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CONSTRUCTION AGREEMENT
KNOW
ALL MEN BY THESE PRESENTS:
This
CONSTRUCTION AGREEMENT made and executed this ___th day of ________ 2016 in the
City of Xxx by and between:
Spouses xxx and xxx,
with residential address at xxx, xxx, xxx, hereinafter referred to as the OWNERS;
-and-
Xxx CONSTRUCTION,
a single-proprietorship construction enterprise duly organized and existing
under the laws of the Philippines, with office address at xxx xxx, xxx represented
by its Proprietor-Manager Engr. Xxx, hereinafter referred to as
the CONTRACTOR;
WITNESSETH:
-
WHEREAS,
the OWNERS, Spouses xxx and xxx, shall construct of two-storey Residential
Building with Roofdeck and Penthouse located at xxx, xxx xxx, the same to be
funded by a construction/housing loan from a reputable Bank;
WHEREAS,
the CONTRACTOR presented and warranted to the OWNERS that it is capable,
competent, and a duly registered construction enterprise licensed and
authorized by law to construct and to complete the aforementioned Residential
Building in accordance with the plans and
specifications hereinafter referred to as Design and Contract Documents;
WHEREAS,
on the basis of the foregoing representation and warranty of the CONTRACTOR,
the OWNERS accepted the offer of the CONTRACTOR to construct the above-mentioned
Residential Building.
NOW, THEREFORE,
for and in consideration of the foregoing premises and the covenants and
undertakings hereinafter set forth, the parties hereto agree as follows:
ARTICLE 1. DESIGN AND CONTRACT
DOCUMENTS. - This Agreement, together with the
following Design and Contract Documents, copies of which are
attached hereto as Annexes “A” to “D” hereof,
as prepared by xxx in his capacity as the LICENSED
ENGINEER and MANAGER of the CONTRACTOR shall constitute as the Entire Agreement, to wit:
(a)
Annex
“A” - Architectural Plans , consisting of three
(3) sheets;
(b)
Annex
“B” - Structural
Plans, consisting of two (2) sheets;
(c)
Annex
“C” - Electrical Plans, consisting of two (2)
sheets;
(d)
Annex
“D” - Plumbing Plans, consisting of three
(3) sheets.
The
DESIGNER/SIGNATORY of the Design and Contract Documents is also the CONTRACTOR
in this Agreement.
Any
part of the Design and Contract Documents may be changed by the parties to this Agreement to improve, preserve and
protect the beauty and strength of the structure.
All
changes in the Design and Contract
Documents shall be subject to the
following conditions:
(a)
The parties to this Agreement shall
first conduct a personal conference and
consultation to mutually discuss and agree upon the changes proposed by any
of the parties hereto;
(b)
The DESIGNER/CONTRACROR shall affix the signature of its duly
authorized Engineer on the As-Built Plans
and
(c)
The said changes shall be approved in
writing by the OWNERS prior the implementation thereof by the DESIGNER/CONTRACTOR;
The
OWNERS shall be formally furnished by the DESIGNER/CONRACTOR with copies of the
following documents or records (a) within seven (7) days from the date of the execution
of this Agreement or (b) within seven (7) days from the approval thereof by the
Local Government of Xxx City or (c) within seven (7) days from the completion,
approval and signing of the final official versions thereof by the parties to
this Agreement -- whichever period comes first -- to wit:
(a)
The original
copies or duplicate original copies or
certified true copies of both the PRELIMINARY AND FINAL DESIGN AND CONTRACT DOCUMENTS AND AMENDED VERSIONS THEREOF,
if any, duly discussed and approved/signed
by the parties to this Agreement prior
to the official approval thereof
by the City Building Official of the Local Government of xxx City;
(b)
The original
copies or duplicate original copies or certified
true copies of the FINAL DESIGN AND CONTRACT
DOCUMENTS duly discussed and approved/signed by the parties to this Agreement
and officially filed with, received by, processed, and approved by the City
Building Official of the Local Government of xxx City, pursuant to applicable
building and other laws;
(c)
The original copies or
duplicate original copies or certified true copies of ALL BUILDING AND OTHER INCIDENTAL LICENSES AND PERMITS officially processed, approved, issued and
released by the City Building Official and other concerned offices of the Local
Government of Xxx City, pursuant to applicable building and other laws;
(d)
The original copy or
duplicate original copy or certified true copy of the PRELIMINARY AND FINAL SCOPE OF WORKS AND AMENDED VERSIONS
THEREOF, if any, duly discussed, approved and signed by the parties to this Agreement, detailing;
(i)
the construction-related
activities involved,
(ii)
the time or schedule of
commencement and completion of the stipulated works and services,
(iii)
the final turnover of
the Residential Building,
(iv)
the necessary construction-related
charts, graphs, illustrations, and documentations, and
(v)
all other topics,
items and information related to the Construction;
(e)
The original copy or
duplicate original copy or certified true copy of the PRELIMINARY AND FINAL BILL OF MATERIALS AND AMENDED VERSIONS
THEREOF, if any, duly discussed, approved and signed by the parties to this Agreement; and
(f)
The original copies or
duplicate original copies or certified true copies of any and all other relevant materials, documents, records,
plans, papers and legal instruments as may be required from time to time by the OWNERS from the CONTRACTOR for the information
and reference of the OWNERS.
