CONTRACT DOCUMENTS

PROJECT:
MN+LA
MITSUKOSHI BGC

OWNER:
Francis Mendoza
 AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Contract entered into by and between:

MN+LA, a corporation duly organized and existing under and by virtue of the laws of the Philippines,
represented by FRANCIS MENDOZA in his capacity as PRESIDENT, in this agreement referred to as the
OWNER;

And

PHILIP LEO DANAO, EDZEL MIKO SINOCRUZ & ARVIN DAVID N. VALDEZ, a contractor, in this agreement
referred to as the CONTRACTOR

WITNESSETH THAT
WHEREAS, the CONTRACTOR desires to do the INTERIOR WORKS & ELECTRICAL WORKS for MN+LA
MITSUKOSHI BGC hereinafter referred to as the PROJECT;

WHEREAS, evaluation of the bid’s submitted, was determined that the Contractor’s bid is the most
complying bid and the most advantageous to the OWNER;

WHREAS, the CONTRACTOR has agreed and accepted the award to undertake the construction work for
the PROJECT under the terms and conditions herein set forth;

NOW, THEREFORE, for and in consideration of the above premises, and covenants hereinafter stipulated
the parties hereto hereby agree as follows:
 CA – 1

ARTICLE I
Scope of Work
The CONTRACTOR shall undertake the supply, fabrication and installation of the PROJECT for the OWNER
in accordance with the Plans and Specifications, hereto attached.

The work to be done under this AGREEMENT shall include the furnishing by the CONTRACTOR of all labor,
materials, tools, equipment, and supplies and the performance by the CONTRACTOR of all operations
necessary for the Works, complete and ready for service of the PROJECT all in strict compliance with the
foregoing documents hereof, and to the terms and conditions of this AGREEMENT

ARTICLE II
Contract Price
The OWNER shall pay the CONTRACTOR, as consideration of the full and faithful performance and
accomplishment of all the obligations specified in Article I above, which the CONTRACTOR agreed to
undertake, perform and accomplish under this Contract, the total Contract Price of Pesos: SEVEN
HUNDRED THIRTY THOUSAND ONE HUNDRED PESOS ONLY (PHP 730,100.00) Exclusive of Value Added
Tax.

ARTICLE III
Terms of Payment
The OWNER shall make payments to the CONTRACTOR on account of this Contract on the value of work
accomplished, less (10%) retention. No payment shall be made unless billings bear the signed approval of
the OWNER. The OWNER shall pay the 10% retention to the CONTRACTOR after the final written
acceptance of the works and submission by the CONTRACTOR to the OWNER, the required permits and
As-built plans;

The OWNER agrees to pay a sum equivalent to Fifty Percent (75%) of the contract price of Pesos: FIVE
HUNDRED FORTY-SEVEN THOUSAND FIVE HUNDRED SEVENTY FIVE PESOS ONLY (PHP 547,575.00)
representing the down payment.

Payment may be granted after the following work progress percentage accomplishments: 75%, 90% until
the completion of the project.
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ARTICLE IV
Time of Commencement and Completion
The CONTRACTOR shall commence execution of the project within FIVE (5) days from receipt of Notice to
Proceed from OWNER and shall finish and complete construction of the PROJECT in accordance with the
plans and specifications herein annexed within 28 Calendar Days from the receipt of the Notice of
Award to Proceed unless extended in accordance with the Agreement.

ARTICLE V
Contractor’s Guarantee of Work
The CONTRACTOR warrants that all materials, facilities and equipment used in the PROJECT and covered
under this AGREEMENT are brand new, free from defects and strictly in accordance with the Technical
Specifications of the PROJECT.

Likewise, the CONTRACTOR warrants that all installation of materials, facilities and equipment called for
in this Agreement shall be carried out in a workmanlike manner and in conformity with sound engineering
practices. Any defect resulting from the CONTRACTOR’S non-compliance with his/its obligation shall be
made good without any expense on the part of the OWNER.

The CONTRACTOR shall undertake at his own expense all repairs and replacements of the materials,
facilities and equipment called or part thereof which are found to be defective, inferior and not in
accordance with this agreement and which are brought to the attention of the CONTRACTOR within SEVEN
(7) Days from discovery thereof and within ONE (1) Month after Final Acceptance of the Work by the
OWNER.

