R.A. No.

9285: Alternative
Dispute Resolution Act of
2004
Group 2: Chapter 6-8
Alternative Dispute Resolution Forms

Mediation
International Arbitration
Domestic Arbitration
Construction Industry Arbitration Commission Arbitration
Other forms of Alternative Dispute Resolution
Early Neutral Evaluation
Mini-Trial
Mediation-Arbitration
Governing Law
Definition of Construction
Parties to the Construction Arbitration
Jurisdiction of CIAC
Role of RTC
Accreditation of arbitrators
Advantages of Construction Arbitration
Process of Construction Arbitration

Chapter 6: Arbitration of
Construction Disputes
Chapter 6: Arbitration of Construction
Disputes
Governing Law: E.O. No. 1008 otherwise known as
the Construction Industry Arbitration Law (Section 34)

Construction- all on-site work on buildings or

alternative structures from land clearance through
completion, including excavation, erection and the
assembly and installation of components and
equipment (C.M. Harris, Dictionary of Architecture and Construction as cited by Parlade,
Alternative Dispute Resolution Act of 2004 Annotated)
Chapter 6: Arbitration of Construction
Disputes
Parties
Parties to the construction contract (i.e. construction
contractor, government)
Mediator/Arbitrator

Note: The arbitrator -----mediator (v.v.) + written

agreement
mediator------------- arbitral award (Section 36)
Chapter 6: Arbitration of Construction
Disputes
Jurisdiction of CIAC
Exclusive and original jurisdiction over disputes arising from, or
connected with contracts entered into by parties involved in
construction in the Philippines, whether the dispute arise before or
after the contracts are completed or after they are breached. (Sec.
4, E.O. 1008, Sec. 35, R.A. 9285)
Includes commercial cases under commercial arbitration (Sec. 35
in rel. to Sec. 21)
Exception: 1. disputes arising from ER-EE relationship --- Labor Code
2. when parties agree in writing to settle the dispute with the RTC
 Chapter 6: Arbitration of Construction
Disputes
What are the specific cases under which arbitration may be
conducted? (Sec. 4, E.O. 1008)
Violations of specifications for materials and
workmanship;
Violations of terms of agreements
Interpretation and/or application of contractual provisions;
Commencement time and delays;
Maintenance and defects;
Payment defaults of employer or contractor; and
Changes in contract costs.
Chapter 6: Arbitration of Construction
Disputes
Condition for exercise of jurisdiction (Sec. 2.3. E.O.
1008 as amended)
1. Arbitration clause in the contract
2. Subsequent submission to voluntary arbitration
(evidence: exchange of communication between the
parties e.g. letters, e-mails)
1 or 2 must be alleged in the Complaint;
If Complaint is filed without 1 or 2 respondent
must state agreement to undergo AC in his/its
Answer
Chapter 6: Arbitration of Construction
Disputes
Mandate to RTC: dismiss case upon becoming aware
that it involves a construction dispute (Section 39)
Exception: parties agreed via a written statement,
with the conformity of their counsels that the RTC shall
resolve the dispute

RTC may grant intermin measure of protection (Sec.

38 in rel. to Sec. 28 and Sec. 29)
 Chapter 6: Arbitration of Construction
Disputes
Who can be accredited as arbitrators? (Rule 8 E.O. 1008 as
amended)
CIAC accredited arbitrator- People of distinction who are technically
qualified and in whom the business sector and the government can
have confidence (e.g. architects, engineers, lawyers)
Foreign arbitrators as long as:
One of the parties is an international party
Person appointed agreed to abide by the rules and policies of CIAC
Nominated by the international party, or is a common choice by the
CIAC accredited arbitrators chosen by the international party
Of a different nationality than the international party
Chapter 6: Arbitration of Construction
Disputes
Advantages of Construction Arbitration
Arbitrators have technical expertise
Parties choose the arbitrators
Parties choose the terms of reference
Proceedings are simple, faster and less expensive
Proceedings are confidential
Arbitrators decision is binding
A single forum may be convened for all parties
Chapter 6: Arbitration of Construction
Disputes
Choice of counsel is not limited to lawyers
Work on a contract may continue as arbitration
proceeds
Arbitration preserves friendly relations
Domestic Arbitral Award
Grounds for vacating award
CIAC Arbitral Award
Foreign Arbitral Award
Grounds for the rejection of FAA
Appeal, jurisdiction and venue of FAA
Notice of proceedings in FAA
Foreign Arbitral Award vs Foreign Judgement

Chapter 7: Judicial Review of

Arbitral Award
Chapter 7: Judicial Review for Arbitral
Award
Domestic Award
Domestic arbitral award- governed by Sec. 23 of RA 876
CIAC arbitral award- governed by E.O. 1008
Vacating of an award-grounds laid down in Sec. 24 of RA 876
Foreign Arbitral Award
Parties to the New York Convention- governed by the New York
Convention
Non-convention awards- A.M. No. 07-11-08-SC, the Special Rules
of Court on Alternative Dispute Resolution (Special ADR Rules)
Chapter 7: Judicial Review for Arbitral
Award: Domestic Arbitral Award
Domestic Arbitral award necessity for confirmation and
enforcement by the RTC
Section 23. Confirmation of award. - At any time within one
month after the award is made, any party to the controversy
which was arbitrated may apply to the court having jurisdiction,
as provided in section twenty-eight, for an order confirming the
award; and thereupon the court must grant such order unless
the award is vacated, modified or corrected, as prescribed
herein. Notice of such motion must be served upon the adverse
party or his attorney as prescribed by law for the service of such
notice upon an attorney in action in the same court.
Chapter 7: Judicial Review for Arbitral
Award: Domestic Arbitral Award
Grounds for vacating award:
1. Award was procured by corruption, fraud, or other undue means
2. Evident partiality or corruption in the arbitrators
3. Guilty of misconduct
Refusing to postpone hearing when there is sufficient cause
shown
Refusing to hear evidence pertinent and material to the
controversy
Willful refraining from disclosing disqualifications/ misbehavior by
which the rights of any party have been materially prejudiced
Chapter 7: Judicial Review for Arbitral
Award: Domestic Arbitral Award
4. Exceeding of power or imperfect execution of power

