funding
source. CPES shall be done during construction and
upon completion of each government project.

LEGAL BASIS FOR CPES

IMPLEMENTATION
Section 12 of Annex E of the Implementing Rules
and Regulations (IRR) of R.A. 9184
(The Government Procurement Reform Act)

Section 12, likewise, requires all procuring

entities to include in their Projects Engineering
and Administrative Overhead Cost, the budget
for CPES implementation pursuant to NEDA
Board Resolution No. 18 s. 2002

CPES VISION
To achieve an improved contractors
performance in government and private
construction contracts in the domestic and
overseas markets
leading to better consumer protection
and satisfaction
higher competitive ground for the
Philippine construction industry
set the stage for the entry of Filipino
constructors to global competition

CPES MISSION
Implement Contractors
Performance Evaluation
System (CPES) in all
Construction Projects (public
& private)
Maintain Contractors Performance
Information System

CPES OBJECTIVES
to establish a uniform set of criteria for
rating the performance of constructors;
to develop a centralized base of information
on performance rating of constructors for
purposes of prequalification, quality
improvement, etc.;
to contribute in ensuring that the projects
are undertaken in conformity with the
owners specified requirements

WHO ARE COVERED BY CPES

All licensed constructors undertaking infrastructure
projects in the Philippines
Local constructors (100% Filipino, max. 40%
foreign equity
Foreign constructors (100% Foreign, >40%
foreign equity)
Joint venture or consortium of Filipino and
Foreign

CPES PLAYERS
Implementing Agency (National, LGUs, State

Universities or Colleges, GOCCs, etc.)

* CPES Implementing Unit

Constructors

Government Procurement Policy Board (GPPB)

Philippine Domestic Construction Board
General Public

Options

Group or
Team

In-house
CPE

Third Party CPE

Combination of InHouse and Third

Party CPE

One (1) CPE

occupying
supervisory
position who shall
act as the CPE
leader.
One (1) or more
CPE/s as
members.

Two (2) or more

CPEs from other
agencies and not
directly involved
in the project to
be evaluated.

One (1) CPE

occupying
supervisory position.
One (1) or more
CPE/s from other
agencies, and not
directly involved
with the project to be
evaluated.
Philippine
Overseas
Construction
Board

Options

Individual

In-house
CPE

Third Party
CPE

Combination of InHouse and 3rd Party

CPE
(1) CPE not
One (1) CPE Individual One (1)
directly involved from other
CPE not directly
with the project. agencies, and involved with the
One
not directly
project.
involved with
the project to
be evaluated.

The resource persons/witnesses, who have no voting power

Philippine
Overseas
Construction
Board

 To provide the CPES evaluators with the documents

necessary in evaluating the contractors performance
(contract docs, implementing plans & schedules, materials
test reports, etc.)
To assign qualified technical person/s to go with the
CPES Team during project evaluation to serve as guide
and answer or clarify matters required by to the
evaluating team; and

To be present or assign his representative

in the meetings (pre-evaluation and exit
conferences) of the CPES evaluators

DATE
FORMULATED

TYPE OF PROJECT

30 January 1998 Roads, Bridges, Housing, Buildings,

Ports and Harbors
20 July
2000
Irrigation and Flood Control
20 July
2000 2002 Telecommunications
25 January
27 August 2008 Transmission and Distribution
13 Sept. 2011
Checklist for Diesel Power Plant and
25 January
Mooring Facilities for Power Barges
2002
(NAPOCOR)
In process
Checklist for linear park & phyto-

1. Department of Public Works and Highways (DPWH)

2. Department of Transportation & Communications

(DOTC)
3. National Housing Authority (NHA)
4. Local Waterworks Authority
5. Department of Education (DepEd)
6. National Irrigation Administration (NIA)
7. Department of Health (DOH)
8. Department of Science and Technology (DOST)

9. Philippine Ports Authority (PPA)

10. Philippine Tourism Authority (PTA)

11. Public Estates Authority (PEA) now PRA

12. Pasig River Rehabilitation Commission (PRRC)

13. Metropolitan Authority (SBMA)

14. Bases Conversion Development Authority (BCDA)

15. National Transmission Corporation (Transco)

16. Bangko Sentral ng Pilipinas (BSP)

17. Development Bank of the Philippines (DBP)

18. Philippine National Oil Corporation Energy
Development Company (PNOC-EDC)
19. University of the Philippines (UP)
20. Polytechnic University of the Philippines (PUP)
21. Supreme Court of the Philippines

22. North Luzon Railway Corporation (NORTHRAIL)

23. Provincial Office of Bukidnon (LGU)
24. Provincial Office of Guimaras (LGU)
25. National Power Corporation (NAPOCOR)
26. Construction Industry Authority of the Philippines
(CIAP)

1. Physically fit to do field work;

2. Good moral character and have not been
involved of a crime involving moral
turpitude
3. PRC licensed Engineer or /Architect;
4. Minimum of five (5) years experience in
actual project implementation

5. Photo copy of service record or

certificate of employment

6. Certificate of Attendance in seminars,

trainings or formal studies in any of the
following:
a. Quality control/assurance
b. Materials testing

c. Project implementation, management,

supervision and monitoring
d. Health & safety in Construction
e. Environmental protection & management
f. Other construction related courses

