CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Construction Agreement made and entered into this ____ day of _____ 2022
at City of Digos, Davao del Sur, Philippines, by and between:

FAITH D. FLORES, of legal age, Filipino citizen, with resident and postal
address at Lim Extension, Digos City, Davao del Sur, Philippines, herein referred to as
the “OWNER”;
-and-

JIMMY B. LAZAN, of legal age, Filipino, with resident and postal address at
Lapu-lapu Extension, Digos City, Davao del Sur, Philippines, hereinafter referred to as
the “CONTRACTOR”.

WITNESSETH:-

WHEREAS, the OWNER, shall construct One-storey Residential Building

with Front Fence located in 1958 Lim Extension, Brgy. Zone 3, Digos City, the same to
be funded by a housing loan from a funding agency;

WHEREAS, the CONTRACTOR, presented and warranted to the OWNER that

is capable, competent and duly Registered Engineer and authorized by the law to
construct and complete the aforementioned Residential Building with accordance with
the plans and specifications.

Owner and Contractor hereby agree as follows:

I. DESIGN AND CONTRACT DOCUMENTS

All changes in the Design and Contract Documents shall be subject to the
following conditions:

(a) The parties on this Agreement shall first conduct a consultation to

mutually discuss and agree upon the changes proposed by any of the
parties hereto;

(b) The CONTRACTOR shall affix the signature of its duly authorized
Engineer on the As-built Plans.

II. SCOPE OF WORK

The CONTRACTOR shall implement the Construction of One-storey

Residential Building with Front Fence, subject to the aforementioned
consultation above.

The CONTRACTOR shall:

(a) Furnish all labor, materials, tools and equipments, technical knowhow and
supervision therein;

(b) Disclose the materials to be used for construction to the OWNER;

(c) Prepare the Progress Billing in accordance with Bill of Materials

submitted to the funding agency; and

(d) Perform all the works stipulated and required under this Agreement.

III. TERMS OF PAYMENT

 Payment for this Contract shall be based on the following:

(a) Down Payment- Thirty Percent (30%) of the Total Contract Price;

(b) Progress Billings- based on the payment scheme of funding agency (30%
each for the 2nd and 3rd installment); and

(c) Retention- Five Percent (5%) of the Total Contract Price to be released
upon Turn-over to the Owners.

IV. EXCLUSIONS

The OWNERS-supplied materials such as Lighting Fixtures, Air Conditioning

Units, Water Tank, WI-FI, CCTV, Cable TV, Furnitures and Cabinets and the
like are excluded from the obligations of the CONTRACTOR under this
agreement.

Provided, that the CONTRACTOR shall furnish basic lightings (LED Pin
Lights) and built- in cabinets for the Master’s Bedroom and Comfort Room as
per agreed. Provided further, that the CONTRACTOR shall likewise construct
a front perimeter fence with sliding gate.

All items and/or materials which are not indicated in the Design, Drawing
Plans, or Contract Documents and which are not discussed, approved and
signed by the parties to this Agreement shall be excluded from their respective
obligations.

V. CONTRACT AMOUNT

The CONTRACT Amount shall be Three Million and Three Hundred

Pesos (₱ 3,300,000.00).

The OWNERS shall pay the CONTRACTOR for the entire performance and
supply of the works, labor, services, materials, machinery and equipment
stipulated in this agreement in accordance with the agreed schedule of
payment.

The OWNERS shall not incur any expenses above and beyond the
aforementioned agreed contract amount, except for the additional or extra
works or changes that may be required and authorized by the OWNERS and
consented to in writing by the CONTRACTOR through a variation order.

VI. DEFECTIVE WORKS AND MATERIALS

All defective works discovered by the OWNERS in the course of the

construction until the date of occupancy shall be promptly made good,
repaired, remedied, restored, corrected and rectified by the CONTRACTOR at
its expense.

VII. CHANGES AND ADDITIONS

In the event additional or revised works not shown or indicated in the

approved Design and Contract Documents are required or ordered by the
OWNERS, such additional or revised works required or ordered by the
OWNER shall incur additional expense as per agreement of the parties.

The change orders shall indicate any all agreed TIME EXTENSIONS that the
additional or revised works would entail.
 VIII. TIME OF COMPLETION
The CONTRACTOR warrants that the construction of the subject Project
shall be completed within six (6) months on working days excluding Sundays
& Holidays, counted (a) from the date of the issuance of the Building Permit
and other Related Licenses or (b) from the date the Site is ready for
construction as mutually determined by the parties—whichever comes later.

IN WITNESS WHEREOF, the parties hereto have hereunto signed this

Construction Agreement on the date and at the place first above written.

FAITH D. FLORES JIMMY B. LAZAN, C.E., G.E.

Owner Contractor

SIGNED IN THE PRESENCE OF:

__________________ _____________________
 ACKNOWLEDGEMENT

Republic of the Philippines)

Digos City ) SS.

BEFORE ME, a Notary Public for and in the City of Digos, Davao del Sur,
Philippines, this ____ day of _______ 2022, personally executed:

Name Government I.D. Date/Place Issued

FAITH D. FLORES ___________________ _________________

JIMMY B. LAZAN ___________________ _________________

known to me and to me known to be the same persons who executed the foregoing
instrument and each acknowledged the same as their own free and voluntary act and
deeds.

I FURTHER CERTIFY that this instrument consists of three (3) pages including
this page where the Acknowledgement is written, is signed by the parties and their
instrumental witnesses on the appropriate space provided above and on the left-hand
margins of all the other pages, and is a Construction Agreement located at Digos City,
Davao del Sur.

WITNESS MY HAND AND NOTARIAL SEAL.

NOTARY PUBLIC

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2022.