20230418 RII and PCJ TSA Labor for the Pipe Laying Works at Jocson Area of QC East SNP2

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TRADE SUBCONTRACT AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This instrument executed and entered into on this ________day of __________________ at

______________________ by and between:

R-II Builders, Inc., a corporation created and existing under the laws of the Republic of the
Philippines, with office address at R-II Building, 136 Malakas Street, Diliman, Quezon City, represented herein
by its President & COO, Gerardo P. Catindoy, hereinafter referred to as the “CONTRACTOR”.

-and-

PCJ’s Contruction Services. a corporation created and existing under the Laws of the Republic of the
Philippines, with address at 1 Cornelio Melendrez Taytay, Rizal, Philippines, represented herein by its
President, Pedro M. Conde Jr. hereinafter referred to as the “SUBCONTRACTOR”.

W I T N E S S E T H That:

WHEREAS, RII is engaged in the general construction business, and is presently undertaking the construction works of
the:

Name of Project : Construction of Quezon City East Sewer Network Package 2

Location : Marikina City

Owner : Manila Water Company Inc.

and is in need of a Subcontractor who can undertake a portion of its construction works of the project as specifically described below
under the Scope of Works and Services (hereinafter referred to as the Works);

WHEREAS, the Subcontractor represents to have the necessary expertise, experience, skill, competence and financial
capability to do the Works, and has offered to undertake and do the same, and which offer RII has accepted subject to the
stipulations, terms and conditions hereinafter contained;

NOW, THEREFORE, for and in consideration of the foregoing premises and of the terms and conditions herein below
stipulated, the parties hereto do agree as follows;

ARTICLE I
CONTRACT DOCUMENTS

1.1 This Instrument, together with the list of documents enumerated in Section 1 in the hereto attached Annex “A” -
Special Conditions, and which are all hereby made integral parts hereof or incorporated herein by reference, insofar
as the documents therein mentioned have not been modified nor become inconsistent with Annex “A”, comprise the
entire contract between the parties. All terms and conditions of this agreement are governed by this Trade
Subcontract Agreement and the Annex “A” hereof. Should any provision of Annex “A” be inconsistent with any
provision of this Trade Subcontract Agreement, the provision of Annex “A” shall prevail.

ARTICLE II
SCOPE OF WORKS AND SERVICES

2.1 The specific Works to be prosecuted and performed by the Subcontractor are fully enumerated and described in
Section II of Annex “A” – Special Conditions hereof. The Subcontractor shall do the Works strictly in accordance with
the approved drawings, plans and specifications of the Owner.

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ARTICLE III
CONTRACT PRICE & TERMS OF PAYMENT

3.1 In consideration of the true and faithful performance and completion of the Works, RII shall pay the
Subcontractor the contract price agreed upon and specified in Section III of Annex “A” – Special Conditions.

3.1.1 If an advance payment is expressly agreed upon in Annex “A” hereof, the Subcontractor shall submit a
Surety Bond, issued by a bonding company acceptable to RII equivalent to the amount of the advance
payment. The advance payment shall be recouped every progress billing thru pro-rata deductions
based on evaluated percentage of accomplishment.

3.1.2 Balance payment shall be paid thru bi-monthly progress billings less Ten (10%) Percent Retention and
Two (2%) Percent Expanded Withholding Tax, according to actual work accomplished through billing
submitted by the Subcontract and approved by RII’s Project Manager. Payment to billing by the
Subcontractor shall be made within Fifteen (15) calendar days from receipt by RII Head Office of the
signed Subcontractor’s Payment Certificate with complete attachments.

3.2 All billings submitted by the Subcontractor to RII shall be subject to Ten (10%) Percent Retention and Two (2%)
Percent Expanded Withholding Tax (EWT), of which the final computation shall be based on the Total Contract
Price.

3.3 The retention money shall be released to the Subcontractor within 12 months from completion, as certified by RII
Project Manager. Should the Subcontractor opt to request for release of retention earlier than the 12 months
from completion, the Subcontractor is required to post Guarantee Bond with an amount equal to Ten percent
(10%) of the final subcontract price.

3.3 The Subcontractor shall support its progress billings with a sworn affidavit that it has fully paid all persons or
parties who have done work and other inputs on the works accomplished. This is a mandatory requirement and
is a condition precedent for the payment of progress billings.

3.4 RII may hold any amount due to the Subcontractor as it may deem necessary to meet any lawful claim of any
person or party against the Subcontractor.

3.5 All items of works which are deleted shall be deducted from the contract price and all works to be done not
included in the contract price shall be correspondingly added. No restriction shall vitiate the contract. This
contract price shall be fixed and non-escalatable, unless otherwise provided for in the Annex “A” - Special
Conditions.

3.6 The Value Added Tax (VAT) is included in the contract price. The Subcontractor shall pay all other taxes
imposable under this Subcontract and all existing and applicable laws.

ARTICLE IV
TIME OF COMPLETION & DAMAGES

4.1 The Subcontractor shall complete the Works within the time set for completion as specified in Section IV of
Annex “A” – Special Conditions, including all agreed changes and revisions contained in Article V below, and in
further conformance to the detailed work schedule (hereinafter called the Work Schedule) submitted by RII and
approved by owner.

The Subcontractor shall have signed the approved Work Schedule together with the Letter of Award (LOA) from
RII. The approved Work Schedule shall be a condition precedent to any payment to be made in favor of the
Subcontractor under this agreement.

4.2 The Subcontractor shall not assign or transfer the Works or any portion thereof to a Third Party without the
written consent of RII

4.3 If the progress of the Works does not conform to the Work Schedule or if RII considers it desirable or necessary
to change the Work Schedule to catch-up with the Works, RII can instruct the Subcontractor to revise the Work
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Schedule. Such revised Work Schedule shall be signed by the Subcontractor within five (5) days from receipt by
Subcontractor of the written instruction of RII

4.5 A Certificate of Completion will only be issued by RII to the Subcontractor only after the issuance by MWCI to RII
of a Certificate of Completion for the entire Project. In the same way, a Final Acceptance will be issued by RII to
the Subcontractor only after the issuance by the owner to RII of a Final Acceptance for the entire Project, which
is after end of the Defects Liability Period or One (1) year from project completion.

4.6 It is understood and agreed that time is of the essence of this Subcontract and that in case the Subcontractor
fails to complete the Works within the stipulated time due to its own fault, the Subcontractor shall pay RII one-
tenth (1/10) of one (1%) per cent of the remaining Scope of Work for each day of delay until completion of the
Works as liquidated damages. The maximum amount of liquidated damages shall not exceed Ten (10%) Percent
of the remaining Scope of Work.

4.7 In the event that RII perceives that a delay may be incurred in the Works (excluding delays due to variation
orders, changes in the Works, or delays not attributable to the Subcontractor), it will so advise and direct in
writing the Subcontractor to, within seven (7) days, remove the cause of such delay perceived or so incurred due
to its own fault. RII may assist the Subcontractor in the removal of the delay or in the event that the
Subcontractor is unable or unwilling to remove such delay, then RII may take over the remaining works with all
costs chargeable to the Subcontractor plus ten (10%) percent as add on-cost.

4.8 If during the progress of Works, RII is hall, in writing, advise the Subcontractor of any defects in the Works
resulting from workmanship or material, then the Subcontractor shall promptly and in not more than seven (7)
days remove or commence the removal of such defective works.

If the Subcontractor refuses or persistently neglects to remove the defective work, RII shall give further and final
notice for the rectification or removal of such defective works within seven (7) days.

If the Subcontractor fails to do so, RII may:

4.8.1 Carry out the works itself or by others at the Subcontractor’s risk and cost. The cost incurred by RII in
remedying the defective work shall be for the account of the Subcontractor together with an addition of
ten (10%) percent as add on-cost; or

4.8.2 Impose a reasonable reduction in the Contract Price, to be agreed or fixed by

arbitration under Clause13.1; or

4.8.3 If the damage or defective work is such that RII has been deprived of substantially or the whole of the
benefit of the Works or a part thereof, he may terminate the Trade Subcontract in respect of such parts
of the Works that cannot be put to their intended use. In addition to remedies available to RII as
provided for in Clause 10, RII, shall be entitled to recover all sums in respect of such parts of the
Works together, with the cost of dismantling/ demolition of the same, clearing the site and returning the
materials and equipment to the Subcontractor or otherwise disposing of it in accordance with the
Subcontractor’s instruction.

