Senate approves Contractor’s License Law

Published December 13, 2021, 7:57 PM

by Mario Casayuran

`By a 20-0-0 vote, the Senate passed on third and final reading , Senate Bill (SB) 2247, or the Contractors’ License Law, during its plenary session on Monday, Dec. 13.

SB 2247 is authored by Senators Sherwin T. Gatchalian, Ramon “Bong” Revilla Jr., and Manuel “Lito” Lapid. It was sponsored by Senator Aquilino “Koko” Pimentel III.

In a nutshell, SB 2247 now carries a stiffer penalty under the new Section 35 of the measure.

Under the amended section of the bill, 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.

SB 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.