CONTRACT AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT made and entered into this _________________ in San Miguel,
Leyte, by and between:
CORILLO BUILDERS AND SUPPLY, a construction firm duly organized and existing
under the laws of the Republic of the Philippines with principal office address at Palo,
Leyte herein represented by its Proprietor and Manager, Archie Corillo, hereinafter
referred to as “Party 1”.
-and-
Guinciaman Women Association represented by its President, Ms. Irene Rosco and
Lukay Women Association represented by its President, Ms. Susan Salazar, an
individuals with residential address, at Brgy. Guinciaman and Lukay, San Miguel, Leyte
respectively hereinafter referred to as “Party 2.”

WITNESSETH
WHEREAS, the Party 1 is looking for a Construction Firm who will contract a One Unit
Grain Dryer House, with an area of 15m X 20m (see attach program of works);
WHEREAS, Party 2 has offered to undertake the said project;
NOW THEREFORE, for and in consideration of the foregoing premises which form an
integral part of this Agreement and the mutual covenants and stipulations set forth; the
parties hereby agree as follows:
SECTION I - CONTRACT DOCUMENT. The following documents shall be deemed to
form and be read and be construed as an integral part of this contract in the same order
of precedence as below: 1. Program of Works 2. Priced Bill of Quantities (BOQ) 3.
Technical Specification 4. Manpower & Equipment Utilization Schedule 5. Approved
Plans for Construction.
SECTION II - SCOPE OF WORK. The Scope of Work of Party 2 under this Agreement
shall be to undertake the furnishing of any and all Materials, Equipment, Manpower and
Supervision and doing of any and all works unless otherwise specified in the manner
specified and called for by the scope of work listed hereunder in accordance with the
approved Plans and Specifications, to wit; MATERIAL TESTING AND PROJECT
BILLBOARD/SIGNBOARD OCCUPATIONAL AND SAFETY HEALTH PROGRAM
MOBLIZATION/DEMOBILIZATION CONCRETE WORKS REINFORCEMENT
FORMWORKS AND SCAFFOLDINGS MASONRY FOOTING, MASONRY &
PLASTERING
SECTION III - EXECUTION OF WORK. Party2 shall commence work within Three (3)
Calendar Days upon the receipt of the Notice to Proceed (NTP) from Party 1.
SECTION IV - CONTRACT COST AND PAYMENT. Party 2 agrees to undertake the
Project’s Labor and Materials to the satisfaction of Party 1 in the amount of Three
Million Eighty One Thousand Five Hundred Forty Three Pesos (Php 3,081,543.00) NET
in accordance with the following terms, to wit; 1. 15% down payment upon execution of
work for mobilization purposes. 2. The First Progress Billing shall be submitted to Party
1 when the Physical Accomplishment reaches Fifty Percent (50%). 3. The succeeding
Progress Billing shall be submitted to Party 1 every two weeks. Party 1 in any Progress
Billing may make any correction or modification that should be properly made to any
billing and is entitled to deduct any other amounts from the monthly progress payment
that may have become due and payable. The basis of payment shall be the actual
quantities of work carried out as measured jointly by Party 1 and Party 2 and deemed to
be recommended for payment.
SECTION V - GUARANTEE, DEFECTS LIABILITY PERIOD AND UNDERTAKING.
Defects Liability Period shall be 3 months from the date of the acceptance of the Project
by Party 1. Within this period, the Subcontractor shall repair, remedy and make good all
defects at its own expense, to the full satisfaction of Party 1.
SECTION VI - LIQUIDATED DAMAGES In case Party 2 refuses or fails satisfactorily
complete the Project within the agreed upon time schedule and that it is responsible for
such delay or such delay was due to its acts or omission, Party2 shall pay Party 1,
Liquidated Damages (LD)of at least One Tenth (1/10) of one (1%) Percent of the cost of
the unfinished portion for each day of delay.
SECTION VII - TERMINATION OF CONTRACT. To ensure timely and effective
remedial steps in response to delays in project implementation, Party 1 or his duly
authorized representative shall undertake the following calibrated actions whenever
contracts reach the levels of negative slippage indicated below: A. Negative Slippage of
5% (“Warning Stage”) – Party 1 shall be given a warning and required to submit a
“CATCH-UP” program to eliminate the slippage. Proper transitory measures shall be
taken to minimize work disruptions, e.g., take-over by administration while rebidding is
going on.
SECTION VIII – EFFECTIVITY. This AGREEMENT shall be valid from signing hereof
until completion of the project as embodied in the Scope of Works. This Agreement
shall be deemed to have expired when all obligations of the Parties under this
Agreement have been performed to the full satisfaction of Party 1.
 IN WITNESS WHEREOF, the PARTIES, through their respective representatives, have
hereunto set their hands this ___________________________ at San Miguel, Leyte.

ARCHIE CORILLO
CORILLO BUILDERS AND SUPPLY/PARTY 2

SUSAN SALAZAR
PRESIDENT, LUKAY WOMEN ASSOCIATION/PARTY 1

IRENE ROSCO
PRESIDENT, GUINCIAMAN WOMEN ASSOCIATION/PARTY1

SIGNED IN THE PRESENCE OF

________________________________ ____________________________

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES) )
BEFORE ME, a Notary Public for and in the above stated locality, personally appeared
this day of _____________ 2021, the following:
Name Valid ID Date/Place of Issued
Archie Corillo __________________ __________________________
Susan Salazar __________________ __________________________
Irene Rosco __________________ __________________________
Known to me and to me known to be the same persons who executed the foregoing
instrument and who acknowledged to me that the same is their own free voluntary act
and deed, as the duly authorized representative of entities herein represented. This
instrument refers to a Conytract Agreement consisting of three (3) pages including this
page whereupon this acknowledgement is written, which were signed by the principals
and their witnesses on each and every page hereof.
 NOTARY PUBLIC

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