CONSTRUCTION CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

THIS AGREEMENT made and entered into this _____ day of September
2018 by and between:

_____________________________, a Corporation duly organized and existing

under Philippine laws, with its principal office
at_______________________________ hereinafter called the “GENERAL
CONTRACTOR”,

and

____________________________________________________________________________
____________________________________________________________________________
______________, hereinafter called the OWNER.

WITNESSETH,

That the OWNER intends to commission the General Contractor to

construct _______________________________________ located at
____________________________.

NOW THEREFORE, the parties hereto, for and in consideration

hereinafter provided,

Hereby covenant and agree as follow:

ARTICLE I: SCOPE OF WORK

1. The GENERAL CONTRACTOR shall fully and faithfully furnish

materials, tools, equipment, facilities, and perform labor, supervision
and other services necessary for the satisfactory performance and
completion of the PROJECT in accordance with the approved plans and
specifications, construction guidelines and regulations, and as
described in the contract documents.

2. The GENERAL CONTRACTOR shall assign a personnel in the site to

manage the construction work. Said Project Architect or Project
Engineer shall have the authority to decide on matters affecting the
construction work.

ARTICLE II: CONTRACT AMOUNT AND MANNER OF PAYMENT

1. The OWNER, for and in consideration of the fulfillment of this contract

by the GENERAL CONTRACTOR, shall pay to the GENERAL
CONTRACTOR the lump sum amount of

PESOS: ____________________________________ (Php ________________)

 Philippine currency, excluding Value Added Tax (VAT), in the manner
provided hereinafter:

2. A down payment of ____________________ (____%) equivalent to

PESOS: __________________________________________ (Php___________)

3. The remaining balance shall be paid through monthly/weekly

progress billing based on actual work accomplished less ten percent
(10%) retention. However, no progress payment shall be released unless
the original copies of the following documents are submitted by the
GENERAL CONTRACTOR to the OWNER: Progress billing,
accomplishment chart and pictures of accomplishment.

4. The retention sum equivalent to TEN PERCENT (10%) of the contract

amount shall be released to the GENERAL CONTRACTOR within thirty
(30) calendar days after the Project has been finally accepted by the
OWNER, through its issuance to the GENERAL CONTRACTOR of a
CERTIFICATE OF FINAL ACCEPTANCE

5. Unless otherwise specified, the GENERAL CONTRACTOR shall submit

to OWNER, not more frequently than once per calendar month a
progress billing for works carried out during the preceding month.

6. OWNER shall pay the GENERAL CONTRACTOR within SEVEN (7)

calendar days after receipt of GENERAL CONTRACTOR’s Progress
Billing complete with necessary documents stated in Clause 3 of this
Article.

7. In the event the Owner fails to pay the General Contractor his progress
billings, the General Contractor may stop the work and close down the
site until such payment has been made. However, the General
Contractor shall issue a written notice to the Owner three (3) days prior
to work stoppage. Such work stoppage shall constitute an extension to
the completion of the project.

8. In the event the Owner fails to pay the General Contractor his progress
billings for one (1) month or more from the date of the billing, the
General Contractor shall be given outright an additional interest of 5%
monthly to his billing amount as penalty.

ARTICLE III; BONDS, INSURANCES & WARRANTIES

The GENERAL CONTRACTOR shall furnish to the OWNER the following

bonds and insurance that shall be issued in the substance, form, and
by insurance company acceptable to the OWNER:

1. Down payment Surety Bond shall be equivalent to thirty percent (30%)

of the contract amount. This bond shall be valid for the duration of the
Contract and shall be extended automatically until project completion.
 The Down payment bond shall be callable on demand and penal in
nature.

2. The GENERAL CONTRACTOR hereby guarantees the work stipulated in

this agreement and shall make good of any defects in selected materials
or workmanship, which becomes evident within one (1) year after the
PROJECT has been finally accepted by the OWNER, without prejudice
to the provisions of the Civil Code of the Philippines. However, such
warranties are limited to a section stipulated herein under “WARRANTY
GUIDELINES” which will be submitted upon completion of the project.

The GENERAL CONTRACTOR shall, upon OWNER’s acceptance of the

work and prior to release of the Retention Money, secure a Guarantee
Bond equivalent to ten percent (10%) of the total contract amount. The
bond shall be valid for a period of SIX (6) MONTHS from the date of
acceptance of the completed works.

