The Works Contract is a fundamental document in the Philippine construction industry, essential for any project involving construction, renovation, or infrastructure development. This contract type is specifically designed to comply with Philippine legal requirements, including the Civil Code, National Building Code, and Construction Industry Authority of the Philippines (CIAP) regulations. It is typically used when engaging contractors for construction projects, ranging from building developments to infrastructure works, and includes comprehensive provisions for scope definition, payment structures, timelines, quality standards, and regulatory compliance. The document addresses unique aspects of Philippine construction law, including local permitting requirements, workers' rights under Philippine labor law, and environmental regulations. It serves as a crucial tool for project owners and contractors to establish clear terms, allocate risks, and ensure smooth project execution while maintaining compliance with local legal frameworks.
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Key Requirements PROMPT example:
Works Contract
"I need a Works Contract for the construction of a commercial warehouse in Manila, with a project value of 50M PHP and completion deadline of March 2025, including specific provisions for phased completion and local authority approvals."
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1. Parties: Identification of the Employer and the Contractor, including their complete legal names, addresses, and registration details
2. Background: Context of the agreement, including brief project overview and basis for entering into the contract
3. Definitions and Interpretation: Definitions of key terms used throughout the contract and rules for interpreting the agreement
4. Scope of Works: Detailed description of the construction works to be performed, including specific deliverables and objectives
5. Contract Price and Payment Terms: Amount payable for the works, payment schedule, method of payment, and conditions for payment
6. Timeline and Completion: Project schedule, completion dates, milestones, and provisions for extensions of time
7. Contractor's Obligations: Key responsibilities including workforce, materials, equipment, safety standards, and compliance with laws
8. Employer's Obligations: Responsibilities including site access, permits, approvals, and provision of necessary information
9. Quality and Standards: Required quality standards, inspection procedures, and acceptance criteria
10. Variations: Process for handling changes to scope, pricing, or timeline of works
11. Health, Safety and Environment: Requirements for workplace safety, environmental protection, and compliance with regulations
12. Insurance and Indemnity: Required insurance coverage and indemnification obligations of both parties
13. Defects Liability: Duration of defects liability period and obligations for rectifying defects
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 clauses including notices, governing law, entire agreement, and amendments
1. Performance Security: Required when the project value exceeds certain thresholds or when specifically requested by the Employer
2. Advance Payment: Included when advance payments are to be made, specifying terms and security requirements
3. Subcontracting: Required when subcontracting is permitted, specifying conditions and approval requirements
4. Equipment and Materials Supply: Included when specific arrangements exist for supply of materials or equipment by the Employer
5. Force Majeure: Detailed provisions for force majeure events, particularly relevant in areas prone to natural disasters
6. Intellectual Property Rights: Required when the works involve design elements or proprietary technology
7. Site Conditions: Included when there are specific site-related risks or conditions that need addressing
8. Testing and Commissioning: Required for projects involving mechanical or electrical installations
1. Schedule 1 - Scope of Works: Detailed technical specifications, drawings, and work descriptions
2. Schedule 2 - Project Timeline: Detailed project schedule, milestones, and completion dates
3. Schedule 3 - Bill of Quantities: Itemized list of quantities, unit rates, and prices
4. Schedule 4 - Payment Schedule: Detailed breakdown of payment terms, milestones, and amounts
5. Schedule 5 - Technical Specifications: Detailed technical requirements and standards for materials and workmanship
6. Schedule 6 - Site Information: Site details, access points, existing conditions, and restrictions
7. Schedule 7 - Forms and Certificates: Standard forms for variations, completion certificates, and other project documents
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements including types, coverage amounts, and special conditions
9. Appendix A - Required Permits and Licenses: List of required regulatory approvals and permits
10. Appendix B - Health and Safety Requirements: Detailed safety procedures and requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Infrastructure
Real Estate Development
Mining
Manufacturing
Energy
Telecommunications
Transportation
Industrial Development
Public Works
Commercial Development
Residential Development
Relevant Teams
Legal
Operations
Procurement
Construction
Project Management
Commercial
Risk and Compliance
Finance
Technical Services
Business Development
Property Development
Relevant Roles
Project Manager
Construction Manager
Contract Administrator
Legal Counsel
Chief Executive Officer
Operations Director
Procurement Manager
Site Engineer
Quantity Surveyor
Risk Manager
Commercial Director
Development Manager
Technical Director
Compliance Officer
Finance Director
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