DESIGN and CONSTRUCTION SUPERVISION SERVICES

AGREEMENT
(Project Administration)

KNOW ALL MEN BY THESE PRESENTS:

THIS AGREEMENT, made and entered into this __________________________ by and

between:

JUAN DELA CRUZ with address at #61 Anthyllis corner Orchard streets, Cypress
Village, Cebu City, Philippines, the party of the First Part, hereinafter called “the OWNER”

and

DESIGN THIS ARCHITECTURAL FIRM, represented by ARCH. JD, with postal

address at ________________________________, the party of the Second Part, herein
called as “the PROJECT ADMINISTRATOR”.

WITNESSETH:

WHEREAS, the PROJECT ADMINISTRATOR offers design and build services on project
supervision and management basis, such as but not limited to: drafting and making designs and cost-
estimates of homes and building systems; rebuilding, remodeling, renovation, and making interior
designs of homes and building systems; and construction project planning, development,
implementation, and management, on a fixed-based compensation;

WHEREAS, the OWNER has voluntarily sought and engaged the Design and Build Services (Project
Administration) of the PROJECT ADMINISTRATOR for the construction of the following
PROJECT:

PROJECT : Proposed 2-Storey Residence

LOCATION : _________________________________________________
OWNER : Juan Dela Cruz

NOW THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants
and stipulations herein made, the parties hereby agree to be bound by the terms and conditions stipulated
hereunder:

ARTICLE 1
GENERAL SCOPE OF WORK

Section 1. SCOPE OF WORK. The scope of work to be done by the PROJECT ADMINISTRATOR
consists of professional services for the following:

a. Site development planning (SDP) of the grounds of the building, including other concomitant
structures within the Project site, as may be determined by the OWNER.
b. Basic (Regular) Detailed Architectural and Engineering (A&E) Design of the PROJECT and
preparation of related documents.
c. Construction of the PROJECT according to the A&E Design, and purchase construction
materials for the account of the OWNER.
d. Supervision and management of the construction of the PROJECT and all its incidents.

ARTICLE 2
PROJECT ADMINISTRATOR’S SERVICES

Section 1. SERVICES. The PROJECT ADMINISTRATOR’s Services shall consist of the following:

I. Preparation and Submission of Designs and Documents

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 Schematic Design Phase
a. The PROJECT ADMINISTRATOR shall consult with the OWNER to ascertain the
requirements of the Project and shall officially confirm such requirements to the
OWNER:
b. The PROJECT ADMINISTRATOR shall prepare the Schematic Design Studies leading
to a recommended solution together with a general description of the Project for approval
by the OWNER.
c. The PROJECT ADMINISTRATOR shall submit to the OWNER a Statement of
Probable Project: Construction Cost (SPPCC) based on current cost parameters (refer
to Annex “A” of this AGREEMENT, as supplied by the PROJECT
ADMINISTRATOR).

Design Development Phase (Preliminary Studies)

a. The PROJECT ADMINISTRATOR shall prepare from the approved Schematic Design
Studies, the Design Development Documents consisting of plans, elevations and other
drawings, and outline specifications, to fix and illustrate the size and character of the
entire Project, in its essential as to kinds of materials, type of structure, mechanical,
electrical and sanitary systems and such other work as may be required.
b. The PROJECT ADMINISTRATOR shall submit to the OWNER a further Statement
of Probable Project Construction Cost (SPPCC).

Contract Documents Phase

a. The PROJECT ADMINISTRATOR shall prepare from the approved Design
Development Documents, the Construction Drawings, Plans, Designs and Specifications
setting forth in detail the work required for the architectural, structural, electrical,
electronic, mechanical, plumbing, sanitary, service-connected equipment and site
development work.
b. The PROJECT ADMINISTRATOR shall prepare specifications describing the type and
quality of materials, finishes, manner of construction and the general conditions under
which the Project is to be constructed.
c. The PROJECT ADMINISTRATOR shall furnish not more than ten (10) sets of the
required plans, designs, drawings, specifications and estimates for the purpose of securing
the Building Permit for the Project.
d. The PROJECT ADMINISTRATOR shall keep the OWNER informed of any
adjustments to the previous Statement of Probable Project Construction Cost (SPPCC)
indicated by changes in scope, requirements or market conditions.
e. The PROJECT ADMINISTRATOR shall assist the OWNER in filing the required
documents to secure approval of governmental authorities having jurisdiction over the
design of the Project.

