- Only hire a contractor with a valid PCAB license whose category and classification match your project size and type.
- Compare quotations on a detailed bill of quantities (BOQ), not a single lump-sum figure.
- Make sure the contract spells out scope, schedule, progress billing, retention and exclusions.
- Under Article 1723 of the Civil Code, contractors can be liable for 15 years if a building collapses because of construction defects.
To choose a construction contractor in the Philippines, first confirm a valid PCAB license in the right category, then compare track records, detailed BOQs and contract terms. The 10 checks below are the same ones owners and developers use when they evaluate us.
1. Check the PCAB license — and its category
Contractors in the Philippines must be licensed by the Philippine Contractors Accreditation Board (PCAB) under the Contractors’ License Law (RA 4566). A license shows the contractor’s category (AAAA down to D and Trade) and classification (for example, general building or general engineering).
- Ask for a copy of the current license and check the expiry date.
- Make sure the category fits your project’s size — each category has an allowable range of contract cost.
- Make sure the classification fits the work (a building project needs a building classification).
2. Confirm business registrations
A legitimate contractor can show its SEC (or DTI) registration, BIR certificate of registration and current mayor’s/business permit, and issue official receipts or invoices. For government projects, PhilGEPS registration is also required.
3. Look at completed projects like yours
Ask for a list of completed projects of similar type and size, with client names and locations — and call one or two references. Visiting an ongoing site tells you a lot about housekeeping, safety and supervision.
4. Ask who will run your project
Find out who the project manager and site engineer will be, whether they are licensed, and how often they will be on site. Ask which trades the contractor does with its own crews and which it subcontracts, and what equipment it owns.
5. Compare detailed BOQs, not lump sums
A proper quotation is based on your plans and itemizes quantities, unit costs, labor and materials in a bill of quantities (BOQ). It should state what is excluded. Very low quotes often leave out items that come back later as change orders. For typical per-square-meter ranges, see our 2026 house construction cost guide.
6. Clarify who handles permits
Most new construction, additions and major alterations need a building permit from the Office of the Building Official under the National Building Code (PD 1096). Depending on the project, you may also need barangay clearance, a locational/zoning clearance, and a Fire Safety Evaluation Clearance from the Bureau of Fire Protection. Agree in writing who prepares and pays for each.
7. Require a construction safety and health program
DOLE requires a Construction Safety and Health Program (CSHP) for construction projects. A good contractor assigns a safety officer, provides PPE, and runs toolbox meetings. Poor safety is also a warning sign for poor quality.
8. Ask about insurance
Ask whether the contractor carries Contractor’s All Risk (CAR) insurance and third-party liability cover for the project, and whether workers are covered by SSS and other mandatory benefits.
9. Read the contract terms
The contract should clearly state:
- Scope of work, plans and specifications that form part of the contract
- Contract price, downpayment and progress billing based on actual accomplishment
- Retention (commonly 10%) released after final acceptance
- Schedule, milestones and how delays and extensions are handled
- How change orders are priced and approved
10. Understand warranty and liability
Ask what defects the contractor will repair after turnover and for how long. Separately, under Article 1723 of the Civil Code, the engineer or architect and the contractor can be held liable if a building collapses within 15 years of completion because of defects in design or construction.
Working with CAD Construction
CAD Construction Corporation is a PCAB-licensed Category B contractor that has built across Luzon since 1985 — including the Pangasinan Legislative Building and projects for PEZA, UP Baguio, First Gen and Ayala Land. Learn about us or request a quotation.
Frequently asked questions
How do I check if a contractor has a PCAB license?
Ask for a copy of the current PCAB license and check the license number, category, classification and expiry date. You can cross-check against the list of licensed contractors published by the Philippine Contractors Accreditation Board (PCAB), which is under the Construction Industry Authority of the Philippines (CIAP).
What is the difference between PCAB categories?
PCAB categories (AAAA, AAA, AA, A, B, C, D and Trade/Specialty) reflect a contractor’s financial capacity, experience and equipment. Each category corresponds to an allowable range of contract cost, so a contractor should only take projects that fit its category.
How much downpayment should I give a contractor?
Terms vary by project, but a mobilization downpayment followed by progress billings based on actual accomplishment is standard. Avoid paying far ahead of work done, and keep a retention (commonly 10%) until final acceptance.
Do I need a building permit for a house renovation?
Under the National Building Code (PD 1096), most new construction, additions, alterations and major repairs need a building permit from the Office of the Building Official of your city or municipality. Minor repairs may be exempt — check with your LGU.