Engr. Xhyrus JRMC

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CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Construction Agreement entered into and executed this ______ day of _______,
2020, in Tuguegarao City, Cagayan by and between:

JAMAICA REALTY & MARKETING CORPORATION, a corporation duly


organized and existing under the laws of the Philippines with principal office address
located at Grand Victoria Heights Subdivision, Libag Sur, Tuguegarao City, Cagayan
represented in this instance by ROMEL A. CABANTOG, Senior Vice President/COO
and JENNIFER D. CARAG Branch Manager, hereinafter referred to as the
“DEVELOPER”;
-and-
ENGR. VANDRICK XHYRUS JOHN G. PINGAD, a sole proprietorship with
principal address at #07 Maramag St., Parabba, Peñablanca, Cagayan, hereinafter referred
to as the “CONTRACTOR”.

WITNESSETH:

WHEREAS, the DEVELOPER has engaged the services of the CONTRACTOR to


undertake the scope of work described in Article II of this Agreement at GRAND VICTORIA
HEIGHTS SUBDIVISION, located at Barangay Libag Sur, Tuguegarao City, Cagayan;

WHEREAS, the Parties agreed that payment for services rendered by the
CONTRACTOR shall consist initially of property, hereinafter referred to as “offsetting lot”
and the balance of payment after deducting the value of the former shall be in monies paid in
accordance with the agreed schedule of payment;

NOW, THEREFORE, for and in consideration of the foregoing premises, mutual


covenants, terms and conditions provided hereunder, the Parties agreed as follows:

ARTICLE I
PROPERTY RESERVE FOR OFFSETTING

The parties agreed that the “offsetting lot” is located in Grand Victoria Heights
Subdivision with the following details to wit,

Block Lot Area Unit Total Lot


No. No. (sq.m.) Price/SQM Price

20 32 300 8,500.00 PHP 2,550,000.00

TOTAL VALUE OF OFFSETTING LOT PHP 2,550,000.00


Less reservation fee paid by the Contractor PHP 51,000.00
Net value of Offsetting Lot PHP 2,499,000.00
The cost of transferring the title over the “offsetting lot” in the name of the Contractor
shall be for the account of the DEVELOPER.

ARTICLE II
SCOPE OF WORK
DESCRIPTION AMOUNT

ENTRANCE ROAD COMPLETION


- SUBGRADE PREPARATION PHP 62,900.00
- BASECOURSE PREPARATION PHP 40,311.78
- PORTLAND CEMENT CONCRETE PAVEMENT PHP
1,605,648.32
- CONCRETE CURBS AND GUTTERS PHP 567,336.14
- CONCRETE SIDEWALK PHP 674,721.41

TOTAL PROJECT COST


PHP2,950,917.65

ARTICLE III
CONTRACT PRICE

The Parties agreed that the total contract price of the Project under this Construction Agreement
shall be valued at PESOS: TWO MILLION NINE HUNDRED FIFTY THOUSAND NINE
HUNDRED SEVENTEEN & 65/100 ONLY (PHP2,950,917.65).

ARTICLE IV
CONTRACT DOCUMENTS

The following documents shall constitute as an integral part of this Construction Agreement
subject to such modifications mutually agreed upon by both parties.
a.) Quantity and cost estimates, marked as “Annex A”
b.) Work schedule marked as “Annex B”
c.) Plans and Specifications marked as “Annex C”
d.) Schedule of Payment marked as “Annex D”

ARTICLE V
TIME OF COMPLETION

1. The work stipulated under this Construction Agreement shall commence on AUGUST,
2020 and shall be completed on NOVEMBER 2020 or within a period of 120 calendar
days.

2. The CONTRACTOR shall submit monthly weather chart as basis for the extension of
time of completion.

3. The CONTRACTOR, immediately after the contract has taken effect and upon receipt
of notice to proceed, shall undertake the work schedule. Such work schedule indicates the
approximate date each pay item will be stated and completed.

4. Failure on the part of the CONTRACTOR to complete each item of work on the last day
set on the work schedule, the CONTRACTOR shall be levied with 0.05% of the Total
Contract Price for every calendar day of delay on agreed date or period.

