Republic of the Philippines

Province of Cebu
Municipality of Moalboal S.S.

CONSTRUCTION CONTRACT

KNOW ALL BY THESE PRESENTS:

This AGREEMENT OF CONSTRUCTION is executed on the 20th day of October, 2023. and by
between:

Lex Vincent V. Cadampog, of legal age, single, Filipino, and a resident of Proper 1, Barangay
Tomonoy, Moalboal, Cebu 6032 hereinafter referred as the OWNER.

-AND-

MEGS Construction and Development Corporation, represented by Vivian G. Incipido, of

legal age, single, Filipino, and a resident of Paramayon, Barangay Poblacion East, Moalboal,
Cebu 6032 hereinafter referred as the CONTRACTOR.

WITNESSETH;

WHEREAS, The OWNER desires to construct his residence at Basdako , Barangay Saavedra,
Moalboal, Cebu.

WHEREAS, The CONTRACTOR hereby warrants to qualify to construct the house specified
herein.

NOW THEREFORE, in consideration of the mutual promises of the contracting parties herein
contained, the OWNER and CONTRACTOR agree as follows to meet and satisfy the all the
general terms and conditions of this agreement as follows:

I. DESCRIPTION OF THE WORK

A. The Contractor agrees hereby to furnish all the labor, materials, and equipments
necessary to the construction and faithful completion of the work within the time
period of two hundred forty-three (243) days, in strict accordance with the
detailed prescription of the work herein referred as "work write-up" and subject to
conformance of all the provisions, stipulations, covenants, and terms and
conditions of contained in this contract. Representations and rights of the
contracting parties are embodied in this contract, prior agreements may be oral
or written not included in this contract shall not be binding to the benefit of any of
the parties.
B. The Contracts includes the following:
 1. Work write-up
2. Contractors proposal and expenses
3. Workings drawing

