CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This CONSTRUCTION AGREEMENT made and executed this _________ day of

________ 2021 in the City of ___________ by and between:

________________, with address at _____________, duly represented

by ________________ hereinafter referred to as the OWNERS;

-and-

________________, with address at ________________, duly

represented by ________________, hereinafter referred to as
the CONTRACTOR;

WITNESSETH: -

WHEREAS, the OWNERS, shall construct of __________________ located at

_____________;

WHEREAS, the CONTRACTOR presented and warranted to the OWNERS that it

is capable, competent to construct and to complete the aforementioned
_____________ 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 OWNERS accepted the offer of the CONTRACTOR to
construct the above-mentioned _____________________.

NOW, THEREFORE, for and in consideration of the foregoing premises and the
covenants and undertakings hereinafter set forth, the parties hereto agree as
follows:

ARTICLE 1. DESIGN AND CONTRACT DOCUMENTS. - This Agreement,

together with the following Design, attached and made an integral part of
therewith, shall be duly complied with by the CONTRACTOR.

Any part of the Design may be changed by the parties to this Agreement to
improve, preserve and protect the beauty and strength of the structure.

All changes in the Design 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 said changes shall be approved in writing by the OWNERS  prior the
implementation thereof by the CONTRACTOR;

The OWNERS shall be formally furnished by the DESIGNER/CONRACTOR with

copies of the following documents or records (a) within seven (7) days from the
date of the execution of this Agreement or (b) within seven (7) days from the
approval thereof by the Local Government of Xxx City or (c) within seven (7)
days from the completion, approval and signing of the final official versions
thereof by the parties to this Agreement  --  whichever period comes first -- to
wit:

(b)            The original copies  or duplicate original copies or certified true

copies of  the FINAL DESIGN AND CONTRACT DOCUMENTS duly discussed
and approved/signed by the parties to this Agreement and officially filed with,
received by, processed, and approved by the City Building Official of the Local
Government of xxx City, pursuant to applicable building and other laws;

(d)            The original copy or duplicate original copy or certified true copy of

the PRELIMINARY AND FINAL SCOPE OF WORKS AND AMENDED VERSIONS
THEREOF, if any, duly discussed, approved and signed by the parties to this
Agreement, detailing;

(i)  the construction-related activities involved,

(ii) the time or schedule of commencement and completion of the stipulated
works and services,
(iii) the final turnover of the Residential Building,
(iv) the necessary construction-related charts, graphs, illustrations, and
documentations, and
(v)  all other topics, items and information related to the Construction;

(e)             The original copy or duplicate original copy or certified true copy of

the PRELIMINARY AND FINAL BILL OF MATERIALS AND AMENDED
VERSIONS THEREOF, if any, duly discussed, approved and signed by the
parties to this Agreement; and

(f)              The original copies or duplicate original copies or certified true

copies of any and all other relevant materials, documents, records, plans,
papers and legal instruments as may be required from time to time by the
OWNERS from the CONTRACTOR for the information and reference of the
OWNERS.

ARTICLE 2. SCOPE OF WORK. - The CONTRACTOR shall implement the

Proposed Construction at _________________________

The CONTRACTOR shall:

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

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

The DESIGNER/CONTRACTOR shall secure the Permits and Licenses (Building

Permits, Occupancy Permits and other Incidental Permits) required by the City
Building Official and other concerned internal offices of the Local Government
of Xxx City at the expense of the OWNERS and subject to the right of the
OWNERS to examine the expenses incurred for said purposes and the
documentary proofs thereof.

ARTICLE 3. TERMS OF PAYMENT. - Payment for this Contract shall be based

on the following:

(a)          Down Payment -  Fifty Percent (50%) of the Total Contract Price, the
same to be paid on upon the effectivity of this Agreement;

(b)         Progress Billings - based on Actual Accomplishments, subject to

submission by the CONTRACTOR of the true and accurate Accomplishment
Reports and subject to confirmatory site inspection by the OWNERS; and

ARTICLE 4. CONTRACT AMOUNT. -  The CONTRACT AMOUNT shall be

__________ MILLION PESOS (Pxxx, 000, 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 stipulated in the Article 3 of this Agreement.

The CONTRACTOR hereby guarantees and warrants the stability, strength and

structural integrity of the subject ___________________ within the period
mandated by the Civil Code of the Philippines and other applicable building
laws, rules and regulations.
The OWNERSs 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 in writing by the
OWNERS and consented to in writing by the CONTRACTOR.

ARTICLE 5. 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 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.

All materials and workmanship are guaranteed by the CONTRACTOR for a

period of six (6) months from the date of the turn-over of the construction
project.

As stated in Article 5 of this Agreement, the CONTRACTOR hereby guarantees

and warrants the structural stability, strength and integrity of the subject
______________________ within the period mandated by the Civil Code of the
Philippines and other applicable building laws, rules and regulations.

ARTICLE 6. THIRD PARTY LIABILITY; and CONSTRUCTION ALL RISKS

INSURANCE. - The OWNERS shall be held free and harmless from any and all
civil and criminal liabilities and from any and all legal, administrative, judicial
and extrajudicial claims, demands, suits or actions by the Construction
Workers, Staff, Personnel and Agents of the CONTRACTOR, by any and all
Third Parties and Entities, whether natural or juridical, and by any and all
concerned Local and National Government Agencies arising from, caused by,
by reason of, or due to the construction of the subject residential building,
such as, but not limited to:

(a) Salaries, Wages, Allowances and Workers Benefits, as required by

applicable labor laws,
(b) Overtime pays, as required by applicable labor laws,
(c) Holiday pays, as required by applicable labor laws,
(d) Service incentive leaves, as required by applicable labor laws,
(e)  Any and all other mandatory and existing leaves mandated and required by
applicable labor laws, rules and regulations,
(f) Thirteenth month pays, as required by applicable labor laws,
(g)Compensations for Injury or Death of the Construction Workers, Staff,
Personnel and Agents of the CONTRACTOR, pursuant to applicable laws, rules
and regulations and/or by equity and natural justice,
(h)            Compensations for any and all Injury or Death caused to and
sustained by any and all Third Parties or Entities, pursuant to applicable laws,
rules and regulations and/or by equity and natural justice,
(i)               Premiums for the coverage of the Construction Workers, Staff,
Personnel and Agents of the CONTRACTOR under the Social Security System
(SSS), PHILHEALTH, and PAG-IBIG, and other relevant labor legislations,
payable by the CONTRACTOR to the Government, pursuant to applicable laws,
rules and regulations and/or by equity and natural justice,
(j)               Any and all Income and Other Kinds of Taxes of whatever nature
and kind, as well as any and all administrative and regulatory fees and charges
of whatever nature and kind, payable by the CONTRACTOR to the Local and/or
National Governments, pursuant to applicable laws, rules and regulations
and/or by equity and natural justice, and
(k)            Any and all other legal or financial obligations of whatever nature
and kind not mentioned above which are payable by the CONTRACTOR to the
Local and/or National Governments pursuant to applicable laws, rules and
regulations and/or by equity and natural justice.

All of the aforementioned items shall be for the sole account of and shall be the
exclusive duty, responsibility, liability and obligation of the CONTRACTOR.

The OWNERSs shall not be held liable for any and all of the aforementioned
obligations or liabilities of the CONTRACTOR.

The OWNERS shall not be held liable for any and all liens and encumbrances
which the CONTRACTOR might incur from any and all third parties or entities
arising from the supply of materials, labor, or services rendered for the project.

ARTICLE 7. 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 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.

Such agreed costs may or may not result in the upward or downward

adjustments of the agreed Contract Price stipulated in Article 5 of this
Agreement.

The change orders or memoranda shall indicate any and all agreed TIME
EXTENSIONS that the additional or revised works would entail.

 All agreed costs shall be based on the prevailing market prices at the time the
change orders or memoranda are mutually approved and signed by the parties
to this Agreement.

The specific amounts of the labor costs shall be indicated in the approved and
signed change orders or memoranda.

No change orders or memoranda shall be implemented without the prior

mutual discussion, approval and signature by and between the parties.

ARTICLE 8. TIME OF COMPLETION. -  The CONTRACTOR warrants that the

construction of the subject Project shall be completed within ____________
working days, excluding Sundays & Holidays.

ARTICLE 9. SAFEGUARDS. - 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.

The CONTRACTOR shall be solely responsible for and shall forever hold the
OWNERS free and harmless from and against any and all obligations,
liabilities, damages, losses, expenses, judgments, court costs or costs of suit,
attorney's fees, litigation expenses, demands, payments, suits, actions
recoveries, decrees, executions and claims of whatever nature, kind  and
description brought, commenced, instituted and/or recovered against the
CONTRACTOR and/or jointly against the OWNERS as the co-defendants of the
CONTRACTOR (a) by any and all builders, agents, servants, laborers,
employees or representatives of the CONTRACTOR and/or (b) by any and all
injured or aggrieved persons, parties and/or entities arising from, by reason of,
due to, and/or caused by the construction of the subject residential building.
The CONTRACTOR shall be solely responsible for and shall exclusively bear
any and all costs and expenses caused by any and all 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.

ARTICLE 11. ESCALATION CLAUSE NOT APPLICABLE. - It is agreed that

the Contract Price stated in Article 5 of this Agreement is final and fixed.  

It is not subject to escalations or increases in the amounts, rates and

valuations of any and all taxes, licenses, permits, materials, inflation, deflation,
and/or devaluation of the Philippine Currency.

However in the event of new government-mandated increases in the minimum

wages of laborers issued subsequent to the date of the execution of this
Agreement, the necessary adjustments shall be made by the parties to comply
therewith.  

The said adjustments shall be subject to the mutual discussion, agreement,

consent and written approval by the parties prior to the implementation
thereof.  

IN WITNESS WHEREOF, the Parties hereto have hereunto affixed their

signatures this _________________ at the ______________________, Philippines.

by: by:

________________________ __________________________
OWNER CONTRACTOR

SIGNED IN THE PRESENCE OF:

___________________________ ______________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINE)

____________________________) S.S.

BEFORE ME, this _________________, in _________________ personally appeared:

Name Competent Proof Place and Date of Issue

of Identity

________________ _____________ ___________________

_________________ _____________ ___________________

known to me to be the same persons who executed the foregoing instrument,

and they acknowledged to me that the same is their free act and deed and that
of the offices, which they respectively represent.

This instrument consisting of eight (8) pages including its annexes and the
page on which this acknowledgement is written, has been signed by the Parties
and their witnesses and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto affixed my signature on the day, year

and place above written.

NOTARY PUBLIC

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2021.