Chapter 12 Construction Dispute Arbitration

Question 1

Define Construction

Answer 1

all on-site works on buildings or altering structures, from land clearance through completion including excavation, erection and assembly and installation of components and equipment.

Question 2

Define Construction Dispute

Answer 2

those between or among parties to or who are otherwise bound by an arbitration agreement, directly or by reference, wheteher such parties are project owner, contractor, subcontractor, fabricator, project manager, deisng professional, consultant, quantity surveyor, bondsman or issuer of an insurance

Question 3

The request for the dismissal of the action and the referral to the CIAC fro arbitration shall be made through a verified motion that shall

Answer 3

(1) contain a statement showing that the dispute is a construction dispute
(2) be accompanied by proof of the existence of the arbitration agreement unless it is already part of the records of the case
(3) contain a notice of hearing

Question 4

True or False. An order dismissinmg the case and referring the dispute to arbitration by the CIAC is immediately executory.

Answer 4

True.

Question 5

When was the CIAL promulgated?

Answer 5

Feb 4 1985

Question 6

It is the quasi-judicial agency accorded witht hte jurisdiction to resolve disputes arising from contracts involving construction in the Philippines

Answer 6

CIAC

Question 7

What is the doctrine of Uniwide Sales Realty and Resources as to the policy and objective of the CIAC

Answer 7

It settled the policy and objective of the CIA which is to provide a fair and expeditious settlement of constuction disputes through a non-judicial process which ensures harmonious and friendly relations between and among the parties.

Question 8

What is the doctrine of Gammon Phils as to the policy and objective of the CIAC.

Answer 8

THE CIAC was created in recognition of the construction industry’s contribution to the national development goals. Realizing that delays in the resolution of construction industry disputes would also hold up the country’s development.

Question 9

What are the functions of CIAC.

Answer 9

1. To formulate and adopt an arbitration program for the construction industry.
2. To enunciate policies and prescribe rules and procedures for CONARB.
3. To supervise the arbitraion program and exercise such authority related thereto as regards the appointment, replacement or challenging of arbitrators.
4. And to direct its officers and employees to perform such functions as may be asssigned to them from time to time.

Question 10

Define instrumentality.

Answer 10

Is anything used as a means or agency.

Agency or instrumentaltiy are synonymoous in the sense that either of them is a means by which a government acts or by which a certain government act or function is performed.

Question 11

When was the laterst IRR of CIAC promulgated?

Answer 11

Nov 19 2005

Question 12

What does the CIAL provide for CIAC’s jurisdiction?

Answer 12

The CIAC shall have original and exclusive jurisdiction over disputes arising from or connected with contracts entered into by parties involved in construction in the Philippines, whether the disputes arise before or after the contract or after the abandonment of breach there of. Contracts may be govt or private.

Question 13

The jurisidiction of CIAC may include but not limited to:

Answer 13

a. violation of specifications for materials and workmanship
b. biolation of the terms of agreement
c. interpretation and or application of contractual provisions
d. amounts of damages and penalties
e. commencment of time and delays
f. maintenance and defects
g. payment default of employer or contractor and change in contract cost.

Question 14

What is required for CIAC to acquire jurisdiction?

Answer 14

All that is required is for the parties to a construction dispute to agree to submit their dispute to arbitration.

Question 15

True or False. The arbitration clause in the construction contract ipso facto vested the CIAC with jurisdiction.

Answer 15

True.

Question 16

True or False. The mere existence of an arbitration clause in the construction contract is considered by law as an agreement by the parties to submit existing or future controversies between them to CIAC jurisdiction without any qualification or condition.

Answer 16

true.

Question 17

True or False. Excluded from the CIAC’s jurisdiction are disputes arising from employer-employee relationships.

Answer 17

True. They are covered by the Labor laws.

Question 18

True or False. Also excluded from the CIAC’s jurisdiction are claims for moral damages, exemplary damages, opportunity or business losses in addiiton to liquidated damages and attorney’s fees.

Answer 18

True.

Question 19

Pre-Causal Consent or a present Causal consent

Answer 19

The consent to arbitration necessary for the CIAC to acquire jurisdiction.

Question 20

Where will the complain or request be filed?

Answer 20

Secretariat of the CIAC.

Question 21

How many days from filing, shall the secretariat transmit to the responent a request for his answers attaching thereto a copy of the complaint and supporting docs?

Answer 21

3

Question 22

What is the effect of unwillingness of the respondent to undergo arbitration?

Answer 22

The CIAC may dismiss the complaint without prejudice.

Question 23

The claimant may file a reply to the counterclaim within (?) days from date of receipt?

Answer 23

15

Question 24

What is a challenge to arbitrators?

Answer 24

A challenge to an arbitrator, inlcuding a motion for inhibition or a request for discqualification or replacement which shall be treated as a challenge, shall be in the form of a complaint under oath, stating distinctly the facts complained of, supported by affidavits and accompanied by such documents as may substantiate the said facts.

Question 25

The challenge should be filed at anytime after the schallnged arbitration appointment but before the lapse of how many days for the submission of memoranda or draft decision.

Answer 25

10 days.

Question 26

What are the grounds of a challenge?

Answer 26

1. Relationship by blood or marriage within the sixth degree of either party or to counsels
2. Financial fiduciary interest.
3. Partiality or bias
4. Incompetence, or professional misconduct
5. Other just and valid reasons affecting independence, impartialty, integrity and interests.

Question 27

The preliminary conference shall be held after how many days after appointment?

Answer 27

15 days.

Question 28

What matters shall be considered in prelimanary conference

Answer 28

a. possibility of amicable settlement.
b. necessity or desirability of amendment of pleadings
c. obtaining stipulations or admissions as t facts
d. limitation of witnesses
e. suggested formulation of issues
f. application for interim releief
g. such other matters as may aid in just and speedy disposition of the case.

Question 29

A draft copy document that functions like a pretrial order in judicial proceedings and controls unless corrected for manifest errors.

Answer 29

Terms of Reference (TOR)

Question 30

Venue date and time of Porceedings.

Answer 30

Mutually agreed uponby the parties, in case of disagreement the ARTTRIB shall decide.

Question 31

What is the quorum in the proceedings

Answer 31

2 members out of the 3 shall comprise a quorum.

Question 32

Who is required to present evidence first?

Answer 32

The one who has claim. Or the one who seeks to enforce a right.

Question 33

If any or both parties so desire, they may submit not later than how many dayys from the termination of the hearing, their draft deicision or final memorandum of arguments.

Answer 33

10

Question 34

Within how many doays shall the art trib render award?

Answer 34

30 days from the time the case is submitted for resolution but not more than 6 months form the date of signing of the TOR.

Question 35

When does the final arbitral award become executory?

Answer 35

Upon the lapse of 15 days from receipt thereof by the parties.

unless a timely motion for correction is filed by anyparty withing said period.

Question 36

What are prohibited pleadings in the proceedings?

Answer 36

MR and Motion for new trial.

Question 37

Where do you petition fore review from the final award of the CIAC?

Answer 37

Court of Appeals in accordance with RUle 43 of the 1997ROCP.

Question 38

Within how many days from the receipt of the final award of the CIAC can someone petition for review?

Answer 38

15 days

Question 39

Does a petition for review stay the execution of the final award?

Answer 39

No. Unless the CA issues a TRO and or PI

Question 40

In the absence of any showing of grave abuse of discretion, courts must sustain the actual findings of the CIAC arbitrator this being in accordance with the established principle that the determinintion of certain questions of fact falling within the peculiar technical expertise of an administrative agency.

Answer 40

Yes.

Question 41

What is the doctrine of Uniwide Sales as to Judicial Review?

Answer 41

The court will not review the factual findings of an arbitral tribunal upon the artful allegation that such body had misapprehended facts and will not pass upon issues which are at bottom issues of facts not matter how cleverly disguised they may be as legal questions.

The parties here had recourse for arbitration and chose the arbitrators themesleves, they must have had confidence in such arbitrators.

Save only where a clear showing is made that, in reaching the factual conclusions, the ART TRIB commited an error so egregious and hurtful to one party as to constitute a grave abuse of discretion.

Question 42

Exception to the rule, what are the grounds for SC review?

Answer 42

1. the award was procured by corruption, fruad or other undue means.
2. there was evidennt partialty
3. arbits are guilty of misconduct
4. one of arbits were disqualified
5. arbits exceeded their powers

Question 43

Which party should bear the cost of arbitration before CIAC?

Answer 43

The arbitrators shall determine it.