Terms of Engagement & BNPL Financing | MCPA Construction and Supply

Terms of Engagement Notice

This document reflects the certified operating policy and legal terms of MCPA Construction and Supply in accordance with Philippine construction statutes, National Building Code regulations, and safety mandates.

1.0

Contractual Framework & Governing Law

These Terms of Engagement constitute the standard contractual conditions governing all residential, commercial, industrial, and renovation projects undertaken by MCPA Construction and Supply (the "Contractor").

Every project agreement is governed by the Civil Code of the Philippines (Republic Act No. 386), particularly Title VIII, Chapter 3 on "Work and Labor / Contracts for a Piece of Work" (Articles 1713 through 1731), the National Building Code of the Philippines (Presidential Decree No. 1096), the National Structural Code of the Philippines (NSCP 2015 7th Edition), and the uniform provisions of CIAP Document 102 (Uniform General Conditions of Contract for Private Construction).

2.0

Scope of Works & Signed Architectural Plans

The Contractor shall execute works strictly according to the approved Project Scope, Bill of Quantities (BOQ), Technical Specifications, and Construction Timetable detailed in the signed Construction Agreement.

Licensed Signatures: All architectural blueprints, structural calculations, electrical drawings, and sanitary schematics are prepared, signed, and dry-sealed by licensed Filipino professionals (PRC registered Architects and Civil/Structural Engineers) with valid PTR numbers.
Municipal Permitting: MCPA provides end-to-end guidance and filing assistance for Municipal Building Permits, Electrical Permits, Sanitary Permits, and Fire Safety Evaluation Clearances (FSEC) with local government units across Bulacan and Central Luzon.
In-House Logistics: Aggregates, hollow blocks, and structural materials supplied directly through MCPA's logistics network meet DPWH specifications and ASTM standards.

3.0

Build Now, Pay Later (BNPL) & Milestone Billing

To provide homeowners with complete peace of mind, MCPA implements a transparent, milestone-based billing schedule under our Build Now, Pay Later (BNPL) program:

Milestone Stage	Physical Scope Covered	Disbursement %	Sign-Off Requirement
Phase 1: Mobilization	Site layout, temporary facility setup, perimeter enclosure, earthworks & foundation excavation.	10%	Site inspection & layout verification.
Phase 2: Substructure	Footing tie beams, foundation rebar installation, gravel bed, and concrete pouring.	20%	Rebar inspection & cylinder strength test.
Phase 3: Superstructure	Reinforced concrete columns, second floor structural slab, roof beams & load-bearing framing.	25%	Post-pour structural milestone check.
Phase 4: Enclosure & Roofing	Steel roof trusses, insulated roofing sheets, CHB masonry walls, and exterior plastering.	20%	Weather-tight enclosure sign-off.
Phase 5: MEPFS Rough-Ins	Electrical rough-in conduits, plumbing supply & drainage pipes, ceiling drywall framing.	15%	Water leak & electrical continuity test.
Phase 6: Turnkey Handover	Floor tiles, painting, doors, windows, sanitary fixtures, punchlisting & Certificate of Turnover.	10%	Client joint inspection & Certificate of Acceptance.

4.0

Variations, Modifications & Change Orders

Any alteration, addition, or deduction from the approved plans requested by the Owner after contract execution must be submitted in writing using MCPA's formal Change Order Form (COF).

Prior Written Approval: No variation work shall begin on the jobsite without mutual written agreement specifying the exact adjustment in cost and project timeline.
Cost Calculation: Added materials and labor are computed strictly based on actual bill-of-quantities (BOQ) rates without arbitrary surcharges.

5.0

15-Year Structural Warranty & Handover (Civil Code Art. 1723)

In strict compliance with Article 1723 of the Civil Code of the Philippines (Republic Act No. 386) and Philippine building standards, MCPA Construction and Supply provides an explicit Fifteen (15) Year Structural Warranty on all complete turnkey residential homes and commercial buildings, commencing from the date of final turnover and execution of the Certificate of Acceptance.

Under Article 1723, the licensed architect and civil/structural engineer who drafted and signed & sealed the plans, along with the contractor (MCPA Construction and Supply), hold statutory liability for fifteen (15) years from the completion of the structure for collapse or structural defects resulting from defects in plans and specifications, defects in the ground, construction defects, or the use of inferior materials. Acceptance of the building does not waive this statutory cause of action under Philippine law.

15-Year Warranty Coverage Includes:

Structural foundation integrity, including footings, grade beams, tie beams, and retaining structures.
Load-bearing reinforced concrete columns, shear walls, and suspended slabs.
Structural roof trusses, rafters, purlins, and primary framing against structural deflection.
Professional engineering liability for signed and sealed structural calculations and soil foundation adequacy.
Architectural finishes & fixtures carry a standard one (1) year workmanship warranty.

Warranty Exclusions:

Acts of God beyond engineering design thresholds (severe earthquakes exceeding design seismic zone specs, volcanic eruptions, soil liquefaction resulting from unauthorized adjacent excavation by third parties), unauthorized post-turnover structural demolitions, or unapproved third-party structural additions.

6.0

Dispute Resolution & Arbitration

In the event of any disagreement or dispute arising out of or in connection with the construction contract, both parties agree to first exhaust amicable discussions in good faith within thirty (30) days from written notice.

Failing amicable settlement, the dispute shall be submitted to voluntary arbitration before the Construction Industry Arbitration Commission (CIAC) in the Philippines pursuant to Executive Order No. 1008.