Homechoice Planners Blog

Construction Contract is it Important?

Why a Construction Contract Is Important?

At the most basic and common, you want to get the house that was promised, and the contractor wants to get fully paid for the house being built. The contract serves to reflect this understanding and covenant, to make sure there is no disagreement before the actual works begins, and to provide a guide to follow in case a problem arises later. Most often your contractor will provide you with a contract that’s ready for signing.  The contract in its original form may have very few terms with very few details, or it may be so detailed and filled with complicated terms that it is hard to understand. Neither of those situations are acceptable. To fully protect your rights, the contract terms should be complete, specific, detailed and easy to understand.

Scope of Work. This section describes the work that the contractor agrees to perform. This work typically includes obtaining municipal or other permits, and furnishing the labor, equipment, materials, and other services necessary to complete the house. This section also requires the contractor to conform the work to the house’s plans (drawings) and specifications, which should be attached and made a part of the contract. Sometimes, even when contract documents are drafted carefully, they contain conflicting terms in the plans, specifications, and/or the written contract. This conflict can lead to confusion and disputes. For example, if the plans depict a master bathroom with one sink, but the specifications call for two sinks, which is correct? Consider specifying that, in case of conflict between the plans and specifications, the specifications will control. And, in all cases of conflict, the contract should be the controlling document. Ensure that a detailed specifications form part of the approved plans duly agreed and conformed all regulatory requirements.

Timing of the Work. You’ve probably heard horror stories about building projects going off schedule. How do you protect yourself against this? Make sure the contact contains information about when construction will begin, the schedule of work the contractor must follow, and when construction will end (in other words, when can you move in). Extensions of time may be granted for delays caused by:

  • -poor weather or other “acts of God”
  • -labor strikes
  • -payment delays caused by the owner
  • -inspection delays caused by the municipality
  • -changes or additions to scope of work , and
  • -other issues that are beyond the reasonable control of the contractor.

While the contractor may be hesitant to agree to it, consider including a provision for liquidated damages. Basically, this provision states that for every day the contractor works beyond the completion date (subject to the exceptions listed above), the contractor will be charged a certain amount. Such liquidated damage provisions protect the owner from delay, and are an incentive for the contractor to complete work in a timely manner.  This provision is not meant to be a punishment, but compensation to cover costs that the owner will incur due to the delay. These might include costs to store your furniture or costs to rent an apartment during the period of delay. Just ensure that the client also fulfill its financial obligations due to the contractor.

Payment. This section should clearly indicate what, when, and how the owner will pay the contractor. Because the contractor will likely be relying on payments from the owner to fund the construction, the payment schedule must provide a steady stream of money so that the house may be built in a timely manner. A typical contract will require an initial payment prior to construction. Then, on a regular basis thereafter, the contractor will submit an application for payment to the owner indicating the amount of work completed during that cycle. Often, the final payment on a project is tied to “substantial completion.” The contract might say, for example, that final payment is due 15 days after the house has been substantially completed. This is not problematic so long as “substantial completion” is defined appropriately in the contract. Therefore, consider defining substantial completion in the contract narrowly by listing specific items, or restricting work after substantial completion to minor repairs. 

Changes to Scope of Work. Sometimes, after construction has begun, the scope of work changes. This could be due to the owner’s decision (let’s add a built-in bookshelf there!), a requirement from the permitting authorities, or the discovery of an unknown property condition affecting construction. The contract should account for the possibility of such changes by requiring written work orders to reflect changes in the scope of work. Never just tell the contractor, “Sure, go ahead with our new plan,” without creating a written work order that both you and the contractor sign. To do otherwise would open the door to additional unanticipated expenses. Make sure to pay the changes and additional prior to work to avoid overshoot to unanticipated expenses.

Warranty. Although not required, many contracts contain express warranties, describing what types of defects the contractor will take care of later, how long the warranty lasts, your maintenance obligations, and what the contractor is required to do to fix the defects. If your contract contains an express warranty, read it carefully and negotiate the terms if necessary. If your contract does not contain an express warranty, consider adding one to the contract.

Dispute Resolution. No matter how careful you are in drafting the contract or how friendly you are with the contractor, a dispute may arise. It is common for construction contracts to require binding arbitration rather than litigation in a court if there is a dispute. If the contract requires arbitration, you may not sue the contractor. Instead, you must submit a complaint to an arbitrator – an expert in the construction industry who will listen to both sides of the dispute and issue a binding decision resolving the issue. Language is as important to contracts as the people who will be bound by their terms. Properly written contracts with language each party can clearly understand could stop many contract disputes before they start. Of course, one cannot predict where and when another party will breach the contract, but with clear and concise wording, any sensible party would be hard-pressed to blatantly deviate from the terms set forth. Due diligence is another key component of successful contracts. Simply put, do your homework and choose wisely who you adjoin signatures with on paper.


