Construction Contract Template
Construction Contract Template
Construction Contract Template
(Ref No.________________)
KNOW ALL MEN BY THESE PRESENTS:
This Construction Contract (Contract) is entered into by and between:
____________________., an organization duly registered and
existing under and by virtue of the laws of the Philippines with principal
office ________________________________, herein represented by its
____[position]___, _______________________, hereinafter referred to as
PRINCIPAL;
- and
___________________________________________________, a corporation duly
organized and existing under and by virtue of the laws of the Republic of the
Philippines with principal place of business at ___(state business address)___,
Philippines, herein represented by its ___(state position)__, ________________,
hereinafter referred to as the "CONTRACTOR";
- WITNESSETH: That
WHEREAS, the PRINCIPAL is undertaking rehabilitation and construction
projects in various areas in the Philippines affected by calamities and natural
disasters (the PROJECT);
WHEREAS, the PRINCIPAL is in need of the services of a competent,
responsible and bona fide contractor to undertake the construction of __(state small
houses/ health center/ community water supply schemes etc.)__ for the PROJECT
(the Construction);
WHEREAS, the CONTRACTOR represents itself as a competent, responsible
and bona fide contractor which is legally permitted under the laws of the Philippines to
do business, and duly licensed under a valid and existing Certificate of Accreditation
No. __(state number)__ issued by the Philippine Contractors Accreditation Board
(PCAB);
WHEREAS, the CONTRACTOR has offered its service and expertise to perform
or complete the Construction for the PRINCIPAL and the latter has accepted the offer
of the former;
NOW THEREFORE, for and in consideration of the foregoing premises,
PRINCIPAL and CONTRACTOR, hereinafter collectively referred to as the
Parties, agree to the following terms and conditions:
1.0
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PLACE OF WORK
PERIOD
CONTRACT DOCUMENTS
The following documents, which are marked hereto and made integral parts
hereof, shall, except as modified by mutual agreement of the Parties, form part to
this Contract:
a)
b)
c)
d)
e)
f)
g)
h)
1.E
direction of the PRINCIPAL in all matters connected with the performance of the work
except as to the results thereof.
In case the CONTRACTOR fails or refuses to meet the results expected or
desired by the PRINCIPAL, the PRINCIPAL may, at its option, elect to have the
deficiencies removed or have another execute the same, all at the cost of the
CONTRACTOR.
2.0
The CONTRACTOR shall pay its workers their wages including but not limited
to the mandated minimum wage, overtime pay, night shift differential pay, rest day
pay, premium pay, holiday pay, etc., in accordance with the provisions of the Labor
Code, and other employment benefits under other labor laws, and labor-related
special laws including social or welfare legislations e.g. SSS, Philhealth, Pag-Ibig, ECC,
assuming all obligations and responsibilities appurtenant thereto, including
assumption of liabilities. For this purpose, the CONTRACTOR hereby authorizes the
PRINCIPAL to inspect, examine, and copy and reproduce, the employment records of
the CONTRACTORs workers which under existing laws, must be kept and maintained
at the main office or branch where the CONTRACTORs workers are regularly
assigned to work.
3.0
INDEPENDENT CONTRACTOR
TECHNICAL CAPACITY
The CONTRACTOR warrants that it has the expertise and technical know-how,
ability, experience and capacity to carry out promptly and efficiently the job, work or
services stipulated in this Contract.
The CONTRACTOR also warrants that all construction works called for in this
Contract shall be carried out in a workmanlike manner and in conformity with sound
engineering practices. Any defect directly resulting from the CONTRACTORs noncompliance with its obligations shall be made good without any expense on the part
of the PRINCIPAL.
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The defect liability period on all work performed on the Construction shall be
for 6 (six) months from the acceptance by the PRINCIPAL of the certificate of
completion of 100% of the Construction. This period shall not prejudice the
PRINCIPAL as to any and all available rights and remedies afforded to it by
governing law(s).
3.D
CONTRACTING CAPACITY
The CONTRACTOR further warrants and represents that is not a party to any
agreement restricting its ability to enter into this Contract, and that its performance of
this Contract does not require the consent of any third person or entity.
4.0
PAYMENT
4.A
AMOUNT OF CONSIDERATION
The PRINCIPAL shall pay the CONTRACTOR in consideration of the full and
faithful performance and accomplishment of all the obligations specified in Article 1
above, which the CONTRACTOR agreed to undertake, perform and accomplish under
this Contract, the contract price of PESOS: ___(state in words and figures
(Php___________)___, Philippine Currency, inclusive of VAT, and withholding tax (the
Total Contract Price), the manner of payment of which shall be in accordance with
Article 4.B. This Total Contract Price is without prejudice to any adjustments resulting
from changes initiated or approved on the Construction by the PRINCIPAL or any
changes recommended by the CONTRACTOR and duly approved by the PRINCIPAL.
Under no condition shall the Total Contract Price be escalated due to an
increase in cost, including but not limited to the cost of labor, fuel, materials,
equipment and other consumables during the period of implementation. The Total
Contract Price shall include all prerequisites and ancillary services required for the due
completion of the Construction, regardless of whether such prerequisites or ancillary
services are mentioned in the Contract Documents or not.
4.B
MANNER OF PAYMENT
The PRINCIPAL, upon written request from the CONTRACTOR, shall make
advance payment to the CONTRACTOR in the amount of PESOS: ___(state in words
and figures(Php___________)___, to be made in __(state whether payment is to be
made in lump sum or by installments)__ after submission by CONTRACTOR of the
down payment guarantee bond in Article 5.A.The advance payment shall be repaid
by the Contractor by deducting 100% of the total advance amount from the second
periodic progress payments to be made to the Contractor.
