IMPLEMENTATION OF THE QUICK IMPACT

PROJECTS (QIP) under the COMPREHENSIVE

CAPACITY DEVELOPMENT PROJECT
for the BANGSAMORO (CCDP-B)

CONTRACT FOR CONSTRUCTION

Between

JAPAN INTERNATIONAL COOPERATION AGENCY

(JICA)PHILIPPINE OFFICE

and

(Contractor)

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

TABLE OF CONTENTS
Page
Article 1.

Definitions ................................................................................................................ 2

Article 2.

Scope of Work .......................................................................................................... 3

Article 3.

Period of Execution of the Work .............................................................................. 3

Article 4.

Amount of Contract .................................................................................................. 3

Article 5.

Payment .................................................................................................................... 3

Article 6.

Contractors Obligations........................................................................................... 4

Article 7.

Inspection and Delivery ............................................................................................ 5

Article 8.

Advance Payment Bond ........................................................................................... 5

Article 9.

Performance Bond .................................................................................................... 5

Article 10.

Period of Guarantee .................................................................................................. 6

Article 11.

Right of Assignment ................................................................................................. 6

Article 12.

Liquidated Damages ................................................................................................. 6

Article 13.

Force Majeure........................................................................................................... 7

Article 14.

Dispute and Arbitration ............................................................................................ 7

Article 15.

Language and Measurement System ........................................................................ 8

Article 16.

Amendment and Modification .................................................................................. 8

Article 17.

Early Termination ..................................................................................................... 8

Article 18.

Entire Agreement ...................................................................................................... 8

Article 19.

Notice ....................................................................................................................... 8

Page i

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

CONTRACT AGREEMENT
THIS AGREEMENT, made and entered into this ________________________, 2015 by and
between the JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) Philippine
Office, having its office at 40thFloor Yuchengco Tower RCBC Plaza, 6819 Ayala Ave., Makati
City,Philippines(hereinafterreferredtoastheClient),and_____________________________
(name of the Contractor), duly organized and existing under the laws of the Republic of the
Philippines, having its principal office of business at _______________________________
___________________________________________ (address of the Contractor), (hereinafter
referred to as the Contractor).

WITHESSETH:
Whereas, the Client is desirous of having the construction work for the Project carried
out, and the Contractor is willing to execute the work on the terms and conditions as set forth in
this Contract;
Whereas, the Contractor, having submitted a tender that satisfies all the conditions in the
tender documents with the lowest tender price, which is within the ceiling price set forth by the
Client, among the Bidders, that were invited by the Client, agreed to sign the Contract for the
Project and is willing to execute the work under the terms and conditions set forth in this
Contract;
Now therefore, in consideration of the mutual covenants hereinafter contained, the
parties agree as follows:

Page 1 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

ARTICLE 1. DEFINITIONS
In interpreting or constructing this Contract, the following expressions shall have the meanings
hereby assigned to them except where the context otherwise requires:
The Project means the Quick Impact Projects (QIP) under the Comprehensive Capacity
Development Project for the Bangsamoro (CCDP-B).
The Client means Japan International Cooperation Agency (JICA) Philippine Office and shall
include any person or persons authorized by Japan International Cooperation Agency Philippine
Office.
The Work means the construction work of the Project as described in Article 2.
The Contractor means the lowest calculated responsive bidder and shall include any person
and persons authorized by the said company.
The Contract Documents means the documents consisting of the following:
This Contract Agreement
Bid Form & BOQ of the Successful Bidder
Conditions of Contract
Technical Specifications
Drawings
Construction, Manpower & Equipment Utilization Schedules
Construction Methodology
Organizational Chart
Curriculum Vitae of Proposed Project Manager, Civil Engineer, Structural Engineer,
Architect, Site Engineer and Foreman, indicating among others the projects where the
said proposed personnel were involved, including affidavit of commitment that they
would be available for the Project.
(j) Cash Flow and Payment Schedules
(k) Instruction to Bidders and such other documents intended to form the Contract
(l) All addenda and questions and replies issued prior to the Tender
(m) All minutes of meetings as agreed between the parties hereto before execution of the
Contract
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)

The End-User means the Peoples Organization (PO) of the Barangay or municipality where
the site is located, and the school administration in case of the school building. The PO shall
include any person or persons authorized by the BDA Regional Management Office (RMO)..
The Engineer means the Engineering Firm contracted by JICA-CPO for this project.
Supervisor means the Staff nominated by JICA-CPO.

