Presented during the AMO Seminar of the

The PICE Makati Chapter

11-12 September 2012
Jade Valley Cantonese Cuisine, Timog, Quezon City

SONIA T. VALDEAVILLA, C.E.,DURP

POCB & PDCB Officer-in-Charge
Philippine
Overseas
Construction
Board

Presentation Outline
I. Construction Industry Authority of the
Philippines (CIAP)
II. Philippine Overseas Construction Board
(POCB)
III. Philippine Domestic Construction Board
(PDCB)
IV.

Constructors Performance Evaluation

System (CPES)
Philippine
Overseas
Construction
Board

CIAP ORGANIZATIONAL STRUCTURE

D T I
C I A P

Constructio
n Industry
Arbitration
Commission
Construction
Contract
Dispute
Resolution

Philippine
Domestic
Construction
Board

Philippine
Contractors
Accreditation
Board

Philippine
Overseas
Construction
Board

Construction
Quality &
Efficiency
Improvement

Contractors
Licensing
and
Registration

Overseas
Contractors
Registration
& Devt

Philippine Construction Industry

Authority
of the Philippines (CIAP)
MANDATE (R.A. 1746 as amended by E.Os. 679 & 768 - 28 Nov. 1980)
To evolve an overall strategy and exercise
centralized authority for the optimum development
of the construction industry;
To evolve an overall strategy and exercise
centralized authority for the optimum development
of the construction industry;
To establish a funding mechanism with the private
sector to promote and develop the construction
industry;
Philippine
Overseas
4

Construction
Board

Philippine Construction Industry

Authority
of the Philippines (CIAP)
MANDATE (R.A. 1746 as amended by E.Os. 679 & 768 - 28 Nov. 1980)
To promote construction manpower training to
supplement the manpower training efforts of the
private sector, through the centralization of
programming and coordination of activities of all
government agencies;
To perform such other functions necessary to
achieve its objectives
5

Philippine
Overseas
Construction
Board

Composition of CIAP Board

Chairman : Secretary of DTI
Members
Secretary of DPWH
Secretary of DOTC
Secretary of DOLE
Chairmen of PCAB, POCB, PDCB, and CMDF
President of the Phil. Constructors Association, Inc.
Representative of the private construction sector
Special Construction Industry Representative in
the Middle East (ex-officio member)
The Chairman shall designate a Vice Chairman
from among the Members
6

Philippine
Overseas
Construction
Board

PHILIPPINE
OVERSEAS
CONSTRUCTION
BOARD
(PD 1167 as amended by
PD 1657, 27 June 1977)

Promote Philippine Construction

Contractors, Consultants and Materials in
the international market
7

Philippine
Overseas
Construction
Board

POCB Board
Chairman :

Isidro A. Consunji

Members :

William U. Christopher Liu, Jr.

Michael Roberto P. Reyes
Francisco Gonzalez, Jr.
Oscar Mercado

Term: 3 years to expire on August 15, 2011

8

Philippine
Overseas
Construction
Board

POCB MANDATE
Develop the Phil. Overseas Construction Industry
Regulate and control the participation of
construction contractors and consultants
(including general engineering/building and
specialty contractors, construction management,
engineering and specialized consultancy group) in
overseas construction projects
Administer the grant of incentives for under PD
1167
9

Philippine
Overseas
Construction
Board

Powers
&Programs
Functions &ofProjects
the Board
POCB
A. Develop the Phil. Overseas Const. Industry
Identify projects, and countries where Phil. contractors and
consultants may operate ;
Recommend, participate in the negotiation of bi-lateral and multilateral arrangements that would facilitate the entry of contractors/
consultants in overseas markets & protect the interests of Filipino
contractors and workers operating overseas; and
Formulate, implement or cause the implementation of a scheme or
arrangement for the protection of Filipino contractors from noncommercial risks with respect to their assets, equipment & other
property held overseas
10

Philippine
Overseas
Construction
Board

Powers
&Programs
Functions &ofProjects
the Board
POCB
B. Regulate
Register Filipino contractors and consultants who will
undertake projects overseas;
Determine who among the interested construction
contractors/consultants will be allowed to bid for overseas
projects;
Authorize the exportation of construction materials and
equipment (never been implemented); and
Cancel, suspend registration and enjoyment of incentives or
other benefits including the imposition of penalties
11

Philippine
Overseas
Construction
Board

Powers
&Programs
Functions &ofProjects
the Board
POCB
C. Control
Check, verify and evaluate the performance of construction
contractors and consultants engaged in overseas projects;
Check, verify the books, requires submission of regular reports
or by some other method deemed most effective;
Obtain, collate and evaluate information necessary for effective
discharge of its primary purpose and proper exercise of its
powers and functions

