UAP Document 401 provides the format for the Owner-Architect Agreement.

However, since
the adoption of the 2010 Standards of Practice (SPP) Documents by the PRBoA and the 2014
Architects Guidelines on Methods of Compensation and Schedule of Fees, the document has
not yet been amended or updated. Here is a sample format for the contract which
incorporated the 2010 SPP and 2014 Architects Guidelines. This sample contract can be used
for the basic or full detailed architectural and engineering design (DAED) services. You may
amend some provisions to suit your project requirements.

PROJECT : __________________
LOCATION : ___________________

OWNER-ARCHITECT AGREEMENT

THIS AGREEMENT, made and entered into this __ day of Month, Two Thousand and xxx by Mr.
________________ of legal age, Filipino and with postal address __________________, the
party of the First Part, hereinafter called the OWNER and between ____________, a duly
registered and licensed architect under the laws of the Republic of the Philippines with PRC
Registration No __________, of legal age, Filipino and with postal address at
________________________, the party of the Second Part, hereinafter called the ARCHITECT.

WITNESSETH,

That whereas the OWNER intends to build a (project title) building at (lot
number/street/barangay/municipality/city), hereinafter called the PROJECT.

NOW, THEREFORE,

The OWNER and the ARCHITECT, for and in consideration of the foregoing premises and of the
other covenants hereinafter named, agree as follows:

ARTICLE 1. SCOPE OF WORK

That the scope of work to be done by the Architect, as herein authorized by the Owner for the
subject Project herein referred to, consists of professional services for the following:
1.01 Site development planning (SDP) of the grounds of the building, including other
concomitant structures within the Project site, as may be determined by the Owner.
1.02 Basic (Regular) Detailed Architectural and Engineering (DA&E) Design of the Project to be
located at ________________________________.

ARTICLE 2. ARCHITECT’S BASIC SERVICES

The Architect’s Basic Services consist of the following:

2.01 Project Definition Phase

This phase involves the definition of the requirements of the project by the Owner. The
Architect in turn informs the Owner of the technical requirements of the project and the
concomitant professional fees. In this phase, the Architect:
2.01.01 consults with the Owner to ascertain the conceptual framework and related
requirements of the project and confirms such requirements with him.
2.01.02 gathers relevant information and data leading to the definition of the requirements of
the project, including the scope of the Architect’s services.
2.01.03 reviews and refines the owner’s space requirements and translates them into an
architectural program.
2.01.04 prepares an initial statement of probable construction cost.

2.02 Schematic Design Phase

This phase consists of the preparation of schematic design studies derived from the Project
Definition Phase, leading to conceptual plans. The Architect:
2.02.01 evaluates the Owner’s program, schedule, budget, project site and proposes methods
of project deliveries.
2.02.02 prepares the initial line drawings representing design studies leading to a
recommended solution, including a general description of the project for approval by the
Owner.
2.02.03 submits to the Owner a Statement of the Probable Project Construction Cost (SPPCC)
based on current cost parameters.

2.03 Design Development Phase

Based on approved schematics and conceptual plans, the Architect prepares:

2.03.01 the Design Development documents consisting of plans, elevations, sections and
other drawings,
2.03.02 outline specifications to fix and illustrate the size and character of the entire project as
to type of materials, type of structural, electrical, mechanical, sanitary, electronic and
communications systems.
2.03.03 diagrammatic layout of construction systems, and
2.03.04 an updated SPPCC for submission to the Owner.

2.04 Contract Document Phase

Based on the approved Design Development Documents, the Architect:

2.04.01 prepares the complete Contract Documents consisting of detailed designs and
construction drawings, setting forth in detail the work required for the architectural,
structural, electrical, plumbing/ sanitary, mechanical, electronic and communication works
prepared by the Architect and the respective professionals involved.
2.04.02 prepares Technical Specifications describing type and quality of materials, finish,
manner of construction and the general conditions under which the project is to be
constructed.
2.04.03 submits to the Owner seven (7) sets of all construction drawings and technical
specifications for purposes of obtaining a building permit.
2.04.04 updates the SPPCC based on changes in scope, requirements or market conditions.
2.04.05 assists the Owner in filing the required documents to secure approval of government
authorities having jurisdiction over the design of the Project.

