CONSTRUCTION AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Construction agreement made and executed this ___ day of September 2021 at Santiago
city by and between:
NAME, a resident of ______________ hereinafter referred as the OWNERS.
and
NAME, of legal age, single, Filipino, with office address at ________, herein
referred as the CONTRACTOR.
WITNESSETH:
WHEREAS, The OWNER shall construct Finishing of The Existing Second Floor and Third Floor
Structure of a Residential Building located at ___________________
WHEREAS, The CONTRACTOR presented and warranted that he is capable to construct and
complete the aforementioned Finishing of The Existing Second Floor and Third Floor Structure of a
Residential Building in accordance with the plans and specifications hereafter referred to as Design
and Contract Documents.
WHEREAS, on the basis of the foregoing representation and warranty of the contractor, the
OWNER accepted the offer of the CONTRACTOR to construct the above mentioned Ten Units
Three Storey Apartment Building with Roof deck.
NOW, THEREFORE, for and in consideration of the foregoing premises and the covenants and
undertaking hereafter set forth, the parties hereto agrees as follows:
ARTICLE 1. DESIGN AND CONTRACT DOCUMENTS. This Agreement, together with the design
and contract documents, copies of which are attached Annexes “A” to “D” hereof as prepared by
________________
a) Annex “A” - Second and Third Floor Plan
b) Annex “B” - Roof Beam and Roof Slab Details
c) Annex “C” - Interior Design
ARTICLE 2. SCOPE OF WORK. The contractor shall implement the proposed construction at
_________________
The CONTRACTOR shall:
a. Furnish all labor, materials, tools and equipment, technical knowhow and supervision
therein, the contractor may engage sub-contractors to perform works at its discretion
and shall fully payed said sub-contractor; and
b. Perform all the work stipulated and required under this agreement
ARTICLE 3. TERMS OF PAYMENT. Payment for this contract shall be based on the following:
a) Down payment. - Thirty (30) percent of the contract price.
b) Progress Billing - Base on actual accomplishments, subject to submission by the
contractor of the true and accurate accomplishment report and subject to confirmatory
site inspection of the owner. Subject to the following schedule of billing;
1. Second advance payment of 25 percent.
2. Third advance payment of 25 percent.
3. Forth advance payment of 20 percent; and
c) In the event the owner failed to pay the installment payment due, contractor may cease
without breach of contract.
ARTICLE 4. EXCLUSIONS. The owner-supplied materials such as lighting fixtures, Air Conditioning
units, Water Tank, Fence, WI-FI, CCTV, CABLE TV, Telephone, Furniture and the like are excluded
from the obligation of the contractor under this agreement.
All items and/or materials which are not included in the design, drawing plans or contract
documents and which are not discussed, approved and signed by the parties to this Agreement
shall be excluded from there respective obligation.
ARTICLE 5. CONTRACT AMOUNT. The contract amount shall be _______________ (Php
___________)
The OWNER shall pay the CONTRACTOR for the entire performance and supply of works,
labor, services, material and equipment stipulated in this contract in accordance with the agreed
scheduled of payment stipulated in the Article 3 of this contract.
The owner shall not incur any expenses above and beyond the aformention agreed contract
except for addition or extra work or change that maybe required and authorized in writing by the
owner and consented to in writing by the contractor.
ARTICLE 6. TIME COMPLETION. The contractor warrant that the construction of the project
shall be completed within 90 days, excluding Sundays and holidays, counted by the date of
issuance of the building permit and other related licenses by the City Building Official of Local
Government Unit or from the date the site is ready for construction as mutually determined by the
parties whichever come later.
The contractor shall not be liable for any delay due to circumstance beyond her control.
ARTICLE 7. SAFE GUARD. The contractor shall provide safe guard, facilities, equipment and
personnel for the full protection and safety of the construction site and its entire premises and the
safety and protection of the general public, pursuant to the standard and/or acceptable norms and
practices in the construction industry and/or as maybe mandated by applicable laws, rules and
regulation.
ARTICLE 8. ESCALATION CLAUSE. Escalation clause not applicable. It is agreed that the
contract price stated in Article 5 of this contract is final and fixed.
It is not subject to escalations or increases in the amounts, rates and valuations of any and all
taxes, licenses, permits, materials, inflation, deflation, and/or devaluation of the Philippine
Currency.
However in the event of new government-mandated increases in the minimum wages of
laborers issued subsequent to the date of the execution of this Agreement, the necessary
adjustments shall be made by the parties to comply therewith.
The said adjustments shall be subject to the mutual discussion, agreement, consent and written
approval by the parties prior to the implementation thereof.
IN WITNESS WHEREOF, the parties hereto have executed this contract this 15 th day of April
2019 at Santiago City, Philippines.
By: By:
____________________ _____________________________________
Owner Contractor
SIGNED IN THE PRESENCE OF:
________________________________ ________________________________
WITNESS WITNESS
