PCAB License Renewal: What you need to know
Updated: Feb 21, 2020
The Philippine Contractors Accreditation Board (PCAB) imposes a license for contractors engaged in the construction industry in the Philippines called PCAB License. This license is mandated by the law in RA 4566 (Contractor's License Law). The law aims to ensure the safety of the public and the growth of the contracting sector. Hence, the law provides that contractors must first secure a PCAB license before engaging into the business of contracting.
The PCAB Office follows a fiscal year of July 1 to June 30.
The Contractor's Licenses (PCAB License) that they release are valid only until June 30 of the fiscal year you applied.
To be systematic, the PCAB Office has a schedule for Regular Contractor's License Renewal; depending on the last digit of the contractor's PCAB license number.
(PCAB License No. is located on the License Particulars part of the license, beside the date of first issue)
For example, if your license number is 12345, your schedule will be based on 5 (last digit).
The schedule is as follows:
For new licenses approved from January 2020 - March 2020, you have to renew your license by June 1-15, 2020.
For new licenses approved from April 2020 - June 2020, you have to renew your license by June 16-30.
This schedule was implemented so that the number of people that will renew their license can be controlled and the PCAB Office won't be filled to the brim with people.
PCAB has been accepting license renewals since Jan 2, 2020 for CFY 2020-2021.
Contractors may file for renewal of their regular licenses before their scheduled date.
This is recommended so that you avoid the influx of people in the PCAB Office.
It is expected that there will be long lines and long waiting time by May - June.
Reminders:
1. Contractors filing their renewal application on or before 15 April 2020 may use the previoisly submitted Audited Financial Statement (AFS). If the renewal application is filed after 15 April 2020, the contractor shall submit the required Annual Income TAx Returns (ITR) and AFS duly filed with the BIR for the preceding taxable year.
2. Submission of the required ITR and AFS duly filed with the BIR for the preceding taxable year can be done on or before the release of the renewed license certficate.
3. Should the contractor fail to meet the qualification requirement based on the current AFS for its present category, the license shall be downgraded to the next lower sustainable category.