Construction Industry

Arbitration Commission

Why Go
Arbitration
Than Litigation?
 Arbitration Fastest Resolution of
Construction Disputes
What is Arbitration?
- The process by which the parties to a dispute submit
their differences to the judgment of an impartial person
or group appointed by mutual consent or statutory
provision. In the Philippines it’s CIAC (Construction
Industry Arbitration Commission).

- Among the available dispute resolution alternatives to

the courts, arbitration is by far the most commonly used.

- Arbitration is faster and less expensive than litigation in

the courts.
 Arbitration Fastest Resolution of
Construction Disputes
- Arbitration offers the parties the flexibility to set
up proceedings that can be conducted as quickly and
economically as the circumstances allow.

- Arbitration hearings are not public, and only the

parties themselves receive copies of the awards.

- Arbitration is faster and less expensive than

litigation in the courts
Arbitration Fastest Resolution of
Construction Disputes
- Judicial systems do not allow the parties to a dispute to
choose their own judges. In contrast, arbitration offers the
parties the unique opportunity to designate persons of their
choice as arbitrators, provided they are independent.

-This enables the parties to have their disputes resolved by

people who have specialized competence in the relevant
field.

-Above all, it helps to ensure that the parties will not

subsequently be entangled in a prolonged and costly series
of appeals.
Arbitration Fastest Resolution of
Construction Disputes
- It is commonly said that an arbitration is no better than
the arbitrators. Selection of the Arbitral Tribunal is,
therefore, one of the most critical steps in
arbitration.
Under the CIAC Rules, one arbitrator or an
Arbitral Tribunal is composed 1- 3- arbitrators,
respectively.

- When three arbitrators are to be designated, each party

nominates an arbitrator; the third arbitrator, who chairs
the tribunal, is appointed either with the agreement of the
parties or co-arbitrators.
 Arbitration Fastest Resolution of
Construction Disputes
- Arbitration offers the parties the flexibility to set up
proceedings that can be conducted as quickly and
economically as the circumstances allow. In this way, a
multi-million Pesos construction disputes under
arbitration is estimated completed in 6 months.

- Arbitration hearings are not public, and only the parties

themselves receive copies of the awards.
 Construction Industry
Arbitration Commission

The
Arbitration
Process
 PROCEDURES
1. Define Claim or Cause of Action
2. File Claim (Request for Arbitration) with CIAC
3. Notice to Respondent
4. Answer and Counter-claim
5. Reply
6. Appointment of Arbitrator/Tribunal
7. Terms of Reference
8. Hearings
9. Award
10. Execution
 Define Claims / Causes of Action
❑ Check if Arbitration Clause Provided for in
Contract
➢ Effect of the Arbitration Clause:
- Submission to CIAC Jurisdiction even
if Respondent fails to file Answer or
refuses to arbitrate
❑ If none, Agreement to Arbitrate should be
executed by the parties
 MODEL ARBITRATION CLAUSE
“Any dispute arising out of or in connection with
this contract, including any question regarding
its existence, validity or termination shall be
referred to and finally resolved by arbitration
under the Rules of Procedure Governing
Construction Arbitration promulgated pursuant
to Executive Order 1008 (the Construction
Industry Arbitration Law) by (indicate number:
one or three arbitrator/s) to be appointed in
accordance with such Rules.”
 AGREEMENT TO ARBITRATE

We,________________________________________
(Name of Claimant)
and
____________________________________________
(Name of Respondent)

notwithstanding our contract for the construction of

____________________________________________
(Name of Project)
stipulating for the settlement of dispute distinct from
what is provided for in Executive Order No. 1008,
hereby submit ourselves to the jurisdiction of the
Construction Industry Arbitration Commission (CIAC)
and request the CIAC to arbitrate our dispute in said
project.

