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CONTRACT TO DESIGN - Construction
CONTRACT TO DESIGN - Construction
AGREEMENT
PURPOSE
Whereas, the parties agreed to enter into a contract to design and this document shall
serve as the basis of their Agreement. As such the parties wish to memorialize in writing
their understandings pursuant thereto.
In case of any inconsistency or conflict among the provisions of the Agreement and any
other terms and conditions of any documents comprising the Contract Documents, the
provisions of the Agreement shall control. Concerning the Contract Documents, the
order
of precedence shall be as follows: 1) the Agreement, including Amendments and
Exhibits; 2) Change Orders; 3) Work Directive Changes. The Contract Documents listed
above represent the entire and integrated agreement between the parties hereto, and
supersede prior negotiations, representations, or agreements, either written or oral.
A. General Responsibility
The ARVIDERE CONSTRUCTION ENTERPRISE INC. shall prepare and the client
shall approve the following:
e) Cross-check and review the plans and selections with the client/owner prior to
printing of Blueprints.
f) Provide ten (10) sets of Blueprints (Exhibit H) for client/owner’s copy, Site copy,
Bank and other necessaries which require copies of the said blueprint.
The following are also the services that will be rendered by the firm:
Note: As these working Drawings and Specifications are being completed, the Firm will
keep the client/owner advised of the effects of any requested changes on the Contract
Time Schedule and/or the Guaranteed Maximum Price (“GMP”). Construction of the
Project shall be in accordance with these Drawings and Specifications as approved by
the client/owner and documents incorporated in the exhibits. The Drawings and
Specifications shall remain the property of ARVIDERE CONSTRUCTION ENTERPRISE
INC. and may not be used by the client/owner to other projects without the written
consent of the Firm.
4. Help in the selection of the best construction materials to utilize the working
budget.
5. Conduct weekly site visits during the construction period to assure the quality of
work and the accomplishment made within the agreed timeline.
8. Provide three (3) sets of As-Built Plans upon completion and turn over of the
Project as a requirement for the Occupancy Permit.
Any additional Works based on a Change Order which has been accepted and
approved by the owner/client within the construction period shall be included within the
warranty. However, additional works requested which are not agreed within the contract
and the appendices included shall be subject to an additional cost, hence, is not
covered by the warranty provided in this Section. A Certificate of Completion (Exhibit L)
and Certificate of Warranty (Exhibit M) shall be provided upon the completion of the
project signed by the owner/client and the respective Architect and Project Manager.
Time is of the essence in the performance of the Work under this Agreement.
ARVIDERE CONSTRUCTION ENTERPRISE INC. shall commence the Work within
______ calendar days from the Commencement Date, established in each Phase’s
Notice to Proceed. No Work shall be performed at the Project site prior to such
Commencement Dates.
Computation of Payment
The owner/client agrees to pay the Firm in one of the methods set forth below (check
one):
Section 7. NOTICES
Section 8. MODIFICATIONS
No modification or change to the Agreement shall be valid or binding upon the parties
unless in writing and executed by the party or parties intended to be bound by it or by a
written Change Order approved by both parties.
Subject to other provisions hereof, the Agreement shall be binding upon and shall inure
to the benefit of the successors and assigns of the parties to the Agreement.
a. Building Permit or Occupancy Permit Application. The owner shall be solely liable
for the cost of application of permits other fees required. The Company will
provide advanced payments but are reimbursable to the owner subject to 30% of
the cost which shall serve as a processing fee.
The services agreed and stated above shall be performed by the firm in good faith and
with all expertise required by law. However, the firm shall not be liable for the
performance, quality or timely completion made and accomplished by other contractors,
subcontractors or suppliers which are not signatories of the Project and/or was hired by
the owner/client. Moreover, the firm shall not be held liable for any changes made to the
Project by the owner/client without prior written notice to the Architect.
