111120n_02

Projecl No. 2: Proposed Constructon

of 4-Sto{ey - 1 6 Classrooms School
Building. 8rgy. San Jose, Cebu City

CONSTRUCTION AG REEM ENT

KNOW ALL MEN BY THESE PRESENTS:

The CEBU clTY GoVERNMENT, a local government unit duly

organized as an independent component
city by virtue of commonwealth Act. No. 58 as amended
by Republic Act No. 3g57, conducting its affairs as a
government at the Cebu City Hall cor. Magallanes
St. and M.C. Briones St., Cebu city, ieou July represented by the
office of the Mayor, HoN' EDGARDO c' LAB| Lll oy virtue oiitr p9ry., under section 20, Article il of Repubtic
Act' No' 3857, through the office of the city Administrator,
ATTY. ilono e. CASAS ti., oibgar age, married, by
virtue of the authority granted unto him by the Ofiice
of the Mayor nereinatter referred to as the ,,FIRST pARTy,,,

-and-

QUIRANTE coNSTRUcTloN coRPoRATloN, a corporation duly

organized and existing under the laws
of the Republic of the Philippine^s, with principal office address
at Sitio Cayam, ioron City, 1rg., c.or, represented
herein by Engr. Jonathan.M..Quirl{e, of iegal age, Filipino
Naga, Cebu, herein after called the ,SECO TD peniV',
and with office addresr ii sit[ cayam, coton city,

The City of Cebu and QUIRANTE coNSTRUcTloN CoRPoRATloN,

shail hereafter be collectivety
referred to as the'PARTIES'.

WITNESSETH

WHEREAS, the FIRSf PARTY has awarded to the SECOTTID PARTY

the infrastructure project known as
Proiect No. 2: Proposed Consfruction of 4-Storey 16 Classrooms Schoo/
- Auiding 11.0m x g.ym), Brgy. San
J.ose, Cebu Cify (herein referred to as the "PROJEaI"); at the above address
in accordance with and as indicated in
the working Drawings, Plans and specifications prepared for the "F/Rsr pARTy'by
the city Engineer with the
conformity of the SECOIVD pARTy;

WHEREAS, the SECoi/D PARTY has represented and wananted itself

as a competent, capable and duly
licensed Contractor and has offered to do Project works in accordance with
the working drawings, plans and
specifications as provided under the terms and conditions set forth hereunder;

WHEREAS, the F/RSf PARTY has accepted said offer of the SECOND PARTY,Io
undertake the above-
stated infrastructure prolect subject to the terms and conditions provided herein;

WHEREAS, bidding has been conducted on November 17,2020 wherein all bids were
evaluated and that
after a complete and final evaluation by the BAC-INFRA Technical Working Group, it
was determined that the
SECOM PARTY has the Lowesf Calcutated Responsive Bid (LCRB) in ihe amoun I of Twenty-Eight
Milion
Seven Hundred Ninety Thousand Four Hundred Seven Pesos ancl 50/100 (Php 2B,lg0,lOi.SO)i philippine
Currency;

WHEREAS, the Bids and Awards Committee -lnfrastructure (BAC-INFRA), through its
Resolution No. 2020-
27 daled December 1,2020 has recommended to the City Mayor to award the PROJECT
tothe SECOIVD pARTy:

WHEREAS, the BAC-INFRA had recommended to the Sangguniang Panlungsod to authorize

the Honorable
city Mayor or his duly
authorized representative to enter into contract with QUIRANTE coNSTRUcTloN
CORPORATION for the infrastructure project known Prol'ecf No. 2:.Proposed Construction of tt-Storey
16
Classrooms School Building (7.0m x 9.0m), Brgy. San Josg Cehu Cig for the contract price of Twenty-Eight
-
Million Seven Hundred Ninety Thousand Four Hundred Seyen Pesos and i0/100 (Php 2B,Tg0,iOl.iO1,
Philippine Currency;

WHEREAS, the Sangguniang Panlungsod has authorized the Honorable City Mayor or his duly authorized
representative to enter into contract with QUIRANTE coNSTRUcTloN coRpoRATloN per Sangguniang
Panlungsod Resolution No. 15- 351 -2021 dated Februa
ry 5, 2021,
 fi17Nn-02
Project No. 2: Proposed Consfuction
of +Storey - 16 Classrooms Schml
Building, Brgy. San Jose, Cebu City

NOW IHEREFORE, for and consideration of the foregoing premises and of the mutual covenants and
stipulation hereinafter contained and set forth, the parties hereto agreed as follows:

ARTICLE I
PROJECT NAME

Section 1. The project is known as Project No. 2: Proposed Consfruction of 4-Storey - 76 Classrooms
School Building (7.0m x 9.0m), Brgy. San Jose, Cebu City;

ARTICLE 1I
LOCAT]ON OF THE PROJECT

Section 1. The prolects is located in Barangay San Jose, Cebu City

ARTICLE III
PROJECT COST

Section 1. The PARTIES hereby agree to the total consideration for the PROJECT in the amount of
Twenty-Eight Million Seyen Hundred Ninety Thousand Four Hundred Seven Pesos and 50/100 (Php
28,790,407.50), Philippine Currency and to the terms of payment embodied in this Agreement.

Section 2. The Contract Price shall include any and all cost and expenses for labor, materials, equipment,
tools, mark-ups and profit, all forms of taxes and all other expenses required in the construction, building and
completion of the PROJECI.

Section 3. The approximately or estimated quantities listed in the Bill of Quantities of the Contract
documents do not govem final payments.

Section 4. Payment to the SECOND PARTY will be made only for the actual quantities of the pay item of the
Contract certified by the Engineer in accordance with the Plans and Specifications.

ARTICLE IV
SCOPE OF WORK

Section 1. The work to be undertaken by the SECOIVD PARTY under this Agreement shall include:

a. Construction of 4-Storey - 16 Classrooms School Building (7.0m x 9.0m) until completion

hereof;
b. Furnishing and supplying of all the necessary personnel / labor, materials, equipment and
provision of temporary facilities such as field office, storage, barracks, bunk houses, temporary
fences / barricades, sanitary facilities and temporary electrical facilities, equipment, tools,
plants and all other incidental facilities needed, as well as supervision and control of every
aspect of the project to ensure timely completion of all works in accordance with the Approved
Program of Works and estimates, Conditions of the Contract, plans, Technical Specifications
and other Contract documents including addenda, if any.

Section 2. The SECOND PARTY agrees to undertake the PROJECf simultaneously for Two Hundred Ten
(2101 Calendar Davs. This period remains fixed unless additional time is allowed by the FIRSI PARfY to the
SECO|: PARTY in writing

ARTICLE V
COMMENCEMENT OF WORK

Section 1. The SECOND PARTY agrees to begin work within seven (7) calendar days following the date of
issuance and receipt of the Notice to Proceed. Within the seven (7) day period, the SECOITJD PARTY shall advise
the City Engineer of the actual date of the commencement and the projected date of completion of the PROJECL

Page 2 of 7
 rtTNn-02
POtrt No. 2: Proposed Construclion
ol4-Storey - 16 Clss{@ms Schml
Building, Brgy. San Jose, Cebu City

Section 2. The SECOND PARTY shall complete the mobilization of all necessary equipment and personnel
prior to the Commencement Date in order to ensure completion of the PROJECf within the period for in Article lV.

ARTICLE VI
OBLIGATION OF THE FIRST PARTY

Section 1. The FrRSI PARTY shall ensure that all necessary permits, authorities and / or licenses are
secured beforehand to avoid any delay in the commencement of the PROJECI.

Section 2. For the purpose and satisfaction and full completion of the PROJECT the FIRSf PARTY hereby
warrants that the City Budget Officer and City Treasurer have certified the sufficiency and availability of the Approved
Budget for the Contract.

Section 3. The FrRSI PARTY warrants that competitive procurement was conducted on November 17,
2020 and the BAC-INFRA Technical Working Group had evaluated the different bidders as well as their respective
bids.

Section 4. The FIRSI PARTY shall pay the SECOT'ID PARTY the amount Twenty-Eight Million Seven
Hundred Nineg Thousand Four Hundred Seven Pesos and 501100 (Php 28,790,407.50), Philippine Cunency;

ARTICLE VII
OBLIGATION OF THE SECOND PARTY

Section 1. The SECOND PARTY hereby agrees to undertake the aforementioned PROJECf in accordance
with the Approved Program of Works and Estimates, Conditions of the Contract, Plans, Technical Specifications and
other contract documents including addenda, if any.

Section 2.Prior to the execution of this Contract, the SECOIVD PARfYshall post a Performance Security in
the amount specified in the Bid Data Sheet of the Bidding Documents to guarantee the faithful performance of the
SECOITD PARTY of its obligations under the contract.

Section 3. The SECOND PARTY agrees to begin work within seven (7) calendar days following the date of
issuance and receipt of the Notice to Proceed as mentioned in Section 1 of Article V of this Agreement.

