


10 October 2025
In light of the intense public scrutiny on government flood control projects, DivinaLaw Senior Partner Atty. Enrique V. Dela Cruz Jr. discussed how to manage risks and claims from government construction projects during the Society of Construction Law of the Philippines (SCLP) National Conference held in Taguig.
Speaking before a crowd of over 200 lawyers, engineers, and professionals from the construction industry, Atty. Dela Cruz said: “Government contracts contain specific clauses and liability annotations that differ from private sector agreements. For example, liability for defects. The contractor is responsible for structural defects and structural failures for one year after the project is completed. This includes any issues due to improper work or substandard materials being used. If you talk about substandard flood control projects, the Department of Public Works and Highways (DPWH) — being the project owner — has several remedies for claims to make these contractors liable.”
“Also, most government construction contracts require the contractors to secure an all-risk insurance. This is to protect the government against major losses that will render the contractor financially incapable of its these obligations. Again, the government can go after the insurance policy. Also, contractors are required to post surety bonds that actually secure the proper fulfillment of their contractual obligations to finish the project according to plans. Here, the DPWH can go after the surety bond for defective or ghost projects.”
Atty. Dela Cruz was a panelist for the discussion on “Managing Claims and Liabilities in Construction Projects” moderated by Engr. Vanessa Malaluan of SCLP.
Atty. Dela Cruz is the head of DivinaLaw’s Arbitration Practice Group. He is a member of the London Court of International Arbitration (LCIA) Asia Users Council, the Advisory Council of the Office for Alternative Dispute Resolution under the Philippine Department of Justice, and the Philippine Institute of Construction Arbitrators and Mediators. He is an accredited Arbitrator at the Construction Industry Arbitration Commission of the Philippines.