OWNER-ARCHITECT AGREEMENT

PROJECT : Multi-Level Residence

LOCATION : Las Terrazas Subdivision, Ma-a, Davao City

OWNER : EVELYN V. ROSE

ARCHITECT : RAMON P. TANGLAO

This AGREEMENT, made and entered into this 8th day of December, 2009, by and between:

EVELYN V. ROSE, of legal age, Filipino, married, and with postal address at Las Terrazas
Subdivision, Ma-a, Davao City (hereinafter referred to as “OWNER”);

-and-

RAMON P. TANGLAO, of legal age, Filipino, married and with postal address at Lot 10, Block 8
Kristina Homes, Lubogan, Toril, Davao City, (hereinafter referred to as “ARCHITECT”);

Witnesseth:

Whereas, the OWNER intends to build a multi-level residence at her lot at the Las Terrazas
Subdivision, Ma-a, Davao City, hereinafter called the “PROJECT”;

NOW, THEREFORE, the OWNER and the ARCHITECT, for and in consideration of the foregoing
premises and of the other covenants hereinafter named, agree as follows:

ARTICLE 1. SCOPE OF WORK

That the scope of work to be done by the ARCHITECT, as herein authorized by the
OWNER, for the subject project herein referred to consists of professional services of the
following:

1.01 Site planning of the building or buildings including other concomitant structures, as may
be determined by the OWNER.

1.02 Designing of the Multi-Level Residence at Las Terrazas Subdivision, Davao City.

ARTICLE 2. ARCHITECT’S BASIC SERVICES

The ARCHITECT's services shall be performed as expeditiously as is consistent with

professional skill and care and the orderly progress of the PROJECT and he shall use
diligent, professional efforts to minimize changes, inconsistencies, coordination errors,
and similar problems which may occur during the progress of the PROJECT. The
ARCHITECT shall be fully responsible for the structural soundness of the works.

The ARCHITECT’S Basic Services consists of the following:

2.01 Schematic Design Phase

a. The ARCHITECT shall consult with the OWNER to ascertain the requirements of the
PROJECT and shall confirm such requirements to the OWNER.

b. He shall prepare schematic design studies leading to a recommended solution

together with a general description of the PROJECT for approval by the OWNER.

c. He shall submit to the OWNER a Statement of Probable Project Construction Cost

based on the current cost parameters.
2.02 Design Development Phase (Preliminary Studies)

a. The ARCHITECT shall prepare from the approved Schematic Design Studies, the
Design Development Documents consisting of plans, elevations, and other drawings,
and outline specifications, to fix and illustrate the size and character of the entire
PROJECT in its essentials as to kinds of materials, type of structure, mechanical,
electrical and sanitary systems and such other work as may be required.

b. He shall submit to the OWNER a further statement of Probable Project Construction

Cost.

c. ARCHITECT hereby acknowledges that the OWNER has entered into an agreement
with C.C. Nicolas Pool and Spa Builder (“Contractor”) for the latter to undertake the
construction work of the PROJECT. ARCHITECT shall prepare a comprehensive
program of work in consultation with the contractors, and arrange to have the work
completed in an expeditious manner and in accordance with the program drawn up.

2.03 Contract Document Phase

a. The ARCHITECT shall prepare from the approved Design Development Documents,
the Construction Drawings and Specifications setting forth in detail the work required
for the architectural, structural, electrical, sanitary, mechanical, service-connected
equipment, and site work.

b. He shall prepare specifications describing type and quality of materials, finish, and
manner of construction and the general conditions under which the project is to be
constructed.

c. He shall furnish not more than five (5) complete sets of contract drawings,
specifications and general conditions purposed of bidding.

d. He shall keep the OWNER informed of any adjustments to previous Statements of

Probable Project Construction Cost indicated by changes in scope, requirements or
market conditions.

e. He shall assist the OWNER in filling in the requirement documents to secure approval
of governmental authorities having jurisdiction over the design of the PROJECT.