_________________ ____________________
(Name of Claimant) (Name of Respondent)

By: By:
___________________ ___________________
Signature over Printed Signature over Printed
Name of Authorized Name of Authorized
Representative Representative
 Define Claims / Causes of Action
❑ When arbitration cannot proceed
➢No arbitration clause or agreement to arbitrate (for
private contracts only) and Respondent refuses to
Answer Complaint or files a Motion to Dismiss for lack
of jurisdiction
➢Arbitral Tribunal grants Motion to Dismiss for
lack of jurisdiction
- dispute is NOT a construction dispute
- arbitration agreement not binding or not valid
- other grounds
Filing of Claims with CIAC

❑ Request for Arbitration

❑ Mode of Arbitration
❑ Choice of Arbitrators
❑ Sum in Dispute
❑ Documents Required
❑ Arbitration Fees
❑ Schedule of Payment of Fees
❑ Request for Arbitration
- Submission to Arbitration
- In Case of Government Contracts
 exhausted all administrative
remedies
 unreasonable delay on the part of
the government agency
 exhaustion of administrative
remedies not practicable
Request for Arbitration Form
❑ Request for Arbitration
Contents of Request
 Name in Full, Description and Addresses
of the Parties
 Statement of the Claimant’s Case
 Relevant Agreements or Contract
 Documentations and Information to
establish circumstances of the Case
❑ Mode of arbitration
 Number of Arbitrators
 Sole Arbitrator
 Arbitral Tribunal
❑ Choice / Selection of Arbitrators
 At most 6 nominees
 In order of preference
 CIAC - accredited
 Qualifications of CIAC Arbitrators
❑ Men of Distinction

❑ Technically Qualified
❑ Trained and Accredited by CIAC

❑ Professionals with Experience in Construction

Disputes and nuances thereof
 ACCREDITATION OF
CONSTRUCTION ARBITRATORS

1. MINIMUM REQUIREMENTS:

1.1 At least 40 years of age at the time of application ;

1.2 Holder of Bachelor’s degree in Engineering,
Architecture, Law or Accountancy or any other course
relevant to any field of construction or construction
activity;
1.3 Licensed to practice his/her profession ;
 ACCREDITATION OF
CONSTRUCTION ARBITRATORS

1.4 At least ten (10) years in the practice of his/her

profession and ten (10) years of work experience in
construction management-related activities or in
handling of contractual disputes and/or contract
negotiations ;

1.5 In full enjoyment of his/her civil rights, must not have

been convicted of a crime involving moral turpitude or
of any other crime for which the penalty imposed upon
him/her is over six (6) months of imprisonment.
 ACCREDITATION OF
CONSTRUCTION ARBITRATORS

