CIAP Rules of Procedure Governing Construction Arbitration

No date supplied


Approved and promulgated by the Construction Industry Arbitration Commission (CIAC) on August 23, 1988 and as amended by CIAC Resolution Nos. 2-91, 3-93, 1-94, 2-95, 1-96, 2-96, 3-96, 6-96, adopted on June 21, 1991, August 25, 1993, October 25, 1996, November 7, 1995 and August 8, 1996, respectively.

Pursuant to Section 21 of Executive Order No. 1008 creating the Construction Industry Authority Arbitration Commission (CIAC), the following Rules of Procedure Governing Construction Arbitration are hereby promulgated.


Policy and Objectives

SECTION 1. Statement of Policy and Objectives. It is the policy and objective of these Rules to provide a fair and expeditious settlement of construction disputes through a non-judicial process which ensures harmonious and friendly relationships between or among the parties. cd

SECTION 2. Applicability of Rules. These Rules are applicable to proceedings in arbitration either before a single Arbitrator or an arbitral Tribunal.

SECTION 3. Technical Rules not Binding. In any proceeding before a single Arbitrator or Arbitral Tribunal, the rules of evidence prevailing in courts of law or equity need not be controlling and it is the spirit and intention of the Construction Industry Arbitration Commission that Arbitrators shall use every and without regard to technicalities the facts in each case speedily and objectively and without regard to technicalities of law or procedure, all in the interest of substantive due process.


Request for Arbitration

SECTION 1. Submission to Arbitration. any party to a construction contract wishing to have recourse to arbitration by the Construction Industry Arbitration Commission (CIAC) shall submit its Request for Arbitration in sufficient copies to the Secretariat of the CIAC; PROVIDED, that in the case of government construction contracts, the claimant against the government shall state in the submission that he has exhausted all administrative remedies, or that there is unreasonable delay, on the part of the government office or officer to whom appeal is made, in acting upon the claim, or that, due to the application for interim relief, exhaustion of administrative remedies is not practicable.

SECTION 2. Contents of Request. The Request for arbitration shall, inter alia, contain the following information:

a. Names in full, description, and address of the parties;

b. A statement of the claimant's case;

c. Copy of the construction contract in question;

d. The relevant agreements, and in particular the agreement to arbitrate, and such documentation or information as will serve clearly to establish the circumstances of the case.

SECTION 3. Notice to Respondent. The CIAC shall within three (3) days from filing transmit a copy of the Request of Arbitration and of the documents annexed to the Respondent for his Answer. cda


Effect of the Agreement to Arbitrate

SECTION 1. Submission to CIAC Jurisdiction. An arbitration clause in a construction contract or a submission to arbitration of a construction dispute shall be deemed an to submit an existing or future controversy to CIAC jurisdiction, notwithstanding the reference to a different arbitration institution or arbitral body in such contract or submission. When a contract contains a clause for the submission of a future controversy to arbitration, it is not necessary for the parties to enter into a submission agreement before the claimant may invoke the jurisdiction of CIAC.

An arbitration agreement or a submission to arbitration shall be in writing, but it need not be signed by the parties, as long as the intent is clear that the parties agree to submit a present or future controversy arising from a construction contract to arbitration.

It may be in the form of exchange of letters sent by post or by telefax, telexes, telegrams or any other mode of communication.

SECTION 2. Failure or Refusal to Arbitrate. Where the jurisdiction, of CIAC is properly invoked by the filing of a Request for Arbitration in accordance with these Rules, the failure or refusal of the respondent to arbitrate shall not affect the proceedings. In such case, CIAC shall appoint the sole arbitrator from among the list of accredited arbitrators, or if the arbitration clause provides for a panel of three (3) arbitrators, CIAC shall name the arbitrator for the respondent. Arbitration proceedings shall continue notwithstanding the absence or lack of participation of the respondent, and the award shall be made after receiving the evidence of the claimant. In the event that, before award, the respondent shall appear and offer to present his evidence, the arbitrator shall reopen the proceedings and allow the respondent to present his evidence, but evidence already received shall not be affected by the reopening of the proceedings.


