UNIFORM GENERAL

CONDITIONS OF CONTRACT
PRESESNTED BY: GROUP 3
FOR PRIVATE CONSTRUCTION
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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CIAP Document 102 features the industry’s usages, customs, and best
practices to enhance fair contractual relationships in the construction
industry. It aims to provide the procedures, guidelines, and criteria to
be used by parties in a Construction Contract.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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HISTORY
CIAP is a program created under Presidential Decree No. 1746 to
promote, accelerate, and regulate the growth and development of the
construction industry. It is mandated to ensure equitable and realistic
contract conditions for construction.

The first edition of CIAP Document 102 was published on 15 October

1997. CIAP Document 102 was revised in 2004 and 2022 to incorporate
prevailing best practices and the changes that evolved in the
construction industry over the years.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Contributors
The CIAP (Construction Industry Authority of the Philippines) established the Uniform General
Conditions of Contract for Private Construction or the “CIAP Document 102”. It was formulated
by a Committee composed of representatives from various professional organizations namely:
Council of Engineering Consultants of the Philippines Construction Project Management Association of the
(CECOPHIL) Philippines (CPMAP)
International Federation of Building and Wood Chamber of Real Estate and Builders Association
Workers (IFBWW) (CREBA)
Philippine Constructors Association, Inc. (PCA) Philippine Chamber of Commerce, Inc. (PCCI)
Philippine Institute of Construction Arbitrators and Philippine Institute of Civil Engineers (PICE)
Mediators (PICAM)
United Architects of the Philippines (UAP)
Subdivision and Housing Developers Association of
Confederation of Filipino Consulting Organizations, Inc.
the Philippines (SHDA)
(COFILCO)
Society of Philippine Accredited Consultants (SPAC)
Philippine Overseas Construction Board (POCB)
Philippine Domestic Construction Board (PDCB)
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section I. Definitions and Documents

• Art. 1 Definitions
This article provides definitions for various terms used in the contract documents, such as
"contractor," "owner," "work," "materials," and "change order.“

• Art. 2 Execution, Correlation, Meaning of Terms and Intent of Documents

This article discusses how the contract documents should be executed, how they relate to
each other, and how terms and provisions should be interpreted. It also emphasizes the
importance of understanding the overall intent of the contract documents

• Art. 3 Drawings and Specifications

This article describes the different types of drawings and specifications that may be included
in the contract documents, such as architectural, structural, mechanical, and electrical
drawings. It also discusses the role of the drawings and specifications in the construction
process.
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Section I. Definitions and Documents

• Art. 4 Detail Drawings and Instructions

Provides guidelines for the production, submission, and approval of detail drawings and
instructions, including requirements for the accuracy and completeness of the information
provided. It also clarifies the responsibilities of the contractor and the owner in the review
and approval process, and the potential consequences of errors or delays in producing and
approving these documents.

• Art. 5 Shop Drawings

This article discusses shop drawings, which are detailed drawings submitted by the contractor
to show how certain parts of the work will be fabricated or installed. It covers the
contractor's responsibility for preparing and submitting shop drawings, as well as the owner's
responsibility for reviewing and approving them.
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Section II. Laws, Regulations, Site Conditions, Permits & Taxes

• Art. 6 Laws and Site Conditions

This article highlights the importance of complying with all applicable laws and regulations
during the construction process. It also covers the contractor's responsibility for inspecting
the site and understanding the site conditions before beginning work.

• Art. 7 Permits, Taxes and Surveys

This article discusses the various permits and licenses that may be required for a construction
project, such as building permits, environmental permits, and zoning permits. It also covers
the payment of taxes and fees associated with the project. Additionally, this article explains
the importance of surveying the site and clarifies the roles and responsibilities of the
contractor and owner in obtaining necessary permits and conducting surveys
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section III. Equipment and Materials

• Art. 8 General
Establishes the general provisions for equipment and materials in the construction contract,
including the contractor's responsibility for providing materials and equipment that meet
specifications, as well as the owner's responsibility for ensuring timely delivery of materials.

