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Construction Subcontractor Agreement for Philippines

Construction Subcontractor Agreement 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. The document incorporates requirements from the Civil Code of the Philippines, Construction Industry Authority regulations, and relevant labor laws. It details the scope of work, payment terms, timeline, safety requirements, and compliance obligations while ensuring adherence to local construction standards and regulations. The agreement includes provisions for quality control, dispute resolution, and warranty obligations specific to the Philippine construction industry context.

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What is a Construction Subcontractor Agreement?

The Construction Subcontractor Agreement is essential for construction projects in the Philippines where specialized work needs to be delegated to qualified subcontractors. This document is used when a main contractor wishes to engage another contractor to perform specific portions of a larger construction project. It must comply with Philippine regulations, including the Civil Code, Construction Industry Authority of the Philippines (CIAP) Law, and Labor Code requirements. The agreement typically includes detailed specifications of work scope, payment structures, timelines, and quality standards. It's particularly important for ensuring clear delineation of responsibilities, risk allocation, and compliance with local construction industry standards. The document should be customized based on project size, complexity, and specific requirements while maintaining alignment with Philippine construction and labor regulations.

What sections should be included in a Construction Subcontractor Agreement?

1. Parties: Identification of the Main Contractor and Subcontractor, including their complete legal names, addresses, and registration details

2. Background: Context of the main construction project, relationship between parties, and basis for the subcontracting arrangement

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

4. Scope of Work: Detailed description of the specific works to be performed by the Subcontractor, including specifications and standards

5. Contract Price and Payment Terms: Agreed price, payment schedule, terms of payment, and procedures for progress payments and final payment

6. Timeline and Project Schedule: Project commencement date, completion date, milestones, and procedures for timeline modifications

7. Materials and Equipment: Responsibilities for providing materials and equipment, quality standards, and inspection procedures

8. Labor and Personnel: Requirements for workforce, qualifications, compliance with labor laws, and personnel management

9. Safety and Compliance: Safety requirements, compliance with OSHS, and other regulatory obligations

10. Quality Control: Quality standards, inspection procedures, and acceptance criteria for completed work

11. Insurance and Bonds: Required insurance coverage, performance bonds, and other security requirements

12. Warranties and Defects Liability: Warranty terms, defects liability period, and remediation procedures

13. Termination: Grounds for termination, procedures, and consequences of contract termination

14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration provisions

15. General Provisions: Standard contractual provisions including notices, amendments, and governing law

What sections are optional to include in a Construction Subcontractor Agreement?

1. Environmental Compliance: Required when project has specific environmental impact considerations or requires environmental permits

2. Intellectual Property Rights: Needed when design work or proprietary methods are involved in the subcontracted work

3. Confidentiality: Important when dealing with sensitive project information or proprietary construction methods

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

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

6. Technology and Software: Necessary when specific software or technology systems are used in project execution

7. Anti-Corruption Compliance: Important for large projects or those involving government contracts

What schedules should be included in a Construction Subcontractor Agreement?

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

2. Schedule B - Bill of Quantities: Itemized list of quantities, unit prices, and total costs for the subcontracted work

3. Schedule C - Project Timeline: Detailed project schedule showing milestones, dependencies, and completion dates

4. Schedule D - Payment Schedule: Detailed breakdown of payment terms, including progress payment milestones

5. Schedule E - Required Insurance: Specific insurance requirements including types of coverage and minimum amounts

6. Schedule F - Quality Standards: Detailed quality specifications and acceptance criteria

7. Schedule G - Safety Requirements: Specific safety protocols and requirements for the project

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

9. Appendix 1 - Key Personnel: List of key personnel from both parties with roles and responsibilities

10. Appendix 2 - Equipment Schedule: List of required equipment and tools for the project

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

Public Works

Manufacturing

Relevant Teams

Legal

Operations

Procurement

Project Management

Construction

Quality Assurance

Health and Safety

Commercial

Risk Management

Compliance

Technical Services

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Procurement Manager

Site Supervisor

Quality Control Manager

Safety Officer

Chief Engineer

Operations Director

Commercial Manager

Risk Manager

Compliance Officer

Technical Director

Construction Superintendent

Project Coordinator

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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