CONSTRUCTION SERVICE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This contract made and executed this day of ___ in the City of ___ by and
between:
The ECUMENICAL INSTITUTE FOR LABOR, EDUCATION AND RESEARCH
(EILER), a non-profit organization duly organized and existing under the laws of the
Philippnies with office address at _____________________ represented by its
Executive Director, ANNA LEAH-ESCRESA COLINA, hereinafter referred to as EILER.
-and__________________________, a corporation duly organized and existing under the
laws of the Philippines, with office at ______________________ represented by its
President _______________________________ hereafter referred to as the
Contractor.

WITNESSETH thatWHEREAS, EILER proposed for the construction of a permanent learning

facility, to be constructed on a land leased by EILER and located at
_____________________________.
WHEREAS, EILER has secured the permission for the construction of the
permanent facility from the lands LESSOR (ANNEX A)
WHEREAS, the Contractor has presented and warranted itself as capable,
competent and duly registered to construct and to complete the aforementioned facility
space in accordance with the plans and specifications mentioned below in Article 1
hereof;
WHEREAS, on the basis of the foregoing representation and warranty of the
Contractor, EILER has accepted the offer of the Contractor to build the abovementioned facility.
NOW, THEREFORE, for and in consideration of the foregoing premises and
covenants and undertakings hereinafter set forth, the parties hereto agree as follows:
ARTICLE 1. CONTRACT DOCUMENTS

This Construction Agreement, together with the following documents prepared by

____________ in his capacity as Architect, are made integral parts by reference
constitute the entire contract.
Architectural Plans
Electrical Plans
Plumbing Plans
The design may be subject to change but without compromising the strength of the
structure. Such change is the prerogative of EILER, and will be binding so long as the
Contractor affixes his signature on the building/house plan.
ARTICLE 2. SCOPE OF WORK
The contractor shall implement the proposed permanent facility construction located at
_____________________________.
The contractor shall furnish all labor, tools and equipment therein and perform all the
works required:
ITEMS OF WORK
(Refer/See attached Cost Estimate)
ARTICLE 3. EXCLUSIONS
The following items are not included in the scope of works to be done by the Contractor.
a. Permits & Licenses (Building Permit, Occupancy Permits, & other
incidental permits)
b. Owner supplied materials such as: plywood, lumber, cement
c. Other items and/or materials not mentioned in the Itemized Cost
Estimates.
ARTICLE 4. CONTRACT AMOUNT
EILER shall pay the Contractor for the entire performance of the work, herein, in
the
manner
provided
for
below
in
Article
5,
the
amount
of
P_____________________. The Contractor hereto guarantees for the construction
of the facility located at _____________.
EILER shall not incur any expenses beyond the said amount except for addition of
extra work that may be required and authorized in writing by EILER.
ARTICLE 5. TERMS OF PAYMENT

EILER agrees that for and in consideration of the faithful performance by the
Contractor of this contract, he shall pay the contractor under the following payment
scheme:
PERIOD

AMOUNT

PERCENTAGE

REMARKS

ARTICLE 6. DEFECTIVE WORK AND MATERIALS.

Defective work shall be made good and unsuitable materials shall be rejected
notwithstanding that such work and material have been overlooked by EILER and the
Contractor and accepted or estimated for payment. If the work or any part thereof shall
be found to be in conformity with the agreed specifications, the Contractor shall
forthwith remove such materials from the vicinity of the project and any improper
installation by the contractor, his agents or employees shall be made good and replaced
in conformity to Article 1723 of the Civil Code of the Philippines which is hereby
incorporated as part of this contract.
All workmanship are guaranteed for a period of (6) months upon turnover.
ARTICLE 7. THIRD PARTY LIABILITY
EILER shall be held free and harmless from any liability arising from the claims of third
parties due to agreed construction such as but not limited to wages, overtime, pay
compensation for injury or death of laborer or third parties, SSS premiums, etc. All of
which shall be for the account of the Contractor.
ARTICLE 8. CHANGES AND ADDITIONS
In the event additional or revised work not shown in the contract documents is to be
required by EILER, such work shall be requested and authorized only through written
change orders. All change orders, including deletions/omissions shall state the agreed
cost of the additional, revised, deleted/omitted work, resulting in either upward or
downward adjustment of the contract price, as mutually agreed upon by the contractor
and EILER taking into consideration any time extension that the additional or revised
work would entail.
All additional costs shall be based on prevailing the prevailing market price at the time
the request was made, plus labor costs and ___________ to cover overhead costs.
ARTICLE 9. TIME OF COMPLETION

The Contractor has agreed that the construction fo the project will be completed within
_________ working days excluding Sundays and Holidays from the date of receipt of
the downpayment or issuance of Building Permit whichever comes earlier.
ARTICLE 10. SAFEGUARD
The Contractor shall provide safeguards and other facilities for the protection of EILER
personnel and the general public. The Contractor shall be responsible and hold EILER
harmless from all losses, expenses, judgments, court costs, attorneys fees, demands,
payments, suits actions, recovery decrees, execution , and any other claim of whatever
nature and description brought and/or recovered against the Contractor through the
fault and negligence of its builders, agents, laborers and employees
The Contractor shall be responsible for, and shall bear all costs and expenses caused
by possible losses and damages to the property due to fire, and injuries (including death
resulting therefrom) that may be accidentally sustained by any individual due to the
same, by virtue of the fault and negligence of the Contractor or its employees, or in
connection with the execution of the work covered by this contract
ARTICLE 11. ESCALATION CLAUSE
It is agreed that the Contract Price is already fixed and is not subject to escalation of
increase in taxes, licenses, permits, materials, inflation and devaluation of the Philippine
Currency. However in the event that there is any government mandated increase in the
minimum wage of workers, adjustment shall be made on the contract price for the
remaining scope of work.

IN WITNESS WHEREOF, the parties hereto have executed this Contract on the day
and year above-written.

ECUMENICAL INSTITUTE FOR LABOR,

EDUCATION AND RESEARCH, INC.

_____________________________
ANNA LEAH ESCRESA-COLINA
Executive Director

CONTRACTOR

______________________

Witnessed by:
___________________________

______________________

ACKNOWLEDGEMENT

Republic of the Philippines)

______________________) S.S
BEFORE ME, personally appeared:

Name

CTC/ID Number

Date/Place Issued

(Name)

March __, 20__ / _____ City

(Name)

March __, 20__ / _____ City

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 ____ 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 and sealed with my notarial seal.

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

Notary Public
Doc. No.______;
Page No. ______;
Book No.______;
Series of 20___.