Great news for small scale contractors: small scale contractors can legitimize their operations through the “Pakyaw” Contractors License Application, under the Philippine Contractors Accreditation Board (PCAB).
In this article, we’ll be looking through the requirements, processes, and the differences between the Paykaw license and the regular PCAB license.
What is the PCAB Pakyaw License?
According to the PCAB Board Resolution No. 123, Series of 2022, a PCAB Pakyaw License will allow or give small-scale contractors an avenue to legitimize their operations.
Previously, PCAB licenses only allowed large-scale contractors to be recognized by the organization. With the Pakyaw License, the PCAB now legally recognizes small-scale contractors and companies.
Pakyaw Contractors License: Application Requirements
The first step to getting your PCAB Pakyaw License is to gather the requirements and prepare the application fee of PHP 542.
The requirements are:
- DTI Business Name Registration
- Territorial Scope (City/Municipality)
- Back Certificate OR Bank Statement showing a balance of at least PHP 20,000 (the date on the certificate/statement must be at least two weeks preceding the filing date)
- Authority to Verify Documents with the Depository Bank
- Authorized Managing Officer/Proprietor
- They must be at least 18-years-old
- They must have one National Certification (NC) 2 for a construction-related skill issued by TESDA (new applicants can skip this requirement but will be required to submit it upon renewal)
- Certificate of Completion of One-day Entrepreneurial Course
- Certificate of Completion of One-day Safety Seminar
READ MORE: PCAB License: Applying for a License in 2022
PCAB Pakyaw License Application: Process Flow
- Complete the application requirements.
- Use a VALID e-mail address and create an account at the PCAB Online Licensing Portal.
- Accomplish the digital forms and upload your supporting documents.
- Pay the application fee.
- Submit the completed application.
- Check the status of your application online through your account on the PCAB Online Licensing Portal.
- Once approved, you can download and print your digital license from the PCAB Online Licensing Portal.
Pakyaw License VS Regular License: What is the Difference?
There are a few differences between the pakyaw and regular PCAB license. The license that you are going to apply for widely depends on the type of organization you have and your engagement. Only those with regular licenses can engage in private and government projects, while the pakyaw license is solely for private projects.
Apart from the engagement and necessary experience needed, here are other differences between the two licenses that you might want to keep in mind when you’re ready to apply for a PCAB license:
TYPE OF ORGANIZATION
|Sole Proprietorship||Sole Proprietorship, Partnership, Corporation, OPC|
BUSINESS NAME | REGISTRATION TERRITORIAL SCOPE
|At least City or Municipality|
MINIMUM AGE REQUIREMENT FOR AUTHORIZED MANAGING OFFICER/PROPRIETOR
25-years-old (Category Trade-AAA); 35-years-old (Category AAAA)
|At least one (1) National Certification (NC) 2 issued by TESDA in a construction-related skill; Completion of 1-Day Entrepreneurial Course and 1-Day Safety Seminar|
Min. 2 years of Experience in a managerial or supervisory level; Completion of 2-Day AMO Seminar and pass the examination; Completion of 40-Hour Construction Safety and Health Seminar / 16-Hour Managerial Course
MINIMUM NET WORTH / EQUITY REQUIREMENT
PHP 100,000 to PHP 1 Billion
|APPLICATION FEE||PHP 542|
PHP 1,342 to PHP 158,542
VALIDITY OF LICENSE (RA 11711)
One Year from First Issue Date
RENEWAL OF LICENSE (RA 11711)
Annual; 2 years; 3 years
|UPGRADING OF LICENSE||No Upgrading|
Can be upgraded to a higher category
Note that you can only have one license type. Because a proprietor can only represent one company at a time, they cannot apply for another license under a different type as long as their license is approved.
Before taking on a construction project, contractors must make sure that they have the license for it before starting the project. Having a PCAB license for a project means that the contractor is authorized by PCAB to operate and to render services to their clients. Clients must also be vigilant enough to check if their contractor has a license to settle all legalities prior to the start of a construction project.
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- PCAB. (n.d.-b). Pcab.construction.gov.ph. https://pcab.construction.gov.ph
- PCAB. (n.d.-a). Pcabgovph.com. https://pcabgovph.com
- PCAB – Licensing Fee Structure | Construction Industry Authority of the Philippines. (n.d.). The Construction Industry Authority of the Philippines. http://construction.gov.ph/online_forms/pcab-licensing-fee-structure/
- Jarviz. (2022, August 10). “Pakyaw” Newest Contractor’s License. (TACS) Triple A. https://www.tripleaaaconsultancy.com/post/pakyaw-newest-contractor-s-license