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Mutual Termination Of Construction Contract Template for Philippines

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Key Requirements PROMPT example:

Mutual Termination Of Construction Contract

"I need a Mutual Termination of Construction Contract for a shopping mall development project in Manila that's being cancelled due to market conditions, with termination planned for March 15, 2025; the document should include provisions for the contractor to be compensated for 45% completed works and removal of equipment from site."

Document background
The Mutual Termination of Construction Contract is a crucial document used when both parties to a construction contract in the Philippines agree to end their contractual relationship before the original completion date. This document becomes necessary when circumstances such as project feasibility changes, funding issues, or strategic realignments make it beneficial for both parties to terminate their agreement early. It ensures compliance with Philippine civil law and construction regulations while providing a clear framework for termination settlements, including handling of completed works, materials on site, and outstanding payments. The document protects both parties' interests by including mutual releases and clear procedures for project handover, making it essential for risk management in construction projects. It should be customized based on the specific project circumstances while maintaining compliance with Philippine legal requirements.
Suggested Sections

1. Parties: Identification of all contracting parties including the employer/owner and the contractor, with their complete legal names and addresses

2. Background: Details of the original construction contract, including date of execution, project description, and brief context for the mutual termination

3. Definitions: Definitions of key terms used in the termination agreement, including references to terms from the original contract that remain relevant

4. Effective Date of Termination: Clear specification of when the termination takes effect and any conditions precedent to effectiveness

5. Work Status and Handover: Description of the current status of works, documentation requirements, and process for handover of the site and works

6. Financial Settlement: Details of final payment calculations, including work completed, materials supplied, and any agreed termination payments

7. Return of Materials and Equipment: Provisions for handling construction materials, equipment, and temporary facilities on site

8. Release and Discharge: Mutual release of obligations and claims, subject to any surviving obligations

9. Confidentiality: Obligations regarding confidential information and project details post-termination

10. Governing Law: Confirmation of Philippine law as governing law and jurisdiction for any disputes

11. Execution: Signature blocks and execution formalities

Optional Sections

1. Warranties and Representations: Additional warranties about work completed, to be included if significant works were completed before termination

2. Intellectual Property Rights: Provisions for handling design documents and IP rights, needed if design services were part of the contract

3. Insurance and Bonds: Provisions for handling existing insurance policies and performance bonds, if applicable

4. Employee and Labor Matters: Provisions addressing workforce transition or layoffs, if direct employment is affected

5. Dispute Resolution: Detailed alternative dispute resolution procedures, if parties want specific mechanisms beyond court jurisdiction

6. Survival Clauses: Specific listing of obligations that survive termination, if any beyond standard terms

Suggested Schedules

1. Schedule 1 - Payment Settlement Statement: Detailed breakdown of final payment calculations and adjustments

2. Schedule 2 - List of Completed Works: Inventory of works completed and accepted as of termination date

3. Schedule 3 - Outstanding Works and Defects: List of incomplete works and known defects, if any

4. Schedule 4 - Materials and Equipment Inventory: Detailed list of materials and equipment on site and their agreed disposition

5. Schedule 5 - Required Handover Documents: List of technical documents, warranties, and certificates to be handed over

6. Appendix A - Site Handover Protocol: Procedures and checklist for physical handover of the site

7. Appendix B - Form of Release Certificate: Template for final release certificate to be issued upon completion of termination obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 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

Real Estate Development

Construction

Infrastructure

Commercial Property

Residential Development

Industrial Development

Healthcare Facilities

Education Facilities

Hospitality

Retail Development

Transportation Infrastructure

Energy and Utilities

Relevant Teams

Legal

Finance

Operations

Project Management

Commercial

Risk Management

Procurement

Construction

Development

Contracts Administration

Quality Assurance

Document Control

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Chief Financial Officer

Project Manager

Quantity Surveyor

Risk Manager

Commercial Director

Operations Director

Site Manager

Procurement Manager

Financial Controller

Development Director

General Counsel

Claims Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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