CONSTRUCTION CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This Construction agreement made and executed this ___ th day of

_____________________________, by and between

_____________________________ , of legal age, single, Filipino, a resident of

Plaridel, Santiago City and duly represented
by_____________________________ , of legal age, married, Filipino and a
resident of _______________ hereinafter referred as the OWNER.
and
_____________________________ , of legal age, single, Filipino, with office
address at _____________________________ y, of legal age, married, Filipino
and herein referred as the CONTRACTOR.

WITNESSETH:

WHEREAS, The OWNER shall construct Ten (10) Units Two (2) Storey Apartment Building with Roof
deck located at Purok 3, Baluarte, Santiago City, Isabela.

WHEREAS, The CONTRACTOR presented and warranted to the OWNERS that she is capable,
competent, and a duly registered engineer and authorized by law to construct and to complete the
aforementioned Apartment Building in accordance with the plans and specifications 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 above-mentioned Apartment
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:

TERMS AND CONDITIONS:

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 CONTRACTOR in his capacity as the LICENSED ENGINEER shall
constitute as the Entire Agreement, to wit:
(a) Annex “A” - Architectural Plans consisting of ten (10) sheets;
(b) Annex “B” - Structural Plans, consisting of eight (8) sheets;
(c) Annex “C” - Electrical Plans, consisting of seven (7) sheets;
(d) Annex “D” - Plumbing Plans, consisting of four (4) sheets.
Any part of the Design and Contract Documents cannot be the changed by the parties to this Agreement
except upon the discretion of the CONTRACTOR if only improve, preserve and protect the beauty and
strength of the structure, provided that there be a personal conference and consultation with the OWNER
or her duly authorized representative to mutually discuss and agree upon the changes proposed by the
CONTRACTOR hereto;

However, any change/s after the lapse of Fifteen (15) days from the execution of this CONTRACT shall no
longer be entertained and shall be a ground for the effective termination of this Contract, without prejudice
to the rights the parties may have against each other as mandated by law.

ARTICLE 2. SCOPE OF WORK. The contractor shall implement the proposed construction at Purok 6,
Calaocan, Santiago City.

The CONTRACTOR shall:

a. Be responsible in providing adequate labours in carrying and completing the scope of

work including technical knowhow and supervision of an Engineer and other
professionals therein;
b. Perform all the work stipulated and required under this Contract;
c. Secure the permits and licenses (Building Permits, Occupancy Permit and other
incidental permits) required by the City Building Official of the Local Government of
Santiago City at the expense of the OWNER and subject to the right of the OWNER to
examine the expenses incurred for said purposes and documentary proof thereof.

PROVIDED THAT, ALL MATERIALS required and needed for the construction of the Apartment
Building subject of this Contract shall be provided by the OWNER, this includes the engagement of sub-
contractors for the installation of Aluminum windows, provided that the same be with the approval of the
CONTRACTOR.
PROVIDED FURTHER, that in performing the stated Scope of Work and other matters relative to the
construction of the agreed Apartment building, the CONTRACTOR herein shall be free from CONTROL
of the OWNER, except as to the result thereof.

ARTICLE 3. TERMS OF PAYMENT. Payment for this Contract shall be based on the following:

a) Down payment. - Eighteen (18%) percent of the Total Contract Price shall be paid
immediately after the execution of this Contract.

b) The OWNER shall give to the CONTRACTOR corresponding monthly labor within
the FIRST DAY OF EACH MONTH. Should the OWNER incur delay in paying
monthly labor, the CONTRACTOR may instruct the stoppage of work without fault or
liability on her part. However, if said delay in payment would cause insurmountable
damage to the subject Apartment Building, the CONTRACTOR may take necessarily
steps to preserve the same, the COSTS of which shall be borne by the OWNER plus
damages.

In the event that the OWNER failed to pay the down payment, the CONTRACTOR may cease or
terminate this Contract without any liability/ies on her part.

ARTICLE 4. EXCLUSIONS. The OWNER-supplied materials such as Air Conditioning units, Water
Tank, Fence, Wi-fi, Closed-Circuit Television (CCTV), CABLE TV, Telephone, Furniture and the like are
EXCLUDED from the obligation of the CONTRACTOR under this Contract except electrical materials
and plumbing fixtures and fittings provided in the Annexes “C” and “D” of Article 1 of this Contract

All item/s and/or material/s which is/are not included in the Design, Drawing Plans or Contract documents
and which are not discussed, approved and signed by the parties to this Contract shall be excluded from
their respective obligation.

All unsuitable, sub-standard, and poor-quality construction materials furnished and supplied by the
OWNERS may be rejected by the CONTRACTOR, provided that notice shall be given to the former. In
turn, the OWNER is bound to promptly made good, remedied, corrected, rectified, and replaced the said
unsuitable, sub-standard, and poor-quality construction materials at HER OWN EXPENSE.

ARTICLE 5. CONTRACT AMOUNT. The CONTRACT AMOUNT shall be ONE HUNDRED

SEVENTY-SIX MILLION SEVEN HUNDRED SEVENTY-FIVE THOUSAND PESOS (Php
176,775,000)

The OWNER shall pay the CONTRACTOR for the entire performance and supply of works, labor,
services and equipment stipulated in this contract in accordance with the agreed scheduled of payment
stipulated in the Article 3 of this contract.

The CONTRACTOR hereby guarantee and warrant the stability, strength and structural integrity of the
subject Ten (10) Units Two Storey Apartment Building with Roof deck within the period mandated by the
Civil Code of the Philippines and other Building Laws, Rules and Regulation.

The OWNER shall not incur any expenses above and beyond the aforementioned agreed contract
EXCEPT for addition or extra work caused by delays incurred by the OWNER.

ARTICLE 6. DEFECTIVE WORKS AND MATERIALS. All unsuitable, substandard and poor quality
construction materials shall be rejected the by contractor engineer to guarantee and warrants structural
stability, strength and integrity of Ten (10) Units Two Storey Apartment Building with Roof deck.

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.

ARTICLE 7. TIME COMPLETION. The CONTRACTOR warrant that the construction of the project
shall be completed within FIVE HUNDRED FORTY EIGHT (548) days, excluding Sundays and
holidays, counted by the date of issuance of the building permit and other related licenses by the City
Building Official of Local Government Unit or from the date the site is ready for construction as mutually
determined by the parties whichever come later.

The CONTRACTOR shall not be held liable for any delay incurred due to circumstances beyond her
control of such as but not limited to unavailability of materials, non-payment of monthly labor, fortuitous
events and the like.

ARTICLE 8. SAFE GUARD. The CONTRACTOR shall provide safe guard, 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 maybe mandated by applicable laws, rules and regulation.

ARTICLE 9. 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 communicated 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
all 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. (or higher)

No change orders or memoranda shall be implemented without the prior mutual discussion, approval and
signature by and between the parties.

ARTICLE 9. ESCALATION CLAUSE. It is agreed that the Contract Price stated in Article 5 of this
CONTRACT 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.

ARTICLE 10. VENUE OF COURT ACTION. Should any court action be instituted by the OWNER or
CONTRACTOR arising from this Contract, the parties hereby agree that the venue thereof shall be the
proper court in the province of Isabela.

IN WITNESS WHEREOF, the parties hereto have executed this contract this 14th day of January
2020 at Santiago City, Philippines.

_____________________________ _____________________________
Owner Contractor

SIGNED IN THE PRESENCE OF:

___________________________ _____________________________