The Building Contract Agreement is a fundamental legal document used in the Philippine construction industry to establish and regulate the contractual relationship between property owners/employers and contractors. This agreement is essential for any construction project in the Philippines, whether commercial, residential, or industrial, and must comply with the National Building Code of the Philippines, the Civil Code, and various local construction regulations. The document typically includes comprehensive details about the construction project, including scope of work, payment terms, completion timelines, quality standards, and risk allocation between parties. It serves as the primary reference point for managing the construction process, handling variations, resolving disputes, and ensuring proper project completion. The agreement becomes particularly important in the context of Philippine law, where construction disputes are common and proper documentation is crucial for legal protection of all parties involved.
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1. Parties: Identifies and provides full details of the Owner/Employer and the Contractor
2. Background: Context of the agreement and brief description of the construction project
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed
5. Contract Price and Payment Terms: Details of the contract sum, payment schedule, and payment conditions
6. Time for Completion: Project timeline, completion date, and provisions for extensions of time
7. Contractor's Obligations: Key responsibilities including workmanship, materials, safety, and compliance with laws
8. Owner's Obligations: Responsibilities of the owner including site access, permits, and approvals
9. Quality and Standards: Required quality standards, inspections, and approval processes
10. Variations: Procedures for handling changes to the scope of work
11. Insurance and Securities: Required insurance coverage and performance securities
12. Defects Liability: Warranty period and obligations to rectify defects
13. Force Majeure: Provisions for unforeseen circumstances and their handling
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes including arbitration
16. Governing Law: Specification of Philippine law as governing law and jurisdiction
1. Subcontracting: Include when subcontractors will be engaged, specifying conditions and approval requirements
2. Environmental Protection: Include for projects with significant environmental impact considerations
3. Indigenous Peoples Rights: Include when construction affects areas with indigenous populations
4. Heritage Protection: Include when construction is near historical or cultural sites
5. Traffic Management: Include for urban construction projects affecting public roads
6. Advance Payment: Include when advance payments are part of the payment structure
7. Materials Supplied by Owner: Include when owner will supply certain construction materials
8. Provisional Sums: Include when certain costs cannot be determined at contract formation
9. Liquidated Damages: Include specific compensation for delay or performance failures
1. Schedule 1 - Construction Drawings and Specifications: Detailed technical drawings and specifications for the project
2. Schedule 2 - Bill of Quantities: Itemized list of materials, quantities, and prices
3. Schedule 3 - Construction Schedule: Detailed timeline with milestones and completion dates
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment terms and milestone payments
5. Schedule 5 - Site Information: Details about the construction site including surveys and existing conditions
6. Schedule 6 - Required Permits and Licenses: List of required regulatory approvals and responsible parties
7. Schedule 7 - Quality Assurance Plan: Detailed quality control procedures and standards
8. Schedule 8 - Health and Safety Requirements: Specific safety protocols and requirements
9. Appendix A - Insurance Requirements: Detailed insurance coverage requirements and minimum amounts
10. Appendix B - Form of Performance Security: Template for performance bond or security
11. Appendix C - Forms of Certificates: Templates for various certificates including completion certificates
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Public Works
Architecture
Engineering
Project Management
Property Management
Urban Development
Relevant Teams
Legal
Construction
Project Management
Property Development
Procurement
Finance
Operations
Risk Management
Commercial
Compliance
Technical Services
Engineering
Architecture
Contract Administration
Relevant Roles
Property Developer
Construction Manager
Project Manager
Contract Administrator
Legal Counsel
Architect
Quantity Surveyor
Civil Engineer
Structural Engineer
Procurement Manager
Risk Manager
Commercial Director
Development Director
Site Manager
Construction Supervisor
Compliance Officer
Finance Manager
Operations Manager
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