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Subcontractor Agreement Template

The document outlines an agreement between a contractor and subcontractor where the subcontractor will perform specific work. It details the scope of work, payment terms including an initial downpayment and retention amounts, penalties for failure to complete work on time, quality guarantees, breach terms, indemnification, severability, and venue.

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Lotis Oliva
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0% found this document useful (0 votes)
31 views4 pages

Subcontractor Agreement Template

The document outlines an agreement between a contractor and subcontractor where the subcontractor will perform specific work. It details the scope of work, payment terms including an initial downpayment and retention amounts, penalties for failure to complete work on time, quality guarantees, breach terms, indemnification, severability, and venue.

Uploaded by

Lotis Oliva
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SUBCONTRACTOR AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Subcontractor Agreement (“Agreement”) is entered into this ___ day of


_________ 2024, at __________ City, by and between:

ASCENT DEVELOPMENT CONSTRUCTION INC., a corporation


duly organized and existing under and by virtue of the laws of the
Republic of the Philippines, with CONTRACTOR place of business at
Unit 1006, 10th Floor One Corporate Centre, Meralco Ave., Cor. Julia
Vargas, Ortigas Center, Pasig City, Philippines, and represented by
its President, Mr. Min Hwan Choi, hereinafter referred to as
“CONTRACTOR”
AND

_______________________, a corporation duly organized and existing


under and by virtue of the laws of the Republic of the Philippines, with
principal place of business at _______________________, represented
by _____________ hereinafter referred to as the “SUBCONTRACTOR”

WITNESSETH, That;

WHEREAS, the SUBCONTRACTOR has represented and warranted


itself as having the necessary qualifications, professional competence and
expertise to provide services that are needed in the specific project of the
CONTRACTOR;

NOW THEREFORE, for and in consideration of the foregoing


premises, the parties hereby agree as follows:

1. SCOPE OF WORK – The SUBCONTRACTOR shall perform the following in


conformance with the specifications, terms and conditions of the
CONTRACTOR:

a) The SUBCONTRACTOR shall supply and install the Materials


according to BOQ (Annex A).
b) The SUBCONTRACTOR shall execute and complete the
contracted Subcontract Works and remedy any defects strictly in
accordance with the Subcontract documents and Contractor’s
Instructions issued from time to time in relation to the Subcontract
Works.
c) Unless otherwise provided in the Subcontract, the
SUBCONTRACTOR shall provide all personnel, labor,
equipment, documents, and all other things, whether of a
temporary or permanent nature, required in and for the execution
of the project, completion and remedying of any defects. The
SUBCONTRACTOR recognizes the position of trust and
confidence reposed on it by the CONTRACTOR and undertakes
to furnish its best skill and judgment and to coordinate and
cooperate with the CONTRACTOR in furthering efficient business
administration and supervision over the performance of the
Subcontract Works and ensuring the execution of the Subcontract
Works in the most expeditious and economical manner consistent
with the interest of the Contractor. In all instances, the
SUBCONTRACTOR shall carry out the execution of the
Subcontract Works.
2. DOWNPAYMENT, SCHEDULE OF PAYMENT AND RETENTION - The
CONTRACTOR agrees to pay the SUBCONTRACTOR the total amount of
_______________________ (“AGREEMENT PRICE”) for the list of services
described in Section 1. The CONTRACTOR shall pay the SUBCONTRACTOR
for the entire performance of work in the following manner:

20% of the total AGREEMENT PRICE or the amount of


_________________.

60% of the AGREEMENT PRICE or the amount of


__________________, will be given upon complete installation or upon
100% work accomplishment.

20% of the AGREEMENT PRICE or the amount of


__________________, will be given after two weeks installation should
there be no defect.

3. FAILURE TO COMPLETE WORK – In the event of failure on the part of the


SUBCONTRACTOR to provide or complete the services outlined in Section 1
on the specified deadline (inclusive of any extension that may be granted by
the CONTRACTOR), the SUBCONTRACTOR shall pay the CONTRACTOR
liquidated damages equivalent to One-Tenth of One Percent (0.1%) of the
total AGREEMENT PRICE, including change orders, for every calendar day
of delay, including Sundays and Holidays. Any sum which may be payable to
the CONTRACTOR may be deducted from the amounts retained under the
Terms of Payment or those retained by the CONTRACTOR.

4. QUALITY ASSURANCE AND SUBCONTRACTOR’S GUARANTEE,


WARRANTIES – The SUBCONTRACTOR guarantees the performance and
quality of the works to the full satisfaction of the CONTRACTOR and
conformity with the plans, specifications and supply and installation
standards. In case of any defect/s in workmanship or materials which may
become apparent in the course of the supply and installation, the
SUBCONTRACTOR, upon request of the CONTRACTOR and/or its
representatives shall at its own expense, immediately replace or restore such
portion of the work done and/or materials installed that, in the
CONTRACTOR’s reasonable opinion, are unsound or defective, or not in
accordance with the plans and specifications.

