CONSTRUCTION CONTRACT

This agreement made this _______ day ________________, 2021 at ___________________,

Philippines, by and between:

ATTY. RAQUEL SIRIOS PAYTE, with residential address at Naga City. hereinafter referred
as the “OWNER”.

AND

CROSS AXIS ENGINEERING SERVICES & CONTRUCTION, operating under the laws of the
Philippines, with office address at 2nd Floor Magistrado-Estrada Building, Highway 1, San Miguel,
Iriga City, represented herein by its Proprietor, ENGR. BARTOLOME I. LUCEÑA JR, hereinafter
referred as the “CONTRACTOR”.

WITNESSETH: That

WHEREAS, the OWNER decided to undertake the project, TWO STOREY COMMERCIAL
BUILDING” located at San Roque, Iriga City, hereinafter referred to as the “PROJECT”;

NOW THEREFORE, for and in consideration of the foregoing premises, the parties hereto
agree as follows:

ARTICLE I
CONTRACT DOCUMENTS

The following documents shall be deemed to form and be interpreted and construed
as part of this Agreement:

1. Design and Construction Agreement Contract

2. Detailed Architectural and Engineering (A&E) Design of the PROJECT
a. Architectural Plan
b. Structural Plan
c. Plumbing Plan
d. Electrical Plan
e. Mechanical Plan
f. Electronics Plan
3. Bill of Materials and Cost Estimate
4. Construction Schedule/Plans and Phases and Timeline of the completion of the
PROJECT

ARTICLE II
SCOPE OF WORK

The scope of work to be done by the Contractor, as herein authorized by the Owner
for the subject Project herein referred to, consists of professional services for the following;

1. The CONTRACTOR shall undertake the Project under the following work description;

a. SITE WORKS – this section includes the complete clearing of site;

demolition of existing structures; disposal of demolished and
excavated materials and debris; and construction of temporary site
office, barracks and storage.
 b. EARTHWORKS – this section includes excavation of foundation;
backfilling, embankment, spreading and compaction of backfill
materials.
c. CONCRETE WORKS – this section includes the construction of all
structural components of building such as; foundation, tie beams,
columns, beams, floor Plumbing and roof slabs, slab on fill and stairs.
d. MASONRY WORKS – this section includes the laying of interior and
exterior wall by concrete hollow blocks with cement plaster finish.
e. ELECTRICAL WORKS – this section includes the rough-in installation of
electrical conduits only such as; pipes, junction and utility box and
panel boards.
f. PLUMBING WORKS – this section includes the rough-in installation of
plumbing conduits only, such as; water line pipe and sanitary line
pipes and including septic tank.
g. FIRE SUPPRESSION SYSTEM - this section includes the complete
installation of dry stand pipe and fire hose cabinets and FDAS (Fire
Detection and Alarm System).

2. The CONTRACTOR, at its own expense, be responsible for the unloading, unpacking
and inspection of all materials, and equipment delivered to the project site, and shall
also be responsible for the storage, control, transportation, safe keeping and any other
necessary arrangement for such materials and equipment within the project site.

3. The CONTRACTOR shall ensure adequate protection at all times of all materials,
machinery and equipment in the construction site against damage, robbery and
pilferage and responsible for the any damage or loss.

4. The CONTRACTOR, shall supervise the day to day activity of the Project, and ensure
that the Project is in accordance with the approve General Building Plan.

ARTICLE III
THE CONTRACT PRICE

The OWNER, for and in consideration of the fulfilment of this contract by the
CONTRACTOR, in accordance with the provisions of the contract documents shall pay to the
CONTRACTOR, to wit:

No. Description Labor Cost

1. Site Works Php 213,000.00
2. Earthworks 128,750.00
3. Concrete Works 867.872.50
4. Masonry Works 194,887.50
5. Electrical Works 43,897.50
6. Plumbing Works 65,040.40
7. Fire Suppression System 57,975.00

TOTAL LABOR COST Php 1,571,422.90

 1. It is expressly agreed by both parties that no change shall be made in the above-
mentioned contract amount as a result of any fluctuation in the cost of materials
and/or labor.

2. The CONTRACTOR shall furnish all the labor, tools and equipment, technical know-how
and supervision therein.

3. The OWNER shall supply all the materials required for the construction.

4. Should the OWNER required the CONTRUCTOR to perform work over and above that
required by this AGREEMENT the additional cost shall be added to the Contract
Amount and likewise, should be ordered to omit work as required by this AGREEMENT,
the cost of work omitted shall be deducted from the Contract Amount. In either case,
the cost of additions or reductions shall previously be mutually agreed upon in writing
by both OWNER and CONTRACTOR.

ARTICLE IV
TERMS OF PAYMENT

The OWNER for and in consideration of the faithful and satisfactory fulfilment of the
contract by the CONTRACTOR in accordance with the terms and conditions of all contact
documents and subject to the deduction herein provided, shall pay to the CONTRACTOR in
Philippine Currency as follows:

1. The payment for Labor Contract of the project shall be released in trenches. An
advance payment (mobilization) equivalent to twenty percent (20%) of the total
contract cost shall be released upon signing this contract.

2. The remaining balance of the project cost shall be released to the CONTRACTOR
based on progress of the work vis-à-vis the agreed Labor Contract.

ARTICLE V
WARRANTIES AND RESPONSIBILITIES OF THE CONTRACOR

1. The CONTRACTOR shall take all precautionary measures to ensure the safety and
convenience of the workers and the general public, and to take all appropriate steps
to prevent damage or injury to persons or property in or about or adjacent to the
premises where the work is being performed.

2. The CONTRACTOR shall be considered as an independent CONTACTOR and as such,

he assumes all obligations and liabilities arising out of the Employee’s Liability Act and
any other laws existing and those enacted thereafter that may affect the rights of the
employees or laborers employed in the performance of this contract. Should the
OWNER be made liable for any of the CONTRACTOR’s violation of any labor laws, the
CONTRACTOR shall reimburse the OWNER for whatever amount the latter is required to
pay to said laborers.

3. The OWNER shall be responsible for the supplies of all materials required for the
construction and be delivered on site, upon request of the CONTRACTOR. The
CONTRACTOR shall notify the OWNER three (3) to five (5) days for the request of
required materials.

4. The OWNER shall promptly notify the CONTRACTOR in writing of any claims arising under
this warranty. Upon receipt of such notice, the CONTRACTOR shall, within three (3)
calendar days’ period and with all reasonable speed, repair or replace the defective
materials, tools, equipment and other facilities or parts thereof, without
 ARTICLE V
TIME OF COMPLETION

The CONTRACTOR shall perform and complete the PROJECT to the satisfaction of the
OWNER within 5 MONTHS (Approximately 130 Working Days), (including SATURDAYS), from
release of the advance payment. In relation thereto, the CONTRACTOR shall commence the
work on weekdays at around eight o’clock in the morning (8:00 AM) until five o’clock (5:00
PM) in the afternoon. During Saturdays, they may work for the entire day. The workers shall
at all times clean the project site after finishing their work.

IN WITNESS WHEREOF, the parties to this Contract have on the day in the first above
given, hereunto set their hands and seals at the bottom of page and on the left hand margin
of all other pages of this agreement.

ATTY. RAQUEL SIRIOS PAYTE ENGR. BARTOLOME I. LUCEÑA JR.

Owner Contractor

Signed in the Presence: