CONSTRUCTION CONTRACT AGREEMENT
This Construction Contract (hereinafter referred to as a “Contract”) made and
entered into this 6th day of March 2023 by and between,
PROPTON BUILDERS INC., represented by its CEO, ANTONIO C. JUSON
(hereinafter referred to as “OWNER”) and
EUZEK BUILDERS, represented by its President, ENGR. BUTCH A.
CLAVECILLAS (hereinafter referred as “CONTRACTOR”); and
WHEREAS the Owner desires to construct the project at the address known
Lot 03 Blk 07 at Santan Ville., Silay City Negros Occidental.
WHEREAS the Contractor warrants being qualified to perform the work
specified herein.
NOW THEREFORE, in consideration of the mutual promises and premises
herein contained, the Owner and Contractor agree to meet and satisfy all terms and
general condition of this contract as follows,
I. DESCRIPTION OF WORK
A. The Owner and the Contractor Agree to Engage in a Build and Sell
Project, in which the Contractor will look for a lot owner willing to
venture and invest their lot and be paid after selling the property, with
the profit based on share equal.
B. As a result, the Owner will fund, build, and sell the project, while the
Contractor will construct at the exact cost to complete the project.
C. The Contractor does hereby covenant and agree to furnish all labor,
material and equipment, and to faithfully perform the work within the
time period copy of which is attached hereto as “ANNEX A” or as
establish by the Notice to Proceed for this contract, in strict accordance
with the detailed description of work (hereinafter referred to as the
“Specification or Bill of Materials”) and the subject to, and in strict
conformance with all of the conditions, covenants, stipulations, terms
and provision contained in this contract. All of the representations,
rights, and obligations of the Owner and Contractor are embodied in
the Contract and any prior oral and written agreement not included
CONSTRUCTION_CONTRACT_ PROPTON BUILDERS_EUZEK CONSTRUCTION
herein shall not be binding upon or inure to the benefit of any of the
parties.
D. This contract includes the Bill of Materials, Contractor’s proposal, and
if, applicable drawings and amendments to the Contract, which
incorporated by the references and specifically identified below and
hereby made part of this Contract copy of which is attached hereto as
“ANNEX B” and “ANNEX C”.
(1) Contractor’s Proposal or Bill of Materials or Cost Estimate
(2) Perspective Plan or Architectural Plan
II. COMPENSATION AND METHOD OF PAYMENT
A. Upon execution of the Contract, the Owner will obligate the necessary
funds to pay the contract sum in accordance with the Contract. The
Owner agrees to pay the Contractor for the full and faithful performance
of the work pursuant to this Contract at a sum equal to the aggregate
cost of work, labor, materials and supplies done and furnished at the
price and rates set forth in the Contractor’s proposal, said sum being
ONE MILLION SIX HUNDRED TWENTY FIVE THOUSAND 68/100
Pesos (Php 1,625,000.68). Contractor covenants and agrees to
faithfully comply with and perform each and every obligation impose
upon the Contractor by the Contract and the terms of the proposal, as
accepted by the Owner.
B. Advance payment of TWENTY THOUSAND Pesos (Php 20, 000 00)
represented as initial payment for permits.
C. FIRST AND PARTIAL BILLING: First & Partial Billing shall be
equivalent to 30% of the total project cost. This amount shall be
released upon Thirty Percent (30%) project completion.
D. SECOND AND PARTIAL BILLING: Second and partial billing shall
equivalent to 25% of the total project cost. This amount shall be
released upon Sixty Percent (60%) project completion.
E. THIRD AND PARTIAL BILLING : Third and partial billing shall
equivalent to 10% of the total project cost. This amount shall be
released upon Sixty Percent (85%) project completion.
F. FOURTH AND FINAL BILLING: Fourth and final billing shall equivalent
to 5% of the total project cost or. This amount shall be released upon
Sixty Percent (100%) project completion.
CONSTRUCTION_CONTRACT_ PROPTON BUILDERS_EUZEK CONSTRUCTION
III. GENERAL CONDITIONS
A. Proposal. This contract includes the Contractor’s proposal, has been
properly signed and dated by the Contractor and the Owner by signing
this Contract, and accepts the said Contractor’s proposal which
becomes part of this Contract.
B. Project Cost is a lump sum amount to complete the construction of ONE
MILLION SIX HUNDRED TWENTY FIVE THOUSAND 68/100 Pesos
(Php 1,625,000.68). Quantities per item of the Bill of Materials (BOM)
shall not be considered actual and not be the basis of the contract. Bill
of materials is attached just to show the scope of works, item
specifications and the lump sum cost of the project.
C. All materials and consumables shall be supplied by the Owner.
Ordering of materials shall be taken progressively as the need arises.
D. Excess materials. Scraps, scaffold, forms, tools, equipment and other
temporary structures being delivered, installed, deployed, and
constructed on site by the Contractor are properties of the Owner.
E. Project time extension shall be granted to the Contractor for the
accumulated unworkable days due to force-majeure and other
adversities beyond the control of the Contractor e.g. bad weather. Time
extension shall be based on the actual unworkable days as indicated in
the “Daily Record Sheets” or log book.
F. Liquidated Damages. The cost of liquidated damages shall be
computed as One Tenth (1/10) of One Percent (1%) per day of delay
from unfinished and or undelivered pay items or scope of works of the
project.
G. Permits & Licenses: Preparation of complete drawings, estimate,
specification, structural analysis and other technical documents shall be
under the Owner. However, corresponding fees such as but no limited
to building permit fees, zone clearance, barangay clearance, fire safety
certificates, and other documents pertaining to the securing of building
permit.
H. Utilities. Cost of utilities such as power and water needed to complete
this project is under the account of Owner.
CONSTRUCTION_CONTRACT_ PROPTON BUILDERS_EUZEK CONSTRUCTION
I. Damages/ Repair. The Contractor must take every reasonable effort to
protect the possession of the Owner that remain in the work area from
loss or damage. Any position of the property damage by the Contractor
or subcontractor during the course of work must be repaired at no
additional cost to the Owner. The term unsatisfactorily such as work as
has been rejected by the Owner, (e) carry on the work in a manner
contrary to this contract (f) otherwise fail to perform its obligation under
this Contract.
J. The mailing of such notice shall constitute notice to the Contractor
under terms of the Contract. Upon receiving said notice, the Contractor
shall vacate the premises and quit any work in progress or any parts
specified in said notice. The Owner may complete the work by
awarding another contract with the funds remaining in the Owner’s
account. The Contractor shall be entitled to payment by the Owner for
work performed only to the extent of the difference between the
Contract price and the cost to complete the work by another Contractor
after the contract is terminated.
VI. NOTICES
Notices to the parties shall be in writing and directed as follows:
Owner: ANTONIO C. JUSON
CEO PROPTON BUILDERS/ PROPTON LAND INC.,
Contractor: ENGR. BUTCH A.CLAVECILLAS
PRESIDENT/CONTRACTOR EUZEK BUILDERS
IN WITNESS WHEREOF, the Parties have hereunto set their hands at the
place first above written on this ___________________________, 2023.
OWNER:
By:
ANTONIO C. JUSON
CONTRACTOR:
CONSTRUCTION_CONTRACT_ PROPTON BUILDERS_EUZEK CONSTRUCTION
By:
BUTCH A. CLAVECILLAS
SIGNED IN THE PRESENCE OF:
CONSTRUCTION_CONTRACT_ PROPTON BUILDERS_EUZEK CONSTRUCTION
