The recently signed Republic Act (RA) 11711, which greatly increases construction contractor license fees and imposes greater financial and legal penalties on violating building contractors, will protect both the public and private sector from “unscrupulous contractors”.
Pampanga 3rd district Rep. Aurelio Gonzales Jr. gave this assessment Tuesday, May 3 as he hailed President Duterte's signing of the measure last April 27.
The new law amends the dated RA 4566, also known as the “Contractors’ License Law”.
“It also aims to professionalize the service of public works or building construction,” said Gonzales in press statement.
The old RA 4566 originally set the administrative and processing fees for original licenses, applicant examination, and annual license renewal to P50, P60, and P50, respectively.
Under RA 11711, which Gonzales principally authored, the fees for the aforementioned administrative licenses will be multiplied by 100, meaning they will now cost P5,000 (from P50), P6,000 (from P60), and P5,000 (from P50) respectively.
Furthermore, contractors who operate without proper license will now face penalties ranging from P100,000 to P500,000, with an added penalty of 10 percent of the project cost.