If you’re ready to upgrade to a larger or higher-quality home, or new home you’re probably already considering whether a custom home is right for you. The custom route is the sure-fire way to get exactly what you’re looking for, no matter what that may be. Of course, buyers who are new to the custom homebuilding process often have a lot of questions. One of the most common ones revolves around financing. Most people are accustomed to how financing works for a traditional mortgage. But how does financing a custom home differ? Of course, financing for a traditional, pre-built home involves the purchase price of the house, as well as your closing costs. Financing a custom home, on the other hand, includes the purchase price of the land (if you don’t already own it), the cost to build the home, the cost to develop the site, the design and specifications, as well as the lenders capacity to pay and all other closing costs.
The Financing Process
The process of financing a home varies slightly depending on whether you are buying an existing home or building your own. Financing a pre-built home is a one-step process, in which the buyer obtains a loan through a mortgage lender. Financing for a custom home is a two-step process:
1. First, you obtain a temporary loan to get the project started. This is a standard construction loan that includes the cost of your land.
2. When construction is complete, you refinance your initial loan to obtain a regular mortgage.
Construction Loans
Your initial, temporary construction loan kicks off the building process and covers the cost of your land. To secure the best loan for you, look for a lender that offers construction loans at competitive interest rates with little or no money down or even make your land as collateral. Building a new home on your own land gives you the unique opportunity to build . As you can see, the process of financing a custom home is much different from a traditional mortgage. To ensure you get the best rate possible, as well as loans that meet your specific needs, look for a lender that specializes in custom home financing. Seek out a company that offers construction loans with little or no down payments, and will meet your needs for permanent financing options. Most importantly, find a bank that will work closely with you and keep you well informed throughout the entire process. Building your first custom home can feel a bit daunting at first, and you want a lender that makes financing a hassle-free part of the process. Partner also with a builder who can assist your home financing process. Ready? Lets Talk! Make us your Homechoice!

Love Me Right

“We are not just building a house but a H.O.M.E”

Homechoice Planner’s slogan from an unknown author somehow echos this month’s emphasis on LOVE. Tho FEB 14 is the “official” day of what we call Hearts Day or Valentines Day yet the theme radiates all throughout the month thus calling February THE LOVE MONTH.

Flowers and chocolates are expected to rise in price this time of the year and all the once empty restaurants are now full. Get together, gifts, flowers, chocolates, human size stuff toy, hearts ….. spending …. sure are the top most used gestures but remember, let’s not trap this LOVE in a “couple” box.

We built hundreds of home in CDO and met different families with different stories. Stories that would make you reflect….

“Wow, he did that? and you’re still standing strong!”

“yup.. children needs disciplining. Spare the rod, spoil the child.”

“awwee, time did not kill the romantic spark in your relationship”

….. family matters. How you treat or handle the relationship inside your family, MATTERS!

A member in your family seems insecure? Appreciate him/her enough.
A member in your family seems to have trust issues? Maybe you’re not keeping the promises you’ve made.

Let’s love right this 2020

Here is a list of what the bible says love is. Why won’t we assess and evaluate ourselves. Maybe we are a little selfish for the past years or a bit proud. Maybe we are keeping records of wrongdoings and just waiting for the perfect chance to “let our heart out”. Maybe…

So how was the assessment doing?

Let’s together make our house a lovely home. A place where we can be ourselves and not be judged. HOME. A place where correction =  caring and not just nagging. HOME. A place where we first love right. HOME.


The Preview – Bamboo Lane Cluster 14

Anyone of you here knows someone who owns a Bamboo Lane Unit in Cluster 14? Share them this blog!

What we have here is a photo of Bamboo Lane Cluster 14. See the date at the bottom? Yes, that’s an automated time and date, from our camera, to show that the photo was actually taken on that day. This shows the progress of the construction process — which I believe makes the homeowners even more excited. Let’s together witness the building coming to shape!


You wish to build your home or office building? Feel free to visit us!

Homechoice Planners Non-Residential Project?

Homechoice Planners and Construction Corporation specializes in Customized Construction and made over a hundred of residential houses in CDO —— has non-residential projects?


YES, we also build non-residential buildings.

The most recent non-residential project we have is BIR’s new building. We have been given the opportunity to partner with one of the biggest contractor, UKC, to finish the building and we’re almost at the finish line.

One of our main role is to install walls and partitions, applying our plasswall system – 3rd, 4th and 5th floor, and I should say, our system caused this project hit the target.

We are entrusted with the walls and partitions now and maybe God will open the windows of heaven this year and  bless us with an entire building to build, just like our office.

