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 CONTRACT DOCUMENTS – consists of the following:

1. Agreement

2. General conditions

3. Special provisions

4. Specifications

5. Drawings

 OWNER – person ordering the project for execution

 ARCHITECT – commissioned by the owner

 ENGINEER – person so named in the contract document

 PROJECT REPRESENTATIVE – full time construction inspector hired by owner assisting in the
supervision of the work.

 CONTRACTOR – person or firm whose proposal has been accepted & contract awarded

 SUB-CONTRACTOR – having direct contact with contractor, acts in behalf of the contractor in
executing any part of the contract

 SURETY – person, firm, or corporation providing guarantee for contractor’s bonds

 PROPOSAL – offer of a bidder

 PROPOSAL BOND – cashier’s check or surety bond with the proposal submitted by the bidder to
guarantee that the bidder will enter into the contract.

 PERFORMANCE BOND – (15%) approved form of security furnished by the contractor as a

guarantee to execute work in accordance with terms of the contract.
 PAYMENT BOND – (15%) approved form of security furnished by the contractor as guarantee to
pay all obligations arising from the contract

 GUARANTEE BOND – (15%) approved form of security furnished by the contractor to guarantee
to the quality of materials and workmanship performed.

 AGREEMENT – contract between owner and contractor undertaking the project

 ADVERTISEMENT/ INVITATION TO BID – notice or invitation issued to bidders giving

information of the magnitude and extent of the project, nature, etc.

 BID BULLETIN – additional information on contract documents

 INSTRUCTION TO BIDDERS – list of instructions on preparation & conditions for award of


 DRAWINGS – graphical representation of work

 GENERAL CONDITIONS – printed documents stipulating procedural and administrative aspects

of the contract

 SPECIAL PROVISIONS – instructions that supplement or modify drawings, specs, & general
conditions of the contract.

 SPECIFICATIONS – written or printed description of work describing qualities of materials and

mode of construction

 SUPPLEMENTARY SPECS – addt’l info issued as an addition or amendment to provisions of


 SCHEDULE OF MATERIALS AND FINISHES – outline specs enumerating type and trade names of
materials used

 BREAKDOWN OF WORK AND CORRESPONDING VALUES – list of work and corresponding value
in materials & labor including profit and overhead allowance.

 WRITTEN NOTICE – info, advice or notification pertinent to the project

 ACT OF GOD/ FORCE MAJEURE – catastrophes, phenomena of nature, misfortunes and

accidents which human prudence cannot foresee or prevent.

 TIME LIMITS – duration of time allowed by the contract for project completion

 LOCAL LAWS – laws, ordinances, and government regulations applicable to the project

 WORK – includes labor and materials, equipment, transportation, faculties necessary for
completion of the project

 FURNISH - “purchase and/or fabricate and deliver to the jobsite”

 INSTALL – build in, mount in positions, connect or apply

 PROVIDE – “furnish and install”


· Documents signed in quintuplicate by owner and contactor duly witnessed.

· Intent of contract documents – prescribe the complete work

- Intention is to include labor, materials, equipment and transportation necessary for completion


 Specs shall take control in discrepancies in drawings and specs.

 Any discrepancies, errors and omissions shall be reported to the architect or engineer. Any work
done involving errors are the contractor’s risk.

 Architect or engineer shall furnish additional detail drawings and instructions consistent to
contract documents.

 Contractor and architect and engineer shall jointly prepare a schedule in accordance to progress
of work.

 Contractor shall keep a copy of all drawings, specs, breakdown of work, and schedule of
constructions work, instructions at the site.

 Drawings, specs, and models are property of the architect and are to be returned at completion
of work and before final payment to the contractor is made


 Owner shall furnish contractor 3 sets of drawings and specs for free.

 Drawings and models must cooperate with specs to form as part of the contract documents.
Figures are to be followed in preference to measurement and scale.

 The contractor shall explain and verify any doubt as to the meaning of the drawings and specs.

1. If there is a conflict in both drawings and specs, the contractor, with the architect’s
permission, shall submit to the owner proposals as to which method or material is
required. If the les expensive work is done, the contractor shall credit the owner the
amount equivalent to the difference of the expensive and less expensive work.

