Saturday, October 4, 2014

CIAC Revised Rules of Procedure Governing Construction Arbitration

(As amended by CIAC Resolution Nos. 15-2006, 16-2006, 18-2006, 19-2006,
02-2007, 07-2007, 13-2007, 02-2008, 03-2008, 11-2008, 01-2010, 04-2010, and 07-2010 )
SECTION 1.1 Statement of policy and objectives - It is the policy and objective of these Rules to
provide a fair and expeditious resolution of construction disputes as an alternative to judicial
proceedings, which may restore the disrupted harmonious and friendly relationships between or
among the parties.
SECTION 1.2 Applicability of rules - These Rules are applicable to proceedings in arbitration
before an Arbitral Tribunal of one or more Arbitrator/s.
SECTION 1.3 Judicial rules not controlling - In any arbitration proceedings under these Rules,
the judicial rules of evidence need not be controlling, and it is the spirit and intention of these Rules
to ascertain the facts in each case by every and all reasonable means without regard to
technicalities of law or procedure
SECTION 2.1 Jurisdiction – The CIAC shall have original and exclusive jurisdiction over
construction disputes, which arose from, or is connected with contracts entered into by parties
involved in construction in the Philippines whether the dispute arose before or after the completion
of the contract, or after the abandonment or breach thereof. These disputes may involve
government or private contracts.1
2.1.1 The jurisdiction of the CIAC may include but is not limited to violation of specifications
for materials and workmanship; violation of the terms of agreement; interpretation and/or
application of contractual provisions; amount of damages and penalties; commencement time
and delays; maintenance and defects; payment default of employer or contractor and changes
in contract cost.2
SECTION 2.2 Coverage – Construction dispute shall include those between or among parties to,
or who are otherwise bound by, an arbitration agreement, directly or by reference, whether such
parties are project owner, contractor, subcontractor, fabricator, project manager, design
professional, consultant, quantity surveyor, bondsman or issuer of an insurance policy in a
construction project.3
2.2.1 The CIAC shall continue to exercise original and exclusive jurisdiction over construction
disputes although the arbitration is commercial pursuant to Section 21 of R.A. 9285 or the
Alternative Dispute Resolution Act of 2004.
2.2.2 Excluded from the coverage of this Rules are disputes arising from employer-employee
relationships, which shall continue to be covered by the Labor Code of the Philippines.

SECTION 2.3 Condition for exercise of jurisdiction - For the CIAC to acquire jurisdiction, the
parties to a dispute must be bound by an arbitration agreement in their contract or subsequently
agree to submit the same to voluntary arbitration.
2.3.1 Such arbitration agreement or subsequent submission must be alleged in the
Complaint. Such submission may be an exchange of communication between the parties or
some other form showing that the parties have agreed to submit their dispute to arbitration.
Copies of such communication or other form shall be attached to the Complaint. 4
2.3.2 If the Complaint is filed without the required arbitration clause or subsequent
submission, the CIAC Secretariat shall within three (3) days from such filing, notify the
Respondent that, if he/it is willing to have the dispute be resolved by arbitration, such
agreement must be clearly expressed in the Answer.5
2.3.3 Respondent’s refusal to Answer the Complaint or the filing of a Motion to Dismiss for
lack of jurisdiction shall be deemed a refusal to submit to arbitration. In either case, the
Commission (CIAC) shall dismiss the Complaint without prejudice to its refiling upon a
subsequent submission.6
SECTION 2.4 Jurisdictional challenge – A motion to dismiss based on lack of jurisdiction shall be
resolved by the appointed arbitral tribunal.
2.4.1 The Arbitral Tribunal shall have full authority to resolve all issues raised in the Motion to
Dismiss for lack of jurisdiction on the grounds that the dispute is not a construction dispute, or
that the Respondent was represented by one without capacity to enter into a binding arbitration
agreement, or that said agreement or submission is not valid for some other reasons, or does
not cover the particular dispute sought to be arbitrated, or other issues of interpretation or nonfulfillment
of pre-conditions to arbitration that are raised therein.7
SECTION 2.5 Non-waiver of jurisdictional challenge - A party does not waive its right to
challenge the jurisdiction of CIAC by any of the following acts:
a) participating in the nomination process including challenging the
qualifications of a nominee;
b) praying for extension of time to file appropriate pleading/motion to
c) opposing an application for interim relief;
d) filing of a motion to dismiss/suspend.
SECTION 3.1 Filing - Any party to a construction contract desiring to avail of arbitration shall file
its Request for Arbitration in the prescribed form and number of copies to the Secretariat of the
SECTION 3.2 Preconditions. The claimant against the government, in a government construction
contract, shall state in the complaint/request for arbitration that 1) all administrative remedies have
been exhausted, or 2) there is unreasonable delay in acting upon the claim by the government
office or officer to whom appeal is made, or 3) due to the application for interim relief, exhaustion of
administrative remedies is not practicable.

