Text of the provision
Art. 1724. The contractor who undertakes to build a structure or any other work for a stipulated price, in conformity with plans and specifications agreed upon with the land-owner, can neither withdraw from the contract nor demand an increase in the price on account of the higher cost of labor or materials, save when there has been a change in the plans and specifications, provided:
(1) Such change has been authorized by the proprietor in writing; and
(2) The additional price to be paid to the contractor has been determined in writing by both parties.
(1593a)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
A contractor on a stipulated-price building contract cannot withdraw or demand a price increase for higher labor/material costs — except for changes authorized by the owner in writing with the added price agreed in writing.
Related provisions
- Article 1723 — Liability of Engineer/Architect/Contractor for Collapse.
- Article 1725 — Owner's Right to Withdraw.
Cases citing this article
- Licomcen, Inc. vs. Engr. Salvador Abainza, etc, G.R. No. 199781, February 18, 2013 — read the decision on LawPhil →
- Spouses Victoriano chung and Debbie Chung vs. Ulanday Construction, Inc, G.R. No. 156038, October 11, 2010 — read the decision on LawPhil →
- Leighton Contractors Philippines, Inc. vs. CNP Industries, Inc, G.R. No. 160972, March 9, 2010 — read the decision on LawPhil →
- Powton Conglomerate, Inc., et al. vs. Johnny Agcolicol, G.R. No. 150978, April 3, 2003 — read the decision on LawPhil →
- Metro Bottled Water Corporation vs. Andrada Construction & Development Corporation, Inc, G.R. No. 202430, March 6, 2019 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.