Page 2 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

ARTICLE 2. SCOPE OF WORK

2.1

The Contractor shall undertake the construction of the Project for the Client in accordance
with the Drawings and Technical Specifications prescribed in the Contract Documents.
The work to be done under this Contract shall include the furnishing by the Contractor of
all labor, materials, equipment and supplies and the performance by the Contractor of all
operations necessary for the completion of the Project all in strict compliance with the
terms and conditions of this Contract.

2.2

The QIP under the CCDP-B will involve the complete construction of:1) Multi-Purpose
Hall, 2) Schools, and 3) Warehouse with Solar Dryer, as chosen by the Peoples
Organizations during the Community Assemblies. Construction period is planned at
present to be about 90 Calendar Days(CD) for Packages 1 & 2,105 CD for Packages 3, 4
& 5 and 120 CD for Package 6, respectively. All works include but not limited to:
(1) All Preliminaries to include mobilization and demobilization, construction of
temporary facilities and other works required in general requirements;
(2) All earthworks to include excavation, embankment, backfilling and compaction
necessary for site development; and
(3) Complete construction of the building and facilities under the Package.

ARTICLE 3. PERIOD OF EXECUTION OF THE WORK

3.1

The Contractor shall commence the Work upon signing of this Contract by the Client.

3.2

The Contractor shall complete the Work as stipulated in Article 2. The Contractor shall
commence the Work by March 6, 2015 and shall be completed not later than June 3, 2015
for Package 1 & 2, June 18, 2015 for Package 3, 4, & 5, and July 3, 2015 for Package 6.
However, when extension of the period of execution of the Work is necessary for causes
beyond the control and responsibility of the Contractor and the Client, the extension of
the term of this agreement shall be negotiated and agreed in writing between the two
parties.

ARTICLE 4. AMOUNT OF CONTRACT

4.1

As consideration for the full and faithful performance and accomplishment of all
obligations that the Contractor agrees to undertake, perform and accomplish under this
Contract, the Client shall pay the Contractor the Contract Price of Philippine Peso
______________________________ (P _________), which are inclusive of all
applicable taxes, representing the Works.

ARTICLE 5. PAYMENT
5.1

The Client shall, as promptly as possible after verification of the Contractors payment
request duly accomplished in accordance with the Contract requirements, make payments
to the Contractor as stipulated in Article 5.2.

Page 3 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

5.2

Payment Schedule

Advance Payment
The Client upon the Contractors request, shall provide an Advance Payment not
exceeding
Philippine
Peso
______________________________
(P_________________) which corresponds to forty percent (40%) of the contract
price, provided that the Contractor submits an Advance Payment Bond as described in
Article 8, and provided also that the Advance Payment Bond shall remain in force
thirty (30) days after the end of contract period.

Final Payment
The balance of the Contract Price shall be paid within fourteen (14) calendar days by
the Client to the Contractor upon completion of the Works, duly certified by the
Engineer, and upon submission of the following documents to the Client:
(a) Work Completion Report with Certificate of Completion from the Engineer; and
(b) The Contractors payment request together with a Guarantee Bond as described in
Article 10.

ARTICLE 6. CONTRACTORS OBLIGATIONS

6.1

The Contractor shall perform the Works in accordance with the Contract Documents and
the provisions of the Scope of Work.

6.2

The Contractor shall prepare shop drawings, working drawings, progress schedules and
other technical documents as required by the Engineer.

6.3

The Contractor shall submit to the Client and the Engineer a detailed construction
program within seven (7) days after the date of signing of this Contract by the Client.

6.4

The Contractor shall submit to the Client and the Engineer the list of sources of materials
and equipment, which the Contractor proposes to purchase or utilize for the Works.

6.5

The Contractor shall be responsible for the construction methods, techniques, sequences
or procedures, and for safety precautions and programs in connection with the Works.

6.6

The Contractor shall be responsible for the acts or omissions of the subcontractors, or any
of the Contractors agents or procedures.

6.7

The Contractor shall deploy one (1) project/site engineer on a full-time basis at the site
with sufficient power to execute the Works at the Project site.

6.8

The Contractor shall bear the handling costs, custom clearance charges, storage charges
and internal transportation expenses related to the import of the materials and the
equipment for the Works.

6.9

The Contractor shall, at its own expense, take necessary measures, in accordance with the
Contract Documents and relevant laws, ordinances and regulations, to prevent damage to
the Works, construction materials, adjacent structures or a third party, until the completion
and delivery of the Works.

Page 4 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

6.10

The cost of stamps, duties and similar charges (if any) imposed by law in connection with
entries into the Contract Agreement, including the cost of notarization of the Contract,
shall be borne by the Contractor.

ARTICLE 7. INSPECTION AND DELIVERY

7.1

Upon completion of the Works, The Contractor shall request the final inspection by the
Engineer, or his assistant who will then be assisted by the Supervisor in undertaking the
said inspection.

7.2

When the Works have passed the final inspection of the Engineer or his assistant, with the
Certificate of Completion issued by him, the Works shall be turned over to the Peoples
Organization (PO), and to the school administration in case of school building.

7.3

The ownership of the Project facilities shall be transferred to the PO at the time of the
turnover.

ARTICLE 8. ADVANCE PAYMENT BOND

8.1

The Client upon the Contractors request, shall provide an Advance Payment, within
fourteen calendar (14) days upon receipt of the Contractors Request for Advance
Payment not exceeding Philippine Peso _____________________________ (P_______)
which corresponds to forty percent (40%) of the Contract Price, provided that the
Contractor submits an Advance Payment Bond equivalent to the amount of Advance
Payment to be made.

8.2

The Advance Payment Bond shall be in the form of Bank Guarantee, issued by a
commercial bank or Surety Bond issued by any reputable surety or insurance company.
The advance payment bond must be valid until thirty (30) days after the end of the
contract.

ARTICLE 9. PERFORMANCE BOND

9.1

Upon signing this Contract, the Contractor shall provide a Performance Bond amounting
to Philippine Peso ________________________________
(P____________) which
corresponds to ten percent (10%) of the Contract Price in case of Bank Guarantee, or
Philippine Peso ____________________________________ (P________________)
which corresponds to thirty percent (30%) of the Contract Price in case of Surety Bond,
within Five (5) calendar days upon signing of the Contract.

9.2

The Performance Bond shall be in the form of Bank Guarantee, issued by a commercial
bank or Surety Bond issued by any reputable surety or insurance company.

9.3

The Performance Bond shall be valid for the period from the date of its signing until the
date of submission of the Guarantee Bond.

9.4

The Performance Bond shall be posted in favor of the Client, and shall be forfeited in
favor of the Client in the event it is established that the Contractor is in default of its
obligations under the contract.

Page 5 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

9.5

In case the Contractor will fail to complete the Works on the date of completion as set
forth in the Contract, by reasons other than special and expected risks, adverse site
conditions or other special circumstances for which suspension or extension of time for
completion of the Works is allowed under the Contract, then the costs and damages
sustained by the Client as a result of such failure of the Contractor shall be determined by
mutual agreement between the Engineer and the Supervisor and paid from this bond.

ARTICLE 10. PERIOD OF GUARANTEE

10.1

The period of guarantee against any defects in the Works shall be twelve (12) months
from the date of issuance of the Certificate of Completion.

10.2

The Contractor shall furnish a Guarantee Bond amounting to Philippine Pesos

_________________________ (P__________) which corresponds to five percent (5%) of
the Contract Price in case of Bank Guarantee, or amounting to Philippine Peso
________________________ (P_________) which corresponds to ten percent(10%) of
the Contract Price) in case of Surety Bond form in exchange of the Final Payment.