3.2.1 The Claimant in a private construction contract has the same obligation as the above to
show similar good faith compliance with all preconditions imposed therein or exemptions
3.2.2 In case of non-compliance with the precondition contractually imposed, absent a
showing of justifiable reasons, exemption, or a waiver thereof, the tribunal shall suspend
arbitration proceedings pending compliance therewith within a reasonable period directed by
the Tribunal.
SECTION 3.3 Request to answer - The CIAC Secretariat shall within three (3) days from filing,
transmit to the Respondent a request for his Answer, attaching thereto a copy of the complaint and
the Request for Arbitration together with the annexed documents.
SECTION 3.4 Commencement of arbitral proceedings - The date when the Request for
Arbitration is filed with CIAC shall, for all intents and purposes, be deemed to be the date of
commencement of the proceedings.
SECTION 4.1. Submission to CIAC jurisdiction - An arbitration clause in a construction contract
or a submission to arbitration of a construction dispute shall be deemed an agreement to submit an
existing or future controversy to CIAC jurisdiction, notwithstanding the reference to a different
arbitration institution or arbitral body in such contract or submission.8
4.1.1 When a contract contains a clause for the submission of a future controversy to
arbitration, it is not necessary for the parties to enter into a submission agreement before the
Claimant may invoke the jurisdiction of CIAC.
4.1.2 An arbitration agreement or a submission to arbitration shall be in writing, but it need
not be signed by the parties, as long as the intent is clear that the parties agree to submit a
present or future controversy arising from a construction contract to arbitration. It may be in the
form of exchange of letters sent by post or by telefax, telexes, telegrams, electronic mail or any
other mode of communication.
SECTION 4.2 Failure or refusal to arbitrate - Where the jurisdiction of CIAC is properly invoked
by the filing of a Request for Arbitration in accordance with these Rules, the failure despite due
notice which amounts to a refusal of the Respondent to arbitrate, shall not stay the proceedings
notwithstanding the absence or lack of participation of the Respondent. In such case, CIAC shall
appoint the arbitrator/s in accordance with these Rules. Arbitration proceedings shall continue, and
the award shall be made after receiving the evidence of the Claimant.
4.2.1 In the event that, before award, the Respondent who had not earlier questioned the
jurisdiction of the Tribunal, appears and offers to present his evidence, the Arbitral Tribunal
may, for reasons that justifies the failure to appear, reopen the proceedings, require him to file
his answer with or without counterclaims, pay the fees, where required under these Rules, and
allow him to present his evidence, with limited right to cross examine witnesses already
presented in the discretion of the Tribunal. Evidence already admitted shall remain. The
Tribunal shall decide the effect of such controverting evidence presented by the Respondent
on evidence already admitted prior to such belated appearance.
SECTION 4.3. When arbitration cannot proceed - Where the contract between the parties does
not provide for arbitration and the parties cannot agree to submit the dispute(s) to arbitration, the
arbitration cannot proceed and the Claimant/s shall be informed of that fact.

SECTION 5.1 Time to answer - The Respondent shall, within fifteen (15) days from receipt of the
Request for Arbitration/Complaint, file its answer thereto including such counterclaim/s as it may
assert. For justifiable reason/s, Respondent may apply to CIAC for an extension of time to file its
answer. If Respondent fails to do so, the arbitration shall proceed in accordance with these Rules.
SECTION 5. 2 Transmittal of answer - A copy of the answer shall be transmitted in sufficient
copies to the Claimant and to CIAC.
SECTION 5.3 Reply to counterclaim - The Claimant shall file a reply to the counterclaim with
CIAC and shall furnish the Respondent a copy thereof within fifteen (15) days from date of receipt
of the answer with counterclaim.
SECTION 6.1 Number of copies - All pleadings and written statements submitted by the parties,
as well as all documents attached thereto, shall be in sufficient copies to provide one copy for each
party, plus one for each Arbitrator, and one for the Secretariat.
SECTION 6.2 Notices - Notifications or communications from the Secretariat and/or the
Arbitrator(s) shall be validly made if they are delivered against receipt or forwarded by registered
mail to the address or last known address of the party/ies for whom the same are intended as
notified by the party/ies in question or by the other party/ies as appropriate.
If the Notice to Respondent/Request to Answer the complaint under Section 3.3 hereof is not
received by Respondent due to wrong address or because Respondent has moved out from, or
cannot be found at, the last known address provided by the Claimant, the CIAC Secretariat shall
inform the Claimant of the non-delivery/non-receipt of the notice and require Claimant to provide
CIAC with Respondent’s correct/new address within fifteen (15) days from receipt of advice. If
Claimant fails to comply, the Commission shall dismiss the case without prejudice to its refiling
once the whereabouts of Respondent/s are known to Claimant/s.9
6.2.1 Notification or communication shall be deemed to have been effected on the date when
actually or constructively received.
SECTION 7.1 Confidentiality of proceedings – The arbitration proceedings shall be considered
confidential and shall not be published except (i) with the consent of the parties, or (ii) when
necessary in case resort to the Court is made under the Rules of Court. The term “arbitration
proceedings” shall include communications to or from CIAC, the pleadings, applications and other
papers filed with CIAC, sworn statements, documentary and testimonial evidence, reports and
minutes taken of the proceedings, and other orders, decision, award or resolution issued by the
SECTION 7.2 Violation of confidentiality – Any person who violates the immediately preceding
confidentiality provision shall be subject to the following sanctions:
7.2.1 If the violator is a lawyer, administrative action or proceeding to be conducted by CIAC,
with proper notice and hearing, for inhibition or prohibition from appearing as counsel for any
party in any arbitration case before CIAC for a period not exceeding six (6) months; without
prejudice to suspension or disbarment action before the Integrated Bar of the Philippines (IBP),
at the instance of CIAC.

7.2.2 If the violator is a duly licensed and registered professional, administrative/ disciplinary
action before the Professional Regulation Commission (PRC), at the instance of CIAC.
SECTION 8.1 General qualification of arbitrators - The Arbitrators shall be men of distinction in
whom the business sector and the government can have confidence. They shall be technically
qualified to resolve any construction dispute expeditiously and equitably. The Arbitrators shall
come from different professions. They may include engineers, architects, construction managers,
engineering consultants, and businessmen familiar with the construction industry and lawyers who
are experienced in construction disputes.
SECTION 8.2 The Arbitrators must be CIAC-accredited - Only CIAC-accredited arbitrators may
be nominated by parties or by the first two arbitrators appointed as the third member of a Tribunal
and appointed by CIAC as arbitrator. A replacement arbitrator shall likewise be a CIAC-accredited
arbitrator. However, as an exception to this rule, CIAC may appoint to an Arbitral Tribunal an
arbitrator who is not CIAC - accredited PROVIDED that the nominee: 1) is the parties’ common
nominee; 2) possesses the technical/legal competence to handle the construction dispute
involved; and 3) has signified his availability/acceptance of his possible appointments.10
SECTION 8.3 Arbitrators not permanent employees of CIAC - The Arbitrators shall render
service only when called upon to arbitrate a construction dispute.
SECTION 8.4 Exemptions from civil liability for official acts - Arbitrators shall not be civilly liable
for acts done in the performance of their official duties except in a clear case of bad faith, malice or
gross negligence as provided in Section 38 (1), Chapter 9, Book 1 of the Administrative Code of
SECTION 9.1 Number of arbitrators - A Tribunal of one or three Arbitrators may be appointed to
settle a dispute in accordance with the provisions hereunder.
9.1.1 The parties shall submit the name/s of not more than six (6) nominees from CIACaccredited
arbitrators in the order of their preference for appointment as arbitrators. The
common nominee/s of the parties shall be appointed, subject to their availability and other
considerations. 11
9.1.2 In the absence of an agreement on the number of arbitrators, CIAC taking into
consideration the complexities and intricacies of the dispute/s or the sum involved, has the
option to appoint a Sole Arbitrator or an Arbitral Tribunal.12
9.1.3 In case of multiple parties, whether as Claimant or as Respondent, including three (3) or
more parties in the arbitration, where all parties are unable to agree to a method for
constitution of the Tribunal within ten (10) days from notice, CIAC shall appoint the
SECTION 9.2 Sole Arbitrator - Where the parties have agreed that the dispute(s) shall be settled
by a Sole Arbitrator, each party shall have the right to nominate six arbitrators. If any or both of the
parties fail to submit the names of their nominees within the period/s prescribed by CIAC, a Sole
Arbitrator shall be appointed by CIAC.

9.2.1 CIAC shall appoint as sole arbitrator the common nominee of the parties who is
available and not disqualified. In the absence of a common nominee or in cases where the
common nominee is disqualified or is not available, CIAC shall return the lists of nominees to the
parties and ask them to make an agreement on a common nominee/s within 48 hours. If the
parties still fail to agree on a common nominee, CIAC may appoint a Sole Arbitrator or an Arbitral
Tribunal. If CIAC decides to appoint a Sole Arbitrator, it may select an arbitrator who is not a
nominee of any one of the parties and who is not disqualified and is available for appointment.14
SECTION 9.3 Arbitral Tribunal - Where the parties agree that the dispute shall be resolved by an
Arbitral Tribunal, each party shall have the right to nominate six arbitrators from the list of CIACaccredited
arbitrators. If there is no common nominee, CIAC shall choose and appoint, as
members of the Tribunal, one arbitrator from the claimant’s nominees and another arbitrator from
respondent’s nominees. The Third Arbitrator shall be selected by the two Arbitrators first chosen
within fifteen (15) days from acceptance of their appointment. The three arbitrators shall decide
from among themselves who will be the Chairman. In case of failure to agree on the third member
within such period, CIAC shall, within fifteen (15) days thereafter, appoint the third member from its
list of accredited arbitrators.
9.3.1 If there is a common nominee, CIAC shall appoint the common nominee and one from
each list submitted by the parties. The three arbitrators appointed shall designate their
Chairman. If there are two common nominees, CIAC shall appoint them and the third member
who shall be selected by the first two appointees within the period prescribed above. If there
are three common nominees, all of them shall be appointed. The appointees shall designate
their Chairman.
SECTION 9.4 Conditions for appointment of foreign arbitrator 15 - A foreign arbitrator not
accredited by CIAC may be appointed as a co-arbitrator or chairperson of an arbitral tribunal for a
construction dispute under the following conditions:
a) the dispute is a construction dispute in which one party is an international
party16 i.e. one whose place of business is outside the Philippines. For this
purpose, the term international party shall not include a domestic
subsidiary of such international party or a co-venturer in a joint venture
with a party which has its place of business in the Philippines.
b) the foreign arbitrator to be appointed is not a national of the Philippines
and is not of the same nationality as the international party in the dispute;
9.4.1 Procedure for appointment of foreign arbitrator.- The foreign arbitrator must be
nominated by the international party or is the common choice of the two CIAC-accredited
arbitrators one of whom was nominated by the international party. The nomination must be
accompanied by a resume or bio-data of the nominee relevant to qualifications as a
construction arbitrator and a signed undertaking of the nominee to abide by CIAC arbitration
rules and policies.
SECTION 9. 5 Disqualification of or non-acceptance by nominees - If the nominee(s) of a party
shall be disqualified or fail or refuse to accept the appointment, CIAC shall choose and appoint any
qualified arbitrator who is willing to be so appointed.