4.8.4 In the event of the Subcontractor’s default under Article 4.7, 4.8 or Article 10 of this Trade Subcontract,
RII shall, collate and make available for the Subcontractor’s inspection such cost that are to be
charged against the Subcontractor by RII in connection with his default. In the event that the
Subcontractor does not avail of this right to inspect, then the Subcontractor does, therefore,
acknowledge that he waives his rights to reject such cost.

ARTICLE V
INSPECTION, CHANGES AND REVISIONS IN THE WORKS

5.1 The conduct of the Work shall at all times be subject to inspection by RII or its authorized representative. RII
shall have the right to inspect the progress of the Work to ensure that the Work is done in accordance with the
Trade Subcontract, the specifications, and acceptable international engineering practices. Subcontractor shall
comply with all reasonable instruction by RII on the performance of the Works.
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Such inspection, examination or testing shall not release the Subcontractor from any obligation under the Trade
Subcontract should it be subsequently established that the Works are not in accordance with the approved
drawings, plans and specifications of this Trade Subcontract.

5.2 The Owner may order changes or revisions in the Works. In such eventuality, RII shall inform the Subcontractor
in writing of such changes or revisions. Accordingly, any consequential increase or decrease in contract price
including adjustment in the period of completion shall be discussed and agreed upon by the parties. The
Subcontractor shall not implement any change or revision without a written order from RII.

5.3 RII may, thru Variation Order to the Subcontractor at any time before the Works are taken over, instruct the
Subcontractor to alter, amend, omit or add to or otherwise vary any part of the Works subject to the discussion
and agreement of the parties that would include price adjustment and period of completion as applicable. No
addition or deletion to the Work shall vitiate this Trade Subcontract.

5.4 On receipt of a Variation Order, the Subcontractor shall forthwith proceed to carry out the variation and be bound
to these conditions in so doing as if such variation was stated in the Trade Subcontract.

5.5 Subcontractor shall, submit to RII the price for all the works contained in the variation Order, pending the
finalization of the terms and conditions of the Variation Order, which shall be agreed upon within seven (7) days
upon receipt of such proposal, by both parties.

ARTICLE VI
TIME EXTENSION

6.1 The Works shall be completed within the period of time as indicated in Section IV of Annex “A” - Special
Conditions, subject to any time extension duly granted by RII under Article VI.

The Subcontractor may claim an extension of the Time for Completion subject to approval of RII if he considers
that he will be delayed in completing the Works by any of the following causes:

6.1.1 Changes in the Works or construction program ordered by Variation Order by RII;
6.1.2 Delays due to force majeure or fortuitous events such as fires, floods, droughts, earthquakes,
typhoons, epidemics or unavoidable calamity;
6.1.3 Act of any governmental authority, domestic or foreign, such as war, priorities, quarantines,
embargoes, licensing controls on production or distribution restriction;
6.1.4 In general, by other causes or events beyond the reasonable control of the Subcontractor or by any
act, neglect, delay or default on the part of RII

In case of a force majeure status lasting for more than thirty (30) days, the Subcontractor and RII will meet to
reach proper agreements taking into account the existing situation.

It remains understood that “rainfall” or “bad weather conditions” shall not be made a basis for time extension
since the same are inherent in the seasonal variation of the climatology of the country.

The Subcontractor shall give to RII notice of his intention to make a claim for an extension of time within seven
(7) days from date of occurrence of the force majeure or fortuitous event. The notice for claim for an extension of
time shall be made with full supporting details.

RII shall, after due consideration of all the facts, and provided that the Subcontractor has submitted his claim
according to the foregoing, grant the Subcontractor from time to time, either prospectively or retrospectively,
such extension of time for completion as may in its opinion be justified.