2.04 Construction Phase

a. To the extent provided by the contract between the OWNER and the Contractor, he
shall make decisions on all claims of the OWNER and the Contractor and on all other
matters relating to the execution and progress of the work or the interpretation of
the Contract Documents. He shall check and approve samples, schedules, shop
drawings and other submissions only for conformance with the information given by
the Contract Documents, prepare change orders and assemble written guarantees
required of the Contractors for submission to the OWNER.

b. He will make periodic visits to the site to familiarize himself generally with the
progress and quality of the work and to determine in general if the work is
proceeding in accordance with the Contract Documents. He will not be required to
make exhaustive or continuous on-site inspections to check the quality or quantity of
the work and he will not be responsible for the Contractor’s failure to carry out the
construction work in accordance with the Contract Documents. During such visits and
on the basis of his observations while at the site, he will keep the OWNER informed
of the progress of the work, will endeavor to guard the OWNER against defects and
deficiencies in the work as failing to conform to the Contract Documents.

c. Based on his observations and the Contractor’s Applications for Payment, he will
determine the amount owing to the Contractor and will issue Certificates for Payment
in such amounts. These Certificates will constitute a representation to the OWNER,
based on such observations and the date comprising the Application for Payment,
that the work has progressed to the point indicated. By issuing a Certificate for
Payment, the ARCHITECT will also represent to the OWNER that, to the best of his
knowledge, information, and belief based on what his observations have revealed,
 the quality of the work is in accordance with the Contract Documents. He will
conduct inspections to determine the dates of substantial and final completion and
issue a final Certificate of Payment.

d. If more extensive representation and inspection at the site is required, a separate

full-time inspection or supervisors shall be hired by the OWNER. The conditions
under which said inspectors or supervisors shall be selected, employed and directed,
shall be agreed to by the OWNER and the ARCHITECT and set forth as an exhibit to
this AGREEMENT.

ARTICLE 3. ARCHITECT’S FEE AND MANNER OF PAYMENT

3.01 That the OWNER agrees to pay the ARCHITECT for professional services, a fee of TWO
HUNDRED THOUSAND PESOS (P200,000.00), with Other Payments and Reimbursements
as hereinafter provided, the said sum being hereinafter called the Basic Rate.

3.02 That payment to the ARCHITECT on account of his fee shall be made by the OWNER as
follows:

a. ONE HUNDRED THOUSAND PESOS (P100,000.00) or fifty percent (50%) of the Basic
Rate upon the signing of this AGREEMENT.

b. The remaining, ONE HUNDRED THOUSAND PESOS (P100,000.00) upon completion

of the design and commencement of construction.

3.03 The Other Payments and Reimbursements referred to in 3.01 shall be payable only when
duly supported by the necessary receipts or vouchers and shall be limited only to the
following:

a. Expense of transportation and living expenses in connection with out-of-town travel

authorized by the OWNER;

b. Long-distance communications;

c. Fees paid for securing approval of authorities having jurisdiction over the PROJECT;

d. Photography, reproductions and final CAD plots;

e. Postage and handling of documents;

f. Expense of overtime work requiring higher than regular rates, if authorized by the
OWNER;

g. Rendering models requested by the OWNER; and

h. Expense of additional coverage or limits, including professional liability insurance,

requested by the OWNER in excess of that normally carried by the ARCHITECT or the
ARCHITECT’s consultants.

3.04 The OWNER shall have the right to access, audit and make copies of all the ARCHITECT’s
PROJECT records and documents, including copies in electronic format. For this purpose,
the ARCHITECT shall be required to preserve all documents relating to this AGREEMENT
for a period of three (3) years after final payment.

ARTICLE 4. THE OWNER’S RESPONSIBILITIES

4.01 The OWNER shall provide full information as to his requirements for the PROJECT.

4.02 He shall designate, when necessary, representatives authorized to act in his behalf. He
shall examine documents submitted by the ARCHITECT and render decisions pertaining
thereto promptly, to avoid unreasonable delay in the progress of the ARTCHITECT’s
work. He shall observe the procedure of issuing order to contractors only through the
ARCHITECT.
 4.03 He shall furnish or direct the ARCHITECT to obtain at the OWNER’s expense, a certified
survey of the site, giving, as required, grades and lines of streets, alleys, pavements, and
adjoining property; right of way, restriction, boundaries, and contours of the building
site; locations, dimensions and compete data pertaining to existing buildings, other
improvements and trees, public and private and test borings and pits necessary for
determining sub-soil conditions.