2.5 Bidding or Negotiation Phase

2.05.01 In this phase, the Architect:

a. prepares the Bid Documents such as forms for contract letting, documents for construction,
forms for invitation and instruction to bidders, forms for bidders’ proposals, general / specific
conditions of contract, etc.
b. assists the Owner from the early stage of establishing a list of prospective Contractors to
awarding of the construction contract.

2.05.02 For competitive bids / procurements, the Architect:

a. furnishes complete sets of the Bid Documents for purposes of bidding in as many sets as
may be required to conduct a successful bidding. The said documents are loaned to bidders at
an amount sufficient to cover direct and indirect costs attendant to the preparation,
packaging, reproduction and delivery of the said documents.
The Bid Documents are the intellectual property of the Architect (Sec. 33 of R.A. No. 9266), and
must be returned by all entities acquiring bid documents. A bond may be required to assure
the return of the Bid Documents.
The Architect retains the sole ownership and copyright to the said documents (Sec. 33 of R.A.
No. 9266). As such, bidders must not reproduce nor use the documents for unauthorized
purposes. The Owner also must not use the documents for any other purpose other than the
project for which the Owner and Architect signed an agreement.
b. helps in organizing and conducting pre-bid conferences,
c. responds to questions from bidders,
d. assists the Owner in obtaining proposals from Contractors, analyzes bid results and
prepares abstract of bids, notice of award, notice to proceed and other construction
contracts.

2.05.03 For negotiated contracts, the Architect performs similar functions as in item 2.5.2 but
negotiates with one Contractor instead of many bidders.

2.06 Construction Phase

In this phase, the Architect performs the following:

2.06.01 makes decisions on all claims of the Owner and Contractors on all matters relating to
the execution and progress of work or the interpretation of the Contract Documents.
2.06.02 prepares change orders, gathers and turns over to the Owner written guarantees
required of the Contractor and Sub-Contractors.
2.06.03 makes periodic visits to the project site to familiarize himself with the general
progress and quality of work and to ascertain that the work is proceeding in accordance with
the Contract Documents. The Architect shall not be required to make exhaustive or
continuous 8-hour on-site supervision to check on the quality of the work involved and shall
not be held responsible for the Contractor's failure to carry out the Construction work in
accordance with the Contract Documents. During such project site visits and on the basis of
his observations, he shall report to the Client defects and deficiencies noted in the work of
Contractors, and shall condemn work found failing to conform to the Contract Documents.
2.06.04 determines the amount owing and due to the Contractor and issues corresponding
Certificates for Payment for such amounts based on his observations and the Contractor's
Applications for Payment. These Certificates will constitute a certification to the Client that
the work has progressed to the state indicated and that to his best knowledge, the quality of
work performed by the Contractor is in accordance with the Contract Documents. The
Architect shall conduct the necessary inspection to determine the date of substantial and final
completion and issue the final Certificate of Payment to the Contractor.
2.06.05 Should more extensive inspection or full-time (8-hour) construction supervision be
required by the Client, a separate full-time supervisor shall be hired and agreed upon by the
Owner and the Architect subject to the conditions provided in the SPP Document on Full -
Time Supervision. When the Architect is requested by the Owner to do the full time
supervision, his services and fees shall be covered separately in conformance with the
applicable and appropriate SPP Document.

ARTICLE 3. ARCHITECTS’ FEE AND MANNER OF PAYMENTS

3.01 That the Owner agrees to pay the Architect for professional services, a fee of
____________________, with other payments and reimbursements hereinafter provided,
exclusive of twelve percent (12%) Value-Added Tax (VAT), the said amount hereinafter called
the Basic Rate.

3.02 Payments to the Architect on account of the agreed Professional Fee shall be made by
the Owner on the different phases of the work of the Architect as follows:

3.02.01 Upon signing of the Service Agreement: An amount equivalent to 5% of the agreed
Professional Fee shall be paid by the Owner as engagement fee or as the acceptance fee of the
Architect that shall cover the mobilization component of the services. The Professional Fee
shall be computed based on the Statement of Probable Project Construction Cost (SPPCC) as
included in the Annex of the Service Agreement.

