Hiring a waterjet contractor in the Philippines: what to verify
Start with the work scope. For construction work, check the applicable PCAB license and project safety approvals. For plant service contracts, confirm the relevant labor and safety requirements. For economic-zone customers, establish the tax treatment from current documents. This checklist supports pre-award review; it does not establish eligibility from a service name or a company badge. Reviewed 6 September 2026.
The pre-award checklist
| Check | Why | Legal basis |
|---|---|---|
| PCAB license is currently valid — not just "has a number" | Check the validity dates and status on the current license and PCAB verification portal; do not infer validity from an old certificate | PCAB live license verification; RA 4566 |
| License classification covers the work | Compare the contracted work with the classifications on the license; confirm ambiguous scopes with PCAB | IRR Secs. 3.3(e), 5.4; BR 201 s.2017 |
| Applicable category, scope and project-size limits | Use current PCAB requirements and, for government work, the applicable registration and project-size range; do not price from an old classification table | Current PCAB license and government-project registration, where required |
| Project-specific CSHP approval for covered construction work | Confirm the approved program covers this project and follow the applicable DOLE approval route | DO 13-98 Sec. 5; AO 152 s.2011 |
| CSHP cost is a separate pay item in the bid | Required in covered project tenders and contracts; clarify any omission and applicable scope | DO 13-98 Sec. 17 |
| For PEZA sites: current certificate and transaction eligibility | Confirm the eligible buyer, registered activity and directly attributable service before applying zero-rating | CREATE MORE; PEZA MC 2025-052 and MO 2025-006 |
| Equipment owned/controlled, crews trained to OEM standards, insurance in force | Confirm equipment availability, competent personnel and insurance appropriate to the contracted scope | — |
Which rules apply to which kind of work?
Scope and contracting arrangements determine which requirements apply. Construction and demolition work needs assessment against PCAB licensing and DO 13-98. In-plant maintenance and cleaning still require applicable occupational safety controls; a cleaning label does not automatically exempt an activity from construction or labor rules. Check DO 174 applicability for the actual service arrangement, including the construction provisions of Department Circular 01-17. Ask the responsible project, safety and legal reviewers to resolve mixed or uncertain scopes before award.
What does this mean for comparing bids?
Compare bids against the same scope, acceptance criteria and applicable compliance requirements. Record which approvals are already available and which are project-specific deliverables. Include required safety costs, equipment availability and insurance in the comparison. Pair this checklist with the cost guide to identify the assumptions behind each quotation.
Is there a PCAB license category for industrial cleaning or waterjet work?
The cited PCAB classification table does not name industrial cleaning or waterjet as a classification. A method name alone does not establish the required license. For construction work such as hydro demolition, check the actual scope against the contractor’s current classifications and applicable limits; confirm uncertain scope with PCAB.
What is the CSHP and why should it appear in the quotation?
For covered construction projects, the Construction Safety and Health Program is required under DOLE Department Order 13-98. Verify project-specific approval through the applicable DOLE office. Section 17 of DO 13-98 requires the total cost of implementing the CSHP to be a separate pay item in construction bid tenders and contracts. Confirm how the applicable requirement is reflected in the project tender and contract; request clarification before comparing incomplete bids.
Can a contractor bill a PEZA locator at 0% VAT?
PEZA registration alone does not establish that a particular purchase qualifies. Obtain the buyer’s current certificate, identify the registered project or activity, and confirm that the service and transaction meet the applicable requirements. PEZA MC 2025-052 explains directly attributable purchases under CREATE MORE, and MO 2025-006 addresses certificate applications. State the proposed VAT treatment separately in the quotation and confirm it with the buyer’s tax team before invoicing; a VAT-exclusive price is not itself a zero-rated transaction.
Sources
- PCAB live license verification; historical Categorization-Classification Table, Board Resolution 201 s.2017 — construction.gov.ph (CIAP)
- IRR of RA 4566 (Contractors' License Law) — pcabgovph.com
- DOLE DO 13-98, full text — Supreme Court E-Library; CSHP decentralization: DOLE AO 152 s.2011
- DOLE Department Circular 01-17 (DO 174 applicability) — full text (PALSCON mirror)
- PEZA MC 2025-052: directly attributable purchases under CREATE MORE; MO 2025-006: certificate applications through PTOPS. Check current PEZA and BIR issuances for the transaction date.
Accrediting contractors for a shutdown or project?
Send the scope and your accreditation requirements. Dezu can identify the available company records and the project-specific submissions required for review.