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PCAB license as per category

jhuncort ez

January 2012 edited January 2012

in PCAB Licensing questions, discussions & suggestions

We all know that in government projects, the government

employee and the contractor always follow the PCAB license

category limits.

How about in private sector, just like industrial plant? Is there any

rule regarding the use of contractors license as per category?

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pcametro

February 2012

In the private sector there are no licence category requirement. It is a

case of trust between the contractor and the client provided however

that the contractor is classified to do the work. As an example, a

electrical specialty contractor will be violating its licence if it would

contract to construct an entire building. For that, a General

Engineering or General Building license classification will be a

requirement.

kyote

March 2012

I want to build a commercial complex. I hired an archetic, PEE, etc. to

do the plans. The structural was done by a general engineering

contractor. Now, I want to hire my brother who engaged inconstruction f or almost 8 years to do the building wiring as specified

by the PEE. I trust him that he is capable to do the works but he is not

a PCAB license nor the PEE. As you said it is a case of trust between

the contractor and the client. Can I hire him or not? Thanks.

pcametro

April 2012

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2/14

He will be violating RA 4566 if he does the work. As far as contrator

category (Trade to AAA) it is a case of trust in the private sector

provided that the contractor is licensed and classified (electrical,

mechanical, structural, general guilding, general engineering, etc.) to

do the specific work and holds a valid PCAB license.

lakan2004 November 2012

In the application for new contractor's license, can we apply for GB-1

as TRADE? please enlighten us...thanks

pcametro

November 2012

No. Trade is a Specialty Classification category. Sec. 5.6 (Constructor

Categories) of the Rules and Regulations promulgated under RA 4566(the Contractors' license Law) provides as follows: "Every constructor

shall be graded and assigned a category as an adjunct to his licensing.

General Engineering and General Building constructors shall be

categorized in a scale of six, namely: AAA, AA, A, B, C, and D.

Specialty constructors shall be categorized in a scale of seven, namely:

AAA, AA, A, B, C, D and Trade." The Rule is thus very clear in this

regard.

lakan2004 November 2012

thanks sir.. we will also apply for registration and classification of

contractor for government infra projects and if ever our pcab license &

for govt infra project will be approved, can we bid for any project in

the case of gov't projects as long as it is less than 500T?

eric04083

November 2012

hi.. we will be applying for a new contractor's license as Category-

TRADE. In the Contractor's General Information form, can we apply for

six (6) Principal Classification such as SP-FW; SP-SS; SP-PS; SP-EE; SP-

WP & SP-PN. Thank you in advance!

pcametro

November 2012

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3/14

To lakan2004: As new license holder you will be deemed to be without

experience as you will not be able to register larges single similar

project in the classification range. you will be limited to 50% of 500T.

In other words Php250K. See the footnotes in the Categorization-

Classification Table (downloadable from either www.pcametro.ph or

http://pcametro.ph/pcab/ - under PCAB License Forms). Once you

have gained the experience through completed projects (and

registered the single largest projects per classfication with PCAB) it

can be updated so as to allow you to bid up to 500T.

pcametro

November 2012

To eric04083: Yes you can but you may be required to prove

experience and professional qualifications either through your AMO or

be required to have an STE with the prerequisite professional

qualifications and technical experience in the various fields. This is

particularly true in the case of EE and PS.

johnc12

April 2013

Good day PCA! I like to ask for clarification regarding PCAB

categorization specifically for financial capacity. Example for category

A that requires a stockholder's equity of 9M. What does 9M mean? Is it

for your cash on bank only supported by a bank certification or 9M

means your total networth as stated in your FS?

Does a NEW category C contractor can move to category A during

renewal if he can meet the credit points required even if the projects

he finished were not that big? Say below 2M (single project cost only).

Hoping for your reply. Thanks.

pcametro

April 20139 M means your networth in your audited FS as submitted to the BIR.

However there are some items on which you receive double credit such

as construction equipment and vehicles.

If you meet the overall credit point requirements you may upgrade.

The completed project value only comes into play when bidding for

Government projects. The value of your single largest similar project

(as the one bidded for) must be at least 50% of the value of the project

bidded for subject the the category ceiling.

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4/14

FASTPRECISION

July 2013

Hi PCA! we are applying for our pcab license (new) i would like to ask

if we can apply for general building classification and can add SP-ME

Mechanical work specialty...thank you

pcametro

July 2013 edited July 2013

That is no problem as long as you technically qualify for SP-

Mechanical work. The IRR under RA 4566 allows multiple additional

classifications over and above your principal classification (General

Building).

ciju August 2013

Hi. Can a PCAB license that has a category of AAA in General

Engineering can get 2.2B electrical project?

pcametro

August 2013 edited August 2013

Depends on whether it is a Public or Private Sector project. For Public

Sector (Government) projects the SLRP (single largest registeredproject) in the specific license classification and registration for the

specialty will be the determining factors. For Private Sector projects, if

the project is predominantly electrical, Electrical work will be required

as an Additional Classification to General Engineering. The reason for

this is that there has to be appropriate STE experience in respect of

electrical work. Your statement is vague and we cannot elaborate

further as a result.

paoton August 2013

I'm planning on applying for the trade classification of the pcab

license. What projects are covered by this classification? I will only be

participating the private sector of the industry. Can I contract projects

such as renovation, general repairs and condominium fit-outs?

