Press Release
December 13, 2021

Senate approves Contractors' License Law amendments on third reading

The Senate approved on third and final reading the amendments to the Contractors' License Law which aims to modify the renewal process, increase fees and impose stiffer penalties.

With 20 affirmative votes, no negative votes and no abstention, the Senate passed during its hybrid plenary session Monday, December 13, 2021, Senate Bill No. (SBN) 2247 or the Contractors' License Law, in substitution of SBNs 1008, 1809, 1889, and 2091, and taking into consideration House Bill No. 7808.

SBN 2247 is authored by Sens. Win Gatchalian, Ramon "Bong" Revilla Jr., and Manuel "Lito" Lapid and sponsored by Sen Aquilino "Koko" Pimentel III.

In a nutshell, SBN 2247 now carries a stiffer penalty under the new Section 35 of the measure. Under the amended section of the measure, any contractor who undertakes construction work without first securing license to engage in the business of contracting may now face a minimum penalty of P100,000 to a maximum penalty of P500,000.

The new provision also prohibits offending party from obtaining a contractor's license for a period of one year.

Parties who will provide false evidence or proof to obtain a license would be slapped with a minimum fine of P500,000 to a maximum penalty of P1,000,000, as well as a minimum prison term of one year to a maximum of 6-year imprisonment.

SBN 2247 also increases the fees prescribed by the law from P50 to P5,000 for an original license; from P60 to P6,000 for the examination of an applicant; and from P50 to P5,000 for an annual license.

The amended provision also provides that the issued license will be valid for one year. The amendment also sets the license renewal fee to P5,000.

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