DESIGN AND BUILD AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

        This DESIGN AND BUILD AGREEMENT is entered into by and between

CLIENT 1, of legal age, Filipino, and his legal wife, CLIENT 2 of legal age, Filipino, both residents of Plantazzionne [ INSERT ADDRESS], Philippines, and referred to as the OWNER (see attached IDs), 

NAME OF ENGINEER, of legal age, Filipino, married and a resident of [ INSERT ADDRESS], and referred to as the ENGINEER (see attached ID),

and

NAME OF ARCHITECT, of legal age, Filipino, married and with office address at [INSERT ADDRESS], and referred to as the ARCHITECT (see attached ID).

W I T N E S S E T H:

        WHEREAS, the OWNER is the registered owner of a parcel of land located at ____________________ and covered by Transfer Certificate of Title No. _____________________, issued by the Register of Deeds of ________________;

        WHEREAS, the OWNER intends to construct a house on the above-mentioned parcel of land and, for that purpose, engaged the services of the ENGINEER and the ARCHITECT to undertake the completion of the project.

        NOW, THEREFORE, for and considering the initial premises, the parties agree as follows:

1. SERVICES AND RESPONSIBILITIES OF THE ARCHITECT:

Article I. Architect’s Scope of Professional Services

1. Preliminary Design (20% of the Architect Professional Fees & Services)
2. Designed Development (35% of the Architect Professional Fees & Services)
3. Contract Documents (20% of the Architect Professional Fees & Services)
4. Supervision (15% of the Architect Professional Fees & Services)

1.1 Items A, B, and C are in the process of being completed with the approval of the Owner as shown in the attached previous in-principle agreement and the to be completed plans. It has been agreed andhe agreement of the Architect and the Engineer to this contract that an initial amount of P350,000 will be paid to the Architect, which will be deducted from further fees due to the Architect. Item (D), supervision to ensure that construction will be undertaken according to the plans and specifications, will be carried out

by the Architect upon commencement of construction.  This task may be delegated to another person/company following consultation and agreement of the Owner. In particular, the Architect will perform the following tasks:

1. Verification of  Lot Documents
2. Contractor’s compliance with the general building construction guidelines of the association
3. Building Layout 
4. Building Easement
5. Material Inspection
6. Rebar installation. Before concrete pouring

Finishing Works

1. Masonry and Capentry Works
2. Floor and Wall Tiling

Roughing ins

1. Electrical Lay-out
2.  Plumbing and Ground Lay-out

Article II. Contract Price

2.1 The owner shall pay the architect for services rendered the contract sum of ONE MILLION NINE THOUSAND SEVENTY-SIX (₱1,009,076.70) PESOS & 70/100.

2.2 Other Fees – The owner shall pay the Architect for Other Fees over and above the Architect’s Professional Fee in THREE HUNDRED EIGHTY THOUSAND (P380,000.00) for the following:

        A.  Administration Fee -                                         P250,000.00

              This is for processing all government

               requirements such as the Building Permit,

               the Fire Department Requirements, the

               Occupancy Permit, the Water and

               Electrical connection requirements, and

               the Ayala requirements.

        B.  Allied Technical Services Fees –                         P 60,000.00

                This is to pay for the certification of

              the plans by the Structural Engineer,

              Master Plumber, the Electrical Engineer, 

              and the Mechanical Engineer.

3. Cost of the Government Fees include                 P70,000.00         Building Permit, Zoning Fee, Fire Clearance,                        and Occupancy Permit.                                                      

Article III. Payment Method

3.1 The owner will make the necessary payments to the following account of the Architect:

Account Name:

Name of bank and address:

Account Number:

Bank Swift code:

Article IV. Venue        

4.1 In case of dispute arising from, or involving, the implementation, enforcement, and/or interpretation of this agreement, both parties agree that the exclusive venue of any court action shall be in the appropriate courts in Bacolod City only and to the exclusion of all other venues.

2. SERVICES AND RESPONSIBILITIES OF THE ENGINEER:

ARTICLE 1. SCOPE OF WORKS

1.1        The Engineer, in consideration of the payment stated hereinafter, agrees to satisfactorily perform the following to commence and complete the PROJECT, make it fully operational and ready for use as shown on the drawings and described in the Specifications, instructions, and other related documents and as approved by the Owner:

1.11        Construction of a TWO-STOREY RESIDENTIAL RESIDENCE at __________________________.

1.12        Provision of labor, materials, and equipment to satisfactorily meet the following scope of work satisfactorily:

1. SITE WORKS

1. Clearing the site of debris and unwanted materials before turn-over.

2. CONCRETE AND MASONRY

1. Rebars and concrete pouring of concrete column-footings as indicated in the structural plans
2. Rebars and concrete pouring of columns for columns as per plans and specifications.
3. Rebars and concrete pouring of wall footing as indicated in the plan.
4. Setting of 4” concrete hollow blocks for exterior walls and exterior partitions as per plan and specifications.
5. Finishing of all exterior walls (rough finish) and interior partitions (smooth finish)
6. Filling and compaction of ground floor slab up to 0.30 M from subdivision street line.
7. Rebars and concreting of floor slab (4” concrete slab on fill with 10mm deformed steel rebars @ 0.40 m.o.c.b.w.).
8. Rebars and concrete pouring of second-floor slab
9. Construction of a water drain/trench around the house feeding into the village drainage system, including an underground cistern and water pump
10. Construction of a low perimeter fence demarking the lot at both sides and the rear.