Section 4. The SECOM PARTY shall continuously maintain adequate protection of all properties and
materials to be used or used in the PROJECf against theft, robbery, pilferage or fire or any cause of damage or loss,
and shall be responsible and fully accountable for such damage or loss.

Section 5. All
machineries, tools, equipment necessary for the commencement, performance and
completion of the PROJECf shall be provided by the SECOND PARTY at their own cost of expenses, Any other
expenses incurred shall be considered part of the Contract Price.

Section 6. Any defect arising from or in connectlon with the development works shall be the sole
responsibility of the SECOND PARTY.In such event, the SECOilD PARTY hereby undertakes to rectify such defect
(s) at its own cost to the satisfaction of the FIRSf PARfY.

Section 7. The SECOITD PARTY shall take all the necessary precautions to ensure the safety of its
employees. lt shall likewise comply with all applicable laws on safety of its workers including, but not limited to, the
Labor Code and the Building Code of the Philippines. ln the performance of its obligations under this Agreement, the
SECOM PARIYshall take measures to prevent accidents, death and / or injuries to all persons.

Section 8. The SECOND PARN shall ensure that all its personnel shall wear proper uniform and use
personnel protective gear at all times for safety purposes. Working hours shall be from 7:00 in the morning until 5:00
in the afternoon. Noisy works shallonly be performed from 10:00 in the morning until6:00 in the evening.

Section 9. Any injury to or death of persons or damage to property arising from, in connection with, or as a
result in the construction works shall be for the sole account of the SECOND PARTY.

Section 10. The SECOfVD PARTY shall perform everything necessary forthe completion and successful
Construction of the aforesaid PROJECf. The principal works to be performed under the specifications shall include
works described in Annex 1

Pag e
 1117202G02
Prqecr No 2 Prcrosed Col6rElion
ol 4-Sbrer - 10 Clssroons &hod
Buldnq &gy Sai Jos€, Cebu Crry

Section 1'l The SECO/VD

ffRIY shall submit seven (7) copies of
electronic file upon completion of the PROJECI
as built -plans with btueprinls and

ARTICLE VIII
TIME COMPLETION / TERMINATION

Section 1. The SECO/VD PARIY shall complete the PROJECI within Two Hundred Ten (210)
Calendar
Davs. Thereafter, the sEcO/vD PARry shall immediately deliver the same to thJpe-liEiilid
the F/RSf PARIY and to the complete satrsfaction of the latter. Any disruption
E ffiession of
of work due to fortuitous events shall
not be taken against the SECO/VD pARfy.

Section 2. Time is of the essence in the performance of this Contract. lf the SECO/VD pARfy
fails to
complete all the works to the F/RSf PARfy'S full satisfaction within the period specifled herein,
the parties hereby
agree and acknowledge that any such delay would cause damage to the end users. ln
such eveni, for each calendar
day of delay, the SECO/VD PARIY should be liable for liquidated damages in the amount
equivalent to 1/1grh of one
(1) percent of the cost of the unperformed portion for that day. Any sum
iccruing in favor of the FIRSI pARTy under
this Agreement shall be deductible from the Contract pnce or any'balance thereof.

3. Notwithstanding the foregoing, the F/RSI PIRfY may terminate this Agreement jf the SECOTVD
_ _ __. _ .Section
PARfy incurs delay for more than seven (7) days in any phase of the PROJECT and basjd on the Work Schedule
annexed hereto, or in the event of any substantial deviation made by the SECOTVD PARIyfrom
the approved plans.
Should the FIRST PARTY elect to terminate this Agreement, it may engage the services of anoiher qualified
contractor to complete and/or correct the works, the cost for which shall be foi the account of the SECOND pARTy.

Section 4. The FrRSf PARTY al any time can terminate the Contract if the SECO/VD PARfy does not
show satisfactory progress in the Works, and has already incurred a negative slippage of fifteen (1Syd percent or
more based on contract duration, regardless of whether or not previous warning and notices for lt to improve its
performance has been issued.

ARTICLE IX
COMPLIANCE WITH LAWS AND REGULATIONS

Section '1. The PARIIES herein shall comply with all laws, acts and regulations of the Philippine
Government, national or local, relating to the performance, completion and delivery of the pRoJEcr.

Section 2. ln case of any violation thereof, the SECO/VD PIRry shall be fully responsible and accountable
to the F/RSI PARfYand agrees to remedy the violation at his own expenses.

