SERVICE AGREEMENT

DESIGN & BUILD BY ADMINISTRATION

PROJECT : PROPOSED MAUSOLEUM

LOCATION : FORESTLAKE, MAA DAVAO CITY
OWNER : MERLY ANG
ARCHITECT : ARCH. DARRYL F. GELACIO

This AGREEMENT, made and entered into this 18TH day of February 2022 by and between :

Merly Ang, a married individual under and by virtue of the laws of the Philippines, with residence at
________________________________, Davao City, Philippines, hereinafter referred to as the “OWNER”.
.
- and -

Darryl F. Gelacio, a registered and licensed Architect existing under and by virtue of the laws of the
Republic of the Philippines, with principal office and place of business at 2F Villegas Bldg. Lot 129 Sandawa
Road, Matina Davao City, hereinafter referred to as the “ARCHITECT”.

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: ONE STOREY WITH MEZANINE MAUSOLEUM BLDG,
hereinafter referred as to the PROJECT.

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

NOW, THEREFORE, the OWNER and the ARCHITECT, 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 in DESIGN AND
BUILD BY ADMINISTRATION for this project.

ARTICLE 2 GENERAL SCOPE OF SERVICES

That the scope of work to be done by the ARCHITECT, as herein authorized by the
OWNER, for the subject project herein referred to consists of professional services for the
following:

2.1 Site planning of the building or buildings including other concomitant structures, as may be
determined by the OWNER.

2.2 Architectural Design and Detailed Engineering Design of the Proposed:

ONE STOREY WITH MEZANINE MAUSOLEUM BLDG

2.3 Build and Construction Services by Providing necessary Manpower & Personnel ,
Tools and Equipment to carry out the Project.

2.4 Construction Supervision, Management and Administrative Works

ARTICLE 3 DETAILED SCOPE OF SERVICES

ARCHITECT’S BASIC SERVICES:

3.1 Schematic Design Phase

3.1.a The ARCHITECT shall consult with the OWNER to ascertain the requirements of the
OWNER.
3.1.b He shall prepare schematic design studies leading to a recommended solution together
with a general description of the project for approval by the owner.
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 3.1.c He shall submit to the OWNER a statement of Probable Project Construction Cost
based on the current cost parameters.

3.2 Design Development Phase (Preliminary Studies)

3.2.a The ARCHITECT shall prepare from the approved Schematic Design Studies, the
Design Development Documents consisting of plans, elevations and other drawings,
and outline specifications, to fix and illustrate the size and character of the entire Project
in its essentials as to kinds of materials, type of structure, mechanical, electrical and
sanitary systems and such other work as may be required.
3.2.b He shall submit to the OWNER a further Statement of Probable Project Construction
Cost.

3.3 Contract Documents Phase

3.3.a The ARCHITECT shall prepare from the approved Design Development Documents, the
Construction Drawings and Specifications setting forth in detail the work required for the
architectural, structural, electrical, sanitary, mechanical, service-connected equipment, and
site work.
3.3.b He shall prepare specifications describing type and quality of materials, finishes, and
manner of construction and the general conditions under which the project is to be
constructed.
3.3.c He shall furnish not more than Seven (7) complete sets of contract drawings,
specifications and general conditions for purposes of bidding.
3.3.d He shall keep the OWNER informed of any adjustments to previous Statements of
Probable Project Construction Cost indicated by changes in scope, requirements or
market conditions.
3.3.e He shall assist the OWNER in filling the required documents to secure approval of
governmental authorities having jurisdiction over the design of the project. Liason leg work
and liason work including transportation expenses and representation expenses are
chargeable to the owner.

3.4 Construction Phase

3.4.a He will make regular visits to the site to familiarized generally with the progress and quality
of the work and to determine, work proceeding is in accordance with the Plans and
Designs. He will make on-site inspections to check the quality or quantity of the work and
be responsible to carry out the construction work in accordance with the Plans and Designs.
During such site visits and on the basis of his observations, he shall report to the OWNER
defects and deficiencies noted in the work of the personnel, and shall condemn work found
failing to conform to the Contract Documents.