Should there be defects discovered or known within SIX (6) MONTHS

from the acceptance by the OWNER of the PROJECT, the GENERAL
CONTRACTOR shall replace or repair the same within seven (7) working
days from receipt of notice from the OWNER. In the event that GENERAL
CONTRACTOR fails to act on the same within the stipulated period, the
OWNER at its discretion, may have the work performed by another party
at the expense of the GENERAL CONTRACTOR.

3. The GENERAL CONTRACTOR shall furnish the OWNER copy of

Insurances (CARI/CGLI) and/or Accident Coverage of its Workers prior
to commencement of works.

ARTICLE IV: CONSTRUCTION PERIOD

1. The GENERAL CONTRACTOR shall submit to the OWNER a Breakdown

of Work & Corresponding Value and a Work Schedule in the form of
a PERT/CPM or Bar Chart diagram within seven (7) calendar days
upon receipt of the Notice of Award. The OWNER reserves the right to
evaluate the said schedule and make necessary correction or changes
as needed before the start of the construction.

2. The work to be performed by the GENERAL CONTRACTOR must be

completed “READY FOR USE” within ______ working days without any
need of demand from the OWNER, commencing on the issuance of
Building Permit Construction Permit on ____________________. The last
day of construction shall be on ____________________, unless an
extension of time has been authorized and approved in writing by the
OWNER and/or ARCHITECT.

Working days/hours shall be _____________________________.

3. At least thirty (30) days before the turn over of the project, the OWNER,
through its authorized representative, shall provide the GENERAL
CONTRACTOR with a list (hereinafter referred to as the “PUNCHLIST”)
enumerating all defects and deficiencies in the work of the GENERAL
 CONTRACTOR including those done poorly or in contravention of the
contract documents found upon inspection by latter.

4. The OWNER may request for partial turn-over of completed areas and
may occupy/utilize the habitable premises anytime provided the
GENERAL CONTRACTOR agrees on the conditions to be set forth in
writing on such occupation/utilization. No partial turn-over shall be
made without the written conditions agreed by both parties.

5. In case the Punch List contains items involving extensive work and are
not part of any additional or change order works, which could not be
completed on the date of turnover and the GENERAL CONTRACTOR
failed to complete the works on said date, the GENERAL CONTRACTOR
shall be liable to pay the amounts enumerated herein below over and
above its obligation to complete the construction of the PROJECT.

6. It is understood that time is an essential feature of this contract, and

upon failure of the GENERAL CONTRACTOR to complete the PROJECT
on the date of turnover, the GENERAL CONTRACTOR shall pay to the
OWNER the amount of

PESOS: ____________________________________________________________

per working day of delay in the completion of the PROJECT starting on

____________________. Said payment shall be considered as penalty for
the delay of the PROJECT which amount may also be automatically
deducted from the Contract Amount by the OWNER. However, if the
failure to turn-over is caused by unfinished works corresponding to only
5% below of the contract amount, upon further verification that the said
works will cause minimal delay to the Project’s turn-over and if the
GENERAL CONTRACTOR will complete the balance of works within the
period approved by the Owner, no penalty will be imposed. Otherwise,
the liquidated damage as stipulated above shall be charged accordingly.
In cases where the failure of turn-over is caused by additive works or
natural calamities, no penalty shall be imposed and an extension of
days shall take effect.

7. The GENERAL CONTRACTOR shall be liable for the aforementioned

penalty until the day the GENERAL CONTRACTOR has: (a) corrected all
Punch List items; and (b) the OWNER and/ or Architect has issued the
CERTIFICATE OF FINAL ACCEPTANCE to the Contractor. The OWNER
may opt to occupy the premises despite the non-completion by the
CONTRACTOR of the contract work.

8. The OWNER shall issue a CERTIFICATE OF FINAL ACCEPTANCE to the

GENERAL CONTRACTOR only after: (a) all the items in the Punch List
have been found corrected to the full satisfaction of the OWNER or
Architect; (b) all documents pertaining to the construction are turned-
over to the OWNER, such as 1 set of As-Built plans blueprint signed
and sealed, Completion and Acceptance Certificate, 100% completion
Bar Chart Accomplishments, Turn-over rundown checklist and Final
Retention Billing.
 ARTICLE V: EXTRA WORK AND CHANGE ORDERS

1. The OWNER, may, at any time, order extra work or modify the work, by
way of adding to and/or deducting from the same, as covered by the
contract documents. Such extra work or change may be initially ordered
by the OWNER’s Architect and confirmed subsequently in writing by the
OWNER’s Architect. No extra work or change shall be considered to have
been authorized without the written confirmation signed by the
OWNER’s Architect. However, no such work shall commence without
the written consent and approval of new cost by the Owner and such
delay shall likewise consider as an extension of construction period on
the part of the General Contractor.