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ARTICLE VII
PERMISSIBLE DELAY

7.1 Force Majeure / Fortuitous Events

Delay caused by “Force Majeure” or Fortuitous events including but not limited war, hostilities, whether war, be
declared or not, invasion, act of foreign enemies, rebellion, revolution, insurrection, military or usurped power,
civil war, strikes, earthquake or other occurrences beyond the control of man, shall be considered permissible
delay and shall be excluded in the counting of delay, provided that the Subcontractor is free of any negligence or
fault and has exhausted all remedies to correct, forestall or minimize the delay. Unworkable condition duly
certified by the Project Manager of RII is considered permissible delays.

7.2 If either party considers that any circumstances of Force Majeure have occurred which may affect performance
of his obligations, he shall promptly notify the other party.

7.3 Upon the occurrence of any circumstances of Force Majeure or fortuitous event, the Subcontractor shall
endeavor to continue to perform his obligations under the Trade Subcontract so far as reasonably practicable.
The Subcontractor shall notify RII of the steps he proposes to take, including any reasonable alternative means
for performance which is not prevented by Force Majeure. The Subcontractor shall not take any such steps
unless directed to do so in writing by RII

7.4 It is the obligation of the Subcontractor to notify RII in writing of any event that would cause or have caused the
delay in the performance of its obligations, within seven (7) days after occurrence of such event.

7.5 The failure of the Subcontractor to notify RII of any event that causes delay within the seven (7) days period as
given in Article 6.1 shall be considered a waiver by the Subcontractor to claim that such an event is one that may
constitute permissible delay.

ARTICLE VIII
GUARANTEE / WARRANTY

8.1 The Subcontractor guarantees and warrants that it shall truly and faithfully perform the Works strictly in
accordance with the Contract Documents and the terms and conditions of this Trade Subcontract in an efficient
and orderly manner and free from defects for the period and manner stipulated in the Main Contract. The
Subcontractor acknowledges that he had sight of the Main Conditions of Contract (excluding pricing details) prior
to agreeing to the Contract Price.

ARTICLE IX
CLAIMS, LIEN & ENCUMBRANCES

9.1 The Subcontractor shall hold RII free and harmless from any and all claims, demands, causes of actions or suits
of any nature whatsoever, arising from its performance of the Works and for its failure to comply with the
provisions of this Trade Subcontract.

The Subcontractor shall strictly comply and observe all laws on SSS Coverage, Philhealth, Employees
Compensation for injuries, Minimum Wage and the Labor Code of the Philippines.

9.2 It is understood and agreed that all workers, laborers or employees of the Subcontractor are in no way those of
RII, and RII shall not be responsible for any claim for personal injury by an employee of the Subcontractor, which
shall hold RII free and harmless from any and all actions of its workers arising from these claims.

ARTICLE X
TERMINATION OF CONTRACT AND TAKE OVER WORKS

10.1 RII shall have the right to terminate the Trade Subcontract and take over the Works if the Subcontractor is not
executing the Works in accordance with the Trade Subcontract Agreement or is neglecting to perform his
obligations there under so as to seriously affect the carrying out the Works. RII shall give notice to the
Subcontractor requiring him to make good such failure or neglect,
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If the Subcontractor:

10.1.1 has failed to complete the Works in time (unless the Works have been ordered stopped by the Owner)
or has incurred the maximum amount of Liquidated Damages under Article 4.6;

10.1.2 assigns the contract or subcontracts the whole or part of the Works without RII’s written consent as
stated under Article 4.2;
10.1.3 is willfully violating any of the Conditions, covenants or other provisions of this Trade Subcontract;
10.1.4 becomes bankrupt or insolvent, has a receiving order made against him or compounds with his
creditors or carries on business under a receiver, trustee or manager for the benefit of his creditor or
goes into liquidation;
10.1.5 fails to make prompt payment to its workmen.

10.2 RII shall, after having given seven (7) days written notice to the Subcontractor, terminate the Trade Subcontract
and expel the Subcontractor from the site. Any such expulsion and termination shall be without prejudice to any
other rights or powers of RII under the Trade Subcontract.