ARTICLE VI
Retention
The OWNER shall deduct and withhold from every progress payment due to the CONTRACTOR an amount
equivalent to TEN (10 %) percent of the work accomplished. The amount retained by the OWNER shall be
released within SEVEN (7) DAYS after the date of Final Payment, and with FINAL ACCEPTANCE of the Work
by the OWNER, subject to the submission by the Contractor of the pertinent documentations and permits
required.
 CA - 3

ARTICLE VII
Option to Complete Work
In case the CONTRACTOR, at any time during the progress of the work should fail, refuse or neglect to
supply the needed materials, equipment or workmen or should abandon the work, the OWNER may
provide materials, equipment and workmen, after giving the CONTRACTOR a Three-day (3) written notice,
and proceed with the work in accordance with Contract.

ARTICLE VIII
Termination
The OWNER shall have the right to terminate this AGREEMENT after giving fifteen (15) days notice in
writing for any of the following causes:

Substantial failure on the part of the CONTRACTOR to fulfill its obligation;

Assignment or sub – contracting of any of the works herein by the CONTRACTOR without written approval
by the OWNER;

The CONTRACTOR is willfully violating of any of the material conditions, stipulations, and covenants of
this Agreement and/or the attachments hereto.

In the event of the termination of this AGREEMENT pursuant to Clause 10.1 above, any amounts still owing
to the CONTRACTOR at the time of such termination for services already rendered and/or materials
delivered and take over by the OWNER by reason of such termination and the payments of such damages
by the CONTRACTOR.

ARTICLE IX
Liquidated Damages
Upon termination of this Agreement pursuant to these provisions, the OWNER shall no be liable to make
any payment to eh CONTRACTOR except for the work or services performed or expenditures incurred
prior to the date of such termination.
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ARTICLE X
Force Majeure and other Causes
In the event of force majeure resulting in suspension of work, on this Agreement shall be extended by a
period equal to that for which the CONTRACTOR was presented form performing.

ARTICLE XI
Change Order and/or Additional Work
Should the OWNER find it necessary to have any additional work carried out for the purposes of the
Project in addition to the contracted work, a written authorization of the OWNER reflecting the
adjustment in terms of the additional costs and completion date or both by written amendment to the
Contractor shall be issued before such additional work is commenced.

ARTICLE XII
Compliance with Laws, Ordinances, etc.
The CONTRACTOR shall comply with all the laws, ordinances and regulations of both national and local
government applicable to or binding upon the parties hereto, the works by this Agreement, or the persons
engaged in the performance and accomplishment of the works covered by this agreement, and shall be
totally responsible for all damages to the OWNER, for the non-observance of such laws, ordinances and
regulations.

ARTICLE XIII
Acceptance of Work
No act of the OWNER or any representative of the OWNER superintending or directing the work or any
extension of time for completion of the work, shall be regarded as an acceptance of such work or any part
therein, either wholly or in part. Final Acceptance shall be evidence only by the CERTIFICATE OF WORK
COMPLETION of the OWNER. Before any CERTIFICATE OF WORK COMPLETION, the CONTRACTOR shall
execute as affidavit that he/it accepts the same in full payment and settlement of all claims on account of
work done and materials furnished under this Agreement and that all claims for materials provided or
labor performed have been paid and set aside in full.
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ARTICLE XIV
Warranty
The CONTRACTOR warrants that it has not given nor promised to give any money or gift to any official or
employee of the OWNER to secure or otherwise obtain this Agreement and any violation of this warranty
shall be sufficient ground for the revocation or cancellation of the Agreement.

ARTICLE XV
Breach and Venue
Any suit or preceding which either party may in virtue of, or in relation to or in any way connected with
this Agreement, shall be filed with the proper courts of the National Capital Region.

ARTICLE XVI
Effectivity
This Agreement shall take effect immediately after receipt of Notice to Proceed from the OWNER.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this _________ day of
_________________, 2022 at __________________________________________________________.

OWNER: CONTRACTOR:

MN+LA MITSUKOSHI BGC PHILIP LEO S. DANAO

MR. FRANCIS MENDOZA

EDZEL MIKO D. SINOCRUZ

ARVIN DAVID N. VALDEZ