Absence of Agreement to Arbitrate

SECTION 1. When Arbitration cannot Proceed. Where the contract between the parties did not provide for arbitration and the parties cannot agree to submit the dispute(s) to arbitration, the Claimant/s shall be informed that the arbitration cannot proceed. aisadc

SECTION 2. Non-Arbitrable Issues. Pursuant to Section 4 of Executive Order No. 1008, claims for moral damages, exemplary damages, opportunity/business losses in addition to liquidated damages, and attorney's fees are not arbitrable except when the parties acquiesce or mutually agree to submit the same for arbitration and to abide by the decision of the arbitrator thereon.


Choice/Selection of Arbitrators

SECTION 1. Number of Arbitrators. A sole Arbitrator or an Arbitral Tribunal of three Arbitrators may settle a dispute.

SECTION 2. Sole Arbitrator. Where the parties have agreed that the dispute(s) shall be settled by a Sole Arbitrator, They may each nominate three (3) arbitrators from the list of CIAC-accredited arbitrators. The CIAC shall choose and appoint an arbitrator from the nominees. If any or both of the parties fail to submit the names of their nominees within fifteen (15) days from the date of respondent's answer to claimant, a sole arbitrator shall be appointed by the CIAC from the nominees submitted or, if no names were submitted, from the list of CIAC-accredited arbitrators.

SECTION 3. Arbitral Tribunal. Where the parties agree that the dispute shall be settled by an Arbitral Tribunal, each party may nominate six (6) arbitrators from the list of CIAC-accredited arbitrators. The CIAC shall choose and appoint, as members of the Tribunal, one arbitrator from the claimant's nominees and another arbitrator from respondent's nominees. The Third Arbitrator who shall be the Chairman of the Tribunal, shall be selected from the list of CIAC-accredited arbitrators by the two Arbitrators first chosen within fifteen (15) days from acceptance of their appointment. In case of failure to agree on the third member within such period, the CIAC shall, within fifteen (15) days thereafter, appoint a Chairman from its list of accredited arbitrators.

SECTION 4. Disqualification of or Non-acceptance by Nominees. If the nominee(s) of a party shall be disqualified or fail or refuse to accept the appointment, CIAC shall choose and appoint any qualified arbitrator who is willing to be so appointed.

SECTION 5. Challenge. An Arbitrator may be challenged upon proof of his partiality, bias, incompetence, or professional misconduct by any one of the parties at any time during the proceedings but before award. The CIAC shall, within fifteen (15) days from receipt of the challenge, rule upon the grounds therefor and shall make a resolution which shall be final.

SECTION 6. When Arbitrator Previously Acted as Conciliator/Mediator. An Arbitrator who acted as conciliator/mediator in a case previously brought before him for conciliation/mediation cannot act as arbitrator for the same case when brought to arbitration.


The Arbitrators

SECTION 1. The Arbitrators shall be men of distinction in whom the business sector and the government can have confidence, duly accredited by the CIAC, and members in good standing of the Philippine Institute of Construction Arbitrators (PICA). They shall be technically qualified to resolve any construction dispute expediently and equitably. The Arbitrators shall come from different professions. They may include engineers, architects, construction managers, project managers, engineering consultants, businessmen familiar with the construction industry and lawyers who are experienced in construction disputes. They shall not be permanently employed with the CIAC. Instead, they shall render service only when called upon to arbitrate.


Appointment and Acceptance of Arbitrators

SECTION 1. Communication of Appointments. After the CIAC (or the two members first chosen as the case may be) has selected the Arbitrator(s) for a particular case, the Secretariat shall communicate the appointment (or proposed appointment) to the Arbitrator(s). cdt

SECTION 2. Disclosure by Arbitrator of Disqualification. Upon acceptance of appointment, the Arbitrator(s) shall disclose in writing to the CIAC any circumstance likely to create in either party a presumption of bias or which he believes might disqualify him as an impartial Arbitrator. Such written disclosure shall be communicated to the parties immediately by the Secretariat. The purpose of such disclosure shall be to enable either party to investigate and ascertain whether there is a substantial legal basis to file a motion for inhibition of the arbitrator concerned or seek his replacement.