1.6 Willing to undergo all screening requirements

1.7 Willing to undergo training to be conducted by the CIAC.

2. EXCEPTIONS :

2.1 Exceptional professionals who have substantially

complied with the minimum requirements 1.1 to 1.6,
and who by reason of trainings or experiences in
construction, conducted lectures on accreditation
courses upon invitation by the CIAC.
 Roster of CIAC–Accredited
Arbitrators and Mediators
1. Academia, Tomasito Z. * - Mechanical Engineer, Environmental
Planner Real State Broker (Active)
2. Acorda, Zenaida O. (M) - Lawyer (Active)
3. Allado, Ramon F. ** (M) - Civil Engineer (Active)
4. Alli, Armando N. - Architect, Urban/Reg. Planner (Active)
5. Andamon, Eugenio S. - Civil Engineer (Active)
6. Aurelio, Ramuel C. (M) - Architect / Bachelor of Laws(Active)
7. Autea, Arthur P. (M) - Lawyer (Active)
8. Avenido, Rogelio M. (M) - Electrical Engineer (Active)
9. Balde II, Antonio Yulo - Architect, Master Plumber (Active)
10. Baroque, Teodoro C., Jr. - Lawyer (Active)
11. Batungbakal, Myra G. (M) - Lawyer (Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
12. Borja, Jericho T. - Mechanical Engineer (Active)
13. Borja, Julius D. ** - Civil Engineer (Active)
14. Briones, Rafael A. Jr. - Architect (Active)
15. Butalid, Jacinto M. (N/A) - Lawyer, Civil Engineer (Active)
16. Cal, Primitivo C. - Civil/Transportation Engineer, Lawyer,
Environmental Planner (Active)
17. Calimon, Donemark JL - Lawyer (Active)
18. Cariño, Danilo B. (M) - Civil/Sanitary Engineer (Active)
19. Cariño, Marlon M. - Lawyer / Architect (Active)
20. Castelo, Ruth B. (N/A) - Lawyer (Incumbent Usec. Of CIAP)
21. De Castro, Ernesto S. (M) - Civil/Structural Engineer (Active)
22. Castro, Salvador Jr. P. (M) - Civil Engineer (Active)
23. Ceniza, Eduardo R. (M) - Lawyer (Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
24. Chua, Elvira P. ** - Architect (Active)
25. Claridad, Guillermo G.** - Electrical Engineer (Active)
26. Concepcion, Juan P. - Civil Engineer (Active)
27. Conti, Leandro A. - Mechanical Engineer (Active)
28. Cortes, Reynaldo A.* - Lawyer/Electronics &
Communications Engineer (Active)
29. Cosico, Manuel M. - Lawyer (Active)
30. Cuison, Felipe T. - Lawyer (Active)
31. Custodio, Demetrio C. Jr. - Lawyer (Active)
32. David, Romeo C. (M) - Civil Engineer (Active)
33. De Alban. Josefin S. Jr. - Lawyer/Civil Engineer (Active)
34. Decampong, Alano C. ** - Civil engineer (Active)
35. Delmoro, Enrico Claro R. - Electronics & Communications
Engineer/Electrical Engineer (Active)
36. Dickina, Carmen Theresa V.** - Architect (Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
37. Dio, Roberto N. - Lawyer (Active)
38. Escuadra, Luciano D.** - Civil Engineer (Active)
39. Espinosa, Lourdes J. (M) - Lawyer (Active)
40. Evangelista, Eliseo I. (M) - Civil/Structural Engineer (Active)
41. Fajardo, Beda G. (M) - Lawyer (Active)
42. Firme, Wenfredo A. (M) - Mechanical Engineer (Active)
43. Florentino, Edilberto F. (M) - Architect (Active)
44. Gaviola, Odilon Marlon L.** - Civil Engineer (Active)
45. Guerzon, Wilfredo Jr. H. ** (M) - Civil Engineer (Active)
46. Gutierrez, Estelita Y. - Civil/Sanitary Engineer (Active)
47. Jereza, Daphne T. - Lawyer (Active)
48. Joaquin, Joven B. (M) - Certified Public Accountant (Active)
59. Kalaw, Teodoro IV - Lawyer (Active)
50. Khan, Ismael G., Jr. - Lawyer (Active)
51. Ku, Francis U. - Lawyer (Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
52. Lagmay, Ariel A. ** - Civil Engineer (Active)
53. Lahoz, Victorino Benjamin V. - Mechanical engineer (Active)
54. Lampas, Beatriz P. (M) - Civil/Environmental/Sanitary
55. Lazatin, Victor P. - Lawyer (Active)
56. Leoncio, Potenciano A. (M) - Civil Engineer (Active)
57. Lim, Mario Eugenio V. - Lawyer (Active)
58. Mabanta, Jose F. - Civil Engineer (Active)
59. Magbutay, Gilbert B. - Civil/Geodetic Engineer (Active)
60. Mambulao, Gilbert Sr. S. ** - Civil Engineer (Active)
61. Mansueto II, Antonio O. * - Mechanical Engineer (Active)
62. Morallos, Jesusito G. (M) - Civil Engineer/Lawyer (Active)
63. Ocampo, Lamberto Un - Civil/Sanitary Engineer (Inactive)
64. Omila, Julius Anthony R. - Lawyer (Active)
65. Ongkiko, Ricardo Ma. PG - Lawyer (Active)
66. Ortega, Jose I. (M) - Civil Engineer (Active)
67. Pacanan, Jaime A. - Civil Engineer (Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
68. Paderon, Rosauro S. - Architect (Inactive)
69. Parlade, Custodio O. - Lawyer (Active)
70. Pasicaran, Danilo R. * - Civil/Mechanical Engineer (Active)
71. Penalosa, Rodolfo R. (M) - Engineer (Active)
72. Pinoy, Ray Anthony O. - Lawyer (Active)
73. Pio Roda, Fecilitas A. (M) - Architect (Active)
74. Prodigalidad, Patricia-Ann T. - Lawyer (Active)
75. Reyes, Rommel S. ** (M) - Architect (Active)
76. San Juan, Ricardo B. (M) - Civil/Industrial Engineer (Active)
77. SangTian, Anselmo L. **- Civil Engineer (Active)
78. Tan, Ma. Gracia M. Pulido - Lawyer / CPA (Active)
79. Tiongson, Alicia A. - Statistician, Environmental Planner
(Active)
 Roster of CIAC - Accredited
Arbitrators and Mediators
80. Tiu, Kian Hun T. * - Civil Engineer (Active)
81. Trinidad, Leonardo P. - Mechanical Engineer (Inactive)
82. Tumbocon, Emilio Lolito J. - Civil Engineer (Active)
(N/A, Incumbent CIAC Member)
83. Valderrama, Mario E. - Lawyer (Active)
84. Villafranca, James S. - Lawyer (Active)
85. Yee, Gregorio C. ** - Civil Engineer (Active)