ARTICLE 4 DESIGN & BUILD SERVICES BY ADMINISTRATION

4.a Prepares schedule of work, construction program, estimate and bill of materials, labor,
plants, equipment and services;
4.b Hires construction personnel and designates duties and renumerations thereof;
4.c Negotiates and enters into contract with piecework subcontractors and evaluates work
accomplished thereunder;
4.d Authorized payments of accounts;
4.e Negotiates with government agencies having jurisdiction over the project; and
4.f Manages all other businesses of the construction.
4.gThe above services are performed with the following conditions:

4.g.1 All cost of inspectors, supervisors, administrators, record keepers, labor cost and
materials are paid directly by the Owner. The Architect does not advance any money for
payment of expenditures connected with the work.
4.g.2 The Architect appoints, subject to the Client’s approval a construction superintendent, a
purchasing agent, a timekeeper or keepers, and a property clerk aside from the usual labor
personnel required. The salaries of such persons are paid by the client and is not
deductible from the Architect’s Fee.
4.g.3 Cost of all permits and licensee incidental to the work are paid by the Owner.

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ARTICLE 5 ARCHITECT’S FEE AND MANNER OF PAYMENTS

5.1 Generally, the OWNER agrees to pay the ARCHITECT for the professional services for
this DESIGN AND BUILD by ADMINISTRATION SCHEME of FIFTEEN PERCENT (15%) of
the Total Actual Project Construction Cost.

5.2 Cost of Construction of the Labor and Material works shall be furnished directly at the
owners’ expense. The owner will purchase necessary materials needed for construction and
will compensate the weekly labor salary of the workers and personnel in the construction.
The Architect will do administrative works for the Material request, Weekly Salary billings
and release of weekly payroll of workers & personnel.

5.3 That Payments to the ARCHITECT on account of his basic services shall be made by the
OWNER as follows:

a. Upon the signing of this agreement, an Initial payment equivalent to Thirty Thousand
pesos (PHP 30,000) of the compensation for the basic services for the preparation of
Plans, Drawings and necessary Documents that will be used for Construction permits.
This Initial payment will be deducted to the 15% Professional Fee as stated in Article 5.1

b. Upon completion of the Plans, Drawings & Documents a payment of Five Thousand
pesos (PHP 5,000) for the Document Facilitation and Processing of Necessary
Construction Permits. Government Fees, Developer’s fee and Representations are not
included and shall be paid separately by the Owner.

c. Upon the Start and During Construction period, the Architect shall submit on a weekly
basis through his administrative work services, The Labor Manpower cost or the Weekly
Payroll of the Personnel and Workforce involve in the Construction phases of the
project. The owner shall provide the Weekly Payment for the workers.

d. Upon completion of the construction work, the remaining balance of the ARCHITECT’S
Fee shall be computed on the Actual Construction Cost of the Structure shall be paid.
The owner shall disclose all actual expenses made to the project.

5.5 That the OWNER agrees to make partial payments to the ARCHITECT from his
professional fee, upon request, provided that such payments are computed within the
current progress percentage of the project.

ARTICLE 6 BASIC FEE AND BASIC RATE

The “Basic Fee” and “Basic Rate” referred to in Article 5, applies to Design Construction
work done by Architect on the basis of a cost -plus-fee basis contract. However, it is the
desire of the OWNER to build the said project by Administration to Supply all Labor and
Materials by the Owner. The architect will only provide manpower personnel and the Owner
will compensate the basic rates and wages of the workers. The basic rate that implies in the
construction works specifically on the manpower rate are as follows:

PERSONNEL RATE/DAY
Foreman 750
Record Keeper 450
Skilled Worker 550 to 600
Semi Skilled Worker 450 to 500
Labourer 400

Specialty works that requires Sub Contracting may also be included on the project on the
basis of a Quantitative measured rate (by squaremeter, cubic meter, length meter, etc.
or any measurable method) that will be determined later by the Architect and to be
approved by the owner.

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ARTICLE 7 THE OWNER’S RESPONSIBILITIES

7.1 The OWNER shall provide full information as to his requirements for the project.

7.2 He shall designate, when necessary, representatives authorized to act in his behalf. He
shall examine documents submitted by the ARCHITECT and render decisions
pertaining thereto promptly, to avoid unreasonable delay in the progress of the
ARCHITECT’S work. He shall observe the procedure of issuing orders to contractors only
through the ARCHITECT.

7.3 He shall furnish or direct the ARCHITECT to obtain at the OWNER’S expense, a certified
survey of the site, giving, as required, grades and lines of streets, alleys, pavements, and
adjoining property, right of way, restriction, boundaries, and contours of the building site,
locations, dimensions and complete data pertaining to existing buildings, other
improvements and trees, full information as to available services and utility lines both
public and private and test boring and pits necessary for determining sub-soil conditions.

7.4 He shall pay the Structural, chemical, mechanical, soil mechanics or other tests and reports
as may be required for the project.

7.5 He shall pay the design and consultancy services on acoustic, communication, electronic
and other specialty systems as may be required by the project.

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

7.7 He shall pay all reimbursible expenses incurred in the project as called for in Article 5 and
Article 6. that the government may imposed on the project, as a result of the services
rendered by the ARCHITECT on the project.

