What is a contract for a piece of work? By the contract for a piece of work the contractor binds himself to execute a piece of work for the employer, in consideration of a certain price or compensation. The contractor may either employ only his labor or skill, or also furnish the material (Art. 1713). obligations of the contractor If he agrees to furnish the materials, such contractor shall deliver the thing produced to the employer as well as transfer dominion over the thing (Art. 1714). He shall execute the work in such a manner that it has the qualities agreed upon and has no defects which destroy or lessen its value or fitness for its ordinary or stipulated use (Art. 1715). He shall be responsible for the work done by persons employed by him (Art. 1727). RIGHTS OF THE CONTRACTOR To demand the payment of the agreed price or remuneration as well as the payment of the materials so furnished by him (Art. 1718). If the work is executed on movables, he has the right to retain it by way of pledge until he is paid (Art. 1731). LIABILITIES OF THE CONTRACTOR To be liable for all the claims of his laborers and others employed by him and of third persons for death or physical injuries during the construction (Art. 1728). To be liable for the hidden defects (Art. 1719). To be liable for damages if the building should collapse within 15 years owing to structural defects (Art. 1723). To be liable for damages in case of unreasonable withdrawal from the contract (Art. 1724). Problem 1: An engineer agrees to construct a residential house under the lump-sum contract of P2,000,000.00. While the building is nearing completion, it is destroyed by fire of unknown origin. Who suffers the loss? Answer to problem 1: The engineer or contractor. Basis: Art. 1717, Art. 1718 Problem 2: Engr. A undertook to construct for Dr. B a five-door apartment. For a consideration of P1,000,000.00. After Dr. B paid the contract price and after he accepted the apartment, Hardware C approached Dr. B and demanded payment of P50,000.00 representing the unpaid materials of Engr. A. Will such action of Hardware C, prosper? Answer to problem 2: No, such action will no longer prosper against Dr. B. Hardware C should direct his action against Engr. A for collection. Basis: Art. 1714, Art. 1729