DESIGN SERVICES CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT was made and entered into by and between:

(NAME OF CLIENT), of legal age, Filipino citizen, with residence at (ADDRESS)

and presently residing at SAME ADDRESS, hereinafter referred to as the OWNER;

-and-

KDS BUILDERS, with business name KAPPADELTASIGMA CONSTRUCTION,

organized under existing Philippine Laws with office address at Lot 13 Blk 14, Maple St.,
Annex 41-Upper, Brgy. Sunvalley, Parañaque City, represented by its Proprietor, ENGR.
KURT DARRYL LLAMERA SABELLO hereinafter referred to as the “DESIGN
CONSULTANT”;

WITNESSETH:

WHEREAS, the OWNER desires to construct a new structure on their parcel of

land at (SITE ADDRESS), in which the lot would have a TOTAL LOT AREA of (AREA
OF LOT IN WORDS) SQUARE METERS (XXX sqm) more or less, hereinafter referred
to as the “PROJECT”. Computation of gross area is based on the bearings provided in
the Transfer Certificate Title;

WHEREAS, the DESIGN CONSULTANT represented himself as being financially

sound and efficiently established, with the necessary experience, personnel and
equipment for the performance of this Contract;

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

parties hereby stipulate and agree on the covenants hereafter set forth the following
documents shall be attached, deemed to form, and be read and construed as part of this
Agreement, to wit:

I. DESIGN CONSULTANT’S PRELIMINARY RESPONSIBILITY

The DESIGN CONSULTANT shall investigate, identify and document the needs
of the CLIENT for use in the design of the PROJECT.

The DESIGN CONSULTANT shall assist the CLIENT in locating/analyzing the

proposed PROJECT site, evaluating its adequacy with regards to topography,
sub-surface conditions, utilities, development costs, climate, population, legal
considerations and other factors.

The DESIGN CONSULTANT shall recommend if deemed necessary, the services

of design engineers for the inspection and assessment of the site or existing
structure.

The DESIGN CONSULTANT shall inform the Owner of the technical

requirements of the Project. Thus, the DESIGN CONSULTANT shall:
 1. consult with the Owner to ascertain the conceptual framework and related
requirements of the Project and confirm such requirements with the Owner;
2. gather relevant information and data leading to the definition of the
requirements of the Project, including the scope of the Architect’s services;
3. review and refine the Owner’s space requirements and translate them into an
architectural program;
4. prepare an initial statement of probable construction cost;
5. assist the Owner regarding the preparation and furbishing of Engineering /
Architectural Documents required for “Construction Loan Application”;
6. make revisions on the Engineering / Architecture plans as per requirement
and assessment of the Financing Institution.

II. SCOPE OF WORKS

A. Initial Design Phase

This phase shall consist of the preparation of schematic design studies

leading to conceptual plans. The DESIGN CONSULTANT shall:

1. evaluate the Owner’s program, schedule, budget, project site and

proposes methods of Project deliveries;
2. prepare the initial line drawings representing design studies leading to
a recommended solution, including a general description of the Project
for approval by the Owner;
3. conduct relocation survey of actual property line and report to the
owner any discrepancy between actual and approved lot plans;
4. conduct geotechnical analysis and testing.

B. Final Design Phase

Based on approved schematics and conceptual plans, the Design Consultant

shall prepare:

1. the Detailed Architectural and Engineering Design Drawings (DAEDD);

2. the outline specifications to fix and illustrate the size and character of
the entire Project as to type of materials, type of structural, electrical,
mechanical, sanitary, electronic and communications systems;
3. the diagrammatic layout of construction systems; and
4. submit to the Owner a Statement of the Probable Project Construction
Cost (SPPCC) based on current cost parameters.
5. prepare the complete detailed designs and construction drawings,
setting forth in detail the work required for the architectural, structural,
electrical, plumbing/ sanitary, mechanical, electronic and
communication works prepared by the Architect and by the other State-
regulated building professionals involved;
6. prepare the Technical Specifications describing type and quality of
materials, finish, manner of construction and the general conditions
under which the Project is to be constructed.