II. Full-time Construction Supervision (FCS) and Build/ Construction Phase

a. The PROJECT ADMINISTRATOR shall prepare the Construction documents

including the phases of the construction and the corresponding timetables for the
completion of such phases.
b. The PROJECT ADMINISTRATOR shall assist the OWNER in obtaining proposals
from Constructors and in awarding and preparing construction contracts not covered by
the SPPCC (Annex “A” hereof).
c. The PROJECT ADMINISTRATOR shall supervise and manage the construction phase
of the PROJECT according to its A&E Design.
d. The PROJECT ADMINISTRATOR shall check and approve samples, schedules, shop
drawings and other submissions for the conformance with the information given under
the Contract Documents of this AGREEMENT, prepare change orders and assemble
written guarantees required for submission to the OWNER.
e. The PROJECT ADMINISTRATOR shall be the fulltime construction inspector. As
construction inspector, the PROJECT ADMINISTRATOR has technical control and
supervision of the PROJECT and shall make regular reports to the OWNER as to
progress and quality of the work done. The PROJECT ADMINISTRATOR shall also
provide the Construction Plans and Phases to the OWNER as well as the probable
timetable of its completion.
f. The PROJECT ADMINISTRATOR shall impose and provide quality control in the
construction of the Project based on current standards as provided by law and/or best
practices of the constructions industry.

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 g. There will be regular evaluation of the construction works and daily inspection reports
that will be submitted to the OWNER. The PROJECT ADMINISTRATOR will make
regular visits to the site to familiarize himself generally with the progress and quality of
the work and to determine in general if the work is proceeding in accordance with the
Contract Documents. The PROJECT ADMINISTRATOR will be required to make
exhaustive or continuous on-site inspections to check the quality or quantity of the work
and will be responsible for the Constructor's failure to carry out the construction work in
accordance with the Contract Documents. During such visits and on the basis of his
observations while at the site, the PROJECT ADMINISTRATOR will keep the
OWNER informed of the progress of the work, will endeavor to guard the OWNER
against defects and deficiencies in the work of Constructors, and he may condemn work
as failing to conform to the Contract Documents.
h. The herein FCS shall not include the hiring as well as providing the necessary manpower
for the construction of the PROJECT. All labor costs including the hiring of manpower
shall be at the expense of the OWNER.
i. Construction materials and equipment shall be provided by PROJECT
ADMINISTRATOR but also at the expense of the OWNER. In all transactions with
third persons, including but not limited to sellers and suppliers of construction materials
to be used in relation to the PROJECT, the OWNER hereby assigns the PROJECT
ADMINISTRATOR as its agent, authorized to make the said transactions with third
persons, at all times with consent from the OWNER, who may also participate in the said
transactions.

Section 2. COST RECORDS. During the progress of work, the PROJECT ADMINISTRATOR
under the FCS shall furnish the OWNER two (2) copies of records of expenses actually incurred for
the construction, and which shall be the basis for progress billings.

Upon completion of the Project the PROJECT ADMINISTRATOR shall furnish the OWNER two (2)
copies of the Summary of all actual cost of services, materials, equipment, fixtures, and all items used at
and for the completion of the construction of the Project.

ARTICLE 3
DESIGN AND BUILD (PROJECT MANAGEMENT) FEE
AND MANNER OF PAYMENT

Section 1. FEES AND MANNER OF PAYMENT. The OWNER agrees to pay the PROJECT
ADMINISTRATOR the DESIGN AND BUILD (PROJECT MANAGEMENT) FEE in the full
amount of FOUR HUNDRED THOUSAND PESOS (PhP 400,000.00), payable as follows:

a. A minimum of Twenty-Five Thousand Pesos (PhP 25,000.00) upon signing of this Agreement
as the mobilization component of the agreed DESIGN AND BUILD (PROJECT
MANAGEMENT) FEE.

b. 10% of every billing for actual costs of materials, which amount shall be paid within ten (10)
days from receipt of billing, until the DESIGN AND BUILD (PROJECT MANAGEMENT)
FEE herein agreed upon is fully paid, subject to Section 2 of this Article on Retention Money.

Any decrease or savings from the cost estimates provided in the Contract Documents shall be credited
to the account of the OWNER. In the same manner, any increase or escalation of the prices of materials,
tools, equipment, and facilities specified in the Contract Documents by reason of inflation and other
normal economic factors shall likewise be borne by the OWNER.

