The Building Contract Termination document is essential when parties need to formally end their construction agreement in the Philippines, whether by mutual consent or due to breach of contract. This document type is used to Terminate Building Contract relationships while ensuring compliance with Philippine construction laws and regulations. It provides a structured framework for project closure, including detailed provisions for site handover, financial settlement, and ongoing obligations. The document must align with the Civil Code of the Philippines, CIAP regulations, and the National Building Code, making it crucial for both public and private construction projects. It serves as a vital tool for risk management and dispute prevention, particularly important in complex construction projects where multiple stakeholders are involved and significant financial interests are at stake.
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1. Parties: Identification of the parties to the contract, including the Employer and the Contractor
2. Background: Details of the original building contract, including date, project description, and reference numbers
3. Definitions: Key terms used in the termination agreement
4. Notice of Termination: Formal declaration of contract termination and effective date
5. Grounds for Termination: Specific reasons for termination with reference to relevant contract clauses or legal provisions
6. Outstanding Works Status: Current status of the construction works and percentage of completion
7. Handover Requirements: Process for site handover, including materials, equipment, and documentation
8. Financial Settlement: Terms for final payment, including outstanding payments and retention money
9. Release and Discharge: Mutual release from future obligations, subject to specified exceptions
10. Surviving Obligations: Obligations that continue after termination (warranties, confidentiality, etc.)
11. Governing Law: Confirmation of Philippine law as governing law
1. Dispute Resolution: Include when there are unresolved disputes or likely contentious issues
2. Intellectual Property Rights: Include when there are design rights or other IP issues to be addressed
3. Insurance and Bonds: Include when dealing with outstanding insurance claims or performance bonds
4. Subcontractor Provisions: Include when there are significant subcontractor relationships to be addressed
5. Defects Liability: Include when there are ongoing warranty obligations for completed works
6. Anti-Corruption Compliance: Include for government projects or when required by corporate policies
7. Force Majeure Events: Include when termination is related to force majeure circumstances
1. Schedule 1 - Project Details: Details of the original contract, amendments, and current status
2. Schedule 2 - Outstanding Works: Detailed list of incomplete works and their status
3. Schedule 3 - Financial Statement: Detailed breakdown of payments made, outstanding amounts, and final settlement calculations
4. Schedule 4 - Material and Equipment Inventory: List of materials and equipment on site and their disposition
5. Schedule 5 - Required Documents: List of documents to be handed over (permits, warranties, as-built drawings, etc.)
6. Schedule 6 - Defects List: List of known defects and remedial works required
7. Appendix A - Site Handover Protocol: Detailed procedure for site handover and inspection
8. Appendix B - Release Forms: Template forms for mutual release and discharge
Relevant legal definitions
Clauses
Relevant Industries
Construction
Real Estate Development
Infrastructure
Commercial Property
Residential Development
Industrial Construction
Government Infrastructure
Healthcare Construction
Educational Facilities
Hospitality Development
Retail Development
Relevant Teams
Legal
Construction
Project Management
Finance
Operations
Commercial
Procurement
Risk Management
Compliance
Contract Administration
Relevant Roles
Project Director
Construction Manager
Contract Administrator
Legal Counsel
Project Manager
Quantity Surveyor
Chief Financial Officer
Risk Manager
Procurement Manager
Site Engineer
Commercial Director
Operations Director
Development Manager
Claims Manager
Compliance Officer
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