Engineer III (Witness) Engineer III (Witness) BAC Chairman Admin. Officer V (Witness) CONTRACT AGREEMENT FOR THE PACKAGE VII- CONSTRUCTION OF 2 TYPE 3- SEATER TOILET DETACHED W/ WASHING AREA FACILITIES CONSTRUCTION OF WATER & SANITATION FACILITIES @ A. MANGALIT ELEMENTARY SCHOOL, BRGY. MANGALIT MABT., PAMP. B. SAPANG BIABAS NATIONAL HIGH SCHOOL, BRGY. SAPANG BIABAS, MABT., PAMP. C. MAWAQUE RESS. HIGH SCHOOL, BRGY. MAWAQUE, MABT., PAMP. D. MABALACAT TECHNICAL HIGH SCHOOL, MABALACAT, PAMPANGA E. MABALACAT TECHNICAL VOCATIONAL SCHOOL, MABALACAT, PAMPANG F. DAPDAP ELEMENTARY SCHOOL, BRGY. DAPDAP, MABT., PAMP. G. SAN FRANCISCO ELEMENTARY SCHOOL, BRGY. SAN FRANCISCO MABT., PAMP. H. MABIGA ELEMENTARY SCHOOL, BRGY. MABIGA, MABT. PAMP. VARIOUS SCHOOLS IN MABALACAT, PAMPANGA KNOW ALL MEN BY THESE PRESENTS: Accountant III This contract made and entered into this 7th Day of October 2013 at City of Angeles, Pampanga by and between. The Republic Of The Philippines (Department Of Public Works And Highways) represented herein by ORVILL S. GAMBOA-OIC-Asst. District Engineer, with office address at San Francisco St., Angeles City, as the PARTY OF THE FIRST PART, hereinafter called the EMPLOYER duly authorized for this purpose, and ORVILL S. GAMBOA OIC-Asst. District Engineer Owner/Contractor AGNES D. MACASAQUIT EDUARDO T. SANTOS By: Party of the Second Part Republic of the Philippines Department of Public Works and Highways By: Party of the First Part EDUARDO T. SANTOS CONSTRUCTION SUPPLIES O.K. AS TO AVAILABILITY OF FUNDS: LOLITO M. DIZON CARMELITA C. ROMERO CELESTINO M. POLINTAN 1 EDUARDO T. SANTOS CONSTRUCTION SUPPLIES a corporation duly organized and existing by virtue of the laws of the Republic of the Philippines with office address at San Vicente, Bacolor, Pampanga represented by EDUARDO T. SANTOS Owner/Contractor, has been authorized for this purpose as the PARTY OF THE SECOND PART hereinafter called the CONTRACTOR, WITNESSETH WHEREAS, the EMPLOYER is desirous that the certain WORKS should be executed by the CONTRACTOR, viz: EDUARDO T. SANTOS CONSTRUCTION SUPPLIES and has accepted the Bid of the CONTRACTOR for the execution and completion of such WORKS and the remedying of any defects therein; WHEREAS, the above-mentioned project has been undertaken through Competitive Public Bidding; WHEREAS, the total amount of award for completion of the WORKS is TWO MILLION SIX HUNDRED FOUR THOUSAND NINE HUNDRED TWENTYNINE PESOS & 67/100 ONLY (P 2,604,929.67). Engineer III (Witness) WHEREAS, the whole WORKS in this PROJECT as covered by this CONTRACT shall be completed within SIXTY(60)–days in accordance with the provisions of the Bid documents. NOW THIS AGREEMENT WITNESETH AS FOLLOWS: Engineer III (Witness) 1. That in this Contract Agreement, words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract hereinafter referred to. 2. That the following documents shall be deemed to form and be read and construed as part of this Agreement, viz: a). The Bid Form accomplished and submitted by the Contractor including the following annexes: Accountant III Authority of the Signing Official Bid Prices in the Bill of Quantities Detailed Estimates Construction Schedule & S-Curve Construction Methods Project Organizational Chart Person power Schedule List of Contractor’s Personnel Equipment Utilization Schedule List of contractor’s equipment units Bid Security Construction Safety and Health Program Cash Flow and Payment Schedule Certificate of Site Inspection Supplementary PQ Statement per D.O. # 8 s. 1991 Contract Agreement Conditions of Contract; i.e., the DPWH Standard Specifications; 1988, Vol. 1, & DPWH Standard Specifications 2004, Vol. II, Highways, Bridges and Airports d.) Drawing /Plans e.) Invitation to Bid f.) Specifications g.) Instructions to Bidders h.) Addenda i.) Performance Bond j.) Post qualification Statements k.) Certificate of Cash for Operating Expenses l.) Notice of Award to Contractor and Contractor’s Conforme thereto m.) Other pertinent documents as may be required Asst. District Engineer Owner/Contractor EDUARDO T. SANTOS AGNES D. MACASAQUIT BAC Chairman Admin. Officer V (Witness) i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. b.) c.) ORVILL S. GAMBOA OIC-Asst. District Engineer Republic of the Philippines Department of Public Works and EDUARDO T. SANTOS CONSTRUCTION SUPPLIES Highways By: Party of the Second Part By: Party of the First Part O.K. AS TO AVAILABILITY OF FUNDS: LOLITO