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WHEREAS, the construction industry constitutes  an important segment of the industrial sector and  contributes significantly to the gross national  product of the Philippines;chanroblesvirtualawlibrary

WHEREAS, construction is now a major industry,  accounting for more than five hundred thousand  workers and providing livelihood to more than  three million Filipinos;chanroblesvirtualawlibrary

WHEREAS, the construction industry has began to  venture into international markets, generating foreign  exchange and providing greater employment to Filipino  workers;chanroblesvirtualawlibrary

WHEREAS, the orderly growth and development of the  construction industry and the upgrading of the capability of construction contractors are in consonance  with national interest and will benefit both public  and private sector;chanroblesvirtualawlibrary

WHEREAS, the continued growth and development of the  construction industry requires an increasing number  of skilled construction workers; and  chanroblesvirtualawlibrary

WHEREAS, such growth and development have been hampered by the lack of cohesive government policies and the  absence of a central agency to deal with the problems  of the industry and to coordinate with other government  agencies on matters affecting the industry.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in  me by the Constitution, do hereby order and decree the  creation of the Construction Industry Authority of the Philippines (CIAP) designed to promote, accelerate  and regulate the growth and development of the construction  industry as follows:cralaw:red

Section 1.    Composition. — There is hereby established a Construction Industry Authority of the Philippines which shall be composed  of the Minister of Industry as Chairman, the Chairmen of  the different agencies under this Decree namely: the Philippine  Contractors Accreditation Board, the Philippine Overseas  Construction Board, the Philippine Domestic Construction  Board, the Construction Manpower Development Foundation,  the President of the Philippine Contractors Association,  and one representative of the private construction sector  to be appointed by the President, as members. The chairman shall designate a Vice-Chairman from among the members.

Section 2.    Powers and Objectives. — The Construction Industry Authority of the Philippines shall promote, accelerate  and regulate the growth and development of the construction  industry in conformity with national goals.  chanroblesvirtualawlibrary

Specifically, the Authority shall have the following  powers and objectives:cralaw:red

a.    To evolve an overall strategy and exercise centralized authority for the optimum development of the construction  industry;chanroblesvirtualawlibrary

b.    To monitor and study the operations of the construction industry both here and abroad, to identify its needs,  problems and opportunities and to recommend and/or  implement policies, legislations, programs and measures  to support the development of the industry;chanroblesvirtualawlibrary

c.    To rationalize investments in the construction industry in accordance with national investment priorities and development needs;chanroblesvirtualawlibrary

d.    To establish criteria for the classification and categorization of contractors which accurately reflect  their contracting capacity and performance capability;chanroblesvirtualawlibrary

e.    To enforce relevant and reasonable rules and requirements, as well as implement practicable and  efficient procedures for pre-qualification of public projects;chanroblesvirtualawlibrary

f.    To recommend and encourage the adoption of equitable and realistic contract conditions for construction;chanroblesvirtualawlibrary

g.    To seek the adoption of credit and other financing policies necessary for sustaining the continued and  orderly development of the construction industry and  for supporting Filipino contractors particularly  those involved in overseas construction;chanroblesvirtualawlibrary

h.    To identify and recommend other incentives necessary to support overseas construction;chanroblesvirtualawlibrary

i.    To establish procedures, guidelines and criteria for fair and expeditious adjudication and settlement  of claims and disputes in contract implementation;  chanroblesvirtualawlibrary

j.    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;chanroblesvirtualawlibrary

k.    To establish a funding mechanism with the private sector to promote and develop the construction industry;chanroblesvirtualawlibrary

l.    To perform such other functions necessary to achieve its objectives.

Section 3.    Organization. — The Authority shall be attached to the Ministry of Industry for policy and program coordination.  It shall exercise authority with respect to the government  agencies that conduct business with or exercise regulatory  powers over the construction industry. It shall exercise  jurisdiction and supervision over the following agencies  which shall act as its implementing arms.  chanroblesvirtualawlibrary

a.    The Philippine Contractors Accreditation Board;chanroblesvirtualawlibrary

b.    The Philippine Overseas Construction Board;chanroblesvirtualawlibrary

c.    The Philippine Domestic Construction Board;chanroblesvirtualawlibrary

d.    The Construction Manpower Development Foundation.

Section 4.    The Philippine Contractors Accreditation Board. — There is hereby created a Philippine Contractors Accreditation  Board under the jurisdiction and supervision of the Authority.  The Philippine Contractors Licensing Board is hereby  abolished and all its funds and records are hereby transferred  to the Philippine Contractors Accreditation Board.

a.    Composition. — The Board shall be composed of a Chairman and two (2) members to be appointed by the President upon  recommendation of the Authority. The present Board of  the Philippine Contractors Licensing Board shall continue  to hold office as the Board of the Philippine Contractors  Accreditation Board until their respective successors  have been duly appointed.

b.    Functions. — The Philippine Contractors Accreditation Board shall perform the present functions of the Philippine  Contractors Licensing Board until such time as its other functions, powers and duties are issued by the Authority.   chanroblesvirtualawlibrary

Section 5.    The Philippine Overseas Construction Board. — The Philippine Overseas Construction Board created  under P.D. 1167, as amended, is hereby placed under the jurisdiction and supervision of the Authority. It  shall continue to perform its present functions and  shall perform additional functions as may be assigned  by the Authority.

