Sample Agreement LetterSample Agreement Letter

January 23, 2009

Mr.Ricardo G. Silva
Xavier Ville Subd.
Quezon City


Dear Mr. Silva:

This letter is serves as our written agreement for the house construction of One Storey Residential house at Tabing Ilog Subd. Antipolo City. The total contract cost for the project is One Million Nine Hundred Thousand Pesos (1.9M).

Here are the following terms and conditions:

1. Schedule of payment and work accomplished as follows:

a. Thirty Percent Downpayment (30%) upon signing of contract

b. Balance progress billing

c. If the owner fails to pay the whole amount of downpayment within ten days upon signing of this contract, otherwise an additional three  percent  (3%) of the total contract price will be added to cover increase of materials.

d. Time of completion is 180 working days from the date of issuance of building permit

e. Extra Jobs:  If the owner shall require the contractor to perform additional work not included in the plans and specification is subject to another estimate. In view of that, the owner shall pay an additional amount for the cost of material and labor plus 15% mark up to the contractor

f. Failure by the contractor to complete and deliver the PROJECT within the specified period without the benefit of an approved extension of time shall be grounded for termination. The Owner, shall likewise be entitled to liquidated damages in the amount equivalent to one-tenth (1/10) of one (1% ) percent of the contract price per day of delay. The Owner is hereby authorized to deduct the amount of such liquidated damages from any money due.  The Contractor shall not liable if the delay in the performance of its work due solely to force majeure  such as storms, earthquake, volcanic eruptions, civil disturbances such as war, rebellion, insurrection, transport and other strikes affecting production of materials vital to completion of the Project and such other occurrences beyond the control of the Contractor. The date and cost to be agreed by both parties (building only).

2. Warranty : One (1) year from the date of final acceptance of the project. The Contractor shall replace defective job at his own expenses during the entire period but on the other hand ordinary wear and tear including intentional breakage is excluded in this warranty.

3. Conditions: Light and water provided by the owner for free and provide space or barracks to the workers.

4. Guarantee: We guarantee that all the materials forming part of the complete system is of good quality and the best type of service intended. Our Customer and Clients are backed-up and supported with a highly experienced service staff-project team, design team, enhanced engineering and installer team

5. CONTRACTOR may terminate this contract by thirty (30) days written notice at anytime during the term hereof upon CUSTOMER failure to pay any sum due and payable. Neither party shall liable to the contract under the provisions of this paragraph. In the other hand, the OWNER may terminate the contract if the contractor failed to perform the work or any part thereof satisfactorily in accordance to agreed term and condition of contract. Of this arise, contractor will received the aggregated amounts payable for work satisfactorily completed.

If you have any question for the above terms and condition, please do not hesitate to contact us.

Very truly yours,


Jomar D. Santiago
ABC Construction Firm