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This CONTRACT made and executed this day of 2013 in the City of San
Carlos by and between:
-and-
WITNESSETH:
Whereas, the owner desires to PROPOSED MAUSELEUM located at San Carlos City, Pangasinan
hereinafter to as the PROJECT.
Whereas, the CONTRACTOR has presented and warranted itself as capable and duly licensed to construct
aforementioned project in accordance with the plans and specifications as set forth in this contract.
Whereas, on the basis of the above-mentioned representation and warranty of the aforesaid PROJECT.
Now, therefore, for and in consideration of the foregoing premises and the above covenants and
undertaking herein after set forth, the parties hereto agree as follows:
The CONTRACTOR shall perform all works required to complete the PROJECT.
The following shall be the scope of work: See attached annexes for details.
SCOPE OF WORK
It is agreed that the time is an essential elemet of this contract and therefore the project must
be fully completed within FORTY FIVE (45) working days excluding holidays and Sundays commencing
from date of release of downpayment . Otherwise, the CONTRACTOR must pay the OWNER the amount
of FIVE HUNDRED THOUSAND PESOS (P .5 M) or 1/10 of 1% of the Contract Price for each and everyday
of delay incurred except those caused by Force Msajeure and/or additional works not included in this
contract. It is mutually understood that the same penalty shall also imposed for delay incurred during
jobsite commitments.
The OWNER shall pay the CONTRACTOR for the entire performance of the work, herein, in the
manner provided under Art. 5, the amount of FIVE HUNDRED THOUSAND PESOS (P .5M)
in Philippine Currency exclusive of Value Added Tax. The CONTRACTOR guarantees that for the
performance of the PROJECT, the contract price is fixed considering the cost of labor, equipment, tools,
and supervision and shall remain unchanged notwithstanding any increase of minimum wage effective
during the effectivity of the contract. Sudden devaluation shall not in any way affect the contract price as
herein agreed upon.
The OWNER shall pay the CONTRACTOR fifteen percent (40%) down payment, while the
remaining balance shall be paid in progress billing. For this purpose, a written report showing work
accomplished for the duration of ninety (45) working days with a request for payment shall be submitted
by the CONTRACTOR for the evaluation and approval by the OWNERS representative.
Upon submission by the CONTRACTOR of the written request for payment, OWNERS
representative has to evaluate the work within a period of five (5) days from the date of request.
Payment for the CONTRACTOR shall be made upon approval by OWNERS representative on the work
accomplished.
1. The owner , upon certification of OWNERS representative that sufficient cause exists to
justify its action, may without prejudice to any other right or remedy and after giving the
CONTRACTOR and its surety if any, fifteen days (15) written notice, terminate the
contract with the CONTRACTOR and take possession of the premises and finish the work
by whatever method it may deem expedient. Sufficient cause to justify termination of
the CONTRACT shall be deemed to exist whenever the CONTRACTOR commits any of the
following:
a. Declares bankruptcy, becomes insolvent, or assign his asset for the benefit of his
creditors.
b. Disregards or violates provisions of the CONTRACT Documents or Architects
instructions or fail to execute the work according to the agreed Schedule of
Completion, including extension thereof.
c. Fails to provide a qualified superintendent, competent workmen, or sub-
contractors.
2. This contract may be terminated by the OWNER in case of strike of labor unrest by
Contractors employees.
Upon the termination of the contract the OWNER shall, have the right to retain and withhold any
payments that may due or owing to CONTRACTOR, as penalty for the breach committed by the
CONTRACTOR in addition to whatever rights and actions the OWNER may have against the CONTRACTOR
and its surety.
Upon receipt of written notice from the CONTRACTOR that the work is ready for final inspection
and acceptance, the OWNER shall promptly make such inspection.
The final Certificate shall issued unless upon final turn-over. Completion and Final turn-over shall
mean that:
If any work shall be found to be defective and/or not in conformity with the specifications, the
CONTRACTOR shall forthwith rectify the same upon demand by the OWNER within the period prescribed
by the OWNER. In case the repair shall exceed the prescribed period, the CONTRACTOR shall be deemed
to have been in default, in which case Art. 3 of this contract shall apply.
This provision is without prejudice to Article 1723 of the Civil Code of the Philippines which is
hereby incorporated as part of this CONTRACT.
The CONTRACTOR sahll hold free harmless the OWNER shall indemnify the same against all
claims such as but not limited damages, loss or injury suffered by OWNER, its stockholders, officers,
employees, representatives or any third party arising from performance of the PROJECT and from the
execution of this agreement.
