The

Arbitration
Process

PROCEDURES
1. Define Claim or Cause of Action
2. File Claim (Request for Adjudication)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; or
- Failure or Refusal to Arbitrate
If none, Agreement to Arbitrate Form should
be executed by the parties

A G R E E M E N T T O

A R B IT R A T E

W e,__ _ _ _ __ _ _ __ __ _ __ _ _ _ __ _ __ _ __ _ __ _ _ __ _ _ __ __
(N a m e o f C laim a n t)
an d
____________________________________________
(N a m e o r R e s p o n d e n t)
n o t w i t h s t a n d i n g o u r c o n tr a c t f o r t h e c o n s t r u c t i o n o f
____________________________________________
(N a m e o f P r o je c t )
s t ip u l a ti n g f o r t h e s e ttl e m e n t o f d i s p u t e d i s ti n c t fr o m
w h a t is p r o v i d e d f o r i n E x e c u t i v e O r d e r N o . 1 0 0 8 ,
h e r e b y su b m it o u r s e lv e s t o t h e ju r i s d ic t io n o f th e
C o n s t r u c t io n
In d u s tr y
A r b i t r a t io n
C o m m i s s io n
(C I A C ) a n d r e q u e s t t h e C I A C to a r b i tr a t e o u r d is p u te
in s a i d p r o j e c t.
_________________
( N a m e o f C la im a n t)
By:
___________________
S i g n a tu r e o v e r P r in te d
N a m e o f A u th o r iz e d
R e p r e s e n ta ti v e

____________________
( N a m e o f R e s p o n d e n t)
B y:
___________________
S ig n a tu r e o v e r P r i n te d
N a m e o f A u th o r iz e d
R e p r e s e n ta tiv e

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.

Define Claims / Causes of Action

When arbitration cannot proceed
No arbitration clause or agreement to arbitrate
(for private contracts only)

Filing of Claims with CIAC

Request for Adjudication

Mode of Settlement

Choice of Arbitrators

Sum in Dispute

Documents Required

Arbitration Fees

Schedule of Payment of Fees

Request for Adjudication

-

Submission to Arbitration

Contents of Request /Complaint

Request for Adjudication

-

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 Adjudication

Contents of Request

Name in Full, Description and Addresses

of the Parties

Statement of the Claimants Case

Relevant Agreements or Contract

Documentations and Information to

establish circumstances of the Case

Mode of Settlement
Arbitration
Mediation

 Choice / Selection of Arbitratiors

Number of Arbitrators

Sole Arbitrator

Arbitral Tribunal

Disqualification or Non-Acceptance by Nominees

CIAC to Choose

Qualification of CIAC Arbitrators

Men of Distinction

Technically Qualified
Trained and Accredited by CIAC
PICA Member
Professionals with Experience in
Construction
thereof

Disputes

and

nuances

Selection of Arbitrators

Choice/Selection of Arbitrators
- availability, case load, nature of case
Challenge:
Partiality, bias, incompetence, or
professional misconduct
CIAC to rule within 15 days
When arbitrator previously acted as
conciliator/mediator of the same dispute

Claims/ Causes of Action

Sum in Dispute
- Claim of Claimant
- Counter-claim of Respondent
- Other Costs

Claims / Causes of Action

Claim for Sum of Money

0

Non-payment of Claims/Billings

Unreasonable imposition of LD

Change-orders and Extra Work

Liquidated damages

Non-monetary claims
0

Illegal take-over of Works

Interpretation of Contract Documents

CIAC TABLE of ADMINISTRATIVE

CHARGES and ARBITRATORS FEES
 FOR MONETARY CLAIMS
I. SCHEDULE OF FILING AND ADMINISTRATIVE FEES
SUM IN DISPUTE
Less than P 100,000.00
P 100,000.00 to P 1M
P 1.0M to P 10.0M
P 10.0M to P 50.0M
More than P 50.0M
*

FILING FEE
P 3,600.00
P 3,600.00 + 0.36% of
excess over 100,000
P 6,840.00 + 0.12% of
excess over P 1.0M
P 17,640.00 + 0.06% of
excess over P 10.0M
P 41,640.00 + 0.03% of
excess over P 50.0M

ADMINISTRATIVE FEE
P6,000.00
P 6,000.00 + 0.24% of
excess over 100,000
P 8,160.00 + 0.12% of
excess over P 1.0M
P 18,960.00 + 0.06% of
excess over P 10.0M
P 42,960.00 + 0.03% of
excess over P50.0M

Pursuant to CIAC Resolution No. 2-96, a special assessment fee, for the establishment of
Arbitration Development Fund, Equivalent to 1/10 of 1% of the Sum in Dispute (SID) shall be
imposed on SID over P 1 Million.