SECTION 9.6 Challenge17 - An Arbitrator may be challenged by a party at any time after his
appointment but before the lapse of the original 10-day period for submission of memoranda or
draft decision under Section 13.16, Rule 13 hereof. Any extensions of time to file memoranda or
draft decisions will not EXTEND the 10-day period to file a challenge or motion for inhibition. The
challenge shall be based upon the following grounds:
a) relationship by blood or marriage within the sixth degree of either party to
the controversy, or to counsels within the fourth degree, computed
according to the rules of civil law.
b) financial, fiduciary or other interest in the controversy
c) partiality or bias;
d) incompetence, or professional misconduct.
A party may also request the inhibition of an arbitrator upon other just and valid reasons affecting
independence, integrity, impartiality and interest.
9.6.1 A motion for inhibition or a request for the disqualification and replacement of an
arbitrator shall be treated as a challenge.
9.6.2 The challenge, motion or request shall be in the form of a complaint under oath, stating
distinctly and concisely the facts complained of, supported by affidavits, if any, of persons
having personal knowledge of the facts therein alleged and shall be accompanied with copies
of such documents as may substantiate said facts.
9.6.3 The arbitrator concerned shall be given by CIAC an opportunity to be heard. He may,
without admitting the existence of the ground of the challenge, motion or request, choose to
inhibit himself but his decision shall be subject to approval by CIAC.
9.6.4 In case the challenged arbitrator is allowed to inhibit himself or is removed, CIAC shall
promptly appoint his replacement. If the arbitrator concerned is the third member of the Arbitral
Tribunal, the first two members thereof shall select his replacement.
9.6.5 The decision of CIAC to retain or replace an arbitrator shall be final.
SECTION 9. 7 Disqualification of mediator as arbitrator - An Arbitrator who acted as
conciliator/mediator in a case previously brought before him for conciliation/mediation cannot act
as arbitrator for the same case when brought to arbitration, unless both parties consent to his
appointment in writing.
SECTION 10.1 Communication of appointments - The Secretariat shall communicate to the
arbitrators their appointment.
SECTION 10.2 Disclosure by arbitrator of disqualification18 - Upon acceptance of his appointment,
the Arbitrator shall disclose in writing to CIAC any circumstance likely to create in either party a
presumption of bias or which he believes might disqualify him as an impartial Arbitrator. Such
written disclosure shall be communicated to the parties immediately by the Secretariat. The
purpose of such disclosure shall be to enable either party to investigate and ascertain
whether there is a substantial legal basis to file a motion for inhibition of the arbitrator concerned or
seek his replacement.

SECTION 10.3 Acceptance or refusal - The arbitrator must communicate to CIAC the acceptance
or refusal of his/her appointment within five (5) days from receipt thereof. If no communication is
received within the prescribed period, CIAC shall appoint a replacement from the list of the party
who nominated him/her or, if none is available or qualified, from the list of CIAC-accredited
SECTION 10.4 Vacancies 19- If, at any time during the proceedings but before an award has been
rendered, any Arbitrator should resign, be incapacitated, refuse or be unable, or be disqualified for
any reason to perform the duties of his office, CIAC may, within five (5) days from the occurrence
of a vacancy or refusal/inability to accept appointment, appoint a substitute(s) to be chosen from a
list of alternatives previously agreed upon by the parties. In the absence of such a list, the CIAC
shall fill the vacancy from the list of accredited arbitrators.
If the vacancy occurs after the award has been rendered but before the jurisdiction of the
arbitrator/s over the dispute is terminated under Section 16.6 of Rule 16 hereof, the CIAC may, on
its own initiative, or upon written request of any of the parties, appoint a replacement from the list
of alternatives previously agreed upon by the parties or the list of accredited arbitrators. The
request shall state the justification/s for the need for a replacement and shall be filed together with
the required deposit of arbitrators fees for the substitute/s. The CIAC may, if it finds it necessary,
appoint a substitute/s. If the CIAC finds the request to be unnecessary (e.g. for Motions for
correction of final award under Rule 17.1; Motions for execution or stay of execution under Rules
18.5 and 18.6; Motions for relief not covered by the Rules under Rule 19.1; cases where the
appellate court merely directs a re-computation of the award or a clarification thereof, or other
matters which do not entail a re-hearing of the case, or a hearing on the merits of any issue, or
would not disturb/alter the findings in the final award; and other similar instances as determined by
the CIAC), it shall deny the same, refund the deposit made, and direct the remaining/surviving
arbitrator/s to act on pending matters.
The decision of the CIAC on vacancies shall be final.
SECTION 11.1 Notice of conference - The Arbitrator/Arbitral Tribunal shall set the case for
preliminary conference not later than 15 days after appointment of arbitrator(s) and a notice to the
parties thereof shall forthwith be sent to finalize the Terms of Reference as provided in RULE 1.4
below, a draft copy of which is attached thereto and to consider the following, among others:
a. possibility of amicable settlement;
b. necessity or desirability of amendments to pleadings;
c. obtaining stipulations or admission of facts and/or documents to avoid
unnecessary proof;
d. limitation of the number of witnesses;
e. suggested formulation of issues by the parties;
f. application for interim relief, appointment of experts and necessity of site
inspection; and
g. such other matters as may aid in the just and speedy disposition of the
SECTION 11.2 Introduction of the arbitrators – At the start of the preliminary conference, the
arbitrator/s shall introduce themselves to the parties paying particular attention to matters related to
professional training and experience.

