Construction Contract Sample

PROJECT TITLE: Proposed Two (2) Storey with Four (4) Bedroom Residence

LOCATION: San Ruiz Subd, Olonggapo City

OWNER: Mrs. Lourdes dela Cruz


GENERAL CONDITIONS OF THE CONTRACT

This agreement is made and enters into this August 11, 2011 by and between JC Mer Navarro , JC Home Builders owner, and Mrs Lourdes dela Cruz and owner of Lot at San Ruiz Subd. Olonggapo City.

This Agreement is subject to the following terms and conditions:

1. Project

The Project is a Two Storey Residential Structure to be finished at Sergio Santos Subd. Wakas, Pilar, Bataan with a construction cost of TWO MILLION SIX HUNDRED THOUSAND PESOS (Php 2, 600,000.00) to be paid by the OWNER.

2. Scope of Work

The BUILDER shall exclusively undertake, pursue and manage the completion of the project and shall likewise provide all the necessary materials, labor, tools and equipment necessary for the construction of the said project, and shall perform all such works in accordance with the approved plans and specifications, inclusive of, but not necessarily limited to the items set before this, see Succeeding pages.

The BUILDER shall not carry out extra or varied works without the permission and approval of the OWNER and/or his authorized representative. In the same manner any additional construction, revision i.e., not covered by the construction plans and scope of work specified, shall be subject to separate billings by the BUILDER.

All additional constructions and amendments to or changes in the plans and specifications from the date hereof and the corresponding costs thereof shall be subjected of a written agreement between the parties; and the amendments or changes shall have the effect of reducing or increasing the contract price hereinbefore stipulated, the same shall be correspondingly adjusted.

3. Contract Period / Time of Completion

The work to be performed under this agreement shall commence from and after the receipt by the BUILDER of all approved construction permits and licenses required for the project, and down payment by the OWNER.

The work shall be completed by the ARCHITECT within ONE HUNDRED EIGHTY (180) working days. Provided, however, that any delay of reason of force majeure of fortuitous event, or by reason of additional constructions or amendments to or changes in the construction shall be excluded.

4. Contract Sum

The OWNER shall pay to the BUILDER for the performance of this agreement the sum of TWO MILLION TWO HUNDRED THOUSAND PESOS ONLY (Php 2, 200,000.00) construction cost.
Upon signing of this agreement, from and after the receipt, and or the advice of the BUILDER, the OWNER agrees to pay a down payment of twenty percent (20%) of the total contract price which is Five Hundred Twenty Thousand Pesos (Php 520,000.00).
The down payment will be used as mobility fund and to cover materials and labor expenses for the project. The remaining balance of 80% amounting to Two Million and Eighty Thousand Pesos (Php 2,080,000.00) will be loanable through Pag-ibig Housing Fund. The OWNER has an obligation to process his/her housing loan while the BUILDER will provide the documents needed for the processing of his/her loan

The remaining balance will be paid in progress billing stipulated as follows:

1st Down Payment Upon Signing of Contract (Php 520,000.00)
First Billing (Pag-ibig Loan) – ______________
Second Billing (Pag-ibig Loan) – ______________
Third Billing (Pag-ibig Loan) – ______________
Final Billing (Pag-ibig Loan) – ______________

 

5. Guarantee

The OWNER and the BUILDER agree on the application of the following conditions for the faithful performance of the Contract/Agreement.
The BUILDER hereby guarantees that the project shall be constructed strictly in accordance with the scope of works and condition of this contract and shall make good any defect in materials and / or workmanship to the fault of the ARCHITECT/CONTRACTOR within Six Months after the full completion of the project.

6. Termination of Contract

Work under this contract may be discharge by performance if both parties are not able to comply with their respective obligations

 

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