2. The contractor must first refer to the architect before proceeding with the work.

 Discrepancies in figures, drawings must be referred to the architect before any adjustment be
made by the contractor. The decision of the architect will govern and must be followed by the

 Supplementary drawings and instructions shall be promptly supplied by the architect and must
conform to contract documents. Contractor shall do no work without proper drawings and

 Contractor and architect shall prepare a schedule a when detail drawings will be required.


 Contractor shall prepare at his own expense and submit 2 copies of all shop drawings to the
architect, who will make the necessary corrections, and file the corrected copies.

 Contractor shall check drawings before submitting to sub-contractors.

 Shop drawings shall represent:

1. Working and erection dimension

2. Arrangements and sectional views

3. Necessary details

4. Kinds of materials and finishes

 Shop Drawings shall be dated and contain:

1. Name of project

2. Descriptive names of equipment, materials and classified item numbers

3. Location at which materials or equipment are to be installed.

 Drawings shall be accompanied by a letter of transmittal containing name of project, contractor,

number of drawings, titles and other pertinent data.

 Contractor shall submit 3 sets of prints of shop drawings to the architect for approval. 1 copy
shall be returned to the contractor with necessary corrections.

1. Contractor shall make corrections and resubmit until approved by the architect.

2. Contractor shall insert date of approval on tracings and furnish the architect with 3
additional prints of approved drawings.

3. No work be done without architect’s approval.

4. Contractor shall mention specific variations of shop drawings from contract documents
in his letter of submittal.

 Contractor is responsible for accuracy of shop drawings.



 Contractor shall comply with all laws and regulations governing the project. If ever he resists
without the knowledge of the architect, he shall bear the consequences.

 Before bidding, the contractor must visit the site and make estimates of facilities and difficulties
attending to the scope of work and its execution.


 All permits and licenses necessary shall be secured and fees paid by the contractor but may be
reimbursed from the owner. Contractor is responsible if construction starts without necessary

 Contractor will secure the occupancy permit.

 Contractor will pay taxes pertinent to construction of the project.

 Owner is responsible for establishment of boundaries made by a licensed surveyor. He may

delegate the responsibility to the contractor but the owner must pay for surveyor’s fees.

1. Contractor shall verify all grades, lines and levels as indicated on drawings.

2. Contractor shall provide batter boards and maintain them. He shall establish grade
marks at each floor line.

3. Contractor shall layout exact location of partitions.

 Contractor shall pay the services of the surveyor when so required to confirm location of
columns, piers, etc. required by the contract. Copy of certification shall be furnished by the
architect and will represent as an independent verification of the layout.

1. Contractor shall furnish certifications from the surveyor that all partitions of work are in
accordance with contract requirements.

2. Surveyor shall verify and certify to lines and levels of any portion of work any time
deemed necessary by the architect.

 Final verification shall be submitted upon completion of work before payment is made.



 All materials and equipment must conform to all laws governing the project.

 Contractor shall obtain necessary permits and pay fees covered within period of construction.

 Contractor shall bear any and all damages by reason of any delay in work.

 Architect and engineer must refer to equipment by catalogue number and name.

1. Contractor shall furnish complete lists of substitutions prior to signing of contract.

2. Contractor shall abide by architect and engineer’s judgment when proposed items of
equipment are judged to be acceptable. General contractor shall submit proposals for
substitutions in writing.

 Contractor shall furnish 3 copies of complete catalogue data for every item of equipment.

1. Submission shall be compiled by contractor.

2. Data sheet or catalogue shall be indexed according to specification, section and


3. Submission shall become part of the contract.

4. Catalogue data does not supercede contract documents.

5. It is contractor’s responsibility that items be furnished fit the space available.

6. Contractor’s responsibility to install equipment to operate properly.


 Names of proposed manufacturers, material men and dealers shall be submitted to the architect
for approval.

1. No manufacturer shall be approved unless he has a good reputation, capacity and

adequate quality control.

2. Transactions shall be made through the contractor.

3. Contractor shall provide manufacturers with complete sets of specs and drawings.

4. Manufacturer shall have materials supplied by him properly coded or identified in

accordance with existing standards.

 Contractor shall furnish samples specified for approval.

1. 3 samples shall be submitted.

2. Samples shall be labeled, bearing material name and quality.

3. If specs require manufacturer’s installation directions, directions shall accompany

samples for approval.

