Imposing Stiffer Penalty on Projects Implemented while Contractor's License is Under Preventive Suspension

July 2, 2008

PCAB RESOLUTION NO. 549-A-08

IMPOSING STIFFER PENALTY ON PROJECTS IMPLEMENTED WHILE CONTRACTOR'S LICENSE IS UNDER PREVENTIVE SUSPENSION

WHEREAS, R.A. 4566, the Contractor's License Law, mandates all contractors to have a valid license before they engage in the business of construction contracting in the Philippines and said license must be renewed on or before its expiration; otherwise the contractor will be operating without a valid license; TEAICc

WHEREAS, Board Resolution No. 086, s. 2007 requires that a contractor filing after the expiration or its license (late filer) shall submit an affidavit of no operation or construction activity to attest to the fact thereof or pay upon filing an additional license fee of P5,000;

WHEREAS, Board Resolution No. 001, s. 2008 imposes a ninety (90) day preventive suspension on contractors who have misrepresented their affidavit of no-operation pending investigation;

WHEREAS, while under preventive suspension, contractors with on-going project must secure the Board's authority to continue implementing the same until completion; otherwise, a second instance of violation of the Law will be committed.

NOW, THEREFORE, based on the foregoing premises, and to instill discipline on erring contractors, the Philippine Contractors Accreditation Board hereby RESOLVED to impose an additional penalty of P5,000 for every unauthorized construction activity/project implemented while the contractor is under preventive suspension.

This resolution shall be effective upon publication in a newspaper of general circulation.

July 2, 2008, Makati City.

 

(SGD.) ELMER C. HERNANDEZDTI Undersecretary/OIC Chairman

 

(SGD.) AGERICO M. UNGSONActing Member

 

(SGD.) JOSE MA. L. CASTORActing Member

ATTESTED BY:

 

(SGD.) RENE E. FAJARDOOfficer-in-Charge

 

(SGD.) CONSOLACION C. VILLAFUERTEBoard Secretary

Published in The Philippine Star on December 17, 2008.