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CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement dated (INSERT DATE) is entered by and between:

XXX, a corporation duly organized and existing under the laws of the
Republic of the Philippines with principal office at XXX, represented by its
General Manager (or any authorized signatory), (INSERT NAME OF
SIGNATORY), hereinafter referred to as “CLIENT”;

-AND-

(INSERT NAME OF CONSTRUCTION FIRM) with office address at


(INSERT ADDRESS), represented by (INSERT COMPLETE NAME), of
legal age, married, Filipino, in his capacity as Proprietor hereof, hereinafter
referred to as “CONTRACTOR”;

WITNESSETH:

WHEREAS, the CLIENT is in need of the services of the CONTRACTOR for the
construction of buildings (better to specify the project, e.g. two-storey building) located
within XXX;

WHEREAS, the CLIENT has accepted the services offered by the CONTRACTOR to
construct, supply, and install the abovementioned project subject to the terms and
condition hereinafter set forth;

NOW, THEREFORE, for and in consideration of the covenants hereinafter made, the
parties hereto agree as follows:

SECTION I – SCOPE OF WORK

The CONTRACTOR, in consideration of the payment to be made by the CLIENT,


binds itself to:

1. Furnish all labor, materials, tools, equipment and machinery, technical


knowhow and supervision therein;

2. Perform all the works stipulated and required under this Agreement.

SECTION II – CONTRACT PRICE

For and in consideration of the fulfillment of this Agreement by the CONTRACTOR,


the CLIENT shall pay, in Philippine currency, the total sum of INSERT
AMOUNT/BUDGET.

SECTION III – THIRD PARTY LIABILITY

The CONTRACTOR shall be solely responsible for and shall forever hold the
CLIENT free and harmless from and against any and all obligations, liabilities,
damages, losses, expenses, judgments, court costs or costs of suit, attorney's fees,
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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 CLIENT 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.

SECTION IV – CONTRACTOR’S RESPONSIBLITIES

The CONTRACTOR shall assume full and exclusive responsibility for all its
Construction Workers, Staff, Personnel and Agents engaged by it for the construction of
the above mentioned project, such as but not limited to:

1. Salaries, wages, allowances and workers benefits, as mandated and required by


applicable labor laws, rules, and regulations;

2. All claims arising out of, or in connection with, any injury or damage that may be
sustained by any worker in the performance of the works contracted for under this
Agreement;

3. 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;

4. The provision to all of its workers and representatives of identification cards (IDs) to
be worn at all times inside the premises of the CLIENT, as well as appropriate
personal protective equipment such as gloves, safety boots, face protection, hard
hats, and other equipment as determined to be necessary; AND

5. The compliance with the provisions of the Labor Code of the Philippines, specifically
on the restriction in the hiring of any person below eighteen (18) years old in an
undertaking which is hazardous or deleterious in nature.

SECTION V – TERMINATION OF THIS AGREEMENT

This Agreement may be terminated by written agreement of the parties or by the


CLIENT upon written notice to the CONTRACTOR in case of failure for any reason
whatsoever on the part of the CONTRACTOR to competently and faithfully discharge its
obligation and duties under this Agreement.

In case of termination of this Agreement upon breach of the provisions thereof by


the CONTRACTOR, the CLIENT shall be entitled to collect from the CONTRACTOR
any and all amounts of money which the CLIENT may have advanced to the
CONTRACTOR less whatever actual works performed by the CONTRACTOR.

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This Agreement shall be governed, construed, and interpreted in accordance
with the laws of the Republic of the Philippines. In the event that any one of the
provisions contained herein shall for any reason be declared invalid or unenforceable,
such invalidity shall not affect any other provision of this Agreement which shall then
continue to be in full force and effect as if such had not been embodied herein.

IN WITNESS WHEREOF, we have hereunto executed this CONSTRUCTION


AGREEMENT on ___________________ at ____________________.

XXX NAME OF THE CONSTRUCTION


FIRM

Represented by: Represented by:

AUTHORIZED ENGR. DALUAN


REPRESENTATIVE

SIGNED IN THE PRESENCE OF:

1. ______________________________ 2. ______________________________

ACKNOWLEDGMENT

Republic of the Philippines )


City of Malaybalay ) S.S.

BEFORE ME, this _______________ personally appeared the abovenamed persons


with their valid identification, to wit:

VALID ID No. ISSUED BY:


AUTHORIZED REP FOR
DAHILAYAN
XXX

All known to me to be the same persons who executed the foregoing instrument and they
acknowledged to me that the same is their own free act and voluntary deed.

This document, consisting of THREE (3) pages including this page whereon this
acknowledgment is written, has been signed by the parties and their instrumental witnesses on
each and every page and relates to the CONSTRUCTION AGREEMENT.

IN WITNESS WHEREOF, I have hereunto set my hand and seal on the date and place
above written.

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