ARTICLE 2. SCOPE OF
WORK. - The CONTRACTOR shall implement the Proposed
Construction at xxx, xxx, xxx, xxx., Xxx.
The CONTRACTOR shall:
(a) Furnish all labor,
materials, tools and equipment, technical knowhow and supervision therein; and
(b) Perform all the
works stipulated and required under this Agreement.
The
DESIGNER/CONTRACTOR shall secure the
Permits and Licenses (Building Permits, Occupancy Permits and other Incidental
Permits) required by the City Building Official and other concerned internal
offices of the Local Government of Xxx City at the expense of the OWNERS and subject to the right of the OWNERS to examine
the expenses incurred for said purposes and the documentary proofs thereof.
ARTICLE 3. TERMS OF
PAYMENT. - Payment for this Contract shall be
based on the following:
(a)
Down
Payment - Thirty Percent (30%) of the Total
Contract Price, the same to be paid on instalment basis depending on the actual
dates of the releases of the construction/housing loan or instalments thereof
by the lending Bank;
(b)
Progress
Billings - based on Actual Accomplishments, subject to submission by the
CONTRACTOR of the true and accurate Accomplishment Reports and subject to
confirmatory site inspection by the OWNERS; and
(c)
Retention
- Five Percent (5%) of the Total Contract Price to be released upon Turn-Over to
the OWNERS of the Finished Project and
the Occupancy of the Residential Building by the OWNERS.
ARTICLE 4. EXCLUSIONS.
- The OWNERS-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 obligations of the
DESIGNER/CONTRACTOR under this Agreement.
All
Items and/or Materials which are not indicated 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 their respective obligations.
ARTICLE 5. CONTRACT
AMOUNT. - The
CONTRACT AMOUNT shall be xxx MILLION PESOS (Pxxx, 000, 000.00).
The
OWNERS shall pay the CONTRACTOR for the entire performance and supply of the
works, labor, services, materials, machinery and equipment stipulated in this
Agreement in accordance with the agreed
schedule of payment stipulated in the Article 3 of this Agreement.
The
CONTRACTOR hereby guarantees and
warrants the stability, strength and structural integrity of the subject two
(2)-storey Residential Building with Roofdeck and Penthouse within the period
mandated by the Civil Code of the Philippines and other applicable building
laws, rules and regulations.
The
OWNERSs shall not incur any expenses above and beyond the aforementioned agreed
contract amount, except for the additional
or extra works or changes that may be required and authorized in writing by the OWNERS and consented
to in writing by the CONTRACTOR.
ARTICLE 6. DEFECTIVE
WORKS AND MATERIALS. – All defective works
discovered by the OWNERS in the course of the construction until the date of occupancy
shall be promptly made good, repaired, remedied, restored, corrected and
rectified by the CONTRACTOR at its
expense within seven days from such discovery or within such reasonable period
as may be mutually agreed upon by the parties, at the option of the OWNERS.
All
unsuitable, sub-standard, and poor-quality construction materials and works shall
be rejected by the OWNERS and the CONTRACTOR and shall be promptly made good,
remedied, corrected, rectified, and replaced by the CONTRACTOR at its expense, notwithstanding that such works and materials were overlooked by the OWNERS.
If
the work or any part thereof shall be found to be not in conformity with the agreed specifications, the CONTRACTOR
shall forthwith remove and replace such
materials to comply with the agreed specifications.
All
materials and workmanship are guaranteed
by the CONTRACTOR for a period of six (6)
months from the date of the turn-over of the construction project.
As
stated in Article 6 of this Agreement, the CONTRACTOR hereby guarantees and warrants the structural stability,
strength and integrity of the subject two (2)-storey Residential Building
with Roofdeck and Penthouse within the period mandated by the Civil Code of the
Philippines and other applicable building laws, rules and regulations.
ARTICLE 7. THIRD PARTY
LIABILITY; and CONSTRUCTION ALL RISKS INSURANCE.
- The OWNERS shall be held free and harmless from any and all civil and
criminal liabilities and from any and all legal, administrative, judicial and
extrajudicial claims, demands, suits or actions by the Construction Workers,
Staff, Personnel and Agents of the CONTRACTOR, by any and all Third Parties and
Entities, whether natural or juridical, and by any and all concerned Local and
National Government Agencies arising from, caused by, by reason of, or due to the
construction of the subject residential building, such as, but not limited to:
(a)
Salaries, Wages,
Allowances and Workers Benefits, as required by applicable labor laws,
(b)
Overtime pays, as
required by applicable labor laws,
(c)
Holiday pays, as
required by applicable labor laws,
(d)
Service incentive
leaves, as required by applicable labor laws,
(e)
Any and all other
mandatory and existing leaves mandated and required by applicable labor laws,
rules and regulations,
(f)
Thirteenth month pays,
as required by applicable labor laws,
(g)
Compensations for Injury
or Death of the Construction Workers, Staff, Personnel and Agents of the
CONTRACTOR, pursuant to applicable laws, rules and regulations and/or by equity
and natural justice,
(h)
Compensations for any
and all Injury or Death caused to and sustained by any and all Third Parties or
Entities, pursuant to applicable laws, rules and regulations and/or by equity
and natural justice,
(i)
Premiums for the coverage
of the Construction Workers, Staff, Personnel and Agents of the CONTRACTOR under
the Social Security System (SSS), PHILHEALTH, and PAG-IBIG, and other relevant labor
legislations, payable by the CONTRACTOR to the Government, pursuant to
applicable laws, rules and regulations and/or by equity and natural justice,
(j)
Any and all Income and
Other Kinds of Taxes of whatever nature and kind, as well as any and all
administrative and regulatory fees and charges of whatever nature and kind, payable
by the CONTRACTOR to the Local and/or National Governments, pursuant to
applicable laws, rules and regulations and/or by equity and natural justice, and
(k)
Any and all other legal
or financial obligations of whatever nature and kind not mentioned above which
are payable by the CONTRACTOR to the Local and/or National Governments pursuant
to applicable laws, rules and regulations and/or by equity and natural justice.
All
of the aforecited items shall be for the sole account of and shall be the
exclusive duty, responsibility, liability and obligation of the CONTRACTOR.
The
OWNERSs shall not be held liable for any and all of the aforecited obligations
or liabilities of the CONTRACTOR.
The
OWNERS shall not be held liable for any and all liens and encumbrances which the
CONTRACTOR might incur from any and all third parties or entities arising from the
supply of materials, labor, or services rendered for the project.
The
CONTRACTOR shall secure a CONTRUCTION
ALL RISKS INSURANCE at its own
expense for the benefit of and to secure, assure and protect the OWNERS, as
the assured party, from any and all
claims, risks, suits, actions and demands by any and all persons or entities
arising from, by reason of, caused by, and due to the subject construction
activities.
The
said CONTRUCTION ALL RISKS INSURANCE
shall be secured by the CONTRACTOR prior to or at the latest within seven days
from the date of the execution of this Agreement.
The
CONTRACTOR shall furnish the OWNERS the original copies or duplicate original
copies or certified true copies of the said CONTRUCTION ALL RISKS INSURANCE and any and all of its related
documents, memoranda, records, papers, instruments, vouchers, official receipts
and other proofs of payment of the premiums thereof, the proofs of the execution
and perfection of the said Insurance Contract, and the like, prior to or at the
latest within seven days from the date of the execution of this Agreement.
