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 its 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 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 ensure 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 just over two
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 is 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:
___________________
Signature over Printed
Name of Authorized
Representative

By:
___________________
Signature over Printed
Name of Authorized
Representative

Define Claims / Causes of Action

Arbitration cannot proceed, when:
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
The 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

exhaust 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 Claimants 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 Bachelors 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
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.

Roster of CIACAccredited
Arbitrators and Mediators
1. Academia, Tomasito Z. *
2. Alikpala, Federico. Y 3. Allado, Ramon F. **
4. Alli, Armando N. (M) 5. Altura, Claudio B.
6. Andamon, Eugenio S. 7. Andrada, Danilo T. (M)
8. Avenido, Rogelio M.
9. Balde II, Antonio Yulo -

Mechanical Engineer, Environmental

Planner, Real Estate Broker (Active)
Lawyer (Active)
Civil Engineer (Active)
Architect, Urban/Regional
Planner(Active)
Civil/Sanitary Engineer (Active)
Civil Engineer (Active)
Electrical/Mechanical/Industrial
Engineer (Inactive)
Electrical Engineer (Active)
Architect, Master Plumber (Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
10. Battad, Ernesto J. (M)
11. Borja, Julius D. **
12. Butalid, Jacinto M. (M)
13. Cabote, Regulus E.
14. Cal, Primitivo C.
15. De Castro, Ernesto S. 16. Castro, Salvador Jr. P. (M)
17. Castro, Tomas Jr. M. 18. Ceniza, Eduardo R.
19. Chua, Elvira P. **

Civil/Sanitary Engineer, Master Plumber

(Inactive)
Civil Engineer (Active)
Lawyer, Civil Engineer (Active)
Lawyer (Active)
Civil/Transportation Engineer,
Lawyer, Environmental Planner (Active)
Civil/Structural Engineer (Active)
Civil Engineer (Active)
Civil Engineer (Active)
Lawyer (Active)
Architect (Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
20. Claridad, Guillermo G. **
21. Cosico, Manuel M.
22. Cuison, Felipe T.
23. David, Romeo C. (M)
24. Decampong, Alano C. **
25. Dickina, Carmen Theresa V.**
26. Dio, Roberto N.
27. Escuadra, Luciano D. **
28. Espinosa, Lourdes J.
29. Evangelista, Eliseo I. (M)
30. Fajardo, Beda G. (M)
31. Firme, Wenfredo A. (M)
32. Florentino, Edilberto F. (M) -

Electrical Engineer (Active)

Lawyer (Active)
Lawyer (Active)
Civil Engineer (Active)
Civil Engineer (Active)
Architect (Active)
Lawyer (Active)
Civil Engineer (Active)
Lawyer (Active)
Civil/Structural Engineer
(Active)
Lawyer (Active)
Mechanical Engineer (Active)
Architect (Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
33. Guerzon, Wilfredo H. **
34. Gutierrez, Estelita Y.

(Active)

35. Joaquin, Joven B. (M)

36. Jovellanos, Jose U.
37. Lagmay, Ariel A.**
38. Lazatin, Victor P.
39. Leoncio, Potenciano
40. Lim, Mario Eugenio V.
41. Mabanta, Jose F.
42. Mambulao, Gilbert S. Sr.**
43. Mansueto, Guadalupe O.* (M)

Civil Engineer (Active)

Civil/Sanitary Engineer
CPA (Active)
Civil Engineer (Inactive)
Civil Engineer (Active)
Lawyer (Active)
Civil Engineer (Active)
Lawyer (Active)
Civil Engineer (Active)
Civil Engineer (Active)
Civil/Structural/
Geodetic/Sanitary Engineer
(Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
44. Mansueto, Antonio O. II*
Mechanical Engineer (Active)
45. Morallos, Jesusito G. Lawyer/Civil Engineer
(Active)
46. Noto, Paulino M. (M)
Lawyer (Active)
47. Ocampo, Lamberto Un
Civil/Sanitary Engineer (Inactive)
48. Paderon, Rosauro S. Architect (Inactive)
49. Parlade, Custodio O. Lawyer (Active)
50. Pasicaran, Danilo R.*Civil/Mechanical Engineer
(Active)
51. Pealosa, Rodolfo R. Electrical Engineer (Active)
52. Pinoy, Ray Anthony O.
Lawyer (Active)
53. Pio Roda, Felicitas A. (M)
Architect (Active)
54. Reyes, Felisberto GL. Civil/Structural Engineer
Quantity Surveyor (Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
55 .Reyes, Jesus M.
Architect (Active)
56. Reyes, Rommel S.**
Architect/LLB (Active)
57. Salazar, Doroteo M. *
Civil/Geodetic Engineer (Active)
58. San Juan, Ricardo B. (M)
Civil/Industrial Engineer (Active)
59. Sang Tian, Anselmo L. **
Civil Engineer (Active)
60. Tadiar, Alfredo F. (M)
Lawyer (Active)
61. Tankeh-Asuncion, Maria Clara B. (M) Lawyer (Active)
62. Tiongson, Alicia A. (M)
Statistician, Environmental
Planner (Active)
63. Tiu, Kian Hun T. *
Civil Engineer (Active)
64. Tompar, Antonio Camelo P. * Mechanical Engineer (Active)
65. Trinidad, Leonardo P.
Mechanical Engineer (Inactive)
66. Valderrama, Mario E.
Lawyer (Active)

