DRAFT

CONSTRUCTION AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Construction Agreement is entered into this 28
th
day of April, 2014 by and
between:
MARIO B. SAN ANDRES, of legal age, ilipino,
residing at ! " #ambler $t% air&iew, 'ue(on City,
hereinafter referred to as the Owner)
- and *
RESTITUTO G. LINQUICO, of legal age, ilipino,
residing at 1+0 Taal, ,ocaue, ,ulacan, hereinafter
referred to as the Conr!"or%
W#ne$$e%:
WHEREAS, -wner owns a one storey building utili(ed as a wet and dry mar.et, located
at /c Arthur 0ighway, ,gy 1awa, ,alagtas, ,ulacan%
WHEREAS, -wner desires to construct a second le&el to the e2isting structure and
se&eral stall on the ground floor of the building%
WHEREAS, -wner re3uires the ser&ices of a duly licensed, 3ualified and competent
contractor for construction wor.s as set forth in this contract%
WHEREAS, Contractor represents that it has the e2pertise, e2perience and resources to
pro&ide the ser&ices re3uired by the -wner%
NOW THEREFORE, for and in consideration of the foregoing recitals, the PARTIES
hereto co&enant and stipulate as follows)
ARTICLE &. SCOPE OF WORK !n' PAYMENTS
&.& or and in consideration of the sum of FOUR MILLION SI( HUNDRED
FIFTY THOUSAND )P%*+,,--,---.--. PESOS which the Owner agrees
to pay to Conr!"or, Conr!"or agrees to furnish all the LABOR !n'
EQUIPMENTS on/0, and underta.es to do the following construction
wor.s :
A. 4rug $tore
B. Cistern Tan.
C. Anaerobic ,affle #eactor 5A,#6 water treatment facility
D. /ar.et 72tension 51et 8 fi2ed6
E. 9ine Canal
F. 2
nd
loor /ar.et ,uilding: bare;finished
G. <round floor stalls
&.1 All wor.s shall be in accordance with the accompanying plans and
specifications and other related documents as prepared by the Architect
and appro&ed by the ,uilding -fficial%
&.2 #e3uest for payment shall be based on the periodic actual wor.
accomplished by the C-=T#ACT-#%
&.+ Any payment due and payable to the C-=T#ACT-# may be offset against
any li3uidated damages payable to the -1=7# under this Contract%
&.3 -1=7# shall ma.e final payment of all remaining sums due to the
C-=T#ACT-# within thirty 5"06 days after the inal turn o&er of the
pro>ect and with certificate of acceptance by the -1=7#%
&., inal and full payment of the Ten ?ercent 510@6 #etention fee shall be made
upon fulfilling the conditions set forth in the <eneral Condition%
ARTICLE 1 DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR
1.& Supervision of the Construction Work : The Construction wor. shall
be strictly super&ised and directed using C-=T#ACT-#As best and
highest s.ill and effort% C-=T#ACT-# shall personally super&ise the
construction wor. for the entire duration of the pro>ect% The
C-=T#ACT-# shall bear full responsibility for any and all acts or
omissions of those engaged in the Construction 1or. on behalf of the
C-=T#ACT-#%
1.1 Compliance with Labor Laws : C-=T#ACT-# shall assume all labor
responsibility for all personnel assigned to or contracted for the
performance of the Construction 1or. and agrees to comply with all its
obligations as employer to said personnel under all applicable labor laws%
1.2 Site Safety and Security : C-=T#ACT-# shall ta.e all reasonable
steps and legally re3uired measures at the site to comply with applicable
safety regulations and standards and to ade3uately protect the
Construction wor., stored materials and temporary structures located on
the premises% C-=T#ACT-#, shall, at all times safeguard and protect
-wnerAs property, its employees, tenants, passengers, consumers and
others people in the mar.et place by placing barricades around the
construction site% C-=T#ACT-# shall place boarding, screens, and
other safeguards so as to .eep the premises free from dampness, dirt,
dust or other damage and shall remo&e all such temporary protection
upon completion of the construction wor.% Construction $afety signages
shall be pro&ided as a precaution and to ad&ise the wor.ers and the
general public of the ha(ards e2isting in the wor.site%
1.+ Cleaning the Site : C-=T#ACT-# shall .eep the site reasonably clean
during performance of the construction wor.% Bpon final completion of
the construction wor., C-=T#ACT-# shall thoroughly clean the site
remo&e all waste, debris, trash and e2cess materials or e3uipment%
ARTICLE 2 TIME OF COMPLETION AND LIQUIDATED DAMAGES
2.& The C-=T#ACT-# shall commence the construction upon issuance of
=otice to ?roceed which will not be later than /ay 1, 2014% The wor.