3.02.02 Upon the completion of the Schematic Design Phase: Upon completion and
submission of the documents under Schematic Design Phase as stipulated in the Service
Agreement, but not more than 15 days after submission of the documents to the Owner, the
Owner shall pay the Architect a sum equal to fifteen percent (15.0%) of the Professional Fee,
or a sum sufficient to increase the total payments on the fee to twenty (20.0%) percent of the
Professional Fee (amount paid under Section 3.02.01 shall be deducted from the total
amount). The Professional Fee shall be computed based on the Statement of Probable Project
Construction Cost (SPPCC) that shall be part of the documents to be submitted at this
particular stage.

3.02.03 Upon the completion of the Design Development Phase: Upon completion and
submission of the documents under Design Development Phase as stipulated in the Service
Agreement, but not more than 15 days after submission of the documents to the Owner, the
Owner shall pay the Architect a sum equal to twenty percent (20.0%) of the Professional Fee,
or a sum sufficient to increase the total payments on the fee to forty (40.0%) percent of the
Professional Fee (accumulated amount paid under Section 3.02.02 shall be deducted from the
total amount). The Professional Fee shall be computed based on the Statement of Probable
Project Construction Cost (SPPCC) that shall be part of the documents to be submitted at this
particular stage.

3.02.04 Upon the completion of the Contract Document Phase: Upon completion and
submission of the documents under Contract Document Phase as stipulated in the Service
Agreement, but not more than 15 days after submission of the documents to the Owner, the
Owner shall pay the Architect a sum equal to fifty percent (50.0%) of the Professional Fee, or a
sum sufficient to increase the total payments on the fee to ninety (90%) percent of the
Professional Fee (accumulated amount paid under Section 3.02.03 shall be deducted from the
total amount). The Professional Fee shall be computed based on the Statement of Probable
Project Construction Cost (SPPCC) that shall be part of the documents to be submitted at this
particular stage.

3.02.05 Bidding or Negotiation Phase: Within 15 days after the award to the winning bidder or
bidders the payment to the Architect shall be adjusted so that it will amount to a sum
equivalent to ninety (90%) percent of the Professional Fee, computed upon the lowest bona
fide Bid or Bids or upon the winning Bid Price.

3.02.06 Construction Phase: The remaining of the ten (10%) percent of the Professional Fee is
broken down as follows:
a) Five (5%) percent for Architect's Liability under the Civil Code, and
b) Five (5%) percent for the Periodic Construction Supervision (PCS)

Progress Billing can be done on the remaining ten percent (10%) of the Architect’s Fee based
on the original Statement of Probable Project Construction Cost (SPPCC).

Upon completion of the work (when Certificate of Completion is issued to Contractor), the
balance of the Architect shall be paid computed on the Final Project Construction Cost (FPCC).

6.4.7 The Owner can make partial payments during each of the various stages of the
Architect’s work, upon request of the Architect, provided that such payments are within the
framework of the manner of payments outlined above.

ARTICLE 4. THE OWNER’S RESPONSIBILITIES

4.01 Provide full information as to his requirements for the Project.

4.02 When necessary, designate a representative authorized to act on his behalf.
4.03 Promptly examine and render decisions pertaining to documents submitted by the
Architect to avoid unreasonable delay in the progress of the Architect’s work. The Owner
should issue orders to the General Contractor only through the Architect.
4.04 Furnish or direct the Architect to obtain at his expense, a certified survey of the site,
giving, as may be required, topographical and/or relocation surveys covering grades and lines
of streets, alleys, easements, encroachments and related information, boundaries, with
dimensions and complete data pertaining to existing buildings, structures, trees, plants,
water bodies, wells, excavations / pits, etc. and other improvements and full information as to
the available utility / service lines both public and private; zoning compliances, clearances,
deed/s of restrictions, encumbrances and annotations to titles, association guidelines and
standards, and soil investigations / tests, borings and test pits necessary for determining soil
and sub-soil conditions.
4.05 Promptly pay for architectural and all other engineering and allied services required for
the project.
4.06 Pay for the design and consulting services on acoustic, communication, electronic, and
other specialty systems which may be required for the project.
4.07 Arrange and pay for such legal, auditing, insurance, counseling and other services as may
be required for the project.
4.08 Pay for all reimbursable expenses incurred in the project as called for in Section 7: “Other
Conditions on Services” and all taxes including VAT (but not including income tax) that the
government may impose on the Architect as a result of the services rendered by the Architect
on the project, whether the services were performed as a natural person i.e. an individual
practitioner or as a juridical entity i.e. as a sole proprietorship, partnership or corporation.
4.09 If the Owner observes or otherwise becomes aware of anything that may impair the
successful implementation of the project, he shall give prompt written notice to the Architect.

