Assignment Of Construction Contract Template for Philippines

The Assignment Of Construction Contract is a crucial document used in the Philippine construction industry when a contractor needs to transfer its rights and obligations under an existing construction contract to another contractor. This situation may arise due to various circumstances such as corporate restructuring, financial considerations, or operational requirements. The document must comply with Philippine law, particularly the Civil Code, Republic Act 4566, and PCAB regulations. It includes comprehensive details about the original construction contract, the parties involved, the scope of assignment, warranties, liabilities, and necessary consents. The document is essential for ensuring a smooth transition of construction responsibilities while maintaining project continuity and legal compliance. It requires careful consideration of existing permits, licenses, bonds, and insurance requirements, as well as addressing any ongoing construction work and payment arrangements.

1. Parties: Identifies the assignor (original contractor), assignee (new contractor), and the employer/principal from the original construction contract

2. Background: Describes the original construction contract, the reason for assignment, and confirms the parties' intention to assign the contract

3. Definitions: Defines key terms used in the assignment agreement, including references to the original contract, project, and relevant dates

4. Assignment: Core provision that transfers the rights, benefits, and obligations under the construction contract from assignor to assignee

5. Effective Date: Specifies when the assignment becomes effective and any conditions precedent

6. Consideration: Details any payment or consideration for the assignment

7. Assignor's Warranties: Warranties regarding the original contract's validity, existing breaches, and authority to assign

8. Assignee's Undertakings: Commitments by the assignee to perform the contract and comply with its terms

9. Employer's Consent: Acknowledgment and consent of the employer to the assignment

10. Liabilities: Allocation of liabilities between assignor and assignee for pre and post-assignment events

11. Further Assurance: Obligation to execute additional documents and take necessary steps to effect the assignment

12. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes

13. Notices: Specifies how and where notices under the agreement should be sent

14. Entire Agreement: Confirms the assignment agreement represents the entire understanding between parties