SECTION 11.3 Disclosure 20 – During the preliminary conference the Arbitrator who had failed to
make his or her written disclosure required in the previous section shall disclose any circumstance
likely to give rise to justifiable doubts as to impartiality or independence, including financial or
personal interest in the outcome of the arbitration and any existing or past relationships with any
individual or corporate party together with their respective relatives or principal
stockholders/officers or foreseeable participant in the proceedings. On the basis of such
disclosure, either party may ask clarificatory questions thereon that may lead to a decision to move
for inhibition or accept the appointment.
SECTION 11.4 Terms of Reference. - This document functions like a pre-trial order in judicial
proceedings and controls the arbitration proceedings unless corrected for manifest errors by
motion filed not later than the hearing date.
11.4.1 Contents - The TOR shall include the following particulars:
a) the full names of the parties, and their respective counsels, if any;
b) the addresses and contact numbers of the parties/counsels, to which
notifications or communications arising in the course of the arbitration may
validly be made;
c) a summary of the parties' respective claims;
d) full statement of admitted facts and documents;
e) the issues to be resolved in question form;
f) the Arbitrators' full names;
g) the place where arbitration proceedings shall be held;
h) the breakdown, schedule of payments, and sharing of arbitration fees;
i) such other particulars as may be required by the Arbitral Tribunal for the
proper and speedy adjudication of the case.
11.4.2 Signing - The Terms of Reference (TOR) shall be signed on each and every page
thereof, by the parties together with their respective counsel and the Arbitral Tribunal
immediately after finalization thereof. In any case, the TOR must be finalized and signed not
later than five (5) days from inception.
SECTION 11.5 Arbitration To Proceed Even Without TOR. - In the exercise of the sound
discretion of the Arbitral Tribunal, arbitration shall proceed even without the TOR on the basis of
the issues formulated by the pleadings filed by the parties.
SECTION 11.6 Submission for Decision. – No factual issue being in dispute, the case may be
deemed submitted for decision without an oral hearing and on the basis of documentary evidence
already submitted.
SECTION 12.1 Venue, Date and Time of Hearing - The venue, date and time of the arbitral
proceedings shall be mutually agreed upon by the parties and the Arbitral Tribunal. In the event of
disagreement, the choice of venue made by the Arbitral Tribunal shall prevail.
SECTION 13.1 Order of Proceedings - A hearing shall be opened by recording of the place, time
and date of hearing, the presence of the Arbitral Tribunal, parties, and witnesses, if any. The
names and addresses of all witnesses and exhibits in the order received shall be made part of the

13.1.1 Quorum - Two members of a tribunal shall comprise a quorum for the purpose of
conducting a hearing.
SECTION 13.2 Briefing on Rules and procedures - At the initial hearing, the Arbitral Tribunal shall
inform the parties of the general rules and procedures on arbitration proceedings, stressing
peculiarities from judicial proceedings, its strict adherence to time bars, its policies against
postponements and other matters to insure a speedy and fair disposition of the issues.
SECTION 13.3 Order of presentation - It shall be within the discretion of the Arbitral Tribunal to
determine the order of presentation of evidence. Generally, the party who seeks to enforce a right
or establish a claim shall be required to present its evidence first, followed by the other party.
SECTION 13.4 Expeditious procedures - The Arbitral Tribunal shall at all times adopt the most
expeditious procedures for the introduction and reception of evidences, and shall have complete
control over the proceedings, but in any case shall afford full and equal opportunity to all parties to
present relevant evidence.
SECTION 13.5 Evidence - The parties may offer such evidence as they desire and shall produce
such additional documents and witnesses as the Arbitral Tribunal may deem necessary to clear
understanding of facts issues for a judicious determination of the dispute(s). The Arbitral Tribunal
shall act according to justice and equity and merits of the case, without regard to technicalities or
legal forms and need not be bound by any technical rule of evidence. Evidence shall be taken in
the presence of the Arbitral Tribunal and all of the parties, except where any of the parties is
absent, or has waived his right to be present.
13.5.1 Order to produce documentary evidence. Upon motion of either or both of the parties, or
on its own initiative, the Arbitral Tribunal may direct any person, board, body, tribunal, or
government office, agency or instrumentality, or corporation to produce real or documentary
evidences necessary for the proper adjudication of the issues.
13.5.2 Order to give testimony. The Arbitral Tribunal may, likewise, direct any person to give
testimony at any proceedings for arbitration.
SECTION 13.6 Affidavit in lieu of direct testimony - The Arbitral Tribunal shall require the
simultaneous submission of affidavits of witnesses in lieu of their direct testimonies attaching
thereto pertinent documents supportive of their respective declarations. These documents shall be
properly marked for purposes of identification.
SECTION 13.7 Examination by the Arbitral Tribunal - The Arbitral Tribunal may ask clarificatory
questions of the witnesses at any stage of the proceedings
SECTION 13.8 Documentary evidence - As a general rule, no documentary evidence(s)
presented and offered shall be rejected unless the same is found by the Arbitral Tribunal to be
completely irrelevant.
SECTION 13.9 Offer of documents - All documents not offered with the Arbitral Tribunal at the
hearing but which are arranged at the hearing subsequently by agreement of the parties to be
submitted, shall be filed within five (5) days from the termination of the hearing. All parties shall be
afforded opportunity to examine such documents.
SECTION 13.10 Site inspection –The Arbitral Tribunal may, motu proprio after notice to the
parties, or upon motion of a party, conduct a site inspection of any building, place or premises,
including any work, material, implement, machinery, appliance or any object therein. The Tribunal
in deciding on the necessity of a site inspection, may consider whether a video or pictorial
presentation may suffice.

