Over the past six months, the Philippine Contractors Accreditation Board (PCAB) has experienced significant turbulence. From corruption scandals in flood-control projects to multiple contractor license revocations, PCAB certificate processing was heavily delayed, and many companies’ applications were blocked or even stalled.
Good news: the new PCAB board is now in place, and approvals for previously backlogged applications have resumed! We have already received new PCAB certificates, so companies planning to apply can start preparing. Today, we also summarize the PCAB application process and required documents.
01
What is PCAB and why is it important?
PCAB, the Philippine Contractors Accreditation Board, is the official agency established under the Contractors’ License Law (R.A. No. 4566), responsible for issuing construction contractor qualifications in the Philippines.
All companies engaging in construction contracting—whether local or foreign—must hold a valid PCAB license. This applies not only to actual construction work but also to participating in project bidding as a contractor. Even if the project is fully subcontracted to local contractors, any bidding or representation as a contractor is considered contracting activity and requires PCAB accreditation.
PCAB is under the Construction Industry Authority of the Philippines (CIAP), which is an independent agency under the Department of Trade and Industry (DTI). It operates within the same regulatory framework as the Philippine Overseas Construction Board (POCB) and the Construction Industry Arbitration Commission (CIAC).
The core function of PCAB is to review a contractor’s staffing, technical capacity, financial strength, and compliance before project commencement, ensuring quality, safety, and legality. Operating without a PCAB license can result in fines, work stoppage, or even criminal liability.
For companies, PCAB is also critical beyond compliance: without it, employees cannot obtain work visas, and the company cannot participate in government or large-scale project bidding. PCAB is essentially the entry requirement for legally operating, competing, and executing construction projects in the Philippines.
02
PCAB Application Process and Required Documents
Before applying, companies must set up the corporate and tax structure, designate an Authorized Managing Officer (AMO), and complete relevant training and exams.
1. Application Process:
Prepare required company documents and resolutions
Prepare AMO and STE (Supervised Technical Employee) documents
Complete forms and verify all submissions
Submit documents to PCAB and coordinate STE interview
Apply for and obtain the PCAB license
2. Required Documents:
Company documents:
SEC registration certificate and articles of incorporation
Latest GIS
Latest audited financial statements including 1702RT
Bank certificates
Personal documents:
Technical personnel/engineers (STE): PRC license, photo, police clearance, COSH training certificate
Project Manager (AMO): valid ID; foreign AMOs require passport, work visa, and photo
Company representatives: valid ID, company badge, and photo
For Special Licenses, additional project-specific documents are required. These cases are more complex—please contact us for guidance.
03
PCAB Registration Requirements and Certificate Classification
1. Registration Requirements:
Management Qualification: Nominate an AMO with minimum experience and actual management authority
Financial Qualification: Meet minimum net asset requirement for license category
Technical Qualification: Employ full-time STEs with sufficient experience for the applied classification
Total Credit: Meet minimum technical, financial, and credit requirements for the project category
Integrity: Comply with PCAB’s ethics standards and statutory requirements
2. Certificate Classification:
By license type:
Regular License: Foreign ownership ≤40%, allows licensee to operate within the specified category during validity
Special License: Foreign ownership ≤40%, issued to foreign contractors or project owners for specific projects; must apply for A-level or above
By grade: AAAA, AAA, AAAB, CDERADE
By construction type: General Engineering, General Building, Specialty Classification
Key points:
Higher PCAB grades require greater capital, equipment, and technical experience
Foreign contractors must apply for AAAA level, requiring PHP 1 billion in capital/equipment and a technical team with at least 10 years’ experience per member, totaling over 60 years collectively
Approval now considers compliance, background, and personnel authenticity, not just document submission
With the new board streamlining procedures, prepared companies can obtain certificates faster
If you need assistance with PCAB applications, we can provide full-service support. Since 2015, we have served over a thousand clients in the Philippines, offering comprehensive business setup and compliance solutions. We welcome your inquiries.
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