The CONTRACTOR shall solely responsible for whatever claims third parties may have arising
from or in connection with the project. Such claim includes but not limited to:
Wages, overtime pay, compensation to laborers or to third parties for injuries or death, SSS, Premium
etc. All expenses that may be incurred in relation to these claims shall be for the exclusive account of the
CONTRACTOR.
In the event, any of the employees of the CONTRACTOR file a labor case involving violation of
the labor laws and related laws while the construction is on-going, OWNER shall have the right to retain
and withhold such amounts owing to the CONTRACTOR, as may be necessary to protect itself from any
liability, solidarity or otherwise. The said amount shall be released only upon the dismissal of the case
with finality less whatever claims for the damages by the OWNER persuant to the first paragraph of this
article.
The OWNER shall not be held liable for whatever damages that may be caused to the adjacent
structures or its perimeters by reason of the construction of work. In this regard, the CONTRACTOR shall
be solely answerable for whatever claims of the OWNERS of the adjacent structures or to any third party.
CONTRACTOR hereby warrants that it shall hold OWNER free from any liability or any other liens
over the constructed artifice, in favor of labor or other third parties.
Should OWNER, upon written notice to the CONTRACTOR, orders change or deviation from the
plan or specification either by changing, omitting or adding works, the corresponding charges for
additive or deductive works shall be based on the unit cost submitted by the CONTRACTOR to the
OWNER, whereas the additive cost shall add 10% of the unit price and the deductive cost shall less 10%
of the unit price.
ARTICLE 11: SAFEGUARD
The CONTRACTOR shall provide its own company identification cards and uniform (color-coding
is provided in the specification) for all persons employed by him who will be working within the premises
of the construction site.
The CONTRACTOR shall provide safeguard and other facilities for the protection of the OWNER
and public.
The CONTRACTOR shall be responsible for and shall bear all costs and expenses caused by losses,
damages, fire injuries (including death at time resulting there from) or damages to the OWNERS
property, CONTRACTORS personnel, and third party accidentally and/or intentionally sustained by any
person in connection with the execution of work covered by this Contract.
The CONTRACTOR shall fully and solely be responsible in abiding with the government Agencies
rules and regulations. Any violation shall be accounted with the CONTRACTOR.
The CONTRACTOR guarantees all works after completion of the project for one (6) months from
the date of the final acceptance. All defects within said guaranteed periods shall be replaced and made
good by the CONTRACTOR at his own expenses, without prejudice to the provisions of Article 8, first part
and Article 3 of this contract.
The parties here to agree that during the effectivity of this agreement, the cost of labor and the
price of the materials to be supplied by the CONTRACTOR shall not be subject to any price escalation
notwithstanding any provision in the Labor Code or wage increase to the contrary and regardless of any
supervening inflation or devaluation of the Philippine Currency as declared by the Central Bank of the
Philippines.
All lighting and other consumption of electrical power and water in the construction premises
shall be at the expense of the CONTRACTOR. In view thereof, separate meters to monitor
CONTRACTORS electric and water consumption.
MISCELLANEOUS PROVISIONS
All corresponding and notices by one party to other shall be in writing and delivered either in
person or by registered mail to the concerned partys address as specified in this contract, unless a
change of address is given writing.
Should any of the parties be compelled to seek judicial relief against the other for violation of
the terms and conditions of the Contract, the action shall be exclusively brought to the proper courts.
Nothing contained in this Contract shall create or be constructed as creating partnership, joint
venture or any other contractual relationship between the CONTRACTOR and OWNER that is not
stipulated or contemplated under this contract or which would create employer-employee relationship
between the CONTRACTOR or CONTRACTORS employees and that of the OWNER.
This Contract shall be valid, binding upon the parties, their administrator, and successors-in-
interest.
IN WITNESS WHEREOF, the parties have hereto have executed this CONTRACT the day and year first
mentioned above.
By: By:
ACKNOWLEDGEMENT
Before ME, a Notary Public for and in the City of San Carlos, this day of Sept. 2013
personally appeared:
CORAZON Q. LEYVA
Who acknowledge to me that the foregoing Contract is their free and voluntary act and deed.
This instrument consists of seven (7) pages, with annexes including this page, and was signed by
the parties and their instrumental witnesses.
WITNESS MY HAND AND SEAL.
NOTARY PUBLIC
Doc. No.
Page No.
Book No.
Series of 2013