CONTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT made and executed this day of 2022 in

by and between:

______________________ of legal age, married and with postal address at VANITY K

SPA 026 ANNEX2 LGF SM CITY FAIRVIEW, QUEZON CITY hereinafter referred to as the “OWNER”:

-and-

________________________ herein after referred to as the “CONTRACTOR”,

with postal address at ;

-WITNESSETH-
WHEREAS, the OWNERS, need the services of an independent contractor who
will furnish the labor and materials for the continuation of construction of Commercial
spacs at at _________________________ FAIRVIEW, QUEZON CITY and hereinafter referred
to as the “works”;

WHEREAS, the CONTRACTOR presented and warranted to the OWNERS that

they are capable, competent, and duly registered firm and authorized by law to
construct and to complete the aforementioned project in accordance with the plans and
specifications hereinafter referred to as Design and Contract Documents;

WHEREAS, on the basis of the foregoing representation and warranty of the

CONTRACTOR, the OWNER accepted the offer of the CONTRACTOR to construct the
above-mentioned building;

NOW, THEREFORE, for an in consideration of the foregoing premises and the

covenant and undertakings hereinafter set forth, the parties hereto agree as follows:

ARTICLE I

CONTRACT DOCUMENTS

1. The main contract documents which are hereto incorporated and made an
integral of this CONSTRUCTION AGREEMENT shall consist the following:
1.a Scope and Items of Work indicated on the Bill Quantities (Annex “A”);
1.b As per agreed scope of works only;
1.c Plans and specification and alternative specifications as per agreement
with the “OWNERS”;
1.d. The documents which hereinafter may be mutually agreed upon between
the OWNER and CONTRACTOR, and duly signed by them, whether prepared
before or after the signing of the main contract documents shall likewise form
part of the Contract Documents.

ARTICLE II

SCOPE OF WORKS
The scope of works to be performed by the CONTRACTOR for the OWNERS
under this agreement shall be in accordance with the construction schedule (Annex
“B”) and as provided by the plans and specification duly accepted and approved by the
OWNERS including but not limited to the following:
2.1 Furnish all labor, materials, tools and equipment, including technical
knowledge therein to undertake the agreed works;
2.2 Management and supervision of the WORKS and satisfactory completion of
the same to the best ability of the CONTRACTOR and within the agreed
period;
2.3 Documentation of the accomplished works;
2.4 The following are specifically excluded in the scope of works:
1. LIGHT FIXTURES EXCEPT SWITCHES AND OUTLET
2. PLUMBING FIXTURES EXCEPT FAUCET AND SHOWER HEAD
3. AIRCON FIXTURES OWNER PROVIDE VENTS ,
CONTRACTOR OBLIGATION IS TO DUCT THE AIRCON VENTS
4. FIRE PROTECTION FIXTURES

ARTICLE III

PROJECT COST AND MANNER OF PAYMENT

1. That the parties hereby agrees that the total contract price for the remaining
contract of works shall be EIGHT HUNDRED THOUSAND PESOS
(PHP 800,000.00);

2. That upon signing of this Agreement, the OWNERS shall give an advance
payment equivalent to thirty percent 20 %) of the total Contract price or in the
amount of ONE HUNDRED SIXTY THOUSAND PESOS (PHP 160,000.00) ONLY, which
shall serve as down payment/mobilization fund of the project;

3. The remaining EIGHTY (80) percent of the total contract price shall be paid
on a Progress billing basis or as per work accomplishment submitted by the
CONTRACTOR;

4. The progress billing shall be calculated on the basis of works measured which
is subject to the approval of the OWNERS;

5. Payment of progress billing to the CONTRACTOR will be carried out after

issuance of an invoice to the OWNER based on the progress report that
coincides with the Construction schedule/Gantt chart. Approval of the
progress billing and after deduction of any amount due as stated in the
contract shall be paid as follows:

1st progress billing payment- 20% of the contract price or in the amount of ONE
HUNDRED SIXTY THOUSAND PESOS (PHP 160,000.00) ONLY

