OWNER – CONTRACTOR

AGREEMENT

PROJECT : RESIDENTIAL RENOVATION

LOCATION : CAMELLA HOMES, BRGY. BATA, BACOLOD CITY
OWNER : MR. & MRS. MIKE MARQUEZ
CONTRATOR : ARCHCREA (Architectural Creations)

This AGREEMENT, made and entered into this ____ day of ___________ Twenty Hundred and Nineteen by
and between:

MR. & MRS. MIKE MARQUEZ, with postal address at A-42 Tindalo Avenue, Capitol Shopping Center, Bacolod
City, Negros Occidental, the party of the First Part, hereinafter called the OWNERS

-and-

ARCHCREA represented by ROBERTO T. GELITO, with postal address at No. 87 Luzuriaga St., Bacolod City, the
party of the Second Part, hereinafter called CONTRACTOR.

WITNESSETH,

That the Owner and the Contractor, for and in consideration of the covenants, agreement and stipulation set
forth, do hereby agree as follows:

ARTICLE 1 SCOPE OF WORK

1.01 The Contractor, in consideration of the payment to be made by the Owner to the Contractor,
agrees to furnish all labor, equipment, tools and supervision for the satisfactory and faithful
performance of all the work necessary to commence and complete the Project, ready for use
except the works to be done by other parties as are specifically excluded here by agreement
of the parties hereto. All materials required for the execution of the scope of work stipulated
in this contract shall be supplied by the Owner. For full details of the Scope of Work of the
Contractor refer to attached Annex A
1.02 The arrangement as stipulated in Article 1.01 shall be classified as Construction Work
Undertaken by Administration.

ARTICLE 2 CONTRACT COMPLETION AND LIQUIDATED DAMAGES

2.01 The work stipulated in this Contract shall be completed, “broom” clean, within sixty (60)
working days form the date of the Notice to Proceed is received by the Contractor.
2.02 Without limiting the full extent of the Contractor’s liabilities, the Contractor fully agrees to
pay the amount of THREE THOUSAND EIGHT HUNDRED FIFTY SIX PESOS AND SEVENTY
CENTAVOS (Php3,700.00) or the equivalent of One-tenth of One Percent (0.10%) of the
contract amount, for every calendar day of delay. The said payment to be considered as
Liquidated Damages until the project is completed.
2.03 Both Parties, cognizant of the fact that the Contractor will be supplying the construction
materials, labor and equipments, will waive the standard “Force Majeure Conditions” for
building construction.
2.04 The Contractor will have a grace period of fifteen (15) days after the sixty (60) days in
consideration of possible delays in the delivery of construction materials. This provision
extinguishes all responsibility that may be attributed to the Owner as a cause for any delay in
the delivery of construction materials that consequently delayed the execution of related
construction work included in the Contractor’s scope of works stipulated herein.
2.05 The Contractor, by proper documentation of Force Majeure events validated by any of the
Owner’s representatives through the construction logbook and other acceptable means of
validating actual facts occurring at the construction site, may add to the 15-day grace period
those days when work stoppage occurred due to Force Majeure events.
2.06 Payment for liquidated damages stipulated herein will commence the day after the total
number of days covered by the 15-days grace period and the established and approved Force
Majeure instances has expired.

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 2.07 Force Majeure events as stipulated in this contract will be limited to inclement weather
conditions, for example, typhoons, and earthquake of such magnitude and intensity that will
require the inspection by the structural engineer who certified the structural design of the
building under construction before work will be allowed to continue.

ARTICLE 3 THE CONTRACT AMOUNT

3.01 The Owner agrees that for and in consideration of the faithful performance by the Contractor
of this Contract, shall pay to the Contractor, in a manner provided hereinafter, the amount of
THREE HUNDRED SEVENTY THOUSAND PESOS (370,000.00) excluded of Value Added Tax and
net of withholding taxes of 2%.
3.02 Should the Owner require the Contractor to perform work over and above that is required by
this Agreement, the addition cost shall be added to the Contract Amount and, likewise, should
the Contractor be ordered to omit work as required by this Agreement, the cost of work
omitted shall be deducted from the Contract Amount. In either case, the cost of additions or
deductions shall previously be mutually agreed upon in writing by both Owner and Contractor
before execution of the work.
3.03 Any payment due and payable to the General Contractor may be offset against any liquidated
damage payable to the Owner under this Contract.

ARTICLE 4 PAYMENT
4.01 Payments on account of this Contract shall be made by Owner using as a basis the “Breakdown
of work and Corresponding Value” as reflected in the Bid Form submitted by the Contractor.
The agreed terms of payment shall be:

1. 50% of the Contract Amount or the equivalent of ONE HUNDRED EIGHTY FIVE
THOUSAND (Php185,000.00) Advance Payment within the first month after the issuance
of the Notice to Proceed;
2. Progress Billing based on “Breakdown of work and Corresponding Value”.
3. Upon completion of the work stipulated in this contract, the remaining balance LESS the
equivalent of 5% of the contract amount or the equivalent of EIGHTEEN THOUSAND FIVE
HUNDRED (Php18,500.00).
4. The remaining balance equivalent to 5% of the Contract Amount to be paid after the
completion of the said project .

ARTICLE 5 TAXES, LICENSES, PERMIT AND FEES

All taxes, licenses, permits, and fees which may be due to the local and/or national
government on account of performance and completion of the work stipulated herein and
fees for testing of materials and samples shall be paid for by the Owner.

ARTICLE 6 WARRANTY AND LIABILITIES

6.01 The Contractor fully warrants to workmanship to be free from defects and/or damages for
Twelve (12) Months after the established date of turn-over and acceptance by the Owner. The
date of turn-over and acceptance is not the same as the date of the release of the Occupancy
Permit.
6.02 The warranty ensures the Owner that any defective work determined to be included in the
Contractor’s Scope of work will be repaired and/or rectified by the Contractor without any
added cost to the Owner.
6.03 The Contractor will be liable for any misuse and damage to the construction materials supplied
by the Owner if said misuse and damage is established to be caused by the Contractor or any
of his workers. The Contractor will replace all misused and damaged materials at no extra or
added cost to the Owner. Furthermore, the replacement shall be of the same quality and
quantity as supplied by the Owner.
6.04 The Contractor will be liable for damages and/or injury to other parties if such damage and/or
injury is established to have been caused by personnel associated with the Contractor.

- - - - - - - - - - NOTHING FOLLOWS - - - - - - - - - -

The Parties to this agreement hereby agree to full performance of the covenants constrained herein.

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IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first above given, hereunto
set their hand at the bottom of this page and on the left-hand margin of all the other pages of this
Agreement.

By:

MR. & MRS. MIKE MARQUEZ ROBERTO T. GELITO/ ARCHCREA

_______________________________ ______________________________
OWNERS CONTRACTOR

SIGNED IN THE PRESENCE OF:

_____________________________ _____________________________
Witness Witness

Republic of the Philippines

City of Bacolod

Before me, a Notary Public in and for the City of _______________ personally appeared.
______________________________________ with Government Issued ID _________________ No.
_________________ issued on ______________, 20______ at _________________ and
_________________________ with Government Issued ID _______________ No.
_____________________ issued at ______________________ on ____________, 20 _____, both known
to me and to me known to be the same person who executed the foregoing instrument and acknowledged
to me that the same is their free act deed.

In witness whereof, I have hereunto set my hand and affixed my Notarial seal this _______ day of
__________________ 20 ___ in the City of ______________, Philippines.

____________________________
Notary Public