EXECUTIVE ORDER NO. 1008
EXECUTIVE ORDER NO. 1008 - CREATING
AN ARBITRATION MACHINERY IN THE CONSTRUCTION INDUSTRY OF THE PHILIPPINES
WHEREAS, the construction industry provides
employment to a large segment of the national labor force and is a
leading contributor to the gross national product;
WHEREAS, it is of vital necessity that continued growth towards
national goals shall not be hindered by problems arising from, or
connected with, the construction industry;
WHEREAS, there is a need to establish an arbitral machinery to settle
to such disputes expeditiously in order to maintain and promote a
healthy partnership between the government and the private sector in
the furtherance of national development goals;
WHEREAS, Presidential Decree No. 1746 created the Construction Industry
Authority of the Philippine (CIAP) to exercise centralized authority
for the optimum development of the construction industry and to enhance
the growth of the local construction industry;
WHEREAS, among the implementing agencies of the CIAP is the Philippine
Domestic Construction Board (PDCB) which is specifically authorized by
Presidential Decree No. 1746 to “adjudicate and settle claims and
disputes in the implementation of public and private construction
contracts and for this purpose, formulate and adopt the necessary rules
and regulations subject to the approval of the President”;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by law, do hereby authorize the
creation of an arbitration machinery in the construction industry of
the Philippines, and do hereby order and ordain:
Section 1. Title. — This Executive Order shall be
known as the “Construction Industry Arbitration Law”.
Sec. 2. Declaration of Policy. — It is hereby
declared to be the policy of the State to encourage the early and
expeditious settlement of disputes in the Philippine construction
industry.
Sec. 3. Creation. — There is hereby established in
the CIAP a body to be known as the Construction Industry Arbitration
Commission (CIAC). The CIAC shall be under the administrative
supervision of the PDCB.
Sec. 4. Jurisdiction. — The CIAC shall have
original and exclusive jurisdiction over disputes arising from, or
connected with, contracts entered into by parties involved in
construction in the Philippines, whether the dispute arises before or
after the completion of the contract, or after the abandonment or
breach thereof. These disputes may involve government or private
contracts. For the Board to acquire jurisdiction, the parties to a
dispute must agree to submit the same to voluntary arbitration.
The jurisdiction of the CIAC may include but is not limited to
violation of specifications for materials and workmanship; violation of
the terms of agreement; interpretation and/or application of
contractual time and delays; maintenance and defects; payment, default
of employer or contractor and changes in contract cost.
Excluded from the coverage of this law are disputes arising from
employer-employee relationships which shall continue to be covered by
the Labor Code of the Philippines.
Sec. 5. Composition of the Board. — The Commission
shall consist of a Chairman and two (2) members, all to be appointed by
the CIAP Board upon recommendation by the members of the PDCB.
Sec. 6. Functions of the Commission. — The
Commission shall perform, among others that may be conferred by law,
the following functions:
1)
To formulate and adopt an arbitration program for the construction
industry;
2) To
enunciate policies and prescribe rules and procedures for construction
arbitration;
3) To
supervise the arbitration program, and exercise such authority related
thereto as regards the appointment, replacement or challenging of
arbitrators; and
4) To direct
its officers and employees to perform such functions as may be assigned
to them from time to time.
Sec. 7. Compensation of the Commission. — The
members of the Commission shall receive such per diems and allowances
as may be fixed by the CIAP from time to time.
Sec. 8. Term. — The term of office of the members
of the Commission shall be six (6) years; provided, however, that of
the Commission members first appointed, the chairman shall hold office
for six years; the other member for four (4) years; and the third for
two (2) years. The appointment to any vacancy in the Commission shall
only be for the unexpired portion of the term of the predecessor.
Sec. 9. Quorum. — The presence of a majority of
the members of the Commission shall constitute a quorum for the
transaction of business.
Sec. 10. Deliberations. — The decisions of the
Commission shall be arrived at by majority vote.
Sec. 11. Secretariat. — The Commission shall have
a Secretariat to be headed by an Executive Director who shall be
responsible for receiving requests for arbitration, and other
pleadings, for notifying the parties thereto; and, for fixing and
receiving filing fees, deposits, costs of arbitration, administrative
charges, and fees. It shall be the duty of the Executive Director to
notify the parties of the awards made by the arbitrators.
The Secretariat shall have among others a Publication and a Training
Division.
Sec. 12. Authority to appoint. — The Commission is
hereby authorized to appoint the Executive Director, the consultants,
the arbitrators, as well as personnel and staff.
Sec. 13. Authority to Collect Fees. — The
Commission is empowered to determine and collect fees, deposits, costs
of arbitration, as well as administrative and other charges as may be
necessary in the performance of its functions and responsibilities. The
CIAC is also authorized to use its receipts and deposits of funds to
finance its operations subject to the approval of the PDCB, the
provisions of any law to the contrary notwithstanding.
Sec. 14. Arbitrators. — A sole arbitrator or three
arbitrators may settle a dispute.
Where the parties agree that the dispute shall be settled by a sole
arbitrator, they may, by agreement, nominate him from the list of
arbitrators accredited by the CIAC for appointment and confirmation. If
the parties fail to agree as to the arbitrator, the CIAC taking into
consideration the complexities and intricacies of the dispute/s has the
option to appoint a single arbitrator or an Arbitral Tribunal.
If the CIAC decides to appoint an Arbitral Tribunal, each party may
nominate one (1) arbitrator from the list of arbitrators accredited by
the CIAC for appointment and for confirmation. The third arbitrator who
is acceptable to both parties confirmed in writing shall be appointed
by the CIAC and shall preside over the Tribunal.
Arbitration shall be men of distinction in whom the business sector and
the government can have confidence. They shall not be permanently
employed with the CIAC. Instead, they shall render services only when
called to arbitrate. For each dispute they settle, they shall be given
fees.
Sec. 15. Appointment of Experts. — The services of
technical or legal experts may be utilized in the settlement of
disputes if requested by any of the parties or by the Arbitral
Tribunal. If the request for an expert is done by either or by both of
the parties, it is necessary that the appointment of the expert be
confirmed by the Arbitral Tribunal.
Whenever the parties request for the services of an expert, they shall
equally shoulder the expert’s fees and expenses, half of which shall be
deposited with the Secretariat before the expert renders service. When
only one party makes the request, it shall deposit the whole amount
required.
Sec. 16. Arbitration Expenses. — Arbitration
expenses shall include the filing fee; administrative charges,
arbitrator’s fees; fee and expenses of the expert, and others which may
be imposed by the CIAC.
The administrative charges and the arbitrator’s fees shall be computed
on the basis of percentage of the sum in dispute to be fixed in
accordance with the Table of Administrative Charges and Arbitrator’s
Fees.
Sec. 17. Deposit to Cover Arbitration Expenses. —
The CIAC shall be authorized to fix the amount to be deposited which
must be equivalent to the expected arbitration expenses. The deposit
shall be paid to the Secretariat before arbitration proceedings shall
commence. Payment shall either be shared equally by the parties or be
paid by any of them. If one party fails to contribute his share in the
deposit, the other party must pay in full. If both parties fail to
tender the required deposit, the case shall be considered dismissed but
the parties shall still be liable to pay one half (1/2) of the agreed
administrative charge.
Sec. 18. Reports. — The Commission shall within
three (3) months after the end of the fiscal year, submit its annual
report to the CIAP. It shall, likewise, submit such periodic reports as
it may be required from time to time.
Sec. 19. Finality of Awards. — The arbitral award
shall be binding upon the parties. It shall be final and unappealable
except on questions of law which shall be appealable to the Supreme
Court.
Sec. 20. Execution and Enforcement of Awards. — As
soon as a decision, order to award has become final and executory, the
Arbitral Tribunal or the single arbitrator with the occurrence of the
CIAC shall motu propio, or on motion of any interested party, issue a
writ of execution requiring any sheriff or other proper officer to
execute said decision, order or award.
Sec. 21. Rule-Making Power. — The CIAC shall
formulate and adopt necessary rules and procedures for construction
arbitration.
Sec. 22. Separability Clause. — The provisions of
this Executive Order are declared to be separable and if any provision
on the application hereof is held invalid or unconstitutional, the
validity of the remaining provision not otherwise affected shall remain
in full force and effect.
Sec. 23. Repealing Clause. — All provisions of
existing laws, proclamations, decrees, letters of instructions and
executive orders contrary to or inconsistent herewith are hereby
repealed or modified accordingly.
Sec. 24. Effectivity Clause. — This Executive
order shall take effect immediately.
DONE in the City of Manila,
this 4th day of February, in the Year of Our Lord, Nineteen Hundred and
Eighty-Five.
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