SECTION 3. Acceptance or Refusal. The Arbitrator must communicate to the Construction industry Arbitration Commission (CIAC) and to the parties the acceptance or refusal of his appointment within five (5) working days from receipt thereof. The Secretariat shall, upon notice of acceptance or refusal, inform the parties of such acceptance or refusal.

SECTION 4. Vacancies. If any Arbitrator should resign, be incapacitated, refuse or be unable, or be disqualified for any reason to perform the duties of his office, the CIAC shall, within five (5) working days from the occurrence of a vacancy or refusal/inability to accept appointment, appoint a substitute(s) to be chosen from a list of alternatives previously agreed upon by the parties. In the absence of such a list, the CIAC shall fill the vacancy from the list of accredited arbitrators.


Preliminary Conference

SECTION 1. Preliminary Conference. In any construction dispute, after the respondent has filed his Answer, the Arbitrator/Arbitral Tribunal shall set the case for preliminary conference and a notice to the parties thereof shall be sent at least five (5) days before the date set but not later than 15 days after appointment of arbitrator to consider the following: cdtai

1. possibility of amicable settlement;

2. necessity or desirability of amendments to pleadings;

3. possibility of obtaining stipulations or admission of facts and/or documents to avoid unnecessary proof;

4. limitation of the number of witnesses;

5. simplification of the issues;

6. and such other matters as may aid in the just and speedy disposition of the case.


Terms of Reference

SECTION 1. Contents. Before proceeding with the hearing of the case, the Arbitrator(s) shall formulate the Terms of Reference (TOR) on the basis of the documents submitted and agreements reached in the preliminary and subsequent conferences with the parties. The TOR shall include the following particulars,

a) the full names of the parties and their personal circumstances;

b) the addresses of the parties to which notifications or communications arising in the course of the arbitration may validly be made;

c) a summary of the parties' respective claims;

d) definition of the issues to be determined;

e) the Arbitrators' full names, and addresses;

f) the place of arbitration;

g) the 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). aisadc

SECTION 2. Signing of the Terms of Reference. The Terms of Reference mentioned in Section 1 hereof shall be signed by the parties and the Arbitrator(s), within fifteen (15) days from the preliminary conference or the last meeting held for the purpose of finalizing the TOR as the case may be. The same shall then be transmitted to the CIAC Secretariat within three (3) days after the signing.

Upon the Arbitrator's request, the Commission through the Secretariat may in exceptional circumstances, extend this time limit.

SECTION 3. Arbitration To Proceed Even Without the Terms Of Reference. Except in cases where arbitration cannot proceed pursuant to Sections 1 and 2 of Article IV of these Rules, arbitration shall proceed despite the absence of the Terms of Reference (TOR) due to the refusal of any of the parties to sign or for reasons other than the exceptions stated above. In the absence of a TOR, all of the issues and related matters in the pleadings filed by the parties and admitted by the Sole Arbitrator or the Arbitral Tribunal, as the case may be, shall be deemed submitted for resolution by the appointed arbitrator(s).


Answer to the Request

SECTION 1. Time to Answer. The Respondent shall, within fifteen (15) days from the receipt of the Request for Arbitration and of the documents referred to Section 2 of Article II, set out his defense in an Answer, and submit relevant documents. In exceptional circumstances, the Respondent may apply to the CIAC for an extension of time for the filing of his defense and his documents. If the Respondent fails to do so, the Commission shall proceed with the arbitration in accordance with these Rules.