M. DIZON CARMELITA C. ROMERO CELESTINO M. POLINTAN 2 3. That in consideration of the Payment to be made by the EMPLOYER to the CONTRACTOR as hereinafter mentioned, the CONTRACTOR hereby covenants with the EMPLOYER to execute and complete the WORKS and remedy any defects therein in conformity in all respects with the provisions of this CONTRACT. Engineer III (Witness) PACKAGE VII- CONST. OF 2 TYPE 3- SEATER TOILET DETACHED W/ WASHING AREA FACILITIES CONST. OF WATER & SANITATION FACILITIES @ A. MANGALIT ELEMENTARY SCHOOL, BRGY. MANGALIT MABT., PAMP. B. SAPANG BIABAS NATIONAL HIGH SCHOOL, BRGY. SAPANG BIABAS, MABT., PAMP. C. MAWAQUE RESS. HIGH SCHOOL, BRGY. MAWAQUE, MABT., PAMP. D. MABALACAT TECHNICAL HIGH SCHOOL, MABALACAT, PAMPANGA E. MABALACAT TECHNICAL VOCATIONAL SCHOOL, MABALACAT, PAMPANG F. DAPDAP ELEMENTARY SCHOOL, BRGY. DAPDAP, MABT., PAMP. G. SAN FRANCISCO ELEMENTARY SCHOOL, BRGY. SAN FRANCISCO MABT., PAMP. H. MABIGA E/S, BRGY. MABIGA, MABT. PAMP. VARIOUS SCHOOLS IN MABALACAT, PAMPANGA Owner/Contractor ORVILL S. GAMBOA OIC-Asst. District Engineer EDUARDO T. SANTOS Accountant III Engineer III (Witness) AGNES D. MACASAQUIT CARMELITA C. ROMERO BAC Chairman Admin. Officer V (Witness) By: Party of the Second Part O.K. AS TO AVAILABILITY OF FUNDS: Republic of the Philippines Department of Public Works and Highways By: Party of the First Part EDUARDO T. SANTOS CONSTRUCTION SUPPLIES 4. That the EMPLOYER hereby covenants to pay the CONTRACTOR in consideration of the execution and completion of the WORKS at the unit prices agreed in the TENDER, at the time in the manner 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 EMPLOYER. LOLITO M. DIZON CELESTINO M. POLINTAN 3 Item Number Description I II III IV V VI VII VIII IX X XI XII XIII XIV XV General Requirements Earthworks Conc. Works RSB Works Form Works Masonry Works Door & Windows Steel Works Roofing Works Carpentry Works Electrical Works Plumbing Works Sanitary Works Painting Works Tile Works Quantity 1.00 225.24 85.50 4,262.13 8.00 945.00 39.69 1.00 153.00 153.00 1.00 1.00 1.00 1.00 495.00 TOTAL Unit l.s cu.m cu.m kgs. sq.m sq.m sq.m l.s sq.m sq.m l.s l.s l.s l.s sq.m Unit Cost 68,300.00 157.01 4,222.22 50.00 10,112.50 320.00 3,400.08 295,400.00 1,519.00 685.00 73,900.00 250,500.00 118,900.00 77,800.00 515.55 Total Amount 68,300.00 35,364.93 360,999.81 213,106.50 80,900.00 302,400.00 134,949.18 295,400.00 232,407.00 104,805.00 73,900.00 250,500.00 118,900.00 77,800.00 255,197.25 2,604,929.67 5. The provisions of Republic Act. 9184 and other existing laws, decrees, executive and administrative orders, circulars issued by proper authorities affecting government construction projects shall be made and formed as Integral part of the Contract. 6. That this CONTRACT shall not take effect until the CONTRACTOR has furnished and delivered to the EMPLOYER a Performance Bond that is fully acceptable to the EMPOYER in the form and amount as required in the instructions to Bidders. 7. In case the CONTRACTOR refuses or fails to satisfactorily complete the work within the specified contract time, plus any time extension duly granted and is hereby in default under the CONTRACT, the CONTRACTOR shall pay the GOVERNMENT for liquidated damages, and not by way of penalty, an amount to be determined for each calendar day of delay, until the work is completed and accepted or taken over the Government. TLD=VUUPx [(1+OCC)ⁿ-1]x K Engineer III (Witness) VUUP=TCP-VCUP WHERE: TLD = Total Liquidated Damages, In Pesos VUUP = Value of the uncompleted and unusable portions of the contract work as of the expiry date of the contract, in pesos TCP = Total Contract Price, In Pesos VCUP = Value of the completed and usable portion of the contract work, as the Expiry date of the contract, in pesos OCC = prevailing opportunity cost of capital for government projects set by NEDA, which is currently pegged at 15% n = k = = total number of years that the contract work is delayed after the expiry date of the contract adjustment factor to cover additional losses 1+C+(l x n) LOLITO M. DIZON BAC Chairman Admin. Officer V (Witness) Accountant III C = i = cost of construction supervision as a percentage, not exceeding 10% of construction cost annual inflation rate as defined by NEDA 8. In case the CONTRACTOR lags behind schedule in his work and incurs 15% or more negative slippage, based on his approved PERT/CPM, the Secretary of Department Public Works and Highways may, at his discretion, terminate of rescind the contract pursuant to existing laws, rules and regulations 9. The provision of RA 6685 as implemented by Department Order No. 51, series of 1990 is hereby incorporated as part of this CONTRACT. 10. The CONTRACTOR shall comply with, and strictly observed, all laws regarding workmen’s health and safety, workmen’s welfare, compensation for injuries minimum wages, hours of labor and other labor laws as per Ministry Order No. 9, series of 1981. 11. The CONTRACTOR warrants that he has not given nor promised to give any money or gift to any employee of the EMPLOYER (or any Philippines government Instrumentality0 to secure this CONTRACT. 12. The CONTRACTOR shall pay taxes I full and on time and that failure to do so will entitle the government to suspend payment for the contract. Owner/Contractor EDUARDO T. SANTOS AGNES D. MACASAQUIT WHERE ORVILL S. GAMBOA OIC-Asst. District Engineer By: Party of the Second Part Republic of the Philippines Department of Public Works and Highways By: Party of the First Part EDUARDO T. SANTOS CONSTRUCTION SUPPLIES O.K. AS TO AVAILABILITY OF FUNDS: CARMELITA C. ROMERO Engineer III (Witness) CELESTINO M. POLINTAN 4 13. The CONTRACTOR shall likewise regularly present, within the duration of the contract, a tax clearance from the Bureau of Internal Revenue(BIR) as well as a copy of its income and business tax returns duly stamped and received by the BIR and duly validated within the tax payments made thereon. 14. Within a period of 12(twelve) Months after completion and final acceptance of the PROJECT, the CONTRACTOR shall remain liable for any damages or defects discovered on the works due to faulty construction or the use of materials of inferior quality or violation of terms of the CONTRACT. 15. If any dispute or difference of any kind whatsoever arises between the EMPLOYER or the ENGINEER and the CONTRACTOR in connection with or arising out of the CONTRACT, or carrying out of the WORKS, it shall first be submitted for resolution to the Secretary.. However, if the decision of the Secretary is not satisfactory to the CONTRACTOR, such dispute may be submitted to, and settled by, the construction industry Arbitration Commission (CIAC) created by Executive Order No. 1088 16. This agreement becomes binding and valid upon approval by the proper authorities. 5 IN WITNESS WHEREOF, the parties hereto set their respective hands on the day, month and year first above written. REPBULIC OF THE PHILIPPINES EDUARDO T. SANTOS CONST. SUPPLIES. DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (PARTY OF THE FIRST PART) (PARTY OF THE SECOND PART) BY: BY: ORVILL S. GAMBOA OIC-Asst. District Engineer EDUARDO T. SANTOS Owner/Contractor CELESTINO M. POLINTAN Engineer III (Witness) CARMELITA C. ROMERO Engineer III (Witness) LOLITO M. DIZON BAC Chairman Admin. Officer V (Witness) O.K. AS TO AVAILABILITY OF FUNDS: AGNES D. MACASAQUIT Accountant III Approved this ________ day of ______________________year 2013 APPROVED: TITO JESUS T. SALVADOR Officer-In-Charge Engineer III (Witness) REPUBLIC OF THE PHILIPPINES ______________________________) S.S ______________________________) Engineer III (Witness) BAC Chairman Admin. Officer V (Witness) BEFORE ME, as the Notary Public for and within the Province/City of Angeles, personally appeared, ORVILL S. GAMBOA, OIC-Asst. District Engineer, representing the REPUBLIC OF THE PHILIPPINES (Department of Public Works and Highways) with Professional Regulation Commission Registration No. 0019918 issued on November 11, 1978 at Sampaloc, Manila and EDUARDO T. SANTOS Owner/Manager, representing EDUARDO T. SANTOS CONSTRUCTION SUPPLIES with Driver’s License No. ____________ issued on _______________ at ________________ 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 six (6) 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. Owner/Contractor Accountant III IN WITNESS WHEREOF, I have hereunto affixed my Signature and Official Seal this _________ day of _______, ______________. EDUARDO T. SANTOS AGNES D. MACASAQUIT CARMELITA C. ROMERO LOLITO M. DIZON ACKNOWLEDGEMENT ORVILL S. GAMBOA OIC-Asst. District Engineer eer By: Party of the Second Part Republic of the Philippines Department of Public Works and Highways By: Party of the First Part EDUARDO T. SANTOS CONSTRUCTION SUPPLIES O.K. AS TO AVAILABILITY OF FUNDS: CELESTINO M. POLINTAN 6 (Notary Public) Doc. No._______; Page No._______: Book No. ______; Series of _______;