Construction Agreement

CONSTRUCTION AGREEMENT
This Construction Agreement is being entered into between MR. & MRS.
JOSHUA GUTIERREZ (“Owner”) and ENGR. RICHARD
GONZAGA JR. (RS Engineering) (“Contractor”) (collectively, the
“Parties”). The effective date of this Construction Agreement will be the
last date of signature below.
This Construction Agreement, along with incorporated documents

referenced herein, sets forth the terms and conditions agreed to between
the Parties relating to continuation of the construction of ROOFING OF
BUNGALOW RESIDENTIAL by Contractor for Owner.
TERMS AND CONDITIONS
Article 1 – Parties and Property
1.1. Owner is MR. & MRS. JOSHUA GUTIERREZ, the legal owner
of the property on which construction will be completed under this
Construction Agreement, with contact information as follows –
LOT 5-A-6 (E) CASA MIA 2,
MANGAN-VACA
SUBIC, ZAMBALES
+639983812307
1.2. Contractor is ENGR. RICHARD GONZAGA JR. (RS
Engineering) is a duly licensed civil engineer in good standing, with
contact information as follows –
1328 SOLANO ST. CALAPACUAN
SUBIC, ZAMBALES
+639300822451
1.3. The site for the construction to be completed under this Construction
Agreement is as follows –
ASINAN PROPER
SUBIC ZAMBALES
Legal description –
TCT-61101
(hereinafter “Property”).
1.4. Construction Project shall mean the work that Contractor (and/or
Contractor’s agents) are obligated to perform for Owner as detailed within
the only available plans given/actual site conditions.
Article 2 – Compensation
2.1. In consideration for the work performed by Contractor on the

Construction Project, Owner will pay to Contractor the total sum of PHP
223,000 according to the progress set forth below, and subject to
modification on account of any change orders to the scope of work made
by the Parties according to the terms of this Construction Agreement.
2.2. Progress Billing shall be 50%, 40% and 10% consecutively and shall
be paid upon request of the Contractor and the approval of Owner.
2.3. Contractor will have the right to stop work and keep the Construction
Project idle if payments are not made to Contractor when due. If the work
is stopped for such reason for a period exceeding 7 days without payments
being made, Owner shall be deemed to be in default and Contractor may,
at its option, make a final demand for all payments due and owing, and
any additional expenditures for work performed, materials ordered or
supplied, or any other loss sustained. If payment is not made within 14
days thereafter, Contractor will be entitled to all legal remedies for breach
of this Construction Agreement.
Article 3 –Commencement, and Completion
3.1. Work on the Construction Project will commence no later than 7

days after the Effective Date of this Construction Agreement, or after
Contractor receives notice from Owner of approval of any construction
loan, whichever is later (“Commencement Date”).
3.2. The Construction Project is scheduled to be completed within

maximum of 1 month and minimum of 10 days of the Commencement
Date, unless modified by change order as defined herein.
Article 4 – Change orders
4.1. From time to time during the performance of work under this
Construction Agreement, there may be changes required or requested to
the scope of work, price, and time for completion, under this Construction
Agreement. All such proposed changes will be submitted to the other
Party in writing containing at least the following information: proposal
date, the change requested, explanation of how that will affect the cost or
time of completion, and signed by the proposing party. When both parties
have signed to acknowledge their approval of such a proposal, it will be
designated as a “Change Order” and will then be incorporated into this
Construction Agreement and is binding on both parties.
Article 5 – Additional provisions
5.1. Contractor will be responsible to properly dispose of all construction

materials and debris from the Property from the Commencement Date
until the date a certificate of occupancy is issued to the Owner.
5.2. Utility services to the Property during the time of construction will
be arranged for, and paid by, OWNER.
5.3. Contractor will not be deemed in breach of this Construction

Agreement or have liability to Owner for failure to perform obligations
under this Construction Agreement if the failure is due in whole or in
substantial part to strikes, acts of God, unavailability of specified labor or
materials, war, acts of terror, or other causes beyond the reasonable control
of Contractor.
Article 6 – Substantial Completion and Punch List
6.1. Contractor will provide notice to Owner when the Construction

Project is substantially complete. Owner will inspect the Construction
Project within 2 days after receiving such notice and deliver to Contractor
a “punch list” of deficiencies found on the Construction Project.
Contractor will promptly correct the matters identified on the punch list.
The Owner may withhold from final payment to the Contractor a
reasonable estimate of the cost to correct the punch list items, until such
items are corrected.
Article 7 – General terms
7.1. This Construction Agreement may not be assigned by either Party

without written consent of the other Party and such consent is not to be
unreasonably withheld.
7.2. Any notice required or permitted under the terms of this Construction
Agreement shall be provided to the contact information set forth in Article
1, above.
7.3. If any provision of this Construction Agreement is found to be

invalid, illegal, or unenforceable, the remaining portions shall remain in
full force and effect.
7.4. This Construction Agreement will be binding upon and inure to the
benefit of the Parties and, if applicable, to their trustee, successor, executor
or administrator, or heirs.
7.5. In the event of conflict between the documents incorporated into this
Construction Agreement, the specifications will take precedence over the
plans, and the plans will take precedence over this document.
7.6. This Construction Agreement, and the documents incorporated

herein at Section 1.4, and any change orders created per the process
outlined in Section 4.1, represent the entire agreement between the Parties
and can only be modified in writing signed and dated by both Parties.
Executed by the Parties on the date indicated below.
MR. AND MRS. JOSHUA GUTIERREZ ENGR. RICHARD B. GONZAGA JR.
(RS ENGINEERING)
_______________________________
DATE

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CONSTRUCTION AGREEMENT

This Construction Agreement, along with incorporated documents

TERMS AND CONDITIONS

Article 1 – Parties and Property

LOT 5-A-6 (E) CASA MIA 2,

1328 SOLANO ST. CALAPACUAN

2.1. In consideration for the work performed by Contractor on the

Article 3 –Commencement, and Completion

3.1. Work on the Construction Project will commence no later than 7

3.2. The Construction Project is scheduled to be completed within

Article 4 – Change orders

5.1. Contractor will be responsible to properly dispose of all construction

5.3. Contractor will not be deemed in breach of this Construction

Article 6 – Substantial Completion and Punch List

6.1. Contractor will provide notice to Owner when the Construction

Article 7 – General terms

7.1. This Construction Agreement may not be assigned by either Party

7.3. If any provision of this Construction Agreement is found to be

7.6. This Construction Agreement, and the documents incorporated

Executed by the Parties on the date indicated below.

MR. AND MRS. JOSHUA GUTIERREZ ENGR. RICHARD B. GONZAGA JR.

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