Philippines Construction Contract

Building a house in the Philippines starts with a GOOD PREPARATION:

STANDARD SERVICES PROPOSAL

I. FREE SERVICES:1. Meetings and consultations at the office
2. Consultations by telephone
3. Site inspections when not too far away
4. Meetings at your place when not too far away

II. PHASE 1 CONTRACT: Php 50,000(Site Inspection, Schematic Design, Revisions, Layout, Approval by Subdivision, Visit Hardware, Cost Estimate)

A. Site Inspection
We inspect your lot; (Anywhere in Philippines)
1. verify location and orientation of your house- and window positioning/alignment with the sun, shadow plus wind (this effects design)
2. verify soil-topology and neighbor-buildings (this effects design)
3. verify local government or subdivision's regulations/restrictions ('they all have their own different rules')
4. verify logistics/accessibility
5. verify availability of building-materials and manpower
6. verify source of electricity/water
7. take pictures
8. make a short report of our findings
9. Make recommendations (if necessary)

B. Design
PLUS included in the Php 50,000 is that we make a color 2D computerized floor plan and 3D perspective design of your house. By Philippine Law, the intellectual property rights of the design belong to the Philippine architect unless otherwise authorized.
Revisions of the design are free until you are happy.

C. Layout (If site is near)
We layout your plan on site (your lot) using different strings for ground and second floors. This way, you see actual sizes of rooms and the house as a whole. It is better to revise the plans on paper than wait for the actual construction which is costly.

D. Approval of the Design by the Subdivision
We will have the design approved by the Subdivision or the Homeowners’ association. This will assure Owners that your design will be ready for construction. All our designs however, are compliant with the National Building Code and other governmental regulatory board.

E. Visit Hardware Store
We invite you to visit a nearby hardware store for you to choose your materials. These chosen materials will be the basis of the cost estimates and materials specifications which will form part of the future contact. Or, if you are not around, we can take pictures of these materials and use them as a basis for estimates.

F. Cost Estimate
After this we can at least give you a good estimate of how much the cost to build will be. The itemized estimate (NOT just 'per square meter' like some other Philippine contractors do) includes materials specifications. In this method, Owner has options to upgrade or downgrade specified materials according to budget.

G. Contract Duration and Payment
Phase 1 contract is between 7 to 21 days, excluding revisions.
The initial payment is 100% deductible from future contract but is not refundable. Why not refundable? Because of the numerous services that we have enumerated above, especially design and cost estimate.


III. PHASE 2 CONTRACTS(Blueprints and Construction are two separated contracts)

After Phase 1 (A to G), Owners have the choice to continue to make the blueprints and construct the house.
Blueprints takes maximum 30 days and construction time is normally between 4 to 6 months (residential houses) after the permits are approved.

DOCUMENTS NEEDED FOR CONSTRUCTION IN THE PHILIPPINES:1. Copy of lot title or lot plan; either present or previous Owner
2. If lot is not owned; affidavit of consent from owner or contract of sale or lease contract
3. Tax declaration
4. Latest tax receipts
5. Owner’s or building permit applicant’s Community Tax Certificate (cedula)
6. Lot survey c/o subdivision
7. Soil exploration or soil bore test if project is 3 floors and above
8. Barangay clearance specific for construction
9. If Building permit applicant does not stay in Philippines, Special Power of Attorney (for construction purpose)

PROPOSED CONSTRUCTION AGREEMENT


Made as of the --th day of -- in the year of Two Thousand and Twelve,

Between

Mr. & Mrs. --, (Owner) with residence address at -- and with email address --@yahoo.com

and

Philippines Construction and Management Corporation (contractor)
with office address at GF, PCPD Bldg., 2332 Chino Roces Ave. Extension, Makati 1231


The Project is:

Proposed Two (2) Storey Residential Building with a total floor area = -- square meter and a One (1) Storey Residential Building with a total floor area = -- square meter based on the plans submitted and approved by Owner. Project is located --.


ARTICLE 1
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THE CONTRACT DOCUMENTS

1.1 The Contract Documents consist of this Agreement are Drawings, Specification, Cost Breakdown (attached), Construction Schedule, signed and sealed by respective professional architect, civil engineer, sanitary engineer, electrical engineer and mechanical engineer, all approved by Owner. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral.


ARTICLE 2
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THE WORK OF THIS CONTRACT

2.1 The Contractor shall execute the entire Construction Work described in the Contract Documents, except for Work not indicated in the Cost Breakdown or other Contract to be the responsibility of others.

2.2 Costs of materials as enumerated and required in the Cost Breakdown and Materials Specifications and Building Permits are all included in this Contract.

2.3 Cost of Labor to complete the construction and installation in the highest acceptable quality of all items found in Paragraph 2.2 are also included.

