CONSTRUCTION CONTRACT

Concreting of Parking Pavement, Balagtas Sales Office

(Barangay Balagtas, Batangas City)
KNOW ALL MEN BY THESE PRESENTS:

This CONSTRUCTION CONTRACT is made and executed this _____________

day of ____________, 2023 by and between:

SOROSORO IBABA DEVELOPMENT COOPERATIVE (SIDC), a duly

registered cooperative under the Cooperative Development Authority
and with Main Office Address at Brgy. Sorosoro Ibaba, Batangas City,
represented in this act by its Chairperson of the Board, DR. ANGELITO
B. BAGUI and its Chief Executive Officer, HON. RICO B. GERON, both
Filipino citizen, of legal age, married and residents of Sorosoro Ibaba
and Madonna Subdivision, Alangilan, both in the City of Batangas,
hereinafter referred to as the “OWNER”;
- and -
A PLUS CONSTRUCTION & DEVELOPMENT CORP., a corporation
organized and existing under the Philippine laws, with principal address
at J.C. Wagan Ave. Poblacion, San Antonio Quezon represented by its
OWNER, MS. KIMBERLY ANN CASTILLO DEQUITO, hereinafter
referred to as the “CONTRACTOR”.

(Each, a “Party”, and collectively, the “Parties”)

WITNESSETH: That –

WHEREAS, the OWNER is an agri-based cooperative with principal office

address at Sorosoro Ibaba, Batangas City, wherein it wants to construct and Concreting
of Parking Pavement, Balagtas Sales Office Barangay Balagtas, Batangas City)
WHEREAS, the OWNER invited qualified bidders for said project and the
CONTRACTOR won the bid/ding;
WHEREAS, the CONTRACTOR represents that it possesses the necessary
technical expertise, experience, manpower, financial resources and sufficient
appropriate equipment to accomplish the Works in accordance with the plans,
specifications and scope of works required by, and has offered to undertake the Works
for the OWNER;
WHEREAS, relying on the CONTRACTOR'S above representations, the
OWNER has accepted the offer of the CONTRACTOR to undertake the construction of
the Works under the terms and conditions hereafter set forth;
NOW THEREFORE AND IN CONSIDERATION of the foregoing and the mutual
covenants and agreements made herein by one with the other, the Parties herein by
these presents, enter in this Construction Contract whereby the OWNER engages the
CONTRACTOR, under the following terms and conditions:

ARTICLE I
DEFINITIONS AND INTERPRETATION
Definition of Terms
The following terms shall have the respective meanings set forth below except as
expressly provided or the context clearly requires otherwise:
"Contract" shall mean this Contract for The Concreting of Parking Pavement,
Balagtas Sales Office ( Barangay Balagtas, Batangas City)
"Contract Documents" shall mean this Contract and all of the following
documents which are considered integral parts of this Contract:
1. CONTRACTOR’S Quotation with detailed breakdown and bills of
quantity as accepted by the OWNER – Annex “A”
 2. Bill of materials – Annex “B”
3. Detailed Plans, Drawings and Specifications-Annex "C"
4. Project Schedule/Gantt Chart- Annex "D"
5. Complete list of project engineers, supervising engineers, lead men,
and safety officers and manpower schedule – Annex “E”.
6. Equipment Utilization Schedule – Annex “F”
7. Construction Safety and Health Program – Annex “G”
8. SPA of Authorized Engineer (top sign) – Annex “H”

Other documents such as, but not limited to, Change Orders and minutes of
meetings of the OWNER and the CONTRACTOR, which hereafter may be mutually
agreed upon by and between the OWNER and the CONTRACTOR and signed by both
of them, whether prepared before or after the signing of the foregoing documents, shall
likewise form part of the Contract Documents.
"Contract Price" shall have the meaning ascribed to it in Article III hereof.
"Works" shall mean The Concreting of Parking Pavement, Balagtas Sales
Office ( Barangay Balagtas, Batangas City) specifically provided in Article II of this
Contract. Specifically, the Works shall consist of The Concreting of Parking
Pavement, Balagtas Sales Office ( Barangay Balagtas, Batangas City) and includes
for all items the incidental works necessary for its completion. Incidental works and
interdependent work shall be clearly defined in the plan to which both OWNER and
CONTRACTOR shall sign off. Except as provided in Article V hereof, Works shall
include all labor, materials, tools, equipment, management and supervision of the
services needed to complete the Works in accordance with the plans, specifications,
governing codes and regulations and other related Contract Documents.
Interpretation
The headings in this Contract are used for convenience only and shall not limit or
affect the construction of the provisions hereof. Unless herein expressly provided or the
context requires otherwise: (i) words denoting the singular number shall include the
plural and vice versa; (ii) references to Sections, Subsections, Annexes and Schedules
shall refer to a Section, Subsection, Annex and Schedule of and to this Contract.

ARTICLE II
SCOPE OF WORK / PROJECT
1. The CONTRACTOR shall undertake the construction of the Works for the
OWNER in accordance with the Detailed Plans, Drawings and Specifications hereto
attached as Annex "B", regardless of whether specific items are contained in the Bills of
Quantity.
2. The CONTRACTOR shall, in accordance with the provisions of this
Contract, fully and faithfully, furnish and provide for its account the necessary materials,
labor, tools, equipment, and supervision as may be needed to successfully perform, and
complete the Works without delay.
3 The general requirement for mobilization/demobilization, shall include, but
not be limited to, bonds and insurances, shop drawing, safety and PPE, TEMFACIL,
including power and water consumption, necessary scaffolding, form works, and all
materials needed for the completion of the Works (except for materials stated in Article
V), material handling and demobilization, and provision of equipment.
4. The CONTRACTOR shall perform and accomplish the Works strictly in
accordance with its proposal and as provided in the Contract Documents including but
not limited to papers, plans, specifications, schedules and related documents.
5. The CONTRACTOR shall provide everything necessary or appropriate
toward the proper accomplishment and completion of the Works according to the true
intent and meaning of the drawings, plans and specifications and other contract
documents taken together, whether the same may or may not be particularly shown on
the drawings or described in the specifications; provided that, the same is reasonably to
be interfered therefrom; and if the CONTRACTOR finds any discrepancy in the drawings
or between the drawings and the specification, the CONTRACTOR shall immediately
refer the same to the SIDC Project Engineer which shall finally decide on what shall be
followed.
6. The CONTRACTOR shall use materials of the best grade and
constructed and / or installed in a practical manner utilizing industry best practices. All
materials shall be in conformance with the latest standards and with inspection and
approval from SIDC Project Engineer and TWG Committee.
ARTICLE III
CONTRACT PRICE
For and in consideration of the complete and satisfactory performance of the
Works, the OWNER shall pay the CONTRACTOR the total amount of ONE MILLION
FIVE HUNDRED SIXTY SIX THOUSAND EIGHT HUNDRED SEVENTY NINE PESOS
AND 85/100 (P 1,566,879.85 ) VAT Exclusive), VAT Inclusive (the “Contract Price”).
The CONTRACTOR guarantees that, for the entire performance of the Work, the
OWNER shall not incur expenses over and above the said amount except for any
addition or extra work that may be required and authorized in writing as contemplated in
ARTICLE IX, or due to additional costs arising from causes beyond the reasonable
control of the CONTRACTOR including, but not limited to, the cost of permits, licenses,
and/or other fees and/or assessments which may be required by the relevant Local
Government Unit (LGU) as a condition for the performance of the Works.
It is expressly agreed by both Parties that no change shall be made in the above-
mentioned Contract Price as a result of any fluctuation in the cost of material and/or
labor.
ARTICLE IV
COMPLETION TIME AND LIQUIDATED DAMAGES
The CONTRACTOR shall commence the work within three (3) calendar days
from the date of its receipt of the down payment. Both parties agree that the Works shall
performed and completed within a period of thirty (30) calendar days from the date of the
CONTRACTORs receipt of Purchase Order(the “Completion Period”).
It is understood that time is of the essence in this Contract and the
CONTRACTOR agrees to pay liquidated damages to the OWNER in the amount of point
one percent (0.1%) of the contract price or ten thousand pesos (Php 10,000.00),
whichever is higher, for every calendar day of delay beyond the stipulated Completion
Period, unless such delay is caused by force majeure. The CONTRACTOR shall not be
liable for any delay in case the performance of the Works is delayed due to causes
beyond the reasonable control of the CONTRACTOR such as, but not limited to, delay in
the issuance of the requisite permits, approvals, and/or clearances by the LGU for the
performance of the Works or any portion thereof, or due to force majeure or the
occurrence of acts of God, wars, rebellion, insurrection, strikes, epidemics, fires, riots, or
such acts of the civil or military authorities, and other forces of nature such as, but not
limited to, floods, typhoons, earthquakes, and other natural calamities. Inclement
weather or any field conditions that could adversely affect the quality or pace of the
performance of the Works shall likewise be considered force majeure. The term “force
majeure” shall exclude fire, explosion, labor disputes or other calamities caused or
attributed to the fault or negligence of the OWNER which shall not be considered to free
the CONTRACTOR from the liquidated damages.
Once the cumulative amount of liquidated damages reaches ten percent (10%) of
the amount of the contract, the OWNER may rescind or terminate the contract, without
prejudice to other courses of action and remedies available under the circumstances.
In cases where the delays are due to the fault of the OWNER or due to force
majeure or due to cause beyond the reasonable control of the CONTRACTOR, the
CONTRACTOR shall be entitled to extension of time upon submission of a written
request for time extension within (10) calendar days from the date of occurrence and
subject to the evaluation and approval of the TWG or the OWNER’s Representative (the
“Representative”).
 ARTICLE V
MANNER OF PAYMENT,  BOND AND RETENTION
The CONTRACTOR must submit a performance bond, in any of the
following forms:
a.  Cash or cashier’s/manager’s check or bank draft/guarantee or irrevocable letter
of credit issued by a Universal or Commercial Bank equivalent to ten (10%) percent
of the total contract price, or
b. Surety Bond callable upon demand issued by a surety or insurance company duly
certified by the Insurance Commission as authorized to issue such bond equivalent
to thirty percent (30%) of the total contract price.
Furthermore, the OWNER shall pay the CONTRACTOR fifteen percent
(15%) of the Contract Price as down payment, within fifteen (15) calendar days
from the signing of the Contract Agreement. The Balance of eighty five percent
(85%) of the contract price will be paid through progress billing depending on the
accomplishment of the work evaluated and approved by the TWG or
Representative. In no case shall progress billing be made more than once every
ten (10) calendar days. Each Progress Billing payment to the CONTRACTOR
shall be subject to Ten Percent (10%) Retention which amounts shall be retained
by the OWNER until the works have been fully completed and accepted. First
Payment/Billing shall have an accomplishment of at least fifty percent (50%).
The CONTRACTOR’S request for payment shall be checked, evaluated and
endorsed by the Owner’s Project Engineer or Representative to
the OWNER within seven (7) calendar days and the OWNER shall process the
payment within another seven (7) calendar days, having the following supporting
documents:
i. Progress Billing
ii. Request for payment by the CONTRACTOR
iii. Pictures/photographs of original site conditions (for First Billing only)
iv. Pictures/photographs of work accomplished
v. Accomplishment Report
vi. Material Testing Results (if  necessary)
vii. Payment of utilities (power and water consumption)
viii. Contractor’s affidavit (if accomplishment is more than 60%)
The CONTRACTOR can bill the SIDC of up to a maximum of 95%
accomplishment.

