The

CONSTRUCTION
INDUSTRY
ARBITRATION
COMMISSION
 HIGHLIGHTS OF CIAC HISTORY
November 28, 1980 – Creation of the Construction
Industry Authority of the Philippines (CIAP) and, among
others, the Philippine Domestic Construction Board
(PDCB) under Presidential Decree No. 1746
● “ To establish procedures, guidelines and criteria for fair
and expeditious adjudication and settlement of claims and
disputes in contract implementation” (Sec. 2i, P.D. 1746 –
CIAP Powers and Objectives)
 HIGHLIGHTS OF CIAC HISTORY
● “Adjudicate and settle claims and disputes in the
implementation of public construction contracts xxx”
(Sec. 6b3, P.D. 1746 – PDCB Functions)
● “Formulate and recommend rules and procedures
for the adjudication and settlement of claims and
disputes in the implementation of contracts in private
construction” (Sec. 6b5, P.D. 1746 – PDCB Functions)
 HIGHLIGHTS OF CIAC HISTORY
February 4, 1985 – creation of the Construction Industry
Arbitration Commission (CIAC) under Executive Order
No. 1008 or the Construction Industry Arbitration Law
(Sec. 1. Title, E.O. 1008)
● Section 2. Declaration of Policy – It is hereby declared to
be policy of the State to encourage the early and
expeditious settlement of disputes in the Philippine
Construction industry.
 HIGHLIGHTS OF CIAC HISTORY
● Section 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.
● Section 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.
 HIGHLIGHTS OF CIAC HISTORY
Current composition of the CIAC:
1. Justice Teresita V. Diaz-Baldos (ret.) –
Chairperson
2. Engr. Antonio A. Abola – Member
3. Engr. Emilio Lolito J. Tumbocon – Member
January 9, 1986 – the CIAC rules and criteria for
accreditation were finalized.
 HIGHLIGHTS OF CIAC HISTORY
August 23, 1988 – the CIAC Rules of Procedure Governing
Construction Arbitration as well as the simplified rules for
mediation/conciliation were approved.
December 14, 1988 – the first batch of 15 successful
candidates and 7 members of the training faculty took
their oaths of accreditation as construction arbitrators
before Chief Justice Marcelo H. Fernan.
January 1989 – the CIAC started to be operational and to accept
cases for resolution/settlement.
 CIAC FUNCTIONS & POWERS

E.O. No. 1008

● Section 6. Functions of the Commission –
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
 CIAC FUNCTIONS & POWERS
4. To direct its officers and employees to perform such
functions as may be assigned to them from time to time.

● Section 12 – Authority to appoint the Executive Director, the

consultants, the arbitrators, as well as personnel and staff.
● Section 13 – Authority to determine and collect fees, deposits,
cost of arbitration, as well as administrative and other
charges as may be necessary in the performance of its
functions and responsibilities; authority to use its receipts
and deposits of funds to finance its operations subject to the
approval of the PDCB.
 CIAC FUNCTIONS & POWERS

● Section 14 – Accreditation of arbitrators

● Section 20 – Concurrence to issuance of writ of execution

● Section 21 – Rule – making power

 CIAC FUNCTIONS & POWERS
● Sec. 16, Rule 2, IRR of PD 1746 (CIAP Board Res. No. 1,
Series of 1998)
- CIAC to exercise the powers, duties and functions under E.O.
1008, including but not limited to the ff:
a. Establish rules of procedure to provide a fair and expeditious
settlement of construction disputes through a non-judicial
process which ensures harmonious and friendly relationships
between or among the parties; and
b. Provide for a program that would promote the utilization of
arbitration as an alternative mode of settling construction-
related disputes
 CIAC Jurisdiction
E.O. 1008 (the Construction Industry Arbitration Law)
“Section 4. Jurisdiction - 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. xxx…. xxx “
 CIAC Jurisdiction
E.O. 1008 ( the Construction Industry Arbitration Law)
● Coverage (Sec. 4)
- violation of specifications for materials and
worksmanship
- violation of the terms of agreement
- interpretation and/or application of contractual
provisions
- amount of damages and penalties
- commencement time and delays
- maintenance and defects
- payment default of employer or contractor
- changes in contract cost
● Exclusion (Sec. 4)
- Employer – employee disputes
 CIAC Jurisdiction
R.A. 9184 (the Government Procurement Reform Act)
Section 59. Arbitration – any and all disputes arising from
the implementation of a contract covered by this Act shall be
submitted to arbitration in the Philippines according to the
provisions of R.A. 876, otherwise known as the “Arbitration
Law” . Provided, however, That disputes that are within the
competence of the Construction Industry Arbitration
Commission to resolve shall be referred thereto. The process
of arbitration shall be incorporated as a provision in the
contract that will be executed pursuant to the provisions of
this Act. Provided, That by mutual agreement, the parties
may agree in writing to resort to alternative methods of
dispute resolution.
 CIAC Jurisdiction
R.A. 9184 (the Government Procurement Reform Act)

● Coverage (Sec. 4. Scope and application)

