The Builder Agreement is a crucial legal document used in the Philippine construction industry to formalize the relationship between property owners and construction contractors. This agreement is essential when engaging a builder for any construction project, whether residential, commercial, or industrial. The document must comply with Philippine legislation, including the Civil Code (Republic Act No. 386), the Contractors' License Law (RA 4566), and the National Building Code (PD 1096). The Builder Agreement typically includes detailed specifications of the construction work, payment schedules, quality standards, completion timelines, and warranty provisions. It serves as the primary reference point for project execution and dispute resolution, incorporating local building regulations and industry standards. The agreement should be customized based on project scope while maintaining compliance with Philippine construction and labor laws.
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1. Parties: Identification of the Owner and the Builder, 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 agreement
4. Scope of Work: Detailed description of the construction work to be performed, including specific deliverables and exclusions
5. Contract Price: Total contract value, payment schedule, and terms of payment
6. Timeline and Completion: Project schedule, milestones, completion dates, and provisions for extensions
7. Builder's Obligations: Comprehensive list of the builder's responsibilities, including compliance with laws and standards
8. Owner's Obligations: Rights and responsibilities of the property owner, including site access and approvals
9. Materials and Workmanship: Standards for materials, quality requirements, and workmanship specifications
10. Permits and Compliance: Requirements for obtaining necessary permits and ensuring compliance with local regulations
11. Insurance and Securities: Insurance requirements, performance bonds, and other security arrangements
12. Warranties: Warranty terms for workmanship and materials
13. Variations: Process for handling changes to scope, pricing, or timeline
14. Health and Safety: Safety requirements and protocols for the construction site
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Process for resolving disputes between parties
17. General Provisions: Standard legal provisions including notices, assignment, and governing law
1. Environmental Protection: Additional environmental obligations when project requires specific environmental measures
2. Indigenous Peoples Rights: Special provisions when construction affects areas with indigenous peoples' rights
3. Heritage Site Protection: Additional requirements when building near or affecting heritage sites
4. Subcontractor Provisions: Detailed provisions for management of subcontractors when applicable
5. Force Majeure: Specific provisions for handling natural disasters or unexpected events
6. Intellectual Property: IP provisions when custom designs or innovative construction methods are involved
7. Liquidated Damages: Specific penalties for delays or non-performance
8. Performance Incentives: Bonus structures for early completion or exceeding performance metrics
1. Schedule 1 - Construction Drawings: Detailed architectural and engineering drawings approved for construction
2. Schedule 2 - Bill of Quantities: Itemized list of materials and quantities with corresponding prices
3. Schedule 3 - Construction Schedule: Detailed timeline of construction activities and milestones
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment tranches and corresponding milestones
5. Schedule 5 - Technical Specifications: Detailed technical requirements for materials and construction methods
6. Schedule 6 - Site Details: Site plan, access points, and relevant site-specific information
7. Schedule 7 - Permits and Approvals: Copies of all required permits and regulatory approvals
8. Schedule 8 - Insurance Requirements: Detailed insurance specifications and coverage requirements
9. Appendix A - Quality Assurance Plan: Detailed quality control procedures and standards
10. Appendix B - Safety Manual: Site safety procedures and emergency protocols
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Property
Industrial Development
Engineering Services
Architecture Services
Project Management
Property Management
Relevant Teams
Legal
Operations
Construction
Project Management
Procurement
Finance
Risk and Compliance
Technical Services
Property Development
Quality Assurance
Contract Administration
Relevant Roles
Construction Manager
Project Director
Legal Counsel
Contract Administrator
Property Developer
Site Engineer
Procurement Manager
Quality Control Manager
Risk Manager
Compliance Officer
Operations Director
Chief Financial Officer
Technical Director
Development Manager
Facilities Manager
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