12

Philippine
Overseas
Construction
Board

Powers
&Programs
Functions &ofProjects
the Board
POCB
D. Administration of Incentives

Determine who will avail of and

eligible for incentives (no incentives
administered since the package of
incentives were withdrawn under
E.O. No. 93 on 17 December 1986)
i. Assistance/endorsement to PhilExim for guarantee assistance
ii. Special window at POEA for mobilization of workers
iii.Assistance in checking the credentials of prospective foreign
clients or partners
iv.Inclusion in the mailing list for Prospects which
give
13

Philippine
Overseas
Construction
Board

REGULAR PROGRAMS
I. Market Development
II. International Project Monitoring
III. Registration and Incentives

14

Philippine
Overseas
Construction
Board

POCB Registration, Renewal, and Project

Authorization

Philippine
Overseas
Construction
Board

General Classification of POCB Registered

Companies
1. Construction Companies
.General construction contractor
.Specialty contractor
.Service contractor
2. Specialized Consultancy Groups

Philippine
Overseas
Construction
Board

Requirements :

General construction

contractor

Current PCAB License (category AA or

higher );
Classification of general Building &
General Engineering;
One (1) key technical staff employed by
the applicant for not less than one (1)
year at the time of filing the application;
Five (5) years of continuous actual
operation as a licensed contractor
counted from the date of earliest
contract;
Philippine
Overseas
Construction
Board

Requirements :

Specialty contractor

Current PCAB License (category A or

higher ) and a classification relevant to
the specialization being applied for;
One (1) key technical staff employed by
the applicant for not less than one (1)
year at the time of filing the application;
Five (5) years of continuous actual
operation as a licensed contractor
counted from the date of earliest
contract;
Must have completed during the
immediate past five (5) years one (1)

Philippine
Overseas
Construction
Board

Requirements :

Service contractor

Current PCAB License (category A or

higher );
One (1) key technical staff employed by
the applicant for not less than one (1)
year at the time of filing the
application;
Five (5) years of continuous actual
operation as a licensed contractor
counted from the date of earliest
contract;
Substantial experience in the overseas
as a labor sub-contractor or manpower

Philippine
Overseas
Construction
Board

Requirements :

Specialized Consultancy

Groups

Minimum paid-in capital and networth

of two hundred fifty thousand pesos
(P250T);
At least three (3) permanently
employed staff with appropriate
degrees and professional training along
the line of consultancy services offered
by the company;
One of the staff must have been actively
engaged in the practice of his
profession for at least ten (10) years;
Philippine
Overseas
Construction
Board

Requirements :

Specialized Consultancy

Groups

Five (5) years of continuous actual

operation as a specialized consultancy
company counted from the date of
earliest contract;
Must have completed during the
immediate past five (5) years
One (1) consultancy project costing
not less than P1 M;
Philippine
Overseas
Construction
Board

Registration Validity and Fees

Type of
Validity
Amount of
Applicatio
Fees
n
(Pesos)
New
2 years
20,000.00
Registratio
n
Renewal
2 years
10,000.00
Proj.
Contract
None
Authorizati completion

Philippine
Overseas
Construction
Board

End of
POCB
Overview
Philippine
Overseas
Construction
Board

PHILIPPINE DOMESTIC
CONSTRUCTION BOARD (PDCB)
PD 1746

Philippine
Overseas
Construction
Board

The PDCB Board

Chairman: Atty. Ramon P. Ereneta, Jr.
Members : Engr. Rogelio C. Lombos
Engr. Anthony L. Fernandez
Atty. Romeo C. Lagman
Vacant
Chairman and Four (4) Members
- appointed by the President upon recommendations of the CIAP
No specified tenure of Office
Philippine
Overseas
Construction
Board

MANDATES
1. To enforce relevant and reasonable rules and
requirements, as well as implement practicable
and efficient procedures for prequalification of
public projects;
2. To recommend and encourage the adoption of
equivalent and realistic contract conditions for
construction; and
3. To establish procedures, guidelines and criteria
for fair and expeditious adjudication and
settlement of claims and disputes in contract
implementation.
Philippine
Overseas
Construction
Board

Functions of the Board

To formulate, recommend and implement
policies, guidelines, plans and programs for the
efficient implementation of public and private
construction in the country, specifically:
1. appropriate policies and guidelines for
prequalification, bidding and contract award
of public infrastructure projects;
2. Monitor and evaluate information on the
status of public construction projects;
performance and contracting capacity of
contractors engaged in such projects;
Philippine
Overseas
Construction
Board

Functions of the Board

3. approximate and standardized contract
terms/conditions
and
guidelines
for
determining contract price adjustments in
private construction;
4. Adjudicate and settle claims and disputes in
the implementation of public construction
contracts and for this purpose, formulate
and adopt the necessary rules and
regulations subject to the approval of the
President.
Philippine
Overseas
Construction
Board

Functions of the Board

5. for the adjudication and settlement of
claims and disputes in the implementation
of contracts in private construction; and
6. Perform such other functions as may be
assigned by the Authority.