Progress Payments will be once a month, equivalent to whatever
accomplishment the contractor may achieve as shown in the Monthly Physical
Progress Report and Statement of Work Accomplished.
Any Progress Payment shall be paid by the PRINCIPAL within 15 (fifteen)
working days from the receipt of the invoice and both parties signing on progress
report. Payments to be made under this CONTRACT shall be in the form of cash,
demand drafts, checks or other cash equivalents, as may be agreed upon by the
Parties.
After the whole of the Construction has been completed, the PROJECT
MANAGER or the PRINCIPALs representative shall certify after inspection and
recommend to the PRINCIPAL the final acceptance thereof. Within a period of 30
(thirty) days after final acceptance by the PRINCIPAL, the PRINCIPAL shall pay the
CONTRACTOR all amounts still due, less a Retention Amount of 5% (five percent)
of the total contract value.
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FOR
SSS/ECC/
The CONTRACTOR is solely responsible for payment of salaries, wages, and all
other benefits and remunerations, required by and in accordance with existing laws,
due to the employees and/or personnel of the CONTRACTOR.
The CONTRACTOR shall directly remit to the appropriate government agencies
the prescribed monthly contributions both its share, and that of its workers without
any delay, pursuant to and in accordance with the applicable social and welfare laws,
rules and regulations.
The CONTRACTOR shall, at all times, stand solely liable and/or responsible for
the enforcement of and compliance with all existing laws, rules, and regulation in
relation to its employees, particularly with respect to the Labor Code of the Philippines
and other Philippine Labor and Social Legislation, and CONTRACTOR agrees and
binds itself to save, indemnify and hold the PRINCIPAL free and harmless from any
and all liabilities, and/or claims with respect thereto and/or arising therefrom.
5.0
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The CONTRACTOR shall, at its own expense, post and furnish the PRINCIPAL
a performance security in the form of Bank Guarantee amounting to 10% of the
Contract Amount (Php___________))__ within 3 (three) working days from the issuance
of Notification of Award for this Contract. This bank guarantee shall answer for any
monetary judgment, order or award due to violation of the prescribed minimum wage,
labor standards law and social or welfare legislations. In case the bond is not
sufficient, the CONTRACTOR shall likewise assume and pay the balance thereof. In no
case shall the bond posted be lower than the total contract cost as stipulated in this
Contract.
5.C
INSURANCE LIABILITY
PRE-TERMINATION
The CONTRACTOR shall immediately stop, cease and desist from further
providing and performing, or completing its services to the PRINCIPAL, and
peacefully vacate the office, building and premises of the PRINCIPAL without
any delay.
In any event of termination, CONTRACTOR shall return to PRINCIPAL all
property of the CLIENT in the possession of the CONTRACTOR within seven (7) days
from the effectivity of such termination, without need of further demand.
8.0
iii.
In any of the foregoing cases, period of completion may be extended for such
time as will compensate for the time lost due to the aforesaid causes.
It is understood by the parties herein that time is of the essence and
therefore, unjustified delays shall entitle the PRINCIPAL to exercise any of its rights
granted herein or under Philippine law.
9.0
The CONTRACTOR warrants and agrees that it has complied and will comply
with all applicable laws. The CONTRACTOR agrees to indemnify the PRINCIPAL
and save the PRINCIPAL harmless from any claims, losses, damages, costs and
legal expenses (including but not limited to attorneys fees), resulting from the
CONTRACTORs failure to comply with the foregoing, and in the event of such
failure, the PRINCIPAL may, in addition to all other rights and remedies the
PRINCIPAL may have pursuant to this Contract or otherwise in law or in equity,
immediately cancel this Contract.
15.0 INTELLECTUAL PROPERTY AND NON-DISCLOSURE
CONTRACTOR agrees and confirms that all materials, reports, information,
documentation, inventions or other work products (Intellectual Properties) which the
CONTRACTOR may generate in the course and scope of its performance of services
under this Contract are the property of the PRINCIPAL, and hereby assigns all rights,
title and interest in and to such Intellectual Properties to the PRINCIPAL.
CONTRACTOR undertakes to sign a waiver of authorship of final output in favor of the
PRINCIPAL.
Any other data and information learned or acquired by the CONTRACTOR
in connection with or relative to the business operations or activities of the
PRINCIPAL, its trademarks, brand names, trade or business secrets, or
processes, accounting and financial records, and security details are
considered the exclusive proprietary information of the PRINCIPAL and shall
remain confidential perpetually, and not to be disclosed in any manner to any
person not a party to this Contract.
16.0 ASSIGNMENT OF RIGHT AND SUB-CONTRACTING
By:
_______________________
(Name of PRINCIPALs representative)
representative)
(Position)
_________________________
(Name of
(Position)
___________________________
__________________________________
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ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
_____________________
) S.S.
BEFORE ME, a Notary Public for and in the City of ________, this __ day of ______
2014, personally appeared the following persons with the following competent
identification:
(Name of CONTRACTORS Representative)
unexpired)
(Name of PRINCIPALS Representative)
unexpired)
known to me to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their own free and voluntary acts and
deeds and that of the corporations herein represented.
This instrument consists of _____ pages including this page on which the
acknowledgment is written and has been signed on the left margin of each page by
the parties herein and their witnesses, and sealed with my notarial seal.
WITNESS MY HAND AND NOTARIAL SEAL on the date and at the place
hereinabove written.
______________________
Notary Public
Doc.No. __________;
Page No.__________;
Book No. _________;
Series of 2015.
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