4. 3 copies of letter of transmittal from contractor shall accompany all samples.

5. Transportation charges to architect’s office must be prepaid.

6. No orders of materials are to be made without architect’s approval.

 No substitution for materials be made without architect’s approval.

 Samples for materials to be used for substitution shall be approved by architect.

 Contractor shall submit samples for testing to the architect.

 All costs for shipping, handling and testing of samples are to be paid by the contractor.

 Quality of materials used shall be of best grade and new otherwise specified.

 Contractor shall provide space for subcontractors’ storage and work force.

 All materials affected by moisture shall be stored and protected from the weather.

 Moving materials will be done at the contractor’s expense.

 Defective materials or materials not conforming to specs shall be used upon approval. The
architect shall have the authority to remove or replace such deducting the cost from the

 Contractor shall pay for royalties and license fees on patented materials furnished by him.

 All materials shall be applied and installed following the manufacturer’s directions.



 Contractor shall confine materials to limits indicated by law.

 Contractor shall not load or permit any part of the structure to be loaded with a weight that will
disregard the safety of others.


 OFFICE AND CONTRACTOR’S BUILDING – wooden floor raised above ground; room of approx.
12 sq.m. for the architect,

 HOUSING FOR WORKERS – tents or protection on designated areas.

 SANITARY FIXTURES AND 1ST AID STATION – ample sanitary toilets and other conveniences
including water connections.

 TEMPORARY BARRICADES AND GUARD LIGHTS – necessary for proper prosecution and
completion of work. Lights located at false work tower to be provided by contractor.

 TEMPORARY WATER, POWER, AND TELEPHONE FACILITIES – provided by contractor through

arrangements with local utility companies. All expenses paid by the contractor

 TEMPORARY SIGNS – no advertisements to be displayed without architect’s approval.

 TEMPORARY ROADWAYS – provide proper access

 TEMPORARY STAIRS, LADDERS, RAMPS, and RUNWAYS – such shall meet requirements of local
 TEMPORARY ELEVATORS AND HOISTS – install adequate number of elevators and hoists
located bat sufficient distance from exterior walls.

 TEMPORARY ENCLOSURES – exterior doors shall be equipped with self-closing hardware;

windows equipped with removable sash frames.

 TEMPORARY OR TRIAL USAGE – privilege of owner.

 REMOVAL OF TEMPORARY STRUCTURES – contractor shall remove all temporary structures

erected by him and shall clean premises as condition of completing the work.



 The contractor shall maintain and protect owner’s property from damage.

1. The contractor shall provide watchmen (competent enough for the architect) and
provide all doorways with locks. It is the contractor who shall lock and close the doors
after each day’s work.

2. No smoking except on designated areas. No building of fires except with the consent of
the architect.

3. Contractor shall provide barrels of water and buckets for the main purpose of fire
protection and should not be used for any other reason.

4. Contractor shall provide adequate number of fire extinguishers.

 Old materials of value shall be piled in areas designated by the owner or architect and are in the
responsibility of the contractor.

 Existing trees and shrubs are to be boxed and protected from damage. Cutting of trees in site
must have consent of the architect.

1. Plants needed to be transplanted within 50 meters must be done at the expense of the contractor.

 Damage to trees, etc shall be made good by the contractor at his own expense.


 Contractor shall protect adjacent property and existing utilities as provided by law and contract
documents at his own expense. He is liable and must pay for all damages by his acts and
negligence or by his employees.


 In cases of emergency where a life is at stake, the contractor may have the power to act without
consultation. Any compensation claimed by the contractor shall be determined by agreement or


 The contractor must employ competent and efficient workmen and must act, upon request of
the architect, to discharge or remove any employee deemed incompetent. Should the
contractor fail to do so, the architect may withhold payment or suspend work until such orders
are complied with.

 The supervisor must be a licensed engineer or architect who will work personally and inspect at
least once a week.

 The contractor shall keep a competent project engineer who will represent the contractor in his
absence. His decisions are binding to the contractor and he has full authority to execute the
orders or directions of the architect.


· The contractor shall use methods and appliances necessary to complete the work within contract

1. The architect may order the contractor to increase efficiency or improve system of operation.
Failure of the architect to demand such does not relieve contractor of his liability to the contract.

