Manila, 18 July 2022 - The Philippine construction industry was the fastest-growing in the Asia Pacific region prior to the COVID-19 outbreak, but its growth has been severely impacted by the pandemic.

The COVID-19 pandemic has resulted in the imposition of varying degrees of health and safety protocols across the country. During the first half of 2020, only essential construction projects, i.e., those relating to COVID-19 facilities, emergency works, priority public and private infrastructure projects, as defined, and the like were allowed to operate on a skeletal workforce. As the policy direction for permissible work during the quarantine period stabilized, public and private construction projects eventually resumed operations at full operating capacity, subject to compliance with health and safety protocols.

As the economy starts to revitalize, the sector is expected to grow this year, supported by improving investor confidence and investment in transport, renewable energy, residential and commercial infrastructure projects.

The guide provides information on the principal laws governing the construction sector in the Philippines, standard contracts, obligations and liabilities of parties, licensing requirements, and dispute avoidance and resolutions, among others.

To learn more about the salient features of the regulatory framework that governs the country's construction industry, access the Philippine chapter of Chambers and Partners Construction Global Guide, exclusively authored by Quisumbing Torres.

Supreme Court affirms ruling that allows foreign construction firms to obtain regular licenses to engage in construction in the Philippines

In a recently published Resolution, the Supreme Court denied the Philippine Contractors Accreditation Board's (PCAB) Motion for Reconsideration, and affirmed the invalidity of the portions of Rule 3 and Rule 12 of the Implementing Rules and Regulations (IRR) of Republic Act No. 4566, otherwise known as the Contractor's License Law (RA 4566), that impose foreign ownership restrictions for obtaining a Regular License to engage in construction in the Philippines. However, the PCAB is maintaining the status quo for the meantime, due to a motion for reconsideration that was filed by one of the intervenors in the case.