Author: Atty. Sherdil Rana
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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…
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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…
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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…
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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…
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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…
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Why Contractors Should Stop Relying on Verbal Instructions
One of the most common habits in construction projects is reliance on verbal instructions. A discussion happens on site. An adjustment is requested. A direction is given quickly during coordination. At the time, everyone may understand what is being discussed. “Okay, klaro naman. Gawin na yan.” The problem usually appears much later — especially once…
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When Construction Problems Start Becoming Legal Disputes
Most construction disputes do not begin with lawyers immediately becoming involved. Usually, problems start much earlier. A delayed payment. An unresolved variation. Project delays. Repeated misunderstandings. Unanswered notices. At first, parties often assume the issue can still be fixed informally. “Maaayos pa ’yan.” But over time, unresolved issues begin affecting trust, communication, and project operations.…
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Variation Orders: Why Small Changes Become Big Disputes
In many construction projects, the dispute does not begin with a major collapse in the relationship. Sometimes it starts with something much smaller:a change in the work. Additional scope gets requested. Plans are revised. Site conditions change. Instructions are given quickly during construction. At the time, everyone may assume the issue can simply be resolved…
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Why Construction Claims Fail Even When the Contractor Is Right
One of the harsh realities in construction disputes is this: A contractor can be completely correct—and still lose the claim. Not necessarily because the work was defective. Not necessarily because the contractor caused the problem. But because the claim itself was poorly documented, poorly presented, or raised too late. “Minsan valid ang position—pero kulang ang…
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Can a Contractor Stop Work for Non-Payment?
One of the first reactions contractors have when payments stop is simple: “If they’re not paying, why should we continue working?” From a practical perspective, the frustration is understandable. Construction projects are expensive to maintain. Labor, equipment, suppliers, and overhead continue regardless of whether payment is being released on time. “Habang tumatagal ang delay sa…