Consortium Agreement

CIAP PCAB Template for consortium agreement

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This Agreement made and entered into by and between:

___________(Company Name)____________________________________, a sole
proprietorship/corporation duly organized and existing under and by virtue of the
laws of the Republic of the Philippines with principal address at ________________
___________________________, herein represented by its owner/Authorized
managing officer, hereinafter called to as the First Party.
- and ___________(Company Name)_________________________________________,
a sole proprietorship/corporation duly organized and existing under and by virtue of
the laws of the Republic of the Philippines with Principal address at _____________
___________________________, herein represented by its owner/Authorized
managing officer, hereafter called to as the Second Party.


WHEREAS, the ______________(Name of Procuring Entity) ________, has
advertised for public bidding the __________(Name of Project)________________
________________________________________________________________ and
______(Location) ____________________________________________;
WHEREAS, the parties are both desirous of prequalifying for and participating in the
bidding of the above stated project;
WHEREAS, the parties believe that they can best maximized their chances of
prequalifying for the said public bidding and can satisfactorily prosecute the project
should they win and be awarded the contact by Bids and Award committee for civil
works of the ______________(Name of Procuring Entity)________________if they
pool their financial, equipment and technical resources necessary for the abovesated purpose under a consortium agreement.
NOW THEREFORE, for and consideration of the foregoing promises and mutual
covenants hereinafter set forth, the Consortium agreed to establish, as they hereby
establish and constitute by and between themselves, a CONSORTIUM for the
exclusive purpose of qualifying for and participating in the foresaid public bidding of
the project and actually undertaking the construction work thereof should they
successfully win and eventually be awarded the contract, subject to the following
terms and conditions:

1. For all intents and proposes, the Consortium entity established hereby, shall be
known as _____________(Name of Consortium)________________________
2. For communication purposes, all communication/letters shall be addressed at the
Consortium business address at ____________________________________
3. Mr./Ms. ________(Name of Nominated AMO)______________, is hereby
named, appointed and constituted as the Authorized Managing Officer (AMO)
and as such, is the sole representative for and behalf of the herein Consortium
and all bids, contacts and other documents whatsoever pertinent to said project,
shall be signed by her/him.
4. The Parties shall be jointly and severally liable for any and all obligation which the
consortium may incur in relation to the contract which the said Consortium may
enter into with the _______(Name of Procuring entity)______________.
5. The parties shall be jointly and severally liable for any and all obligation which the
Consortium may incur on the basis of ____% for _(Company name of First
Party)______________ and ____% for _(Company name of Second Party)___
for all the necessary capital, equipment, technical personnel, management,
supervision and other efforts and resources for the proper implementation of the
project in the event that the Consortium is awarded the contract for the said
project, and further bind themselves at all times during the existence of this
Consortium, to extend to each other their respective fullest cooperation and best
effort towards the efficient and profitable construction of the project in accordance
with the approved plans and specification, and to complete the same within the
approve schedule.
6. The net profit or losses of the Consortium shall likewise be divided between the
parties on a ___% and ___%, respectively.
7. ____(Name of Construction Firm)___ , the lead partner who will mainly execute
the project, provide equipment, technical personnel and management
8. ___(Name of Non- Contractor Firm)__ , the non-contractor parties will supply all
the materials will be in charge on all documentation, import, testing and finance
for all materials and equipment that will be provided.
9. It is hereby agreed and understood that if the herein Consortium fails to qualify
for the aforementioned public bidding, or if prequalified, and fails to win the public
bidding, that this Agreement shall thereupon cease, terminated and automatically
become void and of no further force of effect whatsoever. In the event, the
Consortium is awarded the aforementioned contract, then this agreement shall
remain in full force and effect as of the date hereof, and until the final completion

and acceptance of the contract project by the _____________(Name of
Procuring Entity)___________________.

IN WITNESS WHEREOF, the parties, hereto have set their hands this, ____day
of _____________,20__ at _____________________, Philippines.

_(Name of First Party)

__(Name of Second Party)__




_(Name of AMO/Representative)_

_(Name of AMO/Representative)___


_(signature of witness)__

_(signature of witness)


Republic of the Philippines)
City of _______________-) S.S.
This day personally appeared before me the following:


Date/Place Issued

both known to me as the same persons who executed this foregoing instrument and they
acknowledged to me that the same is their own true and voluntary act and deed and the
company/firm they respectively represent.
WITNESS MY HAND AND SEAL this _____ day of _______________,20__ at
________________________, Philippines.

Doc No.______
Page No, ______
Book No. ______
Series of 20__.