C. Pre-construction Phase

1. submit to the Owner seven (7) sets of all construction drawings and
Technical Specifications for purposes of obtaining a building permit;
 2. assist the Owner in filing the required documents to secure approval of
government authorities having jurisdiction over the design of the
Project;
3. assist the Owner in filing the required technical documents and make
necessary revisions on the plans for Construction Loan as required by
the Financing Institution.

III. EFFECTIVITY, DURATION AND TERMINATION

The DESIGN CONSULTANT shall commence the initial design phase not later
than five (5) working days after the execution of this contract and subject to the
payment by OWNER and receipt by the DESIGN CONSULTANT of the initial
advance payment.

The DESIGN CONSULTANT shall finish the design and turn-over the
deliverables not later than One-Hundred Fifty (150) calendar days, exclusive of
Sundays, Holidays and expected or unexpected days which may prevent, hamper
or delay work due to inclement weather or unforeseen national events. Any
additional works or changes shall have corresponding increase in the number of
days.

The owner shall also terminate this contract by default when any of the
following conditions are present during contract implementation:

a) Outside of force majeure, the Design Consultant fails to deliver or perform

the Outputs and Deliverables within the contract period, or within any extension
thereof granted by the OWNER pursuant to a request made by the Contractor
prior to the delay;

b) As a result of force majeure, the Design Consultant is unable to deliver or

perform a material portion of the Outputs and Deliverables for a period of not less
than sixty (60) calendar days after the Contractor’s receipt of the notice from the
Owner stating that the circumstances of force majeure is deemed to have
ceased;

c) Design Consultant fails to perform any other obligation under this Contract.

The party opting to terminate the Contract shall signify or inform the other party of
such intention in writing at least fifteen (15) days before the effectivity thereof.

Nothing in this Agreement shall preclude the OWNER from taking other actions to
assert its rights under the Contract and/or bringing suit for damages in
appropriate circumstances.

IV. CONSULTANT’S FEE

The OWNER agrees to pay the Consultant for professional services a sum
equivalent to Three Hundred Thousand (PHP 300,000.00) exclusive of taxes
only with the following schedule of payment:

1. A minimum of Eighty Thousand Pesos (Php 80,000.00) upon signing of this

Agreement as the mobilization component of the agreed Consultant’s Fee.
2. Upon the completion of the Schematic Design Phase, but not more than 15
days after submission of the Schematic Design to the Owner, a sum equal to
One-Hundred Twenty Thousand Pesos (Php 120,000.00).
3. Upon the completion of the Final Design Phase, but not more than 15 days
after submission of the Final Design to the Owner, a sum equal to Seventy
Thousand Pesos (Php 70,000.00).
 4. Upon the completion of the Pre-Construction Phase, but not more than 15
days after submission of the Deliverables to the Owner, a sum equal to Thirty
Thousand Pesos (Php 30,000.00).

Any kind of payment, including advance and progress payments, must be made
by the OWNER as soon as possible, but in no case later than Fifteen (15)
calendar days after the submission of a request for payment, accompanied by
documents submitted pursuant to the contract, and upon fulfilment of other
obligations stipulated in the contract provided that all requirements were met prior
to such payment. Furthermore, only portion of a claim that is not satisfactorily
supported or accepted may be withheld from payment.

V. OWNER’S RESPONSIBILITIES

The Owner shall undertake the following acts:

1. provide full information as to his requirements for the Project;

2. when necessary, designate a representative authorized to act on his/her
behalf;
3. promptly examine and render decisions pertaining to documents submitted by
the Design Consultant to avoid unreasonable delay in the progress of the
Design Consultant’s work;
4. promptly pay for architectural and all other engineering and allied services
required for the Project;
5. arrange and pay for such legal, auditing, insurance, counseling and other
services as may be required for the Project;
6. pay for all reimbursable expenses incurred in the project as called for in
Article VI. “Other Conditions on Services” and all taxes including VAT (but not
including income tax) that the Government may impose on the Design
Consultant as a result of the services rendered by the Design Consultant
for/on the Project, whether the services were performed as a natural person
i.e. an individual practitioner or as a juridical entity i.e. as a sole
proprietorship, partnership or corporation; and
7. if the Owner observes or otherwise becomes aware of anything that may
impair the successful implementation of the Project, he must give prompt
written notice to the Design Consultant.

