Category: House Construction

Choosing Contractor for your House Construction

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contractor constructionYou finally decided to have your own house but the problem is who will build your house. We know that it is very difficult to manage and supervise a house construction especially if you have no idea about the material and the specification to be used. So it is better to hire or look for a contractor or someone who will supervise the construction of your house. Here in the Philippines, some contractor is also the one who make the house plan and do the estimates. Choosing a wrong contractor can lead to delays and even legal matters.

The following are some tips on choosing the best contractor:

  1. Make sure that the contractor has licensed to work in your area. The contractor can be an engineer or architect, in this case, make sure that he has license to do the job.
  2. Choose a contractor that specializes in your type of project.  Research your chosen contractor to know if he is specialized in your project.
  3. Make sure that the work and materials to be used in the construction is elaborated clearly before starting the construction. Your contractor should provide the list of materials to be used in the construction as well as complete drawings with written specification.  It includes the cost, the brand to be used, approximate start and finish of dates. Check all items before signing the contract.
  4. Look for the sample work of the contractor. Sample work is more important than the references to see the quality of their work. Look for the contractor’s past project.
  5. Know the person behind the construction of your house. It is important to know the persons who will work for you. Usually, a contractor also subcontracts some jobs such as roofing, trussing, plumbing and electrical works. Make sure that their subcontractors are also trustworthy.
  6. Give rules and guidelines to your contractor before the works begin or even before signing the contract.  The contractor should know your expectations and limitations.

 

How to Apply for the Building Permit

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building permitBuilding permit is the authorization of the government to construct either residential or commercial building.  It is official certificate or document of permission issued by local authorities to a builder to construct, enlarge or change the building. It serves as an authorization of a specific structure at a particular site in accordance with the approved specifications and drawings.

The cost of the building permit is dependent on the location of the lot, size of the lot and the size of the floor plan as well as the total estimate cost.

Building permit is also needed when applying special power connection (SPC) to get temporary electric connection. After the house construction, you can apply for the permanent electric connection and occupancy permit in the municipal hall

Requirement to apply for a building permit here in the Philippines:

  1. House Plan sign by duly authorized person such as Architect, Electrical Engineer, Master Electrician and Civil Engineer
  2. Lot Title
  3. Real Property should be paid
  4. Barangay Construction Permit  to be acquired at your Barangay Hall
  5. Vicinity map (optional) depending on your location
    Just visit municipal hall in your place to acquire building permit and bring the requirements as well as necessary fees.  The zooning inspector will visit and evaluate the site of the house. The processing of building permit takes 5 to 10 days depending on your location.

Sample Construction Contract

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CONSTRUCTION CONTRACT:

I. PROJECT

The Project is a Two Storey  Residential Structure to be finished at Sta. Monica Subd., Makati City with a construction cost of TWO MILLION SEVEN HUNDRED THOUSAND PESOS (php 2, 700,000.00)to be paid by the OWNER (Mr. Amelito and Mrs. Cielo de Guzman), wherein the Construction is under Design-Build of Guaranteed Maximum Cost (UAP Doc. 207, RA. 9266).

II. SCOPE OF WORKS

The ARCHITECT shall exclusively undertake, pursue and manage the completion of the project under Construction of Design-Build of Guaranteed Maximum Cost 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 ARCHITECT 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 ARCHITECT.

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.

construction agreement

III. CONTRACT PERIOD / TIME OF COMPLETION

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

The work shall be completed by the ARCHITECT within ONE HUNDRED TWENTY (150) 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.

IV. CONTRACT SUM

The OWNER shall pay to the ARCHITECT for the performance of this agreement the sum of TWO MILLION SEVEN HUNDRED THOUSAND PESOS ONLY (php 2, 700,000.00) construction cost.

Upon signing of this agreement,     from and after the receipt, and or the advice of the ARCHITECT, the OWNER undertakes to immediately pay a TWENTY SEVEN PERCENT (27%) down payment to the ARCHITECT in the amount of SEVEN HUNDRED TWENTY THOUSAND PESOS (php 720,000.00), to be utilized as mobility fund, and to cover material and labor expenses for the project. Said payment will be deducted on total project cost. The remaining balance will be paid in progress billing stipulated as follows:
Down Payment………………………….27%     (Php 720,000.00)(Bank Loan)
First Billing after downpayment……..27%           (Php 720,000.00)(Bank Loan)
Second Billing…………………………..27%      (Php 720,000.00)(Bank Loan)
Third Billing…………………………….11%    (Php 300,000.00)
Final Billing…………………………….10%    (Php 240,000.00)(Bank Loan)
________________________________________________________________
Total……………………………………………………(Php 2,700,000.00)

The ARCHITECT shall submit an application for each payment to the OWNER with at least THREE DAYS before each payment for the progress billing falls due. In case of delay of payment sum of due completion time will be adjusted depending on the delay of payment.

V. GUARANTEES

The OWNER and the ARCHITECT agree on the application of the following conditions for the faithful performance of the Contract/Agreement.

The ARCHITECT 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.

VI. TERMINATION OF CONTRACT

The ARCHITECT has the right to terminate the contract or stop work if ordered by any court or other Public Authority, for a period of three months, through no act or fault of the ARCHITECT or anyone employed by him.

The ARCHITECT shall submit written notice or if ordered by any court or other public authority to the OWNER to stop work or terminate this contract/agreement and claim payment for all work executed, profit and damages/loss on the basis of the work completed.

The OWNER shall pay necessary payment to the ARCHITECT; one week after a notice of payment was given to the owner, the ARCHITECT has the right to stop the construction to any failure of payment by the OWNER.

Conforme:

Mr. Amelito and Cielo de Guzman
Owner

Arch. Emerson O. Munoz
Designer.Builder.Consultant

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)
CITY OF BALANGA                      )S.S.

BEFORE ME, a Notary Public for and in Balanga City, Bataan, on this_________________personally came and appeared:

CTC NO.                     DATE/PLACE ISSUED

ARCH. Emerson O. Munoz        __________________________       ____________________________
MR. Amelito de Guzman            __________________________       ____________________________

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same are their own free act and deed.

WITNESS MY HAND NOTARIAL SEAL, on the date and place above written.

Doc. No.¬¬______
Page No.______
Book No.______
Series of 2013

Planning to Construct a House

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two-storey houseWe dream to have our own house but we did not know how to start and what are the steps and procedures to do.  Of course, you have to own a lot before construction a house. Finalized your budget and knows what designs and what type of house do you like whether a bungalow type or two-storey house. Are you planning to avail loan either from bank, lending institution or Pag-ibig?

If you know the type of house as well as the floor plan you want, you can talk to the architect or draftsman to draw your house and do the perspective of your house.

Steps:

1.    Secure a house plan to be used by your supplier and contractor in order to construct your house.

2.    Go to your municipal office to apply for building permit.  Building permit is one of the requirement for the building a house. This document is a formal approval by the government as meeting the prescribed codes. It serves as an authorization to proceed with the construction of a specific structure at a particular site in accordance to approved drawings and specifications.

3.    Look for the contractor or skilled workers who will make your house.  Make sure that you will pick the best contractor with low cost estimate but quality work.  If you do not have a contractor, you can hired skilled worker such as mason and carpenter to do you house. Also, hire a person who will supervise your house and this person should be knowledgeable in civil works.

4.    Before signing a contractor agreement, make sure that the materials and labor specification are elaborated clearly. You can consult the contractor agreement to the person who is knowledge in term of civil works.

5.    Make sure to visit your house very often to see if the contractor follows the house plan as well as the materials and specification in the contractor’s agreement. If you have extra budget, you can hire consultant for your house.