BMAR - Lecture 3 PDF

LEGAL AND REGULATORY ISSUES IN THE CLAIM your Mayor’s Business PERMIT BUSINESS OF ARCHITECTURE and License HOW TO OPERATE DESIGN SERVICES AND Any architects/ e...

LEGAL AND REGULATORY ISSUES IN THE CLAIM your Mayor’s Business PERMIT BUSINESS OF ARCHITECTURE and License HOW TO OPERATE DESIGN SERVICES AND Any architects/ engineers working in the CONSTRUCTION BUSINESS IN ACCORDANCE WITH construction industry need a Philippine THE LAW? Contractors Accreditation Board License (PCAB). 3 GENERAL FORMS OF BUSINESS ORGANIZATION ✓ SOLE PROPRIETORSHIP PCAB ✓ PARTNERSHIP ✓ CORPORATION Is a license mandated by the Philippine law under RA 4566 or Contractor’s License Law 01 State licensed business groups claim that under SOLE PROPRIETORSHIP RA 4566, Architects and Engineers “may not involve themselves in construction ADVANTAGES DISADVANTAGES contracting”. Easy to register Risk and liability shouldered Requires minimum amount of alone That the Architect “must secure a contractor’s capital Lower cost in registering The loss is solely suffered by license” from DTI - CIAP - PCAB renewable Government permits and the owner annually. Licenses Enjoy profit of your own Manage and operate the business on your own Run your constructing business RA 4566: CONTRACTORS LICENSE LAW on your own Minimal regulations and As amended by P.D. No. 1746 monitoring requirements NO CONTRACTOR shall engage in the business Register a business name at DTI of contracting “if without a PCAB license to https.//www.dti.gov.ph/ conduct business”. DTI Office Purpose is to ensure for the “safety of the Cost of Business Registration public” Within a barangay: Php 200 Within a city/municipality: Php 500 “only qualified and reliable contractors” are For regional business scope: Php 1,000 allowed to undertake construction in the country. For national business scope: Php 2,000 BUILDER Register the business with the Bureau of Internal Revenue (BIR) A person or company that builds/ repair things Application for registration (for Sole CONTRACTOR Proprietorship only) Claim BIR Form 2303 (Certificate of Is synonymous with the term builder, a person or Registration) firm “duly registered and license by PCAB” BIR Form 1901 BIR Form 1921 (Authority of Print ANALYSIS AND RECOMMENDATIONS Receipt) BIR Form 0605 (Payment Form to pay R.A. 4566: CONTRACTOR’s LICENSE LAW taxes and fees) ART. 2 Section 12: Architects and Engineers - Municipal Office/ City Hall Personal Property Submit the requirements needed and Pay the Mayor’s permit fee  This act shall not apply to any construction, Application for registration (for alteration, improvement of repair of personal Partnership/ Corporation) property. BIR Form 1903 BIR Form 2303 This act shall not apply to a Registered Civil Claim BIR Form 2303 (Certificate of Engineer or a Licensed Architect “acting solely Registration) in his professional capacity” TRAININGS 03 CORPORATION ✓ Basic Occupational Safety and Health (BOSH) ✓ Construction Occupational Safety and Health Sole Partnership Corporation (COSH) Proprietorship ✓ Authorized Managing Officer (AMO) PCAB Simplest type of In between of sole - Minimum of 5 business structure; proprietorship; at people Seminar at least two people least two people to - Allowed 2 or more to register register people 5 METHODS OF COMPENSATION - One-person corporation ✓ PERCENTAGE BASED ON PROJECT Paper work - Easy Paper work - Paper work - Hard Medium CONSTRUCTION COST Highest risk in General and Limited Lowest risk in ✓ MULTIPLE OF DIRECT PERSONNEL liability Liability liability EXPENSES DTI registration SEC registration SEC registration ✓ PROFESSIONAL FEE PLUS EXPENSES Same as the owner Own juridical Own juridical personality personality ✓ PER DIEM, HONORARIUM PLUS None Architect ownership Architect ownership REIMBURSABLE EXPENSES up to 75% up to 75% ✓ LUMP SUM OR FIXED FEE LIABILITY 02 PARTNERSHIP Article 17 of the Civil Code of the Philippines ADVANTAGES DISADVANTAGES 15 Years Easy to form Quick Decision Making is not Efficient management possible DID YOU KNOW THAT NON-REMITTANCE OF Sharing Risks Potential Disputes among Partners BENEFITS IS A CRIMINAL CASE? DEPARTMENT OF LABOR AND EMPLOYMENT DIVIDE PROFIT (DOLE) ✓ Source - 10% FOUR-FOLD TEST OF EMPLOYMENT: ✓ Implementation - 50% ✓ Financing - 40% 1. The power to HIRE or Selection and engagement 2. Payment of Wages and Salary Securities Exchange Commission (SEC) - 3. Power to Dismiss Mayor’s Permit - BIR 4. Power of Control Municipal Office/ City Hall 5 TYPES OF EMPLOYMENT: RPSFP Submit the requirements needed and Pay the Mayor’s Permit Fee ✓ REGULAR ✓ PROJECT CLAIM your Mayor’s Business PERMIT ✓ SEASONAL and Licenses ✓ FIXED-TERM ✓ PROBATIONARY Register the business with the Bureau of Internal Revenue (BIR) REGULAR AND CASUAL EMPLOYMENT PROBATIONARY EMPLOYMENT The primary standard that determines regular Probationary employment exists when the employment is the reasonable connection employee, upon his engagement is made to between the particular activity performed by the undergo a trial period where the employee employee and the usual business or trade of the determines his fitness to qualify for regular employee; the emphasis is on the necessity or employment, caused on reasonable standards desirability of the employee’s activity. made known to him at the time of engagement. PROJECT EMPLOYMENT BENEFITS FOR WORKERS The employment has been fixed for a specific ✓ SOCIAL SECURITY SYSTEM (SSS) project or undertaking whose composition or ✓ PHILHEALTH termination has been determined at the time of ✓ PAG-IBIG the engagement of the employee. OTHER BENEFITS AND LETTERS NEED TO PROVIDE Since the employee’s services are coterminous with the project, the services of the project ✓ 13th Month Pay employees are legally and automatically ✓ Bonus terminated upon the end or completion of the project. FOR DOCUMENTATION SEASONAL EMPLOYMENT ✓ CONTRACT - Duration of the project must be indicated. Where the work or service to be performed is ✓ PAYROLL/ PAYSLIP - Must be signed by the seasonal in nature and the employment is for the employees upon receiving. duration of the season. ✓ MEMO / WARNING FOR: Refusing in benefits construction The nature of their relationship with the employer AWOL is such that during the off-season, they are Poor Performance temporarily laid off; but re-employed during the Breaking the rules summer season or when their services maybe Mis manners etc. needed. ✓ QUIT CLAIM FIXED - TERM Fixed-term employment is valid when: (a) the fixed period of employment was knowingly and voluntarily agreed upon by the employer and employee without any force, duress, or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating h consent; or (b) it satisfactorily appears that the employer and the employee dealt with each other on more or less equal terms with no moral dominance exercised by the former or the latter. The nature of their relationship with the employer is such that during the off-season, they are temporarily laid off; but reemployed during the summer season or when their services may be needed.