5. If the failure of the CONTRACTOR to comply with the above provision is attributed to
the DEVELOPER, the CONTRACTOR shall be entitled to an equitable adjustment of
completion time where the CONTRACTOR is obstructed or delayed in the prosecution
or completion of the work such as those stated in Article X-B2.
6. Failure on the part of the DEVELOPER to pay the CONTRACTOR as scheduled after
the completion of the project, the DEVELOPER shall be entitled to an equitable
adjustment of completion time where the COTRACTOR is obstructed or delayed in the
prosecution or completion of the work such as those stated in Article X-A2.

7. A final date of completion shall be agreed upon by the CONTRACTOR AND


DEVELOPER after all adjustments according to days pending has been computed. A
Certificate of Completion shall be issued by the CONTRACTOR.

ARTICLE VI
MANNER OF PAYMENT

1. The CONTRACTOR shall submit every 30th of the month or every 25% of the Total
Contract Price whichever comes first the billing of work accomplishment to the
DEVELOPER estimated to be not less than Seven Hundred Thousand PESOS
(PHP700,000.00) per month/billing to be applied to the “offsetting lot” as stated in
Article I.

2. The DEVELOPER’S Project Engineer and Regional Manager, after checking and
evaluating the billing of the CONTRACTOR shall forward the billing to SVP/COO for
approval.

3. The DEVELOPER shall withhold the amount equivalent to ten (10) percent of the total
contract price from the loan take out applied by the CONTRACTOR to guarantee the
correction of such imperfections which maybe discovered during the progress of the
work. However, said ten (10) percent retention money shall be released to the
CONTRACTOR six (6) months after completion of the work and issuance of
Certificate of Completion or after the warranty period has ended.

4. The DEVELOPER agrees to execute a Deed of Absolute Sale in favor of the


CONTRACTOR as soon as the latter has accomplished the project or upon issuance of
Certificate of Completion.

5. The CONTRACTOR agrees that time is of the essence in the performance of this
contract and in the event the CONTRACTOR fails to complete the project within a
period of three (3) months from date of issuance of notice to proceed, payment of work
done shall be made in the following manner:
Situation 1. Work accomplishment is greater than or equal to the to the value of the lot/s
subject of offsetting: The value of the lot will be applied to the value of the work
accomplishment and the difference or excess, if any, shall be paid by the DEVELOPER
within a period of EIGHT (8) months in equal monthly installment until fully paid after
completion of the work.
Situation 2. The work accomplishment is less than the value of the lot/s subject of
offsetting agreement: The value of the work will be applied to the value of the lot/s. The
unpaid balance on the lot/s will be paid by the CONTRACTOR to the DEVELOPER
within a period of EIGHT (8) months without interest. Any unpaid amount after the
lapse of EIGHT months shall be subject to penalty charges at the rate of Three Percent
(3%) per month of delay until fully paid.

ARTICLE VII
DEVIATIONS FROM THE ORIGINAL PLANS AND SPECIFICATIONS

Should the DEVELOPER require any deviation from the original plans and
specifications or any additional or other work to be done, or direct such work to be omitted, the
CONTRACTOR shall carry out such requirements upon receipt of the written directive and
after the value of such deviation shall have been computed and agreed upon by both parties. Any
change in value of the work by reason of the foregoing changes shall be added or deducted from
the contract amount accordingly.

ARTICLE VIII
EMPLOYER-EMPLOYEE RELATIONSHIP

It is understood and agreed that there is no employer-employee relationship existing


between the DEVELOPER and the CONTRACTOR. All employees engaged by the
CONTRACTOR to participate or assist in the execution of the works under this contract shall
be for all legal intents and purposes its employees.

ARTICLE IX
PERMITS AND FEES

The DEVELOPER shall levy and withhold from the CONTRACTOR any and all
taxes applicable in compliance with the provisions of the National Internal Revenue Code of the
Philippines and other related Government Tax requirements.

