However this is not merely a matter of applying and deriving conclusions from

However this is not merely a matter of applying and

This preview shows page 83 - 85 out of 105 pages.

However, this is not merely a matter of applying and deriving conclusions from cut and dried contractual provisions. More accurately, what is on issue is whether or not the Court of Appeals correctly held that the CIAC Arbitral Tribunal acted beyond its jurisdiction in
Image of page 83
holding that the price of P1,540,000,000.00 did not bind the parties as an immutable lump -sum. Subsumed in this issue is the matter of whether or not the Court of Appeals correctly ruled that CECON was rightfully entitled to time extensions and that intervening circumstances had made ACI liable for cost adjustments, increases borne by change orders, additional overhead costs, extended contractor's all risk insurance coverage, increased attendance fees vis-a-vis subcontractors, and arbitration costs which it awarded to CECON. This Court limits itself to the legal question of the CIAC Arbitral Tribunal's competence. Unless any of the exceptional circumstances that warrant revisiting the factual matter of the accuracy of the particulars of every item awarded to the parties is availing, this Court shall not embark on its own audit of the amounts owing to each. I This Court begins by demarcating the jurisdictional and technical competence of the CIAC and of its arbitral tribunals. I.A The Construction Industry Arbitration Commission was a creation of Executive Order No. 1008, otherwise known as the Construction Industry Arbitration Law.[105] At inception, it was under the administrative supervision of the Philippine Domestic Construction Board[106] which, in turn, was an implementing agency of the Construction Industry Authority of the Philippines (CIAP).[107] The CIAP is presently attached to the Department of Trade and Industry.[108] The CIAC was created with the specific purpose of an "early and expeditious settlement of disputes"[109] cognizant of the exceptional role of construction to "the furtherance of national development goals."[110] Section 4 of the Construction Industry Arbitration Law spells out the jurisdiction of the CIAC: Section 4. Jurisdiction. - The CIAC shall have original and exclusive jurisdiction over disputes arising from, or connected with, contracts entered into by parties involved in construction in the Philippines, whether the dispute arises before or after the completion of the contract, or after the abandonment or breach thereof. These disputes may involve government or private contracts. For the Board to acquire jurisdiction, the parties to a dispute must agree to submit the same to voluntary arbitration. 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 time and delays; maintenance and defects; payment, default of employer or contractor and changes in contract cost.
Image of page 84
Image of page 85

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture