CONTRACT AGREEMENT

For Supply and Delivery of Materials

KNOW ALL MEN BY THESE PRESENTS:

Engr. RODUARD MICHAEL C. BUSTILLO
RFB THAT
Construction
THIS Corporation
PURCHASE AND DELIVERY OF MATERIALS
AGREEMENT is entered into by and between:

RFB CONSTRUCTION CORPORATION, a corporation organized and

existing under and by virtue of the laws of the Republic of the
Philippines with its main office address at P-1A, Bacolod St., Upper
Doongan, Butuan City, represented herein by its Vice President for
Operations/Chief Operating Officer, Engr. RODUARD MICHAEL C.
BUSTILLO, duly authorized for this purpose hereinafter referred to as
the FIRST PARTY;

-and-

NCVR ENGINEERING STEEL AND FABRICATION AND

INDUSTRIAL SERVICES, a sole proprietorship organized and existing
under Philippine laws with principal office at KM 20 Tugbok District,
Los Amigos, Davao City, represented herein by its owner, Engr.
NELSON M. CAB hereinafter referred to as the SECOND PARTY;

WITNESSETH that:

WHEREAS, the FIRST PARTY was awarded a contract by the DPWH

identified as Contract ID No.: KB00432 – Proposed Construction of Multi-
purpose Facility (Grandstand
NELSON M. CAB C), Laguitas, Malaybalay, Bukidnon.
NCVR Engineering Steel Fabrication and
WHEREAS, the SECOND PARTY is engaged in the business of sand
Industrial Services
blasting and paint works and possesses the attributes of a legitimate supply and
delivery servicer and has the basic tools, equipment, manpower, financial
resources, and technical experience to be able to fully and faithfully execute the
items of work subject of this agreement in complete adherence to the Project’s
approved plans and specifications and construction timetable;

WHEREAS, the FIRST PARTY desires to procre the sandblasting and

paint works from the SECOND PARTY.

NOW, THEREFORE, for and in consideration of the foregoing premises,

the parties hereto agree and covenant with each other as follows:

ARTICLE I
SCOPE OF MATERIALS AND WORKS

III.1. The SECOND PARTY agrees to supply to the FIRST PARTY the
materials and provide the labor installation thereof in strict accordance
with the specifications below:

ITEM DESCRIPTION QTY. UNIT

NO.
A.1. SANDBLASTING AND PAINT WORKS 1,500 sq.m.
FOR WIDE FLANGE, TRUSSES, WEB
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 MEMBERS AND BASE PLATES (to be
identified by RFBCC)

I.2. The SECOND PARTY agrees to supply to the FIRST PARTY the
Engr. RODUARDincidental serviceC.ofBUSTILLO
MICHAEL installation of the mentioned materials and other
services necessary
RFB Construction Corporationfor its completion, which includes:

A. Supply of labor, equipment, and fuel for sandblasting;

B. Paintworks in 3 coats;

C. Drying and screening of sand;

D. Housekeeping of the blasting area;

E. Installation and dismantling of scaffolds; and

F. Supply of diesel engine driven air compressor, sandblasting

machine, and other mechanical equipment

I.3. The PARTIES agree that the consideration involved in this contract is
inclusive of any contingent price increase of materials unless the
PARTIES subsequently agree in writing to amend the contract price to
accommodate price hikes;

I.4. The PARTIES have agreed that the quantities may vary based on
measurements of actual, completed, and approved by the procuring
agency for billing purposes. Any works not authorized by the procuring
agency shall not be billable nor payable to the SECOND PARTY;
NELSON M. CAB
NCVR Engineering Steel PARTY
I.5. The SECOND Fabrication
shall and
use its basic tools, equipment, materials, and
manpower, all for
Industrial Services the cost of the SECOND PARTY. In case the SECOND
PARTY does not have all of the required tools, equipment, or materials,
he may lease from the FIRST PARTY at the rates agreed upon by the
PARTIES.