• Art. 9 Equipment
This article specifically covers the use of equipment in the construction process, including the
contractor's responsibility for providing and maintaining the equipment and the owner's
responsibility for reimbursing the contractor for any rental costs.

• Art. 10 Materials, Fixtures, Appliances, and Fittings Furnished by the Contractor

This article discusses the contractor's responsibility for providing and installing materials,
fixtures, appliances, and fittings that are not specifically furnished by the owner.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section III. Equipment and Materials

• Art. 11 Materials, Equipment, Fixtures, Appliances and Fittings Furnished by the Owner
Discusses the materials, equipment, fixtures, appliances, and fittings provided by the owner,
including the owner's responsibility for ensuring that these materials meet the specifications
and requirements of the contract.

• Art. 12 Royalties and Patents

Addresses the issue of royalties and patents related to the use of equipment and materials,
including the contractor's responsibility for obtaining any necessary licenses or permissions

• Art. 13 Manufacturer’s Directions

Discusses the manufacturer's directions for the installation and use of equipment and
materials, including the contractor's responsibility for following these directions, as well as
the owner's responsibility for ensuring that the equipment and materials are installed and
used properly.
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Section IV. Premises and Temporary Structures

• Art. 14 Use of Premises

Provides guidelines for the use of premises during construction, including the contractor's
responsibility for maintaining safe working conditions and the owner's responsibility for
ensuring that the premises are available for construction work.

• Art. 15 Temporary Structures and Facilities

Outlines the requirements for the construction of temporary structures and facilities, such as
offices, barracks, and storage areas, during construction, including the contractor's
responsibility for obtaining necessary permits and the owner's responsibility for ensuring
that the temporary structures and facilities do not interfere with the use of the premises. It
also provides guidelines for the removal of temporary structures and facilities after
construction is completed
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Section V. Protection of Work and Property

• Art. 16 Protection of Work and Owner’s Property

Specifies the contractor's responsibility to protect the work and the owner's property from
damage, loss, or theft.
• Art. 17 Protection of Adjacent Property and Existing Utilities
Discusses the contractor's responsibility to protect adjacent property and existing utilities
while carrying out construction work. It requires the contractor to take necessary measures
to prevent any damage to neighboring properties and utilities, and to repair any damage
caused by the construction work at their own expense.
• Art. 18 Authorization to Contractor for the Protection of Life, Work and Property During
Emergency
The contractor has the authority to take immediate action to protect life, work, and property
without waiting for instructions from the owner, and that the owner should be notified as
soon as possible. The contractor should also keep records of the actions taken during the
emergency and provide them to the owner upon request.
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Section VI. Labor, Work and Payments
• Art. 19 Labor
This article outlines the contractor's responsibility to employ skilled labor and provide them
with safe working conditions, as well as the owner's responsibility to ensure timely payment
for labor.
• Art. 20 Work
Defines the contractor's responsibilities for completing the work to the specified quality and
the owner's obligation to pay for completed work and retain an amount of the contract price
to cover the cost of completion.expenses.
• Art. 21 Time of Completion of Work
This article sets forth the time frame within which the contractor must complete the work
and the consequences of failure to do so, such as liquidated damages.
• Art. 22 Payments
This article covers the owner's obligation to pay the contractor in accordance with the terms
of the contract, including provisions for progress payments and final payment upon
completion of the work.
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Section VII. Contractor-Separate Contractor-Subcontractors Relationship

• Art. 23 Separate Contracts with Other Contractors

Specifies that the contractor can engage with other separate contractors to complete some
part of the work while ensuring that they work collaboratively with each other.

• Art. 24 Contractor and Separate Contractors Relations

Discusses the relationship between the contractor and the separate contractors, stating that
the contractor is responsible for coordinating and supervising the work done by the separate
contractors.

• Art. 25 Sub-Contracts
Addresses subcontracts, which are contracts between the contractor and a third party for the
performance of a portion of the work. It outlines the responsibilities of the contractor and
the subcontractor, as well as the owner's rights and obligations in relation to the subcontract.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section VIII. Suspension of Work and Termination of Contract

• Art. 26 Contractor’s Rights to Suspend Work or Terminate Contract

This article states that the contractor has the right to suspend work or terminate the contract
if the owner fails to make payments or violates other essential terms of the agreement. The
contractor must provide written notice of the suspension or termination and may be entitled
to compensation for work already completed.