10.3 RII may, upon such termination, complete the Works themselves or by any other contractor. RIIor such other
contractor may use for such completion any Subcontractor’s equipment which is upon the site as he or they may
think proper, and RII shall allow the Subcontractor a fair price for such use.

10.4 RII shall, as soon as possible after such termination certify the value of the Works and all sums then due to the
Subcontractor as of the date of termination.

The Subcontractor shall, except on work stoppage ordered by the owner, be liable for the excess cost incurred by
RII in the completion of the related work thereat. This liability shall be separate from and in addition to the
liquidated damages.

ARTICLE XI
PERFORMANCE & GUARANTEE BONDS

11.1 The Subcontractor shall submit within seven (7) days from receipt of the signed Trade Subcontract a
Performance Bond from a bonding company acceptable to RII in the amount equivalent to Thirty Percent (30%)
of the total contract price or as provided for in Annex “A” hereof whichever is greater and the same shall answer
for the satisfactory completion of all undertakings and obligations of the Subcontractor.

11.2 RII shall notify the Subcontractor in writing of any claim arising under the Guarantee Bond.

Upon receipt of such notice, the Subcontractor shall promptly repair or replace the defective work or equipment
of parts thereof without cost to RII

If after due notice, the Subcontractor refuses or persistently, neglects to correct any defect, error, defective
workmanship, omission or any other failure of the materials and supplies to meet the requirements of the
specification, which might develop during the
maintenance period, RII may proceed to undertake for the account of the Subcontractor, the correction of such
defects, errors, omissions or failures, and in this event, RII may deduct from any payment or money due to the
Subcontractor and/or apply from the Subcontractor’s Guarantee Bond an amount equal to the actual expenses
so incurred together with an addition of thirty (30%) percent as on cost.

The Guarantee Period for the Works shall be extended by period equal to the period during which the Works
cannot be used by reasons of a defect or damage.

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ARTICLE XII
SPECIAL PROVISIONS

12.1 Safety Precautions and Procedures

12.1.1 The Subcontractor shall take all reasonable safety precautions with respect to his Works, shall comply
with all safety measures initiated by RII and with all applicable law, ordinances, rules, regulations and
orders of a public authority for the safety of the persons or property in accordance with the Main
Conditions of Contract. The Subcontractor shall report within two (2) days to RII any injury to any of the
Subcontractor’s employees.

12.2 Cleaning

12.1.1 The Subcontractor shall at all times keep the premises free from accumulation of waste materials or
rubbish arising out of the operations of this Trade Subcontract Agreement. Unless otherwise provided,
the Subcontractor shall not be held responsible for unclean conditions caused by other contractors or
Subcontractors.

12.1.2 On completion of the Works, the Subcontractor shall remove all Subcontractor’s plant and equipment
and leave the whole of the site of his works and the Works clean and in a workmanlike condition to the
satisfaction of RII

12.2 Contract Amendments

12.2.1 No variation in or modification of the terms and conditions of the Trade Subcontract shall be made
except by written amendment signed by both parties.

ARTICLE XIII
DISPUTES

13.1 Any and all disputes arising from the implementation of this Trade Subcontract Agreement shall be submitted to
arbitration before the Construction Industry Arbitration Commission in Makati City, Philippines, according to the
provisions of Republic Act No. 876, otherwise known as the “Arbitration Law” and Republic Act 9285, otherwise
known as the “Alternative Dispute Resolution Act of 2004”.

13.2 The Philippine Laws shall apply to this Trade Subcontract Agreement.

IN WITNESS WHEREOF, the parties have affixed their signatures this _____ day of ____________, 2023 at Quezon City,
Philippines.

By: RII Builders, Inc. By: PCJ’s Construction Services

Contractor Subcontractor

Gerardo P. Catindoy Pedro M. Conde Jr.

President & COO President

Signed in the Presence of:

____________________ ____________________

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ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

____________________________) SS

BEFORE ME, a Notary Public for and in Quezon City, this ______ day of __________, 2023, personally
appeared the following:

Name Government Issued Identification Document/s

Gerardo P. Catindoy Driver’s License No. N02-99-398648, valid until 23 Dec 2031

Pedro M. Conde Jr.

