Eo No. 1008

February 4, 1985
EXECUTIVE ORDER NO. 1008
CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTION

INDUSTRY OF THE PHILIPPINES
WHEREAS, the construction industry provides employment to a large

segment of the national labor force and is a leading contributor to the gross
national product;
WHEREAS, it is of vital necessity that continued growth towards
national goals shall not be hindered by problems arising from, or connected
with, the construction industry;asia dc
WHEREAS, there is a need to establish an arbitral machinery to settle

to such disputes expeditiously in order to maintain and promote a healthy
partnership between the government and the private sector in the
furtherance of national development goals;
WHEREAS, Presidential Decree No. 1746 created the Construction
Industry Authority of the Philippine (CIAP) to exercise centralized authority
for the optimum development of the construction industry and to enhance
the growth of the local construction industry;
WHEREAS, among the implementing agencies of the CIAP is the
Philippine Domestic Construction Board (PDCB) which is specifically
authorized by Presidential Decree No. 1746 to "adjudicate and settle claims
and disputes in the implementation of public and private construction
contracts and for this purpose, formulate and adopt the necessary rules and
regulations subject to the approval of the President";
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by law, do hereby authorize
the creation of an arbitration machinery in the construction industry of the
Philippines, and do hereby order and ordain:
SECTION 1. Â Title. — This Executive Order shall be known as the
"Construction Industry Arbitration Law".
SECTION 2. Â 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.
SECTION 3. Â Creation. — There is hereby established in the CIAP a
body to be known as the Construction Industry Arbitration Commission
(CIAC). The CIAC shall be under the administrative supervision of the PDCB.
SECTION 4. Â Jurisdiction. — The CIAC shall have original and
exclusive jurisdiction over 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. These disputes may involve
government or private contracts. For the Board to acquire jurisdiction, the
parties to a dispute must agree to submit the same to voluntary arbitration.
The jurisdiction of the CIAC may include but is not limited to 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.
Excluded from the coverage of this law are disputes arising from
employer-employee relationships which shall continue to be covered by the
Labor Code of the Philippines.
SECTION 5. Â Composition of the Board. — The Commission shall
consist of a Chairman and two (2) members, all to be appointed by the CIAP
Board upon recommendation by the members of the PDCB.
SECTION 6. Â Functions of the Commission. — The Commission shall
perform, among others that may be conferred by law, the following
functions:
1) Â To formulate and adopt an arbitration program for the

construction industry;
2) Â To enunciate policies and prescribe rules and procedures

for construction arbitration;
3) Â To supervise the arbitration program, and exercise such

authority related thereto as regards the appointment,
replacement or challenging of arbitrators; and
4) Â To direct its officers and employees to perform such

functions as may be assigned to them from time to time. casia
SECTION 7. Â Compensation of the Commission. — The members of

the Commission shall receive such per diems and allowances as may be
fixed by the CIAP from time to time.
SECTION 8. Â Term. — The term of office of the members of the
Commission shall be six (6) years; provided, however, that of the
Commission members first appointed, the chairman shall hold office for six
years; the other member for four (4) years; and the third for two (2) years.
The appointment to any vacancy in the Commission shall only be for the
unexpired portion of the term of the predecessor.
SECTION 9. Â Quorum. — The presence of a majority of the
members of the Commission shall constitute a quorum for the transaction of
business.
SECTION 10. Â Deliberations. — The decisions of the Commission
shall be arrived at by majority vote.
SECTION 11. Â 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.
The Secretariat shall have among others a Publication and a Training
Division.
SECTION 12. Â Authority to Appoint. — The Commission is hereby
authorized to appoint the Executive Director, the consultants, the arbitrators,
as well as personnel and staff.
SECTION 13. Â 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.
SECTION 14. Â 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.
If the CIAC decides to appoint an Arbitral Tribunal, each party may
nominate one (1) arbitrator from the list of arbitrators accredited by the CIAC
for appointment and for confirmation. The third arbitrator who is acceptable
to both parties confirmed in writing shall be appointed by the CIAC and shall
preside over the 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.
SECTION 15. Â 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.cdasia
Whenever the parties request for the services of an expert, they shall
equally shoulder the expert's fees and expenses, half of which shall be
deposited with the Secretariat before the expert renders service. When only
one party makes the request, it shall deposit the whole amount required.
SECTION 16. Â Arbitration Expenses. — Arbitration expenses shall
include the filing fee; administrative charges, arbitrator's fees; fee and
expenses of the expert, and others which may be imposed by the CIAC.
The administrative charges and the arbitrator's fees shall be computed
on the basis of percentage of the sum in dispute to be fixed in accordance
with the Table of Administrative Charges and Arbitrator's Fees.
SECTION 17. Â Deposit to Cover Arbitration Expenses. — The CIAC
shall be authorized to fix the amount to be deposited which must be
equivalent to the expected arbitration expenses. The deposit shall be paid to
the Secretariat before arbitration proceedings shall commence. Payment
shall either be shared equally by the parties or be paid by any of them. If one
party fails to contribute his share in the deposit, the other party must pay in
full. If both parties fail to tender the required deposit, the case shall be
considered dismissed but the parties shall still be liable to pay one half (1/2)
of the agreed administrative charge.
SECTION 18. Â 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.
SECTION 19. Â 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.
SECTION 20. Â 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
proprio, 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. acd
SECTION 21. Â Rule-Making Power . — The CIAC shall formulate and

adopt necessary rules and procedures for construction arbitration.
SECTION 22. Â Separability Clause. — The provisions of this
Executive Order are declared to be separable and if any provision on the
application hereof is held invalid or unconstitutional, the validity of the
remaining provision not otherwise affected shall remain in full force and
effect.
SECTION 23. Â Repealing Clause . — All provisions of existing laws,
proclamations, decrees, letters of instructions and executive orders contrary
to or inconsistent herewith are hereby repealed or modified accordingly.
SECTION 24. Â Effectivity Clause. — This Executive order shall take
effect immediately.
DONE in the City of Manila, this 4th day of February, in the year of Our
Lord, Nineteen Hundred and Eighty-Five.

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February 4, 1985

EXECUTIVE ORDER NO. 1008

CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTION

WHEREAS, the construction industry provides employment to a large

WHEREAS, there is a need to establish an arbitral machinery to settle

1) Â To formulate and adopt an arbitration program for the

2) Â To enunciate policies and prescribe rules and procedures

3) Â To supervise the arbitration program, and exercise such

4) Â To direct its oﬃcers and employees to perform such

SECTION 7. Â Compensation of the Commission. — The members of

SECTION 21. Â Rule-Making Power . — The CIAC shall formulate and

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