Construction Service Agreement Template for Philippines

The Construction Service Agreement is a vital legal document used in the Philippine construction industry to formalize the relationship between project owners and contractors. This agreement is essential when engaging contractors for construction projects of any scale, from commercial buildings to infrastructure development. The document must comply with Philippine legislation, including the Civil Code, Republic Act No. 4566 (Contractors' License Law), and the National Building Code. It includes comprehensive details about project scope, timeline, payment terms, quality standards, safety requirements, and dispute resolution mechanisms. The agreement is structured to protect both parties' interests while ensuring compliance with local construction regulations, labor laws, and environmental standards. It's particularly important for risk management and establishing clear performance metrics for construction projects in the Philippine context.

1. Parties: Identification of the Owner/Employer and the Contractor, including their complete legal names, addresses, and registration details

2. Background: Context of the construction project, including the purpose and basic project overview

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

4. Scope of Work: Detailed description of the construction services to be performed, including general obligations of the Contractor

5. Contract Price and Payment Terms: Construction cost, payment schedule, progress payments, retention amount, and payment procedures

6. Project Timeline: Commencement date, completion date, project milestones, and provisions for extensions of time

7. Contractor's Obligations: Specific responsibilities including labor, materials, equipment, permits, and compliance with laws

8. Owner's Obligations: Responsibilities of the owner including site access, permits, and approvals

9. Safety and Environmental Requirements: Compliance with safety regulations, environmental standards, and site safety management

10. Quality Control: Quality standards, inspection procedures, and acceptance criteria

11. Warranties and Defects Liability: Warranty period, defects notification period, and remediation obligations

12. Insurance and Bonds: Required insurance coverage and performance/surety bonds

13. Changes and Variations: Procedures for handling change orders and variations to the scope

14. Suspension and Termination: Grounds and procedures for suspension or termination of the contract

15. Force Majeure: Events constituting force majeure and their consequences

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

17. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement