CONTRACTOR AND SPECIALTY CONTRACTOR’S AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

THIS CONTRACT IS MADE AND ENTERED INTO BY:

BILREY CONSTRUCTION, a sole proprietorship existing under Philippine laws, with principal address at
16A Petron Megaplaza, Sen. Gil J. Puyat Ave., Makati City, represented herein by its authorized
representative BILLY REYMOND G. DE LEON, herein referred to as the “CONTRACTOR”.

And

E.F. ALAMILLO CONSTRUCTION AND SUPPLY, a sole proprietorship existing under Philippine laws with
principal address at, represented by its authorized representative ENGR. EDUARD F. ALAMILLO, herein
referred to as the “SPECIALTY CONTRACTOR”.

WITNESSETH; That

WHEREAS, the CONTRACTOR was awarded the Madayaw Residences Proposed 5-Storey Low-Rise
Residential Building (Model B Building B3) of the National Housing Authority located at Brgy. Talomo,
Davao City.

WHEREAS, the CONTRACTOR agrees to be the award to specialty contractor certain portions of the
Housing Project in favor of ENGR. EDUARD F. ALAMILLO and the SPECIALTY CONTRACTOR is willing to be
the specialty contractor for the construction of the Madayaw Residences Proposed 5-Storey Low-Rise
Residential Building (Model B Building B3).

NOW THEREFORE, for and in consideration of the foregoing premises, the CONTRACTOR awards the
construction of certain portions of the Madayaw Residences Proposed 5-Storey Low-Rise Residential
Building (Model B) unto the Specialty Contractor and the Specialty Contractor hereby accepts from the
CONTRACTOR the construction of awarded scope of works of the Madayaw Residences Proposed 5-Storey
Low-Rise Residential Building (Model B Building B3), subject to the following:

TERMS AND CONDITIONS:

1. SCOPE OF WORK

The Contractor undertakes the provision of the following Project Documents: Model Building B
Plan, Land Development Plan, and Specification. These documents shall serve as a reference for
the construction of awarded job orders and must be followed judiciously. The Specialty Contractor,
on the other hand undertakes the provision of the sufficient supervision, labor, tools, equipment,
materials, consumables and all necessary items to complete the scope of works safely and within
specified quality within contract time, complete and ready for other succeeding works.

2. CONTRACT PRICE. Unit Rate Contract for CONSTRUCTION OF MADAYAW RESIDENCES

PROPOSED 5-STOREY LOW-RISE RESIDENTIAL BUILDING (MODEL B BUILDING B3) SHALL BE AS
FOLLOWS:

Supervision, tools, labor and materials for construction of a MADAYAW RESIDENCES PROPOSED
5-STOREY LOW-RISE RESIDENTIAL BUILDING (MODEL B BUILDING B3) shall be in the amount of
Thirty-Two Million Eight Hundred Fifteen Thousand Nine Hundred Forty-Two and 89/100 Pesos.
(₱32,815,942.89). The scope, formworks, others materials that is included on the scope of works
of the Specialty Contractor and will be provided by the Contractor, the said scope will be
deducted on the contract price.

3. CONTRACT TIME. This shall be in accordance with the contractor-approved Project

Construction Schedule.

A contract can consist of awarded job order. If the Specialty Contractor accepts an awarded Job
Order, his Authorized Representative must sign it and submit it to the Contractor within 5-10
 working days upon awarding. The start date is counted immediately thereafter. The required
completion date is _____ calendar days.

4. DRAWINGS AND SPECIFICATIONS

The Contractor shall issue the drawings and specifications to be used for the project. Changes to
the drawings and specifications can only be done by the Contractor. All as-built Plan requirement
will be provided by Specialty Contractor.

5. PROCUREMENT OF MATERIALS
Materials to be used in the construction shall be directly purchased by the Specialty Contractors.
In this regard, it is agreed that the Specialty Contractor is solely responsible for issuing purchase
orders, receiving deliveries and issuing payments to their suppliers. The Contractor’s employees
shall not be involved in any manner with the acquisition of the materials. The Specialty Contractor
should provide the Contractor all official and sales invoice receipts that they have equivalent to 85
% of the value of the contract.

6. LIST OF ACCREDITED SUPPLIERS

For construction materials, the Contractor shall provide a list of its accredited suppliers. However,
if the Specialty Contractor fails to select or choose from the list given, it has the liberty to have its
own supplier of construction materials provided that they must ensure that the supplier can
provide AITECH, MILL or any corresponding certificate of quality for materials supplied. Specialty
Contractor is also required to give a formal notification thru writing if it intends to procure from
suppliers not accredited by the Contractor. Contractor must approve alternative Suppliers before
any purchase.

7. SCHEDULE OF SUBMISSION AND PAYMENT OF APPROVED BILLING

Periodic Progress Billing will be gauged per approved of accomplishment. The cut-off time for
submission of the billing in the site is EVERY MONDAY. Release of check payment for approved
billing is on the succeeding FRIDAY. In cases, wherein the contractor will not be able to process and
release payment for the site-approved billings, a memo shall be issued to notify the Specialty
Contractors. In cases when Specialty Contractor is not able to meet the cut-off time, his billing shall
be processed the following week.

8. ATTACHMENTS TO THE BILLINGS AND SANCTIONS FOR FAILURE TO COMPLY

Billings must contain the required attachments and these are the following:
1) Map out
2) Request letter
3) Request form
4) Actual updated photos
5) Detailed actual accomplishment and other support documents

These requirements should always be attached in every billing. The other forms such as the GENERAL
CHECKLIST FORM, GENERAL EVALUATION FORM, CSA (CIVIL, STRUCTURAL AND
ARCHITECHTURAL WORKS), MEPF (MECHANICAL, ELECTRICAL, PLUMBING AND FIRE PRO) TEST
FORM AND GUIDELINES FOR PUNCHLIST shall be required depending on the Progress Billing to be
submitted. Furthermore, attachments and photos to be submitted must be clean and clear (e.g. flooring
must be clearly seen) and no duplicate photos. Failure to comply will result to the disapproval of the billing.
This shall be returned to the Specialty Contractor for proper correction.
Please note that site approval is only part of the process and will not automatically result in the approval of
the billing. Final billing approval is given by the Head Office.

Any billing with wrong and incomplete attachment will not be processed for payment and the
CONTRACTOR RESERVES THE RIGHT TO AUTOMATICALLY CANCEL BILLINGS WITH INCOMPLETE
AND WRONG ATTACHMENTS. FURTHER, THE CONTRACTOR WILL NOT ENTERTAIN AND ALLOW
ANY FORM OF SUBMISSION TO CORRECT ANY WRONG AND INCOMPLETE BILLINGS. SPECIALTY
CONTRACTOR MUST RESUBMIT THE REQUIRED BILLING ATTACHMENTS TO THE SITE OFFICE TO
COLLECT PAYMENT.
9. SWORN STATEMENT DURING FINAL BILLING
Specialty Contractor shall submit a sworn statement during final billing attesting that Specialty
Contractor had made timely payments of salaries and government mandated benefits of its
employees.

10. RETENTION
10% of the total contract amount is considered as retention. This 10% retention shall be deducted
in every billing made by the SPECIALTY CONTRACTOR. If SPECIALTY CONTRACTOR reneges with
the contract, abandons or is unable to complete the construction of the project or FAILS TO
REPAIR OR TO INSTALL THE MISSING FIXTURES UPON ACTUAL OCCUPATION BY THE
BENEFICIARIES the 10% retention amount SHALL BE FORFEITED IN FAVOR OF THE CONTRACTOR.

Releasing of 5% retention will be processed per Scope of Works after acceptance of CONTRACTOR
and remaining 5% retention upon TURN OVER AND ACCEPTANCE OF THE WHOLE BUILDING BY
CONTRACTOR (BILREY CONSTRUCTION).

11. MOBILIZATION
The Contractor agrees to provide advances in terms of Materials and Cash Requirement. Materials
& Cash Requirement requested by the Specialty Contractor will be deducted to Progress billing
progressively.

Any Materials, labor, tools and formworks that provided by BILREY CONSTRUCTION that included
in Contract will be deducted upon recoupment to Periodic Progress Billing. The Specialty
Contractor should be able to check the quality and quantity of the materials etc. upon delivery.

12. INDEPENDENT CONTRACTOR

Specialty Contractor is not an agent or employee of BILREY CONSTRUCTION for any purpose.
BILREY CONSTRUCTION is not responsible for deducting and shall not deduct from payments to
Specialty Contractor any amounts for withholding tax, insurance and its suppliers or other similar
item relating to Specialty Contractor’s employees. Neither Specialty Contractor nor the Specialty
Contractor’s employees shall be eligible or entitled to any benefits to which employees of
contractor may be entitled to such as paid vacations, paid holidays, Social Security and other
benefits that may be available.

13. AGREEMENT
The Specialty Contractor agrees to and binds itself to indemnify the Contractor for whatever
injuries and damages suffered by reason of the failure, negligence, delay, or conduct on the part
of the Specialty Contractor and/or its employees in the performance of its obligations.

14. OBLIGATION
Specialty Contractor shall clear the erected dwelling and its surroundings from all rubbish, trash,
debris and the like prior to final acceptance of the Contractor.

15. EVALUATION OF THE SPECIALTY CONTRACTOR; SCHEDULE

To ensure that the quality of the work being done by the Specialty Contractor meets the standards
set by the contractor, a Specialty Contractor Evaluation shall be conducted every 50% & 90% of
accomplishment. Evaluation shall also cover metrics pertaining to the compliance and
conformance of the Specialty Contractor to policies and procedures set forth by the Contractor.

16. SPECIALTY CONTRACTOR’S OFFICE AND BARRACKS

Specialty Contractor shall provide for their own barracks for use of their employees.

17. SAFETY COMPLIANCE

a) Compliance with Laws and Bilrey Construction Policies. The SPECIALTY CONTRACTOR
shall comply with all the requirements under the Bureau of Working Conditions (BWC), a duly
 recognized bureau of Department of Labor and Employment, about safety and health conditions.
The SPECIALTY CONTRACTOR shall also comply with the Bilrey Construction safety guidelines and
policies. The SPECIALTY CONTRACTOR shall indemnify any loss or liability arising out of the
SPECIALTY CONTRACTOR’S failure to comply with the terms of this provision.

b) Employees. The SPECIALTY CONTRACTOR shall at all times enforce strict discipline
and good order among its employees and shall ensure that all its employees are found fit to
perform the services from the original agreement. The SPECIALTY CONTRACTOR shall ensure that
all its employees are in compliance with the Bilrey Construction safety guidelines and policies
among other statutory requirements set by BWC.

c) Personal Protective Equipment. As per Department Order No. 13 – Guidelines Governing

Occupational Safety and Health in the Construction Industry, the CONTRACTOR is requiring the
SPECIALTY CONTRACTOR to fully comply with the requirement of enforcing the use of Personal
Protective Equipment (PPE) to all its employees. The minimum requirements of the CONTRACTOR
are as follows:

a) Wearing of HARD HAT and CLOSED SHOES in the construction site

b) Wearing of shirts with sleeves and long pants in the construction site
c) Wearing of Safety Vest in construction site.

18. SITE CONDITIONS

It is expected that the Specialty Contractor has inspected the site and considered the site
conditions prior to its application to be part of the project.

19. LAWS, RULES and REGULATIONS

Specialty Contractor shall follow all rules and regulations enforced by the Contractor at the project
site.

20. COMPANY PROFILE AND SPECIALTY CONTRACTOR’S OFFICIAL REPRESENTATIVE

Specialty Contractor must submit their company profile to the Contractor. Specialty Contractor
must endorse Authorized Representative in the performance of certain transactions with the
Contractor such as but not limited to submission of billings or collection of payments. When a
Specialty Contractor wishes to unauthorize endorsed representatives, a request must be
submitted to the Contractor in writing.

21. MEETINGS
Specialty Contractor shall attend regular meetings with the Contractor and the Project
Implementation Team such as:
a. Technical Coordination Meeting
b. Workshop/Collaboration Meeting
c. Safety Meeting
d. Project Management Meeting
e. And other general related meeting

22. OPTION TO TAKE OVER THE WORK

The Contractor shall have the option to take over works included in an awarded Job Order and
complete the same if any of the following occurs:

a. The Specialty Contractor fails to provide resources as per Contractor-approved

Construction Project Schedule;
b. The Specialty Contractor abandons or fails to continue with the construction of the works;
c. In the judgement of the Contractor, the Specialty Contractor has been unreasonably
delayed or is no longer capable of completing remaining works on time; and
d. The Specialty Contractor further sublets portions of the job order.
 Specialty Contractor shall indemnify the Contractor for the damages that will be incurred should
Contractor exercise this option.