4.04 He shall pay structural, chemical, mechanical, soil mechanics or other tests and reports
as may be required for the PROJECT.

4.05 He shall pay for design and consultancy services on acoustic, communication, electronic
and other specialty systems as may be required by the PROJECT.

4.06 He shall pay for such legal auditing and insurance counseling services and taxes as may
be required for the PROJECT.

4.07 He shall pay all reimbursable expenses incurred in the project as called for in Article 7
and all taxes (not including income tax) that the government may impose on the
ARCHITECT, as a result of the services rendered by the ARCHITET on the PROJECT
whether the services were performed as an individual practitioner, as a partnership or as
a corporation.

ARTICLE 5. PROJECT CONSTRUCTION COST

5.01 That the cost of the work or the Project Construction Cost, as herein referred to, means
the cost of the completed structure to the OWNER including plumbing and electrical
fixtures, mechanical equipment, air conditioning equipment, generators, pumps,
elevators, escalators, fire-fighting equipment, automatic fire sprinkler system,
communication system, communication and sound system elements attached to the
building and all items indicated in the drawings, and planned by the ARCHITECT, such as
movable closets, cabinets, and other items of similar nature are to be paid separately by
the OWNER to the ARCHITECT as stipulated in Article 7.02. The Project Construction
Cost, however, does not include any ARCHITECT’s fee or engineer’s fee or the salaries of
the construction inspectors. When labor or materials are furnished by the OWNER below
its market cost, the cost of the work shall be computed upon such current market cost.

ARTICLE 6. BASIC RATE

The “Basic Rate” referred to in Article 3 applies to the work done by the ARCHITECT on
the basis of a lump sum contract. Additional work on cost-plus-fees basis, or on any basis
other than the lump sum contract basis, where the ARCHITECT has to render more than
the regular or basic services, shall be the subject of a required special charge. Such
special charge shall be commensurate to the special services required and shall be in
addition to the Basic Rate.

ARTICLE 7. OTHER EXPENSES CHARGEABLE TO THE OWNER

7.01 Government Taxes on Services. The ARCHITECT’s fee as stipulate in Article 3 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.

7.02 Different Periods of Construction. That of portions of the building are erected at different
periods of time, this increasing the ARCHITECT’s construction phase period and burden
of services, charges pertaining to services rendered during the construction phase shall
be doubled. It is understood that a suspension of construction for a period not exceeding
six (6) months shall not be covered by this provision.

7.03 Separate Services. That if the OWNER requires the ARCHITECT to design or plan
movable closets, cabinets, pieces of furniture, covered walks, grottos, pools, landscaping
and other items of similar nature, the OWNER shall pay the ARCHITECT additional
compensations in the amount of five percent (5%) of the construction cost of the above
work.
 7.04 Other Professional Services. That the ARCHITECT’s fee includes normal structural,
electrical, sanitary and mechanical engineering services, but do not include services for
survey, soil exploration and laboratory tests which are on the account of the OWNER as
stipulated in Article 4.04. Other services that may be needed in order to complete the
project such as acoustic engineers mural painters, sculptors and interior decorators are
to be recommended by the ARCHITECT for the OWNER’s approval and costs for these
services are to be paid by the OWNER and not deductible from the ARCHITECT’s fee.

7.05 Miniature Models. That the ARCHITECT may make and include miniature models of
studies as part of his preliminary sketches if he so deems it necessary. No extra charge
for such miniature. To have such miniature models of the final and approved preliminary
drawings for exhibitive and display purposes, the OWNER shall pay for cost of said
miniature models.

7.06 Per Diems. A per diem of not less than One Thousand Pesos (P1,000.00) shall be
chargeable to the OWNER on any occasion where the ARCHITECT perform site inspection
of the PROJECT.

7.07 Extra Sets of Contract Documents. That the ARCHITECT is to furnish the OWNER five (5)
sets of Drawings, Specifications and other Contract Documents. Cost for printing or
reproduction of extra sets of Contract Documents when required by the OWNER or his
representatives is to be paid by the OWNER.

7.08 Changes Ordered by Owner. If the work of the ARCHITECT is abandoned or suspended,
in whole or in part, the ARCHITECT 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.

