Construction Work Agreement

Construction Work Agreement Template for Philippines

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Key Requirements PROMPT example:

"I need a Construction Work Agreement for a 5-story commercial building project in Manila, with a contract value of 50 million pesos, starting March 2025, including specific provisions for green building certification and local environmental compliance."

Document background

The Construction Work Agreement is a vital legal document used in the Philippines construction industry to formalize the relationship between property owners/employers and contractors. This agreement is essential when engaging contractors for any construction project, whether residential, commercial, or industrial. It must comply with Philippine legislation including the Civil Code, CIAP regulations, National Building Code, and local building ordinances. The document typically includes detailed specifications of the work, pricing structures, timelines, quality standards, and safety requirements. It also addresses crucial aspects such as permits, insurance requirements, and dispute resolution mechanisms specific to the Philippine context. The agreement protects both parties' interests while ensuring adherence to local construction standards and regulations.

Suggested Sections

1. Parties: Identification and details of the Owner/Employer and the Contractor, including their legal status and representatives

2. Background: Context of the agreement, including brief description of the project and premises

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Work: Detailed description of the construction work to be performed, including general obligations of the Contractor

5. Contract Price: Total contract value, payment terms, schedule of payments, and retention amounts

6. Project Timeline: Commencement date, completion date, project milestones, and provisions for extensions of time

7. Materials and Workmanship: Quality standards, specifications for materials, and workmanship requirements

8. Contractor's Obligations: Specific responsibilities including permits, licenses, workforce, equipment, and safety measures

9. Owner's Obligations: Responsibilities of the owner including site access, approvals, and owner-supplied materials if any

10. Variations and Changes: Procedures for handling changes to scope, pricing of variations, and approval process

11. Safety and Compliance: Requirements for workplace safety, compliance with laws and regulations

12. Insurance and Indemnity: Required insurance coverage and indemnification obligations

13. Defects Liability: Defects liability period, remediation process, and warranties

14. Termination: Grounds and procedures for contract termination by either party

15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures

16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

Optional Sections

1. Performance Security: Required when project value exceeds certain thresholds or when specifically requested by the Owner

2. Subcontracting: Include when subcontracting is permitted, specifying conditions and approval requirements

3. Environmental Protection: Required for projects with significant environmental impact or specific environmental requirements

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

5. Site Conditions: Include for projects where ground conditions or existing structures may impact construction

6. Quality Control Program: Detailed quality control requirements for large or complex projects

7. Progress Reports: Specific reporting requirements for larger projects or those with multiple phases

8. Intellectual Property: Include when design elements or proprietary methods are involved

9. Foreign Currency Provisions: Required when materials or equipment are imported or payments involve foreign currency

Suggested Schedules

1. Schedule A - Scope of Work Details: Detailed technical specifications, drawings, and work breakdown structure

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

3. Schedule C - Project Timeline: Detailed project schedule, milestones, and critical path activities

4. Schedule D - Payment Schedule: Detailed breakdown of payment terms, milestones, and conditions

5. Schedule E - Site Plan and Drawings: Architectural, structural, and other relevant drawings

6. Schedule F - Material Specifications: Detailed specifications for materials to be used

7. Schedule G - Quality Standards: Specific quality standards, testing requirements, and acceptance criteria

8. Schedule H - Safety Requirements: Detailed safety protocols and requirements

9. Appendix 1 - Required Permits and Licenses: List of required permits and responsibilities for obtaining them

10. Appendix 2 - Insurance Requirements: Detailed insurance coverage requirements and certificates

11. Appendix 3 - Forms and Certificates: Standard forms for variations, completion certificates, and other documents

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate Development

Commercial Construction

Residential Construction

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Institutions

Hospitality

Retail

Manufacturing

Government and Public Works

Energy and Utilities

Transportation

Relevant Teams

Legal

Operations

Procurement

Construction

Property Development

Risk Management

Compliance

Finance

Commercial

Technical Services

Health and Safety

Quality Assurance

Project Management

Facilities Management

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Legal Counsel

Property Developer

Facility Manager

Procurement Manager

Chief Operating Officer

Risk Manager

Compliance Officer

Construction Site Supervisor

Quality Control Manager

Health and Safety Officer

Commercial Director

Chief Financial Officer

Technical Director

Operations Manager

Development Manager

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