7.8 If the OWNER observes or otherwise becomes aware of any defect in the Project, he shall
give prompt written notice thereof to the ARCHITECT.

ARTICLE 8 PROJECT CONSTRUCTION COST

That the cost of the work or Project Construction Cost as herein referred to, means the
cost of the completed structure to the OWNER including Plumbing and Electrical fixtures,
mechanical equipment , air conditioning equipment, generators, pumps, elevators, fire
fighting equipment, automatic fire sprinkler system, communication and sound system
elements attached to the building and all items indicated in the drawings, specified or
designed by the ARCHITECT, such as movable closets, cabinets, pieces of furniture,
covered walks, grottos, pools, landscaping and other items of similar nature that are to be
paid directly and furnished by the OWNER.

The Project Construction Cost, however, does not include any ARCHITECT’S fee or
Engineers’ fee or their salaries. When labor and materials are furnished by the OWNER,
the cost of work shall be computed upon such current market cost.

ARTICLE 9 ESTIMATES

Since the ARCHITECT has no control over the cost of labor and materials, he does not
guarantee the accuracy of any Statement of Probable Construction Cost, or any Semi-
Detailed or Detailed Cost Estimate.

ARTICLE 10 OTHER EXPENSES CHARGEABLE TO THE OWNER

10.1 Government Taxes on Services: The ARCHITECT’S Fee as stipulated in Article 3 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.

10.2 Different Periods of Construction: that if portions of the building are erected at different
periods of time, thus increasing the ARCHITECT’S Construction Phase period and burden
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 of services, charges pertaining to services rendered during the construction phase shall be
doubled. It is understood that a suspension of construction for a period not exceeding six
(6)months shall not be covered by this provision.

10.3 Separate Services: that if the OWNER requires the ARCHITECT to design or plan movable
closets, cabinets, pieces of furniture, covered walks, grottos, pools, landscaping and other
items of similar nature, the OWNER shall pay the ARCHITECT additional Compensation in
the amount of Fifteen Percent (15%) on the Construction cost of the above work.

10.4 Other Professional Services: that the ARCHITECT’S Fee includes normal structural,
electrical, sanitary and mechanical engineering services, but not to include services for
survey, soil exploration and labatory tests which are on the account of the needed in
order to complete the project such as acoustics engineers mural painter’s, sculptors and
interior decorators are to be recommended by the ARCHITECT for the OWNER’S approval
and cost for this services are to be paid by the OWNER and not deductible from the
ARCHITECT's Fee.

10.5 Extra Sets of Contract Documents: that the ARCHITECT is to furnish the OWNER Seven
(7)sets of Drawings, Specifications and other Contract Documents. Cost for printing or
reproduction of extra sets of Contract Documents when required by the OWNER or his
representatives is to be paid by the OWNER.

10.6 Work Suspended or Abandoned: If the work of the ARCHITECT is suspended, in whole
or in part, the ARCHITECT is to be paid by the OWNER for the services rendered
corresponding to the fee due at the stage of suspension. The fee are computed in
percentage completion of the project.

ARTICLE 11 COST RECORDS

During the progress of work the OWNER shall furnish the ARCHITECT two (2) copies of
records of expenses being incurred for the construction. Upon completion of the project,
the OWNER shall furnish the ARCHITECT two (2) copies of the summary of all cost of
labor, services, materials, equipment, fixtures and all items used at and for the completion
of the construction.

ARTICLE 12 SUCCESSORS AND ASSIGNS

The OWNER and the ARCHITECT each binds himself, his partners, successors, legal
representatives and assigns to the other party to this agreement, and to the partners,
successors, legal representatives and assigns of such other party in respect to all
covenants of this agreement. Except, as above, neither the OWNER nor the ARCHITECT
shall assign, sublet or transfer his interest in this agreement without the written consent of
the other.

ARTICLE 13 TIME OF COMMENCEMENT AND COMPLETION

Upon the Approval of this agreement, The Architect will immediately commence the
Schematic, Design and Contract Phases of this Project. The architect will present the
Drawings and Blue Prints for Approval to the owner and Shall start immediately the Permit
Facilitation and processes.

Upon Approval and Issuance of Building permits from government and Developer, The
Commencement of the Construction Phases shall start. The Architect shall commence the
execution of the Project and shall finish and complete the construction of the Project in
accordance with the plans and specifications within Estimated ___________calendar days.

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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:

_____________________________ ___________________________
OWNER ARCHITECT

SIGNED IN THE PRESENCE OF:

_____________________________ ___________________________

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