Hiring a contractor for your house: the PCAB license and what the builder answers for
Two laws decide most of it. The Contractors' License Law, Republic Act 4566, says who may build for you. The Civil Code says what the builder, and the architect or engineer who drew the plans, answer for once the house stands. Each point below carries the section it comes from.
What PCAB is
PCAB is the Philippine Contractors Accreditation Board. Presidential Decree 1746 of 1980 created it under the Construction Industry Authority of the Philippines and abolished the old Licensing Board, whose power under RA 4566 to issue, suspend and revoke contractors' licenses it carries on (PD 1746, Section 4; RA 4566, Section 5). A PCAB license is that license.
Does a small house job need a licensed contractor?
The Act treats anyone who builds, alters, repairs or adds to a building as a contractor, “deemed synonymous with the term ‘builder’” (Section 9(b)), and prohibits doing it “for a price, commission, fee or wage” without a license. Since RA 11711 of 2022 that carries a fine plus a share of the project cost, and a one-year bar from getting a license (Section 35(a)).
The only exemption by size is Section 13: work whose total contract price, labour and materials included, is under a ceiling the Act set in pesos in 1965 and the 2022 amendment did not change, so it is set at 1965 prices. It does not apply where the work is part of a larger job, or where a job is split into small contracts to stay under it. An architect or civil engineer acting solely as one is outside the Act (Section 14).
How to check a license
- Open PCAB's verify page at pcab.construction.gov.ph/verify.
- Choose the set of records to search. The page lists regular, special and pakyaw licenses, exemptions, and suspended or revoked licenses.
- Type the contractor's name in the search box and open the record. It shows the contractor's particulars, the license particulars and the registration particulars.
- Check the expiry date the record shows. A license is issued for one year, and a contractor in good standing for ten years or more may renew every two or three years (RA 4566 Sections 23 and 38, as amended by RA 11711).
Steps 1 to 3 from PCAB's own guide, How to Verify a Contractor using the PCAB Portal Verification Website; step 4 from the Act.
Fifteen years, then ten
Article 1723 is the one to know before you sign. If the house collapses within fifteen years of completion because of a defect in the plans or in the ground, the engineer or architect who drew the plans is liable. If it collapses within the same fifteen years because of defects in the construction, inferior materials the contractor supplied, or a breach of the contract, the contractor is liable. An engineer or architect who also supervised the work is solidarily liable with the contractor. After a collapse, the action must be brought within ten years.
The PCAB license and the contract, section by section
Each row gives the point, the rule in short, and the section it comes from.
Who needs the license
| Point | In short | Source and condition |
|---|---|---|
| Anyone who builds, alters, repairs or adds to a building | a contractor | RA 4566 Section 9(b): "contractor" is "deemed synonymous with the term 'builder'", and includes subcontractors and specialty contractors. The prohibition reaches work done "for a price, commission, fee or wage" (Section 35(a)) |
| Bidding for, contracting for, doing or supervising construction work without a license | prohibited | RA 4566 Section 35(a), as replaced by RA 11711 (2022): a fine set in pesos plus a share of the project cost, and no license for one year after being found guilty |
| Showing someone else's license, or an expired or revoked one | prohibited | RA 4566 Section 35(d), as replaced by RA 11711: a fine and imprisonment of 1 to 6 years |
| Small work | exempt below a 1965 ceiling | RA 4566 Section 13: work whose total contract price, labour and materials included, is under a ceiling set in pesos in 1965, which the 2022 amendment left unchanged, so it is set at 1965 prices. Not where the work is part of a larger job, or split into small contracts to avoid the Act |
| An architect or civil engineer acting solely as one | outside the Act | RA 4566 Section 14: the Act does not apply to a registered civil engineer or a licensed architect "acting solely in his professional capacity" |
| Selling or installing finished products that do not become part of the structure | not covered | RA 4566 Section 11 |
The license itself
| Point | In short | Source and condition |
|---|---|---|
| Who issues it | PCAB | PD 1746 (1980) Section 4 created the Philippine Contractors Accreditation Board under the Construction Industry Authority of the Philippines and abolished the Licensing Board, which RA 4566 Section 5 had empowered to issue, suspend and revoke licenses |
| How long it lasts | one year | RA 4566 Section 23 as amended by RA 11711: from the date of issuance. Renewal can be every two years for a contractor in good standing for 10 to 25 years, and every three years from 25 (Section 38 as renumbered) |
| The public list of licensed contractors | published | RA 4566 Section 26. PCAB's verify page lists regular, special and pakyaw licenses, exemptions, and suspended or revoked licenses |
What the builder answers for
| Point | In short | Source and condition |
|---|---|---|
| The work has the agreed qualities and no defect that lessens its value or use | at the contractor's cost | Civil Code Article 1715: the owner may require the defect removed or the work redone; if the contractor refuses, the owner may have it done at the contractor's cost |
| A clause waiving or limiting the contractor's liability for defects | void if fraud | Civil Code Article 1716 |
| Accepting the finished work | ends claims for visible defects | Civil Code Article 1719: acceptance relieves the contractor of liability for any defect, unless the defect is hidden and the owner, given his own expertise, could not be expected to recognise it, or the owner expressly reserves his rights. Collapse claims under Article 1723 survive acceptance |
| A building that collapses from a defect | 15 years | Civil Code Article 1723, in the figure above. Acceptance "does not imply waiver" of these claims |
| The work of the contractor's own workers | the contractor's | Civil Code Article 1727; and under Article 1728 the contractor is liable for all the claims of its workers, and of third persons for death or physical injury, during construction |
The price and the contract
| Point | In short | Source and condition |
|---|---|---|
| A fixed-price contract and dearer labour or materials | no increase | Civil Code Article 1724: unless the plans changed, the change was authorised by the owner in writing, and the added price was fixed in writing by both |
| When the price is due | on delivery | Civil Code Article 1720: at the time and place of delivery, unless the contract says otherwise; part by part where parts are priced separately |
| Stopping the project | owner may withdraw | Civil Code Article 1725: at will, even once work has begun, paying the contractor's expenses, work, the usefulness the owner gains, and damages |
| Unpaid workers and material suppliers | may claim from the owner | Civil Code Article 1729: up to what the owner still owes the contractor when the claim is made. Paying the contractor before payment is due does not reduce what they can claim |
Where this meets your project
- Before you sign. A fixed price holds against dearer labour and materials, and a price increase for a change to the plans needs the owner's written authority and the added price agreed in writing by both (Article 1724). Keep every change in writing.
- On completion. Accepting the work ends claims for defects you could see, unless you expressly reserve your rights (Article 1719), so the walk-through before acceptance matters. Collapse claims under Article 1723 survive it. The occupancy permit guide covers the certificate of completion and the site logbook.
- Who signs the drawings. The designer liable under Article 1723 is the one who drew the plans; the house plan guide sets out who signs each sheet.
Holding a builder to the plans, the contract and the schedule is what project coordination and contractor liaison is for.
What this page does not cover
- The Board's rules. PCAB's own rules add detail on licenses, such as their kinds and what each allows. They are not summarised here; the verify page shows a contractor's license particulars.
- The amounts. The Act's fines and the small-work ceiling are set in pesos and are not printed here.
- A dispute over your contract. That turns on the contract and the facts, and is a lawyer's work.
Sources: as published by the Lawphil Project, Republic Act No. 4566, Republic Act No. 11711 and Presidential Decree No. 1746; the Civil Code, Articles 1713 to 1729, as published by the Official Gazette; and PCAB's guide to its verify page.