2. The contractor shall furnish approved full information and evidence of appliances used if required.

· Stakes, benchmarks placed by contractor shall be gradually preserved and maintained by the
Contractor. If such are displaced or damage due to neglect, the contractor must replace them at his own

· The owner, architect and representatives shall have access to work for inspection. Contractor shall
provide proper facilities for access and inspection.

1. The contractor shall give the architect and party a notice of its readiness for inspection. If work
should be covered up without approval, the architect may uncover it for examination at contractor’s

2. Re-examination of work may be ordered by the architect and uncovered by the contractor. If work
is found not in accordance with the contract, the contractor shall pay for the cost.

3. Contractor shall furnish promptly without additional charge all facilities, labor, and materials
necessary for safe inspection without delaying schedule of work.

4. The architect may examine work already completed before final acceptance. If work is found
defective due to contractor’s fault, he shall defray all the expenses of such examination and satisfactory
reconstruction. If work is found to be satisfactory, actual cost of labor and materials in examination
plus 15% shall be allowed the contractor and granted extension time on account of additional work.

 Contractor shall perform any work during an emergency. He may inform the architect and
engineer of the emergency as soon as practicable.
 Adjustment of drawings to suit field conditions may be necessary during construction. The
contract recognizes the essence of this as long as resulting overruns and underruns do not
exceed 5%. Discrepancies shall be submitted immediately to the architect before adjustments.

 The owner may at any time change or alter by adding or deducting from work without
invalidating the contract by stating the changes to be made in writing.

 If sub-surface conditions that are different from that on the drawings are discovered, the
architect must be informed immediately. He must investigate and make the necessary changes
in the drawings and specs.

 If changes in work ma cause an increase or decrease in the amount due, the contract shall be
modified in writing and the contractor shall furnish proportionate additional performance bond.

 Value of extra work shall be determined by the following:

1. Estimate and acceptance in lump sum

2. Unit prices stipulated in contract provided that the extra does not exceed 20% of the
original contract details.

3. Actual direct cost plus 15% for contractor’s profit, overhead and contractor’s tax.
Contractor shall present a correct account of costs with vouchers. The architect will
certify the 15% allowance for overhead and profit of the contractor.

 Claim of adjustment must be asserted within 15 days from date of the order of change unless
architect will extend the time.

 Architect shall have the authority to make minor changes in the work not involving extra cost.

 Owner reserves to right to employ other persons to perform the extra work.

 If any instructions in drawings involve extra cost, the contractor will inform the architect
through written notice within 15 days after the receipt of such instruction. If delays incur in
mobilization of work, the contractor must give the architect a written notice within 15
days after recognition of delay and proceed to claim the extra cost.

 Contractor shall keep the premises free of waste materials from the accumulation of work. After
the work is completed, he shall remove all his rubbish, scaffolding, surplus materials and turn
over the work to the occupants with:

1. All dirt, stains from floors, walls, ceiling, etc. removed.

2. All woodwork, hardware and metalwork cleaned and polished.

3. All glazing, marble and tile work washed and polished.

 The owner has the right to use the completed portions of the work regardless of the time of
completion of work.
 Upon notice of completion of work from the contractor, the architect shall immediately inspect
the project. If the work is substantially complete (not less than 98% is finished), the architect
shall issue a certificate of completion of work in respect to the work.

 Prior to the issuance of the certification of completion, the contractor must execute a written
undertaking to finish any work during the period of Making Good of Known Defects or
Faults (period of not more than 60 days).

 The contractor shall execute at his own expense all work necessary for making good of known
defects within the period of 60 days after the issuance of the certificate of
completion or within 15 days after its expiration as a result of the inspection by the
architect. If the owner is responsible for the defect, the value of work will be regarded and paid
for as additional work.

 The contractor shall search for cause of any defects and faults in the project. If the cause of the
defect is something the contractor is not liable for, the owner will pay for the cost of work
carried out by the contractor. But if the cause binds the contractor liable, the cost of searching,
repair, rectification and make good of such defect shall be borne by him.


 Written notice to proceed work shall be given to the contractor following the execution of the
contract agreement.

 Contractor shall complete all the work contracted in the time stated. Computation of the
contract time shall commence on the 7th day from receipt of the notice to proceed.