Personally known to me and to me known to be the same persons who executed the foregoing Trade
Subcontract Agreement consisting of ___________ (_____) pages including the page which this Acknowledgement
appears and that they acknowledged to me that the same is their own free and voluntary act and deed and of the juridical
entitles herein represented.

IN WITNESS THEREOF, I have hereunto set my hand and seal on the date and at the place mentioned above.

NOTARY PUBLIC

Doc. No. ________;

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

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Annex “A”

SPECIAL CONDITIONS

Trade Subcontract Agreement for : Construction of Quezon City East Sewer Network Package 2

Location : Marikina City

Owner : Manila Water Company Inc.

Subcontractor : PCJ’S CONSTRUCTION SERVICES

I - LIST OF DOCUMENTS

1.0- LETTER of AWARD / NOTICE TO PROCEED DATED 18 APRIL 2023

2.0- CONSTRUCTION WORK SCHEDULE AND MILESTONE DATES
3.0- CONSTRUCTION DESIGN AND DRAWINGS
4.0- TECHNICAL SPECIFICATION
5.0- BREAKDOWN OF CONTRACT PRICE DATED 28 MARCH 2023

II - SCOPE OF WORKS AND SERVICES

2.1 Your scope of work includes the supply of sufficient skilled labor, construction tools and competent management and
supervision and testing and commissioning for the complete Construction of Pipe Laying Works including Concrete
Cutting, Breaking, Soil Protection and Hauling of Debris at Jocson Segment of QC East Sewer Network, all in accordance
with the Design, Plans And Specifications for the Construction of Quezon City East Sewer Network Package 2, with
location at Marikina City, owned by Manila Water Company Inc.

III - CONTRACT PRICE AND TERMS OF PAYMENT

3.1 RII shall, upon the true and faithful performance and final completion of the Works, pay the Subcontractor the total amount
of Pesos: Six Hundred Thirty Thousand Pesos and Zero Centavos Only (Php 630, 000.00) VAT Included. No price
escalation shall be allowed. Any price adjustment shall be allowed only if there are approved change orders by the Owner
or there are adjustments in the completion of works as agreed by the parties.

3.1.1 Advance Payment equivalent to Ten Percent (10%) of the above contract price or amounting to Pesos: Sixty
Three Thousand Pesos Only (Php 63,000.00) shall be paid by RII to the Subcontractor only after submission by
the Contractor to RII of a Surety Bond with amount equal to the amount of the Advance Payment and a
Performance Bond with an amount equal to Thirty Percent (30%) of the Contract Price.

3.1.2 Balance payment shall be paid thru bi-monthly progress billings covering the period from the 1 st to the
15thday,and 16th to the last day of the month being billed, less prorated recoupment of the Advance Payment,
less Ten Percent (10%) Retention, less Two Percent (2%) Expanded Withholding Tax, and which shall be
according to actual work accomplished with quality acceptable to RII Project Manager, and, through bi-monthly
progress billings submitted by the Subcontractor and approved by the RII Project Manager. Payments to
progress billing by the Subcontractor shall be made within Fifteen (15) calendar days from receipt by RII Head
Office of the signed Subcontractor’s Payment Certificate with complete attachments.

3.1.3 The Subcontractor shall submit the Bi-Monthly Progress Billings with attached BOQ of actual works
accomplished being billed, clear and identifiable key plans showing the actual works accomplished being billed,
clear and identifiable progress photos of actual works accomplished being billed, certification stating that all
materials, labor and supervision, tools and equipment, taxes and related costs for the execution of the
accomplished works being billed have been paid and that he holds the RII free and harmless from any such
claims that may arise out of this Agreement. The Subcontractor shall also secure from the RII certification that
completed works are in accordance with the approved drawings and specifications. This is a requirement prior to
processing of the progress billing.

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3.1.4 The retention money shall be released to the Subcontractor within 12 months from completion, as certified by RII
Project Manager. Should the Subcontractor opt to request for release of retention earlier than the 12 months
from completion, the Subcontractor is required to post Guarantee Bond with an amount equal to Ten percent
(10%) of the final subcontract price.