Philippine
Overseas
Construction
Board

PDCB Programs
1) Policy Formulation & Monitoring

2) Arbitration & Adjudication Program

(performed by the Construction Industry
Arbitration Commission (CIAC)

Philippine
Overseas
Construction
Board

PDCB Programs
Construction
Industry
Arbitration
Commission (CIAC) created under Exec.
Order No. 1008
Construction Industry Arbitration Law
signed by Pres. F. Marcos on Feb. 4, 1985
PDCB maintains administrative supervision
over the CIAC .
Philippine
Overseas
Construction
Board

PDCB Programs
3. Supervise the implementation of
Constructors Performance Evaluation System
(CPES)
- Accreditation of CPES evaluators;
- Maintain data bank on the performance of
constructors in government projects; and
- Continuous improvement of the CPES
guidelines
4. Consolidate and Submit Monthly Report on
Blacklisted Contractors to the GPPB

Philippine
Overseas
Construction
Board

CPES
OVERVIEW

C
P
E
S
L
O
G
O

CONSTRUCTORS PERFORMANCE EVALUATION

SYSTEM (CPES)

A system of grading the

performance of a constructor in a
specific kind of project using a set
of criteria

LEGAL BASIS FOR CPES

IMPLEMENTATION
Section 12 of Annex E of the Implementing
Rules and Regulations (IRR) of R.A. 9184
(The Government Procurement Reform Act)
All
procuring
entities
implementing
infrastructure projects are mandated to
evaluate
the
performance
of
their
contractors using the NEDA-Approved CPES
Guidelines regardless of contract amount
and funding source. CPES shall be done
during construction and upon completion of

LEGAL BASIS FOR CPES

IMPLEMENTATION
Section 12 of Annex E of the Implementing
Rules and Regulations (IRR) of R.A. 9184
(The Government Procurement Reform Act)
Section 12, likewise, requires all
procuring entities to include in their
Projects
Engineering
and
Administrative Overhead Cost, the
budget for CPES implementation
pursuant to NEDA Board Resolution
No. 18 s. 2002

CPES VISION
To achieve an improved contractors
performance in government and private
construction contracts in the domestic and
overseas markets
leading to better consumer protection
and satisfaction
higher competitive ground for the
Philippine construction industry
set the stage for the entry of Filipino
constructors to global competition

CPES MISSION
Implement Contractors
Performance Evaluation
System (CPES) in all
Construction Projects (public
& private)
Maintain Contractors Performance
Information System

CPES OBJECTIVES
to establish a uniform set of
criteria for rating the
performance of constructors;
to develop a centralized base of
information on performance
rating of constructors for
purposes of prequalification,
quality improvement, etc.;
to contribute in ensuring that
the projects are undertaken in
conformity with the owners

WHO ARE COVERED BY CPES

All licensed constructors undertaking
infrastructure projects in the
Philippines
Local constructors (100% Filipino, max. 40%
foreign equity
Foreign constructors (100% Foreign, >40%
foreign equity)
Joint venture or consortium of Filipino and
Foreign

CPES PLAYERS

Implementing Agency (National, LGUs, State

Universities or Colleges, GOCCs, etc.)
* CPES Implementing Unit

Constructors

Government Procurement Policy Board (GPPB)

Philippine Domestic Construction Board

General Public

Composition of CPES Evaluation Team

Options

Group or
Team

In-house
CPE

Third Party CPE

Combination of InHouse and Third

Party CPE

One (1) CPE

occupying
supervisory
position who shall
act as the CPE
leader.
One (1) or more
CPE/s as
members.

Two (2) or more

CPEs from other
agencies and
not directly
involved in the
project to be
evaluated.

One (1) CPE

occupying
supervisory position.
One (1) or more
CPE/s from other
agencies, and not
directly involved
with the project to be
evaluated.
Philippine
Overseas
Construction
Board

Requirement for CPES Evaluation

(Individual Evaluator)
Options

Individual

In-house
CPE

Third Party
CPE

(1) CPE not

directly involved
with the project.
One

One (1) CPE

from other
agencies, and
not directly
involved with
the project to
be evaluated.

