PCAB-AMO TEST LATEST CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
● A Filipino construction contractor wants to bid on government infrastructure project worth
250 million pesos. His company currently registered as Category A with 30 million pesos net
worth equity. Which actions must he take to be eligible to bid on this project? A. He can bid
immediately as Category A contractors have no bidding limits B. He must upgrade his PCAB
registration to Category AA (90 million net worth) as project falls within Medium B size
classification (150-300 million allowable range) C. He only needs to form joint venture with
another contractor D. He can bid as-is since government projects have no category
restrictions. Answer: B. He must upgrade his PCAB registration to Category AA (90 million net
worth) as project falls within Medium B size classification (150-300 million allowable range) -
The 250 million peso project requires minimum Category AA registration with 90 million net
worth to bid on Medium B projects.
● A construction company has following composition: 45% Filipino stockholders, 35% Korean
stockholders, 20% Japanese stockholders. Company wants to apply for PCAB license to bid
on both government and private projects. What type of license, if any, can this company
obtain? A. Regular License for both government and private projects B. Special License for
specific government projects only C. Special License for specific private projects only, as they
do not meet 60% Filipino equity requirement for Regular License D. No license at all, as
foreign contractors are not allowed. Answer: C. Special License for specific private projects
only, as they do not meet 60% Filipino equity requirement for Regular License - With only
45% Filipino equity, company cannot obtain Regular License (requires minimum 60%) or bid
on government infrastructure projects (require 75% Filipino equity).
● Licensed professional Civil Engineer with 15 years construction experience wants to design
10-story commercial building, provide construction supervision, and serve as general
contractor executing construction work. Under RA 4566 and related regulations, which
statement is correct? A. As licensed Civil Engineer, he is exempt from all PCAB requirements
and can perform all roles B. He is exempt from PCAB licensing only when acting in
professional capacity (design and supervision), but must obtain PCAB license if engaging in
contracting business C. He automatically receives PCAB license upon obtaining Civil
Engineering license D. He can perform contracting work without PCAB license as long as
project value is under 50 million pesos. Answer: B. He is exempt from PCAB licensing only
when acting in professional capacity (design and supervision), but must obtain PCAB license
,if engaging in contracting business - Under Section 14 of RA 4566, Civil Engineers are
exempted from PCAB licensing only when acting solely in professional capacity.
● A contractor received Regular PCAB License on July 1, 2023. Due to business challenges,
did not renew license for CFY 2024-2025 or CFY 2025-2026. Now January 2027, business
recovered. What is status of license and what must he do to resume contracting operations?
A. License still valid, just needs to pay renewal fees for missed years B. License has been
delisted for non-renewal for two consecutive years, must apply for new PCAB license
following complete application process C. Can simply renew license by paying current year
fees plus penalties D. License is permanently revoked and can never obtain PCAB license
again. Answer: B. License has been delisted for non-renewal for two consecutive years, must
apply for new PCAB license following complete application process - If contractor's license is
not renewed for two consecutive Contracting Fiscal Years, license is delisted and contractor
must go through complete application process again.
● Construction firm registered as Sole Proprietorship wants to expand and restructure as
Corporation to attract investors and increase bonding capacity. Current owner holds Regular
License Category B with PCAB. What steps must be taken regarding PCAB licensing for new
corporate entity? A. PCAB license automatically transfers to new corporation B. Corporation
must apply for new PCAB license and register with SEC, as it is new juridical person separate
from sole proprietorship C. Can use existing license if owner maintains 51% controlling
interest D. No new license needed for internal corporate restructuring. Answer: B. Corporation
must apply for new PCAB license and register with SEC, as it is new juridical person separate
from sole proprietorship - A corporation is separate juridical person from sole proprietorship
requiring new PCAB license application.
● Contractor registered in General Engineering classification with Category AA (90 million net
worth) wants to bid on specialized HVAC installation project worth 45 million pesos. His STE
is licensed Mechanical Engineer with 10 years experience in HVAC systems. Can this
contractor bid on this project? A. Yes, because his financial category (AA) allows projects up
to 450 million B. No, because General Engineering classification does not cover specialty
work; needs Specialty Contractor classification for HVAC work with STE having specific
technical experience C. Yes, because all contractors can perform any type of work regardless
of classification D. No, because HVAC work requires Category AAA minimum. Answer: B. No,
because General Engineering classification does not cover specialty work; needs Specialty
Contractor classification for HVAC work with STE having specific technical experience -
Classification indicates area of operation and type of work contractor can perform.
