The Framework Agreement (Construction) is designed for situations where parties anticipate multiple construction projects or works orders over an extended period in the Philippines. It streamlines the procurement and execution process by pre-agreeing standard terms, conditions, pricing mechanisms, and operational procedures, eliminating the need to negotiate these aspects for each individual project. This document type is particularly valuable for ongoing construction relationships, large-scale developments, or multi-phase projects, incorporating compliance requirements with Philippine construction laws and regulations. The agreement includes provisions for work order issuance, quality standards, safety requirements, and dispute resolution mechanisms, while maintaining flexibility to accommodate project-specific requirements through individual work orders.
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1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details
2. Background: Context of the agreement, relationship between parties, and general purpose of the framework arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Scope of Framework: Overview of the types of construction works covered, geographical scope, and duration of the framework
5. Operation of Framework: Procedures for issuing work orders, acceptance process, and project implementation mechanisms
6. Pricing and Payment Terms: Framework rates, pricing mechanisms, payment schedules, and invoicing procedures
7. Performance Standards: Quality requirements, performance metrics, and minimum standards for all works under the framework
8. Contractor Obligations: General obligations, compliance requirements, and responsibilities of the contractor
9. Client Obligations: Responsibilities and commitments of the client, including access, information provision, and approvals
10. Health and Safety: Safety requirements, compliance with RA 11058, and site safety management procedures
11. Insurance and Liability: Insurance requirements, liability limitations, and indemnification provisions
12. Term and Termination: Duration of framework, renewal options, and termination rights and procedures
13. Dispute Resolution: Process for resolving disputes, including alternative dispute resolution mechanisms under RA 9285
14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Environmental Management: Required when projects have significant environmental impact, detailing compliance with environmental laws and management procedures
2. Indigenous Peoples Rights: Necessary when works may affect ancestral domains or indigenous communities, ensuring compliance with RA 8371
3. Government Procurement Provisions: Required for public sector clients, incorporating requirements under RA 9184
4. Security Requirements: For projects requiring specific security measures or involving sensitive locations
5. Force Majeure: Detailed provisions for managing natural disasters and unforeseen events, particularly relevant in areas prone to natural calamities
6. Anti-Corruption Provisions: Enhanced provisions required for public sector work or when specified by client policies
7. Intellectual Property Rights: Needed when design work or innovative construction methods are involved
8. Subcontracting: Detailed provisions when subcontracting is anticipated or requires specific controls
1. Schedule 1 - Pricing Schedule: Detailed rates, price adjustment mechanisms, and cost components
2. Schedule 2 - Scope of Works: Detailed description of types of construction works covered under the framework
3. Schedule 3 - Technical Standards: Specific technical requirements and standards applicable to all works
4. Schedule 4 - Form of Work Order: Template and procedures for issuing individual work orders
5. Schedule 5 - Key Personnel: Required qualifications and designated key personnel for framework delivery
6. Schedule 6 - Performance Security: Forms and requirements for performance security and bonds
7. Schedule 7 - Quality Management System: Quality control procedures and documentation requirements
8. Schedule 8 - HSE Requirements: Detailed health, safety, and environmental requirements
9. Schedule 9 - Insurance Requirements: Specific insurance types, coverage levels, and requirements
10. Appendix A - Required Permits and Licenses: List of mandatory permits and licenses required for construction works
11. Appendix B - Reporting Templates: Standard forms and templates for project reporting and documentation
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