ARTICLE. 5. PROJECT CONSTRUCTION COST

Project Construction Cost (PCC) as herein referred to, means the cost of the completed
building to the Owner, including the structure, plumbing/sanitary and electrical fixtures,
mechanical equipment, elevators, escalators, air-conditioning system, fire protection system,
alarm and clock system, communications and electronic system, elements attached to the
building and all items indicated in the plans, designs, drawings and specifications prepared by
the Architect and his consultants. The construction cost of other items planned and designed
by the Architect, such as architectural interiors (AI) and site development plan elements and
other items of similar nature, additionally planned / designed by the Architect are also part of
the PCC.

The cost of materials used and the labor for their installation are part of the PCC. If these
items are furnished by the Owner below its market cost, the cost of the material and labor
shall nonetheless be computed on the basis of the current (and fair market value) costs.

The PCC does not include any of the fees for the Architect, the Engineer, the Specialist
Consultants or the salaries of the construction inspectors.
ARTICLE 6. BASIC FEE AND BASIC RATE

The “Basic Fee” and “Basic Rate” refers to the compensation to the Architect on account of his
delivery of the Regular or Basic Services referred to in Article 2. Where the Architect has to
render more than the regular or basic services, it shall be the subject of a special additional
charge commensurate with the special services required. Such special charge shall be in
additional to the basic fee provided herein.

ARTICLE 7. OTHER EXPENSES CHARGEABLE TO THE OWNER

7.01Government Taxes on Service: The Architect’s Fee is a net amount. Any tax (exclusive of
income tax) that the national and/or local government/s may impose on the Architect as a
consequence of the services performed for the project shall be paid by the Owner.

7.02 Different Periods of Construction: If portions of the building/s are erected at different
periods of time, thus increasing the construction period and Architect’s burden of services,
charges pertaining to services rendered during the Construction Phase shall be adjusted
proportionately. When the suspension of construction exceeds a period of six (6) months, the
fee for the remaining works shall be doubled.

7.03 Services of Specialist Consultants: If the Owner requires the services of specialist
consultants, they shall be engaged with the consent of the Architect. The cost of their services
shall be paid for separately by the Owner and shall not be deducted from the Architect’s fee.

7.04 Other Professional Services: that the Architect’s fee includes normal structural, electrical,
electronics, plumbing, sanitary and mechanical engineering services. Services for survey, soil
exploration and laboratory test are on the account of the Owner as stipulated in Article 4.04.
Other services that may be needed in order to complete the project such as services of
acoustic and illumination engineers / specialists, mural painters, sculptors, and other service
providers are to be recommended by the Architect for the Owner’s approval. Costs for these
services are to be paid for separately by the Owner and shall be subject to a coordination fee
payable to the Architect.

7.05 Separate Services: Should the Owner require the Architect to design movable or fixed
pieces of cabinets and other architectural interior (AI) elements, site development plan (SDP)
components, urban design elements, and other items of similar nature, the Owner shall pay
the Architect in addition to the Architect’s fee. The fee shall be based on an agreed method of
compensation.

7.06 Miniature Models: Should a scale model, 3D models and/or walk-thru presentation of the
architect’s design be necessary for exhibition and display purposes, they are to be
recommended by the Architect for the Owner’s approval. Costs for these services are to be
paid for separately by the Owner and shall be subject to a coordination fee payable to the
Architect.

