S. Restriction.

The Owner shall not

be allowed to use or occupy the
building or structure
and parts thereof not until the
following shall be accomplished and
or resolved.
(1) Termination of Work and
acceptance thereof by the Owner
is executed
stating that the said building is
constructed in accordance with the
plans and
specifications.
(2) Release of the Final Payment and
Retention Money.
(3) Resolved dispute between the
Contractor and the Owner as here
below
stated.

1
T. Dispute Resolution. Should any
dispute arise concerning (a) the intent
or meaning of
the work described in the work
write-up or any change order, (b)
the quality of
workmanship or materials, (c) the
value of any work, (d) payment for
work, or (e) for
other reasons pertaining to the
terms and conditions of the
Contract, the parties
agree that except for disputes and
claims that may be brought in the
Court of Cagayan
de Oro City and for which a
party is not entitled to a trial by
jury, and except as

2
necessary to enforce the mediation
and arbitration obligations of this
Section, all
disputes or claims arising out of this
Contract shall be resolved through
mediation or
arbitration as specified in this
section as the exclusive remedy
for resolving such
disputes or claims.
(1) ARBITRATION: All claims,
disputes and other matters on
questions arising out
of this Contract or the breach
thereof shall be decided by
arbitration in
accordance with the Construction
Industry Arbitration Law (Executive
Order

3
No. 1008) under the Construction
Industry Arbitration Commission
(CIAC).
The award rendered by the arbitrators
shall be final, and judgment may be
entered upon in accordance with
applicable laws in any court of
competent
jurisdiction.
(2) The parties agree that any
mediation or arbitration brought
pursuant to this
section shall be confidential and no
details, descriptions, settlements or
other
facts concerning such mediation or
arbitration shall be disclosed or
released

4
to any third party without specific
written consent of the other party
or
parties unless required by law or
court order in connection with
enforcement
of any decision on such arbitration.
U. Hold Harmless. It is expressly
understood that the Contractor shall
indemnify and
hold the Owner harmless from any
claims, suits, action, damages and
costs of every
name and description arising out
of, or resulting from, the
Contractor’s acts or
omissions in its performance of the
work to be rendered by the
Contractor under this
Contract.
5
V. Miscellaneous. This Contract
becomes effective and binding
when signed by the
CONTRACT FOR CONSTRUCTION

This Construction Contract (hereinafter referred to as a “Contract”) made and

entered into this 4th day of March, 2023 by and between,

MRS. JENELYN SALVE B. CAJURAO., (hereinafter referred to as a “Owner”)

and

Cornerstone Architectural Design Studio, represented by AR. JUSTINE

ALLISON S. ERENEA (hereinafter referred to as “Contractor”); and

WHEREAS the Owner desires to construct an extension and fence in her

residence at the address known as Blk 7 Lot 2 Camella Subdivision, Brgy. Joyao-Joyao
Numancia, Aklan.

WHEREAS the Contractor warrants being qualified to perform the work specified
herein.

NOW THEREFORE, in consideration of the mutual promises and premises

herein contains, the Owner and Contractor agree to meet and satisfy all terms and general
conditions of this contract as follows.

I. DESCRIPTION OF THE WORK

A. The Contractor does hereby covenant and agree to furnish all labor,
material and equipment, and to faithfully perform the work within the
time period of One Hundred Fifty Calendar days (150) or as
established by the Notice to Proceed for this contract, in strict
accordance with the detailed description of work (hereinafter referred
to as the “work write-up), and subject to, and in strict conformance with
all of the conditions, covenants, stipulations, terms and provisions
contained in this contract. All of the representations, rights, and
obligations of the Owner and Contractor are embodied in the Contract
and any prior oral or written agreement not included herein shall not be
binding upon or inure to the benefit of any of the parties.

