According to a recent World Bank report, the Philippine economy is projected to continue treading an expansionary path and to grow at an annual rate of 6.7% through 2019. Such economic growth, particularly in respect of investments, is largely due to the government's ambitious "Build Build Build" infrastructure program. This program is centered on numerous priority and flagship projects, which include construction of airports, railways, bridges and seaports.
The expected surge in construction projects in the next few years, both in the public and private sectors, will result in a corresponding increase in investor interest for such projects. As the number of construction projects grows, the risk of disputes arising from these projects likewise increases.
In anticipation of these potential disputes, it is useful for all stakeholders in a construction project (e.g., the owner/employer, the engineer/architect, the contractor/subcontractor and the project managers) to be aware of and be familiar with the Philippine legal framework governing construction, as well as the common issues that arise in connection with construction projects and some of the best practices to manage, if not avoid altogether, such disputes. The Philippines has a unique legal framework for construction disputes, which should be taken into account when drafting contracts and for purposes of ensuring proper resolution of disputes arising therefrom.
In a launch event held last June, Quisumbing Torres Industrials, Manufacturing & Transportation Industry Group, headed by Dispute Resolution (DR) Practice Group Head Donemark Calimon, introduced the firm’s primer on Construction Contract Management. Co-authors are DR partner Michael Macapagal and DR associates Dranyl Jared Amoroso and Rafael Roman Cruz. Nandakumar Ponniya, partner in Baker & McKenzie.Wong & Leow delivered the Keynote Message.
The primer offers a high-level presentation of the various features of Philippine construction law and of common issues encountered in construction projects, intended to assist parties in managing and avoiding disputes in construction projects in the Philippines.