HOLY ANGEL UNIVERSITY

Angeles City, 2009, PH

COLLEGE OF ENGINEERING AND ARCHITECTURE

TASK 3
(S.Y. 2018 – 2019 1st Semester)

Prepared by:
GROUP MOMOLANG
Dizon, Ma. Analy
Marquez, Jomer
Ocampo, Christine Mae
Palomaria, Justine Lendl
Soliman, Carlo Javier

CE-502

Instructor:
Engr. Alvin John Romero

July 26, 2018

Task 3
CONTRACTS:

1. Ask and have a copy of a contract sample from the site or any source.
Note: The copy of the contract is at the last page.

2. What kind of contract

Site: Two-Storey Residential Building
Location: St. Jude Village, San Fernando, Pampanga
Type of Contract: Unit Price

3. Make a table of Pros and Cons of Lump Sum into Unit Price.

A. Lump sum

The advantages of a lump sum contract include:

 Lump sum contracts can be seen to reduce client risk as the price is fixed (although in
reality it is still likely to vary, but not by as much as some other forms of contracting).
 It is widely accepted and understood as a method of contracting.
 The bidding analysis and selection process is relatively straight-forward.
 The greater degree of certainty on the part of the client can make it simpler and easier to
secure a construction loan.
 Change orders are minimised.
 The management required by the client is reduced.
 There can under certain circumstances be a greater margin for profit for the contractor.
 Lump sum payments are made in regular, predictable instalments, providing
the contractorwith a reliable and stable cash flow and making financing simpler for
the client.

Disadvantages include:
 It can give greater risk to the contractor than some other contract forms, as there are
fewer mechanisms available for them to vary their price.
 As a result of the additional risks faced by the contractor, they may increase
their tenderprice.
 Careful documentation and record keeping of change orders is required, which can be
time-intensive.
 Preparing the tender may be more expensive for the contractor.
 As a result, there may be a slower tender process than for other contract forms.
 Progress may be slower as the design will generally need to be completed before the
works begin.
  The employer may have to pay a higher price for any alteration or additions that are
required that are beyond the scope of the contract.
 It can be seen as a more adversarial form of contracting than some more collaborative
forms.
 Disputes can arise relating to change orders, scope and design changes, and so on.
Ref: https://www.designingbuildings.co.uk/wiki/Lump_sum_contract_-_pros_and_cons

B. Unit price

A d v a n t a ge s :
 Well-suited for repetitive and well-defined tasks.

Disadvantages:
1. Not particularly useful for most private building projects, except as part of a lump sum
or cost plus contract, applied to select components of work items such as dirt removal
or fill, finish hardware, etc.

4. Problems encountered during contracts and awarding.

Sa contract kasi, sa ginagamit namin nakaindicate na lahat dun kasi. Sa contract kasama na
yung mga specs. Nagkakaproblema lang cguro, pero di pa siguro namin naeecounter sa materials,
baka yung ginamit na materials is wala dun sa contract ganun or baka meron kang di ginawa na
nasa contract. Siguro yung mga ganun lang. Usually naman kasi before mong pirmahan yung
contract. Chinecheck ng owner at contactor kasi nga para walang maging problema during
construction. Isa pa pala sa ganyan sa mga contract na yan is pag humalo na yung home owners.
Halimbawa may usapan kayo ni owner, okay sa inyo tapos di pala naconsult kay subdivion yun o
kaya kahit minsan may rules yung subbdivision at yung homeowners may iba din silang rules
kagaya nga ng sinabi ko sa dizon estate namin ngayon. Paiba iba yung sinasabi nila, kaya alam
naming may binayaran na kami ng ganito pag dati naming dyan di pa pala kami bayad yung mga
ganun. Yung lang na di alam ng owner yung kasi nga kasi hindi kasama sa usapan. Kaya additional
yun.

5. Problems encountered during billing or payments (Client to owner or vice versa)

Sa government medyo critical, kasi medyo madaming process. Dadaan pa kay ganito, dadaan
pa kay ganyan, checheck pa nung ah parang engineer nila kng ok na yung project before marelease
yung billing nyo. Sa mga private, sa ganito ok naman sila. Basta ok na yung parang percentage ng
contract namin. Minsan 10, minsan naman 25, minsan 30, minsan50 lang ganun. Tapos every time
na magchecheck yung kung sino man magchecheck sa mga representative ng mga owner ganun
na lang bibigay nila o kaya direct sa bank, ichecheke nila, sa prvate walang masyadong problema.
BIDDING:

1. Ask the engineer or architect about bidding process

Kapag kasi kami yung magbibid, ah sa private parang wala pa akong na encounter na ganyan,
usually kunwari ikaw may kakilalang kang contractor, sa kanya ka na mismo magpapagawa.
Usually sa government may binibigay silang bid docs. If familiar kayo dun. Halimbawa, may
construction ng 2 storey 4 room na school building. Pag sumali ka sa kanila dadaan muna ng
philjeb kung government noh. Tapos dadaan pa ng DepEd bibili kayo ng bid docs, tapos checheck
nyo lahat dun kung ano mga rules na nakaindicate dun, approved budget bidding ng sinasalihan
mong bidding tapos kayo magbibid ng sarili nyo.

2. Problems encountered during bidding process.

Usually documents din yan, sa private wala naman. Sa government minsan paiba iba yung
mga requirements. Nadidisqualified din dahil sa documents.

3. Define the following:

A. Change order - Addition. Nagiba sa plano.

B. Liquidated damage - Yung mga contingency, minsan sa mga plano merong
contingency, percentage lang
C. Punch list - Private and government yan. Before ma release yung final payment
titignan muna nila yung structure. Di nila rerelease ung payment hanggang di
nagagawa yun.