2. The costs incurred by the extra work or change order mentioned above,
whether an increase or decrease in the contract amount, shall be
mutually agreed upon by the OWNER and the GENERAL
CONTRACTOR.

3. All extra work or change order shall only be done after the Owner
approved the additional cost and /or deductive cost submitted by the
General Contractor. All extra work and change order shall entail extra
added time to complete, the Owner shall extend the contract period as
presented by the General Contractor.

ARTICLE VI: FORFEITURE OF PAYMENT

1. Any unpaid balance including the retention amount and all change
order and extra work claims due to the GENERAL CONTRACTOR shall
be forfeited in favor of the OWNER under the following conditions:

1.1. In the event the GENERAL CONTRACTOR fails to file with the
OWNER all change order and extra work claims related to the
PROJECT within thirty (30) working days from the date of turn-over.
1.2. In the event the GENERAL CONTRACTOR fails to file with the
OWNER the final billing statement within ninety (90) working days
from the date of turn over.

ARTICLE VII: OTHER CONDITIONS

1. This is a lump sum/fixed price contract. The GENERAL CONTRACTOR

shall not make any claim for an increase in the Contract Amount on
account of any increase in the prices of materials, fuel, equipment and
labor due to any cause whatsoever. No foreign exchange rate
adjustment will be allowed.

No increase in cost or extension of construction period shall be allowed

for the GENERAL CONTRACTOR’s failure to fully examine the contract
documents, or determine actual site conditions and other pertinent data
that may cause difficulty or delay in the work unless otherwise noted by
the Owner’s Architect.
2. The GENERAL CONTRACTOR shall be aware of the regulations and
restrictions imposed by the barangay office where the Project is situated.

3. The GENERAL CONTRACTOR shall ensure that all precautionary

measures are properly implemented.

4. The GENERAL CONTRACTOR shall ensure that working and site

conditions are safe before proceeding with any work.

5. The GENERAL CONTRACTOR shall provide adequate measures to

protect all construction personnel, the OWNER’s representatives,
inspectors and other people entering the construction site from harm
and injury which may be caused in any manner by its acts or neglect,
or that of its agents, employees or workmen. In such an event, the
GENERAL CONTRACTOR shall be solely liable and must shoulder all
expenses arising from such injury or damage.

6. The OWNER shall in no manner be answerable or accountable for any

incident or injury of any kind which may occur to any personnel of the
GENERAL CONTRACTOR as a consequence of the work and services
under this Agreement, nor for any injury, loss or damage arising from
the fault, negligence or carelessness of the GENERAL CONTRACTOR or
any of its employees to any person or property. The GENERAL
CONTRACTOR hereby agrees to assume all liability for any and all such
injury, loss or damage, leaving the OWNER free and harmless
therefrom. In the event of any action filed against the OWNER in
connection herewith, the OWNER shall have the option of withholding
the consideration of the Contract to answer for any liability, which may
be imposed on the OWNER.

7. The following shall be supplied by the GENERAL CONTRACTOR:

a) Building and Occupancy permits including other LGU permits

b) Landscape, rockscape and waterscape
c) All Architectural, Electrical, Sanitary, Mechanical and
Auxillary Materials.
d) Local Taxes, Utility Fees, Chateaux De Paris fees and bonds

8. The GENERAL CONTRACTOR shall secure the Project Site throughout

the entire construction duration.

9. The OWNER/ARCHITECT or its authorized representatives shall at all

times have access to the construction site or any other place where work
is being done for the PROJECT for the purpose of checking the progress
of the work and the materials used on the project.

10. It shall be the sole responsibility of the GENERAL CONTRACTOR

to determine by itself in any manner it considers necessary all matter
pertaining to the PROJECT, including among others, transportation and
communication facilities, availability of materials, labor, water, electric
power and other factors that may affect the cost, duration and execution
of the works, including restrictions, guidelines, regulations and
 policies of the developer/property/building owner or mall
administration.

