REPUBLIC OF THE PHILIPPINES DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS REGION III ST PAMPANGA 1 DISTRICT ENGINEERING OFFICE Sindalan, City of San Fernando, Pampanga CONTRACT AGREEMENT FOR THE WIDENING/IMPROVEMENT OF MANILA NORTH ROAD INCLUDING DRAINAGE SYSTEM APALIT-SAN SIMON-STO. TOMAS, PAMPANGA KM. 53+186.50-KM.63+846.50 (INTERMITTENT SECTION), APALIT-SAN SIMON-STO. TOMAS, PAMPANGA KNOW ALL MEN BY THESE PRESENTS : This contract made and entered into this at City of San Fernando, Pampanga by and between day of , 2014 The Government of the REPUBLIC OF THE PHILIPPINES (Department of Public Works and Highways), with office address at Sindalan, City of San Fernando, Pampanga, represented by WILLIAM C. BUSTOS, OIC-Asst. District Engineer, hereinafter called the OWNER and the FIRST PARTY; and CHOLO CONSTRUCTION AND TRADING with office address at City of San Fernando, Pampanga, represented by SALVADOR V. MANALO , General Manager hereinafter called the CONTRACTOR and the SECOND PARTY. WITNESSETH WHEREAS, from among the twelve (12) bids submitted for the subject Project during the bidding held on April 3, 2014, the bid of CHOLO CONSTRUCTION AND TRADING was the lowest evaluated bid in the total amount of : THIRTY ONE MILLION FIVE HUNDRED EIGHTY SIX THOUSAND TWO HUNDRED THIRTY PESOS AND 00/100 ( P31,586,230.00) and therefore considered most advantageous to the Government; WHEREAS, the WORKS comprised in this Contract shall be completed within ONE HUNDRED FIFTY (150) calendar-days in accordance with the provisions of the Bid Documents; THIS AGREEMENT WITNESSETH as follows: 1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract hereinafter referred to. 2. The following documents shall be deemed to form and be interpreted and construed as part of this Agreement, viz: a) Proposed Book (Volume I of Bid Documents) containing the: (i) (ii) (iii) Instructions to Bidders: Bid Form, Appendices to Bid, Bid Schedule and Daywork Schedule Bill of Quantities containing the: 1 b) Preamble Work Items containing the Bid Prices Annexes to Bill of Quantities: Conditions of Contract (Volume II Bid Documents): (i) c) DPWH Standard Specifications, 2004 Edition Volume I: Requirements & Conditions of Contract (ii) Conditions of Contract: Part II – Conditions of Particular Applications Technical Specifications (Volume III of Bid Documents) (i) DPWH Standard Specifications for Public Works and Highways, 1995 Edition, Volume II – Highways, Bridges and Airports; Part I (ii) Supplemental Specifications and Special Provisions; Part II d) Plans/Drawings (Volume IV of Bid Documents); e) Applicable DPWH Department Orders (Volume V of Bid Documents) f) RA 9184 and its Implementing Rules and Regulations, Part A (RA 9184 with IRR-A) which repeals P.D. 1594 and its Implementing Rules and Regulations as amended 24 May and 05 July 2000 and Executive Order No. 40 and its Implementing Rules and Regulations, series of 2001. (Volume VI of Bid Documents) g) DOLE Department Order No. 13 Series of 1998, GUIDELINES GOVERNING OCCUPATIONAL SAFETY AND HEALTH IN THE CONSTRUCTION INDUSTRY, and the Article “SAFETY AND HEALTH MANAGEMENT”. (Volume VII of Bid Documents) h) Supplemental Notices/Addenda, if there are any during the Tender Period (Volume VIII of the Bid Documents); i) Annexes to the Bid: (1) Authority of the Signing Official(s); (2) Detailed Estimates; (3) Construction Schedule and S-Curve; (4) Construction Methods; (5) Contractor’s Project Organization Chart; (6) Manpower Schedule; (7) Equipment Utilization Schedule and duly executed Contract of Lease of all equipment and machinery intended for use exclusively for the Project not owned by the Contractor, if any; (8) Cash Flow by quarter and Payment Schedule; (9) Certification of Inspection of Site; j) Performance Security; k) Updated Credit Line issued by an authorized bank in an amount equal to the advance operating expenses of the Project for two (2) months or twenty percent (20%) of the total project cost, whichever is less; l) Notice of Award of Contract with the Contractor’s “Conforme” thereto; m) Duly approved Program of Work and Cost Estimates; n) Certificate of Availability of Funds; o) Approved Budget for the Contract; p) Abstract of Bids; q) Resolution of the BAC recommending award; r) Approval of Award by approving authority; s) Other pertinent documents required by existing laws. 3. Payment to be made by the OWNER to the CONTRACTOR shall be in the Philippine Currency; 4. In consideration of the payment to be made by the OWNER to the CONTRACTOR herein before mentioned, the CONTRACTOR hereby covenants with the OWNER to construct and complete the Works in conformity in all respects with the provisions of this CONTRACT. 