Owner Builder Subcontractor Agreement for Philippines

Owner Builder Subcontractor Agreement Template for Philippines

A comprehensive legal agreement used in the Philippines construction industry between an Owner-Builder (who acts as the principal contractor) and a Subcontractor for specific construction works. This document is structured according to Philippine law, particularly complying with the Civil Code of the Philippines, the National Building Code, and the Construction Industry Authority of the Philippines (CIAP) regulations. It details the scope of work, payment terms, compliance requirements, safety standards, and dispute resolution mechanisms specific to the Philippine construction context, while protecting both parties' interests under local jurisdiction.

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What is a Owner Builder Subcontractor Agreement?

The Owner Builder Subcontractor Agreement is essential in the Philippine construction industry where property owners choose to act as their own builders while engaging specialized subcontractors for specific aspects of the construction work. This document is particularly relevant when owners have obtained an owner-builder permit and need to formally engage subcontractors while maintaining compliance with Philippine construction laws and regulations. The agreement covers crucial aspects including scope of work, payment terms, safety requirements, and quality standards, all aligned with the Construction Industry Authority of the Philippines (CIAP) guidelines and the National Building Code. It's designed to protect both parties' interests while ensuring compliance with local labor laws, building regulations, and industry standards. This document is commonly used in both residential and commercial construction projects throughout the Philippines where owner-builders need to establish clear legal and operational frameworks with their subcontractors.

What sections should be included in a Owner Builder Subcontractor Agreement?

1. Parties: Identifies and provides full details of the Owner-Builder and the Subcontractor, including registration numbers and addresses

2. Background: Explains the context of the agreement, including reference to the main construction project and the Owner-Builder's authority

3. Definitions: Defines key terms used throughout the agreement, including technical construction terms and contract-specific terminology

4. Scope of Work: Detailed description of the construction work to be performed by the Subcontractor

5. Contract Sum and Payment Terms: Specifies the agreed price, payment schedule, and conditions for payment

6. Duration and Timeline: Sets out the project timeline, including start date, completion date, and any milestone dates

7. Subcontractor Obligations: Lists all responsibilities and obligations of the Subcontractor, including compliance with laws and standards

8. Owner-Builder Obligations: Specifies the responsibilities of the Owner-Builder, including site access and information provision

9. Materials and Equipment: Details responsibilities for supplying and maintaining materials and equipment

10. Quality and Standards: Specifies required quality standards and compliance with Philippine building codes

11. Safety and Compliance: Outlines safety requirements and compliance with Philippine health and safety regulations

12. Insurance and Indemnity: Specifies required insurance coverage and indemnification obligations

13. Variations and Changes: Procedures for requesting and implementing changes to the scope of work

14. Default and Termination: Conditions for default and procedures for contract termination

15. Dispute Resolution: Procedures for resolving disputes, including reference to Philippine construction arbitration

16. General Provisions: Standard contract clauses including notices, governing law, and entire agreement

What sections are optional to include in a Owner Builder Subcontractor Agreement?

1. Performance Bond: Required when the project value exceeds certain thresholds or when specifically requested by the Owner-Builder

2. Environmental Compliance: Required when the project involves environmental impact considerations or requires specific permits

3. Intellectual Property: Needed when the work involves design elements or proprietary methods

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

5. Local Community Relations: Required when work impacts local communities or requires community engagement

6. Warranty Period: Extended warranty provisions beyond standard guarantees

7. Training and Knowledge Transfer: Required when the Owner-Builder needs operational training post-completion

What schedules should be included in a Owner Builder Subcontractor Agreement?

1. Schedule A - Scope of Works: Detailed technical specifications and drawings of the work to be performed

2. Schedule B - Bill of Quantities: Itemized list of quantities, materials, and costs

3. Schedule C - Project Timeline: Detailed project schedule including milestones and critical path activities

4. Schedule D - Payment Schedule: Detailed breakdown of payment terms, installments, and conditions

5. Schedule E - Site Rules and Safety Requirements: Specific site safety rules and requirements

6. Schedule F - Required Insurance Certificates: List and copies of required insurance certificates

7. Schedule G - Key Personnel: List of key personnel from both parties with roles and responsibilities

8. Appendix 1 - Required Permits and Licenses: Copies of all required permits, licenses, and certifications

9. Appendix 2 - Quality Assurance Plan: Detailed quality control and assurance procedures

10. Appendix 3 - Forms and Certificates: Standard forms for variations, completion certificates, and other project documents

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

Residential Construction

Commercial Construction

Industrial Construction

Infrastructure Development

Real Estate Development

Home Renovation

Building Restoration

Property Development

Construction Services

Relevant Teams

Legal

Construction Management

Project Management

Procurement

Risk Management

Compliance

Quality Assurance

Health and Safety

Operations

Contract Administration

Relevant Roles

Owner-Builder

Construction Manager

Project Manager

Site Supervisor

Contract Administrator

Construction Lawyer

Quantity Surveyor

Building Inspector

Compliance Officer

Risk Manager

Procurement Manager

Construction Coordinator

Safety Officer

Quality Control Manager

Industries
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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