11. Except as to the end results of the project and matters set forth in the
Contract documents, the GENERAL CONTRACTOR shall perform its
task on its own account, under its own responsibility, free from any
further control or direction of the OWNER especially as to the selection,
discipline, control and supervision of the GENERAL CONTRACTOR’s
personnel who are not, and cannot be deemed, employees of the
OWNER.

The GENERAL CONTRACTOR shall assume the responsibility in

providing their personnel, who by reason of this Project are assigned to
the OWNER, their labor and occupational safety and health standards,
security of tenure and whatever rights afforded by the Labor Code and
other similar laws.

12. The GENERAL CONTRACTOR hereby undertakes to pay the minimum

wage and other benefits or compensation to its personnel and comply
with all requirements of labor standards in accordance with and as set
forth in the Labor Code. The GENERAL CONTRACTOR shall hold the
OWNER free and harmless from any liability for all claims of its
employees. In the event of any labor dispute files against the OWNER,
the OWNER may withhold the consideration of the Contract to answer
for any liability, which may be imposed on the OWNER.

13. As a condition for the release of the TEN PERCENT (10%) retention
amount, the GENERAL CONTRACTOR shall submit to the OWNER
original copies of the documents enumerated below:
a. Guarantee Bond
b. Certificate of Completion
c. Turn-over Certificate
d. Punchlist Rectification Certificate
e. Certificate of Final Inspection
f. Electrical Load Record
g. Certificate of Warranty
h. As built Plans (1-set) for: Architectural/Civil Works/Electrical
Work, Plumbing Work
i. Meralco power cerficate (by Owner)
j. Maynilad / DMCI water certificate (by Owner)

14. Should it be necessary for the OWNER to conduct another inspection as

a result of the GENERAL CONTRACTOR’s failure to complete all punch
list items within the stipulated period or to rectify noted defects within
the guarantee period, all expenses incurred by the OWNER, such as,
but not limited to, plane/boat/bus fare, hotel accommodation, staff
overtime and per diem, shall be deducted from the final payment due to
the contractor.
 ARTICLE VIII: SUB-CONTRACTOR

1. It is hereby understood and agreed that the entire work called for by
this contract shall not be sub-let or sub-contracted. However, certain
specialty works therein may be sub-let or sub-contracted subject to the
following conditions:

a. The GENERAL CONTRACTOR agrees that it is fully responsible

to the OWNER for the acts and omissions of its sub-contractors
and the persons either directly or indirectly employed by him, as
he is for the acts and omissions of persons directly employed by
him.
b. Nothing contained in this contract, or in the contract documents
shall create any contractual relations between any sub-
contractor and the OWNER.

2. The GENERAL CONTRACTOR shall instruct the sub-contractor

concerned to prepare all plans relative to the work to be performed by
them for submission and approval of the OWNER and to subsequently
secure approval from the OWNER for their respective scope of
responsibility prior to start of work.

3. It shall be the primary responsibility of the GENERAL CONTRACTOR to

coordinate with all sub-contractors to meet the deadline for the turnover
of the Project, and see to it that the work is done in accordance with the
contract documents.

4. The GENERAL CONTRACTOR shall be primarily responsible for the

work of all sub-contractors referred and engaged by him.

ARTICLE IX: PERMITS AND LICENSES

1. The GENERAL CONTRACTOR shall comply with all requirements of law

and secure the necessary licenses and permits for the PROJECT.

2. The GENERAL CONTRACTOR shall pay the filing fees and facilitate, at
his expense, the processing of all government permits and licenses. Any
penalties, surcharges and all other fines or fees imposed by the
government due to the OWNER’s failure and delay to comply with the
requirements of law shall be fully charged to the OWNER.

ARTICLE X: REGISTRATION OF CONTRACTOR

1. The GENERAL CONTRACTOR warrants that he is enrolled (or he has,

or he will apply within fifteen (15) working days from the execution of
this Contract) in the registry of contractors and sub-contractors in the
Bureau of Local Employment of the Regional Office of the Department
of Labor and Employment (DOLE) in accordance with Department Order
No. 10, Series of 1997 of the DOLE. (not applicable)
 IN WITNESS WHEREOF, the parties to this contract have on the day,
month and year first above written, hereunto set their hands and seals at the
bottom of this page and on the left hand margin of all other pages of this
contract.

___________________ ______________________

Represented By: Represented By:

___________________ _______________________
GENERAL CONTRACTOR OWNER

WITNESSES:

________________________

________________________