B. This contract includes the work write-up, Contractor’s proposal, and if

applicable, drawings and amendments to the Contract, which are
incorporated by reference and specifically identified below and hereby
made part of this contract:

(1) Work Write-up and or specifications

6
 (2) Contractor’s Proposal or Bill of Materials or Cost Estimate
(3) Working Drawings
(4) Minutes of Meeting (if applicable)

II. COMPENSATION AND METHOD OF PAYMENT

A. Upon execution of the Contract, the Owner will obligate the necessary
funds to pay the contract sum in accordance with the Contract. The
Owner agrees to pay the Contractor for the full and faithful
performance of the work pursuant to this Contract at a sum equal to
the aggregate cost of the work, labor, materials and supplies done and
furnished at the price and rates set forth in the Contractor’s proposal,
and said sum being but not fixed to Seven Hundred Six Thousand
and Six Hundred Forty Pesos (Php 760,640.00). Contractor
covenants and agrees to faithfully comply with and perform each and
every obligation imposed upon the Contractor by the Contract and the
terms of the proposal, as accepted by the Owner.

B. Advance payment shall be One Hundred Thousand Pesos (Php

100,000.00).

C. Billing. Partial Billings will be made by the Contractor provided with the
list of materials needed to purchase for the next phase of the
construction and will also provide the receipts of previous materials
and payroll. This will be made 2-3 days before the budget is needed.

D. Contractor’s Fee. The Contractor’s fee is 10% of the actual sum of

materials purchased and labor weekly. This is billed every Saturday.

III. GENERAL CONDITIONS

A. Proposal. This contract which includes the Contractor’s proposal, has

been properly signed and dated by the Contractor, and the Owner by
signing this Contract, accepts the said Contractor’s proposal which
becomes part of this Contract.

B. Project Cost is a lump sum amount to complete the construction of the

following items;

a. Extension for a Two-Storey Residential Building

b. Perimeter Fence
c. Pedestrian Gate
d. Vehicle Gate

C. All materials and consumables shall be supplied by the Contractor.

Ordering of materials shall be taken progressively as the need arises.

7
D. Excess materials, scraps, scaffolds, forms, tools, equipment and other
temporary structures being delivered, installed, deployed, and
constructed on site by the Contractor are properties of the Contractor.

E. Cost of labor, equipment & supervision will change with respect to any
changes of the scope of works. Cost of additive work shall be
computed by employing the material unit costs indicated in the Bill of
Materials (BOM) plus 45% of MC to cover for the labor cost and 10%
of MC for the cost overhead, tax, contingencies, and contractor’s fee.

F. Project Time extension shall be granted to the Contractor for the

accumulated unworkable days due to force-majeure and other
adversities beyond the control of the Contractor e.g. bad weather.
Time extension shall be based on the actual unworkable days as
indicated in the “Daily Records Sheets” or log book.

G. Liquidated Damages. The cost of liquidated damages shall be

computed as One Tenth (1/10) of One Percent (1%) per day of delay
from the unfinished and or undelivered pay items or scope of works of
the project.

H. Permits & Licenses. Preparation of complete drawings, estimate,

specifications, structural analysis and other technical documents shall
be under the Contractor. However, corresponding fees such as but not
limited to building permit fees, zone clearance, barangay clearance,
fire safety certificates and other documents pertaining to the securing
of building permit shall be under the account of the Contractor.

I. Utilities. Cost of utilities such as power and water needed to complete

this project is under the account of the Owner.

J. Other Expenses. It will be the Owner’s responsibility to provide drinking

water and morning/afternoon snacks for the construction workers daily.

K. Reimbursable. The owner will reimburse any other expense of the

Contractor in relation to the progress of the project like but is not
limited to transportation expense (gas) provided with the official
receipt.

L. Damages/Repairs. The Contractor must take every reasonable effort to

protect the possessions of the Owner that remain in the work area from
loss or damage. Any portion of the property damaged by the
Contractor or subcontractor during the course of the work must be
repaired at no additional cost to the Owner. The term “damages” shall
include, but not limited to, any damage caused by the contract
operation or workers during construction to adjoining properties or to
public spaces. When “repair of existing work” is called for in the work

8
 write-up, the finished work shall match adjacent work in design and
dimension to blend with existing works so that the patch or
replacement will be inconspicuous.

