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PCAB license as per category

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jhunco rte z January 2012

Howdy, Stranger!

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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Comments p came tro 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.

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kyo te 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 in construction for 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.

p came tro April 2012

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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

p came tro 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?

e ric04083 November 2012

hi.. we will be applying for a new contractor's license as CategoryTRADE. 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; SPWP & SP-PN. Thank you in advance!

p came tro November 2012

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 CategorizationClassification 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.

p came tro 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.

jo hnc12 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.

p came tro April 2013

9 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.

FAST P REC ISION 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

p came tro July 2013

edited July 2013

That is no problem as long as you technically qualify for SPMechanical 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?

p came tro 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 registered project) 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.

p ao to n 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

p came tro 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 subclassifications. 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.

cre w 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.

p came tro September 2013

Contractors licensing apply to all types of construction, whether Private of Government sector. RA 4566 requires of all contractors in the 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.

cre w 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

there?

p came tro 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 CategorizationClassification 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 above the 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/essentiallinks/.

cre w 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?

p came tro 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

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.).

cre w September 2013

Going back to my question, to engage in construction of a house, I need at least P900,000 in financial capacity?

p came tro 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 one STE with 3 years minimum construction experience (in the License Classification) is required.

Kix x 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 networth (assets-liabilities) or just cash-on-hand/bank?

p came tro 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

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.

JJJo anSSS0228 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.

p came tro 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.

Jo yful 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

of thing. 2. What is 'STE and COMTCP' means in the Classification Table. Thank you in advance for your kind response on this.

Jo yful 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 companywhich 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 percentage based on the rate of shareholding.

p came tro October 2013

edited October 2013

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.

Jo yful 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

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.

p came tro 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 the private 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.

Jo yful October 2013

edited October 2013

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

p came tro 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

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 remains silent on this as it does not form part of contractors' licensing. The project value ceiling was introduced by RA 9184 solely for Government Projects.

AMAb ig an January 2014

Good Day!!! Do classification SP-EM (Electrical and Mechanical Works) covers SPFW, 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.

p came tro 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 lo jo g glo s ggs March 2014

Hello! Under which category does Structured cabling fall?

p came tro March 2014

It will fall under Specialty Classification "SP-CF Communication Facilities".

EmeEme rso nrso n 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?

p came tro 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.

ce coce nstruct co nstruct 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 foreign company 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?

p came tro 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.

ce coce nstruct co nstruct 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 a company 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?

p came tro 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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