CONSTRUCTION INDUSTRY ARBITRATION LAW. EXECUTIVE ORDER NO.

1008 February 4, 1985

Government's solution to the increasing unsettled disputes in the construction industry which is caused by unsettled
contractual claims resulting to long drawn-out litigations.
POLICY
To provide a fair and expeditious resolution of construction disputes as an alternative to judicial proceedings, aim to restore
harmonious relationships between and among the parties.
Arbitration
Considered as a more reasonable alternative to court action. Since only persons who are knowledgeable of the construction
business are appointed as arbitrators to act upon cases, it is guaranteed that prompt decisions can be easily attained.
JURISDICTION
CIAC have the original and exclusive jurisdiction over construction disputes arising from or in connection with contracts
entered into by parties involved in construction in the Philippines. The dispute may eitherbe before or after the completion of
the contract, or after the abandonment or breach thereof. Either involves the government or private contracts.
Jurisdiction of the CIAC includes but is not limited to:
1. violation of specifications for materials and workmanship; 2. violation of the terms of agreement; 3. interpretation and or
application of contractual provisions; 4. amount of damages and penalties; 5. commencement time and delays; 6.
maintenance and defects; 7. payment default of employer or contractor; 8. and changes in contract cost.
Construction dispute
-those between or among parties to, or otherwise bound by an arbitration agreement, directly or by reference, whether
parties are: project owner, contractor, subcontractor, fabricator, project manager, design professional, consultant,
quantity surveyor, bondsman or issuer of an insurance policy in a construction project.
Excluded from the coverage. Disputes arising from employer-employee relationships, which shall continue to be covered
by the Labor Code of the Philippines.
HOW DOES THE CIAC ACQUIRES JURISDICTION?
Existence of an ARBITRATION AGREEMENT in the contract of the disputing parties is an essential requisite.
But what if there is no arbitration clause in the contract?
The disputing parties may sign a joint statement of issues of the dispute(s) and/or a voluntary agreement to undertake
construction arbitration.
Written agreement or submission to arbitrate may be in any form, either telegrams, emails, or any other mode of
communication and these shall be valid although unsigned, what is important is that, they express the clear intent of the
parties to arbitrate.
ARBITRATION AGREEMENT or SUBMISSION AGREEMENT must be alleged in the COMPLAINT.
These may be evidenced by the exchange of communication by the parties which can be understood that they have mutually
consented to submit their dispute to arbitration. The Complaint shall be accompanied by such evidence of communication.
ABSENCE OF ARBITRATION/SUBMISSION AGREEMENT
If a COMPLAINT was filed without the required arbitration clause or subsequent submission agreement, the CIAC
SECRETARIAT will notify the RESPONDENT within 3days from the submission of the COMPLAINT if he is willing to avail of
the construction arbitration to resolve their dispute. It must be clearly expressed in his ANSWER.

RESPONDENT'S REFUSAL TO ANSWER COMPLAINT or FILING OF A MOTION TO DISMISS FOR LACK OF

JURISDICTION
It shall be deemed refusal to submit for arbitration which will cause the dismissal of the complaint. However, it will be without
prejudice to its refiling upon a subsequent submission.
Jurisdictional challenge
To be resolved by the appointed arbitral tribunal.
Possible Grounds: dispute is not a construction dispute, or Respondent was represented by one without capacity to enter
into a binding arbitration agreement, or agreement or submission is not valid, or does not cover the particular dispute sought
to be arbitrated, or other issues of interpretation or non-fulfillment of pre-conditions to arbitration that are raised therein.
Non-waiver of jurisdictional challenge
- A party does not waive its right to challenge the jurisdiction of CIAC by any of the following acts:
a) participating in the nomination process including challenging the qualifications of a nominee;
b) praying for extension of time to file appropriate pleading/motion to dismiss;
c) opposing an application for interim relief;
d) filing of a motion to dismiss/suspend.
Any party to a construction contract who desires to avail of the arbitration shall file its REQUEST FOR ARBITRATION in the
prescribed form and number of copies to the SECRETARIAT of the CIAC.
What shall accompany the documents required?
a. The names and addresses of the parties; b. A statement of the case/narration of the facts; c. The issues of the case;
d. The list of nominees for arbitrator(s) in order of preference; e. Construction contract; f. Agreement to arbitrate;
g. Documents establishing the circumstances of the case; and h. In case of government contracts, communications made
with the highest authority for exhaustion of administrative remedies.
But, what about if the CLAIM is against the government, are there any conditions?
The claimant against the government, in a government construction contract, shall state in the complaint/request
for arbitration that
1) all administrative remedies have been exhausted, or
2) there is unreasonable delay in acting upon the claim by the government office or officer to whom appeal is made, or
3) due to the application for interim relief, exhaustion of administrative remedies is not practicable.
The CIAC Secretariat shall within three (3) days from filing, transmit to the Respondent a request for his Answer, attaching
thereto a copy of the complaint and the Request for Arbitration together with the annexed documents.
Submission to CIAC jurisdiction
An arbitration clause in a construction contract or a submission to arbitration of a construction dispute shall be deemed an
agreement to submit an existing or future controversy to CIAC jurisdiction, notwithstanding the reference to a different
arbitration institution or arbitral body in such contract or submission.
What if the RESPONDENT fails or refuses to arbitrate?
- Where the jurisdiction of CIAC is properly invoked by the filing of a Request for Arbitration, failure of RESPONDENT despite
due notice which amounts to his refusal to arbitrate, it shall not stay the proceedings notwithstanding his absence or lack of
participation. CIAC shall appoint the arbitrator/s in accordance with Rules. Arbitration shall proceed, and the award shall be
based on the CLAIMANT'S evidence.