M. Temporary Work Stoppage. The Contractor may call a “Temprorary

Work Stoppage” if any of the payment request or billing is not yet
settled within Seven (7) calendar days from the date of submission of
the payment request or billing. Work shall be remobilized or
recommence within Three (3) calendar days from the date of receipt of
the payment from the Owner.

N. Supervision. The supervision of all work, including coordination of al

portions of the work under the Contract must be provided by the
Contractor. The Contractor shall ensure discipline and order among all
employees of Contractor and subcontractors. Workers shall be
competent and capable of performing the work assigned to them.
Helpers and apprentices shall work under the supervision of skilled
tradesperson or other supervisory personnel.

O. Change Orders. This Contract may be amended by change order at

any time provided that the change order makes specific reference to
this Contract and is executed in writing by both the Contractor and the
Owner. The change order will not invalidate this Contract, nor relieve
or release the Contractor or the Owner from their respective
obligations under this Contract. The change order may take changes in
the time allowed for completion of the work of changes to the work
write-up. The work thereunder shall not start until the Contractor has
been notified in writing that the change has been approved by the
Owner. Any work performed by the Contractor without written
authorization of the Owner is at the Contractor’s own risk. If the
Contractor’s proposal fails to specify a unit price, the Owner shall
calculate the change based on the Contractor’s costed work write-up.
The cost of additional work and materials under any change order shall
be the responsibility of the Owner.

P. Inspection and Final Payments. Periodic inspection shall be performed

by the Owner or his authorized representative. Upon completion of
work pertaining to this contract, the Contractor shall notify and arrange
for an inspection of the work by the Owner or his authorized
representative. If all work is satisfactorily completed, in the reasonable
judgement of the Owner, the Owner shall prepare a completion or
acceptance certificate. Should an inspection reveal that the work is not
completed and/or is not satisfactory; the owner shall notify the
Contractor of the deficiencies through a “Final Punch list” and will
request that Contractor indicated what action will be under taken to
complete the work. No final payment shall be authorized by the Owner
until the work is completed, and a re-inspection by the Owner.

Q. Standard of Work and Codes. The Contractor shall perform all work in
a good and workmanlike manner and in conformance with all
applicable government code provisions, whether or not specifically
mentioned in the work write-up and drawings for the work.

9
R. Clean-Up. On a daily basis, the Property must be kept free from the
accumulation of waste materials and rubbish. All tools, construction
equipment, machinery and surplus materials shall be removed from the
job site and disposed of by legal means. Final payment shall not be
authorized until the Contractor has cleaned the property as required by
this section.

S. Guarantees and Warranties. The Contractor warrants and guarantees

to the Owner that all Contractor supplied materials used are of good
quality, free from faults and defects except for the Owner supplied
materials and salvaged materials as listed in Item III-C of this Contract.
All work not conforming to these standards and not in conformance
with the work write-up shall be considered defective. The work
performed by the Contactor is to be guaranteed for a period of one (1)
year from the date of final acceptance of all the work required by the
Contractor.

T. Separate Contracts. Owner reserves the right to perform construction

or other operations related to the project and to award separate
contract in connection with other portions of the project. Contractor
shall participate with other separate contractors and Owner in
coordinating their construction schedule.

U. Restriction. The Owner shall not be allowed to use or occupy the

building or structure and parts thereof not until the following shall be
accomplished and or resolved.

1. Termination of Work and acceptance thereof by the

Owner is executed stating that the said building is
constructed in accordance with the plans and
specifications.
2. Release of the Final Payment and Retention Money.
3. Resolved dispute between the Contractor and the Owner
as here below stated.

V. Dispute Resolution. Should any dispute arise concerning (a) the intent
or meaning of the work described in the work write-up or any change
order, (b) the quality of workmanship or materials, (c) the value of any
work, (d) payment for work, or (e) for other reasons pertaining to the
terms and conditions of the Contract, the parties agree that except for
disputes and claims that may be brought in the Court of Numancia and
for which a party is not entitled to a trial by jury, and except as
necessary to enforce the mediation and arbitration obligations of this
Section, all disputes or claims arising out of this Contract shall be
resolved through mediation or arbitration as specified in this section as
the exclusive remedy for resolving such disputes or claims.

