CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This CONSTRUCTION AGREEMENT made and executed this 4th day of May 2023 in
the City of Paranaque by and between.

Spouses Rosean and Jacob Buenaventura, with residential address at Blk 3, Landscape
Area, UPS 4, Brgy. Marcelo Green Paranaque City, hereinafter referred to as the OWNERS;

-and-

SISON CONSTRUCTION, a single-proprietorship construction enterprise duly

organized and existing under the laws of the Philippines, with office address at xxx, Makati City,
represented by its Proprietor-Manager Engr. Paul Sison, hereinafter referred to as the
CONTRACTOR.

WITNESSETH: -

WHEREAS, the OWNERS, Spouses Rosean and Jacob Buenaventura, shall construct of
three-storey Residential Building with Roofdeck and Penthouse located at xxx, Taguig City, the
same to be funded by a construction/housing loan from a reputable Bank;

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

capable, competent, and a duly registered construction enterprise licensed and authorized by law
to construct and to complete the aforementioned Residential Building in accordance with the
plans and specification 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
abovementioned Residential Building.

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 and Contract Documents, copies of which are attached
hereto as Annexes “A” to “D” hereof, as prepared by Paul Sison in his capacity as the
LICENSED ENGINEER and MANAGER of the CONTRACTOR shall constitute as the
Entire Agreement, to wit:

(a) Annex “A” – Architectural Plans, consisting of three (3) sheets;

(b) Annex “B” – Structural Plans, consisting of two (2) sheets;
 (c) Annex “C” – Electrical Plans, consisting of two (2) sheets;
(d) Annex “D” – Plumbing Plans, consisting of three (3) sheets.

The DESIGNER/SIGNATORY of the Design and Contract Documents is also the

CONTRACTOR in this Agreement.

Any part of the Design and Contract Documents 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 and Contract Documents 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 DESIGNER/CONTRACTOR shall affix the signature of its duly

authorized Engineer on the As-Built Plans and

(c) The said changes shall be approved in writing by the OWNERS prior the
implementation thereof by the DESIGNER/CONTRACTOR;

The OWNERS shall be formally furnished by the DESIGNER/CONTRACTOR 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 Taguig City of (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:

(a) The original copies or duplicate original copies or certified true copies of both
the PRELIMINARY AND FINAL DESIGN AND CONTRACT
DOCUMENTS AND AMENDED VERSIONS THEREOF, if any, duly
discussed and approved/signed by the parties to this Agreement prior to the
official approval thereof by the City Building Official of the Local
Government of Taguig City;

(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 Taguig City, pursuant to applicable building and other
laws;
(c) The original copies or duplicate original copies or certified true copies of ALL
BUILDING AND OTHER INCIDENTAL LICENSES AND PERMITS
officially processed, approved, issued and released by the City Building
Official and other concerned offices of the Local Government of Taguig 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
PRELIMINA RY 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 Constructor at Taguig City.

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
Taguig 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 – Thirty Percent (30%) of the Total Contract
Price, the same to be paid on installment basis depending on the
actual dates of the releases of the construction/housing loan or
installments thereof by the lending Bank;
(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
(c) Retention – Five percent (5%) of the Total Contract Price to be
released upon Turn-Over to the OWNERS of the Finished Project and
the Occupancy of the Residential Building by the OWNERS.

ARTICLE 4. EXCLUSIONS – The OWNERS-supplied materials such as

Lighting Fixtures, Air Conditioning Units, Water Tank, Fence, WI-FI, CCTV, Cable TV,
Telephone, Furniture, and the like are excluded from the obligations of the
DESIGNER/CONTRACTOR under this Agreement.

All Items and/or Materials which are not indicated in the Design, Drawing Plans,
or Contract Documents and which are not discussed, approved and signed by the parties
to this Agreement shall excluded from their respective obligations.