• Art. 27 Owner’s Right to Suspend the Work

This article grants the owner the right to suspend work for reasons such as performance and
safety concerns or a need to modify plans. The owner must provide written notice of the
suspension and may be required to compensate the contractor for any resulting costs
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section VIII. Suspension of Work and Termination of Contract

• Art. 28 Owner’s Right to Terminate Contract

This article gives the owner the right to terminate the contract for reasons such as the
contractor's failure to perform or meet deadlines, or for safety concerns. The owner must
provide written notice of the termination and may be required to compensate the contractor
for work already completed.

• Art. 29 Owner’s Right to proceed with the Work After Reduction in Contractor’s Scope of
Work, Partial Takeover from Contractor
This article allows the owner to proceed with the work after reducing the contractor's scope
of work or taking over part of the project. The contractor may be entitled to compensation
for work completed before the reduction or takeover.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section IX. Responsibilities and Liabilities of Contractor and of Owner

• Art. 30 Contractor’s Responsibility for Accidents and Damages

Establishes that the Contractor is liable for any accidents or damages that occur during the
performance of the work. The owner is not responsible for any accidents or damages unless
they are caused by the owner's negligence or failure to fulfill their contractual obligations.

• Art. 31 Contractor’s Insurance and Bonds

The contractor must have insurance to protect against damages or injuries caused by their
work, and they must also provide performance and payment bonds. The performance bond
ensures that the contractor will complete the work according to the contract, while the
payment bond guarantees that subcontractors and suppliers will be paid. These bonds
provide a layer of protection for the owner and help ensure that the project is completed as
planned.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section IX. Responsibilities and Liabilities of Contractor and of Owner

• Art. 32 Owner’s Responsibilities and Liabilities

Outlines the Owner's responsibilities and liabilities, including providing access to the site,
paying for changes in the work, and ensuring that the work is completed in compliance with
applicable laws.

• Art. 33 Liens, Disputes and Arbitration

Aims to provide a clear and fair process for resolving disputes and handling liens between the
contractor and the owner. If disputes arise, both parties are encouraged to negotiate or
mediate to reach an agreement. If an agreement is not reached, binding arbitration may be
pursued. In the case of liens, the party filing the lien must follow applicable laws and take
steps to remove it as soon as possible.
 CIAP Document 102 HISTORY SECTION & ARTICLE IMPORTAN
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Section X. Owner’s Representative

Section X defines the role of the owner's representative in overseeing and managing the
construction project. The owner's representative is responsible for ensuring that the project is
completed according to the contract terms and specifications, and for communicating with both
the owner and the contractor. They also have the authority to make decisions on behalf of the
owner in certain situations. The owner's representative is typically a designated individual or
team with the necessary qualifications and expertise to effectively manage the project.

Section XI. Schedule of Time Limits

This is a section of a contract that outlines the time limits for various aspects of the contractor's
work. The time limits include the commencement of work, submission of extra cost claims and
progress payments, release of retention, substantial completion, correction of work, suspension
or termination of the contract by the contractor or owner, and extension of time. The section
provides specific time frames for each of these activities, as well as the conditions that must be
met for them to occur.
CIAP DocumentHISTORY
102 SECTION & ARTICLE IMPORTANCE TO C.E.

Importance to Civil Engineering Field

CIAP Document 102 is important in the civil engineering field because it provides a
standardized contract agreement template that can be used by contractors and
owners for civil engineering projects. It helps to ensure that all parties involved in
the project have a clear understanding of their roles, responsibilities, and
obligations. The use of a standardized contract can also help to minimize
misunderstandings and disputes, and can provide a framework for addressing
issues that may arise during the course of the project. Additionally, by using a
widely recognized and accepted contract agreement, contractors and owners can
demonstrate their commitment to ethical and professional business practices.