Any savings or price escalation costs shall not affect the DESIGN AND BUILD (PROJECT
MANAGEMENT) FEE herein agreed upon by the parties.

The OWNER agrees to make partial payments during each of the various stages of the PROJECT
ADMINISTRATOR’s work, upon request of the PROJECT ADMINISTRATOR, provided that such
payments are within the framework of the manner of payments outlined above.

Section 2. RETENTION MONEY. The last billable 10% for actual costs of materials shall be held
by the OWNER for one (1) month from turn-over of the PROJECT as Retention Money, as security
for necessary repairs covered by the warranties of the PROJECT ADMINISTRATOR. This Retention
Money shall be released to the PROJECT ADMINISTRATOR upon the lapse of the said period.

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Section 3. SCOPE OF THE FEES. The DESIGN AND BUILD (PROJECT MANAGEMENT)
FEE referred to herein applies to project management of the construction work done by the PROJECT
ADMINISTRATOR based on the Construction Documents. Any construction work where the
PROJECT ADMINISTRATOR has to render more than the regular or basic services as herein agreed,
shall be the subject of a special additional charge commensurate with the special services required. Such
special charge shall be in addition to the DESIGN AND BUILD (PROJECT MANAGEMENT) FEE
provided herein.

Section 4. TURN-OVER. The completed project will be turned-over to the OWNER upon FULL
payment of the DESIGN AND BUILD (PROJECT MANAGEMENT) FEE, less the Retention Money
under Section 2 hereof.

ARTICLE 4
TIME AND SCHEDULE OF COMPLETION

Section 1. PROJECT PERIOD. The PROJECT ADMINISTRATOR shall complete the PROJECT
within 180 calendar days from the date of the issuance of all government permits and regulatory
clearances, hereinafter referred to as the “PROJECT PERIOD”.

Section 2. EXTENSION. The following are grounds for the extension of the PROJECT PERIOD,
in which case the PROJECT ADMINISTRATOR shall not be held liable for the cost therefor:

a. Force majeure and fortuitous events, such as but not limited to flood, typhoon, earthquake,
accidents, natural calamities, including those which affect the timely delivery of materials,
tools, equipment, facilities, and services provided in the Contract Documents;
b. Changes and alterations made or otherwise approved by the OWNER;
c. Delay in the payment of the fees by the OWNER; and
d. Delay caused by the OWNER;
e. Any other delays independent of the will of the PROJECT ADMINISTRATOR.

Section 3. DELAY ATTRIBUTABLE TO THE PROJECT ADMINISTRATOR. In the event

that the PROJECT ADMINISTRATOR fails to complete the PROJECT within the agreed PROJECT
PERIOD for causes other than those listed under the immediately preceding paragraph hereof and
attributable solely on the part of the PROJECT ADMINISTRATOR, the latter undertakes to pay the
OWNER liquidated damages in the amount of PhP 5,000.00 per day of delay.

ARTICLE 5
WARRANTY AND GUARANTEE

Section 1. WARRANTY. The PROJECT ADMINISTRATOR warrants to the OWNER that all the
materials to be used in the PROJECT are free from any defects and in line with the specifications and
requirements detailed in the Contract Documents. The PROJECT ADMINISTRATOR also warrants
that its professionals are competent and able to perform their respective works in the PROJECT.

Section 2. GUARANTEE. The PROJECT ADMINISTRATOR guarantees the quality of the

electrical, plumbing, and structural works in the PROJECT, and the PROJECT ADMINISTRATOR
undertakes to make the necessary repairs for the said defects at the sole expense of the PROJECT
ADMINISTRATOR. The PROJECT ADMINISTRATOR shall be liable for the full amount of repairs
covered by this guarantee.

This guarantee does not cover defects, damages, deterioration, and other conditions of the quality of the
PROJECT caused by force majeure, fortuitous event, accidents, acts made by the OWNER, hairline
cracks and/or minor defects, ordinary use or wear-and-tear, and other causes independent of the will of
the PROJECT ADMINISTRATOR.
ARTICLE 6
THE OWNER'S RESPONSIBILITIES

Section 1. OWNER’S RESPONSIBILITIES. The following are the responsibilities of the OWNER:

a. The OWNER shall provide full information as to his requirements for the PROJECT.
b. The OWNER shall designate, when necessary, representatives authorized to act in his behalf.
He shall examine documents submitted by the PROJECT ADMINISTRATOR and render

