Complete Construction Contract Agreement Sample PDF

Preview

Summary

CONSTRUCTION CONTRACT AGREEMENTThis Construction Contract (hereinafter referred to as a “Contract”) made and entered into this 20 th day of January, 2022 by and between,PETER L. SIA., (hereinafter referred to as “Owner”) andCapstone Construction & Consultancy, represented by ENGR. JONATHAN V. SI...

Description

CONSTRUCTION CONTRACT AGREEMENT

This Construction Contract (hereinafter referred to as a “Contract”) made and entered into this 20 day of January, 2022 by and between, th

PETER L. SIA., (hereinafter referred to as “Owner”) and Capstone Construction & Consultancy, represented by ENGR. JONATHAN V. SILAYA (hereinafter referred to as “Contractor”); and WHEREAS the Owner desires to renovate his residence at the address known as Golden Village, Carmen, Cagayan de Oro City. WHEREAS the Contractor warrants being qualified to perform the work specified herein. NOW THERERFORE, in consideration of the mutual promises and premises herein contained, 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) (2) (3) (4)

Work Write-up and or specifications Contractor’s Proposal or Bill of Materials or Cost Estimate Working Drawings Minutes of Meeting (if applicable)

1

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, said sum being Six Million Eight Hundred Thousand Pesos (PhP 6,800,000.00). 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 30% of the total project cost equivalent to Two Million Forty Thousand Pesos (PhP2,040,000.00). C. FIRST & PARTIAL BILLING: First & Partial Billing shall be equivalent to 30% of the total project cost or equivalent to Two Million Forty Thousand Pesos (PhP2,040,000.00). This amount shall be released upon Thirty Percent (30%) project completion or the completion of the following items; a. Additional ground floor footings b. Footing Tie Beams c. Additional ground floor columns d. Stair case structural frame e. 2nd floor beam & slab retrofications f. 2nd floor wall steel frames g. Installation of 3D wall panels h. Plastering of 3D wall panels D. SECOND & PARTIAL BILLING: Second & Partial Billing shall be equivalent to 30% of the total project cost or equivalent to Two Million Forty Thousand Pesos (PhP2,040,000.00). This amount shall be released upon Sixty Percent (60%) project completion or the completion of the following items; a. Additional Wall Footings b. Additional Ground floor slab c. Ground Floor 4” CHB base wall d. Ground floor 4” CHB wall-additional e. Installation of roof & roof heat insulation f. Installation of door jambs g. Installation of ceiling frames h. Installation of stainless railings i. Installation of sewer and drainage piping network j. Installation of water lines k. New septic vault l. New catch basins 2

m. Installation of electrical conduits n. 2F water Proofing-Toilets & Baths E. THIRD & FINAL BILLING : Third & Final Billing shall be equivalent to 10% of the total project cost or equivalent to Six Hundred Eighty Thousand Pesos (PhP680,000.00). This amount shall be released upon Ninety Percent (90%) project completion or the

completion of the following items; a. b. c. d. e. f. g. h. i. j.

Installation of glass & aluminum works Installation of aluminum cladding Installation of Door panels Installation of tiles Installation of PVC spandrel ceiling Installation of GI spandrel ceiling Reconfiguration of front fence Installation of new gates & automated system Primer painting Installation of cabinet carcass

F. RETENTION: All payments made by the Owner to the Contractor shall be subjected to 10% retention. Retention money shall be released after Thirty (30) calendar days from the date of turn-over of the project. 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. 1-unit Two storey residential building, b. Front fence, c. Automated vehicle gate C. All materials and consumables shall be supplied by the Contractor. Ordering of materials shall be taken progressively as the need arises. 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 works shall be computed by employing the material unit costs indicated in the Bill of Materials (BOM) plus 45% of MC to cover

3

for the labor cost and 20% of MC for the cost of overhead, tax, contingencies, and contractor's fee. F.

First day of construction shall be considered Seven (7) days after the receipt of the advance payment.

G. 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 Record Sheets” or log book. H. Permits & Licenses-(Not included) I.

Utilities. Cost of utilities such as power and water needed to complete this project is under the account of the Contractor.

J.

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

K. Temporary Work Stoppage- The Contractor may call a “Temporary 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. L. Supervision. The supervision of all work, including coordination of all 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 a skilled tradesperson or other supervisory personnel. M. 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 4

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. N. 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 judgment 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. O. 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. P. 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 stored at the property must be neat and orderly. Upon the completion of work, all glass surfaces shall be cleaned and the work left “broom clean” or its equivalent, except as otherwise specified. All debris, trash, waste and surplus material 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. Q. 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. R. Separate Contracts. Owner reserves the right to perform construction or other operations related to the project and to award separate contract in connection with 5

other portions of the project. Contractor shall participate with other separate contractors and Owner in coordinating their construction schedule. 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.

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 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 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.

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. 6

V. 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 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: ENGR. JONATHAN V. SILAYA General Manager- Capstone Construction & Consultancy OWNER:

PETER L. SIA 7

IN WITNESS WHEREOFF, the parties have caused this Contract to be signed and duly attested to by witnesses.

Name of Contractor: ENGR. JONATHAN V. SILAYA General Manager- Capstone Construction & Consultancy Signature of Contractor: Date:______________________ Address of Contractor: Igpit, Opol, Misamis Oriental

Name of Owner:

PETER L.SIA Signature of Owner/ Authorized Representative: Date:______________________ Address of Owner: GOLDEN VILLAGE, CARMEN, CAGAYAN DE ORO CITY SIGNED IN THE PRESENCE OF:

_______________________________________

____________________________________

ACKNOWLEDGEMENT REPUBLIC OF THE PHILIPPINES } City of Cagayan de Oro }S.S.

BEFORE ME, this _____ day of ________________2022, personally appeared be known to be the same person who executed the foregoing instruments consisting of Nine (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: NAME

CTC No.

Place Issued

Date Issued

JONATHAN V. SILAYA

__________

____________

___________

PETER L. SIA

__________

_____________

___________

WITNESS MY HAND AND NOTARIAL SEAL on the date of the place first above written.

8

Doc. No. : Page No. : Book No. : Series of 2022

9...