ARTICLE 8. FULL – TIME SUPERVISION

Upon recommendation of the ARCHITECT and with the approval of the OWNER, full-time
construction inspectors as will be deemed necessary, shall be engaged by the OWNER
and their salaries paid for by the OWNER. The construction inspector shall under the
technical control and supervision of the ARCHITECT and shall make periodic reports to
the OWNER and to the ARCHITECT as to progress and quality of the work done.

ARTICLE 9. ESTIMATES

Since the ARCHITECT has no control over the cost of labor and materials, or competitive
bidding, he does not guarantee the accuracy of any Statements of Probable Construction
Cost, or any Semi – Detailed or Detailed Cost Estimates

ARTICLE 10. COST RECORDS

During the progress of the work, the OWNER shall furnish the ARCHITECT two (2) copies
of records of expenses being incurred for the construction. Upon completion of the
project, the OWNER shall furnish the ARCHITECT two (2) copies of the summary of all
cost of labor, services, materials, equipment, fixtures and all items used at and for the
completion of the construction.

ARTICLE 11. DESIGN AND PLACEMENT OF SIGNS

All signboards of contractors, sub-contractors, jobbers and dealers that will be placed at
the job site during the progress of construction shall be approved by the ARCHITECT as
to size, design and contents. After the completion of the project, the OWNER or his
lessee shall consult the ARCHITECT in the design and size of all signboards, letterings,
directories and display boards that will be placed on the exterior or public areas within
the building, in order to guard the OWNER’s interest that nothing will be installed in the
building that would mar the function and aesthetics of the structure.

ARTICLE 12. OWNERSHIP OF DOCUMENTS

Drawings and specifications and other contract documents duly signed, stamped or
sealed, as instruments of service, are the intellectual property and documents of the
architect, whether the object for which they are made is executed or not. It shall be
unlawful for any person to duplicate or to make copies of said documents for use in the
 repetition of and for other projects or buildings, whether executed partly or in whole,
without the written consent of architect or author of said documents.

ARTICLE 13. SUCCESSORS AND ASSIGNS

The OWNER and the ARCHITECT each binds himself, his partners, successors, legal
representative and assigns to the other party to this AGREEMENT, and to the partners,
successors, legal representative and assigns of such other party in respect of all
covenants of this AGREEMENT. Except, as above, neither the OWNER nor the
ARCHITECT shall assign, sublet or transfer his interest in this AGREEMENT without the
written consent of the other.

ARTICLE 14. ARBITRATION

All questions in dispute under this AGREEMENT shall be submitted in accordance with the
provision of Philippine Law on Arbitration and provided for in Article 2042 of the New Civil
Code of the Philippines and the provisions of Republic Act No. 876.

If any dispute, difference or question shall at any time arise between the parties as to
the interpretation of this agreement or arising out of this agreement or as to the rights,
liabilities and duties of the parties hereunder, or as to the execution of the said PROJECT,
the same shall be referred to an arbitrator to be agreed upon and appointed by both the
parties or in case of disagreement as to the appointment of a single arbitrator, to the
appointment of two arbitrators one to be appointed by each party, which arbitrators
shall, before taking upon themselves the burden of reference, appoint an umpire whose
decision in the matter shall be binding on both the parties. It is hereby provided that the
arbitrator so appointed shall make his award within six months from the date of the
arbitrator or arbitrators, as the case may be, entering on the reference. The award of the
arbitrator or arbitrators, as the case may be, shall be final and binding on the parties.
The parties agree that if work under this agreement has not been completed at the time
of reference of dispute to arbitration, the work shall continue during the arbitration
proceedings and the employer shall make the payment to the architects within the
provisions of this agreement and shall not withhold any money payable to the architects
on account of arbitration proceedings unless authorized by the arbitrator.

ARTICLE 15. APPLICABLE LAW

In case of the insufficiency of the stipulations herein, the pertinent provisions of the Civil
Code of the Philippines and Republic Act No. 9266 shall apply.

The parties to this AGREEMENT hereby agree to full performance of the covenants contained herein.

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 left-hand margin of all other pages of this
AGREEMENT.

By:

EVELYN V. ROSE RAMON P. TANGLAO

Owner Architect

Signed in the presence of:

_______________________________________ and _______________________________________