2nd progress billing payment- 20% of the contract price or in the amount of
ONE HUNDRED SIXTY THOUSAND PESOS (PHP 160,000.00) ONLY

3rd progress
billing payment- 20% of the contract price or in the amount of
ONE HUNDRED SIXTY THOUSAND PESOS (PHP 160,000.00) ONLY

4tg progress
billing payment- 10% of the contract price or in the amount of
EIGHTY THOUSAND PESOS (PHP 80,000.00) ONLY

4tg progress
billing payment- 10% of the contract price or in the amount of
EIGHTY THOUSAND PESOS (PHP 80,000.00) ONLY

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 of the retention fee after the lapsed of the six (6) months from the date of
acceptance of the project;

6. That in case of delay in releasing the retention money, a six percent (6%)
interest shall be imposed in every month of delay until it is finally settled;

7. That in cases of any additional or extra work, the same must be put in writing
and the expenses to be incurred shall not be included in the total contract price
agreed upon during the signing of this contract and shall be paid by the owner
within five (5) days upon completion of the additional work or may be included
as additional work in progress billing;

8. The OWNER shall pay the CONTRACTOR within five (5) working days from
receipt and approval of the Progress Billing Report.

ARTICLE IV

COMMENCEMENT AND COMPLETION OF THE PROJECT

1. The work to be performed under this contract shall commence upon receipt of
Notice to Proceed or on February 2021;
2. That the CONTRACTOR shall complete the works within Thirty (30) working
days from receipt of Notice to Proceed, unless there are reasonable delays which
requires extension of time to complete the project;
3. Reasonable delays must be indicated in the progress billing reports or a request
of extension of time will be sent by the CONTRACTOR to the OWNER stating
therein the reason of the delay and the required additional time;
4. The following are considered causes of reasonable delays;

FORCE MAJEURE or ACTS OF GOD such as bad weather condition, typhoon,

earthquake, floods, war, pandemic, and any other causes which are beyond the
control of the CONTRACTOR;

SUSPENSION OR STOPPAGE ordered by the OWNER or its authorized

representative other than reasons attributable to the CONTRACTOR;

UNREASONABLE REFUSAL OF THE OWNER TO SETTLE MONTHLY

PROGRESS BILLINGS OR EXPENSES FOR ADDITIONAL WORKS

In any of the foregoing cases, the period of completion may be extended for such
time as will compensate for the time lost due to the aforesaid causes.
5. The CONTRACTOR shall pay the OWNER liquidated damages not by way of
penalty, an amount of one-tenth (1/10) of one percent of the cost of
unperformed portion of the works for every day of unreasonable delay

6. After the completion of the project, the CONTRACTOR and the OWNER or
his/her authorized representative shall certify after inspection and recommend
the final acceptance thereof. The CONTRACTOR shall issue a Certificate of
Completion of Work and Warranty to the OWNERS upon turn-over of the
project, and the OWNERS shall submit Occupancy Permit for the project.

7. The said Certificate shall grant the OWNERS TWELVE (12) MONTHS warranty
for all the scope of works under the contract. The limited warranty excludes the
wear and tear condition, improper usage and materials failure due to
deficiency.

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 ARTICLE V
OBLIGATION OF THE OWNER

That OWNER agrees to provide an adequate space for the CONTRACTOR’s

temporary office warehouse and parking space for its service equipment and vehicles
under terms and conditions of the owner of the lot;

That the OWNERS agrees to pay for the water and electric bill;

The OWNER agrees to pay the CONTRACTOR on time and without

unreasonable delay and shall be liable to 6% monthly interest for unsettled monthly
progress billings;

ARTICLE VI
REVISION/ CHANGES IN DESIGN AND CONTRACT DOCUMENTS

Any part of the Design and Contract Documents may be changed by the parties
to this Agreement to improve, preserve and protect the beauty and strength of the
structure.
However, all deviations/ changes in the Design and Contract Documents shall be
subject to the following conditions:
(a) The parties to this Agreement shall first conduct a personal conference and
consultation to mutually discuss and agree upon the changes proposed by any
of the parties hereto;
(b) The CONTRACTOR shall affix his signature on the As-Built Plans and
(c) The said changes shall be approved in writing by the OWNERS prior the
implementation thereof by the ARCHITECT/CONTRACTOR;
(d) The expenses incurred shall be determined in accordance with the agreed Bill
of Quantity and may or may not result in the upward or downward adjustments
of the agreed Contract Price stipulated in Article II of this Agreement.