13.10.1 Costs including transportation, accommodations, meals, rental fee for the video/still
camera, services, video tape recording, copy of pictures and other expenses shall be equally
shared by both parties. In special cases upon the order of the Arbitral Tribunal, the party who
seeks this video and will benefit from it shall bear the expenses.
SECTION 13.11 Adjournments - The Arbitral Tribunal for good cause shown, may adjourn the
hearing upon his/its own initiative or upon the request of one of the parties. Adjournment shall not
be more than five (5) working days.
13.11.1 Hearings may be adjourned for more than five (5) working days when such have been
suspended due to payment defaults of any or both of the parties. The Arbitral Tribunal shall
order the suspension of hearings upon advice by CIAC of non-payment of arbitration fees by
one or both parties. Hearings shall resume upon notice by CIAC of compliance by the
defaulting party/ies.
SECTION 13.12 Arbitration in the absence of the party - The Arbitration may proceed despite the
absence of any party who after due notice fails to be present or fails to obtain an adjournment. An
award, however, shall not be made solely on the default of a party. It shall be made on the basis of
evidence submitted and proven.
SECTION 13.13 Closing of the hearings - After the submission of the draft decision/final
memorandum of arguments and/or the lapse of the period given for the submission thereof, the
proceedings is considered closed and no further pleadings/papers shall be filed nor accepted for
SECTION 13.14 Reopening of hearing - The hearing may be reopened by the Arbitral Tribunal on
their own motion or upon the request of any party, upon good cause shown, at any time before the
award is rendered. When hearings are thus reopened, the effective date for the closing of the
hearing shall be the date of closing of the reopened hearing.
SECTION 13.15 Summation - The Arbitral Tribunal may direct the parties to make a brief oral
summation at the end of the oral hearing.
SECTION 13.16 Submission of memoranda or draft decisions 21 - If any or both of the parties so
desire, written memoranda or draft decisions may be submitted not later than ten (10) calendar
days from the termination of the hearing or from the date of the filing of additional documents as
previously agreed upon, whichever is later.
13.16.1 If both parties agree to submit memoranda or draft decisions, the filing shall be
SECTION 13.17 Award or decision on the pleadings - Instead of a formal hearing, the parties may
agree to submit the issues for resolution after the filing of pleadings, evidence, memoranda or draft
SECTION 13.18 Period to make a final award - The number of days within which an award shall
be made will start from the date of the termination of the hearing, or from the filing of additional
documents, or from the submission date of memoranda, pleadings, documents or evidences
whichever is later.
SECTION 14.1 Interim measures - In the course of the proceedings, the Arbitral Tribunal may,
upon the request of either or both parties or upon its own initiative, issue orders as is necessary to
attain the following objectives:

a. to ensure the enforcement of the award;
b. to prevent irreparable loss or injury or deterioration of property;
c. to minimize or avoid undue delays in project or contract implementation;
d. to provide security for the performance of any obligation;
e. to produce or preserve any evidence;
f. such other measures deemed by the Arbitral Tribunal to be necessary to
prevent a miscarriage of justice or abuse of rights of any of the parties.
14.1.1 The order granting provisional relief may be conditioned upon provision of security for
any act or omission specified in the order.
14.1.2 Such interim measures may include but shall not be limited to preliminary injunction
directed against a party, appointment of receivers or detention, preservation, inspection of
property, that is the subject of dispute in arbitration. Either party may apply to the Court for
assistance in implementing or enforcing an interim measure ordered by an Arbitral Tribunal
SECTION 15.1 Appointment of experts 22 - The service of technical or legal experts may be
utilized if requested by any of the parties or if deemed necessary by the Arbitral Tribunal. If the
request for an expert is made by either or by both of the parties, the necessity of such appointment
must be confirmed by the Arbitral Tribunal before issuing an appointment.
15.1.1 Whenever the parties request for the services of an expert, they shall equally shoulder
the expert's fees and expenses, half of which shall be deposited with the Secretariat before the
expert renders service. When only one party makes the request, it shall deposit the whole
amount required. If the request for an expert is by the Arbitral Tribunal, the cost of such
service(s) shall be considered part of the arbitration expenses which may be ordered to be paid
by the losing party or by both parties as the Arbitral Tribunal in his/their award may adjudge, in
the absence of a provision in the TOR signed by the parties relative to the sharing of these
expenses; provided, however, both parties consented to the hiring of an expert.
SECTION 16.1. Time of award - The award shall be rendered promptly by the Arbitral Tribunal
within thirty (30) days from the time the case is submitted for resolution but not more than six (6)
months from the date of signing of the TOR, or in cases where a TOR is absent, not more than six
(6) months from the date of the last preliminary conference called for the purpose of finalizing
and/or signing of the TOR. There shall be no extensions of time unless approved by the CIAC.
SECTION 16.2 Form of award 23- The Final award shall be in writing and signed by the Arbitral
Tribunal or a majority of its members. A dissent from the decision of the majority or a portion
thereof shall be in writing specifying the portion/s dissented from with a statement of the reason/s
thereof and signed by the dissenting member.
SECTION 16.3 Contents of the final award - Generally, the Final Award shall contain the issues
involved, a brief statement and discussion of the facts, and the authority relied upon for the
resolution or disposition of the issues.
SECTION 16.4 Award upon settlement - If the parties settle their dispute(s) during the course of
the arbitration, the Arbitral Tribunal, upon their request, may set forth the agreed settlement as an
Arbitral Award.