Thank you

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5/14

pcametro

August 2013 edited August 2013

The Trade category is one of the license categories of the Specialty

Classifications. See the Categorization-Classification Table

(downloadable from either http://www.pcametro.ph,

http://pcametro.ph/pcab/ - under PCAB License Forms - or

http://pcametro.ph/essential-links/ ) for the various Specialty sub-

classifications. Renovation, repairs and fit-outs has been accepted in

practice as qualifying for Category Trade license. The IRR under RA

4566 only refers to 3 Classifications - General Engineering, General

Building and Specialty.

crew

September 2013

Hi, I am still confused as to categories for new registrations. The

classification is for govt contracts only right? So if I only plan to do

private contracts, should I still pick which category/classification I

want? If so, does this mean I still need to comply with the minimum

requirements of said category? I assumed there are no such

requirements for those engaging in purely private construction.

pcametro

September 2013

Contractors licensing apply to all types of construction, whether

Private of Government sector. RA 4566 requires of all contractors inthe country, irrespective of nationality, to first secure a license from

PCAB before engaging in construction contracting in the country.

Failure to do so is an offense under the law. In order to participate in

government projects/bidding, additional registration (over and above

the PCAB license) is required by RA 9184 (Government Procurement

Reform Act). The PCAB license classifications form the basis of

government registration and allowable ranges of contract cost (ARCC)

as well as SLRP (single largest registered project).

Your PCAB license classification (as well as additional classifications)

will determine your classification under the separate Government

registration.

crew

September 2013

Thanks for the reply. I am aware that all construction companies are

required to get a PCAB license. My question is, as a company planning

to do only private contracts, what classification requirements are

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6/14

there?

pcametro

September 2013

There are three PCAB license Classifications - General Engineering,

General Building and Specialty. Each of these has sub-classifications.

In private sector the sub-classifications under General Engineering

and General Building does not plat a significant role. However, The

sub-classifications under Specialty (there is no General Specialty

Classification - only individual specialty fields as listed and each one

must be individually applied for/added. Download the Categorization-

Classification Tables from http://pcametro.ph/essential-links/ . it will

give you perspective.

As we previously stated, RA 4566 and its IRR is aplicable to all types of

construction whether private or government and the classification

requirements applies to all. Government registration is over and abovethe PCAB license and is governed by RA 9184. It uses different license

Categories (Large, Medium & Small A or B). PCAB license Categories are

from Trade to AAA. However the former is based on the latter and

further defined by SLRP as stated above.

To answer your question, the Classification requirements are those set

out in RA 4566 and its IRR both of which can be downloaded from the

link we provided you with above - http://pcametro.ph/essential-

links/.

crew

September 2013

Thanks. So if I dont have financial capacity of at least 900,000 pesos, I

can only apply as Trade? I searched the rules but there is no definition

of what Trade is. Can you enlighten us?

pcametro September 2013

Trade is a license category under the Specialty Classification. Section

5.6 of the IRR under RA 4566 provides as follows: "Every constructor

shall be graded and assigned a category as an adjunct to his licensing.

General Engineering and General Building constructors shall be

categorized in a scale of six, namely: AAA, AA, A, B, C, and D.

Specialty constructors shall be categorized in a scale of seven, namely:

AAA, AA, A, B, C, D and Trade". PCAB has been treating the Trade

category as a catch-all in respect of non-General Engineering/Building

works. As an example, under the Trade license you are not allowed to

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7/14

contract for (construct) the construction of a house/building/structure

but dependent on your classifications under your trade license you

may carry out various works (e.g. electrical, mechanical,

plumbing/sanitary, structural steel, concreting, etc.).

crew

September 2013

Going back to my question, to engage in construction of a house, I

need at least P900,000 in financial capacity?

pcametro

September 2013

That is correct. The minimum financial capacity for General

Building/Engineering is set in order to protect the general public. In

addition, unlike in the case of a category Trade license, at least oneSTE with 3 years minimum construction experience (in the License

Classification) is required.

Kixx

September 2013

In the ARC Track Record Form, does it necessarily mean that the Single

Largest Project Completed a Completed Government Project?