The owner/client shall have the right to terminate this Agreement without cause upon
seven (7) calendar days. Written notice to ARVIDERE CONSTRUCTION ENTERPRISE
INC. shall be made. In the event of such termination for convenience, ARVIDERE
CONSTRUCTION ENTERPRISE INC’s recovery against the owner/client shall be
limited to that portion of the Contract Amount earned through the date of termination,
together with any retainage withheld and reasonable termination expenses incurred, but
the Firm shall not be entitled to any other or further recovery against the owner/client,
including,
but not limited to, damages or any anticipated profit on portions of the Work not
performed.
The Agreement shall be interpreted under and its performance governed by the laws of
the Philippines, and the Parties stipulate venue for matters relating to the subject of this
Agreement shall be in the principal place of business of ARVIDERE CONSTRUCTION
ENTERPRISE INC.
Each of the Parties hereto agrees and represents that the Agreement comprises the full
and entire agreement between the parties affecting the Work contemplated, and no
other agreement or understanding of any nature concerning the same has been entered
into or will be recognized, and that all negotiations, acts, work performed, or payments
made prior to the execution hereof shall be deemed merged in, integrated and
superseded by the Agreement.
All drawings, specifications, sample boards which are made and use as instruments of
the services rendered by the Firm shall be the exclusive property of ARVIDERE
CONSTRUCTION ENTERPRISE INC. which reserves the right of copy of the said items
as granted by Republic Act No. 8293 or also known as the Intellectual Property Code of
the Philippines. Hence, is only for your use on the agreed Project by both parties and for
no other purpose. Any reproduction or reuse of the said materials without the written
consent of the Architect is prohibited.
________________________________________
Signature over printed name of Client/Owner
“EXHIBIT A”
A.3. Drawings are intended to show general arrangements, design and extent of Work
and are not intended to serve as shop drawings. Specifications are separated into
divisions for convenience of reference only and shall not be interpreted as establishing
divisions for the Work, trades, subcontracts, or extent of any part of the Work. In the
event of a discrepancy between or among the drawings, specifications of other Contract
Document provisions, ARVIDERE CONSTRUCTION ENTERPRISE INC. shall be
required to comply with the provision which is the more restrictive or stringent
requirement upon the ARVIDERE CONSTRUCTION ENTERPRISE INC., as
determined by its
B.1. Unless waived in writing by the owner/client, during the Construction Phase
ARVIDERE CONSTRUCTION ENTERPRISE INC. shall complete and submit to the the
owner/client on a weekly basis a daily log of the company’s work for the preceding week
in a format approved by the latter. The weekly log shall document all activities of
ARVIDERE CONSTRUCTION ENTERPRISE INC. at the Project site including, but not
limited to, the following:
Weather conditions showing the high and low temperatures during work hours,
the amount of precipitation received on the Project site, and any other weather
conditions which adversely affect the Work;
All equipment present at the Project site, description of equipment use and
designation of time equipment was used
The weekly log shall not constitute nor take the place of any notice required to be given
ARVIDERE CONSTRUCTION ENTERPRISE INC. to the owner/client pursuant to the
Contract Documents.
B.3. ARVIDERE CONSTRUCTION ENTERPRISE INC. shall keep all records and
supporting documentation which concern or relate to the Work hereunder for a minimum
of five (5) years from the date of termination of this Agreement or the date the Project is
completed, whichever is later.
such delay, stating the cause or causes thereof, or be deemed to have waived any right
which the company may have had to request a time extension.
D.1.The owner/client shall have the right at any time during the progress of the Work to
increase or decrease the Work. Promptly after being notified of a change, ARVIDERE
CONSTRUCTION ENTERPRISE INC. shall submit an itemized estimate of any cost or
time increases or savings it foresees as a result of the change. Except in an emergency
endangering life or property, or as expressly set forth herein, no addition or changes to
the Work shall be made except upon written order of the owner/client, and the
owner/client shall not be liable to the company for any increased compensation without
such written order. No officer, employee or agent of owner is authorized to direct any
extra or changed work orally.
