C O N T R A C T
PROJECT
:
LOCATION
:
OWNER/DEVELOPER
CONSTRUCTION MANAGER
O F
S E R V I C E S
:
:
This AGREEMENT, made and entered into this ____________day of _______________
Two Thousand and _____________________ by and between :
___________________________, a corporation duly organized and existing under and by
virtue of the laws of the Republic of the Philippines, with principal office and place of
business at __________________________________________________, represented
herein by ____________________________, hereinafter referred to as the OWNER.
- and ___________________________________, an architectural office duly organized and
existing under and by virtue of the laws of the Republic of the Philippines, with principal
office and place of business at
_______________________________________,
represented in this act by _______________________________, hereinafter referred to as
the CONSTRUCTION MANAGER.
WHEREAS, it is the intention of the Owner and in the best interest of the project to secure
the professional services of the Architect for the proposed: _________________,
hereinafter referred to as the PROJECT.
WHEREAS, the realm of the professional services of the Architect shall be based on the
document published by the United Architects of the Philippines (UAP) Architect’s
National Code : Standards of Professional Practice.
NOW, THEREFORE, the OWNER and the CONSTRUCTION MANAGER, for and in
consideration of the foregoing premises of the covenants, agreement and stipulation set
forth, do hereby agree as follows:
ARTICLE 1 GENERAL STATEMENT
The OWNER finds it practical and expedient to engaged the ARCHITECT
as Construction Manager on his project.
ARTICLE 2 GENERAL SCOPE OF SERVICES
The general scope of services to be done by the CONSTRUCTION
MANAGER, as herein authorized by the OWNER shall refer to
CONSTRUCTION MANAGEMENT SERVICES for the said project,
guided by the following:
The Construction Manager’s function is to coordinate, supervise the method
quality of the construction and monitor the cost and time involve in the
project.
The Construction Manager‘s role is to plan, program or schedule
construction activities on various construction activities, and approves
methods and systems of construction and to monitor the overall cost control
of the project.
The Construction Manager provides the additional link and coordinated
efforts between the members of the team, and could eliminate many of the
conflicts and resultant expensive change orders due to misunderstanding to
the contractor and owner, which are prevalent in the traditional construction
procedure or methods.
ARTICLE 3 DETAILED SCOPE OF SERVICES
3.1.
PRE-CONSTRUCTION PHASE
As early as possible the Construction Manager shall advise on practical
consequences of construction design options of either the Architect and the
Design Engineers. Review architectural and engineering drawings and
specifications, for the purpose of advising on appropriate alternates,
materials construction systems and the possible design cost implications of
local availability of materials and labor.
3.1.a
Prepare periodic cost evaluations and estimates related to both the overall
budget and the preliminary allocations of budget to the various systems. As
Construction Manager, he shall advise the Architect / Engineer and the
Owner whenever the refined estimates shows the probability of exceeding
the budget allocation, or whenever the construction time required for a
given system is likely to prolong or delay completion schedules.
3.1.b
With the cooperation of the Architect / Engineer, evaluate the bidder’s
overall PERT/CPM chart as schedule of works based on the time frame.
3.1.c
Conduct pre-bid conferences among the Contractors, subcontractors and
manufacturers of systems and subsystems to be sure that all bidders
understand the components of the bidding documents and the management
techniques that will be applied including any computerized
intercommunication, network scheduling and cash control.
3.1.d
Review all bids for compliance with stipulated conditions and make
recommendations for awards and may, with the concurrence of Architect,
Engineers and Owner, enter into actual awarding process.
3.2.
CONSTRUCTION PHASE
In construction phase, the Construction Manager shall coordinate the
implementation of the Project and provide the following services:
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3.2.a
Revise and refine estimates as construction proceeds and, as required, to
incorporate approved changes as they occur. Monitor estimates and changes
so that neither the schedule nor the budget will be exceeded.
3.2.b
Monitor each Contractor’s labor and equipment and require all Contractors
that these labor and equipment are adequate for the Project.
3.2.c
Monitors the safety programs developed and implemented by each
Contractor especially those safety provisions for the over-all job as provided
by the general requirements of the Project. Make sure that Contractors’ are
fully aware of their responsibilities or liabilities for safety and/or property
damage.
As Construction Manager, however, he maintains overall administrative
and direct supervision over security personnel assigned in the Project.
3.2.d
Supervises quality control of work, including but not limited to, testing and
sampling of materials at site, inspection and testing of structural ,
mechanical, electrical, sanitary/ plumbing systems, inspection of
architectural works and finishes, civil works, etc.
3.2.e
Maintain records at the Project Site, like records of all contracts, shop
drawings, samples, purchases, subcontractors, materials and equipment
inventory on Project site, applicable codes and standards, daily time
records, progress reports, change orders, accounting records, records of
payments, field logbook, test results, minutes of meetings and other
correspondences, etc. These records shall be made available to the
Architect-Engineer, and the Owner if and when needed or at the time of the
final payment.
3.2.f
Keep accurate progress reports during all stages of the construction.
3.2.g
Evaluate and process all applications for progress payments.
3.2.h
Advise the Owner to obtain from qualified surveyors such data as certified
records of site conditions, elevations, floor levels, etc., as may be required.
3.2.i
Requires Contractors to maintain current set of records, working drawing
and specifications of the Project.
3.2.j
Set up joint inspections of the whole project at some specified interval prior
to completion, the inspection to be made by the Construction Manager in
company of the Owner, the Architects and Engineers and other interested
parties. This inspections and the final inspection should be followed by
decisions on the part of all concerned as to the most economical and/or
expeditious way of handling a “Punchlist” of incomplete and /or faulty
works and installations.