If it is not necessarily a government project, will the recorded Single

Largest Project Completed in the ARC Form deemed as valid if it was

completed before its registration for PCAB License? Will it be covered

by the Amnesty?

Just a clarification regarding Financial Capacity, does it mean net-

worth (assets-liabilities) or just cash-on-hand/bank?

pcametro September 2013

Completed projects in both public and private sectors are eligible for

the ARC track record.

Only licensed contractors are allowed to engage in construction

contracting in the country. Projects completed by an unlicensed

contractor cannot be taken into consideration as it contravenes the

law. The Amnesty does not affect this. A contractor whose license is

delisted through failure to renew automatically loses his entire track

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8/14

record. This cannot be reinstated.

Financial capacity means net worth. You may have Php10M cash on

hand but Php11M liabilities which places you Php1M in the red and an

all probability ineligible for a license. The Amnesty however only

requires a Bank Certificate of at least Php45K without any further

documentation. Verification will be carried out when the license is

renewed.

JJJoanSSS0228

October 2013 edited October 2013

1.) If I am in a Trade Category but will engage only in private sectors,

does that mean I can only have 500,000 Peso and below Projects? Or

does it only apply to Government Projects?

2.) Can I accept projects for Sidewalk Concreting? (Still in Private

Sector).

3.) For STATEMENT OF ANNUAL VALUE OF WORK ACCOMPLISHED in

the Renewal License Form, Project Owners are stated to be Either

Government Infrastructure Agencies. So does it mean only Government

Projects are to be filled in the form, or Projects in the private sectors

are also to be included?

Thank you.

pcametro

October 2013

1. It only applies to Government Projects. There is no ceiling in private

sector projects.

2. At present it is a grey area but clarifications given by PCAB

personnel point to it being acceptable.

3. Both Government and Private Sector Projects can be included. It is

an omission in the form. How else can a contractor build a track

record to become eligible for Government Projects.

Joyful

October 2013

1. I'm considering establishing new construction company, and

getting a new license(Class 'D'),

however because it's new company, we don't have any previous

construction experience which can fulfill Class D.

If I can meet all the requirements except for experience. Is there any

way I can get a Class 'D', For example, I mean a temporary license kind

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9/14

of thing.

2. What is 'STE and COMTCP' means in the Classification Table.

Thank you in advance for your kind response on this.

Joyful October 2013

Additionally, can you enlighten me with the follow question?

If there is no way new construction company get a license without

experience.

I'm thinking of founding new company with other construction

company-

which has construction experience in 50%:50% basis.

And in this case, can newly established company use mother

company's experience?

If available, can the company use entire experience or percentagebased on the rate of shareholding.

pcametro


Experience is through your Sustaining Technical Employees (STE). STE

and the required qualifications is defined in Sec. 4.2 if the IRR under

RA 4566 (you can download it at the following link -

http://pcametro.ph/essential-links/ ). For a Category D license you are

required to have 1 STE with three years experience with a licensed

construction firm. You just have to employ a qualified STE to meet the

Technical requirements of this license category. Please note that a STE

can only be STE of one construction company. The experience is

personal to the construction concern and you cannot use the

experience of another for license purposes. Over and above this you

must meet the Financial requirements and between your Technical

credit points and Financial credit points you must meet the overall

credit point requirement.

Joyful

October 2013

Thank you for your kind reply.

I have another questions.

1. Is there any regulation about STE's nationality?

2. I know that there are three PCAB license Classifications - General

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10/14

Engineering, General Building and Specialty, and each of these has

sub-classifications such as Building or Industrial plant, seweage or

sewage system and so on.

Here's the question.

In case I have Category D license(Classification: General Building, and

Sub-classification: building or Industrial Plant), I want to bid for

Sewerage system project in private sector, do I need to acquire another

sub-category license?

Thank you.

pcametro

October 2013

The STE has to be a licensed professional (PRC). To be licensed by the

PRC the professional must be Philippine citizen.

Strictly speaking you have to be classified for it. However, in theprivate sector as it by and large depends on the project owner as

"sewage system" is a sub-classification of General Building. What you

cannot do is bid on a General Engineering project with only a General

Building license.

Joyful


Good Morning

Are there any documents that I can find the regulations of no ceiling

for private projects regardless of the categories(such as C, D, etc)?

I'm trying to find it in RA. 4566, but I wasn't able to spot it. Kindly ask

you to enlighten me.

