- Contractors in the Philippines must hold a license from the Philippine Contractors Accreditation Board (PCAB) under the Contractors’ License Law (RA 4566).
- The license category (AAAA, AAA, AA, A, B, C, D, or Trade/Specialty) reflects the contractor’s financial capacity, experience, technical staff and equipment, and sets the size of project it may take on.
- The classification (general building, general engineering or a specialty) sets the kind of work it may do.
- Before you sign, check that the license is current and that its category and classification fit your project.
A PCAB license tells you two things about a contractor: its category, from AAAA down to D and Trade/Specialty, which sets how large a contract it may take on; and its classification, such as general building or general engineering, which sets the kind of work it may do. Check both, and the validity date, before you hire.
What PCAB does
The Philippine Contractors Accreditation Board (PCAB) licenses construction contractors under the Contractors’ License Law (Republic Act 4566). It is one of the boards under the Construction Industry Authority of the Philippines (CIAP).
To be licensed, a contractor shows PCAB its financial capacity, its experience, its technical staff and its equipment. PCAB then assigns a category and one or more classifications. Engaging in the business of contracting without a license is against the law.
License categories
The category reflects the contractor’s overall capacity. Each category corresponds to an allowable range of contract cost, so a contractor should only take on projects within its category. The exact peso ranges are set by PCAB and can change, so check PCAB’s current rules for figures.
| Category | What it is for |
|---|---|
| AAAA | Highest category, for the largest and most complex contracts |
| AAA | Very large contracts |
| AA | Large contracts |
| A | Medium to large contracts |
| B | Medium contracts |
| C | Small contracts |
| D | Smaller contracts |
| Trade / Specialty | Limited to a specific trade, such as electrical, plumbing or waterproofing |
Classifications
The classification sets the type of work. The main ones are:
- General building: buildings for shelter and other uses, such as houses, offices, schools, hospitals and commercial buildings.
- General engineering: civil works such as roads, bridges, drainage, flood control, water systems and similar infrastructure.
- Specialty: a specific trade, such as electrical, plumbing, mechanical, fire protection or waterproofing.
A contractor can hold more than one classification. For a building project, look for a general building classification.
Regular vs special licenses
- Regular license: the standard license a Philippine contractor holds and renews to keep operating.
- Special license: issued for a particular project or arrangement, for example a joint venture or consortium, or a foreign contractor allowed to work on a specific project.
Contractors bidding on government infrastructure projects must also meet the eligibility requirements of the procurement rules, which include holding the right PCAB license.
How to check a contractor’s license
- Ask for a copy of the current PCAB license.
- Check that the company name matches the one on your contract and official receipts.
- Check the license number, category, classification and validity date.
- Make sure the category covers your project’s size and the classification covers its type.
- Cross-check the details with PCAB / CIAP if anything looks unclear.
What it means for owners
A license is the starting point, not the whole picture. A contractor in the right category still needs a track record on work like yours, a clear bill of quantities, a safety program and fair contract terms. Our 10-point contractor checklist covers the rest, and the building permit guide explains what your contractor should help you file.
Working with CAD Construction
CAD Construction Corporation is a PCAB-licensed Category B general contractor based in Calasiao, Pangasinan. Since 1985 we have completed more than 300 projects across Luzon for government agencies, schools, hospitals and private developers. See our projects or message us for a quotation.
Frequently asked questions
What is the highest PCAB license category?
AAAA is the highest category, followed by AAA, AA, A, B, C, D and Trade/Specialty. Higher categories may take on larger contracts.
Does a higher category mean a better contractor?
Not on its own. A higher category means the contractor qualifies for larger contracts. For your project, what matters is that the category and classification fit its size and type, and that the contractor has a good record on similar work.
How do I verify a contractor’s PCAB license?
Ask for a copy of the license and check the company name, license number, category, classification and validity date. You can cross-check the details with PCAB, which is under the Construction Industry Authority of the Philippines (CIAP).
Do I need a PCAB-licensed contractor for a house?
Anyone engaging in the business of contracting in the Philippines needs a PCAB license. Hiring a licensed contractor also gives you a party that is accountable under the law and its license.
What PCAB category is CAD Construction?
CAD Construction Corporation is a PCAB-licensed Category B general contractor, building across Luzon since 1985.