16.4.1 Settlement as award 24 - A compromise agreement settled by mediation in the course
of arbitration or by direct negotiation between the parties shall be treated as an arbitral award if
so moved by the parties and subject to the approval of the Arbitral Tribunal, after a summary
hearing, that the same is not contrary to law, morals, good customs, public order, or public
SECTION 16.5 Decision as to costs of arbitration - In the case of non-monetary claims or where
the parties agreed that the sharing of fees shall be determined by the Arbitral Tribunal, the Final
Award shall, in addition to dealing with the merits of the case, fix the costs of the arbitration, and/or
decide which of the parties shall bear the cost(s) or in what proportion the cost(s) shall be borne by
each of them.
SECTION 16.6 Termination of jurisdiction 25 – Except for execution or post-award proceedings,
the jurisdiction of the Arbitral Tribunal over the dispute is terminated upon the finality of the Final
Award or Decision. Where an appeal is taken from a decision or Final Award, and the appellate
court directs a re-hearing or a hearing on the merits on any issue arising in the case, jurisdiction
terminates only upon a final disposition of the case by the appellate court and/or a final
determination of all incidental matters thereto.
SECTION 16.7 Notification of award to parties - Once a Final Award has been made, provided
that the costs of the arbitration have been fully paid to the Secretariat by the parties or by one of
them, the Secretariat shall provide the parties through their respective counsel a copy of the Final
Award signed by the Arbitral Tribunal.
16.7.1 Additional copies certified true by the Executive Director of the Secretariat shall be
made available, on request and at any time, to the parties or their counsel but to no one else.
SECTION 16.8 Filing of award - The original of an arbitral award shall be filed with the Secretariat.
SECTION 17.1 Motion for correction of final award - Any of the parties may file a motion for
correction of the Final award within fifteen (15) days from receipt thereof upon any of the following
a. an evident miscalculation of figures, a typographical or arithmetical error;
b. an evident mistake in the description of any party, person, date, amount, thing or
property referred to in the award.
c. where the arbitrators have awarded upon a matter not submitted to them, not
affecting the merits of the decision upon the matter submitted;
d. where the arbitrators have failed or omitted to resolve certain issue/s formulated
by the parties in the Terms of Reference (TOR) and submitted to them for
resolution;26 and
e. where the award is imperfect in a matter of form not affecting the merits of the controversy.
The motion shall be acted upon by the Arbitral Tribunal or the surviving/remaining members.

17.1.1 The filing of the motion for correction shall interrupt the running of the period for
17.1.2 A motion for correction upon grounds other than those mentioned in this section shall
not interrupt the running of the period for appeal.
SECTION 17.2 Motion for reconsideration or new trial.- A motion for reconsideration or new trial
shall be considered a prohibited pleading.
SECTION 18.1 Execution of Award. - A final arbitral award shall become executory upon the
lapse of fifteen (15) days from receipt thereof by the parties.
SECTION 18.2 Petition for review.- A petition for review from a final award may be taken by
any of the parties within fifteen (15) days from receipt thereof in accordance with the provisions of
Rule 43 of the Rules of Court
SECTION 18.3 Entry of judgment. - If a petition for review is filed from a final award and a
temporary restraining order (TRO) is issued by the appellate court, such award shall become
executory only upon the issuance of the entry of judgment of the appellate court, or upon the
lapse/lifting of the TRO or lifting of the preliminary injunction.
SECTION 18.4 Effect of petition for review. - The petition for review shall not stay the execution
of the final award sought to be reviewed unless the Court of Appeals directs otherwise upon such
terms as it deems just.
SECTION 18.5 Execution/enforcement of awards. - As soon as a decision, order or final award
has become executory, the Arbitral Tribunal (or the surviving remaining member/s), shall, motu
proprio or on motion of the prevailing party issue a writ of execution requiring any sheriff or proper
officer to execute said decision, order or final award. If there are no remaining/surviving appointed
arbitrator/s, the Commission shall issue the writ prayed for. 28
Notwithstanding the Commission’s disagreement with the substance or merit of the
award/decision, if execution is ripe or proper under the CIAC Rules, it shall release the writ of
execution issued by the arbitrator/s. Hence, once an award/decision becomes executory, the
release of the writ of execution by the Commission is purely ministerial, regardless of whether or
not the arbitrator/s considered the comments of the Commission, or any of its members, on points
of substance in the award during scrutiny. 29
18.5.1 The writ of execution shall direct the sheriff or other officer to conduct the sale of
property on execution in accordance with Section 15 of Rule 39 of the Rules of Court. In the
case of sale of real property or personal property not capable of manual delivery, the auction
sale shall be held at the office of the sheriff serving the writ. Upon proper application by the
sheriff, with notice to the parties, CIAC may authorize the sale to be held in the place where the
property is located.

SECTION 18.6 Stay of execution pending review. - Execution issued under the preceeding
Section may be stayed upon approval by the Arbitral Tribunal (or the surviving/remaining
member/s), with the concurrence of CIAC, of a bond posted by the petitioner in an amount equal to
the award, conditioned upon the performance of the judgment of the appellate court in case it
upholds the award in whole or in part. Such bond shall be posted within such period of time, which
shall in no case be less than fifteen (15) days, as may be granted by the Arbitral Tribunal during
the hearing on the motion for execution and the opposition thereto. The Surety Company posting
the bond must be included in the latest list of surety companies accredited by the Supreme Court
and must comply with the requirements set by the CIAC for bond approval, concurrence, and/or
acceptance, such as, but not limited to, the prescribed ‘Surety Undertaking’ form. If there are no
remaining/surviving appointed arbitrators, the Commission may approve the required bond. 30
The concurrence of the Commission to the approval by the arbitrator/s of the bond to stay
execution is only for the purpose of ensuring compliance with the requirements set by the CIAC for
bond approval.31
SECTION 18.7 Effect of reversal of award. 32 - Where an award is partially or totally reversed on
appeal, the Arbitral Tribunal (or the surviving/remaining members, or the Commission if there are
no remaining/surviving appointed arbitrators) may, on proper motion, issue such order of restitution
or reparation of damages as equity and justice may warrant under the circumstances.
SECTION 18.8 Executory Powers 33 – The Arbitral Tribunal (or the surviving/remaining
member/s, or the Commission, if there are no remaining/surviving appointed arbitrators) shall have
the authority and power to decide matters and issue appropriate orders which are necessary and
related to the execution of the Award, including but not limited to the determination of sufficiency of
the bond, approval of the surety or bonding company, satisfaction of the award, quashal of the
execution, partial execution, issuance of alias writs, assessment of properties levied, appointment
of a quantity surveyor or assessor, examination of, and issuance of subpoena ad testificandum and
subpoena duces tecum to banks, debtors of the judgment debtor and any person holding
properties or assets of the judgment debtor.
SECTION 19.1 Motion for relief not covered by the Rules 35 - Every motion or other paper filed
in connection with the execution of an award not expressly authorized by the Rules shall be
charged a filing fee of Php 3000.00 or as may be prescribed by CIAC.
The motion shall be acted upon by the Arbitral Tribunal (or the surviving/remaining members, or
the Commission if there are no remaining/surviving appointed arbitrators).