7.07 Per Diems and Traveling expenses: A per diem of not less than __________ Pesos (P
0,000.00) plus traveling and living expenses shall be chargeable to the Owner whenever the
Architect or his duly authorized representative is required to perform services at a locality
beyond 50.0 kilometers (air, straight line or radial distance) from his established office as it
appears in the Architect’s letterhead.

7.08 Extra Sets of Contract Documents: The Architect is to furnish the Owner seven (7) sets of
Drawings, Specification and other Contract Documents. Cost for printing or reproduction of
extra sets of Contract Documents when required by the Owner or his representative is to be
paid by the Owner at a cost equivalent to ______________ Pesos (P00,000.00) per set.

7.09 Changes Ordered by Owner: If the Architect renders additional professional services due
to changes ordered by the Owner after approval of the Architect’s outputs, the Owner shall
pay the Architect for extra time, resources/ drafting, or other office expenses.

7.10 Work Suspended or Abandoned: If the work of the Architect is abandoned or suspended
in whole or in part, the Owner shall pay the Architect for the services rendered corresponding
to the amount due at the stage of suspension or abandonment of the work.

The primary service of the Architect is the preparation of architectural plans/designs,

specifications and other building construction documents. These are sets of detailed
instructions that shall serve as the basis for the General Contractor to implement the project.
Once the Architect has prepared all these documents, the Architect has completed the
Detailed Design and Contract Documents Phase of his services, which is equivalent to Ninety
percent (90%) of his work.

When the Owner therefore fails to implement the plans and documents for construction as
prepared by the Architect, the Architect is entitled to receive as compensation the sum
corresponding to ninety percent (90%) of the Architect’s fee
ARTICLE 8. FULL-TIME SUPERVISION

Upon recommendation of the Architect and with the approval of the Owner, full-time
construction supervisors as will be deemed necessary shall be engaged and paid by the
Owner. If no Project / Construction Manager is present, the full-time construction supervisor
shall be under the technical control and supervision of the Architect and shall make periodic
reports to the Owner and to the Architect regarding the progress and quality of the work done.

ARTICLE 9. ESTIMATE

Any SPPCC or any Cost Estimate submitted by the Architect can attain only a certain degree of
accuracy. As the Architect has no control over the cost of labor and materials, or the many
factors that go into competitive bidding, he does not assume any professional responsibility
for such cost estimates, unless glaring errors or discrepancies are clearly evident.

ARTICLE 10. COST RECORDS

During the progress of work, the Owner shall furnish the Architect a copy of the records of
expenses being incurred on the construction. Upon completion of the project, the Owner shall
furnish the Architect a copy of the summary of all cost of labor, services, materials,
equipment, fixtures and all items used at and for the completion of the construction.

ARTICLE 11. DESIGN AND PLACEMENT OF SIGN

All signboards of the General Contractor, sub-contractors, jobbers and dealers that shall be
placed at the project site during the progress of construction shall be approved by the
Architect as to size, design and contents. After the completion of the project, the Owner or his
building lessee shall consult the Architect for the design, size of all signboards, letterings,
directories and display boards that will be placed on the exterior or public areas attached to
the building project in order to safeguard the Owner’s interest. Nothing should be installed
inside or outside of the building that would compromise its safety and aesthetics.

ARTICLE 11. OWNERSHIP OF DOCUMENTS

All designs, drawings, models, specifications and other contract documents and copies
thereof, prepared, duly signed, stamped and sealed and furnished as instruments of service,
are the intellectual property and documents of the Architect, whether the work for which they
were made is executed or not, and are not to be reproduced or used on other work except
with a written agreement with the Architect (Sec. 33 of R.A. No. 9266).

ARTICLE 12. SUCCESSORS AND ASSIGNS

The Owner and the Architect each binds himself, his partners, successors, legal representative
and assign to the other party to this Agreement, and to the partners, successors, legal
representative and assigns of such other party in respect of all covenant to this Agreement.
Except, as above, neither the Owner nor the Architect shall assign, sublet or transfer his
interest in this Agreement without the written consent of the other.

ARTICLE 13. ARBITRATION

All questions in dispute under this Agreement shall be submitted in accordance with the
provisions of the Philippine Law on Arbitration and provided for in Art. 2042 of the New Civil
Code of the Philippines and the provision of the Republic Ac. No. 876, (but all litigations shall
be confined under the jurisdiction of city/municipality and both parties agree not to
adjudicate in any other areas for that matter.)