3.2 Upon submission of the last billing by the Subcontractor or upon accumulation of total billings equivalent to 90% of the
contract price whichever comes first, the Subcontractor shall first secure a clearance from the RII as to its accountabilities
for the portion of the works awarded to it. In case there are accountabilities that could not be cleared, the Subcontractor
hereby agrees, allows and authorizes the RII to deduct any and all amount corresponding to the unclear accountabilities.
Should the amount stated in the billing be inadequate to cover the unclear accountabilities, the RII is hereby likewise
authorized to deduct the balance from any payment due to the Subcontractor including but not limited to other billings or
the retention money or other collectibles from the projects. Provided, that in the event that the deduction made are not
sufficient to fully cover the unclear accountabilities, the Subcontractor shall remit the balance to the contractor within seven
(7) calendar days without need of demand.

3.3 Warranty for the materials and workmanship is within One (1) year from the date that the works was certified by RII Project
Manager as completed.

IV - WORK DURATION / COMPLETION SCHEDULE

4.1 The Work shall be completed within Sixty (60) calendar days, commencing from receipt of NTP.

4.2 It is understood that in the event the Subcontractor fails to accomplish and complete the works based on agreed Schedule
of Completion specified above, the Subcontractor shall shoulder, and shall hold the RII free and harmless from any and all
consequential costs or claims resulting from such failure.

4.3 Should the Subcontractor refuse or otherwise fail to complete the work stipulated herein in accordance with the approved
work schedule, the RII shall immediately take over the project, with costs for the account of the Subcontractor and subject
to the payment of liquated damages as defined in Article IV of the Trade Subcontract Agreement.

V - SURETY, PERFORMANCE AND GUARANTEE BONDS

The Subcontractor shall submit the following bonds acceptable to RII

5.1 Surety Bond for the Advance Payment amounting to Pesos: Sixty Three Thousand Pesos Only (Php 63,000.00 which is
equivalent to Ten Percent (10%) of the above contract price.

5.2 Performance Bond amounting to Pesos: One Hundred Eighty Nine Thousand Pesos Only (Php 189,000.00) which is
equivalent to Thirty Percent (30%) of the above contract price.

5.3 Guarantee Bond for the retention amounting to Pesos: Sixty Three Thousand Pesos Only (Php 63,000.00 which is
equivalent to Ten Percent (10%) of the total contract amount.

VI - OTHER CONDITIONS

The Subcontractor shall be responsible for the following:

6.1 Preparation and securing all the necessary permit requirements in relation to the execution of the Subcontracted Works
including the necessary payment of fees.

6.2 Power and water consumption for the execution of the Works shall not be billed and paid by the Subcontractor.

6.3 Provision of formworks, scaffolding system, temporary office and facilities, fabricated rebars, tie wires and needed
accessories for its fixing or placement, concrete, labor, tools and equipment, competent supervision and related resources
for the satisfactory completion of the Works in accordance with the approved plans, technical specifications, quality, safety
and agreed schedule.

6.4 Lifting equipment for the vertical hauling of materials at Project Site shall be by the Subcontractor.
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6.5 Preparation of As-Built drawings for the Works, both in electronic file and in print, shall be provided by RII.

6.6 RII shall provide temporary facility at Brgy. Malanday (Multi-Purpose Building) for the Subcontractor to be used by the
Subcontractor for their temporary office and other facilities needed in the implementation of their Works. Any damage on
the said Multi-Purpose Building will be charge to Subcontractor

6.7 The Subcontractor shall provide his own warehouse for his materials at Project Site. Location of the warehouse shall be on
the space to be designated by RII

6.8 The Subcontractor shall provide the potable drinking water for his own staff and workers.

6.9 Personal Accident Insurance for Subcontractor’s staff and workers shall be at Subcontractor’s account.

6.10 The Subcontractor shall faithfully discharge its duties and responsibilities, acting at all times in the best interest of the
Project. The Subcontractor through its designated representative shall report directly to the RII Project Manager keeping
the RII informed of the Subcontractor’s activities and accomplishments and of any problem that might impede or delay the
successful execution of the Work, together with its proposed solutions. The Subcontractor must submit to the RII, for
purposes of approval by the latter prior to execution of any work, the product material Technical Specification/Brochures
and related submittals including detailed engineering drawings and other requirements for the smooth execution of the
project.

