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Executive Order No. 1008

Creating An Arbitration Machinery for the Philippine Construction Industry

I. Declaration of Policy
- to encourage the early and expeditious settlement of disputes in the Philippine construction
industry

II. Construction Industry Arbitration Commission (CIAC)

- under the administrative supervision of the Philippine Domestic Construction Board (PDCB)
A. Jurisdiction
1. original exclusive jurisdiction
- disputes arising from, or connected with, contracts entered into by parties
involved in construction in the Philippines, whether the disputes arises before or
after the completion of the contract, or after the abandonment or breach thereof
- parties must agree to submit the same to voluntary arbitration
2. scope (not exclusive)
a. violation of specifications for materials and workmanship
b. violation of the terms of agreement
c. interpretation and/or application of contractual provisions
d. amount of damages and penalties
e. commencement time and delays
f. maintenance and defects
g. payment default of employer or contractor
h. changes in contract cost
3. exclusion
- disputes arising from employer-employee relationships
B. Composition
- to be appointed by the CIAP Board upon recommendation by the PDCB members
1. Chairman
2. 2 members
C. Functions
1. to formulate and adopt an arbitration program for the construction industry;
2. to enunciate policies and prescribe rules and procedures for construction arbitration;
3. to supervise the arbitration program, and exercise such authority related thereto as
regards the appointment, replacement or challenging of arbitrators; and
4. to direct its officers and employees to perform such functions as may be assigned to
them from time to time
D. Compensation
- fixed by the Construction Industry Authority of the Philippines (CIAP)
E. Term
1. 6 years of staggered terms (i.e. chairman 6 yrs; other member 4 yrs.; and the third
member 2 yrs.)
2. filing of vacancy is only for the unexpired portion of the term of the predecessor
F. Quorum
- majority of the members of the Commission
G. Deliberations
- by majority vote

III. Secretariat
A. Executive Director as head
1. receive requests for arbitration and other pleadings
2. notification of parties
3. fixing and receiving filing fees, deposits, costs of arbitration, administrative charges
and fees
B. Publication
C. Training Division

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IV. Arbitrators
- failure to agree on the arbitrator/s, CIAC has the option to appoint a single arbitrator or an
Arbitral Tribunal
A. Sole Arbitrator
1. nominated by agreement
2. qualifies from the list of accredited arbitrators by the CIAC
B. Arbitral Tribunal
1. composed of three persons
2. each party to nominate one arbitrator from the list of accredited arbitrators by the
CIAC
3. third arbitrator shall be appointed by the CIAC
4. in writing
C. Characteristics
1. men of distinction in whom the business sector and the government can have
confidence
2. not permanently employed by the CIAC; renders temporary service when called to
arbitrate
3. fees for compensation

V. Appointment of Experts
A. the CIAC appoints the Executive Director, consultants, the arbitrators, as well as personnel and
staff
B. experts may be utilized at the request of any party or by the Arbitral Tribunal

VI. Arbitration Expense

A. Filing Fee
B. Administrative Charges
C. Arbitrators Fee
D. Expert Fee and Expenses
E. Others imposed by the CIAC

VII. Deposit to Cover Arbitration Expenses

A. Equivalent to the expected arbitration expense
B. Paid to the Secretariat before arbitration proceedings shall commence
C. May be equally paid by parties or be paid by any of them
D. Failure of one party to pay, the other party must pay in full
E. If both parties fail to tender the required deposit, the case shall be considered dismissed
- the parties are still liable to pay half of the agreed administrative charge

VIII. Reports
A. Annual Report
- submission within three months after the end of the fiscal year to the CIAP
B. Periodic Report
- as may be required from time to time

IX. Finality of Awards

A. Binding upon the parties
B. Final and inappealable except upon questions of law
C. Appealable to the Supreme Court on questions of law

X. Execution and Enforcement of Awards

A. Artbitral Tribunal or the Single Arbitrator, with the concurrence of the CIAC, shall motu propio or
on motion of any interested party, issue a writ of execution as soon as a decision, order or
award becomes final and executory
B. Writ of execution requires any sheriff or other proper officer to execute