Roster of CIAC - Accredited

Arbitrators and Mediators
67. Villafranca, James S.
68. Viloria, Leandro A.
69. Viray, Reynaldo T.
70. Yee, Gregorio C. **
* - Visayas-based
** - Mindanao-based
(M) - Mediator

Lawyer (Active)
Environmental/Urban &
Regional Planner (Active)
Civil Engineer (Active)
Civil Engineer (Active)

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

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
A. 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
ADMINISTRATIVE FEE
P 3,600.00
P6,000.00
P 3,600.00 + 0.36% of
P 6,000.00 + 0.24% of
excess over 100,000
excess over 100,000
P 6,840.00 + 0.12% of
P 8,160.00 + 0.12% of
excess over P 1.0Mexcess over P 1.0M
P 17,640.00 + 0.06% of
P 18,960.00 + 0.06% of
excess over P 10.0M
excess over P 10.0M
P 41,640.00 + 0.03% of
P 42,960.00 + 0.03% of
excess over P 50.0M
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
Base Amount x Overall Adjustment Factor (for complexity of the case, number of disputants and
number of arbitrators) + 1.0
1. Sum in Dispute (SID)
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

BASE AMOUNT
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

25% Administrative Fee
Initial Deposit for Arbitrators Fees

25% of arbitrators fees based on amount of

claim

Respondent to deposit similar amount based on

his counterclaim, if any
25% Special Assessment Fee under CIAC Res. No. 2-96, if
claim is P1M and above

CIAC TABLE of ADMINISTRATIVE

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

At the Penultimate Hearing / Meeting:

25% of the Administrative Fee
25% of the Arbitrators Fee

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

CIAC Table of Administrative

Charges and Arbitrators Fees
B. For Non-Monetary Claims
(Approved in the 23rd CIAC Regular Meeting held on July 14, 1993)
B.1 Purely Non-Monetary Award Involved
1. Filing Fee
P3,600 + 6% of total arbitrators Fees

Schedule of Payments
- P3,000 upon filing of the RFA
- 8.0% of the estimated total arbitrators
fees upon signing of the TOR
- Balance of the filing fee based on actual
total arbitrators fees upon award

2. Administrative Fees
P6,000 plus 6% of total arbitrators Fees - P6,000 upon signing of the TOR plus
6% of estimated total arbitrators fees
- Upon award, balance of administrative
fees based on actual total arbitrators
fees

CIAC Table of Administrative

Charges and Arbitrators Fees
ARBITRATION FEES FOR NON-MONETARY CLAIMS
(Approved in the 23rd CIAC Regular Meeting held on July 14, 1993)

3. Arbitrators Fee
3.1 Acceptance Fee

- P10,000 upon filing of the

Request for Arbitration

3.2 Fees per session

For a Tribunal
Chairman:
Minimum of P4,500 per session of 3 hours
or less plus P1,500 in excess of 3 hours

- Upon signing of TOR, 50% of

the estimated arbitrators fees

CIAC Table of Administrative

Charges and Arbitrators Fees
Members:
Minimum of P3,000 per session of 3 hours -- Upon award, balance of
less plus P1,500 in excess of 3 hours
arbitrators fees based on actual
number of sessions
For Sole Arbitrator:
Minimum of P7,500 per session of 3 hours or
less plus P2,500 per hour in excess of 3 hours

4. AWARD DRAFTING
P10,000

- Upon Award

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!