Section 6.    The Philippine Domestic Construction Board. — There is hereby created a Philippine Domestic Construction  Board under the jurisdiction and supervision of the  Authority.

a.    Composition. — The Board shall be composed of Chairman and four (4) members to be appointed by the President  upon recommendation of the Authority.

b.    Functions. — The Philippine Domestic Construction Board shall formulate, recommend and implement policies, guidelines, plans and programs for the efficient implementation  of public and private construction in the country.  Specifically, it shall:cralaw:red

1.    Formulate and recommend appropriate policies and guidelines for prequalification, bidding and contract award for  public infrastructure projects;chanroblesvirtualawlibrary

2.    Monitor and evaluate information on the status of public construction projects as well as on the performance  and contracting capacity of contractors engaged in  such projects;chanroblesvirtualawlibrary

3.    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;  chanroblesvirtualawlibrary

4.    Formulate and recommend approximate and standardized contract terms/conditions and guidelines for determining contract price adjustments in private construction;chanroblesvirtualawlibrary

5.    Formulate and recommend rules and procedures for the adjudication and settlement of claims and disputes  in the implementation of contracts in private construction;chanroblesvirtualawlibrary

6.    Perform such other functions as may be assigned by the Authority.

Section 7.    The Construction Manpower Development Foundation. — There is hereby created a Construction Manpower Development  Foundation which shall serve as the manpower development  arm of the Authority.  chanroblesvirtualawlibrary

a.    Composition. — The Foundation shall have a Board of Directors as composed of a Chairman and four (4) members  to be appointed by the Minister of Industry upon  recommendation of the Authority.

b.    Functions. — The Foundation shall perform the following functions:cralaw:red

1.    Draw up an overall construction manpower development plan and relevant strategies; chanroblesvirtualawlibrary

2.    Develop and implement manpower training programs for the construction industry;  chanroblesvirtualawlibrary

3.    Formulate and adopt construction skills and standards and establish skills testing and certification facilities  in coordination with the National Manpower and Youth Council;chanroblesvirtualawlibrary

4.    Recommend appropriate policies and measures to rationalize training and export of trained manpower in the  construction industry in coordination with the Ministry  of Labor and other pertinent government agencies; chanroblesvirtualawlibrary

5.    Develop a funding mechanism in cooperation with the construction industry to enable it to carry out its functions  by collecting fees and undertaking income generating  activities;chanroblesvirtualawlibrary

6.    Borrow from financing institutions as may support its operations;chanroblesvirtualawlibrary

7.    Perform such other functions as may be assigned by the Authority.   chanroblesvirtualawlibrary

The Foundation shall coordinate its activities and work  program with the National Manpower and Youth Council,  the Bureau of Employment Services of the Ministry of Labor,  the Philippine Overseas Construction Board and the Ministry of Education and Culture.

Section 8.    Executive Office. — The Authority shall have an Executive Office headed by a full-time Executive Director  to be appointed by the Chairman.

The Executive Office shall maintain a technical, legal and management staff to assist the Executive Director  in the performance of these duties and responsibilities.

The Executive Director shall report directly to the  Authority on matters pertaining to and/or concerning the  Authority and shall be responsible for monitoring and  implementation of the policies and programs of the  Authority, particularly by the four (4) agencies of  the Authority, for the purpose of ensuring effectiveness  and proper coordination.  chanroblesvirtualawlibrary

The Philippine Contractors Accreditation Board, the  Philippine Domestic Construction Board and the Construction  Manpower Development Foundation shall establish their own Secretariats to service their respective Boards and  to assist the Authority in the execution of its functions  and responsibilities, subject to pertinent budgetary  organization, compensation and civil service rules  and regulations. Each of the three (3) agency  Secretariats shall be headed by their respective  Executive Officers to be appointed by the Chairman of the Authority upon recommendation of their respective  Boards. The Philippine Overseas Construction Board  shall continue to maintain its Executive Staff.

All relevant agencies of the government involved in  the development and promotion of the construction industry  are hereby directed to coordinate with the Authority  in the execution of its functions.

Section 9.    Compensation. — The Authority shall fix (a) per diems of the Chairmen and the members of the different  Boards of the implementing agencies; and (b) the salaries  and allowances of the Executive Director, the staff  of the Executive Office as well as the office of the  different Secretariats under the Authority, subject to pertinent  budget, compensation, organization and civil service  rules and regulations.

Section 10.    Meetings. — The Authority and the Boards of the implementing agencies shall meet as often as is necessary  but not less than once a quarter. Special meetings may be  called by the respective Chairmen. The presence of the  majority of the members of the Authority or the Boards  of the implementing agencies shall constitute a quorum.  chanroblesvirtualawlibrary

Section 11.    Rules and regulations. — The Authority shall issue such rules and regulations as may be necessary for the  implementation of the general provisions of this Decree.

Section 12.    Funding. — The amount of five million pesos (P5,000,000.00) is hereby authorized to be released  from the Special Activities Fund to cover the operating  and capital expenses of the CIAP and its implementing  agencies for CY 1981, subject to Section 40 of P.D. No. 1177.

The Authority and its implementing agencies are hereby empowered to collect fees and undertake income generating  activities as may be necessary in the execution of its functions  and responsibilities. The Authority and its implementing agencies are hereby authorized to use its income to finance its operations, the provisions of law, to the contrary, notwithstanding. chanroblesvirtualawlibrary

Section 13.    Separability Clause. — The provisions of this Decree are declared to be separable and if any provision or the  application thereof is held invalid or unconstitutional,  the validity of the other provisions shall not be affected.

Section 14.    Repealing Clause. — All provisions of existing laws, proclamations, decrees, letters of instruction and  executive orders contrary to or inconsistent with this  Decree are hereby repealed or modified accordingly.

Section 15.    Effectivity Clause. — This Decree shall take effect immediately.

Done in the City of Manila, this 28th day of November, in  the year of Our Lord, nineteen hundred and eighty.

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