Construction Contract Agreement Sample Philippines

When you are embarking on a construction project, it is critical to have a written contract in place with the contractor. A construction contract agreement is a legally binding document that outlines the terms and conditions of the construction project, including the scope of work, timelines, payment methods, and dispute resolution methods.

In the Philippines, construction contract agreement samples are widely available, and it is essential to select the right one to protect one`s rights and interests. Here is a comprehensive guide to understanding a construction contract agreement sample in the Philippines.

1. Introduction

The introduction of a construction contract agreement typically includes the names of the contracting parties, the project location, and the project term. It should also state the purpose of the contract, which is to ensure the successful completion of the construction project.

2. Scope of work

This section outlines the details of the construction project, including the scope of work, the materials, and any necessary permits. The scope of work should be detailed and comprehensive, outlining the complete work plan, including any additional work requested by the owner.

3. Project timeline

A construction contract agreement must have a project timeline, indicating the start and end dates of the project and any significant milestones. It is essential to track the progress of the project to ensure timely completion. The timeline helps avoid any delay in project completion, which can lead to cost-overruns and project failures.

4. Payment

Payment is an essential aspect of any construction contract agreement. The contract must state the payment terms and the total project cost. It should also include the payment schedule, outlining the amount of each payment and when they are due. It is advisable to have a payment retention clause to ensure that the contractor is liable to complete the project fully.

5. Changes and modifications

Construction projects are dynamic and can change as the work progresses. This section outlines how changes and modifications to the project will be handled, including any additional costs and necessary approvals. The section should also outline the necessary guidelines that contractors must follow when implementing changes.

6. Termination and cancellation

The section outlines how the contract can be terminated or canceled if necessary. It also details the penalties for breach of contract and the conditions that will necessitate the contract termination.

7. Dispute resolution

In any construction project, disputes arise. This section outlines the dispute resolution method. It is advisable to choose an arbitration method instead of a trial, which can be lengthy, time-consuming, and more expensive.


A construction contract agreement is a critical document that outlines the terms and conditions of a construction project. It is essential to select a good construction contract agreement sample in the Philippines to avoid any disputes, delays, or project failure. It is also advisable to consult with a legal professional to ensure that the contract is legally binding and enforceable.


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