WHAT IF RESPONDENT APPEARS?

Before giving of the award, if Respondent who had not earlier questioned the jurisdiction of the Tribunal, appears and offers
to present his evidence, in cases where his failure to appear is justified, the Arbitral Tribunal may reopen the proceedings,
require him to file his answer with or without counterclaims, pay the fees, where required under Rules, and be allowed to
present evidence, but already with limited right to cross examine witnesses already presented in the discretion of the
Tribunal. Evidence already admitted shall remain. The Tribunal shall decide the effect of such controverting evidence
presented by the Respondent on evidence already admitted prior to such belated appearance.
What are the instances wherein arbitration can not proceed?
Absence of arbitration clause in the contract of the parties and parties does not mutually consent to submit the dispute for
arbitration. Claimant/s shall be informed of this fact.
Time to answer
The Respondent shall, within fifteen (15) days from receipt of the Request for Arbitration/Complaint, file its answer thereto
including such counterclaim/s as it may assert. For justifiable reason/s, Respondent may apply to CIAC for an extension of
time to file its answer. If Respondent fails to do so, the arbitration shall proceed in accordance with these Rules.
Confidentiality of proceedings
The arbitration proceedings shall be considered confidential and shall not be published except
a. with the consent of the parties, or b. when necessary in case resort to the Court is made under the Rules of Court.
Violation of confidentiality
Any person who violates the immediately preceding confidentiality provision shall be subject to the following sanctions:
If the violator is a lawyer, administrative action or proceeding to be conducted by CIAC, with proper notice and hearing, for
inhibition or prohibition from appearing as counsel for any party in any arbitration case before CIAC for a period not
exceeding six (6) months; without prejudice to suspension or disbarment action before the Integrated Bar of the Philippines
(IBP), at the instance of CIAC.
If the violator is a duly licensed and registered professional, administrative/ disciplinary action before the Professional
Regulation Commission (PRC), at the instance of CIAC.
COMPOSITION OF THE BOARD.
The Commission shall consist of a Chairman and 2 members, all of them are to be appointed by the CIAP Board upon
recommendation by the members of the PDCB,
FUNCTIONS OF THE COMMISSION: refer to the slide
The Commision shall have the authority to lay down its rules and regulations to be followed along with the discharge of its
duties.
COMPENSATION. The members of the Commission shall receive such per diems and allowances as may be fixed by the
CIAP from time to time.
TERM. The term of office of the members of the Commission shall be 6 years; Provided, however, That of the ommission
members first appointed, the Chairman shall hold office for 6 years, the other member for 4 years, and the third, for 2 years.
He appointment to any vacancy in the Commission shall only be for the unexpired portion of the term of the predecessor.
QUORUM. The presence of a majority of the members of the Commission shall constitute a quorum for the transaction of
business.
DELIBERATIONS. The decisions of the Commission shall be arrived at by majority vote.

Any important matter that needs to be tackled and resolved by the Commission shall be decided upon by the majority vote of
the Commission.
SECRETARIAT. The Commission shall have a Secretariat which shall be headed by the EXECUTIVE DIRECTOR, who
shall be responsible in receiving requests for arbitration, and other pleadings, notifying parties thereto, and fixing and
receiving the necessary fees and costs. It shall like wise be the duty of the EXECUTIVE DIRECTOR to notify the parties of
the awards made by the arbitrators.