The SUBCONTRACTOR warrants and guarantees that all the materials to be


supplied by it under this AGREEMENT are new, free from defects and shall
fully comply in every respect with the specifications, approved samples and
other requirements by the CONTRACTOR. The SUBCONTRACTOR shall
make no substitution unless written approval is first obtained from the
CONTRACTOR.

All provisions with respect to warranties contained in this Agreement are


cumulative and not alternative, and are in addition to such warranties as may
be provided by law or contained in the other provisions of this AGREEMENT.

5. BREACH OR DEFAULT– In case this AGREEMENT is terminated or


canceled, whether judicially or extra-judicially, by reason of any default or
breach committed by the SUBCONTRACTOR, the SUBCONTRACTOR shall
be fully liable to the CONTRACTOR for the damages that are sustained by
the latter, actual or consequential, resulting from such default or termination.

6. INDEMNIFICATION AND DISCLAIMER OF LIABILITY –


Notwithstanding the other provisions of this AGREEMENT, the
SUBCONTRACTOR shall indemnify, defend and hold harmless the
CONTRACTOR against all claims, liabilities, damages, losses or other
obligations which may arise from this AGREEMENT. The
SUBCONTRACTOR shall hold the CONTRACTOR free and harmless against
any claim for losses, damages, or injuries of whatever kind or nature that may
be filed or claimed against the CONTRACTOR by any third person, firm or
entity arising out of, or in connection with the works undertaken by the
SUBCONTRACTOR under this Agreement.

7. SEVERABILITY – The invalidity or unenforceability of any provision of this


AGREEMENT shall not affect or impair the other provisions which otherwise
can be given full force and effect.

8. VENUE – The venue of all actions, arising from or in connection with this
AGREEMENT shall be proper courts of Pasig City, all other venues being
expressly waived.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be


signed and executed in the __________, Philippines on _________ 2024.

ASCENT DEVELOPMENT _______________________


CONSTRUCTION INC. represented by:
represented by:
Min Hwan Choi (SUBCONTRACTOR)
(CONTRACTOR)

SIGNED IN THE PRESENCE OF:

______________________________ ______________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)


) S.S.

BEFORE ME, a notary public in and for the place and on the date above written
personally appeared the following:

NAME COMPETENT EVIDENCE DATE/PLACE


OF IDENTITY ISSUED
Min Hwan Choi

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

WITNESS MY HAND and seal on the date and at the place first above written.

Doc. No. ________


Page No. ________
Book No. ________
Series of 2024.

Common questions

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The Subcontractor must guarantee that work performance and quality meet the Contractor's standards. They are required to replace or restore any defective work or materials at their own expense if such defects are discovered . All materials supplied must be new and free from defects, adhering fully to specifications and approved samples .

If the Subcontractor fails to complete the work on time, liquidated damages of 0.1% of the total agreement price are imposed for each day of delay, including Sundays and holidays . These penalties may be deducted from payments retained by the Contractor .

The venue clause specifies that any legal actions arising from the Agreement must be resolved in the proper courts of Pasig City, Philippines, while explicitly waiving other potential venues .

The Subcontractor's representation of possessing necessary qualifications and expertise forms the foundation for their selection and the trust placed in them by the Contractor . This foundation is crucial for ensuring adherence to specifications and effectively performing the contracted work .

The payment milestones for the Subcontractor are: 20% of the total agreement price will be paid as a down payment, 60% upon complete installation or 100% work accomplishment, and the final 20% after two weeks of installation if no defects are present .

The Agreement mandates that the Subcontractor must promptly replace or restore any defective work or materials at their own cost when such defects are discovered during the project . All supplied materials must conform to specifications without substitutions unless approved in writing by the Contractor .

The Subcontractor is required to indemnify and hold the Contractor harmless against all claims, liabilities, damages, or losses arising from the works they undertake . This includes protecting the Contractor from third-party claims related to the Subcontractor's work .

The Agreement includes a severability clause that maintains the enforceability of remaining provisions even if one or more provisions are deemed invalid or unenforceable . This ensures that the rest of the agreement remains in effect .

In case of a breach or default, the Agreement states that the Subcontractor is liable for all damages sustained by the Contractor, whether actual or consequential, resulting from the default or termination of the agreement .

The 0.1% daily penalty for delays incentivizes timely completion by the Subcontractor, impacting project cash flow as any penalties can reduce the Subcontractor's profit margin and potentially create cash flow challenges . For the Contractor, this clause provides financial compensation for delays, potentially offsetting the inconvenience of a delayed project timeline .

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