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 decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of the
PROJECT ADMINISTRATOR's work. He shall observe the procedure of issuing orders to
any constructor or third persons only through the PROJECT ADMINISTRATOR.
c. The OWNER shall furnish or direct the PROJECT ADMINISTRATOR to obtain at the
OWNER's expense, a certified survey of the site, giving as required, grades and lines of streets,
alleys, pavements, and adjoining property; road rights of way (RROWs), other rights of way
(ROWs) and legal easements, restrictions, boundaries and contours of the building site;
locations, dimensions and complete data pertaining to existing buildings, other improvements
and trees, full information as to available service utility lines both public and private and test
borings and pits necessary for determining soil and sub-soil conditions.
d. The OWNER shall pay for structural, chemical, mechanical, soil mechanics or other tests and
reports as may be required.
e. The OWNER shall pay for design and consulting services on acoustic, communication,
electronic and other specialty systems as may be required by the Project.
f. The OWNER shall arrange and pay for such legal, auditing and insurance counseling services
and taxes as may be required for the Project or by the Government.
g. If the OWNER observes or otherwise becomes aware of any defect in the Project, he shall
give prompt written notice thereof to the PROJECT ADMINISTRATOR.
h. The OWNER shall hire or contract the necessary manpower to provide labor for the
construction of the PROJECT.

ARTICLE 7
PROJECT CONSTRUCTION COST

Section 1. PROJECT CONSTRUCTION COST. The Project Construction Cost as herein referred
to and specified in Annex “A”, means the cost of the PROJECT, including plumbing and electrical
fixtures, mechanical equipment, air-conditioning equipment, generators, pumps, elevators, escalators,
fire-fighting equipment, automatic fire sprinkler system, communication and sound systems, elements
attached to the building and all items indicated in the drawing, specified or designed by the Architect.

ARTICLE 8
OTHER EXPENSES CHARGEABLE TO THE OWNER

Section 1. EXPENSES CHARGEABLE TO THE OWNER. The following are excluded from
the DESIGN AND BUILD (PROJECT MANAGEMENT) FEE agreed upon by the Parties:

a. Government Taxes on Services: The DESIGN AND BUILD (PROJECT MANAGEMENT)

FEE as stipulated is net to the PROJECT ADMINISTRATOR. Any tax that the Government
may impose on the PROJECT ADMINISTRATOR as a consequence of the service
performed for the Project (exclusive of income tax) shall be paid by the OWNER.

b. Separate Services: That if the OWNER requires the PROJECT ADMINISTRATOR to design
or plan movable closets, cabinets, pieces of furniture, covered walks, grottos, pools,
landscaping and other items of similar nature, the OWNER shall pay the PROJECT
ADMINISTRATOR additional compensation in the amount of Ten Percent (10.0%) of the
construction cost of the above special work.

c. Other Professional Services: That the DESIGN AND BUILD (PROJECT

MANAGEMENT) FEE includes normal structural, electrical, sanitary and mechanical
engineering services; but does not include services for survey, soil exploration and laboratory
tests which are on the account of the OWNER. Other services that may be needed in order
to complete the Project i.e. acoustic engineers, mural painters, sculptor and interior designers/
decorators are to be recommended by the PROJECT ADMINISTRATOR for the OWNER's
approval.

d. Miniature Models: That the PROJECT ADMINISTRATOR may make and include miniature
models of studies as part of his preliminary sketches if he deems it be necessary. No extra
charge for such miniature models shall be made by the PROJECT ADMINISTRATOR.
However, if the OWNER desires to have such miniature models of the final and approved
preliminary drawings for exhibitive and display purposes, the OWNER shall pay for the cost
of said miniature models.

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 e. Extra Sets of Contract Documents: That the PROJECT ADMINISTRATOR is to furnish the
OWNER ten (10) sets of Drawings: Specifications and other Contract Documents. The cost
for the printing or reproduction of extra sets of Contract Documents by the OWNER or his
representatives is to be borne by the OWNER.

ARTICLE 9
OWNERSHIP OF THE ARCHITECTURAL DOCUMENTS

Section 1. OWNERSHIP OF DOCUMENTS. Following the Intellectual Property Code of the

Philippines, all architectural documents, not limited to plans, designs, drawings, specifications, reports
and copies thereof, prepared and furnished by the PROJECT ADMINISTRATOR in connection with
the PROJECT pursuant to this Agreement, are instruments of professional service. As instruments of
professional service they are the intellectual property of the PROJECT ADMINISTRATOR whether
the work for which they are made may be executed or not, and are not to be reproduced or used on
other work except by written agreement with the PROJECT ADMINISTRATOR.

