Administrative Legislation in the Philippine Contractors' Industry

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Despite the country's efforts to open its markets and promote greater productivity and market efficiency, firms in the contractors' industry continue to face challenges that hamper their entry into the Philippine market. Among these challenges is the foreign equity limitation, which, despite the absence of justifications under existing laws, remains in the legislations and creates an environment of unpredictability in the interpretation of the Philippine laws. This Policy Note recommends the amendment of the implementing rules and regulations of the Contractors' License Law, as amended, and Board Resolution No. 605-2011 of the Philippine Contractors Accreditation Board, which advance the said limitation within the Philippine contractors' industry. The study asserts that the abovementioned regulations are only a result of administrative legislation, which is unconstitutional and invalid.