10.3

The Guarantee Bond shall be in the form of Bank Guarantee issued by a first-class bank
or Surety Bond issued by any reputable surety or insurance company acceptable to JICA.

10.4

The Guarantee Bond shall be posted in favor of the Client, and shall be forfeited in favor
of the Client in the event it is established that the Contractor is in default of its obligations
under the Contract.

10.5

The Client shall notify the Contractor in writing of any defects for which a claim is made
under this guarantee as soon as discovery thereof. The Clients written notice shall
describe the nature and extent of defects. The Contractor shall have no obligation for any
defects discovered beyond the period of guarantee, unless notice of such defects is
received by the Contractor not later than seven (7) calendar days after the period of
guarantee has expired.

10.6

The Contractor shall remedy, at its own expense, any defects against which the work is
guaranteed under this Article by making all necessary repairs or replacement except in
case that such defects are a result of the Engineer or End Users negligence or failure. A
report that the repair has been accomplished should be submitted to JICA.

ARTICLE 11. RIGHT OF ASSIGNMENT

11.1

Neither the Client nor the Contractor shall assign or otherwise dispose of this Contract or
any rights or obligations to any third party without the written consent of the other party.

ARTICLE 12. LIQUIDATED DAMAGES

12.1

If the Contractor fails to complete the Work within the time specified in this Contract or
any extensions thereof, the Contractor shall pay to the Client as liquidated damages at the
close of business on each day of delay, an amount equivalent to one tenth (1/10) of one
percent (1%) of the Contract Price. Liquidated damages shall be automatically deductible
from any amount due and payable to the Contractor under this Contract.

Page 6 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

ARTICLE 13. FORCE MAJEURE

13.1

Neither Party shall be deemed to be in default nor in breach of the Contract if it is unable
to perform its obligations under the Contract owing to circumstances beyond its
reasonable control. Such circumstances (hereinafter to as Force Majeure) include but
shall not be limited to the following:
(a) Act of God, including storm, earthquake, flood or any other such operation of the
force of nature as its reasonable foresight and ability could not foresee or reasonably
provide against.
(b) War (declared or undeclared), hostilities, invasion, act of any foreign enemy, threat of
or preparation for war, riot, insurrection, civil commotion, rebellion, revolution,
usurped power, civil war and labor troubles or other industrial troubles, strikes,
embargoes, blockages, sabotage by persons other than the Contractors persons and
other employees of the Contractor and subcontractors.

13.2

Monetary Obligations - Notwithstanding the foregoing, the occurrence of Force Majeure

shall not prejudice nor otherwise affect either partys liability to pay remuneration or
reimbursement of expenses to which the other party is entitled on or before the date of the
occurrence.

13.3

Notice - The party shall give the other party a written detailed account of the
circumstances of the Force Majeure as soon as practicable, but not later than fourteen(14)
days from the occurrence.

13.4

Expatriate Staff - In the event that Force Majeure is likely to endanger the safety of any
expatriate staff of the Contractor, they shall be allowed to leave the site and or office,
giving at least twenty-four (24) hours notice to the Engineer.

13.5

Suspension and Termination - Upon the occurrence from the Client, the party affected
may be allowed to temporarily suspend the performance of its duties under the contract
for so long a period as Force Majeure continues and as its performance is prevented
thereby. In such instance, it shall make all reasonable efforts to mitigate the effect of
Force Majeure upon its duties. When it cannot resume the performance of its duties, in
spite of such efforts, within a cumulative period of sixty (60) days of the suspension,
either party may be entitled to terminate the Contract without prejudice.

ARTICLE 14. DISPUTE AND ARBITRATION

14.1

This Contract shall be executed by the parties hereto in good faith, and in case any
doubtful point is raised or any dispute concerning the interpretation or performance of this
Contract, such matter shall be settled through the consultation of the parties.

14.2

In the event that an amicable settlement cannot be reached through consultation, the
matter shall be finally settled thru arbitration. The arbitration shall be conducted by three
arbitrators, of whom one shall be appointed by the Client, another by the Contractor and
the last by the said two arbitrators.