ARTCILE 5. CONTRACT AMOUNT – The CONTRACT AMOUNT shall

be xxx MILLION PESOS (P999, 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 herebt guarantees and warrants the stability, strength

and structural integrity of the subject three (3)-storey Residential Building with
Roofdeck and Penthouse with the period mandated by the Civil Code of the Philippines
and other applicable building laws, rules and regulations.

The OWNERS shall not incur any expenses above and beyond the aformentioned
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 6. DEFECTIVE WORKS AND MATERIALS. – All defective

works discovered by the OWNERS on 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 the Article 6 of this Agreement, the CONTRACTOR hereby

guarantees and warrants the structural stability, strength and integrity of the subject
three (3)-storey Residential Building with Roofdeck and Penthouse within the period
mandated by the Civil Code of the Philippines and other applicable building laws, rules,
and regulations.

ARTICLE 7. THIRD PARTY LIABILITY nad 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 judicial, 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 an 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 Kind of Taxes of whatever nature
and kind, as well as any and all administrative and regulatory fess 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 natural justice.

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

The OWNERS shalll not be held liable for any and all of the aforecited
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 partis or entities arising
from the supply of materials, labor, or services rendered for the project.

The CONTRACTOR shall secure a CONSTRUCTION ALL RISKS

INSURANCE at its own expense for the benefit of and to secure, assure and protect the
OWNERS, as the assured party, from any and all claims, risks, suits, actions and
demands by any and all persons or entities arising from, by reason of, caused by, and due
to the subject construction activities.
 The said CONSTRUCTION ALL RISKS INSURANCE shall be secured by the
CONTRACTOR prior to or at the lates within seven days from the date of the execution
of this Agreement.

The CONTRACTOR shall furnish the OWNERS the original copies or duplicate
original copies or certified true copies of the said CONSTRUCTION ALL RISKS
INSURANCE and any an all of its related documents, memoranda, records, papers,
instruments, vouchers, official receipts and other proofs of payment of the premiums
thereof, the proofs of the execution and perfection of the said Insurance Contract, and the
like, prior to or at the latest within seven days from the date of the execution of this
Agreement.

ARTICLE 8. 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 communicatd 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 shall 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.

The CONTRACTOR shall be entitled to an amount equivalent to fifteen percent

(15%) of the total of the agreed costs to cover his profit margin and overhead expenses.

No change orders or memoranda shall be implemented without the prior mutual

discussion, approval and signature by and between the parties.
 ARTICLE 9. TIME OF COMPLETION. – The CONTRACTOR warrants that
the construction of the subject Project shall be completed within TWO HUNDRED
AND FIFTY (250) working days, excluding Sundays & Holidays, counted (a) from
the date of the issuance of the Building Permit and other Related Licenses by the City
Building Official and other concerned internal offices of the Local Government of Taguig
City or (b) from the date the Site is ready for construction as mutually determined by the
parties -- whichever comes later.

ARTICLE 10. 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 againts 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
jointly againts 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 sall exclusively bear any
and all costs 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.

Xxx, xxx.

Spouses xxx xxx

CONSTRUCTION
And xxx
Designer/Contractor
Owners
By:

Xxxx
Manager
WITNESSES:

_______________________
_______________________

ACKNOWLEDGEMENT

BEFORE ME in Xxx, Philippines on this ___th day of __________ 2023 personally

appeared:

Xxx – ID xxx;
Xxx – ID xxx; and
Engr. Xxx – ID xxx.

who are known to me and to me known to be the same persons who executed the
foregoing Construction Agreement consisting of ten (10) pages, including the page on
which this Acknowledgement is written, which Construction Agreement is signed by the
abovenamed parties on the margin of each page thereof, and who acknowledged to me
that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and place first above written.
 Notary
Public

Doc. No. ___

Page No. ___
Book No. ___
Series of 2023

Annexes:

Annex “A” – Architectural Plans, consisting of three (3) sheets;

Annex “B” – Structural Plans, consisting of two (2) sheets;
Annex “C” – Electrical Plans, consisting of two (2) sheets;
Annex “D” – Plumbing Plans, consisting of three (3) sheets.