2.4 Other costs including tools, equipment, transportation, and other incidental cost to complete Paragraph 2.2 and 2.3 are incorporated herein.

2.5 The contractor will provide preconstruction services to come up with the schematic designs, preliminary drawings, final drawings, materials specifications, cost estimates, construction schedule, building permit forms, all signed and sealed by respective trade professionals.


ARTICLE 3
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DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

3.1 The date of commencement is the date from which the Owner remits his/her full construction down payment to the Contractor, or it shall be the date of this Agreement, as first written above, or upon receipt of the Notice –to-Proceed from Owner, which ever comes later.

3.2 The Contractor shall achieve Substantial Completion (90%) of the entire Work after One Hundred Eighty (180) days reckoned from Paragraph 3.1.


ARTICLE 4
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CONTRACT SUM, DOWNPAYMENT, PRECONSTRUCTION FEE AND PROGRESS PAYMENTS

4.1 The Owner shall pay the Contractor in current funds for the Contractor's performance of the Contract the total sum of PHILIPPINE PESOS: EIGHT MILLION THREE HUNDRED THOUSAND SIX HUNDRED SIXTY THREE ONLY (PHP 8,300,663.00)


SCHEDULE OF PAYMENTS

4.2 The 1ST down payment for the preparation of blue prints to be prepared and signed by respective professionals (Architect, Structural Engineer, Sanitary Engineer, Electrical Engineer and Mechanical Engineer) and processing of Building Permits, is equivalent to PHILIPPINE PESOS: FOUR HUNDRED NINETY FIVE THOUSAND THREE HUNDRED TWENTY TWO & 17/100 ONLY (PHP 495,322.17).

4.3 The 2nd down payment intended for the construction of the two (2) residential buildings which is equivalent to 50% of the remaining contract amount is PHILIPPINE PESOS: THREE MILLION NINE HUNDRED TWO THOUSAND SIX HUNDRED SEVENTY & 42/100 ONLY (PHP 3,902,670.42) and is due before the start of the construction. Validity of our offer is good until --.


PROGRESS PAYMENTS

4.4 Based upon the weighted percentage progress of the works, a Progress Accomplishment Billing will be submitted to the Owner by the Contractor, and the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

4.5 Progress Accomplishment Billing shall be every fifteen (15) days. or as follows:

Progress Accomplishment # 1, March 30,2011, Construction Stage and Hence forth- 1st Billing
Progress Accomplishment # 2, April 15,2011
Progress Accomplishment # 3, April 30,2011
Progress Accomplishment # 4, May 15,2011
Progress Accomplishment # 5, May 30,2011
Progress Accomplishment # 6, June 15,2011
Progress Accomplishment # 7, June 30,2011
Progress Accomplishment # 8, July 15, 2011
Progress Accomplishment # 9, July 30, 2011
Progress Accomplishment # 10, August 15,2011
Progress Accomplishment # 11, August 30,2011
Last Progress Accomplishment # 12, September 15, 2011

4.6 Provided the Progress Accomplishment is received by the Owner or her representative in person or thru emails not later than the day specified above, the Owner shall make payment to the Contractor not later than seven (7) days thereafter.

4.7 With each Progress Accomplishment Billing, the Contractor shall submit pictures or evidence required by the Owner to substantiate the actual progress of the Project.

4.8 Should the progress or any other payments becomes due and unpaid within seven (7) days, the Contractor has the right to pullout any equipment/manpower/materials from the site and any re-mobilization after will be charge for the account of the Owner.


ARTICLE 5
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CHANGES IN THE WORK

5.1 In calculating adjustments to this Contract, the term "unit cost" as used in the attached Cost Breakdown shall form as the basis of cost adjustments or at mutually agreed prices.


ARTICLE 6
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SUBCONTRACTS AND OTHER AGREEMENTS

6.1 Those portions of the Work that the Contractor does not customarily perform with the Contractor's own personnel shall be performed under subcontracts or by other appropriate agreements with the Contractor. The Contractor shall not be required to contract with anyone to whom the Owner has reasonable objection.


ARTICLE 7
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MISCELLANEOUS PROVISIONS

7.1 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing (not less than 10% per annum) from time to time at the place where the Project is located.

7.2 Delay in payments shall be considered time extension of the Contract equivalent to the number of days delayed by these payments.

7.3 The work may not be terminated by the Owner without due cause.

7.4 The warranty for the buildings applies only when the project is fully paid.

This Agreement is entered into as of the day and year first written above and is executed in at least three original copies of which one is to be delivered to the Owner, one to the Contractor.

_________________ ___________________

ACKNOWLEDGEMENT

Subscribe and Sworn to before me this Construction Agreement to be their lawful and willful act and both exhibited to me their Community Tax Certificates indicated below their names above. This document is composed of 3 pages including this acknowledgement and sketch plan.

Notary Public
Series 2012
Book No.
Page No.
Document No.