Two Storey House Construction Contract

PROJECT TITLE: Proposed Two (2) Storey Residential with three (3) bedrooms

LOCATION: Lot 19 Blk 03 San Jose Village, Oriental Mindoro

OWNER: Mr. and Mrs. Erwin B. Macabenta


GENERAL CONDITIONS OF THE CONTRACT

This agreement is made and enters into this June 7, 2001 by and between Jc Mer Navarro, ABC Home Builders Consultant, and Mr. and Mrs. Erwin B. Macabenta . The BUILDER will be the ABC Home Builders with office address at Mer Building, Sta Cruz, Oriental Mindoro.

This Agreement is subject to the following terms and conditions:

1. Project

The Project is a Two Storey Residential with fence to be finished at Lot 19 Blk 03 San Jose Village, Oriental Mindoro with a lot purchase from the BUILDER and construction cost of Three million three hundred ten thousand pesos only (Php 3,310,000.00) to be paid by the OWNER (Mr. and Mrs. Erwin B. Macabenta)

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 BUILDER 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 THREE MILLION THREE HUNDRED TEN THOUSAND PESOS only (Php 3, 310,000.00) construction cost and lot cost.
Reservation fee of Php ___________ will be deducted on the total project 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 Php __________.The said down payment will be deducted on total project cost.

The down payment will be used as mobility fund and to cover materials and labor expenses for the project. The remaining balance of Php _______ will be paid by Pag-ibig fund housing loan.

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

Reservation Fee – (Php _____________)
Down Payment upon Signing of Contract (Php ___________ )
First Billing (Pag-ibig loan) – Php __________
Second Billing (Pag-ibig loan) – Php __________
Third Billing (Pag-ibig loan) – Php __________
Four Billing (Pag-ibig loan) – Php __________

If the Pag –ibig loan is not on time for their release of loan ,the contractor has the right to stop the construction 20 days prior to the expected release of loan set by Pag-ibig. Or the owner may provide payment to continue the house construction.

5. Pag-ibig Loan Application

Processing fee, appraisal fees, notary fees, registry of deeds payment, BIR payment and other fees related to Pag ibig loan application shall be shouldered by the OWNER/BORROWER (Mr. and Mrs. Erwin B. Macabenta).

6. 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 .

7. Warranty

Warranty: One (1) year from the date of final acceptance of the project. The contractor shall replace defective job at his own expenses during the entire period.On the other hand ordinary wear and tear intentional or accidental breakage is excluded in the warranty.

8. Changes

There are alterations, additions, or omissions of work or materials specified or shown in the drawings during the progress of construction.

a. All changes on the approved plans shall be approved by LJI Home Builder’s Architect and the owner.

b. If such changes are made the corresponding value or amount must be agreed upon in writing or mutual between the OWNER and the BUILDER. The OWNER will be in charge of all the cost of labor and materials.

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

Conforme:

Mr. and Mrs. Erwin B. Macabenta, Owner

Engr. Jc Mer Navarro
Owner, Builder / Consultant of ABC Home Builders