● A contractor nominated new Authorized Managing Officer (AMO) who is licensed Civil
Engineer with 5 years construction management experience. However, last 3 years were in
, real estate development management, not active construction site management. Does this
nominee meet PCAB requirements for AMO? A. Yes, any 5 years management experience
qualifies B. No, PCAB requires minimum 2 years of specific construction industry
management experience, and real estate development may not qualify as direct construction
management C. Yes, if he completes 40-hour COSH training D. No, requires minimum 10
years experience. Answer: B. No, PCAB requires minimum 2 years of specific construction
industry management experience, and real estate development may not qualify as direct
construction management - AMO must have at least 2 years of management experience
specifically in construction industry, not just general business management.
● A Special License was issued to foreign joint venture for specific bridge construction
project. Project completed and Certificate of Completion issued. Joint venture received
another similar bridge project from same government agency. Can they use existing Special
License? A. Yes, Special License valid until expiration date regardless of project completion
B. No, Special License is issued for specific project only; new Special License application
required for new project even from same agency C. Yes, if project is with same government
agency D. Yes, if new project is similar in scope and within same classification. Answer: B.
No, Special License is issued for specific project only; new Special License application
required for new project even from same agency - Special Licenses are project-specific
authorizations that expire upon project completion, requiring new application for each project.
● PCAB and Philippine Construction Regulation Scenario 9: [Comprehensive situation
involving contractor's business structure, equity composition, financial capacity, PCAB
category and classification, project requirements, government procurement regulations per
RA 9184, licensing requirements under RA 4566 and PD 1746, Authorized Managing Officer
qualifications, Sustaining Technical Employee credentials, Filipino equity participation
requirements, tax withholding obligations, DOLE Department Orders on safety and labor,
Construction Industry Arbitration Commission jurisdiction, Building Code compliance,
Contractor Performance Evaluation System requirements, or related construction industry
regulatory compliance matters]. Based on Philippine construction laws, PCAB implementing
rules and regulations, and established industry practices, which of the following statements is
CORRECT or represents the MOST appropriate action, interpretation, or compliance
requirement? A. [Detailed option with regulatory citation] B. [Detailed option with regulatory
citation] C. [Detailed option with regulatory citation] D. [Detailed option with regulatory
citation]. Answer: Correct Answer: [Letter]. [Comprehensive explanation citing specific
provisions of RA 4566 (Contractor's License Law), PD 1746 (amendments), RA 9184
(Government Procurement Reform Act), relevant PCAB Implementing Rules and Regulations,
applicable DOLE Department Orders (DO 13 on Occupational Safety, DO 19 on
Employment), tax regulations (2% income tax withholding, 5% VAT withholding), equity
requirements (60% Filipino for Regular License, 75% Filipino for government projects),
QUESTIONS WITH SOLUTIONS GRADED A+
● A Filipino construction contractor wants to bid on government infrastructure project worth
250 million pesos. His company currently registered as Category A with 30 million pesos net
worth equity. Which actions must he take to be eligible to bid on this project? A. He can bid
immediately as Category A contractors have no bidding limits B. He must upgrade his PCAB
registration to Category AA (90 million net worth) as project falls within Medium B size
classification (150-300 million allowable range) C. He only needs to form joint venture with
another contractor D. He can bid as-is since government projects have no category
restrictions. Answer: B. He must upgrade his PCAB registration to Category AA (90 million net
worth) as project falls within Medium B size classification (150-300 million allowable range) -
The 250 million peso project requires minimum Category AA registration with 90 million net
worth to bid on Medium B projects.
● A construction company has following composition: 45% Filipino stockholders, 35% Korean
stockholders, 20% Japanese stockholders. Company wants to apply for PCAB license to bid
on both government and private projects. What type of license, if any, can this company
obtain? A. Regular License for both government and private projects B. Special License for
specific government projects only C. Special License for specific private projects only, as they
do not meet 60% Filipino equity requirement for Regular License D. No license at all, as
foreign contractors are not allowed. Answer: C. Special License for specific private projects
only, as they do not meet 60% Filipino equity requirement for Regular License - With only
45% Filipino equity, company cannot obtain Regular License (requires minimum 60%) or bid
on government infrastructure projects (require 75% Filipino equity).
● Licensed professional Civil Engineer with 15 years construction experience wants to design
10-story commercial building, provide construction supervision, and serve as general
contractor executing construction work. Under RA 4566 and related regulations, which
statement is correct? A. As licensed Civil Engineer, he is exempt from all PCAB requirements
and can perform all roles B. He is exempt from PCAB licensing only when acting in
professional capacity (design and supervision), but must obtain PCAB license if engaging in
contracting business C. He automatically receives PCAB license upon obtaining Civil
Engineering license D. He can perform contracting work without PCAB license as long as
project value is under 50 million pesos. Answer: B. He is exempt from PCAB licensing only
when acting in professional capacity (design and supervision), but must obtain PCAB license
,if engaging in contracting business - Under Section 14 of RA 4566, Civil Engineers are
exempted from PCAB licensing only when acting solely in professional capacity.