5. The OWNER hereby covenants to pay the CONTRACTOR in consideration of the construction and completion of the WORKS at the unit prices appearing in the Bill of Quantities and in the manner 2 prescribed by the CONTRACT and specified in the BID. It is understood that the quantities listed in the PROPOSAL do not govern final payment, hence payment to the CONTRACTOR will be made only for actual quantities of contract items performed in accordance with the Plans and Specifications and accepted by the OWNER. WIDENING/IMPROVEMENT OF MANILA NORTH ROAD INCLUDING DRAINAGE SYSTEM APALIT-SAN SIMON-STO. TOMAS, PAMPANGA KM. 53+186.50-KM.63+846.50 (INTERMITTENT SECTION), APALIT-SAN SIMON-STO. TOMAS, PAMPANGA Item Number I. INCIDENTALS SPL I Description Quantity Unit Unit Cost Total Amount Const. Safety and Health 1.00 l.s. 84,672.00 84,672.00 SPL IA Project Billboard (DPWH) SPL IB Project Billboard (COA) 1.00 1.00 l.s. l.s. 6,050.00 8,115.00 6,050.00 8,115.00 SPL-2 Traffic Management 1.00 l.s. 193,585.27 193,585.27 SPL-3 Facilities for the Engineer 1.00 l.s. 241,920.00 241,920.00 SPL-4 Mobilization/Demobilization 1.00 l.s. 184,173.00 184,173.00 718,515.27 II. ROADWAY IMPROVEMENT Removal of Existing 101-A Asphalt/Conc. including Disposal 8,263.00 Sq.m. 141.35 1,167,975.05 102 Roadway Excavation 2,066.00 cu.m. 275.35 568,873.10 105 Sub Grade Preparation 8,263.00 Sq.m. 14.10 116,508.30 200 Aggt. Sub-Base Course 2,588.00 cu.m. 797.85 2,064,835.80 311 PCC Pavement (0.30 m. thk.) 8,263.00 Sq.m. 1,589.65 13,135,277.95 17,053,470.20 2,970.00 cu.m. 117,250.34 kgs. 938.00 cu.m. 275.20 57.15 6,712.20 817,344.00 6,700,856.93 6,296,043.60 13,814,244.53 31,586,230.00 II. CONSTRUCTION OF DRAINAGE 103 404 405 Structure Excavation Reinforce Steel Bar Grade 40 Structural Concrete Class (A) TOTAL >>> 6. The CONTRACTOR warrants that he has not given nor promised to give any money or gift to any employee of the OWNER (or any Philippines government instrumentality) to secure this Contract; 7. The CONTRACTOR shall comply with, and strictly observe all laws regarding workmen’s compensation for injuries, minimum wages, hours of labor, etc., and other labor laws; 8. Pursuant to RA 9184 and its Revised Implementing Rules and Regulations, which repeals PD 1594 and its Implementing Rules and Regulations, as amended and Executive Order No. 40 and its Implementing Rules and Regulations as amended. 9. This Agreement becomes valid and binding upon approval by the Secretary of Public Works and Highways in accordance with the provisions of RA 9184 and its Revised Implementing Rules and Regulations. 10. The CONTRACTOR shall pay taxes in full and on time and that failure to do so will entitle the Government to suspend payment for the services delivered by the private contracting party. 11. The CONTRACTOR shall likewise regularly present within the duration of the contract, a tax clearance from BIR as well as a copy of its Income and Business Tax Returns duly stamped and received by the BIR and duly validated with tax payments made thereon. 3 IN WITNESS WHEREOF, the parties hereto have hereunto set their respective hands on the date above written. REPUBLIC OF THE PHILIPPINES DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS CHOLO TRADING (PARTY OFTHE FIRST PART) BY: (PARTY OF THE SECOND PART) BY: CONSTRUCTION WILLIAM C. BUSTOS OIC-Asst. District Engineer SALVADOR V. MANALO General Manager NOMER ABEL P. CANLAS Administrative Officer V (Witness) ANTONIO J. SACDALAN (Witness) O.K. AS TO AVAILABILITY OF FUNDS: FELMA L. SANCHEZ Accountant III APPROVED: ENRICO S. GUILAS OIC-District Engineer / PM III 4 AND REPUBLIC OF THE PHILIPPINES) ____________________________) S.S ____________________________) ACKNOWLEDGEMENT BEFORE ME, as the Notary Public for and within the Province/City of San Fernando, Pampanga personally appeared, WILLIAM C. BUSTOS, OIC-Asst. District Engineer representing the REPUBLIC OF THE PHILIPPINES (Department of Public Works and Highways), with Passport No. XX4236108 and SALVADOR V. MANALO, General Manager, representing CHOLO CONSTRUCTION AND TRADING with Community Certificate No. ________ issued on _____________ at City of San Fernando, Pampanga known to me to be the same persons who executed the foregoing CONTRACT and AGREEMENT and they acknowledged to me that the same is their true act and deed for and in behalf of the parties they represented. This instrument consist of five (5) pages, including this page, on which this acknowledgement is written duly signed by the contracting parties and their witnesses on the left margin of the other pages. IN WITNESS WHEREOF, I have hereunto affixed my Signature and Official Seal this __ _ day of _____________, 2014. ___________________ (Notary Public) Doc. No. _________; Page No. _________; Book No. _________; Series of _________; 5