PCAB action against Don Builders, Inc. pays off

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Action taken by PCAB against unlicensed contractor Don Builders, Inc. has paid off. Don Lee Builders, Inc., who admitted to PCAB that it was really Don Builders, has applied to the Philippine Contractors Accreditation Board for a PCAB license. This occurred after PCAB made exerted efforts to enforce RA 4566 in response to the complaints filed against this unlicensed contractor by PCA Metro.

PCA Metro was reliably informed that it was really Don Lee Builders, Inc. involved in the construction of the LEED registered BTTC Centre Building along Ortigas Avenue in Greenhills and the project along EDSA at the corner of Kalayaan Avenue (see related articles). This notwithstanding the fact that that signs at both sites indicate the contractor as being Don Builders, Inc. PCA Metro was also informed that Don Lee Builders was previously licensed but that it has failed to renew its license for the past eighteen (18) years, has been delisted from the PCAB list of licensed contractors sixteen years ago and is thus currently unlicensed. A SEC name search also failed to show a result for Don Builders, Inc. Don Lee Builders, Inc.

PCA Metro was informed that Don Lee Builders admitted that two of its three subcontractors at the BTTC Centre Building were also unlicensed. In this regard PCAB has ruled that it will not act on the license application of Don Lee Builders, Inc. unless it also receives the license applications of these two subcontractors. This is over and above the additional license fee (penalty) to be imposed on Don Lee Builders, Inc. for engaging in construction activities in the country without a license for the past eighteen years.

This action shows that PCAB, notwithstanding its limited resources, means business and is actively pursuing and taking action against unlicensed contractors. We are informed that PCAB is considering issuing “Cease and Desist” orders against unlicensed contractors and is also considering using the power accorded to it in terms of Section 34 of RA 4566 (The Contractors’ License Law) to institute action in court and secure a Writ of Injunction restraining unlicensed contractors. This Section waives compliance with the necessity of posting a Bond for the issuance of the Writ. Unlicensed contractors take note …… PCAB means business.

The above, in conjunction with the commitments received from some NCR BPLOs (who committed to comply with Joint Administrative Order No. 01 series of 2011 (JAO 01) issued by DTI, DILG, DPWH, DOLE and PRC which requires Local Government Units (LGUs) to, in the case of contractors, subcontractors and specialty contractors, issue Business permits only to contractors licensed by PCAB) will make it increasingly difficult for unlicensed contractors to operate.

A few questions arise from the above:

  1. Apparently the City of Makati has issued a Building Permit in respect of the Kalayaan project. As DOLE will only approve a Construction Safety and Health Program (CSHP) by licensed contractors and as a CSHP is a condition for the issuance of a Building Permit (DPWH NBCDO MC No. 02 of 2011 and JAO 01), on what basis was the Building Permit issued? The City of Makati made the commitment to strictly comply with DOLE DO 13 after the Eton incident in 2011 but seemingly do not to walk the talk.
  2. The signs at two of the project sites of, what we now know is, Don Lee Builders, Inc. reflect the name of Don Builders, Inc (which according to a name search at SEC is not of record). Did Don Lee Builders, Inc. contract for these projects as Don Builders, Inc.? The BIR should look into this as using two names is an often used ploy not to pay taxes.
© Copyright 2012 PCA Metro, All rights Reserved. Written For: PCA Metropolitan Chapter
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