CIAP’s service with integrity marks its 42nd-anniversary celebration

AS the country’s economic conditions progress, the Construction Industry Authority of the Philippines (CIAP) is building the industry through service and integrity.

On its 42nd anniversary, spurred by this year’s theme, ‘Building the industry through service and integrity’, the Department of Trade and Industry (DTI)-CIAP will continue to serve by developing and implementing programs towards a vibrant and globally competitive construction industry.

Trade Secretary Alfredo Pascual said over the years, the construction industry has been one of the main contributors to the country’s gross domestic product (GDP). For the first to the third quarter of 2022, it contributed 12.2 percent to the country’s GDP.

“We remain committed to building with integrity, a value espoused in the Philippine Construction Industry Roadmap 20202030,” Pascual said.

DTI recognizes the growth and development of the construction industry as a major contributor to nation-building. The construction industry is an extensive sector which provides opportunities for the growth of other sectors, generating income, and creating jobs.

“To achieve our endeavors, we call on our partners in government and the private sector to continue to provide invaluable support to the programs of CIAP and its implementing arms. These arms include the PCAB, Philippine

Overseas Construction Board (POCB), Philippine Domestic Construction Board

(PDCB), Construction Manpower Development Foundation (CMDF), and Construction Industry Arbitration Commission (CIAC),” he added.

Pascual said they have set out the path to proactively provide the foundations for infrastructure development. “Together, we work to support President Ferdinand R. Marcos, Jr.’s administration in its “Build Better More” program.”

“Let us build more and build better,” he said, adding that the program enables key infrastructures that will enable and sustain economic growth.

The private sector is expected to leverage such prioritization, pursuing private construction projects in the domestic and overseas markets.

DTI-CIAP will take off from these developments, using them to advance the construction industry for the country’s economic transformation, and fostering the optimism that the construction industry will be more robust, vibrant, and resilient.

Ireneo Vizmonte, DTI undersecretary and CIAP alternate chairman said, the celebration is another milestone for the CIAP, as it endures in its steadfast commitment to promote, accelerate, and regulate the construction industry.

Proof of the ClAP’s commitment is the Philippine Construction Industry Roadmap 2020- 2030, in which the Philippine construction industry is envisioned as a key global partner in building nations.

“In realizing this vision, we are confident that the ClAP will continue to encapsulate its promises of “Tatag at Tapat” or Building with Integrity through strong partnerships with stakeholders in implementing policies and programs, which support productivity improvements, sustainability awareness and industrialization as well as increase globally competitive and allied players, and strengthen and empower institutions,” Vizmonte said.

He added that ClAP and industry stakeholders will continue to rally behind this vision in the years to come.

Doris Gacho, CIAP executive directorin-charge said the hardwork and collective efforts of the people behind CIAP, including the bosses, their partners in government and the private sector helped spur the growth and development of the construction industry.

“We would like to highlight the strengthened efforts of CIAP in building the construction industry through our utmost commitment and service, delivered with integrity, honesty, and excellence. The path ahead and beyond may be challenging and unpredictable but through our solidarity and passion, realizing our targets and surpassing our goals are possible,” she said.

Construction industry remains a growth driver

According to the Philippine Statistics Authority (PSA), the Philippine economy posted a 10.1 percent growth in the first nine months of 2022. GDP grew by 7.7 percent from the first to third quarters of 2022. The GDP growth was driven by the performances of the services sector at 8.9 percent and the industry sector at 7.5 percent. Growth in the industry sector was boosted by the strong performances of construction at 15.8 percent, mining and quarrying at 6.2 percent, manufacturing at 5.3 percent, and utilities at 4.8 percent.

The construction industry contributed 62 percent to overall capital investments or Gross Capital Formation (GCF) in the country. The share of the construction industry to total employment of the country is robust at 9.44 percent from January to September 2022. It continued to provide job opportunities, employing on the aver

age a total of 4.388 million workers in the first nine months, as compared to the 4.369 million in the first nine months of 2021.

Total foreign exchange remittances by Philippine Overseas Construction Board (POCB)-registered contractors/consultants in the first nine months of 2022 amounted to US$ 251.004 million, which provided high-value employment to 20,013 Filipino construction and related-engineering services human resources.

Construction output, as measured by the Gross Value Added (GVA) amounted to P982.8 billion, an increase of 15.8 percent from P848.5 billion in the first nine months of 2022. The growth was due to the acceleration in public construction activities.