II. COMPENSATION AND METHOD OF PAYMENT

A. Upon the preparation of the contract, the OWNER agrees that the CONTRACTOR will
bear the expenses including the sum of labor, materials, supplies done and furnished at
the price rates set forth by the Contractor, the said sum amounted Seven Million Five
Hundred Thousand Pesos (₱7,500,000.00). Contractor agrees to faithfully comply
upon the duties imposed upon the Contractor by this contract and the terms and
proposals are accepted by the owner with full performance of the parties.
B. Advance payments shall be 30% of the total project cost equivalent to Two Million Two
Hundred Fifty Thousand Pesos (₱2,250,000.00).
C. FIRST AND PARTIAL BILLING. The First and Partial Billing shall be equivalent to
Thirty Percent (30%) from the total costs of this project or equivalent to Two Million
Two Hundred Fifty Thousand Pesos (₱2,250,000.00). The payment shall be made
upon the Thirty Percent (30%) project completion.
D. SECOND AND PARTIAL BILLING. The Second and Partial Billing shall be equivalent to
Twenty Five (25%) from the total costs of this project or equivalent to One Million One
Hundred Eighty-Five Thousand Pesos (₱1,185,000.00). The payment shall be made
upon the Fifty five Percent (55%) project completion.
E. THIRD AND PARTIAL BILLING. The Third and Partial Billing shall be equivalent to Ten
Percent (10%) from the total costs of this project or equivalent to Seven Hundred
FiftyThousand Pesos (₱750,000.00). The payment shall be made upon the Eighty
Five (85%) project completion.
F. FOURTH AND FINAL BILLING. The Fourth and Final Billing shall be equivalent to Five
Percent (5%) from the total costs of this project or equivalent to Three Hundred
Seventy-Five Thousand Pesos (₱375,000.00). The payment shall be made upon the
One Hundred Percent (100%) project completion.
III. GENERAL CONDITIONS
A. PROPOSAL. This contract includes the Contractor's proposal and it must be
authenticated, signed and dated by the Contractor, and the Owner by signing this
Contract, accepts the Contractor's proposal that becomes part of the contract.
B. Cost of the project is the lump sum amount of a 2-storey residential building. Bills of
Materials shall not be actual and shall not be the basis of this contract.
C. All materials that shall be used in this project must be in the account of the Contractor.
D. Excess materials, tools, and equipment and other temporary structures are properties of
the contractor.
E. Cost of labor and equipment will change with respect to the scope of its work. Cost of
additional labor by employing the material unit costs indicated in the Bill of Materials plus
cover the labor costs and the costs of overhead, tax, contingencies and contractors fee.
F. First day of construction shall be made after seven (7) days after the partial payment.
G. Project time of extension shall be granted to the contractor due to some unworkable
days caused by fortuitous events or force majeure that is beyond the control of the
contractor.
H. Preparation of permits and licenses like drawings, estimations, specifications, structural
analysis and other technical documents shall be made by the Contractor, while the
government permits like barangay clearance, fire and safety permits, etc. shall be made
by the Owner.
I. Utilities like water and power supply during construction shall be on the account of the
Contractor.
J. The Contractor must take a reasonable effort to protect and take care of the property
and possessions of the owner, any repairs and damages shall bear the responsibility
and expenses on the account of the Contractor without any cost of the Owner.
K. The Contractor may call for a temporary work stoppage if the payments are settled
seven days from the date of submission of request or billing. A day after receiving the
payment from the owner shall resume the construction
L. The Contractor must ensure discipline and order among all employees under the
contractor and subcontractor, they must show competence and capability of doing the
work that is assigned to them, in order to achieve this goal the contractor must supervise
his/her workers for its coordination and full compliance.
M. The change order may take changes in the time allowed for completion of work changes
to the work write-up, it may be amended anytime provided the change makes up the
reference of the contract and it is executed in writing. The work shall not start unless
they receive a notification that the change is approved by the owner.
N. The Owner performs his inspection by himself or by his representative, the Contractor
will notify and arrange the work for an inspection by the owner or his representative. If
the work that has been performed satisfies the owner then the owner will make an
acceptance certificate to the contractor. If their work disatisfies the owner, the owner will
give a list to the contractor or where and what parts need improvement or parts then
they must indicate an action for that until it is completed. The final payment is given after
the reinspection of the owner.
O. In order to conform to the law, the contractor must work in a good and well-mannered
manner, even if it is not stated in the drawings and work write up.
P. After the duty on a daily routine there must be a clean up session where the property is
free from all the materials, tools, and equipment that may cause harm if it is unnoticed,
All tools must be kept and stored in one place neatly. Glasses, debris, trash and other
residues must be cleaned before the payout to the contractor.
Q. The Contractor must guarantee the Owner that the supplied materials used in the
construction are high quality, durable, and free from defects. Works that do not conform
to the standards and specifications are considered defective.
R. In order for the improvements of construction the owner has other operations related to
the problem and award separate contracts in connection with the other portions of the
project. The Contractor must participate in these contracts to coordinate with the other
contractors.
 S. Liquidated Damages shall be a liability to the contractor and must be notified to the
owner in a written instrument.
T. Owners must have unpaid debts to the contractors, unresolved disputes, termination of
the contract that stated that their obligation is fully accomplished and in accordance with
their agreement before occupying the building or the structure.
U. Disputes arising from the contract like meaning of the work, quality of material or
workmanship, value, payment, and other terms and conditions in the contract shall be
resolved through arbitration or mediation as a remedy.
V. The Contractor shall be held liable for damages from an act or omission of the
Contractor and shall indemnify the injured party.
IV. OWNERS RESPONSIBILITY
A. Owner shall give permission to the contractor for building some temporary structures in
the property like barracks, headquarters, and storage rooms for the convenience of the
workers and a necessity for the completion of the obligation.
B. The Owner may employ someone as his representative to check the site full-time that
will assure him about the performance of the company.
V. TERMINATION FOR A CAUSE
A. The owner may have the right to terminate the contract without needing a process or
action from law, it may be writing or an email if the contractor is insolvent or in
bankruptcy, fail to start satisfactory progress, fail to comply important documents,
perform unsatisfactory progress that had already been rejected by the owner, and fail to
do his/her obligation.
VI. MISCELLANEOUS
A. The Owner and the Contractor bind themselves with the utmost respect to the terms
and conditions of this agreement of construction and shall be complied with utmost good
faith and in accordance with the laws, rules, and regulations.
B. This construction agreement shall be binding upon all heir, assigns, executors and
administrators of the Owner and Contractor.

IN WITNESS WHEREOF, the parties have hereunto set their hands this 21st of October 2023 at
the Municipality of Moalboal, Province of Cebu, Philippines.

SIGNATURE OF CONTRACTOR SIGNATURE OF OWNER

SIGNED IN THE PRESENCE OF:

MEGS CONSTRUCTION AND DEVELOPMENT CORPORATION (represented by: ENGR.

VIVIAN G. INCIPIDO LEX VINCENT V. CADAMPOG

REPUBLIC OF THE PHILIPPINES

MUNICIPALITY OF MOALBOAL S.S.

ACKNOWLEDGEMENT

BEFORE ME, personally appeared:

Name CTC Number Date/Place Issued

LEX VINCENT V. CADAMPOG 10000000 OCTOBER 24, 2023 /MOALBOAL

VIVIAN G. INCIPIDO 10000000 NOVEMBER 07, 2023/MOALBOAL

Known to me and to me known to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of _6___ page/s, including the page on which this acknowledgement
is written, has been signed on each and every page thereof by the concerned parties and their
witnesses, and sealed with my notarial seal.

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

Notary Public

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