SECTION 2. Transmittal of Answer. A copy of the Answer and the documents attached thereto, if any, shall be transmitted in sufficient copies to the Claimant and to the Commission. cdtai



SECTION 1. Statement of Counterclaim. If the Respondent wishes to make a counterclaim(s), the some shall be included in the Answer. In such case, Respondent shall be required, upon filing of the Answer with counterclaim(s), to pay a deposit of 10% of arbitrator's fees (based on the amount of counterclaim) or P5,000 whichever is higher but not to exceed P50,000. Where the total amount of counterclaims exceeds P1 million, Respondent shall, upon filing of its Answer with counterclaim/s and in addition to deposit of arbitrator's fees, deposit an amount equivalent to 1/10 of 1 % of the amount of counterclaim. Such deposit shall be treated as Respondent's initial payment of its share of the special assessment fee of 1 /10 of 1 % of the sum in dispute imposed under CIAC Resolution No. 2-96. If the counterclaim is a non-monetary one, the amount to be charged shall be in accordance with the approved Table of Fees for such claims.

SECTION 2. Reply to Counterclaim. The Claimant shall file a reply in sufficient copies with the Commission and shall furnish the Respondent a copy thereof within fifteen (15) days from date of receipt of the counterclaim.


Pleadings and Written Statements, Notifications or Communications

SECTION 1. Number of Copies. All pleadings and written statements submitted by the parties, as well as all documents attached thereto, shall be in sufficient copies to provide one copy for each party, plus one for each Arbitrator, and one for the Secretariat. cdtai

SECTION 2. Notices. Notifications or communications from the Secretariat and/or the Arbitrator(s) shall be validly made if they are delivered against receipt or forwarded by registered mail to the address or last known address of the party/ies for whom the same are intended as notified by the party/ies in question or by the other party/ies as appropriate.

Notification or communication shall be deemed to have been effected on the date when received.


Venue and General Matters

SECTION 1. Venue, Date and Time of Hearing. The venue date and time of the arbitral proceedings shall be mutually agreed upon by the parties and the Arbitrator(s) or an Arbitral Tribunal. In the event there is disagreement, the choice of the Arbitrator(s) shall prevail.

SECTION 2. Recording of Proceedings. Proceedings before an Arbitrator or an Arbitral Tribunal may be recorded by means of any audio and/or audiovisual recording equipment such as, but not limited to, tape recorders and video cameras, or if a stenographer is available, either through stenographic notes or minutes taken of the proceedings. All recordings on tapes, films, cassettes, disks, or diskette shall be done by the CIAC and shall remain in its custody for safekeeping and eventual disposal after the resolution of the case. Copies of such recordings including transcripts and minutes of the proceedings shall be made available to the parties upon request for a nominal fee. The Sole Arbitrator or the Chairman of the Arbitral Tribunal, as the case may be, may opt to dispense with the use of recording devices or stenographic services and take down notes of the proceedings. Such notes taken shall be filed with the CIAC and shall be part of the records of the case. Copies of the notes filed shall be made available to the parties, upon request, at reproduction cost. cdtai

SECTION 3. Control Over Proceedings. The Arbitrator or the Chairman of the Arbitral Tribunal shall exercise complete control over all proceedings to insure a speedy, adequate and justifiable disposition of the disputes and cases submitted to them for resolution.

SECTION 4. Extent of Power of Arbitrator. The Arbitrator or the Arbitral Tribunal shall decide only such issues and related matters as are submitted to them for adjudication. They have no power to add, to subtract from, modify, or amend any of the terms of the contract or any supplementary agreement thereto, or any rule, regulation or policy promulgated by the CIAC.

SECTION 5. Appointment of Experts. The service of technical or legal experts may be utilized in the settlement of disputes if requested by any of the parties or by the Arbitral Tribunal. If the request for an expert is done by either or by both of the parties, it is necessary that the appointment of the expert be confirmed by the Arbitral Tribunal.

Whenever the parties request for the services of an expert, they shall equally shoulder the expert's fees and expenses, half of which shall be deposited with the Secretariat before the expert renders service. When only one party makes the request. it shall deposit the whole amount required. If the request for an expert is by the Arbitrator(s), the cost of such service(s) shall be considered part of the arbitration expenses which may be ordered to be paid by the losing party or by both parties as the arbitrator(s) in his/their award may adjudge, in the absence of a provision in the Terms of Reference signed by the parties relative to the sharing of these expenses; provided, however, both parties consented to the hiring of an expert.