CIAC TABLE of ADMINISTRATIVE

CHARGES and ARBITRATORS FEES
II. ARBITRATORS 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.

BASE AMOUNT
P1M
over
1M
- 5.0 M
over
5M
- 10.0 M
over 10M - 20.0 M
over 20M - 50.0 M
over
50M - 100.0 M
over 100M - 500.0M
over 500M - 1Billion
Above 1 Billion

2% of the Sum in Dispute

P20,000.00 + 1.00% in excess of 1.0 M
60,000.00 + 0.75% in excess of 5.0 M
97,500.00 + 0.50% in excess of 10.0 M
147,500.00 + 0.20% in excess of 20.0 M
207,500.00 + 0.10% in excess of 50.0 M
257,500.00 + 0.05% in excess of 100.0 M
457,500.00 + 0.035% in excess of 500.0 M
632,500.00 + 0.025% in excess of 1 Billion

As amended by CIAC Resolution No. 05-2009 (Approving Additional Ranges and Base
Amounts for Arbitrators Fees); Effective 04 July 2009
______________________________________________________________________________

CIAC TABLE of ADMINISTRATIVE

CHARGES and ARBITRATORS FEES
III. SCHEDULE OF PAYMENTS
A. Upon filing of the Request for Adjudication (RFA)

100% Filing Fee

50% Adminstrative Fee
Initial Deposit for Arbitrators Fees

50% of arbitrators fees based on amount of

claim

Respondent to deposit similar amount based on

his counterclaim, if any
special assessment fee under CIAC Res. No. 2-96, if
applicable

CIAC TABLE of ADMINISTRATIVE

CHARGES and ARBITRATORS FEES
B. Upon signing of the Terms of Reference (TOR):
Balance of the Filing Fee
50% of the Administrative Fee
50% of the Arbitrators Fee
C.

At the Penultimate Hearing / Meeting:

50% of the Administrative Fee
50% of the Arbitrators Fee

* If no hearing is held, the last two tranches (B & C) shall be due upon
TOR signing

PRELIMINARY CONFERENCE

- Matters to be discussed

Possibility of Amicable Settlement

Necessity of Amendments to Pleading

Stipulations and admissions of facts

Limitations on the number of Witnesses

Simplification of Issues

Other Matters

Terms of Reference
Contents
Signing of the Terms of Reference
Arbitration to Proceed even without the
Terms of Reference

Contents of the Terms of Reference

Full names of Parties and their Personal
Circumstances
Addresses for Notification / Communication
Summary of Respective Claims
Definition of Issues
Position of Disputants per Issue
Arbitrators
Schedule of Payment of Fees

TERMS OF REFERENCE (TOR)

a) full name of the parties and their personal circumstances
b) address of the parties to which notifications or
communications arising in the course of the arbitration may
validly be made
c) summary of the parties respective claims
d) definition of the issues to be determined
e) arbitrator(s) full names and addresses
f) place of arbitration
g) breakdown, schedule of payment and sharing of arbitration
fees
h) such other particulars as may be required to make the
arbitral award enforceable in law, or may be regarded as
helpful by the CIAC or the arbitrator(s)

TERMS OF REFERENCE (TOR)

Arbitration to Proceed without Terms of Reference

If one of the parties refused to sign

The Parties agreed that the issues and matters

raised in their pleadings are deemed submitted
for resolution without further evidence.

TERMS OF REFERENCE (TOR)

Signing of the Terms of Reference

- 15 days after preliminary conference

- 3 days after signing transmitted to CIAC
Secretariat

What to be ready with

Well Prepared
Complete and Proper Documentations
Technically Correct
Logically Presented
Credible Witnesses

What to Expect
Integrity
Speed
Fairness
Writ of Execution

ARBITRABLE ISSUES
1. Violation of specifications for materials and
workmanship
2. Violation of the terms of agreement
3. Interpretation and/or application of
contractual provisions
4. Amount of damages and penalties
5. Commencement time and delays
6. Maintenance and defects
7. Payment default of employer or contractor
8. Changes in contract cost

ACCREDITATION OF
CONSTRUCTION ARBITRATOR
1.

MINIMUM REQUIREMENTS:
1.1 At least 40 years of age at the time of application ;
1.2 Holder of a Bachelors degree in Engineering,
Architecture, Law or Accountancy ;

1.3 Licensed to practice his/her profession ;

ACCREDITATION OF
CONSTRUCTION ARBITRATOR
1.4

1.5

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 ;

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 ARBITRATOR
1.6
1.7

Willing to undergo all screening requirements

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.