C O N T R A C T O F S E R V I C E S

PROJECT :
LOCATION :
OWNER/DEVELOPER :
CONSTRUCTION MANAGER :

This AGREEMENT, made and entered into this ____________day of _______________

Two Thousand and _____________________ by and between :

___________________________, a corporation duly organized and existing under and

by virtue of the laws of the Republic of the Philippines, with principal office and
place of
business at __________________________________________________, represented
herein by ____________________________, hereinafter referred to as the OWNER.

- and -

___________________________________, an architectural office duly organized and

existing under and by virtue of the laws of the Republic of the Philippines, with
principal
office and place of business at _______________________________________,
represented in this act by _______________________________, hereinafter referred to
as the CONSTRUCTION MANAGER.

WHEREAS, it is the intention of the Owner and in the best interest of the project
to
secure the professional services of the Architect for the proposed:
_________________,
hereinafter referred to as the PROJECT.

WHEREAS, the realm of the professional services of the Architect shall be based on
the
document published by the United Architects of the Philippines (UAP) Architect’s
National Code : Standards of Professional Practice.

NOW, THEREFORE, the OWNER and the CONSTRUCTION MANAGER, for and in
consideration of the foregoing premises of the covenants, agreement and stipulation
set
forth, do hereby agree as follows:

ARTICLE 1 GENERAL STATEMENT

The OWNER finds it practical and expedient to engaged the ARCHITECT

as Construction Manager on his project.

ARTICLE 2 GENERAL SCOPE OF SERVICES

The general scope of services to be done by the CONSTRUCTION

MANAGER, as herein authorized by the OWNER shall refer to
CONSTRUCTION MANAGEMENT SERVICES for the said project,
guided by the following:
 The Construction Manager’s function is to coordinate, supervise the
method quality of the construction and monitor the cost and time involve
in the project.

The Construction Manager‘s role is to plan, program or schedule

construction activities on various construction activities, and approves
methods and systems of construction and to monitor the overall cost
control of the project.

The Construction Manager provides the additional link and coordinated

efforts between the members of the team, and could eliminate many of the
conflicts and resultant expensive change orders due to misunderstanding
to the contractor and owner, which are prevalent in the traditional
construction procedure or methods.

ARTICLE 3 DETAILED SCOPE OF SERVICES

3.1. PRE-CONSTRUCTION PHASE

As early as possible the Construction Manager shall advise on practical

consequences of construction design options of either the Architect and
the Design Engineers. Review architectural and engineering drawings and
specifications, for the purpose of advising on appropriate alternates,
materials construction systems and the possible design cost implications
of
local availability of materials and labor.

3.1.a Prepare periodic cost evaluations and estimates related to both the
overall
budget and the preliminary allocations of budget to the various systems.
As Construction Manager, he shall advise the Architect / Engineer and
the Owner whenever the refined estimates shows the probability of
exceeding the budget allocation, or whenever the construction time
required for a given system is likely to prolong or delay completion
schedules.

3.1.b With the cooperation of the Architect / Engineer, evaluate the bidder’s
overall PERT/CPM chart as schedule of works based on the time frame.

3.1.c Conduct pre-bid conferences among the Contractors, subcontractors and

manufacturers of systems and subsystems to be sure that all bidders
understand the components of the bidding documents and the management
techniques that will be applied including any computerized
intercommunication, network scheduling and cash control.

3.1.d Review all bids for compliance with stipulated conditions and make
recommendations for awards and may, with the concurrence of Architect,
Engineers and Owner, enter into actual awarding process.

3.2. CONSTRUCTION PHASE

In construction phase, the Construction Manager shall coordinate the

implementation of the Project and provide the following services:
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3.2.a Revise and refine estimates as construction proceeds and, as required, to
incorporate approved changes as they occur. Monitor estimates and
changes so that neither the schedule nor the budget will be exceeded.

3.2.b Monitor each Contractor’s labor and equipment and require all Contractors
that these labor and equipment are adequate for the Project.

3.2.c Monitors the safety programs developed and implemented by each

Contractor especially those safety provisions for the over-all job as
provided by the general requirements of the Project. Make sure that
Contractors’ are fully aware of their responsibilities or liabilities for
safety and/or property damage.
As Construction Manager, however, he maintains overall administrative
and direct supervision over security personnel assigned in the Project.

3.2.d Supervises quality control of work, including but not limited to, testing
and sampling of materials at site, inspection and testing of structural ,
mechanical, electrical, sanitary/ plumbing systems, inspection of
architectural works and finishes, civil works, etc.

3.2.e Maintain records at the Project Site, like records of all contracts, shop
drawings, samples, purchases, subcontractors, materials and equipment
inventory on Project site, applicable codes and standards, daily time
records, progress reports, change orders, accounting records, records of
payments, field logbook, test results, minutes of meetings and other
correspondences, etc. These records shall be made available to the
Architect-Engineer, and the Owner if and when needed or at the time of
the final payment.

3.2.f Keep accurate progress reports during all stages of the construction.

3.2.g Evaluate and process all applications for progress payments.

3.2.h Advise the Owner to obtain from qualified surveyors such data as certified
records of site conditions, elevations, floor levels, etc., as may be
required.

3.2.i Requires Contractors to maintain current set of records, working drawing

and specifications of the Project.

3.2.j Set up joint inspections of the whole project at some specified interval
prior to completion, the inspection to be made by the Construction
Manager in company of the Owner, the Architects and Engineers and other
interested parties. This inspections and the final inspection should be
followed by decisions on the part of all concerned as to the most
economical and/or expeditious way of handling a “Punchlist” of
incomplete and /or faulty works and installations.

3.2.k Review, evaluate and certify payments and acceptance of any and all
completed construction works.

3.2.l Prepares and submit final report to the Owner.

3.3 ITEMS EXCLUDED

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 Excluded in this scope of services are the following: securing building
permits and licenses, liaison with government agencies and public utility
agencies, securing certificate of occupancy, cost of site security,
warehousing and maintenance, cost of advertisements, printing, and
copying, cost of testing materials or completed works, and all other
permits and licenses and government requirements and documents.

ARTICLE 4 LIMITATION OF AUTHORITY

4.1 The Construction Manager shall not provide direct supervisory or direct
instructions on the work of the Contractor that may be construed as
relieving the Contractor of his responsibility as provided for in the
Civil
Code.

4.2 He shall not impose methods, systems of designs that will substantially
impair the original design concept without prior approval of the
Architect
and Design Engineers, if the Owner has already approved such concept.

4.3 He shall not interfere with the Architect’s design if such generates the
necessary environmental and aesthetic quality of the project.

4.4 He shall not make decisions on matters that are the sole responsibility
of
the Architect and/or the Design Engineer.

ARTICLE 5 LEGAL RESPONSIBILITY

The Construction Manager has no legal responsibility insofar as the

design
and construction is concerned. It is still the Architect and Design
Engineers who are responsible for the design, while the Contractor is
solely responsible for his Construction. It is for this reason that the
Construction Manager is not allowed to interfere in the field of design
as
this may be construed as relieving the designers and Contractors of
responsibilities as provided by law

ARTICLE 6 THE OWNER’S RESPONSIBILITIES

6.1 The Owner shall provide full information as to his requirements for the
Project.

6.2 He shall designate ,when necessary, representatives authorized to act in

his
behalf. He shall examine documents submitted for his approval and/or
comment and render decisions pertaining thereto promptly, to avoid
unreasonable delay in the progress of the Project.

6.3 He shall pay for structural, chemical, mechanical, soil mechanics or

other
tests and reports as may be required for the Project.
 6.4 He shall pay for design and consulting services on structural, geodetic,
electrical, mechanical, drainage, and other specialty systems as may be
required for the Project.

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 6.5 He shall pay for such legal, auditing, security and insurance services
and
taxes as may be required for the Project or by the government.

ARTICLE 7 CONSTRUCTION MANAGER’S FEES AND TERMS OF PAYMENT

That the Owner shall agree to pay the Construction Manager for services
rendered, a fee of TWO PERCENT (2.0%) of the Project Construction
Cost, with other payments and reimbursements hereinafter provided, the
said percentage being hereinafter called the Basic Rate. That terms of
payments shall be as follows :

Upon signing of this agreement, a payment of ten percent (10%) of the

Basic Rate, and the remaining balance shall be paid in monthly payments
according to the progress of the works.

ARTICLE 8 PROJECT CONSTRUCTION COST

The cost of the work or the Project Construction Cost as herein referred
to,
means the cost to the Owner of the completed structure or the total site
development costs plus the housing construction cost except the
Construction Manager’s Fees, cost of land, general overhead cost of the
Owner and other non-construction related cost

ARTICLE 9 OTHER PROVISIONS

9.1 Should the OWNER hire separately the services of the Consultant, the fee
of said Consultant shall be on the account of the OWNER and paid
directly by the OWNER. In such a case, the fee of the ARCHITECT for
coordinating the work and relating the work of the Consultant to the
design concept of the ARCHITECT will be 5% of the cost of the work.

9.4 If the work of the Construction Manager is abandoned or suspended, in

whole or in part, the Construction Manager is to be paid by the Owner for
the services rendered corresponding to the fees due at the stage of
suspension or abandonment of the work.

9.5 If portions of the buildings are erected at different periods of time,

thus
increasing the Construction Manager’s construction phase period and
burden of services rendered during the construction phase shall be
doubled. A suspension of construction for a period not exceeding six (6)
months shall not be covered by this provision.

9.6 The Construction Manager’s Fee as stipulated in Section 7 “ Minimum

Basic Fee” is net to the Architect. Any tax that the government may
impose on the Architect as a consequence of the services performed for
the
Project (exclusive of income tax) shall be paid by the Owner.

CHANGES ORDERED BY THE OWNER shall be done in writing and

given to the Construction Manager for appropriate action.
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ARTICLE 10 ARBITRATION

All questions in dispute under this Agreement shall be submitted in

accordance with the provisions of the applicable laws of the Republic
of
the Philippines.

THE PARTIES TO THIS AGREEMENT HEREBY AGREE TO THE FULL

PERFORMANCE OF THE COVENANTS CONTAINED HEREIN AND PRAY FOR
THE GUIDANCE OF THE LORD FOR A SUCCESSFUL COMPLETION OF THE
PROJECT

IN WITNESS WHEREOF, the Parties to this Agreement have on the day and year first
above given, hereunto set their hands at the bottom of this page and on the right-
hand
margin of all the other pages of this Agreement.

By : By :

_____________________ __________________________
Owner Construction Manager

Signed in the presence of :

______________________ _________________________

Republic of the Philippines

City of _______________

Before me, a Notary Public in and for the City of ___________ personally
appeared Mr. __________ with Residence Certificate no. ____________ on _______,
2000 at _______________ City and Architect _________________ with Residence
Certificate no. ________________ issued at __________ City on ________, 2000, both
known to me and to me known to be the same person who executed the foregoing
instrument and acknowledged to me that the same is their free act and deed.

In witness whereof, I have hereunto set my hand and affixed my Notarial seal
this
_______ day of ________ 2000 in the City of __________, Philippines.

________________________
Notary Public