Construction investments, as measured by the gross value in construction (GVC) is at Php 2.07 trillion, an increase of 14.5 percent in 2022 compared to the P1.808 trillion last year.

Government infrastructure investments valued at P834.4 billion, increased by 14.8 percent due to the implementation of infrastructure projects under the Build Build Build program.

Private construction activities covering financial and non-financial corporations valued at P692.0 billion increased by 20.3 percent, and households and non-profit institutions serving households (NPISHs) valued at P544.4, increased by 7.5 percent. Growth is brought by the continuous demand for high-rise residential condominiums and commercial buildings. The construction industry is seen to be in the limelight as the government continues to implement infrastructure programs.

Construction industry shows a positive outlook

Simply analyzing and addressing the impacts brought by the pandemic and the war in Ukraine may be insufficient, for the construction industry to emerge stronger from these crises. It is vital to develop a deep understanding of the changing market. To detect and assess these shifts, the first step is to lay out the consequences of new behavioral and economic trends to determine which specific structures or projects will most likely grow or contract in demand. The pandemic forced people to stay at home.

As a result, there is an increase in demand for residential dwellings that are capable of essential facilities, such as office space. The changes in the constructors’ project demand experience during the pandemic may be used, as a reference and guide for the fluctuating construction market.

Reduced workforce due to health and safety requirements was among the most prominent impacts of the pandemic. With less manpower, productivity would eventually decrease. Different strategies were used to maintain acceptable operational performance and productivity levels despite the fewer personnel. Flexible work arrangements were implemented to reduce the traffic inside the workplace, without decreasing the necessary number of work hours. This included remote set-up, staggering work shifts, and a skeletal workforce.

Additional costs put more financial burden on the contractors. It was crucial to develop strategies to extend the cash flow and continue operations, such as careful monitoring and use of resources. The Republic Act No. 11494 or the Bayanihan to Heal as One Act offered leeway regarding existing and future loans. A 60-day grace period was given for the payment of all existing loans and the relaxation of the requirements for any business-related loans and financial accommodations.

The Bayanihan Act aided in the construction industry’s recovery by prioritizing the budget for Local Infrastructure Programs of the Department of Public Works and Highways (DPWH). The law also directed DPWH to expedite existing infrastructure projects to generate jobs and aid in the recovery of the local economy.

As an archipelago, the country requires efficient and modern transport infrastructure, logistics facilities, and power infrastructure to facilitate and sustain socio-economic growth to improve our global competitiveness and promote physical and digital integration. The use of digital tools and modern methods is the key.

Infrastructure to get P718 billion budget

The P5.268 trillion proposed 2023 national budget, includes funds for programs and projects that will transform the country’s economy towards inclusivity and sustainability.

According to the 2023 proposed national budget, around P718.4 billion will be allocated to infrastructure, which is one of the priority sectors.

During the first State of the Nation Address of President Marcos Jr., said the backbone of an economy is infrastructure. He wants to continue and expand the infrastructure program of his predecessor. “We must keep the momentum and aspire to build better, more,” Marcos said.

CIAP’s thrust is rooted in the Philippine Construction Industry Roadmap (PCIR) 2020-2030. Both public and private sector stakeholders have committed to implement the vision, strategies, action plans and values of the construction industry.

PCIR aspires a P130 trillion worth of construction business that will be generated starting 2020 to 2030 by providing strong foundations of infrastructure development. Leveraged by a determined private sector, expanding and multiplying the collective physical investments will support accelerated, sustainable, and inclusive national development.

To achieve this vision, CIAP identified 7+1 Action Plans, which include CIAP Revitalization Plan; Communications Plan; Infrastructure Masterplan Development Advocacy Plan; Policy Reform Advocacy Plan; Government-Industry-Academe Partnership Action Plan; and Construction Services Exports and Outsourcing Plan. These support the continuity of CIAP’s actions to spur the growth and development of the construction industry.

Enhancing trainings and seminars

CMDF strategically delivered human resource development (HRD) initiatives and interventions centered on building capacities and raising the competitiveness of the country’s construction workforce.

For the third quarter (Q3) of 2022, CMDF has implemented 148 programs, benefitting a total of 7,459 construction professionals and workers. Apart from performing its core functions, CMDF has explored various ways in improving its capacity and capability to upskill the Filipino construction workforce while aligning its thrust with the government’s 8-point socioeconomic agenda.

CMDF creates quality jobs by increasing employability, encouraging research and development and innovation, and enhancing the digital economy. These key supplemental initiatives include the Philippine Skills Framework for Construction (PSFC).

CMDF, in collaboration with key industry stakeholders, initiated the development of a forward-looking skills framework that will extensively document the skills and competencies required for all occupational roles in the construction industry.

The PSFC will provide structured career pathways that will guide members of the construction workforce to make sound career decisions. In the same way, it seeks to provide the Academe with vital information on sector trends, and emerging industry skills requirements for the development of progressive and responsive curricula. Skills Olympics: Digital Bridge Design and Prototype Construction Competition (Intercollegiate Edition).

The competition immersed the students in realistic experiences and real-world conditions to promote a genuine understanding of structural design, construction methodologies, and project management techniques.

Building upon the idea of digitization and automation, a partnership with Bentley Education and Bentley Systems was forged to provide the necessary design software training to upskill the students throughout the competition’s phases.

Implementing the construction industry roadmap

The CIAP and its implementing Boards—PCAB, Philippine Overseas Construction Board (POCB), Philippine Domestic Construction Board (PDCB), Construction Manpower Development Foundation (CMDF), and Construction Industry Arbitration Commission (CIAC) continue to champion the construction industry through formulating and implementing policies and programs to support its growth and development.

CIAP and its implementing boards crafted the Philippine Construction Industry Roadmap (PCIR) 2020-2030 in partnership with both public and private stakeholders. The PCIR continues to revitalize and modernize the Philippine construction Industry to become a global partner in building nations.

Leveraging on its network, CIAP invoked the support of its partners, for House Bill 8151, “Proposed 30-year National Infrastructure Program Act of 2021,” authored by Representative Romeo Momo Sr. Orientation briefings, meetings and information sessions were organized with valued partners including the Davao Constructors Association (DACCI) and the Philippine Constructors Association Inc. (PCA) with the Council of Leaders and DTI–Undersecretary Vizmonte to discuss the industry’s “Respond, Recover, Return, Re-imagine, Reform amidst the coronavirus pandemic”.

Anchored on the PCIR, CIAP mobilized stakeholders’ support for the “30 Year National Infrastructure Program Act of 2021,” which seeks to provide a framework for infrastructure development in the next 30 years and ensure resource allocation and continuity in the development and implementation of infrastructure projects. This has been discussed and approved by the House of Representatives Committee on Public Works and Highways (CPWH), where several amendments were proposed.

CIAP participated in several construction events such as the PhilConstruct 2022, held in Manila, Clark, Cebu, and Davao to showcase CIAP’s programs and services for stakeholders.

CIAP held its first stakeholders meeting under the new administration, attended by stakeholders and representatives of different contractor associations from different regions. The meeting was used as a venue to surface issues and proposed strategies to address procurement inaccuracies, as well as taxation concerns, among others.

Automating PCAB’s licensing

PCAB continues to develop strategies to make licensing applications faster without compromising the strict implementation of Republic Act (RA) No. 4566 or the “Contractor’s License Law” that ensures the safety of the public, by licensing qualified and reliable contractors to undertake construction in the country.

PCAB’s digitized all functionalities including the new type of license, “Pakyaw” for smaller (micro) contractors effective Sep. 30, 2022. Continuous promotion of this novel license will be undertaken to support the government’s call for upskilling and capacity building. The initiative supports the President’s agenda on improving bureaucratic efficiency with streamlined processes and the application of new technology towards a digital economy.

PCAB launched the “Pakyaw” Contractors License in August 2022 to provide a facility to legitimize the operation of small-scale contractors. To date, there are 25 “Pakyaw” contractors’ license issued by PCAB. PCAB received its ISO 9001:2015 Certification on Nov. 2, 2022.

In June 2020, at the height of the Covid-19 quarantine restrictions, the PCAB Online Licensing Portal, pcab.construction.gov.ph / pcabgovph.com was launched through the technical and IT assistance from the United States Agency for International Development-Delivering Effective Governance for Competitiveness and Inclusive Growth Project (USAid-Deliver Project). The portal was initially designed to facilitate the application of 15,000+ contractors, mandated by law to renew their licenses on June 30.

Last September 2022, PCAB proudly announced that all types of applications are now 100 percent fully automated. These are Regular Contractors License, Special Contractors License, Standalone Government Registration for Government Infrastructure Projects, also known as ARCC.