Thank you

pcametro October 2013 edited October 2013

Public Sector projects are governed by RA 9184 (the Government

Procurement Reform Act) which, under its IRR sets out project value

ceilings for the individual license categories. The license categories

are different from that of the PCAB categories (Large B, Medium B,

Small B, Large A, etc. as opposed to AAA, AA, A, B, etc.). You may be a

AAA contractor but if you do not have a registered Single Largest

Project (SLP) of a specific classification or if the value of your SLP in

that classification is small, you may end up with a Medium A

categorization for that Classification. RA 4566, which was enacted

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11/14

long before RA 9184 remains silent on category value caps as the test

for license categorization is Technical experience and Financial

capacity. It is up to a private sector project owner to decide on the

contractor to use provided that the contractor is licensed to carry out

the work. Project value does not form part of that equation. A Category

D General Building contractor can construct a 50 floor building if the

project owner so decides. The IRR under RA 4566 can be downloaded

from http://pcametro.ph (left sidebar under Legislation or top

Secondary Menu under a similar heading). However, the IRR remainssilent on this as it does not form part of contractors' licensing. The

project value ceiling was introduced by RA 9184 solely for Government

Projects.

AMAbigan

January 2014

Good Day!!!

Do classification SP-EM (Electrical and Mechanical Works) covers SP-

FW, SP-PS, SP-EE, SP-PN, SP-WP, SP-SS, Electronic Works, etc. as an

Specialty Contractor.

Thank you in advance in your untiring and unselfish responses to us.

pcametro

January 2014

You must individually apply for each specialty. This is the nature of

the Specialty Classification. It denotes that the contractor is a

specialist in his field. If the contractor has the technical ability in more

than one specialty, the additional classifications must be separately

(may be in one application form) applied for and the technical

capability shown.

jo loggs

March 2014

Hello!

Under which category does Structured cabling fall?

ol

pcametro

March 2014

It will fall under Specialty Classification "SP-CF Communication

Facilities".

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12/14

Emerson

March 2014

Good Day!

We have won a government bidding worth Php18m. This is a

construction project which includes fabrication of machineries. But it

was categorized as a construction as a whole. We have a PCAB

category D. In which i do understand that we can only transact a

government project of up to 15million only. But we do have a SLC of

more than that amount of 18m approved budget. We also have an

NFCC of 27million. Can we still be able to serve this project given the

said supporting requirements?

E

pcametro

March 2014

You are (Category D / Small B) limited to a maximum project value of

Php15 million in terms of the Second Stage Adjustment of the ARCC

(PCAB Circular 001 series of 2009). There is no way around it. Excess

SLP does not come into play due to license restrictions for Government

projects.

ceconstruct

May 2014

Good afternoon,

If a foreigner company as a PCAB licence category B and the FIlipino

partner has a PCAB licence category AAA:

- In the case that the foreigner company wants to work for the private

sector, is there any amount limitation for a project? Is there any annual

limitation in number of projects or in total amount of project? Or

maybe a limitation about the number of project or the total amount of

project that we managed at the same time? Or maybe there is no

limitations at all?

- In the case of a government contract, the possibility for the foreigncompany to participate in the project is to join the project at 25% and

the filipino partner will have 75% if i am right. In that case, do we still

have to follow the the licence category B or do we follow the

limitations of our partner licence AAA (IRR Clause 23.5.2)? For example

if the partner apply for a project with an SLP of P300M, can we join him

or should we only join if the SLP of the project is above P10M and up

to P50M?

ce

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13/14

pcametro

May 2014

You are confusing Special Licenses with Regular Licenses. A Special

License is for a single project only. In addition, Foreign contractors

only qualify for a Special License and then only in the limited cases

enumerated in the IRR under RA 4566 and/or the BOT law. If you

require specific clarification for these issues we suggest that you open

a Support Ticket in the PCA Metropolitan Public Assistance Help Desk

at http://pcametro.ph/hesk/ and provide full and specific information

and not generalizations.

ceconstruct

May 2014

Thank you for your reply.

Yes indeed, now i understand the difference between general licence

and Special licence.

What i don't understand is, you said in February 2012 that if acompany as a general licence, "In the private sector there are no

licence category requirement. It is a case of trust between the

contractor and the client provided however that the contractor is

classified to do the work".

In the case of a foreign company, what is the purpose of having a AAA

licence or a B or C licence, if we don't need it in the private sector?

Does it only mean that a AAA licenced company is more trustable than

a B licenced company? But the licence category doesnt have any impact

on our limitations?

ce

pcametro

May 2014

There are many in the private sector that that insist that the contractor

they use has a certain license category - say AAA for high rise or AA

for medium rise. However, there is no legal requirement that for a

specific type of construction or contract value private sector project

owners must use contractors of a specific category. The only legal

requirement is that the contractor be Categorized for the work to be

carried out.A Category AAA contractor has greater financial capacity and technical

capability than a Category B license and that is important to many

developers, institutions and project owners.

In the case of a Special License issued to a Foreign contractor

Category is normally dictated by the project itself (PPP, BOT or

international competitive bidding under government to government

bilateral agreement). As a Special license is for a single project only, it

does not impact further.

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14/14

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