3.2.k
Review, evaluate and certify payments and acceptance of any and all
completed construction works.
3.2.l
Prepares and submit final report to the Owner.
3.3
ITEMS EXCLUDED
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Excluded in this scope of services are the following: securing building
permits and licenses, liaison with government agencies and public utility
agencies, securing certificate of occupancy, cost of site security,
warehousing and maintenance, cost of advertisements, printing, and
copying, cost of testing materials or completed works, and all other permits
and licenses and government requirements and documents.
ARTICLE 4 LIMITATION OF AUTHORITY
4.1
The Construction Manager shall not provide direct supervisory or direct
instructions on the work of the Contractor that may be construed as relieving
the Contractor of his responsibility as provided for in the Civil Code.
4.2
He shall not impose methods, systems of designs that will substantially
impair the original design concept without prior approval of the Architect
and Design Engineers, if the Owner has already approved such concept.
4.3
He shall not interfere with the Architect’s design if such generates the
necessary environmental and aesthetic quality of the project.
4.4
He shall not make decisions on matters that are the sole responsibility of the
Architect and/or the Design Engineer.
ARTICLE 5 LEGAL RESPONSIBILITY
The Construction Manager has no legal responsibility insofar as the design
and construction is concerned. It is still the Architect and Design Engineers
who are responsible for the design, while the Contractor is solely
responsible for his Construction. It is for this reason that the Construction
Manager is not allowed to interfere in the field of design as this may be
construed as relieving the designers and Contractors of responsibilities as
provided by law
ARTICLE 6 THE OWNER’S RESPONSIBILITIES
6.1
The Owner shall provide full information as to his requirements for the
Project.
6.2
He shall designate ,when necessary, representatives authorized to act in his
behalf. He shall examine documents submitted for his approval and/or
comment and render decisions pertaining thereto promptly, to avoid
unreasonable delay in the progress of the Project.
6.3
He shall pay for structural, chemical, mechanical, soil mechanics or other
tests and reports as may be required for the Project.
6.4
He shall pay for design and consulting services on structural, geodetic,
electrical, mechanical, drainage, and other specialty systems as may be
required for the Project.
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6.5
He shall pay for such legal, auditing, security and insurance services and
taxes as may be required for the Project or by the government.
ARTICLE 7 CONSTRUCTION MANAGER’S FEES AND TERMS OF PAYMENT
That the Owner shall agree to pay the Construction Manager for services
rendered, a fee of TWO PERCENT (2.0%) of the Project Construction Cost,
with other payments and reimbursements hereinafter provided, the said
percentage being hereinafter called the Basic Rate. That terms of payments
shall be as follows :
Upon signing of this agreement, a payment of ten percent (10%) of the
Basic Rate, and the remaining balance shall be paid in monthly payments
according to the progress of the works.
ARTICLE 8 PROJECT CONSTRUCTION COST
The cost of the work or the Project Construction Cost as herein referred to,
means the cost to the Owner of the completed structure or the total site
development costs plus the housing construction cost except the
Construction Manager’s Fees, cost of land, general overhead cost of the
Owner and other non-construction related cost
ARTICLE 9 OTHER PROVISIONS
9.1
Should the OWNER hire separately the services of the Consultant, the fee
of said Consultant shall be on the account of the OWNER and paid directly
by the OWNER. In such a case, the fee of the ARCHITECT for
coordinating the work and relating the work of the Consultant to the design
concept of the ARCHITECT will be 5% of the cost of the work.
9.4
If the work of the Construction Manager is abandoned or suspended, in
whole or in part, the Construction Manager is to be paid by the Owner for
the services rendered corresponding to the fees due at the stage of
suspension or abandonment of the work.
9.5
If portions of the buildings are erected at different periods of time, thus
increasing the Construction Manager’s construction phase period and
burden of services rendered during the construction phase shall be doubled.
A suspension of construction for a period not exceeding six (6) months shall
not be covered by this provision.
9.6
The Construction Manager’s Fee as stipulated in Section 7 “ Minimum
Basic Fee” is net to the Architect. Any tax that the government may impose
on the Architect as a consequence of the services performed for the Project
(exclusive of income tax) shall be paid by the Owner.
CHANGES ORDERED BY THE OWNER shall be done in writing and
given to the Construction Manager for appropriate action.
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ARTICLE 10 ARBITRATION
All questions in dispute under this Agreement shall be submitted in
accordance with the provisions of the applicable laws of the Republic of the
Philippines.
THE PARTIES TO THIS AGREEMENT HEREBY AGREE TO THE FULL
PERFORMANCE OF THE COVENANTS CONTAINED HEREIN AND PRAY FOR
THE GUIDANCE OF THE LORD FOR A SUCCESSFUL COMPLETION OF THE
PROJECT
IN WITNESS WHEREOF, the Parties to this Agreement have on the day and year first
above given, hereunto set their hands at the bottom of this page and on the right-hand
margin of all the other pages of this Agreement.
By :
By :
_____________________
Owner
__________________________
Construction Manager
Signed in the presence of :
______________________
_________________________
Republic of the Philippines
City of _______________
Before me, a Notary Public in and for the City of ___________ personally appeared
Mr. __________ with Residence Certificate no. ____________ on _______, 2000 at
_______________ City and Architect _________________ with Residence Certificate no.
________________ issued at __________ City on ________, 2000, 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 and deed.
In witness whereof, I have hereunto set my hand and affixed my Notarial seal this
_______ day of ________ 2000 in the City of __________, Philippines.
________________________
Notary Public
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