However, all licenses, permits and fees including Building Permit Fee, Electrical and
Plumbing Permit Fees which may be due to the Local or National Government, including
likewise, fees for the testing and inspection of the installation by all agencies having jurisdiction,
if any shall be for the account of the DEVELOPER.

ARTICLE X
SUSPENSION OF WORK AND TERMINATION OF CONTRACT

A.) CONTRACTOR’S RIGHT TO SUSPEND WORK OR TERMINATE CONTRACT

The CONTRACTOR may suspend work or terminate the contract upon giving fifteen
(15) days written notice to the DEVELOPER for any of the following reasons:

1. If an order of any court or other public authority caused the work to be


stopped or suspended for an aggregate period of Ninety (90) days through no
act or fault of the CONTRACTOR or his employees;
2. If the DEVELOPER failed to pay the CONTRACTOR in accordance with
the Manner of Payment as provided in ARTICLE VI.
3. If the DEVELOPER suspends the work without just cause for more than an
aggregate period of Fifteen (15) days without CONTRACTOR’S consent.

B.) DEVELOPER’S RIGHT TO SUSPEND THE WORK

1. SUSPENSION WITHOUT CAUSE

The DEVELOPER may at any time and without cause, suspend the work or any
portion thereof for a period of not more than an aggregate period of Fifteen (15) days
and shall fix the date on which work shall be resumed. The CONTRACTOR shall
resume the work on the date so fixed.

The DEVELOPER shall not suspend the work without just cause for more than an
aggregate period of Fifteen (15) days without the CONTRACTOR’S consent;
2. JUST CAUSE FOR SUSPENSION OF WORK

The DEVELOPER, by a written order, may direct the CONTRACTOR to stop the
work, or any portion thereof, in any of the following cases until the cause for such order
has been eliminated;
a. Unsuitable weather or other conditions considered unfavorable for the
execution of the work;
b. Failure of the CONTRACTOR to correct conditions which constitute danger
to his workers or to the general public; or to correct defective work;
c. Failure of the CONTRACTOR to carry out valid orders issued by the
DEVELOPER or to comply with any provision of the Contract, or his
persistent failure to carry out the works in accordance with the contract;
d. The necessity for adjusting the Drawings to suit site conditions found during
construction, or in case of a change in Drawings and Specifications;
e. Failure of the CONTRACTOR to supply sufficient skilled workmen or
suitable materials or equipment;
f. Failure of the CONTRACTOR to deliver to the DEVELOPER
supplied/furnished materials on time, where such failure is due to causes
beyond the reasonable control of the DEVELOPER;
g. Delay by the DEVELOPER in obtaining right of way, where such obligation
is assumed by the DEVELOPER under the Contract, and the delay is not due
to the fault or negligence by the DEVELOPER;
h. Force majeure or fortuitous event;
i. Peace and order problems; or
j. Any condition similar to the above beyond the control of the DEVELOPER.

The CONTRACTOR shall immediately comply with such order to suspend the work or
any part thereof for such period or periods and in such manner as the DEVELOPER may
direct, and during such suspension shall properly protect and secure the work.

C.) DEVELOPER’S RIGHT TO TERMINATE THE CONTRACT

The DEVELOPER may immediately terminate the contract, without prior notice
to the CONTRACTOR, upon the occurrence of any of the following events:
a. If CONTRACTOR is adjudged bankrupt or insolvent;
b. The CONTRACTOR repeatedly fails to supply, based on the
construction schedule, the sufficient number of skilled workmen or
suitable materials or equipment;
c. The CONTRACTOR repeatedly fails to make without just cause prompt
payments for labor, materials or equipment, and completion of the work is
being delayed;
d. The CONTRACTOR disregards the Laws or orders of any public body
having jurisdiction;

D.) DEVELOPER’S RIGHT TO PROCEED WITH THE WORK AFTER


REDUCTION IN CONTRACTOR’S SCOPE OF WORK; PARTIAL TAKE OVER
FROM CONTRACTOR
1. DEVELOPER’S right to carry out the work:

