Subcontractor Scorecard
Evaluate subcontractors across 7 categories: PCAB licensing, DOLE compliance, insurance, financial capacity, past performance, equipment, and safety record. Get an A-F grade with contract recommendations.
Subcontractor Information
Valid PCAB license for required category
License category matches project scope (A-AAA as required)
SEC/DTI registration current
Business registration is active and not expired
BIR Tax Identification Number and clearance
Valid TIN and recent tax clearance certificate
PhilGEPS registration (for government projects)
Active PhilGEPS Platinum membership if bidding government work
Rating Scale: 1 (Poor) → 5 (Excellent)
1-2: Deficient / Non-compliant | 3: Meets minimum requirements | 4: Above average | 5: Excellent / Best practice
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Subcontractor Evaluation FAQ
Common questions about evaluating construction subcontractors
Key areas: PCAB license validity and category, DOLE compliance (labor cases, minimum wage, SSS/PhilHealth/Pag-IBIG), insurance coverage (CAR, CGL), financial capacity (audited FS, net worth), past performance (completed projects, references), equipment availability, and safety record (incident history, DOLE violations). For government projects, also check PhilGEPS registration per RA 9184.
PCAB (Philippine Contractors Accreditation Board) licenses construction contractors by category (D to AAA) based on financial capacity, equipment, and experience. Hiring an unlicensed subcontractor can void your insurance, create liability, and result in penalties under RA 4566. Always verify the sub's PCAB license matches the scope and value of their work package.
At minimum: Contractor's All Risk (CAR) insurance covering their scope of work, and Comprehensive General Liability (CGL) for third-party claims. Workers' Compensation beyond mandatory SSS/ECC coverage is recommended. For high-value contracts, verify their performance bond capability (typically 10-30% of contract value).
Department Order 174-17 regulates subcontracting and outsourcing in the Philippines. It requires: the subcontractor must be a legitimate contractor with substantial capital, workers must be employees of the subcontractor (not the principal), and labor-only contracting is prohibited. Non-compliance can make the general contractor a direct employer of the sub's workers.