VI. OTHER CONDITIONS ON SERVICES

1. Per Diem and Traveling Expenses

A per diem plus traveling and living expenses shall be chargeable to

the Owner whenever the Consultant or his duly authorized representative is
required to perform services at a locality beyond fifty kilometers/ 20 km (air,
straight line or radial distance) from his established office as it appears in the
Consultant’s letterhead.

2. Extra Sets of Contract Documents

The Owner shall pay the Architect for additional sets of Contract
Documents.

3. Change/s Ordered by the Owner

 If the Architect renders additional professional services due to changes
ordered by the Owner after approval of the Architect’s outputs, the Owner
shall pay the Architect for extra time, resources/ drafting, or other office
expenses.

4. Work Suspended or Abandoned

If the work of the Design Consultant is abandoned or suspended in

whole or in part, the Owner shall pay the Design Consultant for the services
rendered corresponding to the amount due at the stage of suspension or
abandonment of the work. The primary service of the Design Consultant is
the preparation of architectural plans/ designs, specifications and other
building construction documents, in collaboration with other State-regulated
professionals. These are sets of detailed instructions that shall serve as the
basis for the General Contractor to implement the Project. Once the Design
Consultant has prepared all these documents, the Design Consultant has
completed the Initial Design and Final Design Phase of his services, which is
equivalent to Ninety percent (90%) of his work.

5. Estimates

Any SPPCC or any Cost Estimate submitted by the Design Consultant

can attain only a certain degree of accuracy. As the Design Consultant has
no control over the cost of labor and materials, or the many factors that go
into competitive bidding, he does not assume any professional responsibility
for such cost estimates.

6. Government Taxes and Services

The Design Consultant’s Fee is a net amount. Any tax (exclusive of

income tax) that the national and/or local government/s may impose on the
Design Consultant as a consequence of the services performed for the
Project shall be paid by the Owner.

7. Ownership of Documents

All designs, drawings, models, specifications and other contract

documents and copies thereof, prepared, duly signed, stamped and sealed
and furnished as instruments of service, are the intellectual property and
documents of the Architect, whether the work for which they were made is
executed or not, and are not to be reproduced or used on other work except
with a written agreement with the Architect (Sec. 33 of R.A. No. 9266).

8. Project Construction Cost (PCC)

Project Construction Cost means the cost of the completed building to

the Owner, including the structure, plumbing/sanitary and electrical fixtures,
mechanical equipment, elevators, escalators, air-conditioning system, fire
protection system, alarm and clock system, communications and electronic
system, elements attached to the building and all items indicated in the plans,
designs, drawings and specifications prepared by the Architect and his
 consultants. The construction cost of other items planned and designed by
the Design Consultant, such as architectural interiors (AI) and site
development plan elements and other items of similar nature, additionally
planned / designed by the Architect are also part of the PCC.

The cost of materials used and the labor for their installation are part of
the PCC. If these items are furnished by the Owner below its market cost, the
cost of the material and labor shall nonetheless be computed on the basis of
the current (and fair market value) costs.

The PCC does not include any of the fees for the Architect, the
Engineer, the Specialist Consultants or the salaries of the construction
inspectors.

9. Project Development Cost

Project Development Cost shall include cost of the construction as well

as all professional fees, permits, clearances and utilities and cost of acquiring
the project site / lot, cost of money, etc.

10. Other Cost

Other Cost shall include expenses that may be charged to expedite the
process of releasing of documents such as Building permits, Loan
Applications, etc.

VII. SUCCESSORS AND ASSIGNS

The Owner and the Design Consultant each binds himself, his partners,
successors, legal representative and assigns to the other party to this Agreement,
and to the partner, successors, legal representatives and assigns of such other
party in respect of all covenants of this Agreement. Except, as above, neither the
Owner nor the Architect shall assign, sublet or transfer his interest in this
Agreement without the written consent of the other.

