CONSTRUCTION AGREEMENT

This agreement made and executed on this day _____________ of ________, 20_____ at
_________________.

Mr. Klien Zyrus De Jesus, Single, of legal age, Filipino citizens, with resident address at Brgy. # 20
Laoag City, Ilocos Norte, hereinafter, referred to as the OWNER;

-and-

Regie Sampayan Pardo, single, of legal age, with resident address at Brgy 36 Araniw Laoag City,
Ilocos Norte, hereinafter referred to as the CONTRACTOR;

WITNESSETH THAT:

1. For and consideration of the sum of 0ne Million five hundred Pesos (P1,500,000.00) which the
OWNER agrees to pay unto the CONTRACTOR and the CONTRACTOR agrees and undertakes to
construct a Two-storey-residential bldg. partially. Consisting of a living area, dining area, kitchen
and toilet&bath at the first floor and (2) two bedroom and toilet&bath at the 2nd floor, but it will be
completed as rough finished only. The first floor will be with hollow-block-partition only and inside
the two bedroom at 2nd floor and at the front view of the bldg. has a plaster finished only, for the
labor and materials, in accordance with approved plan and specification submitted by the owner
and conformed to by the CONTRACTOR and the attached building accessories and miscellaneous
specifications and conditions.
* excluding the payments to be used in acquiring of bldg. Permit such as; drawings, printing
of sheets, electrical, structural, sanitary, fire, and city engineering requirements
2. The owner shall pay the CONTRACTOR a thirty percent (35%) down payment equivalent to FIVE
HUNDRED TWENTY-FIVE THOUSAND PESOS (PHP 525,000.00) upon the signing of contract; 2ND
BILLING is @ 35 % AND 3RD BILLING will be @ 28%.
3. The balance of NINE HUNDRED SEVENTY-FIVE THOUSAND PESOS (Php 975,000.00) shall be paid by
the owner in accordance with Progress Billings which shall be receipt of each and every progress
billings subject to the owner verification and evaluation of the construction work accomplished by
the contractor;
4. The owner shall require a two percent (2%) retention on the Contract price and the contractor
agrees to the same. The above mentioned amount to be retained equivalent to thirty thousand
pesos (P30,000.00) shall be deducted from the progress billings of the contractor. Said retained
amount shall answer for liquidated damages and other claims by the owners and shall be remitted
and paid to the contractor, in the absence of such claim, from the turnover by the contractor and
written acceptance by the owners of structures subject of this contract.
5. The Contractor shall complete the consideration of structures and turn-over the same to the owner
not later than Jan 08, 2022. Working days shall be from Monday to Saturday of each week.
Depending on the weather condition within the area of construction.
6. In the event the Contractor shall fail to complete and turnover the structures to the satisfaction of
the owners by Jan 08, 2022, the Contractor shall pay to the Owners liquidated damages in the
amount of 1/10 of 1% per month until such time that the structures are turned over to the
OWNERS to their full satisfaction.
7. The Contractor shall have the following duties and responsibilities in connection with the project:
a. Responsibility for Supervision of Construction. The Contractor shall be solely responsible
for all construction under this Contract, including the technique, sequence, procedures and
means and coordination of all works. He shall supervise and direct the work to the best of
his ability and give all attention necessary for such proper supervision and direction.
b. Discipline and Employment. The contractor shall maintain at all times strict discipline
among his workers/employees, and he agrees not to employ for work on the project any
person unfit or without sufficient skills to perform the job for which he was
assigned/employed.
c. Furnishing of Labor, materials, etc. The Contractor shall provide and pay for all labor,
materials, equipment, including tools and construction equipment, machinery, utilities,
including transportation and all other facilities and services necessary for the proper
completion of work of the project in accordance with the Construction documents except
water supply connection and those item which are excluded in the original quotation and
Owner supplied materials,
d. Compliance with Construction Laws and Regulations. The Contractor shall comply with all
laws and ordinances, rules and regulations and orders of all public authorities in relation to
the performance of the work herein. If any of the contract documents are at variance
therewith, he shall notify the owner promptly on discovery of such variance.
e. Responsibility for negligence of workers/employees and sub- contractor.
The Contractor shall assume full responsibility for acts, negligence or omission of all his
workers/employees on the project, for those of his sub-contractor and their employees, and
for those of all other persons doing work under this contract within.
f. Warranty of Fitness of equipment and Materials. The Contractor represents and warranty
to OWNER for one(1) year that all equipment and materials used in the work and made a
part of the structures thereon, or placed permanently in connection therewith will be new
otherwise, specified in the Contract documents, of good quality, free of defects and in
conformity with the Contract documents. It is understood between the parties hereto that
all equipment and materials are so in conformity and not defective.
g. Furnishing of samples and shop drawing. The Contractor agrees to furnish to Owner all
samples and shop drawing for his consideration and approval as to conformance with the
specifications of the contract documents.
h. Clean Up. The Contractor agrees to keep the work premises and adjoining ways free of
waste materials and rubbish caused by his work. He agrees to remove all such waste on
termination of the project, together with hisbe for the tools, equipment, machinery and
surplus materials. He agrees on termination of his work on the site, to conduct general
clean-up operation, including the cleaning of all glass surface, pave street and walls.
i. Safety Precautions and Programs. The contractor has the duty of providing for and
overseeing all safety orders, precautions and programs necessary to the reasonable safety
of the works.
j. Warranty of works: The contractor is committed to the Owner One (1) year warranty from
date of House Acceptance but limited as follows:
a. Structural damages such as cracks
b. Electrical malfunction
c. Water Leak from pipeline and roofing
 All defects cause by mishandling, carelessness, as well as paint maintenance shall be for the
account of the OWNER.

IN WITNESS WHEREOF, the parties have hereunto signed this ______ day of ______________

2022 in _______________________ Philippines.

Signed in Laoag City, Ilocos Norte, this _______ day of September 2022.

_____________________________________ ____________________________________

Mr. Klien Zyrus De Jesus Regie S. Pardo

Owners Contractor

Witness/es:

__________________________________ ___________________________________
 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

PROVINCE OF ILOCOS NORTE ) SS

MUNICIPALITY OF LAOAG )

BEFORE ME, a NOTARY public for and in the ________________________, this ___day of

September 2022 appeared the following with their respective community tax certificates:

NAME COMPETENT EVIDENCE DATE ISSUED

REGIE S. PARDO

KLIEN ZYRUS DE JESUS

Known to me to be the same persons who executed the foregoing Construction Agreement and
acknowledged to me that the same is their free and voluntary act and deed of the corporation which
they respectively represent.

WITNESS MY HAND AND SEAL on the date and place first above written.

NOTARY PUBLIC