ARTICLE 10
CONTRACTUAL RELATIONS

Section 1. NATURE OF THE AGREEMENT. The OWNER hereby engages the services of the
PROJECT ADMINISTRATOR as an independent contractor and not as an employee. As an
independent contractor, the PROJECT ADMINISTRATOR has the full liberty and authority to
determine and control the means and method to perform its obligations under this Agreement such as
but not limited to hiring and firing of allied professionals and other employees, sourcing of materials,
tools, and equipment, and providing transportation and other facilities necessary for the completion of
the PROJECT. In no way shall the professionals or employees hired by the PROJECT
ADMINISTRATOR for the PROJECT be the employees of the OWNER.

Section 2. SUB-CONTRACTING. The PROJECT ADMINISTRATOR may enter into sub-

contracts with other contractors, professionals, and other service providers (“Sub-Contractors”) for the
performance of some or, if due to extraordinary circumstances, all of its obligations under this
Agreement, without prior approval from the OWNER, provided that in its agreement with the Sub-
Contractors, the PROJECT ADMINISTRATOR shall incorporate the provisions of this Agreement.
Furthermore, it is understood that the contract between the PROJECT ADMINISTRATOR and the
Sub-Contractors shall only be binding and effective between and among them, and thus, to the exclusion
of the OWNER.

ARTICLE 11
TERMINATION

Section 1. TERMINATION BY THE OWNER. Should the OWNER decide to terminate the
services of the PROJECT ADMINISTRATOR before the completion of the PROJECT and thus,
within the PROJECT PERIOD but without fault on the part of the PROJECT ADMINISTRATOR,
the OWNER shall clearly and unequivocally inform the PROJECT ADMINISTRATOR in writing.

In this case, the OWNER shall pay the PROJECT ADMINISTRATOR ten percent (10%) of the actual
unbilled cost of materials upon the date of termination, plus PhP 30,000.00 as pre-termination damages.

Section 2. TERMINATION OR ABANDONMENT BY THE PROJECT ADMINISTRATOR.

Should the PROJECT ADMINISTRATOR terminate or abandon the PROJECT without fault on the
part of the OWNER, the PROJECT ADMINISTRATOR shall be liable to the OWNER the full amount
of DESIGN AND BUILD (PROJECT MANAGEMENT) FEE as abandonment damages.

Section 3. LIEN. Any claims of the PROJECT ADMINISTRATOR for payment of the DESIGN
AND BUILD (PROJECT MANAGEMENT) FEE, or a portion thereof, shall constitute as a lien on
the PROJECT. As such, the PROJECT ADMINISTRATOR shall have the right, among others, to
refuse to turn over to the OWNER the PROJECT.

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 ARTICLE 12
DISPUTE SETTLEMENT

Section 1. ARBITRATION. All questions in dispute under this Agreement shall be submitted in
accordance with the provisions of R.A. No. 9285, otherwise known as the Alternative Dispute
Resolution (ADR) Act of 2004 and as provided for under E.O. No. 1000, governing Construction (and
Consulting) Industry Arbitration, as well as Art. 2042 of the New Civil Code.

The parties to this Agreement hereby agree to full performance of the covenants contained herein.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on

___________________________ at __________________________________ , Philippines.

JUAN DELA CRUZ DESIGN THIS ARCHITECTURAL

Owner FIRM
TIN ______________________ Project Administrator
represented by:

ARCH. JD
TIN ______________________

Signed in the presence of:

___________________________ and __________________________

REPUBLIC OF THE PHILIPPINES )

___________________________ ) ss

ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in the above-named jurisdiction, personally
appeared the above-stated persons with their respective valid identification cards as stated, who
are personally known to me to be the same persons described in the foregoing instrument and
who acknowledged before me that their signatures on the instrument were voluntarily affixed
by them for the purposes stated therein, and who declared to me that they have executed the
instrument as their free and voluntary act and deed and that they have the authority to sign on
behalf of their respective principals.

This instrument consisting of seven pages (7) pages, including the page wherein this
acknowledgment is written, refers to a Design-Build Services Agreement (Project
Administration), with its Annexes, and has been signed by the parties and their instrumental
witnesses on each and every page hereof.

Witness my hand and seal this day of _________________ 2019.

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2019.

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