I.6. The scope covers the responsibility of the SECOND PARTY to shoulder
the expenses of basic first aid and health facilities and to maintain security
and order in the project site, in compliance with DPWH, DENR, DOH,
LGU, or government regulations while the barracks for the workers shall
be provided by the FIRST PARTY;

ARTICLE II
DURATION

II.1. The duration of this Contract is Thirty (30) Days from its execution,
subject to extension if there is an additional volume of work, those granted
by the FIRST PARTY, and/or if the site where the items of work are not
yet complete or is prevented by force majeure.

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 ARTICLE III
CONSIDERATION

III.1.In consideration of the services of the SECOND PARTY, the FIRST

PARTY
Engr. RODUARD shall PAY
MICHAEL the contract price of NINE HUNDRED THIRTY
C. BUSTILLO
THOUSAND PESOS (Php 930,000.00) inclusive of tax, which shall be
RFB Construction Corporation
payable through progressive billings.

ARTICLE IV
PAYMENT

A. MANNER OF PAYMENT

IV.A.1 Payment will be made based on the progress of work done by the
SECOND PARTY who shall submit an accomplishment report and
progress billing to the FIRST PARTY. The report and billing shall be
subject to inspection and/or verification by the FIRST PARTY’s Project
Engineer and Inspectorate Team, for approval.

IV.A.2 The PARTIES agree that payment shall only be made once the FIRST
PARTY is satisfied that the progress and accomplishment billing are true
and correct.

B. ADVANCE PAYMENT

IV.B.1. The FIRST PARTY shall allow the SECOND PARTY to avail of a Thirty
Percent (30%) down payment to mobilize and purchase the materials
needed for the works and installation. The remaining balance of the whole
contract amount shall be collected through accomplishment billings.
NELSON M. CAB
IV.B.2.
NCVR If the down
Engineering payment
Steel has not
Fabrication andbeen repaid before taking over or before
termination of the
Industrial Servicescontract, the whole of the balance shall immediately
become due and payable by the SECOND PARTY to the FIRST PARTY.

C. DEDUCTIBLE FROM ALL BILLING AND PAYMENT

IV.C.1. All payments of billing shall be subject to the mandatory TWO PERCENT
(2%) Withholding Tax;

IV.C.2. The FIRST PARTY shall deduct TEN PERCENT (10%) on the gross billed
amount as retention to guarantee all warranty undertakings of the
SECOND PARTY. The retention fund shall be released only upon
completion and acceptance by the procuring agency;

IV.C.3. The FIRST PARTY shall deduct TWENTY-FIVE (25%) PERCENT on the
gross billed amount, as recoupment to the mobilization fund paid in
advance to the SECOND PARTY. This shall be enforced in every
progress billing by the SECOND PARTY until the 30 % mobilization fund
is fully paid.

ARTICLE V
DELIVERY

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 V.1. The materials shall be delivered to the project site in Laguitas,
Malaybalay, Bukidnon within the duration of the contract by the SECOND
PARTY.

Engr. V.2. The cost

RODUARD of the delivery
MICHAEL is deemed to be included in the contract price.
C. BUSTILLO
RFB Construction Corporation
V.3. In the event of a breach of this Article, the FIRST PARTY reserves the
right to:

a. Terminate this Contract without liability by giving an immediate

notice and charge the SECOND PARTY with any loss incurred as
a result of the SECOND PARTY’s failure to make the delivery
within the time specified; or

b. Charge a penalty of 0.25% of the total contract price for every day
of delay or breach of the delivery schedule by the SECOND
PARTY; or

c. Give notice to the SECOND PARTY within five (5) days in case of
a mistake in the delivery and charge the variance of the prices to
the SECOND PARTY. The demobilization of the materials shall be
at the expense of the SECOND PARTY.

ARTICLE VI
INSPECTION AND ACCEPTANCE

A. GENERAL PROVISION

V.A.1. The SECOND PARTY agrees that the FIRST PARTY’s payment under
NELSON
this M. shall
Contract CAB not be deemed as an acceptance of any materials
deliveredSteel
NCVR Engineering hereunder.
Fabrication and
Industrial Services
V.A.2. The SECOND PARTY agrees that any acceptance by the FIRST PARTY
does not release the SECOND PARTY from any warranty or other
obligations under this Contract.

V.A.3. Title to the materials and works shall pass to the FIRST PARTY when
they are delivered, inspected, and accepted by the FIRST PARTY. The
risk of loss, injury, or destruction of the materials shall be borne by the
SECOND PARTY until the title passes to the FIRST PARTY.

B. MATERIALS

V.B.1. Acceptance of the delivered items shall be deemed to occur on the date
when, in the reasonable opinion of the FIRST PARTY, the delivered items
conform to the stipulated specification. The FIRST PARTY shall have
thirty (30) calendar days after proper receipt of the materials to inspect
them and either accept or reject them as non-conforming with this
Contract.

V.B.2. The SECOND PARTY agrees that the final acceptance occurs when
FIRST PARTY executes and returns to the SECOND PARTY the signed
delivery receipt and/or acknowledgment receipt within thirty (30) calendar
days but only after the necessary inspection was conducted.
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 V.B.3. All materials not found upon delivery shall be notified to the SECOND
PARTY within seven (7) days. No substitutions shall be made without
prior authorization by the FIRST PARTY through its authorized technical
Engr. RODUARDrepresentatives.
MICHAEL C. BUSTILLO
RFB Construction Corporation
C. WORKS AND PROGRESS BILLING

V.C.1 For purposes of Inspection and/or verification of the veracity of the

Progress Billing/s of the SECOND PARTY, the FIRST PARTY shall be
allowed access to the work and the project site and provide proper
facilities for such access and inspection.

V.C.2 The parties agree that FIRST PARTY shall conduct a periodic inspection
at least twice a month to inspect the quality and program of works, for
billing, reconstruction, replacement, and other purposes.

ARTICLE VII
WARRANTY AGAINST NON-PERFORMANCE

VII.1 Non-performance arises when the SECOND PARTY fails to perform the
required works under this Contract;

VII.2
The SECOND PARTY shall be required to put up warranty security in the
form of SURETY BOND CALLABLE ON-DEMAND issued by any surety
or insurance or bonding company accredited by the Insurance
Commission and duly accepted by the FIRST PARTY, or a PERSONAL
CHECK (to be returned after the completion of the obligations in the
contract). The amount of the surety bond callable on-demand or personal
NELSON
check shallM.
be CAB
equivalent to One Hundred Percent (100%) of the Contract
Price. Steel Fabrication and
NCVR Engineering
Industrial Services
 ARTICLE VIII
       WARRANTY FOR WORKS AND MATERIALS

VIII.1. The SECOND PARTY shall guarantee that the work done will be by the
specification of the Project as required by the FIRST PARTY.

VIII.2. The warranty for the quality of materials and work of the SECOND
PARTY shall extend to the period of Twenty-Four (24) months from the
final acceptance of the procuring agency.

VIII.3. In consideration of the warranty period, the SECOND PARTY is obligated

to secure insurance to answer for any defects arising within such period.
This shall exclude hidden defects that could not reasonably be discovered
during the period. Repairs or replacements arising from hidden defects
shall be at the expense of the SECOND PARTY.

VIII.4. If any defects are found, the PARTIES obligate themselves to perform the
following:

a. The FIRST PARTY shall notify the SECOND PARTY of any

defects found on the works within fifteen (15) days from discovery;

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 b. The SECOND PARTY shall repair or replace any of the alleged
defective work at its cost including all labor and materials;

c. If the SECOND PARTY cannot perform such repair or replacement

without justifiable
Engr. RODUARD MICHAEL cause, the FIRST PARTY shall perform it on its
C. BUSTILLO
own or another third party which shall be chargeable to the Ten
RFB Construction Corporation
Percent (10%) retention fund.

ARTICLE IX
RESPONSIBILITIES TO MANPOWER

IX.1. The SECOND PARTY shall maintain at all times a sufficient number of
laborers and skilled workers, sufficient to meet the program of works that
the Procuring Agency has imposed in the contract.

IX.2. The SECOND PARTY shall, at all times during the terms of this Contract,
keep on the job site a competent superintendent to prosecute the work in
accordance with the drawings, specifications, and other instructions. The
superintendent shall act as an agent of the SECOND PARTY in its
absence and all formal instructions given to him shall be binding as if
given directly to the FIRST PARTY.

IX.3. As there is no employer-employee, agency, or partnership relationship

between the FIRST PARTY and the SECOND PARTY, the SECOND
PARTY shall be fully responsible for the conduct of its employees and
agents engaged in the execution of the contracted items of work, and
payment of the wages/salaries, and other benefits of its employees and
agents engaged in the execution of the contracted items of work. This
includes the hiring, dismissal, and control of such personnel.
NELSON M. CAB
IX.4.
NCVR The SECOND
Engineering PARTY shalland
Steel Fabrication execute an Affidavit of Undertaking that all
salaries and wages
Industrial Services and benefits due to all laborers, workers, and third
parties who furnished labor and services have been fully paid in
accordance with the minimum standards set by the Labor Code, as a
requirement for Billing. The SECOND PARTY shall ensure that all workers
are covered by SSS, Philhealth, Pag-ibig, and Insurance protection.

IX.5. The SECOND PARTY shall also be solely and exclusively responsible for
any death, injury, or damage caused to or by the personnel or agents of
the SECOND PARTY to any third person should the cause of such death,
damage, or injury be due to the fault or negligence of the SECOND
PARTY’s personnel or agents.

IX.6. The SECOND PARTY shall also be liable for any loss or damage to any
materials caused by mishandling of its employees or laborers, or for the
reason of lack of skill, care, and experience, the materials have to be
removed and replaced for reason that the work is substandard or the
quality failed to pass the design and quality.

ARTICLE X
LIQUIDATED DAMAGES

X.1. The SECOND PARTY shall pay the FIRST PARTY Liquidated Damages
equivalent to One Percent (1%) of the cost of the unfinished portion of the
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 project for each day of delay in the completion of the project, but not to
exceed Ten (10%) percent of the contract price. The start of delay shall
be reckoned from the end of the duration of this contract. The Liquidated
Damages shall be automatically be deducted from the collectibles, should
there MICHAEL
Engr. RODUARD be any, of C.
theBUSTILLO
SECOND PARTY from the FIRST PARTY. In the
event the collectibles of the SECOND PARTY are insufficient to pay the
RFB Construction Corporation
liquidated damages, the SECOND PARTY shall be obligated to pay the
same through cash or the issuance of a check.

X.2. In the event the cumulative amount of Liquidated Damages due to the
SECOND PARTY reaches Fifteen Percent (15%) of the Contract Price,
the FIRST PARTY is automatically entitled to TERMINATE the Contract,
without prejudice to other courses of action and remedies the SECOND
PARTY may avail.

ARTICLE XI
TERMINATION OF CONTRACT

XI.1 The presence of any of the grounds enumerated hereunder shall entitle
the FIRST PARTY to terminate the contract:

X.1.a. Willful violation and/or failure on the part of the SECOND

PARTY to comply with its obligation herein;
X.1.b. Abandonment of the works by the SECOND PARTY;
X.1.c. Assignment of this contract by the FIRST PARTY to another;
X.1.d. A delay or negative slippage of fifteen (15%) percent of the
programmed schedule;
X.1.e. Bad faith on the part of the SECOND PARTY in the execution
of this contract;
NELSON
X.1.f. M.
LackCABof progress would render it impossible to ensure that the
project
NCVR Engineering Steel is completed
Fabrication and as scheduled.
Industrial Services
XI.2 The FIRST PARTY may only exercise its right to terminate the contract
after giving a notarial notice of the existence of any of the grounds for
Termination to the SECOND PARTY without the need for judicial
recourse. In the said notice, the FIRST PARTY shall, in all instances, give
the SECOND PARTY sufficient opportunity to remove, remedy, or rectify,
if possible, said ground before effecting the Termination of the contract.

XI.3 Should the SECOND PARTY still fail to comply with its undertaking even
after receipt of the notice of the intended termination, the FIRST PARTY
may take over the works and/or secure the services of a third party to
undertake its obligations. The cost of completing the works shall be
shouldered by the SECOND PARTY.

ARTICLE XII
COMPLIANCE WITH LAWS
XII.1 Whenever applicable and/or binding upon the parties, the SECOND
PARTY, in the performance of its obligations, shall comply with all laws,
ordinances, decrees, rules, and regulations of both the national and local
governments.

ARTICLE XIII
SEPARABILITY CLAUSE AND ARBITRATION
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 XIII.1 In case any one or more of the provisions contained in this Agreement will
be declared invalid, illegal, or unenforceable, the validity, legality, or
enforceability of the remaining provisions contained `herein, insofar as still
Engr. RODUARDconsistent with theC.declared
MICHAEL purposes of the parties, shall not in any way
BUSTILLO
be affected or impaired thereby.
RFB Construction Corporation
XIII.2 Any dispute or controversy of any kind whatsoever between the FIRST
PARTY and the SECOND PARTY which may arise out of or in connection
with this Agreement shall be referred to the proper courts in Butuan City,
Region XIII to the exclusion of other courts.

ARTICLE XIV
NON-WAIVER

XIV.1 The inaction or silence by any of the parties herein concerning non-
compliance by the other of their respective obligations shall not be
construed or interpreted as a waiver or consent by the aggrieved party of
said non-compliance.

XIV.2 The parties hereto further agree to execute and/or submit such other
documents and papers as may be deemed necessary to
realize/accomplish the purposes of this Agreement or necessary for its
approval.

IN WITNESS WHEREOF, the parties have signed this Agreement at

Manila City, Philippines, this __th day of _______________ 2022.

RFBNELSON M. CAB
Construction Corporation NCVR ENGINEERING STEEL
NCVR Engineering Steel Fabrication and FABRICATION AND INDUSTRIAL
Industrial Services SERVICES
First Party Second Party
By: By:

______________________________ _______________________________
RODUARD MICHAEL C. BUSTILLO NELSON M. CAB

Signed in the Presence of:

____________________________ ___________________________

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 ACKNOWLEDGMENT
Engr. RODUARD MICHAEL C. BUSTILLO
RFB Construction
REPUBLIC OF THE Corporation
PHILIPPINES )
In the City of BUTUAN . . . . . . . . . . . ) S.S.

BEFORE ME, a Notary Public for and in the city of Butuan, this ___th day
of ___________ 2022, personally appeared:

NAME I.D. No. Place of Issue

TIN No.
Roduard Michael C. Bustillo Butuan City
441-493-863

Nelson M. Cab

both known to me to be the same persons who executed the foregoing

instruments and they both acknowledge before me that the same is their free and
voluntary acts and deeds and those of the corporations and/or entities which
each of them respectively represents.

This instrument, consisting of nine (9) pages including this page wherein
this acknowledgment has been signed by the parties and their instrumental
witness on each and every page thereof.

WITNESS MY HAND AND SEAL on the page and at the place first above
written.
NELSON M. CAB
NCVR Engineering Steel Fabrication and
Industrial Services
NOTARY PUBLIC
Page No. _______;
Doc. No. _______;
Book No. _______;
Series of 2022

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