 Contractor shall submit the schedule of work in CPM form or any form acceptable to the
architect, indicating the approximate dates each item will be started and completed, for

 Contractor will be allowed an extension based on the following reasons:

1. Delay due to the employees of the owner and the owner himself, act of god or force majeure,
delay by the architect pending arbitration, the contractor shall within 15 days from the occurrence of
such delay file the necessary request of extension for the approval of the architect. No extension of time
shall be granted for failure of owner to furnish materials unless they be required for proper execution of
work or contractor shall have made request for them 10 days before they are actually needed.

2. Written consent of bondsmen must be attached to any request for extension and submitted to
the owner.

3. If there is increase in work and the contract time is unreasonably short, the time allowance for
extension and increases shall be agreed upon in writing.

4. If no schedule or agreement stating upon which drawings shall be furnished is made, then no claim
for delay shall be allowed on the account of failure to furnish drawings until 2 weeks after demands for
such drawings.

5. If work is interrupted for any reason, it must be resumed on the removal of the cause of delay.
6. Contractor shall submit written notice to the architect at least 10 days prior to beginning,
suspending or resuming the work to the end that the architect may make preparations for inspection
without delaying the work. All delays resulting from failure of the contractor are the contractor’s risk. All
extra costs due to such delay will be deducted from the final payment.

 If failure to complete work at the said contract time, the contractor will pay the owner the
liquidated damages in the amount stipulated in the contract agreement.


 The contractor shall, within 15 days from receipt of notice to proceed, submit a complete
breakdown of work and corresponding value for approval and will be used as basis for all
requests for payment.

 The contractor shall submit a request for payment for work done, not more than once each
month. Each request shall be computed from the work completed on all items listed in the
breakdown of work, less 10% retention. When 50% of the contract has been accomplished, no
retention shall be made.

 The contractor, at his own expense, shall furnish the architect progress photographs which shall
be taken monthly.

1. Photograph size shall be 6” by 8”. Four exposures shall be taken (2 copies for each
exposure = 8), a total of 8 prints to be delivered to the architect, and all negatives
bearing the date of exposure and name of work.

2. No partial payment may be considered for approval without the pictures accompanying
request for payment.

 15 days upon receipt of the request for payment, the architect shall either issue a certificate of
payment or withhold the request and inform the contractor in writing the reasons for
withholding it. The certificate of payment shall include the value of work accomplished during
the period of time covered by the certificate.

 The architect may recommend withholding of payment on any of the following:

1. Defective work not remedied.

2. Reasonable evidence indicating probable filing of claims.

3. Failure of contractor to make payments to sub-contractors or for material and labor.

4. Reasonable doubt that the contract can be completed for the balance then unpaid.

5. Damage to another contractor.

 The architect shall estimate the value of work using the breakdown of work and corresponding
values as a basis. Estimates of the architect are considered final and conclusive evidence of the
amount of work performed and shall be basis for the full measure of the compensation of the
contractor, but bear in mind that the estimates are approximate only.
 Within 15 days from the date of approval of a request for payment and issuance of certificate
of payment, the owner shall pay the amount as certified, or such other amount he deems is due
the contractor informing both the contractor and architect in writing his reasons for paying the
amended amount.

 The contractor shall pay promptly his workmen, materials and equipment used, taxes and remit
all amount withheld from salaries and wages of his employees. If required by the owner, the
contractor shall swear before an officer duly authorized to administer oath that all persons who
have done work and all materials furnished have been paid for.

 No payments shall be made in excess of 65% of the contract price unless a notarized statement
is submitted by the contractor to the effect that all bills for labor, other than current wages, and
bills for materials have been paid.

 The contractor shall promptly remove from the premises all work condemned by the architect
as failing to conform to the contract. He shall replace and re-execute his own work in
accordance to the contract documents at his own expense.

 The contractor shall submit the following before final payment is made:

1. Certificate of final building occupancy

2. Certificate of final inspection of utilities

3. Original and 3 sets of prints of “as-built-drawings” of electrical, sanitary, gas, telephone

and mechanical works.

4. 3 copies of directory of panel boards and list of circuits.

5. 3 copies of instructions and manual for operating fixtures and equipment.

6. 3 copies of keying schedule.

7. Guarantee bond equivalent to 30% of the contract price covering a period of 1

year after the final acceptance of the work.

 The architect shall proceed to verify the work, make final estimates, certify the completion of
work and accept the same.

