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Construction Non Compete Agreement Template for Philippines

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Key Requirements PROMPT example:

Construction Non Compete Agreement

"I need a Construction Non-Compete Agreement for our Manila-based construction company to protect our proprietary building techniques and client relationships, restricting senior engineers from working with competitors within Metro Manila for 18 months after leaving our company."

Document background
The Construction Non-Compete Agreement is essential for construction businesses operating in the Philippines seeking to protect their legitimate business interests, trade secrets, and competitive advantage. This document becomes particularly relevant when companies invest significantly in specialized training, client relationships, or proprietary construction methods. It must be drafted in compliance with Philippine law, including the Constitution, Civil Code, and construction industry regulations, while ensuring reasonable restrictions in terms of duration, geographical scope, and prohibited activities. The agreement typically includes detailed provisions on confidentiality, return of property, and remedies for breach, while carefully considering the dynamic nature of the Philippine construction industry and the need to balance business protection with individual rights to employment.
Suggested Sections

1. Parties: Identifies and provides complete details of the contracting parties - typically the construction company/employer and the employee/contractor

2. Background: Explains the context of the agreement, including the nature of the construction business and the legitimate business interests being protected

3. Definitions: Defines key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Construction Services', and 'Restricted Territory'

4. Non-Compete Obligations: Details the specific restrictions on competing activities, including geographical scope, duration, and types of prohibited activities

5. Duration and Territory: Specifies the time period and geographical areas where the non-compete restrictions apply

6. Legitimate Business Interests: Explicitly states the legitimate business interests being protected, which is crucial for enforceability under Philippine law

7. Consideration: Specifies the consideration provided in exchange for the non-compete obligations

8. Confidentiality Obligations: Details obligations regarding confidential information and trade secrets

9. Return of Property: Requirements for returning company property, documents, and materials upon termination

10. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of independent legal advice

11. Remedies: Specifies remedies for breach, including injunctive relief and damages

12. General Provisions: Standard clauses including governing law, severability, modification, and entire agreement

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting employees, clients, or suppliers - used when business relationships need specific protection

2. Training and Development: Details of specialized training provided - included when significant training investment justifies restrictions

3. Garden Leave: Provisions for paid leave during notice period - used for senior positions or when immediate competition risk exists

4. Assignment Rights: Rights to assign the agreement - included when business sale or restructuring is contemplated

5. Monitoring and Compliance: Procedures for monitoring compliance - used in high-risk situations or for senior positions

6. Alternative Dispute Resolution: Mediation or arbitration procedures - included when parties prefer alternative dispute resolution

7. Survival Clause: Specifies which provisions survive termination - used when certain obligations should continue post-termination

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed map or list of geographical areas where restrictions apply

2. Schedule B - Competing Businesses: List of specific competitors or types of competing businesses

3. Schedule C - Consideration Details: Breakdown of financial or other consideration provided for the non-compete obligations

4. Schedule D - Confidential Information: Detailed list of types of confidential information covered

5. Appendix 1 - Employee's Position and Duties: Detailed description of employee's role and access to protected information

6. Appendix 2 - Company's Specialized Training: Details of specialized training or knowledge provided to employee

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































Clauses


































Relevant Industries

Construction

Engineering

Architecture

Real Estate Development

Infrastructure Development

Building Materials

Construction Technology

Project Management

Civil Engineering

Industrial Construction

Residential Construction

Commercial Construction

Relevant Teams

Project Management

Engineering

Design

Operations

Business Development

Procurement

Quality Control

Safety and Compliance

Technical Services

Estimating

Contract Administration

Site Operations

Construction Planning

Research and Development

Client Relations

Relevant Roles

Project Manager

Site Engineer

Construction Manager

Architect

Civil Engineer

Structural Engineer

Construction Supervisor

Project Director

Technical Director

Construction Estimator

Procurement Manager

Contract Manager

Quality Control Manager

Safety Manager

Operations Manager

Business Development Manager

Construction Consultant

Senior Project Engineer

Design Manager

Site Superintendent

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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