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    Ra 4566

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    BrunxAlabastro
    A joint venture composed of individual licensees under Republic Act No. 4566 is required to secure a separate license. The law and its implementing rules state that a joint venture must obtain an additional license to submit bids, enter contracts, or act as a licensed contractor, even if the individual members hold licenses. If an unlicensed joint venture submits a bid, the consequences include license revocation, disciplinary action from the licensing board such as fines, and criminal charges with penalties of fines up to 5,000 pesos.

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    Ra 4566

    Uploaded by

    BrunxAlabastro
    406 views2 pages
    A joint venture composed of individual licensees under Republic Act No. 4566 is required to secure a separate license. The law and its implementing rules state that a joint venture must obtain an additional license to submit bids, enter contracts, or act as a licensed contractor, even if the individual members hold licenses. If an unlicensed joint venture submits a bid, the consequences include license revocation, disciplinary action from the licensing board such as fines, and criminal charges with penalties of fines up to 5,000 pesos.

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    RA 4566

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    A joint venture composed of individual licensees under Republic Act No. 4566 is required to secure a separate license. The law and its implementing rules state that a joint venture must obtain an additional license to submit bids, enter contracts, or act as a licensed contractor, even if the individual members hold licenses. If an unlicensed joint venture submits a bid, the consequences include license revocation, disciplinary action from the licensing board such as fines, and criminal charges with penalties of fines up to 5,000 pesos.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    406 views2 pages

    Ra 4566

    Uploaded by

    BrunxAlabastro
    A joint venture composed of individual licensees under Republic Act No. 4566 is required to secure a separate license. The law and its implementing rules state that a joint venture must obtain an additional license to submit bids, enter contracts, or act as a licensed contractor, even if the individual members hold licenses. If an unlicensed joint venture submits a bid, the consequences include license revocation, disciplinary action from the licensing board such as fines, and criminal charges with penalties of fines up to 5,000 pesos.

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    of 2

    LEGAL MEMORANDUM

    Query: Whether a Joint Venture, composed of individual licensees under Republic


    Act No. 4566, is required to secure a separate license from that of the individuals who
    compose it

    Answer: Yes.

    Under Republic Act No. 4566, Section 38 of the said law requires that:

    “Joint licenses. It is unlawful for any two or more licensees, each of whom
    has been issued a license to engage separately in the capacity of a contractor, to
    jointly submit a bid or otherwise act in the capacity of a contractor without first
    having secured an additional license for acting in the capacity of such a joint
    venture or combination in accordance with the provisions of this Act as provided
    for an individual, partnership or corporation.”

    Under the Implementing Rules and Regulations of RA 4566, a "Joint Venture" means a
    cooperative arrangement of licensed constructors to jointly perform a single specific
    undertaking/project with each of the partners contributing to the performance.

    Under Rule 10, Sec. 10.3 on Joint Operation Licensing:

    A joint venture of licensed constructors as defined in Sec. 1.1(g) hereof,


    notwithstanding each being individually licensed, shall secure an additional
    license as a joint venture for it to be legally authorized to submit a bid, enter into a
    construction contract, implement a project or otherwise act as a licensed
    constructor

    The Supreme Court, in the decided case of Alvarez v. People of the Philippines1, ruled
    that:

    “Foremost of these minimum legal standards is the license accreditation of


    a contractor required under R.A. No. 4566 otherwise known as the Contractors
    License Law. The Philippine Licensing Board for Contractors created under said
    law is mandated to ensure that prospective contractors possess at least two years
    of experience in the construction industry, and knowledge of the building, safety,
    health and lien laws of the Republic of the Philippines and the rudimentary
    administrative principles of the contracting business which it deems necessary for
    the safety of the contracting business of the public. In fact, a contractor must show
    that he is licensed by the board before his bid will be considered. As a general
    rule therefore, the prospective contractor for government infrastructure projects
    must have been duly licensed as such pursuant to R.A. No. 4566.”

    What are the consequences in case a non-licensed Joint Venture submitted a bid, in
    violation of Republic Act 4566 and its implementing rules and regulations?

    1. REVOCATION OF THE LICENSE

    Under Section 29 of the law, “[t]he Board shall, upon its own motion or
    upon the verified complaint in writing of any person, investigate the action of any
    contractor and may suspend or revoke any license if the holder thereof has been

    1
    G.R. No. 192591, June 29, 2011, VILLARAMA, JR., J.
    1
    guilty of or has committed any one or more of the acts or omission constituting
    causes for disciplinary action.”

    2. DISCIPLINARY ACTION FROM THE PHILIPPINE LICENSING BOARD


    FOR CONTRACTORS

    Under Section 28 of the law, “the following shall constitute causes for
    disciplinary action:

    X X X

    (e) Failure to comply the provisions of this Act;”

    Under Section 35 of the law, “[a]ny contractor who, for a price,


    commission, fee or wage, submits or attempts to submit a bid to construct, or
    contracts to or undertakes to construct, or assumes charge in a supervisory
    capacity of a construction work within the purview of this Act, without first
    securing a license to engage in the business of contracting in this country; or who
    shall present or file the license certificate of another, give false evidence of any
    kind to the Board, or any member thereof in obtaining a certificate or license,
    impersonate another, or use an expired or revoked certificate, or license, shall be
    deemed guilty of misdemeanor, and shall, upon conviction, be sentenced to pay a
    fine of not less than five hundred pesos but not more than five thousand pesos.”

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