Construction Contract Agreement

BE IT KNOWN BY ALL MEN;

That this Construction Contract Agreement has been entered on August 08, 2013
between The Sulu Electric Cooperative with address at Suleco Compound, Bus-bus
St., Jolo, Sulu represented by Ms. Peraida T. Jalani, General Manager hereafter
referred as Owner and Arch. Murad B. Tuttuh, Principal Architect with address at
MBTuttuh Architects+Partners 2nd Fl., Maharadja Square, Timbayan St., Jolo, Sulu
hereafter referred to as Contractor .

The Owner and the Contractor agree to the following terms:

1.0

The Project and Site

1.1That the Contractor agrees to provide and supply all labor and equipment required to
complete the construction of the building as described in this construction contract;
1.2
That the Contractor agrees to provide all materials required to construct the Sulu
Electric Cooperative Board Conference Hall as per approved plans and specifications.
The Project is to be located at Suleco Compound, Bus-bus St., Jolo, Sulu (see Site
Development Plan);
1.3
That the Contractor agrees to provide full-time Site Engineer and other relevant
construction personnel to assure quality of the construction;
1.4
The Owner assures that the property where the building is to be constructed is owned
by SULECO and that it is free from liens or encumbrances on the property.

2.0 The Contract Documents

2.1
As per this contract, the Contractor agrees to build the aforementioned structure
(project) according to the approved plans and specifications as indexed as Annex A;
2.2
That the Contractor will not be required to undertake additional work outside of this
contract including but not limited to sewer systems, landscaping, patios, steps, driveways,
walkways or grading unless otherwise stipulated in the construction plans or otherwise
classified as an addendum to be covered by another construction contract.

3.0 Contract Amount and Terms of Payment

3.1
That the Owner agrees to pay the Contractor the amount of Php 1,550,000.00 (One
Million Five Hundred Fifty Thousand Pesos) as the contract amount for the completion of the
construction as set out in the contract. The amount is inclusive of VAT and contingencies,
mark-ups and contractors profit among others;
3.2
That the Owner agrees to pay the Contractor the amount equivalent to (30%) Thirty
percent (Php 465,000.00) of the Contract Price (Php 1,550,000.00) within (5) Five days after
the signing of this Construction Contract Agreement;
3.3
That the Contractor may submit a written request for payment anytime as deemed
necessary as determined by the Owner. Progress billing scheme shall be the payment mode
set forth by the Contractor and Owner;
MBTUTTUH ARCHITECTS+PARTNERS

Page 1

3.4
That should an installment amount has not been paid within (15) Fifteen days after the
due date the contractor has the right to stop work and may proceed until after the payment
has been made and the funds have been verified and cleared;
3.5
That should the Owner cease making payment the Contractor has the right to seek
legal action against the Owner only until after all meetings and negotiations has been
exhausted.

4.0

Duration and Turn-over of completed project

4.1
That the Contractor agrees to complete the construction within 120 Calendar days
from date of the receipt of 30% mobilization retainer per item 3.2 under payments;
4.2
That request for extension of turn-over date may be granted should the grounds be
heavy rains due to typhoon and other natural calamities that are classified as Acts of God.

5.0

Site Preparation

5.1
Per this construction contract the Owner shall ensure there is a cleared area for a
bunkhouse as staff house and for storage of construction materials and equipment. Access for
the deliveries of materials and all of the equipment shall be granted;
5.2
The Owner also ensures the construction site is properly zoned and cleared for the
construction and the boundaries of the property identified;
5.3
Permits for construction and other Government clearance and documents shall be paid,
obtained and expedited by the Owner unless otherwise specified in this Contract.

6.0 Utilities
6.1
In order for construction to begin and continue the Owner shall provide waterlines to
the construction site, however bills for volume used for the construction shall be for the
account of the Contractor.
6.2
As per this construction contract the Owner will also ensure electricity access with at
least one 220 amp outlets.
6.3
The Owner agrees to temporarily connect gas, oil, electrical and water to the new
construction prior to connecting permanent lines. The Contractor will add utility facilities for
an extra fee as an addendum to the original contract.

7.0

Completion

7.1
Per item 4.1, the project shall be completed in 120 days. The Owner will not take
possession of the completed construction until all payments relative to this contract
agreement has been made.
7.2
Should the owner occupy the new building site prior to completion of the construction
contract, the Contractor shall assume that the Owner has decided the construction is
complete and satisfactory for occupancy.

8.0

Workmanship Guaranty

MBTUTTUH ARCHITECTS+PARTNERS

Page 2

8.1
The contractor shall guaranty the workmanship (e.g. roof leaks, masonry cracks, paint
chalking or flaking, sanitary and waterlines) from any defects for a period of (240) Two
Hundred Forty days from completion/turnover date. The same however shall be subject to
verification if the said defect/s were caused by faulty installation/fabrication or of excessive
abnormal use.
For the Owner :
Ms. Peraida T. Jalani
General Manager, SULECO

Date___________________

For the Contractor:

Arch. Murad Tuttuh, uap

Date___________________
Principal Architect, MBTuttuh Architects+Partners
Witnesses:

Engr. Roberto B. Escio

Date___________________
TSD Manager
BAC Chairman, Suleco

Arousy B. Tuttuh, BSCE

Project Engr., MBTuttuh Architects+Partners

Date___________________

______________________________________________________________________________________________
NOTARY PUBLIC

MBTUTTUH ARCHITECTS+PARTNERS

Page 3