14.3

The place of arbitration shall be held at the United Nations Commission on International
Trade Law (UNCTRAL) Office in Japan.

Page 7 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

14.4

The arbitral award shall be final and binding upon the parties hereto and the parties shall
comply in good faith with the decision. Judgment upon the award may be entered in any
court having jurisdiction or application may be made, to such court for juridical
acceptance of the award or order of enforcement as the case may be.

14.5

Each party shall bear the costs of his own arbitrators services and an equal share of the
costs for the 3rdarbitrator.

ARTICLE 15. LANGUAGE AND MEASUREMENT SYSTEM

15.1

All correspondence between the two parties including notices, requests, consents, offers
or demands shall be made in English. All drawings, specifications, reports and other
documents shall also be prepared in English.

15.2

All documents made under this Contract shall adopt the metric system and days shall be
calendar days.

ARTICLE 16. AMENDMENT AND MODIFICATION

16.1

Any amendment or modification, if necessary, may be negotiated between the parties

hereto and shall be agreed by a written document signed by both parties.

ARTICLE 17. EARLY TERMINATION

17.1

Should the Contractor default in the execution of his obligations under this Contract, the
Client shall give the Contractor a notice in writing to remedy such default promptly.

17.2

Failure of the Contractor to take corrective measures as required by the Client within
thirty (30) days upon receipt of such notice shall constitute a sufficient cause for the
Client to terminate this Contract.

ARTICLE 18. ENTIRE AGREEMENT

18.1

These Contract Documents contain the entire agreement between the parties in respect of
the subject matter hereof and supersede and cancel any and all previous agreements,
negotiations, commitments, and writings in respect of the subject matter hereof.

ARTICLE 19. NOTICE

19.1

All notices pertaining to this Contract between the Client and the Contractor shall be sent
in writing by registered air mail, telegraph, telex, facsimile, or be handed to the addresses
so stated herein. In case either party hereto changes the address, the party concerned shall
give such notice to the other party beforehand. Time of any notice shall start on the day of
deposit of such a notice, in the post office of the sender.

Page 8 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

THECLIENT:
Name

JAPANINTERNATIONALCOOPERATIONAGENCY
(JICA)PHILIPPINE OFFICE

Address

40th Floor, Yuchengco Tower RCBC Plaza, 6819 Ayala Avenue, Makati City,
Philippines

Telephone :

(02) 889-7119

Facsimile

(02)889-6871

THE CONTRACTOR:
Name

Address

Telephone :
Facsimile

IN WITNESS WHEREOF, the parties, through their respective representatives, have

hereunto affixed their signature on this______________________
at the City of Makati, in
their respective names in duplicate, each party retaining one (1) copy thereof.

The Client:

The Contractor:

NORIAKI NIWA
Chief Representative
JICA Philippine Office

Page 9 of 10

Quick Impact Project (QIP) under the

Comprehensive Capacity Development Project for the Bangsamoro (CCDP-B)

ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES )
) S.S

BEFORE ME, a Notary Public in ______________ and for this day of

___________________ personally appeared:

________________________, duly authorized representative of Japan International

Cooperation Agency (JICA) Philippine Office with CTC No. _________ issued in
_______________ on ______________; and
________________________, duly authorized representative of ________________
_____________________________________________ with CTC No. _________ issued in
_______________ on ______________
both known to me to be the same persons who executed the foregoing instrument relating to the
project for the IMPLEMENTATION of the QUICK IMPACT PROJECTS (QIP) under the
COMPREHENSIVE CAPACITY DEVELOPMENT PROJECT for the BANGSAMORO
(CCDP-B), and they both acknowledged before me that they signed the same freely and
voluntarily.
I CERTIFY that the foregoing consists of ____ pages including this one on which this
acknowledgement is written and that it was signed by the parties and their instrumental witnesses
at the bottom thereof and on the left hand margin of all the other pages.
WITNESS my hand and seal on this ___ day of 2015, Philippines.

NOTARY PUBLIC

Doc. No. : ____________

Page No. : ____________
Book No. : ____________
Series of 2015

Page 10 of 10