PROJECT / CONSTRUCTION MANAGEMENT CONTRACT

PROJECT : PROPOSED 4-STOREY BUILDING WITH 3-FLOOR BASEMENT

LOCATION :
ARCHITECT :
OWNER :

THIS AGREEMENT, made and entered into this 7th day of AUGUST, TWO THOUSAND AND
FORTEEN by and between ABC DEVELOPMENT, INC. represented by Arch. Juan Dela
Cruz with postal address at Quezon St., San Pedro City, Laguna, the party of the First Part,
hereinafter called the ARCHITECT / GENERAL CONTRACTOR

and

Arch. Pedro Manalo, . with postal address at Lot 4 Block 1, Phase 1, Pacita Complex 1, Binan,
Laguna, the party of the Second Part, hereinafter called the PROJECT / CONSTRUCTION
MANAGER.

WITNESSETH,

that the Architect and the Project / Construction Manager for and in consideration of the
covenants, agreement and stipulation set forth, do hereby agree as follows:

ARTICLE 1. SCOPE OF THE WORK

PROJECT/CONSTRUCTION MANAGEMENT

PRE-CONSTRUCTION PHASE

1. Review and familiarize with the Design Plans and Specifications, Bill of Quantities and
other Contract Documents prepared by Arch. Juan Dela Cruz.

CONSTRUCTION PHASE

1. On behalf of ABC DEVELOPMENT, INC. , undertake monitoring of construction activities and

maintain coordination with Design Consultants

2. On behalf of ABC DEVELOPMENT INC., advise, consult and coordinate with Design
Consultants on all aspects in the implementation of the Project
3. Review and validate the evaluation of all necessary extra works, variation orders or other
negotiated contracts.

4. Participate in jobsite meetings, technical coordination meetings and detailed design

conferences to ensure efficient and orderly progress of work.

5. Review and recommend all kinds of tests, documents, reports and permits as may be
required for the Project.

6. Prepare periodic reports regarding progress of work, problems encountered, construction

force, status of progress accomplishment and other project concerns.

7. Review and validate all progress billings by Contractors and suppliers and recommend for
approval of ABC DEVELOPMENT INC..

8. Conduct jointly with ABC DEVELOPMENT INC. on the necessary inspection to determine the
extent of accomplishment of work being done by the Contractor.

DESCRIPTION OF TASKS :

Quality Control of Works :

a. Ascertains that the Contractors complies with the plans,

specifications and other approved contract documents and
assures that workmanship is in accordance with sound and
accepted construction processes;

b. Assist the Contractors in the interpretation of Contract Documents;

c. Obtain from Design consultants additional details or information if

and when required at the jobsite for proper execution of the work.

d. Conduct on-site observation and check quality of work, materials

and equipment for consistency with the approved Plans and
Contract Documents

e. Notify immediately ABC LMFB DEVELOPMENT INC., if any

material or any portion of the work does not conform to
specifications or if unacceptable in quality.

f. Follow-up and check daily all corrective works being undertaken

g. Insure that all obligations of the Contractor are complied with and
reported to ABC LMFB DEVELOPMENT INC..

h. Inspect safety measures taken by the Contractor;

i. Supervise sampling and testing of materials when necessary

j. Require Contractor to submit Shop Drawings prior to installation of

materials and equipment.

k. Forbid the use of material, tools and equipment or workmanship

which do not conform with the plans and specifications;
 l. Require the removal or repair of defective or faulty construction, or
of construction which could not be inspected, or the construction
of a critical item, expressly identified as such, and which was
performed without inspection;

EVALUATION AND CONSTRUCTION WORKS :

m. Evaluates / reviews the Contractor’s PERT / CPM, Gantt Chart

and Cash Flow for programming, planning and scheduling of all
construction activities and submit assessment.

n. Monitors and evaluates the work of the Contractor as per

approved plans, specifications and work program (PERT/CPM,
Gantt Chart and Cash Flow )

o. Evaluates all requests or proposals for change orders or extra

works which may be submitted by the Contractor and make
recommendations to ABC DEVELOPMENT INC.; and ensure
proper execution of such variation orders.

p. Be alert on various schedules of completion date and on situations

and conditions that may cause delay and make proper
recommendation.

KEEPING OF RECORDS, REPORTS AND CONTRACT DOCUMENTS

q. Keep in the office of the Project Manager , an orderly file of the

following :

q.1 Copy of Contract Agreement

q.2 Copy of Approved Plans and Documents

q.3 Copy of Building Permit and Licenses

r. Make daily inspection report of the following :

r.1 Weather Conditions ( Weather Chart )

r.2 Manpower availability and distribution of skills

r.3 Construction Activities

r.4 Equipment Utilization

r.5 Materials Delivered / Checked

r.6 Correspondence / Memoranda Received

r.7 Correspondence / Memoranda Transmitted

r.8 Agreements / Decisions Make

r.9 Official Visitors

 r.10 Observations / Recommendations

s. Keep on file the following :

s.1 Progress and Accomplishment Report

s.2 Approved Change / Variation Orders

s.3 Shop drawings

LIMITATIONS OF LEGAL RESPONSIBILITY :

1. The PROJECT/ CONSTRUCTION MANAGER may :

a. Be involved indirectly with the work of the Contractors such that it may be
construed that the Contractors is relieved of their responsibility.

b. Recommend methods, systems , material specifications or designs that will

substantially affect the construction schedule and impair the design concept of
the Design Consultants.

2. The Project/ Construction Manager shall directly be responsible to ABC

DEVELOPMENT INC. on all aspects of programming, coordination, quality control of
works and cost control.

ARTICLE 2. THE CONTRACT AMOUNT

2.01 The General Contractor agrees that for and in consideration of the faithful
performance by the Construction of this contract, he shall pay to the PROJECT /
CONSTRUCTION MANAGER a fee, in a manner provided hereinafter, the amount of
TWO MILLION TWO HUNDRED THOUSAND PESOS ONLY. ( P 2,200,000.00 ).

ARTICLE 3. PAYMENTS

3.01 Downpayment of Three Hundred Thousand Pesos ( P 300,000.00 ) .

3.02 Progress Payments shall be based on Project Accomplishment or as agreed by

parties.

3.03 Full and Final Payment shall be made upon completion of the Project and Turn over
of all pertinent documents stipulated in this Contract.
The parties to this agreement hereby agree to full performance of the covenants contained
herein.

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 left-hand margin of all
other pages of this Agreement.

BY: __________________________________ ___________________________________

Arch. Juan Dela Cruz Arch. Pedro Manalo.

SIGNED IN THE PRESENCE OF

_____________________________________ ____________________________________

____________________________________ ___________________________________