ARTICLE VI
ACCEPTANCE AND RELEASE OF RETENTION
The release of the ten percent (10%) retention shall be made on a one-
time payment only. It shall be released 60 calendar days after submission by
the CONTRACTOR to the OWNER of the Approved Certificate of Acceptance.
Provided that the CONTRACTOR will issue a Warranty Bond covering
one (1) year from the works have been fully completed and accepted.
Before issuance of final certificate of completion and acceptance,
the CONTRACTOR shall submit Gantt Chart, duly signed Progress Report,
Certificates of Acceptance and sworn statement stating that all payrolls, bills and
other indebtedness connected with the work have been full paid.
 
ARTICLE VII
CORRECTION OF WORK AFTER FINAL PAYMENT / MATERIAL
ESCALATION
Neither the final Certificate of Completion for the release of retention nor any
provision in the Contract Documents shall relieve the CONTRACTOR of
responsibility for faulty workmanship attributable to labor, and he shall  remedy
the defects due thereto and repair damages to other works resulting therefrom
which shall appear within a period of THIRTY (30) calendar days from the receipt
of written notice from the OWNER, the latter may have the work of repairs done
by another party at the expense of the CONTRACTOR, or alternatively,
confiscate the guarantee bond referred to  ARTICLE V hereof.
Likewise, it is understood that the contract price for this construction project has
been calculated based on the current prices for the component materials on the
onset or the time of bid or pre-bid conference. Thus, the current price of materials
during the pre-bid will prevail as against any increase and escalation that will
transpire during the construction and . Material Price Escalation will not be
accepted one(1) year from the date of Pre-Bid Conference.
ARTICLE VIII  
WORKMANSHIP
The degree of workmanship used in the construction shall be of the
respective kind described in the specifications. Should the degrees of
workmanship fail below the specified standard, the CONTRACTOR shall
promptly redo the work notwithstanding that such work have been overlooked by
the EGSD Representative of the OWNER and accepted or estimated for
payments. All additional expenses uncured by the CONTRACTOR in either case
shall be for his own account. All remedial work shall not in any way effect the
completion time set forth in the Contract.
ARTICLE IX
CHANGES AND ADDITIONS IN THE WORK
If the OWNER shall, upon written order signed by its authorized representative,
require any deviation from the plans and specifications or require that any work
described in the plans and specifications be omitted, the CONTRACTOR will
carry out such requirements of the OWNER and shall perform the additional work
in a satisfactory and workmanlike manner by and to the satisfaction of
the OWNER within the time prescribed, who shall compute and certify it in
accordance with all unit prices. The value and/or amount are to be ascertained
by the Contract price, more specifically on the Approved Schedule of
Additive/Deductive Cost and shall be executed under the conditions thereof and
of the Contract Documents.

ARTICLE X
CLAIMS OF LABORERS AND WARRANTIES

The OWNER shall not be responsible directly or indirectly for death or illness or

injury suffered by the CONTRACTOR’S employees or laborers nor shall it be
liable for any loss, damages or deterioration caused on
the CONTRACTOR’S equipment. In no case shall the OWNER be considered
the employer of the laborers, the employees and agents of the CONTRACTORS.
The CONTRACTOR warrants that it is a duly licensed contractor authorized to
do business as such, and that it has sufficient capital and money to pay its
obligations to its laborers and employees employed or hired for the purpose of
performing its obligations under this Contract and shall be liable to its employees
and laborers for all compensations, benefits, dues and damages imposed by law
upon an employer in favor of its employees, complying at its own expense, with
the provisions of the Minimum Wage Law, Employees Compensation Law, Social
Security Law and all other applicable laws, ordinances and regulations of any
national, provincial, city or other governmental authority.

ARTICLE XI
CLAIMS AND ACTION
The OWNER shall not be responsible for any liabilities incurred by
the CONTRACTOR for wages or other compensation due to the latter’s laborers,
employees, agents or for the cost of equipment, tools and services supplied by
the third parties to the CONTRACTOR or on account of the construction on
persons, rights or properties, of any third party or subject matter of this Contract,
for anything or act done or performed by the CONTRACTOR. The rights and
liabilities under this contract may not be transferred or assigned to any third party
without the written consent of the OWNER.

ARTICLE XII
OWNER’S RIGHT TO TERMINATE CONTRACT
If the CONTRACTOR shall neglect or fail to perform any of the obligations
herein set forth, the OWNER may give written notice to the CONTRACTOR to
proceed with such work and to perform such obligations or agreement. Should
the CONTRACTOR fail to do so within FIFTEEN (15) calendar days from the
receipt thereof and if the Owner’s Project Engineer shall certify such failure to do
so, this shall be sufficient ground for the OWNER to terminate the Contract and
to complete the work comprehended in this Contract, and to used authorize such
other person or subcontractor to use thereof any tools, equipment, and the
property of the CONTRACTOR that shall be on the premises. The total
expenditure of the OWNER on completion of the work, damages and all charges
including managerial and administrative services shall be applied to the
remaining balance of the Contract price.
 
ARTICLE XIII
CONFIDENTIALITY CLAUSE
It is understood and agreed that the terms and conditions of this Contract
between CONTRACTOR and OWNER shall remain confidential. CONTRACTOR
AND OWNER, its officers, employees and representatives shall not discuss this
Construction terms, rates or conditions with any third party unless authorized by
or requested to do so by the parties in this Contract. Any breach of confidentiality
by CONTRACTOR and OWNER shall be deemed a material default hereunder
and in which event, this Construction Contract may be cancelled at without prior
notice or demand.
 All data and/or information processed under this Agreement shall be
treated in compliance with the provision of the Data Privacy Act of 2012.
ARTICLE XIV
COMPLIANCE WITH LAWS AND REGULATIONS
In the prosecution of the work subject matter of this Contract,
the CONTRACTOR shall comply with all laws, ordinances, rules, and regulations
prescribed by the Government, local or national.
ARTICLE XV
ESCALATIONS
It is further agreed and understood that the CONTRACTOR shall not claim nor
be entitled to any labor escalation at any time during the construction period
regardless of legislations, P.D.’s executive orders and letters of instruction issued
by authorities concerning adjustments in minimum wage.
ARTICLE XVI
CERTIFICATE OF ACCEPTANCE
The OWNER shall secure the building permit and certificate of occupancy
required by this PROJECT from this concerned government agencies which fees
and other related expenses shall be borne by the OWNER.
ARTICLE XVII
WATER AND ELECTRICAL SERVICES AND CONNECTION
The OWNER shall provide water and electricity connection; however, its sub-
meters and monthly water and electricity consumption during the construction
period shall be borne by the CONTRACTOR.
ARTICLE XVIII
SUB- CONTRACTS
It is hereby understood herein that the entire work called for by this Contract shall
not be subject or subcontracted. However, for the better progress of the
construction, the CONTRACTOR may sub-contract specific jobs and portions of
this construction work after obtaining prior written authorization and consent from
the OWNER.
Any sub-contract even if authorized shall not relieve the CONTRACTOR from its
obligation and responsibility to the OWNER for the satisfactory completion of the
work and for payment of wages of laborers and materials furnished for the work.
ARTICLE XIX
OWNERS OPTION TO TERMINATE THE CONTRACT
If at any time during the progress of the work the CONTRACTOR shall incur a
negative slippage equivalent to FIFTEEN PERCENT (15%), the OWNER may at
its option and upon certification of the TWG or REPRESENTATIVE that sufficient
cause exists to justify such action after giving the CONTRACTOR ten (10)
calendar days written notice, terminate the employment of the CONTRACTOR.
ARTICLE XX
COMPENSATION FOR DAMAGES
In the event that either of the Parties (“Liable Party”), in relation to this
Agreement or the Real Property, inflicts any damage or injury to the Real
Property / Inventory subject of the Construction Agreement, the other Party or a
third party intentionally or through negligence, the Liable Party shall notify the
other Party and (i)when such damage or injury is incurred by the other Party,
promptly compensate such damage or injury by restoring the Real Property to its
original state or by other measures according to the request of the other Party,
and (ii) when such damage or injury is incurred by a third party, shall promptly
compensate such damage or injury upon consultation with the other Party.
ARTICLE XXI
NO EMPLOYER-EMPLOYEE RELATIONSHIP
1. The relationship of the OWNER to the CONTRACTOR is that of an
independent contractor. Nothing in this Agreement shall be construed
as creating an employer-employee relationship between OWNER and
the CONTRACTOR, its subcontractor, employees, agents, or workers.
ARTICLE XXII
MISCELLANEOUS
1. Any breach or violation by either party of the obligations and covenants
under this Agreement shall entitle the aggrieved party to rescind or
cancel this Agreement, after fifteen (15) days written notice to that
effect. In addition, the party that breached or violated this Agreement
agrees and obligates itself to pay for the actual incurred by the other
party;
2. Any failure of the OWNER to enforce her rights and privileges under
this Agreement shall not be construed as a waiver or renunciation of
such rights and privileges;
3. It is hereby agreed that any disputes arising out of or in connection with
this Agreement shall be submitted to the Construction Industry
Arbitration Commission (CIAC) for arbitration; and
4. This Agreement shall be binding upon the respective assigns and
successors-in-interest of the parties thereto.
IN WITNESS WHEREOF, the parties herein affixed their signatures on the date
and place above written.

SOROSORO IBABA A PLUS CONSTRUCTION &

DEVELOPMENT COOPERATIVE (SIDC) DEVELOPMENT CORP.

_________________________ _____________________________
DR. ANGELITO B. BAGUI MS. KIMBERLY ANN C. DEQUITO
Chairperson of the Board Contractor

______________________
HON. RICO B. GERON
Chief Executive Officer

Signed in the presence of:

_______________________ ________________________
 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF BATANGAS ) S.S.

BEFORE ME, personally came and appeared this ______ day of ___________, 2023:

Name ID CARD/ID. NO. Issued on/at

DR. ANGELITO B. BAGUI _____________ _______________________
HON. RICO B. GERON _____________ _______________________
MS. KIMBERLY ANN DEQUITO _____________ _______________________

Known to me and to me known to be the same persons who executed the

foregoing instrument and acknowledged to me that the same is their free and voluntary
act and deed and those of the entity they respectively represent.

This instrument refers to a Construction Contract consisting of nine (9) pages

including the page on which this acknowledgement is written, has been signed on each
and every page thereof by the concerned parties and their witnesses, and sealed with
my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.

NOTARY
PUBLIC

Doc. No. ________;

Page No. ________;
Book No. ________;
Series of 2023.