6.11 The Subcontractor shall likewise be responsible for all entitlements of its personnel, cost of fuel, oil, lubricants and
maintenance of equipment deployed for the works. All costs for repairs of equipment shall likewise be for the account of
the Subcontractor.

6.12 The Subcontractor shall provide competent personnel for their works. Should it become necessary for reasons beyond the
control of the Subcontractor to replace any of its personnel, the Subcontractor shall immediately arrange to replace any of
its personnel with one who possesses better qualifications and who are acceptable to RII.

6.13 The Subcontractor shall provide clean, safe and adequate accommodations for its workers and personnel during the
duration of the work.

6.14 The Subcontractor shall report to and coordinate with the Project Manager of the RII on all technical, administrative,
commercial, contractual, schedules, quality, safety and related concerns with regards to the works by the Subcontractor.

6.15 Nothing contained in this Agreement shall be construed as establishing or creating an employer-employee, or principal-
agent relationship between the RII and the Subcontractor, between the former and the latter’s employees, it being
understood that the position of the Subcontractor is that of an independent provider of services.

6.16 The RII may, at its sole option and by written notice to the Subcontractor, require extra services; make minor changes or
alterations in the scope of service; or direct the omission of work included in this Sub-Contract Agreement. Payments for
extra or additional services as well as subtraction of contract cost for deletion of services not provided for in this Sub-
Contract Agreement shall be mutually agreed upon by the RII and the Subcontractor.

6.17 All damages, liquidated or otherwise, that may be charged by project owner against the RII on the account of this works
shall be borne by and for the account of the Subcontractor if the reason/s for such is attributed to the Subcontractor.

6.18 The Subcontractor must comply with Department of Labor and Employment D.O. # 13, series of 1998 and D.O # 18-02
series of 2002 at their own expense.

6.19 The Subcontractor agrees to hold free, harmless and shall indemnify the RII from any and all claims that may be made by
its employees or laborers regarding wage and other benefits arising out of and from the performance of this Agreement.

6.20 The Subcontractor further agrees to guarantee payment of the services used in connection with the performance of the
works under this Agreement and to release the RII from any such liabilities or claims in connection thereto.

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6.21 It is understood and agreed that all workers, laborers or employees of the Subcontractor are in no way those of the RII and
the latter shall not be responsible for any claim regarding wages and other benefits arising from the performance of the
Contract or any claim for the personal injury by or to any third person which may arise out of or in connection with the
performance of the works by the Subcontractor.

6.22 The Subcontractor, shall not assign, sell, transfer or otherwise dispose of any and all of its rights or interests under this
Trade Subcontract Agreement without the prior Consent of the RII.

6.23 The RII and all its duly authorized representatives shall have the authority to inspect the works by the Subcontractor. In this
connection, the Subcontractor shall extend all the necessary assistance and provide the access to the works to enable the
RII and all its duly authorized representatives to undertake such inspections.

6.24 The Subcontractor warrants that it shall at all times abide by all the rules and regulations enforced by the RII, the project
owner and the Project Consultants at the project site.

6.25 This Agreement shall supersede all other prior contracts, whether oral or written, entered into by both parties and shall not
be amended except by a written agreement signed by both parties. However, written agreements reached during regular
coordination meetings shall form part and supplements this Agreement, unless the tenor or contents thereof are contrary to
the provisions of this Agreement, which shall require a formal amendment hereof.

6.26 The invalidity of any provision of this contract shall not affect the other provisions unless the latter are indispensably or
inextricably related to the invalid one.

6.27 This Agreement shall be effective upon signing hereof and shall remain in force and effect until all the obligations herein
contained are complied with unless sooner terminated in accordance herewith.

6.28 No amendments, modifications, or alterations to this Subcontract shall be valid or binding on either party unless expressed
in writing and executed with the same formality as to this Agreement.

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