shall be carried out regularly and without interruption% C-=T#ACT-#
shall complete the construction wor. co&ered by 9etters A4F under
Article 1 within the period of three months upon e2ecution of this
contract, and 9etter G until -ctober "1, 2014, unless pre&ented by
fortuitous e&ents, in which case the -1=7# may e2tend the time
accordingly%
2.1 Cn the e&ent that the construction is not completed within the aforesaid
period of time, the -1=7# is entitled and shall ha&e the right to deduct
from the C-=T#ACT-#As billing the amount based on unreali(ed
income, as follows :
i% or ?ro>ect A:7 * ?hp+,000%00 per day of delay
ii% or ?ro>ect :< : ?hp10,000%00 per day of delay
2.2 -1=7# shall permit the contractor to use, at no cost, e2isting utilities
such as electricity, and water as reasonably necessary to carry out and
complete the wor.%
ARTICLE + CHANGES, ADDITIONS, SUBTRACTIONS
+.2 The wor. and construction herein agreed to be done shall be sub>ect
to the direction of the -1=7#, who shall super&ise and certify the
wor. hereby agreed to be done%
+.+ Cn case of any defect in wor.manship which may become apparent in
the course of the construction, the C-=T#ACT-#, upon demand of
the -1=7# or his representati&e, shall, at the C-=T#ACT-#As own
e2pense tear down and replace such portion of the wor. done% The
cost of materials on the demolished portion shall be at the e2pense of
the C-=T#ACT-#%
+.3 $hould the -1=7# re3uire the C-=T#ACT-# to perform wor. o&er
and abo&e that re3uired by this Agreement, the additional cost shall
be added to the Contract Amount computed on the bare pre&ailing
cost of materials and labor plus a reasonable amount of profit%
9i.ewise, should the -1=7# order to omit wor. as re3uired by tis
Agreement, the cost of wor. omitted shall be deducted from the
Contract Amount based on the bare cost of materials plus a
reasonable mar. up corresponding to the amount of the profit%
ARTICLE 3. INSURANCE AND OTHER CONDITIONS
3.& The C-=T#ACT-# shall hire all wor.ers for the Construction wor. and
he shall solely be responsible for the payment of their wages% Cn case of
any accident or in>ury that may befall in the course of the construction, the
C-=T#ACT-# shall comply with the 1or.menAs Compensation Act, the
/inimum 1age 9aw, and all other laws, ordinances and regulations% The
C-=T#ACT-# shall li.ewise be responsible for any losses or in>ury that
the -1=7# or third party may suffer as a result or in the course of the
construction and shall discharge and;or render harmless the -1=7#
from any damages, costs, e2penses and;or compensation on account of,
or in any way resulting from or out of the construction%
This Agreement constitutes the entire understanding between the parties and may only
be modified, altered or amended only with the prior written consent of the party or
parties against whom, such modification, alteration, or amendment shall ta.e effect%
IN WITNESS WHEREOF, the parties ha&e e2ecuted this Agreement on the date and
place abo&e specified%
MARIO B. SAN ANDRES RESTITUTO G. LINQUICO
-wner Contractor
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ACKNOWLEDGMENT
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,7-#7 /7, this 5insert date6 in 5insert place6, personally appeared:
Name Govt Valid I No! Issued on Issued at
/ario ,% $an Andres
#estituto <% 9in3uico
.nown to me to be the same persons who e2ecuted the foregoing instrument consisting
of four 546 pages including this Ac.nowledgment, and who ac.nowledged to me that the
same is their &oluntary and free act and deed and those of the parties represented%
IN WITNESS WHEREOF, C set my hand and affi2 my notarial seal on the date and place
abo&e written%
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