Ethical behavior should be encouraged and rewarded, while unethical practices

should be swiftly addressed and remedied.

By addressing ethical concerns in design-build services, architects and design-

build firms can not only enhance their professional reputation but also contribute
to the overall integrity, growth, and sustainability of the construction industry.

There are many reasons why professionals are involved in unethical practices. This may be due
to insufficient legislative enforcement, fierce competition, the economic downturn, insufficient
ethical education from schools and professional institutions, cultural changes and high
complexity of construction works. The Malaysian construction industry is no exception. Even
though there are guidelines and acts to guide the procurement process, ethical issues still arise
in projects, leading to lower project quality outcomes. In Malaysia, a number of high-profile
public sector projects are muddied by problems; the headquarters of the Malaysian External
Trade Development Corporation; delay in completion of school buildings; school computer labs;
cracks in 31 pillars of the Middle Road Ring Two (MRR2) projects; and most recently, the
collapsed roof of the Sultan Mizan Zainal Abidin Stadium in Terengganu (Board of Architects
Malaysia, 2008).
1. What are the requirements under the law that requires an architect to practice
design-build services. Discuss extensively the requirements for design-build
services.

Categories of PCAB licenses

Standard – A license provided to local construction firms categorized as a sole
proprietorship, partnership, or corporation with a minimum of sixty percent (60%)
Filipino ownership.
(An interesting development has arisen regarding this requirement. In the case of
PCAB vs. Manila Water Company Inc., G.R. No. 217590 dated March 10, 2020,
the Supreme Court invalidated the nationality-based license types established by
PCAB in its Rules and Regulations. They ruled that Regular Licenses can be
granted to domestic corporations regardless of foreign equity ownership. In other
words, even a construction company fully owned by foreign entities can now
obtain a Regular License from PCAB. Additionally, construction companies with a
Regular License can adjust their ownership structure to increase foreign equity
participation without invalidating their license. It is important to note, however,
that PCAB has yet to implement this Supreme Court ruling, so the current
situation still upholds the 40% limitation for foreign ownership.)
Special – A license issued to a consortium, foreign contractor, joint venture, or
project owner exclusively for the construction of a specific project or undertaking.

(2). Special License: This license is granted to a consortium, foreign contractor, joint venture, or
project owner for the construction of a specific project or undertaking. It is not a general license
for ongoing construction activities but is specific to a particular project. In case the Licensee is a
foreign firm, the license authorization shall be further subject to condition(s) as may have been
imposed by the proper Philippine government authority in