1. The owner shall then pay the contractor the remainder of the fee provided that the final
payment of the contract shall not be made until the contractor has submitted a sworn
statement showing that all taxes due from him, all materials and labor have been duly

2. The making and acceptance of the final payment shall constitute a waiver of all claims
by the contractor.

 The final certificate of payment nor any provisions may relieve the contractor of responsibility
for faulty materials. He shall remedy defects and pay for the damage, which will appear
within a year’s period from date of acceptance of work by the owner.
 No provision may limit the contractor’s liability to defects.

 The owner shall give notice of observed defects with reasonable promptness. All questions shall
be decided by the architect whose decision shall be subject to arbitration.

 The amount retained by the owner shall be released 3 months after the date of the final



 Owner reserves the right to let other contractors in connection to the work.


 The contractor shall provide other contractors the opportunity for introduction and storage of
materials and shall properly connect and coordinate his work with theirs.

 The contractor shall do the cutting, patching and fitting required of his work and must be fit to
be received by work of other contractors.

 Any cost caused by defective work shall be born by the party responsible. The contractor shall
not endanger any work by cutting, etc. or cut and alter any work done by the sub-contractor
without the architect’s consent.

 The contractor shall promptly inform the architect of any defects done by the sub-contractors.
His failure to inspect and report shall constitute an acceptance of proper execution of work by
the sub-contractor.

 Should the contractor cause any damage of the work done by the sub-contractors, both parties
will settle as such by an agreement and relieve the owner of any liability, which may arise there


 At least 15 days prior to the date of bidding, the contractor shall seek the architect’s clarification
as to which particular areas for which the competence of the sub-contractor shall be subject to
evaluation by the architect where after, the contractor may submit a list of prospective sub-
contractors for the architect’s approval.

 The contractor is responsible for the acts of his sub-contractors and persons directly employed
by them.


 The contractor agrees:

1. To be bound to the sub-contractor by all the obligations assumed by the owner to the
contractor under the contract documents.
2. To pay the sub-contractor, upon the payment of certificates.

3. To pay the sub-contractor, to such extent as may be provided by the contract


4. To pay the sub-contractor on demand for his work or materials as far as executed and
fixed in place less the retained percentage at the time the certificate should be issued.

5. To pay the sub-contractor adjust share of any fire insurance money received by the

6. To make no demand to the sub-contractor for liquidated damages or penalty for delay
in any sum in excess of the amount stated in the sub-contract.

7. To give the sub-contractor an opportunity to be present and to submit any evidence in

any arbitration involving his rights.

 The sub-contractor agrees:

1. To be bound to the contractor by the terms of agreement in the contract documents and to
assume toward him all obligations assumed to him by the owner.

2. To submit to the contractor application for payment in such reasonable time as to enable the
contractor to apply for payment.

3. To make all claims for extensions, extras, and for damages for delays to the contractor.

 The contractor and sub-contractor agree that their rights and obligations and all procedure shall
be analogous to those set forth in the contract.



 The contractor may suspend or terminate work upon 15 days written notice to the owner and
architect for the following:

1. Order of court or public authority caused the work to stop or suspension for 90
days through no act of the contractor and employees.

2. If architect fails to act upon request for payment within 15 days after presented.

3. If owner fails to act upon request for payment within 15 days after presented.

4. If owner fails to pay the contractor within 30 days after its award by arbitration.


 The owner, upon certification of the architect justifying his action, may terminate the contract
with the contractor within 15 days written notice and surety of the contractor if any and take
possession of the premises, tools, materials, etc.
 The owner shall terminate contract based on the following:

1. If contractor declares bankruptcy or assign assets to creditors.

2. Disregard or violate provisions of the contract documents or fail to prosecute work according to

3. Fail to provide qualified superintendents, workman, sub-contractors and materials.

4. Fail to make payments to sub-contractors, workmen and dealers.


 The contractor, upon receipt of notice of termination, shall vacate position and work stated in
the notice. All materials, equipment, etc. shall remain, at the option of the architect, for
completion of work.

 The owner shall take over the work and proceed in administration.

 The architect will ascertain and fix the value of work completed by the contractor.

1. If expenditures of owner on completion of work including all charges prior to

termination of the contract are not in excess of the contract price, the difference
between total expenditures and contract price may be applied to settle claims, and the
balance may be paid to the contractor.