SECTION 6. Interpretation and Application of Rules. The Sole Arbitrator or the Arbitral Tribunal shall interpret and apply these Rules in so far as they relate to his/its powers and duties. Where there is an Arbitral Tribunal, and a difference arises among the Arbitrators concerning the meaning or application of these Rules. the same shall be decided by a majority vote. cda

SECTION 7. Attendance of Hearings. Persons having direct interest in the arbitration are entitled to attend the hearings. It shall be discretionary upon the Arbitrator/Arbitral Tribunal to determine the propriety of the attendance of any other person. The Arbitrator/Arbitral Tribunal shall have the power to require the exclusion of any witness.

SECTION 8. Adjournments. The Arbitrator/Arbitral Tribunal for good cause shown, may adjourn the hearing upon his/its own initiative or upon the request of one of the parties. Adjournment shall not be more than five (5) working days.

Hearings may be adjourned for more then five (5) working days when such have been suspended due to payment defaults of any or both of the parties. The Arbitrator(s) shall order the suspension of hearings upon advice by the CIAC of non-payment of arbitration fees by one or both parties. Hearings shall resume upon notice by CIAC of compliance by the defaulting party/ies.

SECTION 9. Arbitration in the Absence of the Party. The Arbitration may proceed despite the absence of any party who after due notice, fails to be present or fails to obtain an adjournment. An award, however, shall not be made solely on the default of a party. It shall be made on the basis of evidence submitted and proven. cd

SECTION 10. Waiver of Rules. Any party who proceeds with the arbitration after knowledge that any provision or requirement of these Rules has not bean complied with and fails to state his objection thereto in writing, shall be deemed to have waived his right to object.

SECTION 11. Expenses and Deposit. Arbitration expenses shall include the filing fee; administrative charges, arbitrator's fees, fee and expenses of the expert, and others which may be imposed by the CIAC.

The administrative charges and arbitrator's fees shall be in accordance with the Table of Administrative Charges and Arbitrator's Fees,

The CIAC Secretariat shall charge the Claimant an initial filing fee of P3,000 plus a deposit equivalent to 10% of expected arbitrator(s)' fees (based on the claim) or P5,000 whichever is higher but not to exceed P50,000 upon filing of the claim. If the total amount of claim exceeds P1 million, Claimant shall, upon filing and in addition to the above fees, deposit an amount equivalent to 1/10 of 1% of the amount claimed. Such deposit shall be treated as Claimant's initial payment of its share of the special assessment fee of 1/10 of 1 % of the sum in dispute imposed under CIAC Resolution No. 2-96. Where the case is a non-monetary claim, the fees and deposit to be charged shall be in accordance with the approved Table of Fees for such claims.

The CIAC may fix the Arbitrator(s)' fees at a figure higher or lower than that which would result from the application of the Table of Fees if in the exceptional circumstances of the case, the same appears to be necessary.

SECTION 12. Freedom to Settle. The parties shall be free to settle the dispute(s) anytime even if the same is under arbitration. In such case, the actual expenses incurred for arbitration shall be charged against the deposit. If the deposit is insufficient, the parties shall equally shoulder the balance.

SECTION 13. Small Claims. Cases where the sum in dispute is P1 million or less may, upon request of either party, be categorized by CIAC as a small claim for purposes of qualifying for assistance under the Arbitration Development Fund established by CIAC in Resolution No. 2-96, provided that any of the following circumstances is present:

1. One or both of the parties reside(s) outside of Metro Manila; or

2. The protect site is outside of Metro Manila and the necessity of an ocular inspection or for the conduct of hearings at the site is established.

A case categorized as a small claim shall be handled by a Sole Arbitrator who shall be appointed by CIAC from among its accredited arbitrators residing nearest to the venue of hearings or to the place of residence of the party based outside of Metro Manila. The expenses of the Sole Arbitrator and CIAC staff consisting of actual expenses for travel, accommodations, and administrative costs for at most one (1) day incurred for hearings outside of Metro Manila, shall be charged against the CIAC Arbitration Development Fund. Expenses for hearings exceeding one (1) day however, shall be shouldered equally by the parties.