7. Completion of the 3-day CPES Accreditation

Seminar-Workshop and passing the case study;
8. Endorsement letter from the Head of Agency or
his duly Authorized Representative and the IU
Head;
9. Details of work experiences (name of projects
supervised, duration, location, and project owner,
office work experiences related to construction
project implementation such as : drafting, project
planning and conceptualization, AutoCAD, BAC
functions,and other relevant duties and functions
(Form C)

AGENCY

1. Bases Conversion Development Authority (BCDA)

2. Construction Industry Authority of the Philippines (CIAP)

Accredited
Evaluators

17
7

3. Department of Agriculture (DA)

17

4. Department of Education (DepEd)

65

5. Department of Health (DOH)

22

6. Department of Public Works & Highways (DPWH)

173

7. Department of Transportation & Communications (DOTC)

32

8. Department of Science and Technology (DOST)

13

9. Development Bank of the Philippines (DBP)

22
Philippine
Overseas
Construction
Board

AGENCY

10. Local Water Utilities Administration (LWUA)

Accredited
Evaluators

11. National Housing Authority (NHA)

56

12. National Irrigation Administration (NIA)

92

13. National Transmission Corporation (TRANSCO)

19

14. North Luzon Railway Corp. (NORTHRAIL)

20

15. Pasig River Rehabilitation Commission (PRRC)

24

16. Philippine National Oil Commission (PNOC-EDC)

16

17. Philippine Ports Authority (PPA)

75

18. Philippine Tourism Authority (PTA) or TIEZA

Philippine
Overseas
Construction
Board

AGENCY

Accredited
Evaluators

19. Polytechnic University of the Philippines (PUP)

20. Public Estates Authority (PEA) or PRA

21. Subic Bay Metropolitan Authority (SBMA)

22. Supreme Court of the Philippines (SCP)

18
6

23. University of the Philippines System (UP-System)

32

24. National Power Corporation (NPC)

18

25. Provincial Office of Guimaras (LGU)

26. Provincial Office of Bukidnon (LGU)

31

Total (As of August 2011)

Philippine
Overseas
Construction
Board

805

AS OF AUGUST 2011

PARTICULARS

Number

Percent

Active Evaluators

458

57

Inactive Evaluators

239

30

Evaluators
Separated from the
service

108

13

Philippine
Overseas
Construction
Board

Status of CPES Implementation

14

Agencies already implementing CPES

LGUs implementing CPES

12

Agencies ready to implement CPES

14

Agencies who signified intention to implement

CPES

CPES RATING
The qualitative description and numerical value of the
results of evaluation on the performance of
contractors applying the CPES
It is the result of consolidating or adding the
corresponding points given to the items of works as
per applicable guidelines of the CPES.
Rating is done at least twice, 1) during construction
when the projects is at least 30% accomplished, and
2) upon completion or when the project is 100%
completed

Qualitative
Description
Outstanding
Very Satisfactory

Numerical
Rating
> 96%
> 89% < 96 %

Satisfactory
Unsatisfactory

> 82% < 89 %

> 75% < 82 %

Poor

< 75%
DC during construction

UC - upon completion

a. Eligibility Check of Constructors (at least

satisfactory);
b. Agency Shortlist for Negotiated Procurement
under Section 53 (a), (b), (c), & (d) of the IRR of
RA 9184 (at least satisfactory);
c. Post-Qualification - for the review of the
constructors technical capabilities pursuant to
Section 34.2b of the IRR-A of RA 9184 to ensure
that:
* The constructor has no zero (0) rating for
Time for on-going projects; and

d. Awarding of Contracts (no rating lower than

satisfactory );
e. Project Monitoring and Control Audit and
Quality Control of Construction Projects;
f. Blacklisting of Constructors - a constructor
with a CPES final rating of Poor or
Unsatisfactory in any of his projects shall be
blacklisted by the agency and will not be
allowed to participate in any public bidding for
any government project for one year for the
first offense, and suspension for two (2) years,

g. Reference for Policy Formulation/Review;

h. Granting of Awards & Recognition (for
outstanding rating) ;
i. PCAB Registration and Classification
(unsatisfactory rating may be a ground to
deny the classification applied for); and
j. Adopting measures to further improve the
performance of constructors in
undertaking government and private
projects

CPES BENEFITS to the

CONSTRUCTION INDUSTRY
Serves as an effective tool for monitoring,
technical audit, quality control and assurance,
project inspection and contract management of
construction projects;
Improved quality and timely completion of
projects
A tool for weeding out incompetent constructors
in qualification process;
Improved capability of constructors to
implement projects

Philippine
Overseas
Construction
Board

CPES BENEFITS to the

CONSTRUCTION INDUSTRY
Improved compliance of constructors to
environment, safety, and health programs
to address related concerns;
Contribute in minimizing graft &
corruption in implementing
infrastructure projects; and
Improve quality of infrastructure projects
in the long run

Philippine
Overseas
Construction
Board

Data Banking of CPES Reports

PDCB consolidates CPES Reports submitted by the
different implementing agencies;
Data bank contains info on CPES Rating of
contractors on a particular project subjected to
CPES evaluation;
Consolidated report release quarterly are published
in the GPPB website at:
http://www.gppb.gov.ph

Philippine
Overseas
Construction
Board

HAITI Presidential Palace

before the earthquake (2010)

HAITI Presidential Palace

after the earthquake

E
F

O
R
E
A
F

T
E

Philippine
Overseas
70
Construction
Board

Philippine
Overseas
71
Construction
Board

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Overseas
72
Construction
Board

Philippine
Overseas
73
Construction
Board