Combination of InHouse and 3rd Party

CPE
Individual One (1)
CPE not directly
involved with the
project.

The resource persons/witnesses, who have no voting power

Philippine
Overseas
Construction
Board

ROLE of CONSTRUCTORS
To provide the CPES evaluators with the documents
necessary in evaluating the contractors performance
(contract docs, implementing plans & schedules, materials
test reports, etc.)

To assign qualified technical person/s to go with the

CPES Team during project evaluation to serve as guide
and answer or clarify matters required by to the
evaluating team; and

To be present or assign his representative

in the meetings (pre-evaluation and exit
conferences) of the CPES evaluators

CPES GUIDELINES for INFRASTRUCTURE PROJECTS

DATE
FORMULATED
30 January
1998
20 July 2000
20 July
25 January
2000
2002
27 August
2008
25
13 January
Sept. 2011
2002

TYPE OF PROJECT
Roads, Bridges, Housing,
Buildings, Ports and Harbors
Irrigation and Flood Control
Telecommunications
Transmission and Distribution

Checklist for Diesel Power

Plant and Mooring Facilities for
Power Barges (NAPOCOR)

AGENCIES with CPES IU

1. Department of Public Works and Highways
(DPWH)
2. Department of Transportation & Communications
(DOTC)
3. National Housing Authority (NHA)
4. Local Waterworks Authority
5. Department of Education (DepEd)
6. National Irrigation Administration (NIA)
7. Department of Health (DOH)
8. Department of Science and Technology (DOST)

AGENCIES with CPES IU

9. Philippine Ports Authority (PPA)
10. Philippine Tourism Authority (PTA)
11. Public Estates Authority (PEA) now PRA
12. Pasig River Rehabilitation Commission
(PRRC)
13. Metropolitan Authority (SBMA)
14. Bases Conversion Development Authority
(BCDA)
15. National Transmission Corporation (Transco)

AGENCIES with CPES IU

16. Bangko Sentral ng Pilipinas (BSP)
17. Development Bank of the Philippines (DBP)
18. Philippine National Oil Corporation Energy
Development Company (PNOC-EDC)
19. University of the Philippines (UP)
20. Polytechnic University of the Philippines (PUP)
21. Supreme Court of the Philippines

AGENCIES with CPES IU

22. North Luzon Railway Corporation (NORTHRAIL)
23. Provincial Office of Bukidnon (LGU)
24. Provincial Office of Guimaras (LGU)
25. National Power Corporation (NAPOCOR)
26. Construction Industry Authority of the
Philippines (CIAP)

WHO MAY BE A CPES EVALUATOR

1. Physically fit to do field work;
2. Good moral character and have not been
involved of a crime involving moral
turpitude
3. PRC licensed Engineer or /Architect;
4. Minimum of five (5) years experience in
actual project implementation
5. Photo copy of service record or
certificate of employment

WHO MAY BE A CPES EVALUATOR

6. Certificate of Attendance in seminars, trainings
or formal studies in any of the following:
a. Quality control/assurance
b. Materials testing
c. Project implementation, management,
supervision and monitoring
d. Health & safety in Construction
e. Environmental protection & management
f. Other construction related courses

WHO MAY BE A CPES EVALUATOR

7. Completion of the 3-day CPES Accreditation
Seminar-Workshop and passing the case study;
8. Endorsement letter from the Head of Agency or
his duly Authorized Representative and the IU
Head;
9. Details of work experiences (name of projects
supervised, duration, location, and project owner,
office work experiences related to construction
project implementation such as : drafting, project
planning and conceptualization, AutoCAD, BAC
functions,and other relevant duties and functions
(Form C)

No. of ACCREDITED CPES EVALUATORS

AGENCY

Accredited
Evaluators

1. Bases Conversion Development Authority (BCDA)

2. Construction Industry Authority of the Philippines (CIAP)
3. Department of Agriculture (DA)

17
7
17

4. Department of Education (DepEd)

65

5. Department of Health (DOH)

22

6. Department of Public Works & Highways (DPWH)

7. Department of Transportation & Communications (DOTC)

173
32

Philippine
Overseas
Construction
Board

No. of ACCREDITED CPES EVALUATORS

AGENCY
10. Local Water Utilities Administration (LWUA)