ARTICLE 8. CHANGES AND
ADDITIONS. - In the event additional or revised works not shown or indicated in the approved Design
and Contract Documents are required or ordered by the OWNERS, such additional
or revised works required or ordered by the OWNERS shall be communicated in writing by the OWNERS to
the CONTRACTOR through written change
orders or memoranda for mutual discussion, approval and documentation and
signing thereof by the parties to this Agreement.
All
mutually discussed, approved, documented and signed change orders or memoranda,
including any and all deletions and omissions, shall state the AGREED COSTS of the additional,
revised, deleted or omitted works.
Such
agreed costs may or may not result in the upward
or downward adjustments of the agreed Contract Price stipulated in Article 5 of
this Agreement.
The
change orders or memoranda shall indicate any and all agreed TIME EXTENSIONS that
the additional or revised works would entail.
All agreed costs shall be based on the prevailing
market prices at the time the change orders or memoranda are mutually approved
and signed by the parties to this Agreement.
The
specific amounts of the labor costs shall be indicated in the approved and
signed change orders or memoranda.
The
CONTRACTOR shall be entitled to an amount equivalent to fifteen percent (15 %) of
the total of the agreed costs to cover his profit margin and overhead expenses.
No
change orders or memoranda shall be implemented without the prior mutual discussion,
approval and signature by and between the parties.
ARTICLE 9. TIME OF
COMPLETION. - The CONTRACTOR warrants that the construction
of the subject Project shall be completed within
TWO HUNDRED (200) working days, excluding Sundays & Holidays, counted
(a) from the date of the issuance of the Building
Permit and other Related Licenses
by the City Building Official and other concerned internal offices of the Local
Government of Xxx City or (b) from the date the Site is ready for construction
as mutually determined by the parties -- whichever
comes later.
ARTICLE 10. SAFEGUARDS.
- The CONTRACTOR shall provide safeguards, 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 may be
mandated by applicable laws, rules and regulations.
The
CONTRACTOR shall be solely responsible for and shall forever hold the OWNERS free
and harmless from and against any and all obligations, liabilities, damages, losses,
expenses, judgments, court costs or costs of suit, attorney's fees, litigation
expenses, demands, payments, suits, actions recoveries, decrees, executions and
claims of whatever nature, kind and
description brought, commenced, instituted and/or recovered against the CONTRACTOR
and/or jointly against the OWNERS as the co-defendants of the CONTRACTOR (a) by
any and all builders, agents, servants, laborers, employees or representatives
of the CONTRACTOR and/or (b) by any and all injured or aggrieved persons,
parties and/or entities arising from, by reason of, due to, and/or caused by
the construction of the subject residential building.
The
CONTRACTOR shall be solely responsible for and shall exclusively bear any and all
costs and expenses caused by any and all losses, damages, accidents, torts, wrongful
acts, crimes or felonies, deaths, injuries, and fire sustained by his laborers
or workers, staff, personnel, representatives and agents and/or by any and all
Third Parties and Entities arising from or in connection with the execution of
the works and services stipulated in this Agreement.
ARTICLE 11. ESCALATION
CLAUSE NOT APPLICABLE. - It is agreed that
the Contract Price stated in Article
5 of this Agreement 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.
Xxx, xxx.
Spouses xxx xxx CONSTRUCTION
And xxx Designer/Contractor
Owners
By:
Xxxx
Manager
WITNESSES:
___________________ ___________________
ACKNOWLEDGMENT
BEFORE ME in Xxx,
Philippines on this ___th day of __________ 2016 personally appeared:
xxx – ID xxx;
xxx – ID xxx; and
Engr. xxx – ID xxx.
who
are known to me and to me known to be the same persons who executed the
foregoing Construction Agreement consisting of eleven (11) pages, including the
page on which this Acknowledgment is written, which Construction Agreement is
signed by the abovenamed parties on the margin of each page thereof, and who acknowledged
to me that the same is their free and voluntary act and deed.
WITNESS MY HAND
AND SEAL on the date and place first above written.
Notary
Public
Doc. No. _____
Page No. _____
Book No. _____
Series of 2016.
Annexes:
Annex
“A” - Architectural Plans , consisting of three (3) sheets;
Annex
“B” - Structural Plans, consisting of two (2) sheets;
Annex
“C” - Electrical Plans, consisting of two (2) sheets;
Annex “D” - Plumbing Plans, consisting of
three (3) sheets.