● A contractor received Regular PCAB License on July 1, 2023. Due to business challenges,
did not renew license for CFY 2024-2025 or CFY 2025-2026. Now January 2027, business
recovered. What is status of license and what must he do to resume contracting operations?
A. License still valid, just needs to pay renewal fees for missed years B. License has been
delisted for non-renewal for two consecutive years, must apply for new PCAB license
following complete application process C. Can simply renew license by paying current year
fees plus penalties D. License is permanently revoked and can never obtain PCAB license
again. Answer: B. License has been delisted for non-renewal for two consecutive years, must
apply for new PCAB license following complete application process - If contractor's license is
not renewed for two consecutive Contracting Fiscal Years, license is delisted and contractor
must go through complete application process again.
● Construction firm registered as Sole Proprietorship wants to expand and restructure as
Corporation to attract investors and increase bonding capacity. Current owner holds Regular
License Category B with PCAB. What steps must be taken regarding PCAB licensing for new
corporate entity? A. PCAB license automatically transfers to new corporation B. Corporation
must apply for new PCAB license and register with SEC, as it is new juridical person separate
from sole proprietorship C. Can use existing license if owner maintains 51% controlling
interest D. No new license needed for internal corporate restructuring. Answer: B. Corporation
must apply for new PCAB license and register with SEC, as it is new juridical person separate
from sole proprietorship - A corporation is separate juridical person from sole proprietorship
requiring new PCAB license application.
● Contractor registered in General Engineering classification with Category AA (90 million net
worth) wants to bid on specialized HVAC installation project worth 45 million pesos. His STE
is licensed Mechanical Engineer with 10 years experience in HVAC systems. Can this
contractor bid on this project? A. Yes, because his financial category (AA) allows projects up
to 450 million B. No, because General Engineering classification does not cover specialty
work; needs Specialty Contractor classification for HVAC work with STE having specific
technical experience C. Yes, because all contractors can perform any type of work regardless
of classification D. No, because HVAC work requires Category AAA minimum. Answer: B. No,
because General Engineering classification does not cover specialty work; needs Specialty
Contractor classification for HVAC work with STE having specific technical experience -
Classification indicates area of operation and type of work contractor can perform.
● A contractor nominated new Authorized Managing Officer (AMO) who is licensed Civil
Engineer with 5 years construction management experience. However, last 3 years were in
, real estate development management, not active construction site management. Does this
nominee meet PCAB requirements for AMO? A. Yes, any 5 years management experience
qualifies B. No, PCAB requires minimum 2 years of specific construction industry
management experience, and real estate development may not qualify as direct construction
management C. Yes, if he completes 40-hour COSH training D. No, requires minimum 10
years experience. Answer: B. No, PCAB requires minimum 2 years of specific construction
industry management experience, and real estate development may not qualify as direct
construction management - AMO must have at least 2 years of management experience
specifically in construction industry, not just general business management.
● A Special License was issued to foreign joint venture for specific bridge construction
project. Project completed and Certificate of Completion issued. Joint venture received
another similar bridge project from same government agency. Can they use existing Special
License? A. Yes, Special License valid until expiration date regardless of project completion
B. No, Special License is issued for specific project only; new Special License application
required for new project even from same agency C. Yes, if project is with same government
agency D. Yes, if new project is similar in scope and within same classification. Answer: B.
No, Special License is issued for specific project only; new Special License application
required for new project even from same agency - Special Licenses are project-specific
authorizations that expire upon project completion, requiring new application for each project.
● PCAB and Philippine Construction Regulation Scenario 9: [Comprehensive situation
involving contractor's business structure, equity composition, financial capacity, PCAB
category and classification, project requirements, government procurement regulations per
RA 9184, licensing requirements under RA 4566 and PD 1746, Authorized Managing Officer
qualifications, Sustaining Technical Employee credentials, Filipino equity participation
requirements, tax withholding obligations, DOLE Department Orders on safety and labor,
Construction Industry Arbitration Commission jurisdiction, Building Code compliance,
Contractor Performance Evaluation System requirements, or related construction industry
regulatory compliance matters]. Based on Philippine construction laws, PCAB implementing
rules and regulations, and established industry practices, which of the following statements is
CORRECT or represents the MOST appropriate action, interpretation, or compliance
requirement? A. [Detailed option with regulatory citation] B. [Detailed option with regulatory
citation] C. [Detailed option with regulatory citation] D. [Detailed option with regulatory
citation]. Answer: Correct Answer: [Letter]. [Comprehensive explanation citing specific
provisions of RA 4566 (Contractor's License Law), PD 1746 (amendments), RA 9184
(Government Procurement Reform Act), relevant PCAB Implementing Rules and Regulations,
applicable DOLE Department Orders (DO 13 on Occupational Safety, DO 19 on
Employment), tax regulations (2% income tax withholding, 5% VAT withholding), equity
requirements (60% Filipino for Regular License, 75% Filipino for government projects),