* - Visayas-based
** - Mindanao-based
(M) - Mediator
 Selection of Arbitrators
Choice/Selection of Arbitrators
- availability, case load, nature of case
- was not previously conciliator/mediator of the dispute

Challenge:
● Relationship (blood or marriage) within 6th
degree of a party or 4th degree of a counsel
● Financial, fiduciary or other interest
● Partiality or bias
● Incompetence, or professional misconduct
Claims/ Causes of Action

Sum in Dispute
- Claim of Claimant
- Counter-claim of Respondent
- Others (cross-claim, 3rd party claim, etc.)
Claims / Causes of Action
Monetary Claim
0 Non-payment of Claims/Billings
0 Unreasonable imposition of LD
0 Change-orders and Extra Work
0 Liquidated damages
Non-monetary claims
0 Illegal take-over of Works
0 Interpretation of Contract Documents
 CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
A. FOR MONETARY CLAIMS
I. SCHEDULE OF FILING AND ADMINISTRATIVE FEES

SUM IN DISPUTE FILING FEE ADMINISTRATIVE FEE

Less than P 100,000.00 P 4,320.00 P10,200.00
P 100,000.00 to P 1M P 4,320.00 + 0.36% of P P10,200.00 + 0.24% of
excess over 100,000 excess over 100,000
P 1.0M to P 10.0M P 8,208.00 + 0.12% of P 13,800.00 + 0.12% of
excess over P 1.0M excess over P 1.0M
P 10.0M to P 50.0M P 21,168.00 + 0.06% of P 32,200.00 + 0.06% of
excess over P 10.0M excess over P 10.0M
More than P 50.0M P 49,968.00 + 0.03% of P 73,000.00 + 0.03% of
excess over P 50.0M excess over P50.0M
* Pursuant to CIAC Resolution No. 2-96 (dtd. May 28, 1996) a special assessment fee, for the establishment of
Arbitration Development Fund (ADF), equivalent to 1/10 of 1.5% of the Sum in Dispute (SID) as amended by
CIAC Resolution No. 07-2013, shall be imposed on cases with SID over P1 Million.
 CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
II. ARBITRATOR’S FEES
(The Honoraria of the arbitrators shall consist of a Base Amount plus Adjustments to reflect complexity of the
case, number of disputants and number of arbitrators)

1. Sum in Dispute (SID) BASE AMOUNT( for Arbitrator’s fees)*

≤ P1M - 3% of SID but not < P17,000 or as may be
over prescribed by CIAC**
1M - 5.0 M - P34,000.00 + 1.00% in excess of 1.0 M
over 5M - 10.0 M - 102,000.00 + 0.75% in excess of 5.0 M
over 10M - 20.0 M - 165,750.00 + 0.50% in excess of 10.0 M
over 20M - 50.0 M - 250,750.00 + 0.20% in excess of 20.0 M
over 50M - 100.0 M - 352,750.00 + 0.10% in excess of 50.0 M
over 100M - 500.0M - 437,750.00 + 0.05% in excess of 100.0M***
over 500M - 1Billion - 777,750.00 + 0.035% in excess of 500.0M***
Above 1 Billion - 1,075,280.00 + 0.025% in excess of 1Billion***
*70% increase in the base amounts approved in the 8th CIAC Regular Meeting held on 25 August 1989
**70% increase in minimum amount for Arbitrator’s Fee of P10,000 for small claims per Rule 20.1.1, CIAC Rules
(revised December 2005)
***70% increase in base amounts prescribed under CIAC Resolution No. 05-2009 (Approving Additional
Ranges & Base Amounts for Arbitrator’s Fees)
 CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
III. SCHEDULE OF PAYMENTS*