VIII. ARBITRATION

All questions in dispute under this Agreement shall be submitted in accordance

with the provisions of R.A. No. 9285, otherwise known as the Alternative Dispute
Resolution (ADR) Act of 2004 and as provided for under E.O. No.1000, governing
Construction (and Consulting) Industry Arbitration, as well as the applicable
provisions of the New Civil Code.

In case of any dispute concerning this Agreement, the Parties may then venture
into a negotiation period for fourteen (14) calendar days, failure of which would
authorize any of the parties to engage in conciliatory discussions (with a neutral
3rd party as an active participant in seeking the resolution of the dispute) within
another 14 calendar days, or to immediately seek mediation or arbitration
modes of ADR under the Construction Industry Arbitration Commission (CIAC),
which also handles disputes concerning professional or consulting services,
guaranteeing a resolution of the issues presented within a six (6) month period,
 after which the losing party may file a Petition for Review before the Court of
Appeals (CA).

The exclusive venue of such ADR proceedings shall be the CIAC Office at
corners Sen . Gil Puyat Ave. and Makati Ave. in Makati City, PH.

IX. DISPUTES, TERMINATION AND DAMAGES

The OWNER shall have the right to terminate the services of the DESIGN
CONSULTANT if and upon the occurrence of any of the following events of
default:

(a) If the DESIGN CONSULTANT abandons the project or incurs a

delay or slippage of forty percent (40%) from the target accomplishment of
a given moment which would adversely affect or cause an unreasonable
delay in the completion of the project within the period stipulated;
(b) If the DESIGN CONSULTANT materially breaches any other terms
and conditions provided for in this contract or deviates from the agreed
design, plans and specs including the prescribed materials without the
prior written consent of the OWNER.

Upon the occurrence of such events of default by the DESIGN CONSULTANT,

the OWNER must first serve a written notice of default to the DESIGN
CONSULTANT and the latter has twenty (20) working days from receipt of such
notice within which to rectify or correct the violation committed.

If the DESIGN CONSULTANT fails to take remedial steps to rectify the violations
committed within the 15-day period, the OWNER may then exercise his right to
cancel or terminate the services of the DESIGN CONSULTANT effective upon
service of written notice to the DESIGN CONSULTANT thru email or letter sent to
the DESIGN CONSULTANT’S office address indicated in this contract, without
prejudice to any legal remedy available to the DESIGN CONSULTANT for the
protection of his rights and interests.

Upon the cancellation or termination of the contract as provided for herein, the
OWNER shall have the right to take-over the project or to engage the services of
another contractor to continue and complete the project as provided for herein.

X. AMENDMENTS

No alteration or variation of the terms of this Contract shall be valid unless made
in writing and signed by the parties; no oral understanding or agreement not
incorporated herein shall be binding on either of the parties; and no exceptions,
alternatives, substitutes or revisions are valid or binding on either parties unless
authorized in writing.

XI. VENUE AND ATTORNEY’S FEES

In case of court suit, venue shall be exclusively before the proper courts of the
City of Taguig, Metro Manila.

Any party violating his/her obligations under this contract shall also be liable for
the actual attorney’s fees and other litigation expenses incurred by the innocent
 party but in no case less than 25% of the amount involved in addition to any
damages suffered and/or allowed to be recovered under Philippine laws.

XII. APPLICABILITY OF PHILIPPINE LAWS

All other terms and conditions not otherwise provided for herein shall be governed
by pertinent laws of the Philippines.

IN WITNESS WHEREOF, the parties set their hands to this document this
______________(DATE) at _____________________________________(LOCATION).

Design Consultant Owner

ENGR. xxxxxxxx MS. xxxxxxx

xxxxxxxxx

Signed in the presence of:

_________________________ _________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES }

City of _______________ }s.s.

BEFORE ME, a Notary Public for and in _________________, this _____ day of
_____________ 2023 personally appeared __________________ and ___________________,
exhibiting to me their valid identification papers, known to me as the persons who executed the
foregoing Instrument and acknowledged to me that the same is their free and voluntary act and
deed and that of the principals they represent.

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

Doc No. __________

Book No. __________
Page No. __________
Series of 2023