Construction Referral Fee Agreement Template for Philippines

The Construction Referral Fee Agreement is essential for businesses operating in the Philippine construction sector who wish to formalize their referral relationships and ensure compliance with local regulations. This document is typically used when construction companies seek to expand their client base through third-party referrals, establishing clear terms for compensation and responsibilities. The agreement must comply with Philippine laws, including the Civil Code, National Building Code, and relevant tax regulations. It includes comprehensive provisions for referral processes, fee calculations, payment terms, and dispute resolution mechanisms, while addressing specific requirements of the Philippine construction industry. The document is particularly important for maintaining transparency in business relationships and ensuring proper documentation for tax and regulatory purposes.

1. Parties: Identifies and provides full details of the parties entering into the agreement - the Referrer and the Construction Company

2. Background: Explains the context of the agreement, including the Construction Company's business and the Referrer's capability to provide referrals

3. Definitions: Defines key terms used throughout the agreement including 'Referral', 'Successful Referral', 'Referral Fee', and 'Construction Services'

4. Scope of Referral Services: Details the specific types of referrals covered and the nature of services to be provided by the Referrer

5. Referral Process: Outlines the procedure for making referrals, including notification requirements and documentation

6. Referral Fee Structure: Specifies the fee calculation method, payment terms, and conditions for fee eligibility

7. Payment Terms: Details the timing of payments, payment method, and any conditions precedent to payment

8. Obligations of the Referrer: Lists the Referrer's responsibilities, including quality of referrals and compliance with laws

9. Obligations of the Construction Company: Specifies the Construction Company's duties regarding referral processing and fee payment

10. Term and Termination: States the duration of the agreement and circumstances for termination

11. Confidentiality: Addresses the handling of confidential information exchanged during the referral process

12. Representations and Warranties: Contains basic warranties about capacity to contract and compliance with laws

13. Governing Law and Jurisdiction: Specifies Philippine law as governing law and sets jurisdiction for disputes