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E.O.

1008
CONSTRUCTION INDUSTRY ARBTRATION LAW

Declaration of Policy – It is hereby declared to be the policy of the State to encourage the early
and expeditious settlement of disputes in the Philippine construction industry.

Jurisdiction:
 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.
 violation of specifications for materials and workmanship
 violation of the terms of agreement
 interpretation and/or application of contractual time and delays; maintenance and
defects
 payment, default of employer or contractor and changes in contract cost.

XPN:
 disputes arising from employer-employee relationships

Composition of the Board


 Chairman
 2 members

Functions:
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
4. To direct its officers and employees to perform such functions as may be assigned to
them from time to time.

Secretariat
The Commission shall have a Secretariat to be headed by an Executive Director who
shall be responsible for receiving requests for arbitration and other pleadings; for notifying the
parties thereto; and, for fixing and receiving filing fees, deposits, costs of arbitration,
administrative charges, and fees. It shall be the duty of the Executive Director to notify the
parties of the awards made by the arbitrators.

Authority to Collect Fees


The Commission is empowered to determine and collect fees, deposits, costs of
arbitration, as well as administrative and other charges as may be necessary in the performance
of its functions and responsibilities. The CIAC is also authorized to use its receipts and deposits
of funds to finance its operations subject to the approval of the PDCB, the provisions of any law
to the contrary notwithstanding.

Arbitrators
 A sole arbitrator or three arbitrators may settle a dispute.
 Where the parties agree that the dispute shall be settled by a sole arbitrator, they may,
by agreement, nominate him from the list of arbitrators accredited by the CIAC for
appointment and confirmation.
 If the parties fail to agree as to the arbitrator, the CIAC taking into consideration the
complexities and intricacies of the dispute/s has the option to appoint a single arbitrator
or an Arbitral Tribunal.
** Arbitration shall be men of distinction in whom the business sector and the government can
have confidence. They shall not be permanently employed with the CIAC. Instead, they shall
render services only when called to arbitrate. For each dispute they settle, they shall be given
fees.

Appointment of Experts
The services of technical or legal experts may be utilized in the settlement of disputes if
requested by any of the parties or by the Arbitral Tribunal. If the request for an expert is done
by either or by both of the parties, it is necessary that the appointment of the expert be
confirmed by the Arbitral Tribunal.

Arbitration Expenses shall include the following:


 filing fee;
 administrative charges, arbitrator’s fees;
 fee and expenses of the expert;
 others which may be imposed by the CIAC.

Reports
The Commission shall within three (3) months after the end of the fiscal year, submit its
annual report to the CIAP. It shall, likewise, submit such periodic reports as it may be required
from time to time.

Finality of Awards
The arbitral award shall be binding upon the parties. It shall be final and inappealable
except on questions of law which shall be appealable to the Supreme Court.

Execution and Enforcement of Awards


As soon as a decision, order or award has become final and executory, the Arbitral
Tribunal or the single arbitrator with the occurrence of the CIAC shall motu propio, or on
motion of any interested party, issue a writ of execution requiring any sheriff or other proper
officer to execute said decision, order or award.

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