Trade and industry development specialist Jonathan Tejida of the Department of Trade and Industry-Negros Occidental yesterday reminded local contractors for government projects in Bacolod and the province to renew their registration of contracts starting next month, as the Philippine Contractors Accreditation Board has adjusted the financial requirements for it this year.
Tejida said contractors should start to renew their licenses based on the new adjustments made by PCAB this year, with an increased minimum networth/equity for license categorization.
A resolution of PCAB said the minimum financial requirement has not been changed for about 13 years now and the existing networth requirements are no longer responsive to present needs, considering the magnitude of projects of public and private owners.
Most of the license categorizations doubled their minimum equity requirement this year. In Category AAA, the requirement increased from P90 million to P180 million this year and onwards, AA from P45 million to P90 million, A from P9 million to P30 million, B from P4.5 million to P10 million, C from P3 million to P6 million, D from P900,000 to P2 million, and E from P45,000 to P100,000.
Tejida said that if a contractor cannot comply with the requirements of the category it registered under, it might only apply to projects that match their networths this year.
The PCAB resolutions also said that, for Large B size range, the allowable range of contract costs for AAA license category will be above P225 million Single Largest Project (SLP) Completed and less than or above P450 million for Allowable Range of Contract Costs (ARCC);
Large A range will be for AA category which could get above P150 million to P225 million SLP and up to P450 million ARCC, Medium B range for A category will have above P175 million up to P150 million SLP and up to P300 million ARCC.
Small A range for C and D categories will get P15M or less SLP and ARCC of up to P30M, and Small A for E category will have up to P1M SLP.
Tejida said there are 140 contractors who will be affected in Bacolod and Negros with about 45 percent corporate contractors who need to renew their licenses at the regional Security and Exchange Commission in Iloilo.
The renewal will be from February 1 to June 30 this year without penalty. Tejida said those who cannot renew their contracts on time will be meted P5,000 as penalty.
The PCAB resolution also states that the adjustment for registration for government projects will take effect July 1 this year. *MLG
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