1. ARBITRATION: All claims, disputes and other matters on

questions arising out of this Contract or the breach
thereof shall be decided by arbitration in accordance with
the Construction Industry Arbitration Law (Executive
Order No. 1008) under the Construction Industry

10
 Arbitration Commission (CIAC). The award rendered by
the arbitrators shall be final, and judgment may be
entered upon in accordance with applicable laws in any
court of competent jurisdiction.

2. The parties agree that any mediation or arbitration

brought pursuant to this section shall be confidential and
no details, descriptions, settlements or other facts
concerning such mediation or arbitration shall be
disclosed or released to any third party without specific
written consent of the other party or parties unless
required by law or court order in connection with
enforcement of any decision on such arbitration.

W. Hold Harmless. It is expressly understood that the Contractor shall

indemnify and hold the Owner harmless from any claims, suits, action,
damages and costs of every name and description arising out of, or
resulting from, the Contractor’s acts or omissions in its performance of
the work to be rendered by the Contractor under this Contract.

X. Miscellaneous. This Contract becomes effective and binding when

signed by the Contractor and the Owner.

IV. OWNER’S RESPONSIBILITIES

A. Owner shall permit the Contractor to construct, install temporary

facilities, such as but not limited to, labor barracks, site office, and
storage area, as reasonably necessary to carry out and complete the
work.

B. The Owner may employ an owner’s representative to work full-time on

site to check and assure the quality of materials and workmanship of
every scope of works.

V. TERMINATION BY OWNER FOR CAUSE

A. The owner shall have the right to terminate this Contract without
process or action at law, by notice to the Contractor in writing sent
registered or certified mail to the Contractor’s last known address,
should the Contractor (a) become insolvent or declare bankruptcy, (b)
fail to start or make satisfactory progress on the work to be performed
under this Contract, (c) fail to comply with written orders of the owner
which are consistent with the terms of the Contract, (d) perform a new
unsatisfactorily such work as has been rejected by the owner, (e) carry
on the work in a manner contrary to this contract, or (f) otherwise fail to
perform its obligations under this Contract.

B. The mailing of such notice shall constitute notice to the Contractor

under the terms of the Contract. Upon receiving said notice, the
Contractor shall vacate the premises and quit any work in progress or

11
 any parts specified in said notice. The Owner may complete the work
by awarding another contract with the funds remaining in the Owner’s
account. The Contractor shall be entitled to payment by the Owner for
work performed only to the extent of the difference between the
Contract price and the cost to complete the work by another contractor
after the Contract is terminated.

VI. NOTICES

Notices to the parties shall be in writing and directed as follows:

CONTRACTOR: AR. JUSTINE ALLISON S. ERENEA

Architect
OWNER: MRS. JENELYN SALVE B. CAJURAO
IN WITNESS WHEREOFF, the parties have caused this Contract to be
signed and duly attested to by witnesses.

Name of Contractor: AR. JUSTINE ALLISON S. ERENEA

Architect
Signature of Contractor:
Date:______________________
Address of Contractor: Numancia, Aklan

Name of Owner: MRS. JENELYN SALVE B. CAJURAO

Signature of Owner/ Authorized Representative:
Date:______________________
Address of Owner: New Washington, Aklan

SIGNED IN THE PRESENCE OF:

____________________________ _______________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES }

Municipality of ________________}S.S.

BEFORE ME, this _____ day of ________________2023, personally appeared be known to be the same
person who executed the foregoing instruments consisting of Eight (8) pages whereon the acknowledgement is
written and acknowledged to me that the same is their free will and deed, exhibiting to me their Community Tax
Certificate as follows:

12
NAME CTC No. Place Issued Date Issued
JUSTINE ALLISON S. ERENEA __________ ____________ _________
JENELYN SALVE B. CAJURAO __________ _____________ _________

WITNESS MY HAND AND NOTARIAL SEAL on the date of the place first above written.
Doc. No. :
Page No. :
Book No. :
Series of 2023

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