Arbitration Proceedings

SECTION 1. Order of Proceedings. A hearing shall be opened by recording of the place, time and date of hearing, the presence of the Arbitrator(s), parties, and witnesses, if any.

The names and addresses of all witnesses and exhibits in the order received shall be made part of the record. cdtai

SECTION 1.1 Quorum. Two members of a tribunal shall comprise a quorum for the purpose of conducting a hearing.

SECTION 2. Briefing on Rules and Procedures. At the initial hearing, the Arbitrator/Arbitral Tribunal shall inform the parties of the general rules and procedures that will be adopted to insure a speedy and adequate disposition of the issuers.

SECTION 3. Commencement of Arbitral Proceedings. The date when the signed Terms of Reference as received by the Secretariat of the CIAC shall, .for all intents and purposes, be deemed to be the date of commencement of the proceedings.

SECTION 4. Opening Statements. The initial proceedings may start with the parties making an opening statement or its explanation of the issues, a brief statement of allegations, what it proposes to prove and the relief sought.

SECTION 5. Clarification of the Issues. After the opening statements, the Arbitrator/Arbitral Tribunal shall clarify and further redefine the issues, if necessary.

SECTION 6. Order of Presentation. It shall be within the discretion of the Arbitrator/Arbitral Tribunal to determine the order of presentation. Generally, the party whose action has given rise to the dispute, or the party who seeks to enforce a right or establish a claim shall be required to present its evidence first, followed by the other party.

SECTION 7. Expeditious Procedures. The Arbitrator/Arbitral Tribunal shall at all times adopt the most expeditious procedures for the introduction and reception of evidences, and shall have complete control over the proceedings, but in any case shall afford full and equal opportunity to all parties to present relevant evidence.

SECTION 8. Evidence. The parties may offer such evidence they desire and shall produce such additional documents and witnesses as the Arbitrator/Arbitral Tribunal may deem necessary to an understanding and determination of the dispute(s). The Arbitrator/Arbitral Tribunal shall act according to justice and equity and merits of the case, without regard to technicalities or legal forms and need not be bound by any technical rule of evidence. All evidences shall be taken in the presence of the Arbitrator or a majority of the Arbitrators in an Arbitral Tribunal and all of the parties, except where any of the parties is absent, or has waived his right to be present. cd

Upon motion of either or both of the parties, or on its own initiative, the Arbitrator/Arbitral Tribunal may request any person, board, body, tribunal, or government office, agency or instrumentality, or corporation to produce real or documentary evidences necessary for the proper adjudication of the issues.

The Arbitrator/Arbitral Tribunal may, likewise, request any person to give testimony at any proceedings for arbitration.

SECTION 9. Presentation of Evidence. Unless the parties shall agree upon a different mode of presentation of evidence, the Arbitrator/Arbitral Tribunal may require the simultaneous or successive submission of affidavits of witnesses which contain both direct and rebuttal testimony, attached to which shall be the documents which they shall identify to support their respective declarations. These documents shall be properly marked for purposes of identification.

SECTION 10. Examination by Arbitrator/Arbitral Tribunal. The Arbitrator/Arbitral Tribunal may conduct the direct and cross-examination of such witnesses whether or not the parties are represented by counsel. Such counsel at his request may be allowed to ask additional direct or cross-examination questions of any witness.

SECTION 11. Documentary Evidence. As a general rule, no documentary evidence(s) presented and offered shall be rejected unless the same is found by the Arbitrator/Arbitral Tribunal to be completely irrelevant.

SECTION 12. Offer of Documents. All documents not offered with the Arbitrator/Arbitral Tribunal at the hearing but which are arranged at the hearing subsequently by agreement of the parties to be submitted, shall be filed within five (5) days from the termination of the hearing. All parties shall be afforded opportunity to examine such documents. cdt

SECTION 13. Ocular Inspection. The Arbitrator/Arbitral Tribunal may at any time during working hours, after notice to the parties who may, if they so desire, be present, conduct an ocular inspection of any building, place or premises, including any work, material, implement, machinery, appliance or any object therein, and ask any employee or laborer, or other person, as the case may be, for any information or data concerning any matter, or questions relative to the object of the investigation.