D.2. A Change Order, in the form agreed upon by the parties, shall be issued and
executed promptly after an agreement is reached between ARVIDERE
CONSTRUCTION ENTERPRISE INC. and the owner concerning the requested
changes. The company shall promptly perform changes authorized by duly executed
Change Orders. The Contract Amount shall be adjusted in the Change Order in the
manner as the owner/client and the company shall mutually agree.
D.3. In the event a requested change results in an increase to the Contract Amount, as
to design the amount of the increase shall be based upon the standard hourly billing
rates, according to classification of ARVIDERE CONSTRUCTION ENTERPRISE INC.’s
Architect/Engineer plus expenses to be charged at actual cost. As to the construction,
the amount of the increase shall be limited to the ARVIDERE CONSTRUCTION
ENTERPRISE INC.’s reasonable direct labor and material costs and reasonable actual
equipment costs as a result of the change (including allowance for labor burden costs)
plus a maximum ten percent (10%) markup for all overhead and profit. In the event such
change Work is performed by a Subcontractor, a maximum ten percent (10%) markup
for all overhead and profit for all Subcontractors' and sub-subcontractors' direct labor
and material costs and actual equipment costs shall be permitted, with a maximum five
percent (5%) markup thereon by the ARVIDERE CONSTRUCTION ENTERPRISE INC.
for all of its overhead and profit, for a total maximum markup of fifteen percent (15%).
All compensation due the company and any Subcontractor or sub-subcontractor for field
and home office overhead is included in the markups noted above.
E.3. ARVIDERE CONSTRUCTION ENTERPRISE INC. shall proceed diligently with its
performance as directed by the owner, regardless of any pending Claim, action, suit or
administrative proceeding, unless otherwise agreed to by the owner in writing. The
owner/client shall continue to make payments in accordance with the Contract
Documents during the pendency of any Claim.
All permits and licenses necessary for the prosecution of the Work shall be procured
and paid for by the owner/client.
G. TERMINATION BY DEFAULT
(2) fails to properly and timely perform the Work as directed by the Agreement or as
provided for in the approved Progress Schedule;
(6) fails to resume Work which has been suspended within a reasonable time after
being notified to do so;
(8) allows any final judgment to stand against it unsatisfied for more than ten (10) days;
(10) fails to obey any applicable codes, laws, ordinances, rules or regulations with
respect to the Work;
H. COMPLETION
Upon receipt of written notice that the Work is ready for final inspection and acceptance
and upon receipt of a final Application for Payment, the owner shall promptly make such
inspection and, if it finds the work acceptable and fully performed under the Contract
Documents, shall promptly issue a final Certificate of Completion, stating that, on the
basis of observations and inspections, the Work has been completed in accordance
with the terms and conditions of the Contract Documents and that the entire balance
found to be due the company is due and payable. The final payment shall not become
due and payable until ARVIDERE CONSTRUCTION ENTERPRISE INC. submit the
Certificate of Completion and Certificate of Warranty.
“EXHIBIT L”
CERTIFICATE OF COMPLETION
PROJECT: ____________________________________________________________
OWNER: ______________________________________________________________
CONTRACTOR: ________________________________________________________
DATE: ________________________________________________________________
Moreover, all additional works made through a Change Order or requests which are not
within the terms agreed upon by the parties are completed and passed the inspection
test.
Acknowledged by:
“EXHIBIT M”
CERTIFICATE OF WARRANTY
PROJECT: ____________________________________________________________
OWNER: ______________________________________________________________
CONTRACTOR: ________________________________________________________
DATE: ________________________________________________________________
Moreover, any additional works through a Change Order that has been accepted and
approved shall be included in the warranty period. However, any additional works
requested which are over and above the scope of work specified in the contract shall be
charged as an additional cost in case any rectification shall be made and shall be
deemed outside the scope of the warranty period.
Acknowledged by: