construction agreement for mgl (acosta et al)

7/24/2019 Construction Agreement for Mgl (Acosta Et Al)

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CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Agreement executed by and entered into by and between:

MGL CONSTRUCTION & DEVELOPMENT CORP., adomestic entity duly organized under and by virtue of thelaws of the Philippines, with oce and postal address atDaan Sarile, Cabanatuan City, herein represented by itsPresident, MANUEL G. LACSAMANA, SR. hereinafter calledthe “CONTRACTOR!

"A#$"

WILLIAM A FELARCA, single%married, of legal age, &ilipinoand resident of ''''''''''''''''''''''''''''''''''''''''''',and JANELOR ACOSTA, single%married, of legal age, &ilipinoand resident of

'''''''''''''''''''''''''''''''''''''''''''''''''''''',hereinafter collectively referred to as the “SUB-CONTRACTOR”;

WITNESSETH:

()*+*A, the -.#T+A-T.+, by virtue of applicable resolutions,memoranda and appointments from the proponents namely N!"#$%H#'"$( A!)#*"!+ NHA, C$!*% L/#$ S!! U$"0*'"!+ CLSU$1 CLSU E23%#+' H#'"$( C##3*!"0 CEHC, was appointed

-.#T+A-T.+ of the more or less twenty /012 hectare, 341"unit housingpro5ect exclusively for the employees of -67, located at -67 -ompound,cience -ity of 8u9oz /hereinafter referred to as the “P*#45!2!

()*+*A, the -.#T+A-T.+ solicited the services of several mass"housing sub"contractors to implement the construction of the housingcomponent of the Pro5ect!

()*+*A, the 7"-.#T+A-T.+ is a housing contractor ando;ered to underta<e and defray the expenses for the construction of FOUR HUNDRED 677 HOUSING UNITS on the Pro5ect in accordancewith the approved plans and speci= cations and the

-.#T+A-T.+ accepted the o;er of the 7"-.#T+A-T.+ ;

()*+*A, payments for the cost of construction of the sub5ect

housing units and other relative expenses as herein provided shall be paid

in full upon release of the loan availed by the buyers of the accomplished

housing units which is more or less, within thirty />12 from the date of

completion and acceptance!

()*+*A, the parties herein, in their desire to formulate an ideal

set"up in order to sustain the feasibility and continuity of this underta<ing

has entered into an Agreement to clearly de=ne its roles andresponsibilities and the de=nite procedures and guidelines of this

transaction!

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#.(, T)*+*&.+*, for and in consideration of the premises and

mutual covenants herein contained, the parties do hereby bind

themselves and agree on the following:

ARTICLE ICONTRACT DOCUMENTS

The following documents shall constitute integral parts of thisAgreement, as fully as if the contents of the said documents arereproduced, incorporated and set forth herein and shall govern and controlin full force and e;ect the right and obligation of the parties, except as theotherwise modi=ed by terms and conditions by this Agreement, or bymutual agreement in writing by both parties, to wit:

?@?ill of uantities and $etailed Price Analysis!

?@0Technical peci=cations, Plans and $rawing!?@>Pro5ect .rganization -hart!

ARTICLE IISUB-CONTRACTOR8S SCOPE OF WORK

0@? The 7"-.#T+A-T.+ agrees to commence, perform and completethe wor< called for and de=ned in this Agreement at its cost andexpense and to fully and faithfully furnish all materials, tools, labor,supplies eBuipment, temporary =eld facilities for its personnel andother incidentals necessary for the completion of the P+.C*-T inaccordance with conditions and speci=cations hereto provided!

ARTICLE IIITERMS OF PROCEDURE AND MANNER OF PAYMENT

>@? All parties herein shall observe the following procedure and mannerof payment, in toto:

>@?@? The -.#T+A-T.+ will process the bene=ciaries who are

approved by -*)- and pre"Buali=ed to acBuire a housingloan by the Pag"DDE or other =nancial institutions!>@?@0 6oan documents will be prepared, collated and pre"approved!>@?@> 7pon determination of the certainty of the eligibility of the

uyer, a #otice To Proceed for the construction of the sub5ectunit shall be submitted to the 7"-.#T+A-T.+,

>@?@F -onstruction proper will ensue as per herein guidelines!>@?@G 7pon completion of the loan processing, 6oan Approval and

6etter of Euarantee will be released by the =nancinginstitution!

>@?@H -ompliance on the conditions of 6etter of Euarantee such astransfer and registration Transfer of -erti=cate of Title in the

name of the uyer, annotation of 8ortgage and other relativeprocedures!

>@?@I Ta<e"out and release of chec< payments!

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>@?@4 Payments or partitioning of ta<e"out release will beapportioned in the following order:

>@?@4@? Payment for the value of lot!>@?@4@0 Payment for the construction of housing unit in

favor of the 7"-.#T+A-T.+!>@?@4@> Any excess shall be paid in favor of the

-.#T+A-T.+ for the payment of the landdevelopment and other relative operationalexpenses!

ARTICLE IVMANNER OF E9ECUTION

F@?The 7"-.#T+A-T.+ shall assign on a full time basis a Buali=edpro5ect upervisor who shall act as his representative to superviseand administer the operations as well as coordinate with the-.#T+A-T.+ or their representatives in order to ensure the e;ectiveimplementation of the wor<s covered in this Agreement!

F@0The 7"-.#T+A-T.+ shall be responsible for maintaining thegeneral cleanliness, order, security, safety and sanitation at thepro5ect with respect to the items of wor< covered by this Agreementincluding removal of surplus materials and construction debristhroughout the duration of the contract period@

F@>The -.#T+A-T.+ shall have the right to impose “on"site rules andregulations, primarily for the physical security of the pro5ect as wellas for the personnel discipline together with the correspondingsanctions, including the right to disallow entry of employees andwor<ers who have violated the same@ The 7"-.#T+A-T.+ hereby

binds itself to comply with the said rules and regulation, andunderta<es to ensure that all its employees and wor<ers shall li<ewisecomply with the said “on"site rules and regulations, any expense tobe incurred in complying with the same shall be for the account of the7"-.#T+A-T.+!

F@FThe 7"-.#T+A-T.+ shall assume sole and full responsibility for allmaterials, eBuipment and other facilities until the =nal completionand acceptance of the wor<s by the -.#T+A-T.+@

ARTICLE VWORK CONDITIONS

G@? The 7"-.#T+A-T.+ hereby certi=es that prior to the signing of this Agreement, they have inspected and familiarized with theconditions of the pro5ect site as they may be relevant to theperformance of their commitments and responsibilities hereinprovided!

G@0 The 7"-.#T+A-T.+ agrees to perform its obligations hereunder inthe most ecient and competent manner, use its s<ill and good

5udgment, always act in good faith, and carry on the execution of this

Agreement in the most sound, expeditious manner consistent withthe intentions of the -.#T+A-T.+!

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ARTICLE VIPROJECT COST

H@? &or and in consideration of the full, satisfactory and faithfulperformance by the 7"-.#T+A-T.+ of all its underta<ing de=nedin and provided for under this Agreement and the -ontract$ocuments, the -.#T+A-T.+ agrees to pay the 7"-.#T+A-T.+the =xed amount of EIGHT THOUSAND P,777.77 PESOS persBuare meter of Joor area of basic unit and ELEVEN THOUSANDFIVE HUNDRED P,<77.77 PESOS per sBuare meter of Joorarea of unit expansion, for the construction and accomplishment of more or less F#* H$1*1 677 )#'"$( $"!' #= !) P*#45!;

H@0 Additional zocallo walls, if any, in excess of the standard height of H1cms from Joor line to footing, shall be charged at cost plus Ten/?12K2 Percent pro=t margin!

H@> *xcept as herein provided, it is clearly understood, expressly andmutually agreed upon by the parties hereto, that the stipulatedcontract price hereof shall not be sub5ect to any upward ad5ustmentduring the term of the #otice To Proceed for cause or causes orreason whatsoever@ )owever, the same shall be sub5ect for reviewevery ninety /312 days and ad5ustments can be applied only onunits that has not been issued the corresponding #otices toProceed!

ARTICLE VIICOMPLETION TIME

I@? The 7"-.#T+A-T.+ agrees and obligates itself to underta<e andcomplete the wor<s as herein provided within &orty &ive /FG2wor<ing days for basic unit and another &orty &ive /FG2 wor<ing daysfor any expansion thereof , upon receipt of the pertinent #otices toProceed@ The said notice shall rec<on =ve /G2 days after receiptthereof and shall be in conformity with the Program of (or< asherein provided and its corresponding accomplishments!

I@0 Dt is expressly agreed that whenever the 7"-.#T+A-T.+ fails tocomplete the wor< contracted for within the -ontract Time plus any

time extension duly granted to the 7"-.#T+A-T.+, the-.#T+A-T.+ may order the 7"-.#T+A-T.+ to prepare a catch"up schedule@ Df such catch"up schedule is not provided or the sameis not complied with, the -.#T+A-T.+ may terminate this presentcontract without the need for a court order@

I@> Dn case of termination, the -.#T+A-T.+ shall have the right tota<e"over the construction%completion of the uncompletedconstruction or completion of the wor<, by itself or by contractingwith a sub"7"-.#T+A-T.+, and the 7"-.#T+A-T.+ shallimmediately relinBuish to the -.#T+A-T.+ or to such 7"-.#T+A-T.+ appointed by the -.#T+A-T.+ with the right to

proceed in the construction%completion of wor<@ 6i<ewise, the 7"-.#T+A-T.+ hereby ac<nowledges the right of the -.#T+A-T.+or its duly authorized representative to oust the 7"-.#T+A-T.+

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or any other person wor<ing under his authority as well as hiseBuipment from the construction site@

The 7"-.#T+A-T.+ shall have the right to receive compensationto the extent of his completion of the wor< as 5ointly determined bythe -.#T+A-T.+ and 7"-.#T+A-T.+@

ARTICLE VIIIE9TENSION OF CONTRACT TIME

4@? Dt is expressly agreed that no claim for extension of time periodprovided herein may be entertained unless the 7"-.#T+A-T.+has, prior to the expiration of the contract time and within =fteen/?G2 calendar days after the circumstances leading to such claim

have arisen, delivered to the -.#T+A-T.+ an appropriate writtennotice in order that the -.#T+A-T.+ could have caused of extension investigated@ The -.#T+A-T.+ may grant or deny thesaid reBuest, and the said decision of the -.#T+A-T.+ on thismatter shall be =nal and binding upon the 7"-.#T+A-T.+@ Anyextension of the -ontract Time, which may be granted by the-.#T+A-T.+, must be in writing otherwise! the same shall not bee;ective for purposes of this present contract!

4@0 #otwithstanding the foregoing, no extension of the period of completion shall be granted in any of the following instances!

4@0@? .rdinary unfavorable weather conditions!

4@0@0 6abor problems or dispute! or

4@0@> (hen the reason given for the reBuest for the extension hasbeen considered in the determination of the original contractitem!

ARTICLE I9ENTIRE CONTRACT

4@? Provision to the contrary notwithstanding, it is agreed that a #otice To Proceed for a certain number of units shall be considered asentire -ontract for one whole and complete wor< and that partialpayments on account by the -.#T+A-T.+ or the use of parts oreBuivalent shall not constitute an acceptance of any part of thewor< before its entire completion and =nal acceptance in writing bythe -.#T+A-T.+@

ARTICLE 9SUB-CONTRACTOR8S LIABILITY

?1@? The parties, li<ewise, hereby agree that the employees of the 7"-.#T+A-T.+ are not employees of the -.#T+A-T.+ and shall notin any way liable and%or responsible for the wages of such

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employees, for any personal in5ury, including death or damagessustained by or caused or contributed to by any of the employees of the 7"-.#T+A-T.+ or his agents or supplier whether or notoccurring during the performance of their duties@ The 7"-.#T+A-T.+ agrees and bind itself to indemnify the -.#T+A-T.+of whatever in5ury or damages caused or occasioned or contributedto by the failure, negligence or conduct of the 7"-.#T+A-T.+and%or its employees, suppliers or consultants arising out or inconnection with or on the occasion of the performance of thisAgreement of the compliance with all existing laws, rules andregulations and binds itself to save and hold the -.#T+A-T.+ freeand harmless from any and all liability in respect hereof and%orarising therefrom and%or by reason of this Agreement and itsimplementation!

ARTICLE 9IRESPONSIBILITY OF THE CONTRACTOR

??@? Provide the pro5ect site and ensure that the property will have no

legal problems during the implementation of this underta<ing!

??@0 +eview, evaluate and approve%disapprove proposals andrecommendations submitted by the 7"-.#T+A-T.+ as reBuiredherein!

??@> Provide all documents related to the pro5ect such as resolutions,

proclamations, authorities and agreements of all the proponents,

land title%s, and the li<es!

??@F 8onitor the proper assignment of housing units to the intended

bene=ciaries and ensure proper implementation of the provisions

herein@

??@G Dt shall ensure that the 7"-.#T+A-T.+ is in peaceful andundisturbed possession of the pro5ect site for the entire duration of the construction wor<s!

ARTICLE 9IIRESPONSIBILITIES OF THE SUB-CONTRACTOR

?0@? The 7"-.#T+A-T.+ shall assume full responsibility for the entirecontract wor< indicated on its #otices To Proceed, until its =nalacceptance by the -.#T+A-T.+ and shall be held responsible forany damage or destruction of wor<s except those occasioned byforced ma5eure!

?0@0 The 7"-.#T+A-T.+ shall establish, set"up and operate throughits own resources the construction of approved housing units and

shall be responsible for their safety and up<eep!

?0@> *xcept li<ewise for force ma5eure, the 7"-.#T+A-T.+ shall befully responsible for the safety, protection, security and convenience

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of its personnel, parties and the public at large, as well as thewor<s, eBuipment, installation and the li<e to be a;ected by theconstruction wor<!

ARTICLE 9IIIRESPONSIBILITIES OF CONTRACTOR

?>@? +epresent the entire underta<ing with the oces of -67, -*)-,Pag"DDE and other =nancing institution to centralize and simplifythe transaction proper@ *nsure that the pro5ect proponent shallaccept ta<e"out proceeds and issue corresponding receipts, invoicesfor this purpose and shall immediately facilitate apportionment of the said proceeds in the manner provided under Article >@?@4 of thisAgreement!

?>@0 &acilitate in the most ecient manner possible in order to expeditethe completion, processing and approval of loan documents of buyers or owners of units sub5ect for construction!

?>@> upervise and execute wor<s which shall includemonitoring%ensuring compliance to the approved plans,speci=cations and schedule of construction activities beingunderta<en by the 7"-.#T+A-T.+!

?>@F Provide area necessary for the establishment of 7"

-.#T+A-T.+Ls ban<houses at the vicinity of the Pro5ect sitethrough coordination with the -67 administration!

ARTICLE 9IVINSPECTION OF CONTRACT WORKSTATION

?F@? The proponents, -.#T+A-T.+ and 7"-.#T+A-T.+ or theirrepresentatives shall ma<e inspection of the contract wor< whilesuch contract wor< is in progress to ascertain that the completed

wor<s comply in all respect, with the standards and reBuirements setforth by the -ontract and the concerned =nancing institution@#otwithstanding such inspection, the 7"-.#T+A-T.+ shall beheld responsible for the acceptability of the =nished wor<s@ The 7"-.#T+A-T.+ shall promptly replace all materials and correct allwor<s determined by the said =nancing institution as failing to meetthe said reBuirements, at the 7"-.#T+A-T.+L own expense!

ARTICLE 9VASSIGNMENT AND SUBCONTRACT

?G@? The 7"-.#T+A-T.+ shall not without written approval of the-.#T+A-T.+, assign, transfer, pledge, sub"contract, or ma<e anyother disposition of interest in this Agreement or any part hereof@

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uch approval, when reBuested by the 7"-.#T+A-T.+, shall notbe unreasonably withheld by the -.#T+A-T.+@ hould the-.#T+A-T.+ give its written approval, such consent shall notrelieve the 7"-.#T+A-T.+ of its responsibilities under thisAgreement@ The 7"-.#T+A-T.+ shall ensure that the terms andconditions of the sub"contract agreement shall comply and conformto the terms and conditions of this Agreement@ The 7"-.#T+A-T.+ shall be responsible for the observance of the termsand conditions of the Agreement!

?G@0 Df any of the wor<s subcontracted is not prosecuted faithfully, the-.#T+A-T.+ or their representatives shall have the right torecommend the replacement or removal of the 7"-.#T+A-T.+upon written reBuest thereof, provided, that any failure to ma<esuch reBuest shall not relieve the 7"-.#T+A-T.+ of itsobligations under the Agreement@ The -.#T+A-T.+ shall not beresponsible for the delays or costs incurred by the 7"-.#T+A-T.+!

ARTICLE 9VIICHANGE IN WORK

?I@? The -.#T+A-T.+ may at any time prior to completion of theP+.C*-T, by a written variation order, ma<e changes in theschedule and the wor< reBuired under this Agreement@ Df any suchchanges cause an increase or decrease in the wor< or the timereBuired for the performance of this Agreement, an ad5ustment shallbe made in the -ontract Price or -ompletion $ate as follows:

?I@?@?Dncrease%$ecrease in the (or<"The unit cost contained in theoriginal price or ad5usted original contract price for li<e wor<

as indicated in A##*M “'' shall be used in determining thecost of additive%deductive wor<@ Df the contract does notcontain any rate applicable to the additional or extra wor<,then the current lowest canvassed cost of material and laborplus a =xed mar<ed"up of =fteen percent /?GK2 plusapplicable Nalue Added Tax shall be used@

?I@?@0-ompletion $ate" *xtension%+eduction in -ompletion time forany increase%decrease in the wor< shall be made uponmutual agreement of the parties@

?I@?@>#et *;ect of Nariation .rder O Df the net e;ect /summation of all change orders /additive and deductive2 will reduce thetotal original contract cost upon completion of the P+.C*-T,then ten percent /?1K2 of the net deductive cost will beadded as part of 7"-.#T+A-T.+Ls overhead, provided thatthe net deductive cost shall not exceed twenty =ve /0GK2 of the original contract amount, no further contribution to 7"-.#T+A-T.+L overhead shall be made@

?I@0 A separate upplemental Agreement may be entered into if a singleadditive Nariation .rder exceeds twenty"=ve /0GK2 of the .riginal-ontract Price!

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?I@> All change orders%variations not covered by the above provisionsshall be dealt with by the parties in accordance with the applicableprovisions of P$ ?G3F on change orders@

ARTICLE 9VIIIGUARANTEE OF THE CONTRACTOR

?4@? The -.#T+A-T.+ guarantees that the T-T sub5ect of any #otices ToProceed is free from lien and encumbrances@ Dn the event of failureof the -.#T+A-T.+ to e;ect the release of the loan proceedsattendant to the constructed unit%s within ninety /312 calendar daysfrom the date of completion and acceptance, that is without thefault of the 7"-.#T+A-T.+, the 7"-.#T+A-T.+ shall have atits option to declare as lien over the said T-T the cost of construction due to the 7"-.#T+A-T.+!

ARTICLE 9VI9AGREEMENT MODIFICATION

?3@? #o modi=cation, alteration or waiver of any provision contained

shall be binding on the parties hereto unless evidenced by writtenagreement signed and approved by the parties or theirrepresentatives@

ARTICLE 99INDIVISIBILITY OF OBLIGATION

01@? Dt is intent of this Agreement that all the documents, annexes andaddenda forming part hereof, shall be read together and that eachevery provision or stipulation hereof is given full force, e;ect andapplicability@ )owever, in the event that one or more provisions orstipulations herein be declared null and void by the courts, orotherwise rendered ine;ective, the remaining provisions andstipulations shall not be a;ected thereby!

ARTICLE 99IREMEDY AND RELIEF

0?@? Dn case any dispute or controversy will arise in connection withperformance of the obligations and%or the interpretation of theprovisions of this present Agreement, the parties agree to settle

these disputes through arbitration with the -onstruction DndustryArbitration -ommission@

ARTICLE 99IIOTHER COVENANTS

H@F The -.#T+A-T.+ guarantees that the housing unit%s that aresub5ect of #otices To Proceed are located in an area where the landdevelopment are Buali=ed for loan ta<e"out upon the completion of the unit%s@ Dn the event that the 7"-.#T+A-T.+ opt to constructin areas with incomplete or unscheduled land development, the7"-.#T+A-T.+ may assume completion of the un=nished

development and the same shall be charged at cost plus Twelve/?0K2 Percent pro=t margin!

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00@? Dt is expressly agreed and understood that in case of conJictbetween this Agreement and the provision of the documentsincorporated as forming part hereof, the former shall be controlling!

00@0 Dt should also be clearly understood that any payment or failure of the -.#T+A-T.+ to demand compliance with any of the terms andconditions of this Agreement or any act of liberality on the part of the -.#T+A-T.+ shall not be construed or considered as a waiveron the part of the -.#T+A-T.+ for the enforcement of thisAgreement, nor shall it relieve the 7"-.#T+A-T.+ of any of itsobligations provided thereunder!

00@> 7nder no circumstances shall the -.#T+A-T.+ be held liable forpayment of any extra wor< or extra cost of wor< of changeunderta<en without the prior written consent of the -.#T+A-T.+,whose decision shall be followed!

00@F The 7"-.#T+A-T.+ shall provide and do everything necessary to

perform its obligations under this Agreement according to the trueintent and meaning of the -ontract documents ta<en together,whether the same may or may not be shown or describedparticularly in the drawing, plans, and speci=cations provided thatthe same shall not be inferred therefrom@ hould the 7"-.#T+A-T.+ =nd discrepancy in the drawings, plans, andspeci=cations it shall immediately refer the same to the-.#T+A-T.+, whose decision shall be followed!

00@G The 7"-.#T+A-T.+ hereby underta<es and commits itself to theextent possible and practicable to hire directly some of its laborreBuirement from the locality in which the P+.C*-T DT* is situated@

6i<ewise, to the extent possible and practicable, the 7"-.#T+A-T.+ hereby underta<es and commits itself to purchase thenecessary materials for the wor<s from local suppliers, provided,however, the Buality and price are acceptable@

This Agreement shall ta<e e;ect upon signing on the date =rst indicated

above and shall continue to be e;ective until all obligations herein set

forth have been complied with both parties@

IN WITNESS WHEREOF, the parties have hereunto axed theirsignature, here at ''''''''''''''''''', this '''''''''''''' day of

'''''''''''''''',

MG LACSAMANA REALTY& DEVELOPMENT , CORP.

-.#T+A-T.+

MANUEL LACSAMANA WILLIAM A. FELARCA JANELOR R.ACOSTA

President 7"-.#T+A-T.+ 7"

-.#T+A-T.+

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DE#*$ D# T)* P+**#-* .&:

''''''''''''''''''''''''''''' '''''''''''''''''''''''''''''''

ACKNOWLEDGEMENT

BEFORE M*, a #otary Public, this ''''' day of '''''''''''''''''01?H, personally appeared the following:

#ame +es@ -ert@ #o@ $ate%Place Dssued8anuel 6acsamana '''''''''' '''''''''''''''''''' (illiam &elarca '''''''''' ''''''''''''''''''''

Canelor Acosta '''''''''' '''''''''''''''''''''

(ho are the same persons who executed the foregoing instrument andac<nowledged to me that the same are their free and voluntary acts anddeeds@

The foregoing instrument refers to the -onstruction Agreement and

consisting of ten /?12 pages, including this page on which this

ac<nowledgement is written, duly signed by the Parties and their

instrumental witnesses on each and every page hereof, and sealed with

my notarial seal@

(DT#* 8 )A#$ A#$ .&&D-DA6 *A6@

>>>>>>>>>>>>>>>>>>>>>>>>>>$oc@ #o@'''''''''''! #otary PublicPage #o@'''''''''''!oo< #o@''''''''''!Series of 2016

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