The Parties in dispute under this Agreement hereby agree to full performance of the
covenants contained herein.

IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first above
given, hereunto set their hands at the bottom of this page and on the left-hand margin of all
the other pages of this Agreement.

By:

NAME OF OWNER/CLIENT NAME OF ARCHITECT

OWNER ARCHITECT

SIGNED IN THE PRESENCE OF:

_________________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

City/Municipality of _______________ ) S.S.

Before me, a Notary Public in ______________ personally appeared Mr. _______________,

with Residence Certificate No. _____________ issued on _______________at ______________
and Architect _______________ with Residence Certificate No. _____________ issued on
____________ at ______________, both known to me and to me known to be the same
persons who execute the foregoing instrument and acknowledged to me that the same is their
free act and deed.

In witness whereof, I have hereunto set my hand and affixed my Notarial Seal this __ day
______________ in the City of ___________, Philippines.

________________________
NOTARY PUBLIC
Sample Construction Contract

This is a sample HOUSE CONSTRUCTION CONTRACT prepared by our law office. We are sharing it to our
readers/followers for legal research purposes.

CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This CONSTRUCTION AGREEMENT made and executed this ___th day of ________ 2016 in the City of Xxx
by and between:

Spouses xxx and xxx, with residential address at xxx, xxx, xxx, hereinafter referred to as the OWNERS;

-and-

Xxx CONSTRUCTION, a single-proprietorship construction enterprise duly organized and existing under
the laws of the Philippines, with office address at xxx xxx, xxx represented by its Proprietor-
Manager Engr. Xxx, hereinafter referred to as the CONTRACTOR;

WITNESSETH: -

WHEREAS, the OWNERS, Spouses xxx and xxx, shall construct of two-storey Residential Building with
Roofdeck and Penthouse located at xxx, xxx xxx, 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
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 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 xxx 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/CONTRACROR 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/CONRACTOR 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 Xxx City or (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 xxx 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 xxx 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 Xxx 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 PRELIMINARY 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 Construction at xxx, xxx,
xxx, xxx., Xxx.

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 Xxx 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
instalment basis depending on the actual dates of the releases of the construction/housing loan or
instalments 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
be excluded from their respective obligations.

ARTICLE 5. CONTRACT AMOUNT. - The CONTRACT AMOUNT shall be xxx MILLION PESOS (Pxxx, 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 hereby guarantees and warrants the stability, strength and structural integrity of the
subject two (2)-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.

The OWNERSs shall not incur any expenses above and beyond the aforementioned 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 in 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 Article 6 of this Agreement, the CONTRACTOR hereby guarantees and warrants
the structural stability, strength and integrity of the subject two (2)-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; and 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 juridical, 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 and 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 Kinds of Taxes of whatever nature and kind, as well as any and
all administrative and regulatory fees 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/or by equity 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 OWNERSs shall 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 parties or entities arising from the supply of materials, labor, or
services rendered for the project.

The CONTRACTOR shall secure a CONTRUCTION 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 CONTRUCTION ALL RISKS INSURANCE shall be secured by the CONTRACTOR prior to or at the
latest 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 CONTRUCTION ALL RISKS INSURANCE and any and 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 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.

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 (200) 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 Xxx 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 against 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
recovered against the CONTRACTOR and/or jointly against 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 shall exclusively bear any and all costs and
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:

___________________ ___________________

ACKNOWLEDGMENT

BEFORE ME in Xxx, Philippines on this ___th day of __________ 2016 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 eleven (11) pages, including the page on which this
Acknowledgment 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 2016.

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.

References

Jr., A. M. (2016, NOVEMBER 28). Retrieved from http://attylaserna.blogspot.com/2016/11/sample-

construction-contract.html

Overload, A. (2014). architectureoverload.blogspot.com. Retrieved from

https://architectureoverload.blogspot.com/2017/05/architect-owner-agreemen

PROJECT, T. L. (n.d.). lawphil.net. Retrieved from

https://lawphil.net/statutes/repacts/ra2004/ra_9266_2004.html