23. WARRANTY

Specialty Contractors warrant its works for a period of 3 year(s) against all defects in materials or
workmanship as provided for in the National Building Code.

24. EQUIPMENT AND OPERATOR

The Contractor shall provide needed Equipment with Operator to the Specialty Contractor. The
Specialty Contractor shall fully liable in maintenance of Equipment.
Mobile Crane & Backhoe, both equipment and operator to be provided by the Contractor; while
Pumpcrete will be charge to the Specialty Contractor.

25. POLICY ON USAGE OF COMPANY EQUIPMENT AND DIESEL CONSUMPTION

Strict monitoring shall apply to the usage of the Contractor’s equipment. It is agreed that the
Specialty Contractor shall ensure its proper usage and maintenance. This includes the policy that
upon use by the Specialty Contractor of the contractor’s equipment, the former shall have
responsibility to have the latter’s equipment fully filled with diesel.

26. DIESEL, OILS AND LUBRICANTS

It is the responsibility of the SPECIALTY CONTRACTOR to ensure that the diesel being utilized is
from reputable suppliers only because usage of poor quality or contaminated fuel will result to
substantial damage to the equipment. In this case, the Specialty Contractor shall be fully liable in
having the equipment repaired or replaced.

27. CARE AND PROPER USAGE OF EQUIPMENT

a. Employ trained operators

b. Observe proper usage of the equipment
c. Assume full responsibility and liability for all assigned equipment
d. In cases when equipment is found to be damaged due to improper usage or delinquency
of Specialty Contractor or its employee thereof, the Specialty Contractor shall be fully
liable in having the equipment repaired or replaced.

28. FORMWORK SYSTEM

The Contractor will provide a Table Form System to the Specialty Contractor and will charge for a
monthly rental of One Hundred Thirty-Five Thousand Pesos (₱135,000.00). Safekeeping and
Maintenance by the Specialty Contractor. Any damaged parts of the Table Form System will be
charge accordingly to the Specialty Contractor.

29. ACKNOWLEDGEMENT OF PAYMENTS AND RECEIPTS

Upon receipt of payment for the corresponding billing made, the SPECIALTY CONTRACTOR should
issue official receipts as proof of received payment. Likewise, it is the SPECIALTY CONTRACTOR’S
responsibility to submit ACKNOWLEDGEMENT RECEIPTS with controlling number indicating the
list of checks received from the contractor for the previous week’s collection.

If the Specialty Contractor cannot issue an official receipt, they must produce and submit receipts
named after the contractor.

30. ADDITIONAL REQUIREMENT ON THE SUBMISSION OF MEPF GENERAL REQUIREMENT TEST

The Specialty Contractor upon submission of the MEPF GENERAL REQUIREMENT TEST, the
Specialty Contractor shall see to it that it conforms to the STANDARD requirement of MEPF CODE
 of the Philippines. It shall be substantiated document, photos showing that it follows the standard
requirement.

31. ARBITRATION

If any disagreement or dispute arises between Contractor and the Specialty Contractor regarding
the Project and if they are unable to resolve the disagreement between themselves, the same shall
be submitted for arbitration by either party to the Construction Industry Arbitration Board applying
the Construction Arbitration Law of the Philippines. The Decision of the Arbitration board shall be
final and binding on the parties.

32. MISCELLANEOUS PROVISION

The Contractor endeavors to maintain fairness in its dealings with all Specialty Contractors and as
such, is prohibiting its Specialty Contractors from giving personal expensive gifts or cash to select
employees. Giveaways such as raffle items for Christmas or food for consumption of all employees
are much more appreciated.

IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above written.

BILLY REYMOND G. DE LEON ENGR. EDUARD F. ALAMILLO

CONTRACTOR SPECIALTY CONTRACTOR

Signed in the presence of:

_____________________________ ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

Name Gov’t issued I.D Date/Place Issued

Billy Reymond G. De Leon

Eduard F. Alamillo

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.

This instrument consisting of ____ page/s, 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 20____.