3. CAPENTRY WORK

1. Fabrication and installation of all formworks ad scaffoldings
2. Exterior Ceiling as per plan
3. Interior Ceiling
4. Fabrication and installation of closets, cabinets, and accessories are indicated on the plans.
5. Purchase, Fabrication, setting, and installation of door jambs, doors, and door accessories as per schedule of doors.
6. Fabrication and installation of the door casing.
7. Setting of wooden stair planks.

4. STEEL WORKS

1. Roof Framing
2. Railings

5. ROOFING WORKS

1. Purchase and installation of Pre- painted long-span rib type white metal roofing sheets
2. Purchase and installation of plain g.i. (pls. spell out) multi-pointies

6. TILEWORKS

1. The setting of granite tiles, ceramic tiles, rustic floor tiles, and vitrified floor tiles as per plan and specifications using Regular Tile Adhesive
2. Setting of wall tiles up to a height of 2.70 meters from the floor line for bathrooms

7. ELECTRICAL WORKS

1. Installation service entrance
2. Installation of the electrical meter socket.
3. Wiring installation (single phase) and wiring devices as per plan.
4. Installation of LED ceiling lighting fixtures as per plan and specifications.
5. Installation of telephone lines.
6. Installation of circuit lines for cable connection.

8. PLUMBING

1. Purchase and install drainage, waste, and vent pipes for all toilets, bathrooms, kitchens, and laundry rooms.
2. Purchase and installation of water supply lines from the subdivision’s main water line and distribution lines for toilets
3. Purchase and installation of plumbing fixtures such as water closets, lavatories, shower heads, shower valves, and floor drains as per plan and bill of materials.
4. Purchase and installation of bathroom accessories such as toilet paper holders and soap holders.
5. Installation of storm drainage and catch basins.
6. Purchase and installation of multi-point water heaters for all toilets/baths, except in the maid’s bathroom.

9. PAINTING WORKS

1. Painting of exterior wall and interior walls using Davies Megacryl Semi-gloss Latex paint or equivalent.
2. Painting/staining of cabinet and closets using Davies wood Stain.
3. Application of concrete sealer and the like on stone surfaces.
4. Staining and application of polyurethane top coat on wood planks as stair thread.

10. GLASS AND GLAZING

1. Installation of Powder Coated Framed sliding windows and doors per plan and specifications.

2.   This contract does not include the following:

1.21        Landscaping

1.22        Purchase of appliances and installation units, freezer, refrigerators, range hood, and cooking range) and house furniture.

1.23        Payment of fees arising from the application of membership of the Owner to the local utility and cable companies or equivalent.

1.24        Purchase and install mirrors, automatic door closers, curtain hangers and rods, and other interior accessories.

1.25        Drilling and installation of water wells. (please delete; not allowed at  

                 Ayala)

1.26        The filling materials indicated in the plans and specifications are only within the premises of the building line. The filling of areas outside the building lines.

1.27       The purchase and installation of photovoltaic (PV) panels at the roof's south side, for which the Owner will engage a separate contractor.

1.28         The purchase of tiles, water heaters, water closets, bathroom fixtures, doors, etc., will be made following the owner's consultation.

ARTICLE 2. TIME OF COMPLETION

2.1        The work stipulated in this contract shall be completed “broom clean,” fully operational, and ready for use not later than Nine (9) months after the commencement of the work unless the owner herself causes the delay or because of her non-payment of her financial obligation to the Engineer or force majeure. Construction is scheduled to begin in February 2019. A detailed construction schedule is in Appendix --.

2.2        The counting construction period stipulated herein commences upon the start of the project's actual construction and does not include Sundays and holidays.

2.3        Extra works agreed upon by both parties shall be subject to an extension of the contract time.

ARTICLE 3. THE CONTRACT AMOUNT

That, for and in consideration of the faithful performance by the Engineer of this Contract, the Owner agrees to pay the amount of TEN MILLION NINETY THOUSAND SEVEN HUNDRED SIXTY-SEVEN PESOS (₱10,090,767.00), in the manner provided after this:

3.1        Both parties expressly agree that no change shall be made in the contract mentioned above amount as a result of any fluctuation in the cost of materials or labor.

3.2        Should the Owner require the Engineer to perform work over and above the mentioned by this Agreement, the additional cost shall be added to the Contract Amount and, likewise, should he be ordered to omit work as required by this Agreement, the cost of the work omitted shall be deducted from the Contract Amount. In either case, the cost of additions or reductions shall previously be mutually agreed upon in writing by both Owner and Engineer before execution.

3.3      A breakdown of the estimated Labor Cost and estimated Cost of the Bill of Materials to be used are in Appendix--.