SECTION 14. Interim Measures. In the course of the proceedings, the Arbitrator(s) may, upon the request of either of both parties or upon his/their own initiative, issue orders as is necessary for the following:

a. to ensure the enforcement of the award;

b. to prevent loss or deterioration of property;

c. to minimize or avoid undue delays in project or contract implementation; or

d. such other measures deemed by the Arbitrator(s) to be necessary to prevent a miscarriage of justice or abuse of rights of any of the parties.

SECTION 15. Closing of the Hearings. The Arbitrator/Arbitral Tribunal shall inquire from all parties whether they have any further proofs to offer or witnesses to be heard. Upon receiving negative replies, the Arbitrator/Arbitral Tribunal shall declare the hearing closed and the minutes thereof shall be recorded.

SECTION 16. Reopening of Hearing. The hearing may be reopened by the Arbitrators on their own motion or upon the request of any party, upon good cause shown, at any time before the award is rendered. When hearings are thus reopened, the effective date for the closing of the hearing shall be the date of closing of the reopened hearing.

SECTION 17. Summation. The parties may make a brief oral summation and arguments at the end of the hearing.

SECTION 18. Submission of Memoranda. If any or both of the parties so desire, written memoranda may be submitted within five (5) working days from the termination of the hearing or from the date of the filing of additional documents as previously agreed upon, whichever is later.

If both parties agree to submit memoranda, the filing shall be simultaneous.

SECTION 19. Award or Decision on the Pleadings. Instead of a formal hearing, the parties may agree to submit the issues for resolution after the filing of pleadings, documents, evidences, or memoranda.

SECTION 20. Period to Make Award. The number of days within which an award shall be made will start from the date of the termination of the hearing, or from the filing of additional documents, or from the submission date of memoranda, pleadings, documents or evidences whichever is later.


The Arbitration Award

SECTION 1. Time of Award. The award shall be rendered promptly by the Arbitrator(s) within thirty (30) days from the time the case is submitted for resolution but not more than six (6) months from the date of signing of the TOR, or in cases where a TOR is absent, not more than six (6) months from the date of the conference called for the purpose of finalizing and/or signing of the TOR. There shall be no extensions of time unless approved by the CIAC. aisadc

SECTION 2. Form of Award. The Award shall be in writing and signed by the Arbitrator(s). If there is an Arbitral Tribunal, each Arbitrator must indicate his/her concurrence or dissent, and the decision of the majority shall prevail.

SECTION 3. Contents of the Award. Generally, the Award shall contain the issues involved, a brief statement and discussion of the facts, and the authority relied upon for the resolution or disposition of the issues.

SECTION 4. Award Upon Settlement. If the parties settle their dispute(s) during the course of the arbitration, the Arbitrator/Arbitral Tribunal, upon their request, may set forth the agreed settlement as an Award.

SECTION 5. Decision as to Costs of Arbitration. In the case of non-monetary claims or where the parties agreed that the sharing of fees shall be determined by the Arbitrator(s), the award shall, in addition to dealing with the merits of the case, fix the costs of the arbitration, and/or decide which of the parties shall bear the cost(s) or in what proportion the cost(s) shall be borne by each of them.

SECTION 6. Termination of Jurisdiction. The jurisdiction of the Arbitrator(s) over the dispute is terminated upon the finality of the Award or Decision. Where an appeal of the Award or Decision is taken, however, jurisdiction terminates only upon a final disposition by the appellate court of the case and/or a final determination of all incidental matters thereto.

SECTION 7. Notification of Award to Parties. Once an award has been made, provided that the costs of the arbitration have been fully paid to the Secretariat by the parties or by one of them, the Secretariat shall notify the parties of the text signed by the Arbitrator or Arbitral Tribunal.

Additional copies certified true by the Executive Director of the Secretariat shall be made available, on request and at any time, to the parties or their counsel but to none else.

SECTION 8. Deposit of Award. An original of each Award made in accordance with these Rules shall be deposited with the Secretariat.

