Amendment to Sec. 16 of the Implementing Rules and Regulations of P.D. No. 1746

July 5, 2006

CIAP BOARD RESOLUTION NO. 10-06

AMENDING SECTION 16 OF THE IMPLEMENTING RULES AND REGULATIONS (IRR) OF P.D. 1746 ON MOTION DULY SECONDED

WHEREAS, Section 16 of the IRR of P.D. 1746 defines the powers, duties, and functions of the Construction Industry Arbitration Commission (CIAC) as follows:

a. Establish rules of procedures to provide a fair and expeditious settlement of construction disputes through a non-judicial process which ensures harmonious and friendly relationships between or among the parties; and

b. Provide for a program that would promote the utilization of arbitration as an alternative mode of settling construction-related disputes.

WHEREAS, under the foregoing provisions of the IRR of PD 1746, the adoption and implementation of different modes of alternative dispute resolution (ADR) to achieve one of the CIAP's objectives under PD 1746 for the "fair" and expeditious adjudication and settlement of claims and disputes in contract implementation" have been vested on the CIAC;

WHEREAS, pursuant thereto, the CIAC has established a mediation program alongside arbitration as an ADR mode for construction disputes;

WHEREAS, the passage of R.A. 9285 also known as the Alternative Dispute Resolution Act of 2004, has provided a renewed impetus to the development and promotion of various forms of ADR which include mediation and arbitration, among others;

WHEREAS, consistent with the letter and spirit of PD 1746 and its IRR and in line with the goals of RA 9285, the CIAC passed Resolution No. 06-2006, proposing amendments to Section 16 of the IRR of PD 1746, in order to expressly provide for mediation and other forms of ADR; and

WHEREAS, the Philippine Domestic Construction Board (PDCB), in its meeting held on 29 March 2006, after finding the CIAC's proposed amendments to be reasonable, proper, and necessary to forestall possible questions on the exercise by the CIAC of its functions related to mediation and other forms of ADR, passed PDCB Resolution No. 02, Series of 2006, recommending approval of the CIAC proposals by the CIAP Board; HEcaIC

NOW, THEREFORE, in consideration of the foregoing and after due deliberations in its 50th Regular Meeting, the Construction Industry Authority of the Philippines, by virtue of the powers vested in it by law, RESOLVES AS IT HEREBY RESOLVED, to amend Section 16 of the IRR of P.D. 1746 as proposed by the CIAC and recommended by the PDCB to read as follows:

"Section 16. Powers, Duties & Functions of CIAC — The Construction Industry Arbitration Commission (CIAC) shall exercise the powers, duties and functions provided for by Executive Order No. 1008, including but not limited to the following:

a. Establish rules of procedures to provide a fair and expeditious settlement of construction disputes through a non-judicial process which ensures harmonious and friendly relationships between or among the parties, which shall include arbitration, mediation and other alternative dispute (ADR) programs for the construction industry; and

b. provide for a program that would promote the utilization of ADR modes for settling construction-related disputes."

UNANIMOUSLY APPROVED.

Date Filed: 26 September 2006

Adopted: 05 July 2006

FOR THE CIAP BOARD:

 

(SGD.) UNDERSECRETARY ZENAIDA C. MAGLAYA(Representing DTI Secretary and CIAP Chairman Peter B. Favila)

Attested by:

 

(SGD.) KATHRYN JOSEPHINE T. DELA CRUZActing Board Secretary