Construction Service Contract for Philippines

Construction Service Contract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions for construction services between an owner/employer and a contractor. This document incorporates requirements from the Civil Code of the Philippines, Construction Industry Authority of the Philippines (CIAP) regulations, the National Building Code, and relevant labor and safety laws. It details the scope of work, payment terms, timeline, quality standards, safety requirements, and risk allocation while ensuring compliance with local building regulations and environmental standards.

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What is a Construction Service Contract?

The Construction Service Contract is a vital legal instrument used in the Philippine construction industry to formalize agreements between property owners or developers and construction contractors. This document is essential when engaging a contractor to perform construction, renovation, or development work on any scale. The contract must comply with Philippine laws including the Civil Code, CIAP regulations, the National Building Code, and various labor and safety regulations. It typically includes detailed specifications of the work, pricing structures, timelines, quality standards, and risk allocation mechanisms. The document is particularly important as it provides legal protection for all parties and ensures clarity in project execution while adhering to local building and safety standards.

What sections should be included in a Construction Service Contract?

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 and the basis for entering into the agreement

3. Definitions: Definitions of key terms used throughout the contract, including technical construction terminology

4. Scope of Work: Detailed description of the construction works to be performed, including specific deliverables and exclusions

5. Contract Price: Total contract value, payment terms, payment schedule, and conditions for payment

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

7. Contractor Obligations: Specific responsibilities of the contractor including labor, materials, equipment, and compliance with laws

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

9. Quality and Standards: Required quality standards, inspection procedures, and acceptance criteria

10. Safety Requirements: Safety protocols, COSH compliance, and environmental protection measures

11. Insurance and Bonds: Required insurance coverage and performance bonds

12. Warranties: Contractor's warranties for workmanship and materials

13. Variations: Process for handling changes to scope, price, or timeline

14. Default and Termination: Events of default, remedies, and termination procedures

15. Dispute Resolution: Process for resolving disputes, including CIAP procedures

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

What sections are optional to include in a Construction Service Contract?

1. Financing Arrangements: Include when project involves specific financing terms or requirements from financial institutions

2. Environmental Management: Required for projects with significant environmental impact or requiring environmental clearances

3. Local Community Provisions: Include when project impacts local communities or requires community engagement

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

5. Force Majeure: Detailed force majeure provisions for areas prone to natural disasters

6. Materials Supply: Include when specific material procurement arrangements or owner-supplied materials are involved

7. Subcontracting: Include when subcontracting is permitted and needs specific regulation

8. Testing and Commissioning: Required for projects involving mechanical or electrical systems

What schedules should be included in a Construction Service Contract?

1. Technical Specifications: Detailed technical requirements and standards for construction

2. Construction Drawings: Approved architectural and engineering drawings

3. Bill of Quantities: Detailed breakdown of quantities and prices

4. Construction Schedule: Detailed project timeline with milestones

5. Payment Schedule: Detailed payment terms and milestone payments

6. Key Personnel: List of key personnel and their qualifications

7. Required Insurance: Details of insurance types and coverage amounts

8. Forms and Certificates: Standard forms for variations, completion certificates, etc.

9. Safety Procedures: Detailed safety protocols and emergency procedures

10. Quality Assurance Plan: Detailed quality control procedures and standards

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

Jurisdiction

Philippines

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Construction

Industrial Construction

Infrastructure Development

Residential Development

Manufacturing

Hospitality

Healthcare

Education

Retail

Energy

Transportation

Mining

Government/Public Sector

Relevant Teams

Legal

Procurement

Operations

Construction

Project Management

Finance

Risk Management

Compliance

Health and Safety

Technical Services

Commercial

Business Development

Relevant Roles

Chief Executive Officer

Project Manager

Construction Manager

Contract Manager

Legal Counsel

Procurement Manager

Site Engineer

Quantity Surveyor

Risk Manager

Financial Controller

Operations Director

Compliance Officer

Health and Safety Manager

Technical Director

Commercial Director

Development Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Provides the basic legal framework for contracts, including provisions on obligations and contracts, requirements for validity, and remedies for breach
Construction Industry Authority of the Philippines (CIAP) Law (Executive Order No. 1008): Establishes regulations for construction industry practices and dispute resolution mechanisms specific to construction contracts
National Building Code of the Philippines (PD 1096): Sets standards for building design, construction methods, materials, and safety requirements that must be referenced in construction contracts
Contractors' License Law (RA 4566): Regulates licensing requirements for contractors and establishes standards for construction operations
Labor Code of the Philippines: Governs employment relationships, workers' rights, safety standards, and other labor-related matters in construction projects
Environmental Impact Statement System (PD 1586): Requires environmental impact assessments for construction projects and compliance with environmental regulations
Local Government Code (RA 7160): Provides framework for local permits, licenses, and approvals needed for construction projects
National Internal Revenue Code: Governs taxation aspects of construction services, including VAT, income tax, and other applicable taxes
Government Procurement Reform Act (RA 9184): Applies to public construction projects and sets procurement guidelines that may influence private contract practices
Construction Occupational Safety and Health (COSH) Standards: Specifies safety and health requirements specific to construction work that must be incorporated into construction contracts
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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