2. No amount in excess of the combined value of completed work, retained percentage,

and usable materials shall be paid.

3. In case of suspension of work, all unpaid work and expenses incurred during suspension
shall be evaluated by the architect and paid for by the owner.

 The full extent of damage the contractor and/or his sureties shall be liable shall be:

1. Total daily liquidated damages until the date the owner takes over work.

2. Excess cost incurred by owner in completion of the project over the contract price,
which includes administrative services, supervision and inspection.



 The contractor shall take necessary precautions for the safety of employees. The contractor
shall erect barriers, supports, braces, shoring, danger signs and necessary safeguards to protect
workmen from any accident and damage in the consequence of his work.

 The contractor shall designate a member of his organization whose duty shall be prevention of
accidents and damage to the owner’s property and adjoining property and his name and
position will be reported to the architect.
 The owner shall not be responsible for the following:

1. Death of disease contracted by contractor or employees

2. Contractor’s plant or materials

3. Damages caused by the contractor to any property of the owner and adjoining property

All damages are the contractor’s responsibility.

 The contractor shall indemnify and save harmless the owner against all losses and claims,
demands, payments, suits, actions, recoveries and judgment brought or recovered against him.
Claims for payment and repairs for damages shall be settled by the contractor at his own


 The contractor shall secure and maintain such insurance from a company acceptable to the
owner. He shall not commence work until he has obtained insurance and shall have filed the
certificate of insurance or the certified copy of the insurance policy to the owner. The policy will
not be cancelled prior to 10 days’ written notice to the owner of intention to cancel.

 The contractor shall furnish a performance bond of equal to 15% of the contract
amount and 15% payment bond covering payments and obligations arising from the contract,
as form of sureties for the owner and will remain in effect until replaced by the guarantee bond.

 The owner will release the performance and payment bonds after the expiration of 2
months from the final acceptance of work. Only after shall the contractor furnish a guarantee
bond in the amount of 30% of the total contract cost and shall be for a period of 1
year commencing from the date of acceptance of work guaranteeing the quality of work and

 Contractor’s guarantee-warranty:

1. The contractor shall secure warranties from sub-contractors and deliver copies to the
owner upon completion of work.

2. The contractor shall warrant all work performed by him where guarantee is required.

3. The contractor shall warrant and guarantee for a period of 1 year or for longer periods
so provided in the specs all materials and workmanship installed under the contract.

4. The contractor hereby agrees to make repairs to correct defective work within a period
of 5 days after written notice at his own expense within the agreed period of warranty.

5. The owner may have the defective work done and charge the cost against the amount
retained, if the work costs more than the retained amount, the contractor and his
sureties will pay the remaining balance.


 The owner, although optional, shall be responsible and maintain such insurance to protect him
from personal injury including disease and death of persons under his employment, etc.

 The owner and architect shall give a list of personnel assigned to the project who need to be
covered by insurance and amount of coverage.


 Before release of the final payment and retained percentage, the contractor must deliver to the
owner a complete release of all liens arising out of the contract, or receipts in full lieu.

 Assignment:

1. The contract shall not be assigned by the contractor without prior written consent of
the owner and such consent shall not relieve the contractor from responsibility and
liability of all terms and conditions of the contract.

2. The owner’s consent of sub-letting of work shall; not be granted until the contractor
furnishes the owner with evidence that the sub-contractor has ample insurance to the
same extent.

3. The contractor shall exonerate, indemnify and save harmless the owner form any loss
and expense caused by sub-letting.

4. In case of transfer without previous consent, the owner may refuse to carry out the
contract, but rights to breach the contract is reserved to the owner and the contractor.

 Claim for damages shall be made in writing to the party liable within a reasonable time and not
later than the final payment and shall be adjusted by agreement or arbitration.

 Disputes:

1. The architect shall make decisions on all claims of owner and contractor on all matters
relating to the progress and execution of work or interpretation of contract documents.

2. The architect, whose decision is final, will decide disputes, concerning questions of fact
arising under the contract.

3. if the architect fails to render a decision within 15 days after parties presented their
evidence, either party may demand arbitration.

 All disputes, claims, questions subject to arbitration shall be settled in accordance with the
provisions of this UAP document.