Accredited
Evaluators
6

11. National Housing Authority (NHA)

56

12. National Irrigation Administration (NIA)

92

13. National Transmission Corporation (TRANSCO)

19

14. North Luzon Railway Corp. (NORTHRAIL)

20

15. Pasig River Rehabilitation Commission (PRRC)

24

16. Philippine National Oil Commission (PNOC-EDC)

16

17. Philippine Ports Authority (PPA)

75

18. Philippine Tourism Authority (PTA) or TIEZA

Philippine
Overseas
Construction
Board

No. of ACCREDITED CPES EVALUATORS

AGENCY
19. Polytechnic University of the Philippines (PUP)
20. Public Estates Authority (PEA) or PRA
21. Subic Bay Metropolitan Authority (SBMA)
22. Supreme Court of the Philippines (SCP)
23. University of the Philippines System (UP-System)
24. National Power Corporation (NPC)
25. Provincial Office of Guimaras (LGU)
26. Provincial Office of Bukidnon (LGU)
Total (As of August 2011)

Accredited
Evaluators
4
4
18
6
32
18
7
31
805
Philippine
Overseas
Construction
Board

STATUS OF ACCREDITED CPES EVALUATORS

AS OF AUGUST 2011

PARTICULAR
S

Number

Percent

Active
Evaluators

458

57

Inactive
Evaluators

239

30

Evaluators
Separated from
the service

108

13

Philippine
Overseas
Construction
Board

Status of CPES Implementation

14

Agencies already implementing CPES

LGUs implementing CPES

12

Agencies ready to implement CPES

14

Agencies who signified intention to implement

CPES

CPES RATING
The qualitative description and numerical value of the
results of evaluation on the performance of
contractors applying the CPES
It is the result of consolidating or adding the
corresponding points given to the items of works as
per applicable guidelines of the CPES.
Rating is done at least twice, 1) during construction
when the projects is at least 30% accomplished, and
2) upon completion or when the project is 100%
completed

CPES RATING

Qualitative
Description
Outstanding

Numerical
Rating
> 96%

Very Satisfactory

> 89% < 96 %

Satisfactory

> 82% < 89 %

Unsatisfactory

> 75% < 82 %

Poor

< 75%
DC during construction

UC - upon completion

USE of CPES RATING

a. Eligibility Check of Constructors (at
least satisfactory);
b. Agency Shortlist for Negotiated
Procurement under Section 53 (a), (b),
(c), & (d) of the IRR of RA 9184 (at least
satisfactory);
c. Post-Qualification - for the review of the
constructors technical capabilities
pursuant to Section 34.2b of the IRR-A of
RA 9184 to ensure that:
* The constructor has no zero (0) rating

USE of CPES RATING

d. Awarding of Contracts (no rating
lower than satisfactory );
e. Project Monitoring and Control Audit
and Quality Control of Construction
Projects;
f. Blacklisting of Constructors - a
constructor with a CPES final rating of
Poor or Unsatisfactory in any of his
projects shall be blacklisted by the agency
and will not be allowed to participate in
any public bidding for any government

USE of CPES RATING

g. Reference for Policy
Formulation/Review;
h.Granting of Awards & Recognition
(for outstanding rating) ;
i. PCAB Registration and
Classification (unsatisfactory rating
may be a ground to deny the
classification applied for); and
j. Adopting measures to further
improve the performance of

CPES BENEFITS to the

CONSTRUCTION INDUSTRY
Serves as an effective tool for monitoring,
technical audit, quality control and assurance,
project inspection and contract management of
construction projects;
Improved quality and timely completion of
projects
A tool for weeding out incompetent constructors
in qualification process;
Improved capability of constructors to
implement projects

Philippine
Overseas
Construction
Board

CPES BENEFITS to the

CONSTRUCTION INDUSTRY
Improved compliance of constructors to
environment, safety, and health programs
to address related concerns;
Contribute in minimizing graft &
corruption in implementing
infrastructure projects; and
Improve quality of infrastructure projects
in the long run

Philippine
Overseas
Construction
Board

Data Banking of CPES Reports

PDCB consolidates CPES Reports submitted by the
different implementing agencies;
Data bank contains info on CPES Rating of
contractors on a particular project subjected to
CPES evaluation;
Consolidated report release quarterly are published
in the GPPB website at:
http://www.gppb.gov.ph

Philippine
Overseas
Construction
Board

HAITI Presidential Palace

before the earthquake (2010)

HAITI Presidential Palace

after the earthquake

B
E
F
O
R
E
A
F
T
E
R

70

Philippine
Overseas
Construction
Board

71

Philippine
Overseas
Construction
Board

72

Philippine
Overseas
Construction
Board

73

Philippine
Overseas
Construction
Board