Section 3. The SECOTVD PARfY agrees to answer for all penalties for violations committed by it or by its
employees, representatives and personnel, whether they are in the performance of their work or not.

ARTICLE X
WARRANTY AND ACCEPTANCE

Section 1. Upon Completion of the PR0JECf, the SECOND PARfY agrees that the FIRSf pARfy can
immediately use or enjoy its use. However, the FrRSI PARIy reserves the right to inspect and determine for itself
whether the works done were all in accordance with the terms of this Agreement, as well as the approved plans and
specifications. Should there be any defect in the installation or noi-compliance with the appioved plans and
speciflcation, the SEColtlD PARIYshall immediately correct the defect at its own expense.

Section 2. The SECO/VD PARfY represents and warrants that the performance and construction on the
!p{eCf]9 in conformity with the approved Programs of Works, drawings, plans and specification prepared by the
FIRST PARTY.

Section 3. The SECO,VD PARfY warrants that all materials shall be properly used, installed and/or
incorporated and shall ensure the completeness, workmanship and quality of the work done. All wananties specified
herein shall be govemed by Section 62 of RA 9184, the Government Procurement Reform Act and its lmplementing
Rules and Regulations.

Section 4. Within the warranty period, the SECO/VD PARfY shall respond to and send the appropriate
technical personnel to rectify or address defects or issues raised by the FTRST PARTY. The SECO,VD pARlyshall
act within ninety (90) days u n the issuance of order from the FrRSf PARfY to undertake repair
 1117n2042
Roj€ct ib 2 P.oposed Co.6tucdon
of4.Sto/ey - tO CiassoodE Schoot
SuildlnO, &gy San Jos€, Cebu Crly

Section 5. Notwithstanding. the foregoing, the standard responsibilities

and wananties of a contractor
provided for under the Civil code of the Philipp-ineslr
part of this Agreement and binding upon the iARIIES.
other d;;ri6.,
rutes and regutations sha be deemed as

Section 6 The SECO/VD PARTY shall ensure the completeness,

workmanship and quality of the work
done. shoutd any compraint or issue be brought to their atteniion
construction and before the expiration of the wairanty period,
ry tre nnsi irinii.i-.ni tr.
o*rrg
the sEcoIvD pARry sh.ti ildily ;;;no
to ano
send the appropnate technical personnel to rectif or iddress
defects oiissues ralseo uy tne pnsi el-nil.

ARTICLE XI
DISCLOSURE OF RELATION

l The sEco rD PARTy shall disclose and give complete list of owners, directom, stockholders,
Section
m.:vPe, duly authorized representJtive and rheir retatives within
lllt:: tfl:::,:blood!1ec€:e
or by affinity,. or business relation / affiliation, with any
ttre 4," civit aesree, wno
T]9je9]'91by director, ofiicer and employee of the
F'RSI PARryand its affiliates subsidiaries, even if the same relation has been terminated *itni, nr. 151l.rm from
lhe date of the execution of this Agreement. said rist shail be updated periodicaily
and wh.t r;; ;r.;;r:.i:'
ARTICLE XII
CONTRACT DOCUMENTS

Section l The contract Documents are those specillcally mentioned in Section

37.2.3 of lmplementing
Rules and Regulations of Republic Act No. 9184, otherwise kno*n
m th. Gou.rrent procurement Reforfir nct.
Section 2 ln addition to those documents mentioned above, the othersupporting
documents are as follows:
a. Duly Approved program of Works and Cost Estrmates;
b. Approved Budget for the Contract (ABC) / Certificate of Availability of Funds
c. Abshact of Bids
d. Resolution ofthe BAC recommending Award
e. Approval of the Award by the Head of the procuring Entity

ARTICLE XIII
INCORPORATION BY REFERENCE

Section 1. The General Conditions and Special Conditions of Contracts as

ouflined in the standard Bidding
Documents prepared jointly by the Department of Budget and Management,
the Govemment procurement policy
Board and the Philippine Government Electronic Procure-ment System
ire hereby deemed incorporateo anJmaae an
integral part of these Contract Agreement by the way of reference, where
applicable.

ARTICLE XIV
MISCELLANEOUS PROVISION

Section l
The SECO TD PIRIY shall allow the presence at the Project Site of the representatives
of the
FIRST PARTY in all occasions for the whole duration oi the project or as
ihe Engineer may deem proper and
appropriate.

Section 2. The SECO/VD PIRfY shall provide facjlities for disabled persons (such
as ramps) as means of
access lo level of changes going to entry points, lobbies and entrances, influenced by condition
of location or use.

