Contract For Construction Work Template for Philippines

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Contract For Construction Work

"I need a Contract For Construction Work for a 20-story commercial building project in Manila, Philippines, with a contract value of PHP 500 million and construction period from March 2025 to December 2025, including provisions for sustainable building practices and LEED certification requirements."

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What is a Contract For Construction Work?

The Contract For Construction Work is a fundamental legal document used in the Philippine construction industry to establish a binding agreement between a project owner and a contractor for the execution of construction works. This document is essential when undertaking any significant construction project in the Philippines, whether commercial, residential, or infrastructure-related. It incorporates requirements from various Philippine laws including the Civil Code, National Building Code, and Contractors' License Law. The contract typically includes detailed specifications of the work, payment terms, timelines, quality standards, and compliance requirements with local regulations. It's particularly important as it provides legal protection for both parties, ensures clarity in project execution, and serves as a reference document for dispute resolution. The agreement must comply with Philippine construction industry standards and regulations, including DOLE safety standards and environmental requirements.

What sections should be included in a Contract For Construction Work?

1. Parties: Identifies the contracting parties - the owner/employer and the contractor, including their complete legal names, addresses, and registration details

2. Background: Provides context for the agreement, including brief description of the project and the parties' intentions

3. Definitions: Defines key terms used throughout the contract for clarity and consistency

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

5. Contract Price and Payment Terms: Specifies the total contract price, payment schedule, terms of payment, and procedures for progress payments

6. Project Timeline: Sets out the commencement date, completion date, and key milestone dates for the project

7. Materials and Workmanship: Specifies quality standards for materials and workmanship, including testing and inspection requirements

8. Contractor's Obligations: Details specific responsibilities of the contractor including labor, equipment, permits, and compliance with laws

9. Owner's Obligations: Outlines the owner's responsibilities including site access, permits, and timely payments

10. Supervision and Personnel: Requirements for project supervision, key personnel, and labor requirements

11. Changes and Variations: Procedures for handling changes to the scope of work and price adjustments

12. Safety and Environmental Requirements: Safety protocols, environmental compliance, and related obligations

13. Insurance and Bonds: Required insurance coverage and performance/warranty bonds

14. Warranties and Defects Liability: Warranty terms and procedures for addressing defects during the liability period

15. Termination: Grounds and procedures for contract termination by either party

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

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

What sections are optional to include in a Contract For Construction Work?

1. Advance Payment: Include when advance payment is part of the agreement, specifying terms and security

2. Subcontracting: Include when subcontracting is permitted, specifying conditions and approval requirements

3. Force Majeure: Include for projects in areas prone to natural disasters or other unforeseeable events

4. Liquidated Damages: Include when specific damages for delay or non-performance are to be pre-determined

5. Value Engineering: Include when the contractor may propose cost-saving alternatives

6. Site Conditions: Include for projects where ground conditions may be uncertain or problematic

7. Equipment Lease: Include when specific equipment will be provided by the owner

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

9. Foreign Currency Provisions: Include when payments involve multiple currencies

10. Government Approvals: Include when specific government permits or approvals are critical to the project

What schedules should be included in a Contract For Construction Work?

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

2. Schedule B - Bill of Quantities: Itemized list of quantities and prices for all work items

3. Schedule C - Construction Drawings: Approved construction drawings and design documents

4. Schedule D - Project Timeline: Detailed project schedule including milestones and critical path

5. Schedule E - Payment Schedule: Detailed breakdown of payment tranches and milestones

6. Schedule F - Key Personnel: List of key personnel and their roles/qualifications

7. Schedule G - Required Insurance: Detailed insurance requirements and coverage limits

8. Schedule H - Forms and Certificates: Standard forms for progress reports, completion certificates, etc.

9. Schedule I - Quality Assurance Plan: Detailed quality control procedures and standards

10. Schedule J - Safety Management Plan: Detailed safety procedures and protocols

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

Commercial Development

Industrial Development

Residential Development

Engineering

Architecture

Project Management

Construction Materials Manufacturing

Public Works

Urban Development

Relevant Teams

Legal

Construction Management

Project Management

Operations

Procurement

Finance

Risk Management

Quality Control

Health and Safety

Commercial

Technical

Compliance

Engineering

Architecture

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Legal Counsel

Contract Administrator

Chief Executive Officer

Chief Operating Officer

Site Supervisor

Procurement Manager

Quality Control Manager

Safety Manager

Risk Manager

Finance Director

Commercial Director

Operations Director

Technical Director

Project Engineer

Quantity Surveyor

Architect

Structural Engineer

Compliance Officer

Industries
Civil Code of the Philippines (Republic Act No. 386): Provides the fundamental legal framework for contracts, including formation, validity, obligations, and remedies for breach of contract
National Building Code of the Philippines (PD 1096): Sets standards for building design, construction methods, materials, and safety requirements that must be followed in construction projects
Contractors' License Law (RA 4566): Regulates licensing requirements for contractors and establishes the Philippine Contractors Accreditation Board (PCAB)
Labor Code of the Philippines (PD 442): Governs employment relationships, workers' rights, safety standards, and other labor-related matters in construction projects
Occupational Safety and Health Standards (DOLE DO 198-18): Specifies safety and health requirements specifically for construction work and other hazardous operations
Environmental Impact Statement System (PD 1586): Requires environmental impact assessments for construction projects that may affect the environment
Government Procurement Reform Act (RA 9184): Applies to construction contracts involving government projects and public works
Local Government Code (RA 7160): Governs local building permits, zoning requirements, and other local government regulations affecting construction
Construction Industry Authority of the Philippines Law (RA 4566): Establishes regulations for the construction industry and provides for the creation of the Construction Industry Authority
National Internal Revenue Code: Covers tax obligations and requirements related to construction contracts and payments
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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