*Vacated award
- court, in its discretion may direct a new hearing with
the same arbitrators or with a new set of arbitrators
-costs and disbursements may be awarded to the
prevailing party
Chapter 7: Judicial Review for Arbitral
Award: Domestic Arbitral Award
CIAC arbitral award- no need for confirmation by the RTC
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 18.5 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.
Chapter 7: Judicial Review for Arbitral
Award: Foreign Arbitral Award
Convention award(Section 42)
Recognition and enforcement of award RTC
The country in which the FAA was made a party
to the NYC
File with the RTC original/ authenticated copy of
the award + duly certified translation (if not in
official language)
*Non-convention award- may be recognized and
enforced as convention award on grounds of comity
and reciprocity
Chapter 7: Judicial Review for Arbitral
Award: Foreign Arbitral Award
Rejection of FAA ( Article V of NYC in rel. to Sec. 45 of
RA 9285)
Grounds:
1. incapacity
2. No proper notice to respondent
3. Award does not fall within the terms of the
submission to arbitration
4. Composition of arbitral authority/procedure not in
accordance with agreement or law of the country
Chapter 7: Judicial Review for Arbitral
Award: Foreign Arbitral Award
where the arbitration took place
5. Award has not yet become binding, or has been set
aside or suspended
6. Subject matter of difference is not capable of
settlement by arbitration under Philippine law
7. Recognition or enforcement pf the award would be
contrary to public policy
Chapter 7: Judicial Review for Arbitral
Award: Foreign Arbitral Award
Appeal- Court of Appeals
Venue and Jurisdiction- RTC where:
1. Arbitration proceedings are conducted
2. Asset is located
3. Residence or place of business of any of the parties
4. National Judicial Capital Region (Manila) at option of
applicant)
Notice of Proceedings-sent 15 days before the date
of hearing to the address of record of parties or to
the last known address
 Chapter 7: Judicial Review for Arbitral
Award: Foreign Arbitral Award
Judgement of a foreign
country
Foreign Arbitral Award Rendered by the court of a
Rendered by an arbitrator or foreign country
panel of arbitrators in a foreign merely constitutes prima
country facie evidence of the justness
Can be recognized and enforced of the claim of a party and, as
in the Philippines such, is subject to proof to
the RTC is required not to disturb the contrary.
the arbitrators or arbitral RTC has authority to
tribunals determination of facts determine if there is mistake
and/or interpretation of law. of fact or law (Sec. 48, Rule
(Rule 12.13, Rule 13.11 Special 39 of RoC)
Office for the Alternative Dispute Resolution
Appropriations
Implementing Rules and Regulations
Applicability of the KB Law
Repealing Clause
Separability Clause
Effectivity

Chapter 8: Miscellaneous
Provisions
 Attached agency of DOJ
Shall have a secretariat headed by an Executive
Director
Mandate/Objectives:
To promote, develop and expand the use of alternative
dispute resolution (ADR) in the private and public sectors;
and, to assist government to monitor, study and evaluate
the use by the public and the private sector of ADR, and
recommend to Congress needful statutory changes to
develop, strengthen and improve ADR practices in
accordance with world standards.
 Powers and Functions:
1. Formulate standards for
training of ADR practitioners
and service providers
2. Certify that the ADR
practitioners and service
providers have undergone
the professional training
provided by the Office
3. Coordinate the
development, implementation,
monitoring and evaluation of
government ADR programs
4. Charge fees for services
5. Perform such acts as may be
necessary to carry into effect
the provisions of this Act

Implementing Rules and
Regulations of R.A. 9285-
DOJ Circular No. 98, series
of 2009
R.A. No. 9285 did not
repeal, amend or modify
the jurisdiction of the
Katarungan Pambarangay
under the Local
Government Code of 1991
Composition of Committee for the
formulation of the IRR:
DOJ
DTI
DILG
President of the IBP
Representative from the arbitration
profession
Representative from the mediation
profession
Representative from the ADR organizations
Sources:

Parlade, C. Alternative Dispute

Resolution Act of 2004 Annotated.
Central Book Supply Inc. 2004 ed.
Republic Act No. 9285: Alternative
Dispute Resolution Act of 2004
CIAC website: http://ciap.dti.gov.ph
Republic Act No. 876: The Arbitration
OADR website: https://
Law (1953) www.doj.gov.ph/office-for-alternative-dispute-resolution

Executive Order No. 1008: Creating Construction Arbitration Primer

an Arbitration Machinery for the

Philippine Construction Industry
New York Convention on the
Recognition and Enforcement of
Foreign Arbitral Awards (1958)