3. The apparent silence of the Specifications, Plans, Special Provisions and Supplementary
^ _ Section
Speciflcations as to any detail or the apparent omission therein of a detailed description or definition
of t'he quality of
materials or workmanship, shall be regarded to mean that only materials and workmanship of first
class quality ar! to
be used or employed, and reference shall be made to the standards set forth by the Department of public
Works and
Highways (DPWH) or the Department of rransportation and community (DoTi), as the case maybe.

Section 4. The Contract Documents are complementary and what is called for by one shall be as binding as
if called by all.

Page 5 ol7
 t117mm{2
Prcjeluo 2 F.opoed Cocn6ion
ol +Stor€, - 16 ClNms S.hod
Boildi.g Brgy Sai Jose. Cebu Cr,

Section 5. ln case of discrepancy, defective description, enor, omission or ambiguity between or in any of the
Contract Documents, the following shall be the rule of interpretation.

a. The Drawing shall govern over the General Conditionsi

b, The Special Conditions shall govern over the General Conditions and the Drawings;
c. The Specifications shall govem over the Special Conditions, the General Conditions, and the Drawing;
d. The Detailed Drawings shall govem over the General Drawings;
e. Figures written on drawings shall govern over the scaled drawing themselves.

Section 6. lf the SECOND PARIy, either before commencing the works or during the execution thereof,
discovers discrepancies, errors or omissions between or in any Contract Documents or in case of any question
conceming the meaning of the Contract, it shall promptly notify the FrRSf PARTY thereof in writing and the FIRSI
PARIY shall investigate the matter within ten (10) days from receipt of such Notice and give appropriate orders or
instructions to the SECOND PARTY.

Section 7. The SECO/VD PARfY shall not perform any affected portion of the works after the discovery of
the discrepancy, error or omission until receipt of the order or instruction from the F/RSI PARfy, othen iise the
SECOTVD PARfy'S Performance thereof shall be at his own risk and bear any additional cost resulting therefrom.

ARTICLE XV
SETTLEMENT OF DISPUTES

Any and all disputes arising from the implementation of the aforementioned pojects covered by this
Contract shall be governed in accordance with the laws on settlement of disputes provided under Section 59 and 60
of R.A. 9'184, otherwise known as the Government Procurement Reform Act and its lmplementing Rules and
Regulations.

ARTICLE XVI
EFFECTIVITY AND TERIVI

The Contract shall take effect after the requisite approvals from the authorized pemons shall have been
secured. lt shail be valid for a period of 210 days from the effectivity date specilled in the Notice to proceed (NTP),
unless extended in wnting.

/rV ],y/I TESS WHEREOF, the parties hereto affixed their signatures this Fb. P, ao21
at Cebu City, Philippines.

CEBU CITY GOVERNMENT QUIRANTE CONSTRUCTION CORPORATION

First party Second Party

EDGARDO C. LABELLA Rep

City Mayor

Represented by: ENGR. JON . QUIRAN

ATTY. FLORO JR.

City Adminishato
As authonzed he Office of the City Mayor
Hon. Edgardo Labella through Mayor's 0rder
N0.002-07-2019 & Per SP Resolution No 15-1351-2021

SIGNED IN THE PRESENCE OF

Page 6 ol7
 1't1720tu02
Project No. 2: Proposed Construction
of4-Storey - 16 Classrooms School
Building, Brgy San Jose, Cebu City

ACKNOWLEDGMENT

REPUBLTC 0F THE PHtLtPPtNES)

crTY 0F CEBU )S S

BEF0RE ME, a Notary Public for and in the Cities and Province of Cebu, this tEB 1z2a2l
personally appeared Floro Q. Casas Jr. with Employee lD No. 51 455 in his capacity as the City Administrator and
Engr. Jonathan M. Quirante with lD No. PrL'qw?l in his capacity as representative of QUIRANTE
CONSTRUCTION CORPORATION, known to me and to me known to be the same persons who have executed this
instrument and acknowledged to me that the same is their free and voluntary act and deed and that of the institutions
to whom the PARIIES represents.

This instrument refers to the Construction Agreement consisting of seven (7) pages, including this page
signed by the parties and their material witnesses.

lyrfNESS MY HAND AND SEAL, on the date and at the place first herein above written.

Doc. No.
Page No. BLIC
Book No.
Series of 2021. I{T'[Y. GIO\: i0
IIOTARY

IIOTATlNL N0.1l}15-1e :l
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Page7 oll