The Basic Construction Contract serves as a fundamental legal instrument for construction projects in the Philippines, designed to protect the interests of both property owners and contractors. This document is particularly suitable for straightforward construction projects where a clear definition of scope, responsibilities, and obligations is essential. The contract incorporates requirements from Philippine construction law, including compliance with the National Building Code, CIAP regulations, and local government requirements. It covers crucial aspects such as project scope, payment terms, timeline, quality standards, and dispute resolution mechanisms, while remaining adaptable to various construction project types. The document's structure reflects standard industry practices in the Philippines while maintaining sufficient flexibility to accommodate project-specific requirements.
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1. Parties: Identifies and provides full details of the contracting parties (Owner and Contractor)
2. Background: Describes the context of the agreement and the parties' intention to enter into a construction contract
3. Definitions and Interpretation: Defines key terms used throughout the contract and establishes rules of interpretation
4. Scope of Work: Detailed description of the construction work to be performed by the Contractor
5. Contract Price and Payment Terms: Specifies the total contract price, payment schedule, and payment conditions
6. Project Timeline: Sets out the commencement date, completion date, and key project milestones
7. Contractor's Obligations: Lists all duties and responsibilities of the Contractor, including quality standards and compliance requirements
8. Owner's Obligations: Specifies the Owner's responsibilities, including site access, permits, and approvals
9. Materials and Workmanship: Establishes standards for materials and workmanship quality
10. Variations and Changes: Procedures for handling changes to the scope of work and their impact on price and timeline
11. Health and Safety: Safety requirements and procedures to be followed during construction
12. Insurance and Indemnity: Insurance requirements and indemnification obligations of both parties
13. Defects Liability: Terms regarding defect identification and rectification after completion
14. Termination: Grounds and procedures for contract termination by either party
15. Dispute Resolution: Procedures for resolving disputes between parties
16. General Provisions: Standard contractual provisions including notices, governing law, and entire agreement
1. Performance Security: Required when the owner wants a bank guarantee or performance bond to secure contractor's obligations
2. Advance Payment: Include when the contractor requires advance payment for mobilization
3. Retention Money: Used when portion of payment is to be retained as security against defects
4. Liquidated Damages: Include when specific compensation for delay needs to be pre-agreed
5. Force Majeure: Detailed provisions for handling unforeseen events, particularly relevant in areas prone to natural disasters
6. Environmental Compliance: Required for projects with significant environmental impact
7. Subcontracting: Include when subcontracting will be permitted under specific conditions
8. Site Conditions: Detailed provisions about site conditions when working in challenging locations
9. Quality Control Program: Detailed quality control requirements for complex projects
1. Schedule 1 - Scope of Work: Detailed technical specifications and drawings of the construction work
2. Schedule 2 - Bill of Quantities: Itemized list of quantities and prices for all work items
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and completion dates
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment terms and milestone payments
5. Schedule 5 - Site Plan and Access Details: Plans showing the construction site and access arrangements
6. Schedule 6 - List of Approved Materials: Specifications and brands of approved construction materials
7. Schedule 7 - Forms and Certificates: Standard forms for variations, completion certificates, and other project documents
8. Schedule 8 - Insurance Requirements: Detailed insurance coverage requirements and minimum amounts
9. Schedule 9 - Key Personnel: List of key personnel from both parties involved in the project
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Infrastructure
Commercial Property
Residential Property
Industrial Development
Public Works
Retail Development
Hospitality
Education
Healthcare
Relevant Teams
Legal
Construction
Project Management
Operations
Procurement
Finance
Risk & Compliance
Quality Control
Health & Safety
Commercial
Technical Services
Relevant Roles
Construction Manager
Project Director
Site Engineer
Contract Administrator
Legal Counsel
Property Developer
Procurement Manager
Quality Control Manager
Safety Officer
Architectural Manager
Commercial Director
Finance Manager
Operations Manager
Technical Director
Risk Manager
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