THE Construction Industry Authority of the Philippines (CIAP) said it has revised its guidance for private contractors to better prepare them for navigating contract disputes.
In a statement on Wednesday, the regulator said that its revised CIAP Document 102 or the Uniform General Conditions of Contract for Private Construction sets guidelines for drafting private construction contracts.
The revisions to the CIAP Document 102 took effect on Feb. 1. The CIAP, via the Philippine Domestic Construction Board, approved the revisions to the document, originally issued in 1997 and amended in 2004 and 2022.
The CIAP is an arm of the Department of Trade and Industry.
Document 102 sets out rules for contracts, including agreements, bid documents, specifications, drawings, special conditions of contract, and others.
“Document 102 is intended to provide guidance to parties in drafting their respective private construction contracts, and its provisions are intended to serve as the recommended procedures, guidelines, and criteria to be used in the implementation of the contract, most especially in the interpretation of any ambiguities and omissions of stipulations in the contract,” it said.
“The usage of this document follows the premise that customs of usage in trade are a source of law; hence, courts and quasi-judicial bodies such as CIAC recognize the use of CIAP Document 102 as a reference in resolving construction disputes,” it added.
According to the CIAP, Document 102 aims to address the disputes that arise due to “inequitable contractual arrangements in the construction industry,” which results in losses, project abandonment, and bankruptcy.
“These disputes have a dire effect on micro and small domestic contractors, who, in good faith, rely on these agreements with their clients, unknowingly engaging in unfair and/or inequitable contracts,” the CIAP said.
“In order to eliminate or reduce these contractual problems, and to assist the industry, especially micro and small contractors, CIAP rolls out an advocacy campaign on the adoption and use of a standardized set of conditions of contract for private construction,” it added. — Revin Mikhael D. Ochave