What have you learned from the previous site inspection/visit? Enumerate some realizations.
 There’s a big difference between private and government projects in terms of bidding,
contracts and payments.
 Documents in government are more confidential.
 Standard processes when it comes in contracts, payment and bidding should be followed.
 Contracts between owners and contractor should consider the rules and regulation of the
home owners and subdivision.
 Liquidated damage is more critical than change order and punch list.
 Unit price is more income wise than lump sum.
 Billing and payments in government projects are more critical than in private projects.
 Before finalizing the contract, it should be check and confirm by the owner and
contractor.
 CONSTRUCTION AGREEMENT

KNOWN ALL MEN THESE PRESENTS:

THIS CONSTRUCTION AGREEMENT (“Agreement”) made and entered by and between:

___________OWNER________________ with postal address at _____ _____ADDRESS____________

hereinafter reffered to as the FIRST PARTY;

-and-

CONTRACTOR, both of legal ages, Filipinos, both married, with office address at Maimpis, City of San
Fernando, Pampanga, hereinafter reffered to as the SECOND PARTY;

WITNESSETH:

THAT-

The First Party, express desire to TITLE OF PROJECT located at ADDRESS OF PROJECT;

Whereas, the First Party hired the services of the Second Party to construct the said building/structure
with following agreed terms and conditions:

The Second Party shall supply the materials and labor requirements in the construction of the
aforementioned projects in accordance with mutually aggreed upon construction plans (Annex A), and
materials specifications (Annex B) covering the following scope of work at a cost equivalent to THREE
MILLION FIVE HUNDRED THOUSAND PESOS ONLY (3,500,000.00) to with:

A.) MOBILIZATION
B.) MASONRY AND CONCRETING (Tiles / Granite Tiles)
C.) REINFORCEMENT (REBARS)
D.) STEEL TRUSSES
E.) ROOFINGS (PRE-PAINTED LONG SPAN RIB TYPE ROOFING)
F.) ELECTRICAL
 G.) PLUMBING (Bathroom Fixtures / Water Closet)
H.) FINISHING (Ceiling / Doors and Windows)
I.) PAINTINGS
J.) FENCE AND GATE
K.) SCAFFOLDINGS AND FORMWORKS
L.) MINOR LANDSCAPE
M.) DEMOBILIZATION

Note: these scope of works shall cover the description of works indicated in the materials
specifications and approved contruction plans and specifications.

The Second Party shall be responsible in the provision of electrical and water supply of the project. All
expenses incurred in the installation/connection to existing facilities, including the consuption of water
and electricity until the completion of the projects shall be for the account of the Second Party;

The Second Party shall construct the above mentioned project in accrodance with the approved plans and
specifications. Any adjustment and additional to the construction cost as a result to revision of the plans
and specifications shall be for the account of the First Party in which a written aggreement, forming part
of this contract, shall be executed by both parties and required funding for the deviation/revisions shall
be made available prior to implementation;

The Second Party undertakes to complete the construction of the above structure within the period of
180 working days from the date of mobilization by the First Party. Rainy days and/or any other natural
calamities that can delay the project is not counted on the said working days. Mobilization shall be five
(5) days reckoned from the date of payment of Down Payment of the agreed contract price;

The First Party or dully authorized representative shall monitor the quality materials and workmanship
during course of the construction period and may require the Second Party to rectify the defects found
in the construction, if any, without the additional cost former;

The Second Party shall guarranty the said projects free from all defects, except those caused by ordinary
wear and tear and from force majeure, all observe defects, if any shall be corrected immediately;

Upon signing of the contract thirty (30%) advance mobilization payment shall be given;

The First Party shall pay the Second Party under the following manner:

1. Down Payment - 30% of the total contract

Scope: Mobilization 1,050,000.00 = Bal: 2,450,000.00

2. 50% - of the construction - 30% of the total contract

Scope: Scaffoldings/Rebars/Foundation/Columns/Tie Beams/Roof Beams/CHB Laying.
 1,050,000.00 = Bal: 1,400,000.00

3. 75% - of the construction - 30% of the total contract

Scope: Steel Trusses/Roofing/Ceiling/Stub out of Electrical/Stub out of Plumbing/
Plastering/Door Jambs/Slab Flooring.
1,050,000.00 = Bal: 350,000.00

4. 100% - of the contract - 15% of the total contract

Scope: Paintings/Tile Works/Window Glass/Doors/Electrical (Lightings/Outlets/Switches
/Panel Boards with Breakers)/Faucet/Water Closet and Finishes/Minor Landscape
350,000.00 = Total: 3,500,000.00

In Witness whereof, the Parties have hereunto affixed their sifnatures on this_______day of
________at___________________________________________________________________________
_____________________________________;

OWNER CONTRACTOR
First Party Second Party

SIGNED IN THE PRESENCE OF:

___________________________________ __________________________________

ACKNOWLEDGEMENT:

REPUBLIC OF THE PHILIPPINES)

PROVINCE OF PAMPANGA )S.S.
Before me, a notary public for and in __________________________ personally appeared:
Name Residence Certificate No. Date & Place of Issue

Known to me to be persons who executed the foregoing instrument and they acknowledge to me that
the same is their own and free act and voluntary deed.

The instrument consisting two pages including this page wherein tne acknowledgement clause is
written, signed by the parties together with their instrumental witnesses on each and every page
thereof.
 WITNESS MY HAND AND SEAL, on this date, year and place first above written.

NOTARY PUBLIC

Doc No.: __________

Page No.: __________
Book No: __________
Series of: __________