A. Upon filing of the Request for Arbitration (RFA)

 100% Filing Fee

 100% Administrative Fee
 Initial Deposit for Arbitrator’s Fees
• 25% of arbitrator’s fees based on amount of claim
• Respondent to deposit similar amount of fees based
on his counterclaim, if any
 100% Special Assessment Fee (ADF) under CIAC Res. No.
02-1996, if applicable
 CIAC TABLE of ADMINISTRATIVE
CHARGES and ARBITRATOR’S FEES
B. Upon signing of the Terms of Reference (TOR):
 50% of the Arbitrator’s Fee

C. Before the Final Hearing:

 25% of the Arbitrator’s Fee

* As amended by CIAC Resolution No. 09-2012 (effective 05 July

2012)
 CIAC Table of Administrative
Charges and Arbitrator’s Fees
B. For Non-Monetary Claims
B.1 Purely Non-Monetary Award Involved Schedule of Payments
1. Filing Fee
P4,320 + 9% of total arbitrator’s Fees - 100% upon filing of the Request for Arbitration based on
(20% increase in the base amount estimated total arbitrators’ fees for 3 sessions of 3 hours
approved on 13 February 2001) per session

- Before the final hearing, balance of the filing fee based

on actual total arbitrators’ fees
2. Administrative Fees
P10,200 plus 6.0% of total Arbitrators’ Fees - 100% upon filing of the Request for Arbitration based on
(70% increase in the base amount estimated total arbitrators’ fees for 3 sessions of 3 hours
on 13 February 2001) per session

- Before the final hearing, balance of the filing fee based

on actual total arbitrators’ fees
 CIAC Table of Administrative
Charges and Arbitrator’s Fees
ARBITRATION FEES FOR NON-MONETARY CLAIMS
3. Arbitrators’ Fee
(70% increase in the amounts approved
on 25 August 1989)

3.1 Acceptance Fee - P17,000 upon filing of the

Request for Arbitration
3.2 Fees per session

For a Tribunal
Chairman:
● Minimum of P7,650 per session of 3 hours - Upon signing of TOR, 50% of the estimated
or less plus P2,550 in excess of 3 hours arbitrator’s fees

- Before the final hearing, balance of arbitrators’ fee

based on actual number of sessions
 CIAC Table of Administrative
Charges and Arbitrator’s Fees
Members:
● Minimum of P5,100 per session of 3 hours
less plus P1,700 in excess of 3 hours

For Sole Arbitrator:

● Minimum of P12,750 per session of 3 hours or
less plus P4,250 per hour in excess of 3 hours
4. AWARD DRAFTING
● P17,000 - Before the final hearing
*Amended by CIAC Res. No. 09-2012
(Effective 5 July 2012)
B.2 For Non-Monetary Claims but with Monetary Award Involved
● Fees will be based on the schedule of monetary claims
 PRELIMINARY CONFERENCE
- Matters to be discussed

n Possibility of Amicable Settlement

n Necessity of Amendments to Pleading
n Stipulations and admissions of facts
n Limitation on the number of Witnesses
n Formulation of Issues
n Other Matters (interim relief, appointment of
experts, need for site inspection, & others as
may aid in just & speedy case disposition)
 Terms of Reference (TOR)
* Contents
n Full names of Parties and counsel, if any
n Addresses and contact numbers
n Summary of Respective Claims
n Admitted Facts and Documents
n Issues to be resolved
n Place where proceedings will be held
n Arbitrator/s’ full name/s
n Schedule of Payment of Fees; sharing
n Other particulars required for the proper and
speedy adjudication of the case
 TERMS OF REFERENCE (TOR)
• Arbitration to Proceed even without TOR
- If Respondent failed to file an Answer or even in the
absence/lack of participation of Respondent

- If one of the parties refused to sign or to participate

in the preliminary conference/proceedings

- No factual issue being in dispute, case may be deemed

submitted for resolution without oral hearing and on
the basis of documentary evidence already submitted.
 What to be ready with
Well Prepared Complaint/ Narration of Facts

Complete and Proper Documentations

Technically Correct
Logically Presented

Credible Witnesses
What to Expect
Integrity

Speed

Fairness

Writ of Execution
THANK YOU!