Construction Framework Agreement Template for Philippines

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Key Requirements PROMPT example:

Construction Framework Agreement

"I need a Construction Framework Agreement for my real estate development company based in Manila, to be used with multiple contractors for residential projects starting January 2025, with specific focus on environmental compliance and local community engagement."

Document background
The Construction Framework Agreement is designed for situations where a client anticipates requiring multiple construction projects or services over an extended period. This master agreement, governed by Philippine law and regulations including the Civil Code of the Philippines and the Contractors' License Law (RA 4566), establishes standardized terms, conditions, and procedures that will apply to all subsequent work orders. It streamlines the procurement process by eliminating the need to negotiate complete contracts for each new project while ensuring compliance with local construction standards, safety requirements, and environmental regulations. The framework includes provisions for pricing mechanisms, quality standards, safety protocols, and dispute resolution procedures, making it particularly valuable for ongoing construction relationships in the Philippine context.
Suggested Sections

1. Parties: Identification of the contracting parties, including their legal names, addresses, and registration details

2. Background: Context of the agreement and the parties' intention to establish a framework for construction services

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Framework: Overview of the types of construction services covered and the process for issuing work orders

5. Duration and Term: Period of the framework agreement, including renewal options

6. Work Order Process: Procedures for issuing, accepting, and executing specific work orders under the framework

7. Pricing and Payment Terms: Framework for determining prices, payment schedules, and payment mechanisms

8. Contractor Obligations: General obligations of the contractor, including compliance with laws, standards, and specifications

9. Client Obligations: General obligations of the client, including access, information provision, and cooperation

10. Quality Standards: Required quality standards, inspections, and acceptance procedures

11. Health and Safety: Safety requirements and compliance with Philippine occupational safety regulations

12. Insurance and Liability: Required insurance coverage and allocation of risks and liabilities

13. Warranties: Contractor's warranties regarding workmanship and materials

14. Termination: Grounds and procedures for termination of the framework agreement or individual work orders

15. Dispute Resolution: Procedures for resolving disputes, including Philippine law requirements

16. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

1. Environmental Compliance: Required when projects may have significant environmental impact, detailing environmental protection measures and compliance requirements

2. Local Community Engagement: Necessary for projects in sensitive areas or requiring community relations management

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

4. Intellectual Property Rights: Required when design services or innovative construction methods are involved

5. Security Requirements: Necessary for high-security projects or those in sensitive locations

6. Government Approvals: Detailed section needed for projects requiring extensive government permits or approvals

7. Subcontracting: Required when subcontracting is anticipated, detailing approval processes and requirements

8. Performance Bonds: Include when specific performance security requirements are needed

9. Anti-Corruption Provisions: Enhanced provisions for public sector projects or when required by corporate policies

Suggested Schedules

1. Schedule 1 - Pricing Framework: Detailed pricing mechanisms, rate cards, and cost calculation methods

2. Schedule 2 - Standard Work Order Template: Template and procedures for individual work orders

3. Schedule 3 - Technical Standards: Specific technical requirements and construction standards to be followed

4. Schedule 4 - Key Performance Indicators: Performance metrics and measurement criteria

5. Schedule 5 - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

6. Schedule 6 - Health and Safety Standards: Detailed safety requirements and procedures

7. Schedule 7 - Required Personnel: Key personnel requirements and qualifications

8. Schedule 8 - Equipment Requirements: Minimum equipment specifications and requirements

9. Appendix A - Form of Performance Bond: Standard form for performance security

10. Appendix B - Permits and Licenses: List of required permits and responsible parties

11. Appendix C - Quality Control Procedures: Detailed quality control and testing requirements

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

Construction

Real Estate Development

Infrastructure

Industrial Development

Government Infrastructure

Commercial Property

Residential Development

Mining

Manufacturing

Energy

Transportation

Healthcare Facilities

Education Facilities

Retail Development

Relevant Teams

Legal

Procurement

Operations

Commercial

Construction

Project Management

Risk and Compliance

Finance

Technical Services

Health and Safety

Quality Assurance

Business Development

Facilities Management

Relevant Roles

Construction Manager

Project Director

Legal Counsel

Procurement Manager

Contract Administrator

Chief Operating Officer

Facilities Manager

Project Manager

Commercial Director

Risk Manager

Operations Director

Technical Director

Chief Financial Officer

Development Manager

Compliance Officer

Health and Safety Manager

Quality Assurance Manager

Site Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Contains fundamental provisions on contracts, obligations, and general principles of contract law that form the basis of any agreement in the Philippines
Republic Act No. 4566 (Contractors' License Law): Regulates the construction industry, requiring licensing of contractors and establishing standards for construction business
National Building Code of the Philippines (PD 1096): Sets standards for building design, construction, use, occupancy, and maintenance
Construction Industry Authority of the Philippines (CIAP) Law: Establishes guidelines for construction industry development and regulation
Republic Act No. 9184 (Government Procurement Reform Act): Governs procurement processes and requirements, particularly relevant if the project involves government contracts
Department Order No. 13 (DOLE Guidelines on Occupational Safety and Health in Construction): Provides safety standards and requirements for construction work
Environmental Impact Statement System (PD 1586): Requires environmental impact assessments for construction projects that may affect the environment
Labor Code of the Philippines: Governs employment relationships, working conditions, and labor standards in construction projects
Republic Act No. 11032 (Ease of Doing Business Act): Affects administrative procedures and permits related to construction projects
Local Government Code (Republic Act No. 7160): Governs local permits, licenses, and approvals needed for construction projects
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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