ARTICLE 4. PAYMENTS

4.1        Payments on account of this Contract shall be made by the Owner to the Engineer in the following manner:

        Upon Start of Construction        -                ₱        1,009,076.70

        After 1st Month of Construction        -                1,026,773.33

        After 2nd Month of Construction        -                1,098,773.33

        After 3rd Month of Construction        -                   945,440.00

        After 4th Month of Construction        -                1,104,192.66

        After 5th Month of Construction        -                1,266,119.78

        After 6th Month of Construction        -                   573,263.55

        After 7th Month of Construction        -                   766,093.42

        After 8th Month of Construction        -                   766,093.42

        After 9th Month of Construction        -                   525,864.11

        Retention                                 -                1,009,076.70

                TOTAL                                ₱        10,090,076.70

4.2        Retention shall be released by issuing a PDC check dated 30 days after turn-over date. However, the said check shall be encashed upon the owner's advice after the Engineer's Notice.

4.3        Payment delay of 2 weeks upon submission of billing report Engineer will hold construction work until payment is made.

4.4       All payments due to the Engineer will be made through the account of the Architect as indicated in Article II. of Section I. above.

3.  ADMINISTRATION OF PROJECT EXECUTION

ARTICLE 1. THE CONTRACT DOCUMENTS

1.1        The following documents as prepared by the Architects, of submitted to and approved by the Office of the Building Officials, shall constitute an integral part of this contract as fully as if to that attached or herein stated, except as otherwise modified by mutual agreement of parties: Architectural Drawings, Structural Drawings, Electrical Drawings, Plumbing/Sanitary Drawings, Specifications and Minimum Standards of All Materials, and General Considerations (see Appendixes – to --).

ARTICLE 2. MONITORING AND REPORTING

2.1       The Architect will report to the Owner monthly about the construction's cost and progress. The Architect will inspect, verify, and sign off on all claims for payment submitted by the Engineer. Likewise, the Architect will identify any problems or issues that may arise during construction and notify the Owner accordingly. The Architect will maintain a database of all expenses with supporting documents incurred by the Engineer and payments made thereof.

2.2      The Architect and the Engineer will designate alternate persons with their respective companies who can perform the necessary duties and act as a contact and responsible person in their absence. This will be done before the commencement of construction.

2.3    The Owner will appoint a local liaison who will monitor construction on behalf of the Owner and be given full access to the construction during his weekly visits. This person will also be authorized to discuss any issues identified with the Architect and Engineer. The Owner will notify this person's name to Architect and Engineer before the commencement of construction.

ARTICLE 3. TURN-OVER

3.1        The project is deemed finished and ready for turn-over if all the works stipulated in the contract documents have satisfactorily complied.

3.2        Upon full completion of the project and payment of the corresponding financial obligation by the Owner, the Engineer shall immediately facilitate the processing the Occupancy permit.

ARTICLE 4. MAKING GOOD OF KNOWN DEFECTS AND OTHER LIABILITIES

4.1        The Engineer assumes responsibilities for detects arising from construction Two hundred forty (240) days after turn-over of the project.

ARTICLE 5. OTHER MATTERS

5.1        Subject to the subdivision's rules, the Owner allows the Engineer to use the site's premises to house the laborers and materials.

5.2        Actual water and electrical expenses shall be on account of the Engineer while construction is in progress.

5.3        The Engineer should be consulted if the Owner intends to provide or upgrade some materials to be used in the project. In such case, the value of the estimated item as reflected on the Bill of Materials shall be deducted from the contract amount.

ARTICLE 6. TERMINATION OF CONTRACT

6.1        This Contract is, as a result of this, terminated on terms mutually agreed upon by both parties.

6.2        If the contract is terminated based on causes not attributed to the Engineer, the payment of the remaining balance of the Contract amount is deemed demandable.

6.3        However, when the contract is terminated based on cause attributed to the Engineer, the payment shall be recomputed based on the actual accomplishment, and the excess payment is refunded not later than Five (5) days after the Engineer has been formally informed of the termination in writing by the Owner.

6.4        In case of a dispute involving the implementation, enforcement, and interpretation of this agreement, both parties agree that the exclusive venue of any court action shall be in the appropriate courts in Bacolod City only and to the exclusion of all other venues.

        IN WITNESS WHEREOF, the parties have set their signatures this ___ day of ______________________, 2020, in ______________, Philippines.

INSERT NAME AND SIGNATURES HERE

REPUBLIC OF THE PHILIPPINES        ]

City of Bacolod                                ]

x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x

BEFORE ME, a notary public for and in Bacolod City, personally appeared the following persons with their competent evidence of their identities as follows:

Known to me to the same persons who executed the foregoing agreement and who acknowledged to me that the same is their free and voluntary act and deed.  This Design & Build Agreement consists of SEVEN (7) PAGES, including this page on which the acknowledgment is written.

        WITNESS MY HAND AND SEAL on the date and place first above-written.

                                                        ____________________

Doc. No.        ____;

Page No.        ____;

Book No.        ____;

Series of         2018.