Double Blessing 2020

2020 START!

Christmas Holiday was fun!

Parties here and there.
Gift giving everywhere.
It sure was a season of love and joy.

New Year Celebration came up next, families and relatives gathered together and shared stories and laughter…


….. and the celebration continues.


On the 1st week of January, a family dedicated their dream  home to the Lord with the help of our church partner, Assembly of God Church in Nazareth, and the date scheduled was significant to the family for it was a full moon.

The celebration continued on the 2nd week for another family dedicated their dream home as well.


2 homes dedicated in 1 month!


As what the bible says in Luke 16:10, “ Whoever can be trusted with small things can also be trusted with big things. Whoever is dishonest in little things will be dishonest in big things too.”

We can say that this double blessing is a manifestation that we did what must be done in the last year and that God is entrusting us with more families to partner with this year.


We are not just building a house but a home!

Steel Toe Saves the Worker’s Day!!

Dec 2, 2019 .. the company phone rang and the person calling said’ “Ma’am, naay aksidente ….”


Red sky in the morning, shepherds warning. Red sky at night, shepherds delight.


The sky can show us signs and we then know what it meant. How convenient it would be if all circumstances are like that but whether we like it or not, life has this unpredictable variable — ACCIDENTS — and one of our team members had his unpleasant encounter.

This incident no surprise for a construction company for others may tell us worse but it would be a lie if we’ll say we are not alarmed.

We rushed to the hospital and have his feet x-rayed and thank God no fracture was found.


The doctor said, “maygani ma’am kay naka steel toe, kung wala pa, fracture gyud ni.”


Wearing COMPLETE PPE sure is life saving!


Construction Workers oftentimes find wearing complete PPE a hassle but this incident is one of the moments when wearing PPE saved a person from an even more hassle situation.

Accidents can’t be predicted but can be prevented

This is an old saying but still remains true. So if you have a family member who works in a field like us, CONSTRUCTION, encourage them to wear their complete PPE for we treasure them more than they know.



Good news!




“Together Everyone Achieves More!”

This is the best acrostic meaning given to the word TEAM and the truth behind this meaning is appreciated worldwide.





As the building of Bamboo Lane progresses, Pueblo de Oro is looking for contractors to partner with whom they can fully trust and depend on. One of the great news is that we, Homechoice Planners, made the cut and was given more clusters to build! Together with Roy Engineering Services, Sta. Ana Raycas Corp., and Sentroid Engineering Services.




November 27, 2019 —  Commitment Commenced

The partnership is sealed with a prayer during the ground breaking ceremony, acknowledging that apart from God, this partnership will not be successful. As what the pastor said during the ceremony (paraphrased), “God will not let us down. He will never do for He loves us but we are capable of letting each other down so let’s offer ourselves unto the Lord”.




Congratulations to us team and let’s work beyond expectation!
Turn-over before deadline?

The Better Aid – Bamboo Lane

Pueblo de Oro is developing CDO’s 1st 3 Storey Townhouse and the kagay-anons are excited of the news. To match with the family’s eagerness to move and live in the 3 storey home, Pueblo de Oro opened its door and invited contractors to aid them with the demand and we, Homechoice Planners Construction Corp., is one of the privileged contractors.

Team Homechoice @ Bamboo Lane


Despite all the best wishes and good intentions, in life, we have our own shares of troubles and challenges and Pueblo de Oro is no exemption. For whatever reason, there’s a season when Pueblo de Oro’s payment got delayed and some contractors flared up which caused negatively on workmanship however we, along with a few other contractors, decided to continue the work with integrity regardless of the situation. Who understand contractors better than co-contractors?

When Pueblo de Oro got back on their feet and everything’s back to normal, they can now see who’s with them through thick and thin. They know who believes in them and trust them fully and to whom they could pour their complete trust into — we, Homechoice Planners, along with the few other contractors who aid them to the fullest.

The tough season brought forth great friendships and partnerships and this is beyond what the delayed payments could afford.

Team Homechoice, you’ve done it again.


Four years as an ISO Certified Company, Homechoice Planners has attracted clients who are thorough in planning and execution of their house building project. Our system management has been put to the test when we built this house. Communication between client and the client is crucial for timing and target achievement. In the process, we learn a lot of better construction processes practiced abroad and welcome the improvement these can contribute to our system and products.

After several months of collaboration with client and suppliers, we happily completed the house last February 28, 2019 and delivered it to its owners who are satisfied with the result. It was custom-built with client-requested features which are the wooden planks on all floors, swing- out smoked-glass windows and steel doors.

Let’s start your house project. Check our on-going Appliances Incentive Promo for the First Quarter bookings. Email us info@cagayandeoroconstruction.com or call us.