Construction arbitration is based on the consent of the disputing parties, unless made compulsory by law.

Consent can be manifested in three ways: 

1. Contracting parties provide for an arbitration clause in the construction contract;

2. If there is no arbitration clause in the contract, disputing parties may sign a joint statement of issues of the dispute(s) and/or a voluntary agreement to undertake construction arbitration.

3. Any written agreement or submission to arbitration in the form of exchange of letters (by post or telefax), telexes, telegrams, emails, or any other mode of communication, even if unsigned by the parties, as long as the intent is clear that the parties agree to submit to arbitration.

R.A. 9184 (the Government Procurement Reform Act) provides that disputes that are within the competence of the CIAC shall be referred thereto. 

The Construction Industry Arbitration Commission (CIAC) shall have original and exclusive jurisdiction over disputes arising from, or connected with contracts entered into by parties involved in construction in the Philippines, whether the disputes arise before or after the contracts are completed or after they are breached.

R.A. 9285 (the Alternative Dispute Resolution Act of 2004) provides for the dismissal by a Regional Trial Court, of a construction dispute filed before it upon becoming aware that the parties had entered into an arbitration agreement.  The court shall then refer the parties to arbitration by CIAC. 

People from the government and the private sectors who meet the technical requirements set by the CIAC shall be accredited and appointed by the CIAC as arbitrators. 

Minimum Requirements for Accreditation as CIAC Arbitrator

(per CIAC Res. No. 06-2015 dated 28 September 2015)

1. At least 40 years of age at the time of application;

 2. Holder of a Bachelor’s degree in Engineering, Architecture, Law, Accountancy or any other course relevant to any field of construction or construction activity;

 3. Licensed to practice his/her profession in the Philippines and, preferably, endorsed and/or nominated by his/her professional organization through a duly approved Board Resolution;

 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 construction disputes and/or contract negotiations;

 5. In full enjoyment of his/her civil rights and must not have been convicted of a crime involving moral turpitude or of any crime for which the penalty imposed upon him/her is over six (6) months of imprisonment; and 

 6. Subject to all screening requirements and accreditation course for arbitrators to be conducted by the CIAC.

1. Sole Arbitrator - where the parties have agreed that the dispute(s) shall be settled by a sole arbitrator, each shall nominate at least six (6) from the list of CIAC-accredited arbitrators. The CIAC shall appoint the common nominee of the parties. If there is no common nominee, the parties shall be asked to agree on a common nominee within fortyeight (48) hours otherwise, the CIAC shall appoint either a Sole Arbitrator who is not a nominee of any of the parties or, if it deems it necessary, the members of the Arbitral Tribunal.

2. Arbitral Tribunal - where the parties have agreed that the dispute(s) shall be settled by an arbitral tribunal, each party nominates at least six (6) arbitrators from the list of arbitrators accredited by the CIAC. The CIAC then appoints one arbitrator from the claimant's nominees and another from the respondent's list. The third arbitrator shall be agreed upon by the two arbitrators first appointed.  The three shall decide from among themselves who shall be the chairman. Common  nominees shall be appointed. 

Disputes arising from employer-employee relationships shall be covered by the Labor Code of the Philippines. 

1. The interested party shall submit to the CIAC a request for  arbitration which shall include the following: 

         a. The names and addresses of the parties;

         b. A statement of the case/narration of the facts;

         c. The issues of the case;

         d. The list of nominees for arbitrator(s) in order of preference;

         e. Construction contract;

         f. Agreement to arbitrate;

        g. Documents establishing the circumstances of the case; and

        h. In case of government contracts, communications made with the highest authority for exhaustion of administrative remedies.   

2. The CIAC shall evaluate the documents submitted to determine if  there is a sufficient ground for arbitration.

3. If the contract does not contain an arbitration clause, the parties shall be required to submit a duly accomplished "Agreement to Arbitrate".

4. After the complaint has been filed together with the payment of the required deposits, CIAC shall notify the respondent and give him fifteen (15) days from receipt to file his answer with or without a counterclaim.

5. CIAC shall appoint the Sole Arbitrator or the members of the Arbitral Tribunal, as the case may be, pursuant to the Rules.

7. The appointed arbitrators(s) shall call the parties to a Preliminary Conference to make the Terms of Reference (TOR) based on the documents and/or personal accounts of the parties. The TOR shall include the following:

                a. A summary of the parties' respective claims;

    b. The issues involved; and

    c. Other particulars as may be relevant to make the arbitral award enforceable.

8. The Terms of Reference shall be signed by the parties and the arbitrator(s).

The award shall be in writing and signed by the arbitrator(s). If decided by  an arbitral tribunal, the decision of the majority shall prevail. Generally, the award shall contain the issues involved, a brief statement and discussion of the facts, and the authority relied upon to resolve the issues.  

The award shall become executory upon the lapse of fifteen (15) days from receipt thereof by the parties even if it has been elevated on appeal. The arbitral tribunal or the sole arbitrator, with the concurrence of the CIAC shall, automatically, or upon motion of any of the parties, issue a writ of execution ordering any sheriff or proper officer to carry out said award.