SECTION 20.1 Small claims - Cases where the claim does not exceed P1 million shall be
categorized as a small claim thereby entitled to special procedures of disposition and reduced
20.1.1 A small claims case shall be handled by a sole arbitrator whose fees shall be at a
fixed rate of 3% of the claim but not less than P10, 000.00 or as may be prescribed by CIAC.
The expenses of the sole arbitrator and CIAC staff consisting of actual expenses for travel,
accommodations, and administrative costs for at most two (2) days incurred for hearing if held
outside of Metro Manila shall be borne by CIAC.
20.1.2 All prescribed periods under normal procedure shall whenever practicable, be
abbreviated to fifty percent (50%) of that required.
SECTION 21.1 Recording of proceedings - Proceedings before an Arbitral Tribunal may be
recorded by means of any audio and /or audio-visual recording equipment such as, but not limited
to, tape recorders and video cameras, or if a stenographer is available, either through stenographic
notes or minutes taken of the proceedings. All recordings on tapes, films, cassettes, disks, or
diskettes shall be done by CIAC and shall remain in its custody for safekeeping and eventual
disposal after the resolution of the case. Copies of such recordings including transcripts and
minutes of the proceedings shall be made available to the parties upon request for a nominal fee.
The arbitral Tribunal may opt to dispense with the use of recording devices or stenographic
services and take down notes of the proceedings. Such notes taken shall be filed with CIAC and
shall be part of the records of the case. Copies of the notes filed shall be made available to the
parties, upon request, at reproduction cost.
SECTION 21.2 Control over proceedings 37 - The Arbitral Tribunal shall exercise complete
control over all proceedings to insure a speedy, adequate and justifiable disposition of the disputes
and cases submitted to them for resolution.
21.2.1 In all arbitration proceedings before or after an award has been rendered but prior to
the termination of the jurisdiction of the arbitrator/s over a case pursuant to Section 16.6 hereof,
the arbitrator/s shall have the power to issue subpoena and/or subpoena duces tecum requiring
any person to attend the hearing as a witness or to produce relevant documents.
SECTION 21.3 Extent of power of arbitrator - The Arbitral Tribunal shall decide only such issues
and related matters as are submitted to them for adjudication. They have no power to add, to
subtract from, modify, or amend any of the terms of the contract or any supplementary agreement
thereto, or any rule, regulation or policy promulgated by the CIAC.
SECTION 21.4 Interpretation and application of Rules - The Arbitral Tribunal shall interpret and
apply these Rules in so far as they relate to his/its powers and duties. Where there is a difference
of opinion among the Arbitrators in an arbitral tribunal concerning the meaning or application of
these Rules, the same shall be decided by a majority vote.

SECTION 21.5 Attendance of hearings - Persons having direct interest in the arbitration are
entitled to attend the hearings. It shall be discretionary upon the Arbitral Tribunal to determine the
propriety of the attendance of any other person. The Arbitral Tribunal shall have the power to
require the exclusion of any witness.
SECTION 21.6 Waiver of Rules - Any party who proceeds with the arbitration after knowledge
that any provision or requirement of these Rules has not been complied with and fails to state his
objection thereto in writing, shall be deemed to have waived his right to object.
SECTION 21.7 Freedom to settle 38 - The parties shall be free to settle the dispute(s) anytime
even if the same is under arbitration. In such case, the actual expenses incurred for arbitration
shall be charged against the deposit. If the deposit is insufficient, the parties shall equally shoulder
the balance.
21.7.1 The parties may either jointly withdraw or move that their compromise agreement be
the basis for rendering an award by the Arbitral Tribunal, if the latter have already been
appointed. Where the arbitrators have been appointed and proceedings have commenced, the
arbitration fees to be charged the parties shall be in accordance with the stage of
21.7.2 The Arbitral Tribunal shall act upon the motion after conducting a summary hearing. 40
SECTION 22.1 Expenses and deposit - Arbitration expenses shall include the filing and
administrative fees, arbitrator's fees, ADF Charges and fee and expenses of the expert, and others
which may be imposed by CIAC.
22.1.1 The filing and administrative fees, ADF charges, and arbitrator's fees for monetary,
non-monetary and small claims and the schedules of payment therefor shall be in accordance
with the CIAC-approved Table of Administrative Charges and Arbitrator's Fees.
22.1.2 Expert’s fees shall be determined and paid for in accordance with Section 15.1.1 of
the Rules.
SECTION 22.2 The CIAC may fix the fees of the Arbitral Tribunal at a figure higher or lower than
that which would result from the application of the Table of Fees if in the exceptional circumstances
of the case, the same appears to be necessary.
SECTION 23.1 The old rules and all policies issued in connection therewith, as well as policies
inconsistent herewith are hereby repealed.

SECTION 24.1 Separability – If for any reason or reasons, any portion or provision of these
Rules shall be held unconstitutional or invalid, all other parts or provisions not affected shall
thereby continue to remain in full force and effect.
SECTION 25.1 These Rules shall take effect fifteen (15) days after its publication at least once
in a newspaper of general circulation and the filing of three (3) certified copies thereof with the
Office of the National Administrative Register, U.P. Law Center.
November 19, 2005, Makati City, Philippines.


Post a Comment

Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Affiliate Network Reviews