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Construction Subcontract for Philippines

Construction Subcontract Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions between a main contractor and a subcontractor for specific construction works. This document outlines the scope of work, payment terms, timeline, quality standards, and compliance requirements in accordance with Philippine construction regulations, including CIAP guidelines and the National Building Code. It incorporates essential provisions for safety, insurance, warranties, and dispute resolution while ensuring compliance with local labor laws and construction industry standards.

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Construction Subcontract

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What is a Construction Subcontract?

The Construction Subcontract is a crucial document used in the Philippine construction industry when a main contractor needs to delegate specific portions of a construction project to specialized subcontractors. This agreement is essential for projects of various scales, from commercial buildings to infrastructure developments, and must comply with Philippine legislation including the Civil Code, Construction Industry Authority of the Philippines (CIAP) regulations, and the National Building Code. The document typically includes detailed provisions for scope of work, payment terms, quality standards, safety requirements, and dispute resolution mechanisms, while incorporating specific requirements for construction permits, environmental compliance, and local labor laws. It serves as a critical tool for risk management and project execution, ensuring clear delineation of responsibilities and obligations between the main contractor and subcontractor.

What sections should be included in a Construction Subcontract?

1. Parties: Identifies the main contractor and subcontractor, including their legal names, registration details, and addresses

2. Background: Outlines the main contract, project context, and the basis for the subcontract arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Work: Detailed description of the subcontractor's work scope, including specific tasks, deliverables, and exclusions

5. Contract Price and Payment Terms: Specifies the contract sum, payment schedule, retention provisions, and payment procedures

6. Duration and Timeline: Sets out the commencement date, completion date, and key milestone dates

7. Subcontractor's Obligations: Lists all general and specific obligations of the subcontractor, including quality standards and compliance requirements

8. Main Contractor's Obligations: Outlines the main contractor's responsibilities and commitments

9. Materials and Equipment: Specifies responsibilities for procurement, storage, and management of materials and equipment

10. Safety and Compliance: Details safety requirements, compliance with laws and regulations, and required permits and licenses

11. Quality Control and Inspection: Establishes quality standards, inspection procedures, and acceptance criteria

12. Variations and Changes: Procedures for handling changes to scope, pricing, or timeline

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

14. Warranties and Defects Liability: Details warranty provisions and obligations during the defects 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 assignment rights

What sections are optional to include in a Construction Subcontract?

1. Performance Security: Required when the main contractor needs additional security for subcontractor performance

2. Advance Payment: Include when advance payments are to be made to the subcontractor

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

4. Environmental Protection: Required for projects with significant environmental impacts or requirements

5. Labor and Local Content Requirements: Include when there are specific requirements for local labor or content

6. Force Majeure: Detailed provisions for handling unforeseen events, particularly relevant in areas prone to natural disasters

7. Liquidated Damages: Include when specific damages for delay or non-performance need to be pre-agreed

8. Confidentiality: Required when sensitive information will be shared during the project

9. Anti-Corruption Provisions: Particularly important for government-related projects or when required by the main contract

What schedules should be included in a Construction Subcontract?

1. Schedule A - Scope of Works: Detailed technical specifications and drawings for the subcontract works

2. Schedule B - Bill of Quantities: Itemized list of quantities and rates for the subcontract works

3. Schedule C - Program of Works: Detailed timeline and schedule of activities

4. Schedule D - Payment Schedule: Detailed breakdown of payment milestones and amounts

5. Schedule E - Key Personnel: List of key personnel and their qualifications

6. Schedule F - Equipment Schedule: List of required equipment and responsibilities for provision

7. Schedule G - Form of Securities: Templates for performance security and other required bonds

8. Schedule H - HSE Requirements: Detailed health, safety, and environmental requirements

9. Schedule I - Quality Assurance Requirements: Detailed quality control procedures and requirements

10. Appendix 1 - Site Rules and Regulations: Specific rules and regulations for the construction site

11. Appendix 2 - Forms and Templates: Standard forms for variations, claims, and other project documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
























































Clauses















































Relevant Industries

Construction

Infrastructure

Real Estate Development

Industrial Construction

Commercial Construction

Residential Construction

Mining

Energy

Transportation

Manufacturing

Hospitality

Healthcare

Education

Retail

Public Works

Relevant Teams

Legal

Operations

Project Management

Commercial

Procurement

Finance

Risk Management

Health and Safety

Quality Assurance

Technical Services

Site Operations

Contracts Administration

Executive Leadership

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Quantity Surveyor

Site Engineer

Project Engineer

Legal Counsel

Risk Manager

Procurement Manager

Commercial Manager

Operations Director

Construction Director

Chief Executive Officer

Managing Director

Contracts Manager

Health and Safety Manager

Quality Assurance Manager

Finance Manager

Technical Director

Site Supervisor

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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