January 19, 2011
To: Friends, Colleagues and Contractors

Re: Survey - Proposal to Enact a Prompt Payment Law in the 

Dear Sirs and Mesdames:

Greetings! I am Mary Rocelyn Lim, a 5th year dual degree student of Law and MBA 
from the Far Eastern University – De La Salle University. I am conducting my law 
thesis regarding the proposal to enact a prompt payment law for the Philippine 
Construction Industry for private projects only.

The Prompt Payment Law, which has been enacted in countries such as U.S.A., U.K. 
Australia, Singapore and Japan, makes it mandatory for real estate owners and 
developers to pay the prime contractor within a set time, typically 30 days. 
This ensures that each party down the line, like sub-contractors, suppliers and 
laborers in the payment chain, gets paid on time.

A Prompt Payment Law has this main provision (New Jersey Security of Payments 
Act): “The Act requires a project owner to pay a contractor not later than 
thirty (30) days from the date the contractor’s bill is received. The Act also 
provides for payment of interest on unpaid amounts at prime plus one (1%) 
percent in the event payment is not made within the time period provided by the 
Act. In addition, the Act allows a contractor, and subcontractor to suspend work 
upon seven (7) days written notice.

Recently, Malaysia and Canada are making efforts to the enactment of a similar 
law. As such, this topic is ripe for study. I hope you will be able to help in 
my research and be part of the making of potentially good-piece legislation for 
the construction industry in the Philippines. To do so, please answer the quick 
survey as attached in this email (by sending electronically or thru telefax of 
PCA Metropolitan – +632-6464266) or click the following link The 
survey can be answered by any Project Manager or Officer of the Company. The 
surveys will close on January 20, 2011. 

To those whom I've already sent this message, I would just like to remind you, 
if you have time, to please answer the said survey. Disregard this message if 
you have already responded. Also, to my friends, please forward this message to 
contractors or engineers who work for construction firms.

Thank you in advance. If you have any questions, please feel free to email or 
contact me.

Mary Rocelyn Lim
5th Year MBA-JD

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