Author: Atty. Sherdil Rana
-
Force Majeure in Construction: When Is a Delay Beyond the Contractor’s Control?
Few words appear more frequently in construction-delay discussions than: “Force majeure.” A project is delayed because of a typhoon. Materials suddenly become unavailable. A government order affects the project. A major external event disrupts construction. The contractor then attributes it to “force majeure.” But saying the words does not automatically make a contractor legally excused…
-
Progress Payments Should Follow Progress—Not Promises
One of the most common stories I hear from homeowners begins with the same sentence. “Attorney, fully paid na kami—pero di pa gawa ang bahay.” Sometimes the contractor has stopped reporting to the project. Sometimes construction has slowed to a crawl. Sometimes the remaining work requires significant additional cost to complete. When I ask how…
-
Your Contractor Is Not a Mind Reader—And Neither Are You
Many construction disputes do not begin because someone acted dishonestly. They begin because two people believed they were talking about the same thing when, in reality, they were not. An owner assumes a particular finish is included. A contractor assumes it is an additional cost. Neither realizes the misunderstanding until construction is already underway. By…
-
The Most Important Clause in Your Construction Contract Is the One You Hope You’ll Never Use
For many Filipinos, building a home is the realization of a lifelong dream. Some save for years to build a retirement home. Others return after working overseas to finally construct the family home they have always imagined. Some build a vacation house where future memories will be made. The excitement usually revolves around choosing the…
-
Reputation Is a Contractor’s Most Valuable Asset
Ask experienced contractors where most of their projects come from, and many will probably give a similar answer. Not advertisements. Not social media. Not even competitive bidding. Many will simply say: “Referral.” That single word says a great deal about the construction industry. Unlike many other businesses, construction is built heavily on relationships, trust, and…
-
The Cheapest Contractor May Not Be the Cheapest Decision
If you’ve been in the construction industry long enough, you’ve probably experienced this before. You spend days—or even weeks—preparing your proposal. You visit the project site. You coordinate with suppliers and subcontractors. You carefully estimate labor, materials, equipment, overhead, and project risks. You submit what you believe is a realistic and responsible bid. Then the…
-
Why Expectations Matter After Home Turnover — Even for Well-Built Homes
Recently, I was speaking with a friend who operates a build-and-sell business in Baguio. He had completed and sold a residential property with a good level of workmanship and finish. A few months after turnover, however, some minor issues began appearing. Nothing catastrophic. A fixture needed adjustment. A small repair was required. A few punch-list…
-
Liquidated Damages: Why Delay Is More Complicated Than It Looks
When contractors review a construction contract, one provision often receives little attention during the excitement of securing the project: the liquidated damages clause. At that stage, most parties are focused on mobilization, schedules, manpower, and getting work started. Liquidated damages can feel like just another provision buried somewhere in the contract. But once delays begin…
-
Why Contractors Should Read Their Construction Contract Before Signing It
Winning a construction project is often an exciting moment for any contractor. After weeks or months of bidding, negotiations, and discussions, the focus naturally shifts toward mobilization and getting the work started. At that stage, many contractors focus primarily on: The contract itself is sometimes viewed as the final administrative step before work begins. “Pirmahan…
-
What Contractors Should Understand About CIAC Arbitration
Many contractors first hear about CIAC arbitration only after a construction dispute has already become serious. At that stage, the situation often already involves: Because of this, CIAC arbitration sometimes immediately sounds intimidating or highly technical. “Parang malaking legal battle na agad.” But many contractors misunderstand what construction arbitration actually is — and how it…