The Arbitrators and the Secretariat shall assist the parties in complying with whatever further formalities may be necessary.

SECTION 9. Motion for Reconsideration. As a matter of policy, no motion for reconsideration of an award shall be allowed. Any of the parties may, however, file a motion for correction within fifteen (15) days from receipt of the award upon any of the following grounds:

(i) an evident miscalculation of figures, a typographical or arithmetical error

(ii) an evident mistake in the description of any party, person, date, amount, thing or property referred to in the award.

The filing of the motion for correction shall interrupt the running of the period for appeal. aisadc


Finality and Enforceability of Award

SECTION 1. Finality of Award. The arbitral award shall become final upon the lapse of fifteen days (1 5) days from receipt of notice thereof without an appeal being taken. If the award has been appealed, it shall become final upon issuance of the entry of judgment by the appellate court.

SECTION 2. Award Becoming Executory. The arbitral award shall become executory upon the lapse of fifteen (15) days from receipt of notice thereof.

SECTION 3. Appeal. An appeal from the award may be taken on pure questions of law to the Court of Appeals within the period and in the manner provided under the Revised Supreme Court Administrative Circular 1-95.

SECTION 4. Effect of Appeal. The appeal shall not stay the execution of the award sought to be reviewed unless the Court of Appeals shall direct otherwise upon such term as it may deem just

SECTION 5. Execution and Enforcement of Awards. As soon as a decision, order or award has become executory, the Arbitral Tribunal or the Single Arbitrator with the concurrence of the CIAC shall motu proprio, or on motion of the prevailing party, issue a writ of execution requiring any sheriff or other proper officer to execute said decision, order or award.


General Rule

In all matters not expressly provided for in these rules, the CIAC and the Arbitrators shall act in the spirit of these rules and shall make every effort to make sure that the award is enforceable at law.

Republic of the Philippines

Department of Trade and Industry

Construction Industry Authority of the Philippines'




WHEREAS, the Commission, pursuant to its function "to formulate and adopt an arbitration program for the construction industry" is now developing, in coordination with the Philippine Institute of Construction Arbitrators, Inc. (PICA), an Alternative Dispute Resolution (ADR) scheme, geared towards the resolution of cases with small claims, particularly those originating from the remote regional areas;

WHEREAS, there is a need to establish a fund necessary for, the implementation of the project, and from which the required capital outlay and expenses of ' CIAC relative to the development of arbitration nationwide that could be financed;

WHEREAS, under Section 13 of E.O. No. 1008, the Commission is empowered to determine and collect fees, deposits, cost of arbitration, as well as administrative and other charges as may be necessary in the performance of its functions and responsibilities;

NOW, THEREFORE, WE, THE UNDERSIGNED CIAC COMMISSIONERS, by virtue of the powers vested in us by law, do hereby RESOLVE as it hereby RESOLVED, to establish an Arbitration Development Fund from a special fee, to be imposed upon the parties in cases involving claims above P1 million, equivalent to 1/10 of 1% of the sum in dispute, in addition to the existing fees in the CIAC Table of Administrative Charges and Arbitrator's Fees.

BE IT RESOLVED FURTHER, that such special fees assessed, collected and deposited in the Arbitration Development Fund shall be treated as trust receipts to be used for the following purposes necessary for the development and promotion of arbitration:

1. To help defray the travel, accommodations an administrative expenses of Arbitrators and Staff for the out-of-town hearings of cases involving claims below P1 million;

2. Purchase of CIAC computer equipment and accessories to enhance and/or upgrade existing data banking and data exchange capabilities;

3. Purchase of telecommunication equipment and accessories to increase accessibility and outreach to the regions; and

4. Maintenance and operating expenses relative to the promotion and development of arbitration in the regions.


Done this 28th day of May 1996, at the City of Makati.

Construction Industry Arbitration Commission

Construction Industry Arbitration Commission

Construction Industry Arbitration Commission


The latest amendments to these Rules under CIAC Resolution No. 6-96 went into effect on September 20, 1996 (15 days from receipt of 3 certified copies thereof by the Office of the National Administrative Register)