If the CONTRACTOR:
a.) Repeatedly fails to supply sufficient skilled workmen or suitable
materials or equipment;
b.) Repeatedly fails to make prompt payments for labor, materials or
equipment;
c.) Fails within a reasonable time after written notice of the
DEVELOPER to correct defective work or to remove and replace
repeated work; or

d.) Fails to perform the work in accordance with the Contract


(including requirements of the progress schedule);

The DEVELOPER may, after seven (7) days following receipt by the
CONTRACTOR of written notice and without prejudice to any other
remedy, the DEVELOPER may and without terminating the Contract,
make good such deficiencies. In such case an appropriate change order
shall be issued deducting from the payments then or thereafter due the
CONTRACTOR the cost of correcting such deficiencies, including
compensation of additional services made necessary by such default,
neglect or failure.

2. The CONTRACTOR, upon receiving notice of termination of the contract,


shall vacate the site and turn over the possession of the work, or the parts
thereof specified in the notice to the DEVELOPER. All materials, plants,
appliances and other essential equipment as may be needed for the
construction of the project, shall at the option of the DEVELOPER, remain
on the site until the work is completed and credit the CONTRACTOR a
reasonable rental for the use of the same.

3. The DEVELOPER shall then take over the work, and use such tools,
appliances and materials of every description as may be found at the site for
the purpose of completing the work.

4. Upon such termination of this Contract, the DEVELOPER will ascertain and
fix the value of the work completed by the CONTRACTOR and not paid for
by the DEVELOPER and of all usable materials of the CONTRACTOR
taken over by the DEVELOPER at the time of said termination.

ARTICLE XI
WARRANTY

The CONTRACTOR warrants the soundness and quality of work, free from faults and
defects, all in good working order and made in compliance and in conformance with the Contract
Documents stated in Article IV of this Construction Agreement. Therefore, the
CONTRACTOR binds himself liable for all faults, defects and complaints which may be lodged
by the DEVELOPER.

The limited warranty shall be six (6) months upon completion and turn-over of the
project.

ARTICLE XII
MISCELLANEOUS

It shall be the duty of the CONTRACTOR to comply with all the laws, ordinance and
regulations of both the Local and National governments applicable to or binding upon the
parties hereof, or to the project covered by this contract or to persons engaged in the prosecution
of this undertaking.
In the event of any dispute in the interpretation of the terms and conditions provided
herein, he same shall first be submitted for arbitration and the venue of litigation shall be the
Courts of Tuguegarao City, Cagayan.

IN WITNESS WHEREOF, the parties hereto have set their hands this _____ day of _____,
2020 in Tuguegarao City, Cagayan, Philippines.

JAMAICA REALTY & MARKETING CORPORATION


Developer
By:

JENNIFER D. CARAG ROMEL A. CABANTOG


Branch Manager SVP for Regional Operations
Region 2 & Engineering Head

ENGR. VANDRICK XHYRUS JOHN G. PINGAD


Contractor

Signed in the presence of:

_______________________________ _________________________________
ACKNOWLEDGMENT

Republic of the Philippines )


Tuguegarao City, Cagayan ) S.S.

BEFORE ME, a Notary Public in and for the said jurisdiction, this ______
day of ____________________ personally appeared:

NAME GOVERNMENT ISSUED ID


DATE/PLACE ISSUED

JAMAICA REALTY &MARKETING CORP.


By:
JENNIFER D. CARAG
ROMEL A. CABANTOG

ENGR. VANDRICK XHYRUS JOHN G. PINGAD

known to me and to me known to be the same persons who executed the foregoing
document referring to “Construction Agreement” and acknowledged to me that the same is
their free and voluntary act and deed of the principals herein represented for the purpose therein
stated.

This document consisting of nine (9) pages including this page on which this
acknowledgment is written, signed by the parties executing and their Two (2) instrumental
witnesses, at the foot of the instrument and on the left hand margin of the other pages.

WITNESS MY HAND AND SEAL on the date and place first above written.

NOTARY PUBLIC

My Commission expires _____________


PTR NO. ____________________________
TIN NO. ____________________________
IBP NO. ___________________________

Doc. No. ________________


Page No. ________________
Book No. ________________
Series of 2020

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