Builder Development Agreement Template for Philippines

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Key Requirements PROMPT example:

Builder Development Agreement

"I need a Builder Development Agreement for a 20-story mixed-use commercial and residential development in Makati City, Philippines, with special emphasis on green building certification requirements and a project completion deadline of December 2025."

Document background
The Builder Development Agreement is a crucial document used in construction projects throughout the Philippines when a developer engages a builder/contractor to undertake construction works. This agreement type is essential for projects ranging from commercial developments to residential complexes and infrastructure works. It establishes the legal and operational framework for the construction project, incorporating requirements from Philippine construction laws, environmental regulations, and local government requirements. The document typically includes detailed specifications, payment mechanisms, quality standards, and risk allocation provisions. A Builder Development Agreement is particularly important in the Philippine context due to specific local regulatory requirements, environmental considerations, and the need to address unique challenges such as weather-related risks and local construction practices. The agreement serves as the primary contract document governing the relationship between the developer and builder, ensuring clear delineation of responsibilities and risk allocation while maintaining compliance with Philippine laws and regulations.
Suggested Sections

1. Parties: Identification of the Developer and Builder, including their complete legal names, addresses, and registration details

2. Background: Context of the development project, including the purpose, location, and general scope of works

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical construction terms and project-specific terminology

4. Scope of Works: Detailed description of the construction works to be performed, including general obligations of the Builder

5. Contract Sum and Payment Terms: The agreed price for the works, payment schedule, progress payments, retention amounts, and payment procedures

6. Project Timeline: Construction schedule, milestone dates, completion dates, and provisions for extensions of time

7. Builder's Obligations: Specific responsibilities including permits, approvals, workforce, materials, equipment, and compliance with laws

8. Developer's Obligations: Responsibilities of the developer including site access, approvals, and information provision

9. Quality and Standards: Required construction standards, quality control measures, and inspection procedures

10. Variations: Process for handling changes to the scope of works, including pricing and approval procedures

11. Insurance and Securities: Required insurance coverage, performance bonds, and other security requirements

12. Warranties and Defects Liability: Builder's warranties, defects liability period, and rectification procedures

13. Risk and Property: Risk allocation, property rights, and responsibility for works until completion

14. Default and Termination: Events of default, termination rights, and consequences of termination

15. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration provisions

16. General Provisions: Standard legal provisions including notices, governing law, and assignment rights

Optional Sections

1. Environmental Management: Specific environmental obligations and compliance requirements, included when the project has significant environmental impacts

2. Community Relations: Obligations regarding community engagement and social impact management, included for projects in sensitive community areas

3. Indigenous Peoples Rights: Specific provisions related to indigenous peoples' rights and requirements, included when the project affects ancestral domains

4. Government Coordination: Special provisions for coordination with government agencies, included for projects requiring significant government oversight

5. Force Majeure: Detailed provisions for handling force majeure events, particularly relevant in areas prone to natural disasters

6. Intellectual Property Rights: Provisions regarding design rights and other IP, included when the project involves unique design elements

7. Financing Arrangements: Special provisions related to project financing, included when external financing is involved

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical specifications for all aspects of the construction works

2. Schedule 2 - Site Plans and Drawings: Architectural, structural, and other relevant drawings and plans

3. Schedule 3 - Bill of Quantities: Detailed breakdown of quantities and prices for all construction elements

4. Schedule 4 - Construction Program: Detailed construction schedule with milestones and critical path

5. Schedule 5 - Quality Assurance Plan: Detailed quality control and assurance procedures

6. Schedule 6 - Safety Management Plan: Occupational health and safety procedures and requirements

7. Schedule 7 - List of Approved Subcontractors: Pre-approved subcontractors for specific aspects of the works

8. Schedule 8 - Performance Security Forms: Forms and requirements for performance bonds and securities

9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts

10. Schedule 10 - Environmental Management Plan: Environmental protection and compliance procedures

11. Appendix A - Required Permits and Licenses: List of required regulatory approvals and permits

12. Appendix B - Testing and Commissioning Procedures: Procedures for testing and commissioning of completed works

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Construction

Infrastructure

Commercial Property

Residential Development

Industrial Development

Hospitality

Retail

Healthcare

Education

Manufacturing

Logistics

Mixed-Use Development

Relevant Teams

Legal

Construction

Development

Finance

Procurement

Operations

Risk and Compliance

Technical Services

Quality Assurance

Environmental

Project Management

Contract Administration

Relevant Roles

Project Director

Construction Manager

Development Manager

Contract Administrator

Legal Counsel

Chief Financial Officer

Risk Manager

Technical Director

Operations Manager

Procurement Manager

Compliance Officer

Environmental Manager

Quality Assurance Manager

Site Supervisor

Cost Controller

Project Engineer

Architect

Quantity Surveyor

Industries
Civil Code of the Philippines (Republic Act No. 386): Governs general contract principles, obligations, and contracts in the Philippines, including provisions on warranties, damages, and breach of contract
National Building Code of the Philippines (PD 1096): Provides the framework for building design, construction standards, and safety requirements that must be adhered to in construction projects
Contractors' License Law (RA 4566): Regulates licensing requirements for contractors and construction firms operating in the Philippines
Environmental Impact Statement System (PD 1586): Mandates environmental impact assessments for development projects and establishes environmental compliance requirements
Labor Code of the Philippines (PD 442): Governs employment relationships, working conditions, and labor standards that must be followed in construction projects
Local Government Code (RA 7160): Outlines local government unit requirements for construction permits, zoning regulations, and local development guidelines
National Internal Revenue Code: Covers tax obligations and requirements related to construction contracts and real estate development
Anti-Graft and Corrupt Practices Act (RA 3019): Ensures transparency and proper conduct in government-related construction projects and contract awards
Fire Code of the Philippines (RA 9514): Specifies fire safety requirements and standards that must be incorporated into building design and construction
Government Procurement Reform Act (RA 9184): Applies to government-funded construction projects and outlines procurement procedures and requirements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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