NPM 007-2011

Requesting Entity: Department of Transportation and Communication

Issues Concern: Valid PCAB License and Registration for Joint Venture Bidders



Requirement for the submission of Joint Venture (JV) License by bidders forming into a JV.

A reading of Section 38 of RA 4566 reveals that two or more contractors jointly submitting a bid are prohibited from doing so without first having secured a Joint License for acting in the capacity of such a JV. In this regard, we wish to clarify that a "valid PCAB license" for several contractors participating as a joint venture is the Joint License provided in the afore-mentioned Section of RA 4566. Corollary to this, a contractor's Individual License as provided in Section 37 of RA 4566 is considered a "valid PCAB license" only when such contractor is participating individually. This is further supported by the Generic Procurement Manual for Infrastructure Projects which states that, in case of joint ventures, the license and registration must be that of the joint venture, not any of its members.

The requirement for a Joint License for JV bidders should not be confused with the requirement for the submission of a Joint Venture Agreement provided in Section 23.1 (b) of the IRR of RA 9184. The former pertains to the PCAB license and registration required from contractors engaging in construction business as mandated by RA 4566 while the latter pertains to the document establishing the status of the bidder as a JV entity.