A Construction Agreement outlines the legal rights and responsibilities between property owners and contractors for building projects in the Philippines. It spells out crucial details like project scope, materials, timelines, payment terms, and quality standards that both parties must follow during construction.

Under Philippine Civil Code provisions and the Construction Industry Authority (CIAP) guidelines, this binding contract protects everyone involved by clearly stating warranties, safety requirements, and dispute resolution procedures. Most Filipino developers and builders consider it essential for any major construction work, from residential homes to commercial buildings, as it helps prevent misunderstandings and ensures smooth project completion.

Use a Construction Agreement before starting any building project in the Philippines, especially when working with contractors on projects valued over ₱50,000. This legal safeguard becomes essential for home renovations, commercial buildings, or infrastructure developments where multiple parties handle construction responsibilities.

The agreement proves particularly valuable when coordinating complex projects with specialized contractors, dealing with significant material costs, or managing extended construction timelines. Under Philippine law, having this document in place helps prevent costly disputes, ensures compliance with local building codes, and protects both property owners and contractors throughout the construction process.

• Basic Construction Contract: Straightforward agreement for simple construction projects, covering essential terms and basic obligations
• Cost Plus Construction Agreement: Flexible contract where contractor gets reimbursed for costs plus agreed profit margin
• General Contractor Agreement With Owner: Comprehensive agreement for managing entire projects, including subcontractor coordination
• Construction Letter Of Intent: Preliminary document outlining key terms before finalizing formal agreement
• Contract Agreement For Construction Work: Detailed contract specifying scope, timeline, and payment terms for specific construction tasks

• Property Owners: Individuals or companies who initiate construction projects and sign Construction Agreements to protect their interests and investment
• General Contractors: Licensed construction professionals who manage overall project execution and coordinate with subcontractors
• Architects/Engineers: Design professionals who review and approve technical specifications within the agreement
• Legal Counsel: Lawyers who draft, review, and ensure compliance with Philippine construction laws and regulations
• Project Managers: Professionals who oversee day-to-day implementation and ensure adherence to agreement terms
• Local Government Units: Officials who verify compliance with building codes and issue necessary permits

• Project Details: Gather complete scope of work, construction timeline, and specific deliverables for each phase
• Party Information: Collect legal names, addresses, and registration details of all involved parties, including contractors' licenses
• Cost Structure: Document detailed budget breakdown, payment schedules, and terms for material costs and labor
• Technical Specs: Compile building plans, material specifications, and quality standards approved by licensed professionals
• Legal Requirements: Check local building codes, permits, and zoning requirements in your Philippine municipality
• Insurance Coverage: List required insurance policies, coverage amounts, and contractor's bond details
• Document Generation: Use our platform to create a legally-sound agreement that includes all essential elements

• Identification Details: Complete names, addresses, and registration numbers of property owner and contractor
• Project Scope: Detailed description of construction work, including plans and specifications
• Payment Terms: Clear breakdown of costs, payment schedule, and conditions for progress payments
• Timeline: Project start date, completion date, and milestone deadlines
• Warranties: Quality guarantees and defect liability period as per Philippine Civil Code
• Dispute Resolution: Arbitration procedures following Construction Industry Arbitration Law
• Change Orders: Process for modifying scope or costs during construction
• Insurance Requirements: Mandatory coverage types and minimum amounts
• Permits and Licenses: Required government approvals and documentation

People often confuse a Construction Agreement with an Agency Agreement in the Philippine construction industry. While both involve delegating work, they serve distinctly different purposes and carry different legal implications under Philippine law.

• Scope of Authority: Construction Agreements specifically outline building project details and contractor responsibilities, while Agency Agreements grant broader authority to represent and act on behalf of the principal
• Risk and Liability: Construction Agreements place direct responsibility for work quality on the contractor, whereas Agency Agreements focus on the agent's duty of representation and good faith
• Payment Structure: Construction Agreements typically involve progress payments based on completed work phases, while Agency Agreements often use commission-based or fixed fee structures
• Duration: Construction Agreements end upon project completion, but Agency Agreements can be ongoing relationships with renewal options
• Regulatory Requirements: Construction Agreements must comply with building codes and CIAP guidelines, while Agency Agreements follow Civil Code provisions on representation