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 shall be excluded from their respective obligations.

ARTICLE VII

ADDITIONAL WORK
In the event additional or extra works not shown or indicated in the approved
Design and Contract Documents are required or ordered by the OWNERS, such
additional or extra works required or ordered by the OWNERS shall be communicated
in writing by the OWNERS to the CONTRACTOR through written change orders or
memoranda for mutual discussion, approval and documentation and signing thereof by
the parties to this Agreement.
All mutually discussed, approved, documented and signed change orders or
memoranda, including any and all deletions and omissions, shall state the AGREED
COSTS of the additional, revised, deleted or omitted works. It shall also state the
required time for the completion of work.
Such agreed costs shall not result in the upward or downward adjustments of
the agreed Contract Price stipulated in Article II of this Agreement. It shall be excluded
in the contract price and shall be paid by the OWNER within seven (7) days from
completion of the additional work.
No change orders or memoranda shall be implemented without the prior mutual
discussion, approval and signature by and between the parties.

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 ARTICLE VIII

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 within seven (7) days from
such discovery or within such reasonable period as may be mutually agreed upon by
the parties, at the option of the OWNERS.
All unsuitable, sub-standard, and poor-quality construction materials and works
shall be rejected by the OWNERS and the CONTRACTOR and shall be promptly made
good, remedied, corrected, rectified, and replaced by the CONTRACTOR at its
expense, notwithstanding that such works and materials were overlooked by the
OWNERS.
If the work or any part thereof shall be found to be not in conformity with
the agreed specifications, the CONTRACTOR shall forthwith remove and replace such
materials to comply with the agreed specifications.

ARTICLE IX

SAFEGUARDS/WARRANTIES OF THE CONTRACTOR

All materials and workmanship are guaranteed by the CONTRACTOR for a

period of one (1) month from the date of the turn-over of the construction project.
The CONTRACTOR hereby guarantees and warrants the structural stability,
strength and integrity of the building within the period mandated by the Civil Code of
the Philippines and other applicable building laws, rules and regulations.
The CONTRACTOR shall complete the WORKS strictly in accordance with the
CONTRACT DOCUMENTS;
The CONTRACTOR is an independent entity and not an employee of the
OWNER. Neither shall the personnel of the CONTRACTOR be deemed as employees of
the OWNER. Hence, the CONTRACTOR shall be solely responsible for and shall
exclusively bear any and all costs and expenses caused by any and all claims, losses,
damages, accidents, torts, wrongful acts, crimes or felonies, deaths, injuries, and fire
sustained by his laborers or workers, staff, personnel, representatives and agents
and/or by any and all Third Parties and Entities arising from or in connection with the
execution of the works and services stipulated in this Agreement.
The CONTRACTOR shall provide safeguards, facilities, equipment and personnel
for the full protection and safety of the construction site and its entire premises and the
safety and protection of the general public, pursuant to the standard and/or acceptable
norms and practices in the Construction Industry and/or as may be mandated by
applicable laws, rules and regulations.
IN WITNESS WHEREOF, we have hereunder signed our names, this day
of , 20 at , Philippines.

SIGNED IN THE PRESENCE OF:

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

QUEZON CITY) S.S.

BEFORE ME, a notary public for and in this day

of personally came and appeared: known to me and to me known to be
the same persons who executed the foregoing instrument which consist of
pages, including this page, acknowledged before me as their free and voluntary act and
deed.

WITNESS MY HAND AND SEAL this day of 2022.

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