- infrastructure projects, goods, consulting services

- local or foreign-funded
- by all branches & instrumentalities of government ,
its departments, offices and agencies, including
government-owned and/or controlled corporations
and local government units
CIAC Jurisdiction
R.A. 9285 (the Alternative Dispute
Resolution Act of 2004)

Sec. 34. Arbitration of Construction

Disputes: Governing Law – the
arbitration of construction disputes shall
be governed by Executive Order No. 1008,
otherwise known as the Construction
Industry Arbitration Law.
 CIAC Jurisdiction
R.A. 9285 (the Alternative Dispute Resolution
Act of 2004
● Coverage (Sec. 35)
- construction disputes between or among parties
to, or otherwise bound by, an arbitration
agreement, directly or by reference
- project owner, contractor, subcontractor,
fabricator, project manager, design professional,
consultant, quantity surveyor, bondsman or issuer
of an insurance policy in a construction project
 CIAC Jurisdiction
R.A. 9285 (the Alternative Dispute Resolution Act of
2004)

- construction disputes although the arbitration is

“commercial” pursuant to Section 21 of R.A. 9285

◊ matters arising from all relationships of a

commercial nature, whether contractual or
not
 CIAC Jurisdiction
R.A. 9285 (the Alternative Dispute Resolution Act of
2004)

◊ examples: trade transaction for the supply of

exchange of goods or services; distribution
agreements; const. of works; commercial
representation or agency; factoring; leasing;
consulting; engineering; licensing; investment;
financing; banking; insurance; joint venture and
other forms of industrial or business cooperation;
carriage of goods or passengers by air, sea, rail
or road.
 CIAC Jurisdiction
R.A. 9285 (the Alternative Dispute Resolution Act of 2004)

Section 39. Court to Dismiss Case involving a

Construction Dispute. A Regional Trial Court before
which a construction dispute is filed shall, upon
becoming aware not later than the pretrial
conference, that the parties had entered into an
arbitration agreement, dismiss the case and refer the
parties to arbitration to be conducted by CIAC, unless
both parties, assisted by their respective counsel,
shall submit to the Regional Trial Court a written
agreement exclusively for the Court, rather than the
CIAC, to resolve the dispute.
 CIAC Jurisdiction
CIAC Rules of Procedure Governing Construction
Arbitration
● Section 2.3 Condition for exercise of jurisdiction
- arbitration agreement in the contract or subsequent
agreement to submit a dispute to voluntary
arbitration
- form of subsequent agreement : exchange of
communication or some other form showing
agreement to submit to arbitration
● Section 4.1 Submission to CIAC Jurisdiction
- arbitration clause or submission to arbitration is
deemed an agreement to submit an existing or future
 CIAC Jurisdiction
CIAC Rules of Procedure Governing Construction Arbitration

controversy to CIAC jurisdiction, notwithstanding the

reference to a different arbitration institution or arbitral
body in such contract or submission

- arbitration clause sufficient for Claimant to invoke

CIAC jurisdiction
- arbitration agreement shall be in writing but need not be
signed by the parties as long as intent to submit to
arbitration is clear
- form: exchange of letters sent by post or by telefax,
telexes, telegrams, email or any other mode of
communications
 CIAC Jurisdiction
CIAC Rules of Procedure Governing Construction
Arbitration
● Section 4.2 Failure or refusal to arbitrate
- where CIAC jurisdiction is properly invoked by the filing
of a Request for Arbitration, arbitration shall proceed
even in the absence or lack of participation of the
Respondent
- an award shall be made after receiving the evidence of
the Claimant
● Section 4.3 When arbitration cannot proceed
- no arbitration clause in the contract
- parties cannot agree to submit the dispute to arbitration
 CIAC PROGRAMS
Construction Dispute Resolution
● Arbitration
● Mediation
● Small Claims Assistance Program

Institutional Development
● Policy Review/Formulation
● Regionalization of CIAC Services
● Training/Accreditation of Construction
Arbitrators & Mediators
 Construction Industry Arbitration Commission
No. of Cases Filed
(1989 – 2018)
80

72

70

62

60 58 58
56

50
49 49
50
46
44
43
40
39
40 38 38
37
35 35
34
32 32
31
30

19
20 18
15
13
11
10 8 8 8

0
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 Construction Industry Arbitration Commission
No. of Cases Resolved/Settled
(1990 – 2018)
70

61
59
60

50
45
43

40 38
37 37 37
36
35
34
33 33
31
29 29 29
30
26 26
25
23 23
20
20
15
12
10
10
5
3 3

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 Construction Industry Arbitration Commission
Sum in Dispute of Cases Filed
(1989 – 2018)
1.2E+10

1E+10

8E+09

6E+09

4E+09

2E+09

0
 Construction Industry Arbitration Commission
Sum in Dispute of Cases Resolved/Settled
7E+09
(1990 – 2018)
6E+09

5E+09

4E+09

3E+09

2E+09

1E+09

0
Construction Industry Arbitration Commission
Addresses/Contact Numbers
:(02) 897-0853
:(02) 897-9313
:www.ciap.gov.ph
:[email protected]
:CIAC Philippines
:2nd Flr., Executive Building Center
369 Sen. Gil J. Puyat Ave. cor.
Makati Avenue, Makati City
 Construction Industry
Arbitration Commission

THANK YOU!