The “Pakyaw” Contractors License Application is a notable addition to the core application types. It was launched on August 2022 to provide a facility to legitimize the operation of small-scale contractors and offer greater growth opportunities.

CIAC in retrospect

The Construction Industry Arbitration Commission (CIAC), which carries a quasi-judicial function, makes the venue available to resolve claims and disputes, arising from contracts entered into by parties involved in construction. From January to October, 26 arbitration cases were resolved.

CIAC aims to provide a fair and expeditious resolution of construction disputes as an alternative to judicial proceedings. Over the years, policies and programs have been developed to ensure the attainment of its objective. One of its programs is the continued accreditation of construction arbitrators whose main task is to resolve all construction-related disputes filed before the CIAC. The applicants for accreditation training are men of distinction in whom both the business and government sectors can have confidence.

The CIAC started with only 22 accredited arbitrators belonging to the first batch. The accreditation rites and oath-taking ceremonies of the first batch comprising 15 successful candidates and seven members of the training faculty were held on December 14, 1988, with Supreme Court Chief Justice Marcelo H. Fernan as the inducting officer.

To sustain the sufficiency of its pool of accredited arbitrators who will render quality service to the Commission, the CIAC monitors its number and religiously conducts accreditation of arbitrators. Thus, after the first batch of accreditation of arbitrators, the same was followed by several batches.

In 2021, the CIAC held the accreditation of its 10th batch of construction arbitrators. Out of 63 applicants, 28 passed the screening process and rigorously underwent the training course, which culminated on 06 June 2022.

On 12 July 2022, the oath-taking ceremony was held with no less than the Chief Justice of the Supreme Court, Chief Justice Alexander G. Gesmundo, as the Inducting Officer. The induction of the 28 successful trainees was done via Zoom platform, wherein the Chief Justice was in his sala at the Supreme Court while the inductees were at Hotel Jen in Roxas Boulevard, Pasay City.

To date, a total of 186 arbitrators were accredited by the CIAC; 55 of them died; five have resigned and four were on leave. A total of 12 accredited arbitrators remained on the roster with 96 arbitrators on the active list. The remaining 26 arbitrators are either on the reserved list or have yet to complete the observation and reportorial requirements to be eligible for an appointment to handle a case.

To continuously update its accredited arbitrators on the latest trends and jurisprudence in construction, and also to apprise them of new policies, the CIAC conducts four webinars on Mediation and Arbitrators Continuing Education (MACE) Program each year.

The CIAC will continue to aspire for the betterment of its organization, operation, and services for its clientele and its remarkable contribution to the construction industry. It plans to expand or introduce other forms of alternative dispute resolution particularly emergency arbitration.

Promoting overseas construction and market development

The POCB is mandated to develop and promote the corporate exports of construction and related engineering services. The construction industry is making its name not only within the country but in the international market, as well. Construction materials suppliers/ manufacturers are innovating towards the needs of the global consumer.

A total of 36 POCB registered corporate service exporters have ongoing overseas construction projects amounting to $ 251.004 million, providing high-value employment to 20,013 Filipino construction and related engineering services human resources.

It organized successful promotional events such as CEO forum or stakeholder meeting for the construction and related engineering services sector held during the Pholconstruct Mindanao and Manila. Experts tackled current issues in the construction sector to provide insights and solutions to address these problems.

Further developing the domestic construction

Aligned with the 8-point socioeconomic agenda of the government on improving infrastructure, the agency through the Philippine Domestic Construction Board (PDCB) helps ensure efficiency, quality and safety in government construction projects, by promoting the implementation of the Constructor’s Performance Evaluation System (CPES) in the government infrastructure/tendering agencies.

To date, 110 out of 1,828 or 6.01 percent of infrastructure agencies are implementing the CPES. As of October 2022, there are 3,018 accredited CPEs, an 18 percent increase from the December 2021 figure of 2,553.

PDCB strengthened the promotion of CPES and CIAP Doc. 102 through training and accrediting trainers. They promote and train users of these vital programs to ensure efficient, quality, and safe construction projects.

PDCB conducted various studies relevant to the construction industry such as the increase in the price of construction materials and provided comments on various Senate bills and House bills to promote competition and investments in the construction contracting services industry.

Anchored on the Roadmap’s Policy Reform Advocacy Plan, the PDCB continues to work with stakeholders to push for reforms in Quarry, Right of Way Act, Security of Payment (SOP), and Sustainability and Resiliency.