general condition of contract.pdf

7/25/2019 General Condition of Contract.pdf

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Fll,INVEST ALABANG,INCORPORATED

M AIN PRO JECT TITLE :FESTIVALSUPERMA LL

TRA D E PACKAGEJ SANITARY/PLUMBING WORKSMALLEXPANSION BUILDINGS ALONG CIVIC PRIME

SUBJECT :GENERAL CONDITIONS OFCONTRACT

ARTICLE I- INTENT OF CONTRACf DOCUMENTS

1.0 The CONTRACTORshallundertaketheWorks in accordance with theTechnical Specifications, Plansand Shop Drawings and subsequent revisions, General Conditions of Contract, SupplementalConditions, and allother Contract attachments whichareall part of CONTRAct DOCUME('.'TS.Unless otherwiseconstructionlimits are definedonthe plans, or asdetailedinthecontractdocuments,the CONTRACTOR'S scope ofworks are presumed to be all itemsshownon the plans which areconnectedor pertainingtotheContract Works.

2.0 Theintent andthe spiritof the Contract Documents aretoprovide for alltheWorks,as specifiedandshown,to be executed withdue care,diligenceandresponsibility andtobe soexecutedwithin the

ContractPeriod.

3.0 TheCONTRACTOR shallexecute the Worksin every detail forwhich itis specificallydesigned,andagreesto furnisheverythingreasonably and indispensablynecessaryforthe Works, [0ensure itStimelycompletion and toleavethe Worksto the entiresatisfaction ofFILINVEST.

4.0 All matterswhichmay beomitted from theContract Documentsand may reasonablybe inferredto beobviouslynecessary forthe efficient executionand completion of the Works, shall be deemed to beincludedintheContract Price.

5.0 Itisdeemed that the CONTRACTOR, before signing theContractDocuments,hasreviewed allbiddingand Contract documentsand has queried every ambiguity in thecontractprovisions that maypossiblyaffect theContract Price. TheCONTRACTOR shall,therefore,be responsible for any errors andlorlosses

hemay suffer as a consequence offailing to obtain such meaning andintent,or informing FILIhrvEST ofany discrepancy ordivergence. TheCONTRACTOR shallnottake advantageof anyapparent errororomission in or from theContract Documents.

6.0 In case of a General Construction, the General Contractor shall be issuedcomplete plans for Civil,Structural, Architectural, Plumbing/Sanitary, Mechanical, Electrical, Fire Protection, and other TradePlans as may be applicable ornecessary.All plans are deemed interrelated and complementary to eachother. Beforethe CONTRACTOR signs the ContractDocuments, itis deemed that hehas clarifiedallomissions,discrepancies and divergences andany otherambiguities on the plans.For failure toinformFILINVEST immediately, FILIl\rvESTshallnot be heldliabletopaytheCONTRACTOR for additionalcosts that the CONTRACTORmay incurarising out of suchomissions, discrepanciesand divergences.Additional details that arelacking onthe plans are part ofomissions which theCONTRACTORshouldhave addressed before the award of the Project.

7.0 AllContractDocuments, as defined,shall beof equal weightand shall be takenasmutually explanatory

to one another.In case ofconflict between documents, the one bearingthelatest issuance date shallprevail,

8.0 The apparent silence of specifications andplans on any detail, or thea t omission therein of adetailed descriptionor definitionconcerning the qualityofmaterials workm hip shallbe regarded

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tomean that only materials orworkmanship of first class quality arc to beused and incorporated bythe

CONTRACTOR into theWorks.

9.0 The CONTRACTOR shall m a k e no deviation from the approved plans and specifications without priorwritten approval from any duly authorized representative of FILINVEST. A mere act of tolerance by

FILINVEST representative inimplementing the work not inaccordance with theplans orspccificatious,or a verbal agreement, shall not in any way or beinterpreted as an approval unlessan official SiteInstruction is issuedby Filinves t Project Manager. Deviations orchanges made without prior approval bythe Project Manager shall give FILTNVESTulc right toreject theCONTRAC'TOR'S work.

Unless otherwise the instruction to deviate from plans emanated from and directed by FILINVEST

representative in writing, the CONTRACTOR shall still be ultimately responsible for any deviation

from plans or wrong construction despite written conformity by FlLINVEST representative on any

request forwork approval prior toimplementation. FIUNVEST only bears the responsibility for review

and inspection of work in accordance with specifications and standard operating procedures.

Intheevent that the Works, or any part thereof, isrejected due to the failure ofthe CONTRACTOR tocomply as per above, FILlNVEST may then order the CONTRACTOR todemolish the non-complying

work. In case th eCONTRACTOR failstoact as ordered within aspecific period within theconstructionschedule, FILINVEST shall have the right toemploy theservices ofother parties as deemed necessaryto execute the re-works and charge all expenses incidental to thesaid re-works to the CONTRAClOR.

Inall cases, cost of re-works arising as per above shall be borne by the CONTRACTOR or deducted

fromtheContract Price for the benefit ofFILINVEST.

10. The CONTRACTOR may berequired tosubmit shop drawings,subject for correction and approval by

the Project Manager, toelaborate andshow details ofconstruction that arenot normally shown on plans.Corrections shall have the purpose of either a.) correcting insufficiencies in the derails to suit standard

specifications or existing codes; or b.) correcting to improve the design of the original structure. No

claim for additional cost shall be granted the Contractor for corrections related tocase a.).

The CONTRACTOR m ay be entitled to claim additional compensation on thecorrections related tocaseb.) above only when there w a sprior approval fromFILlNVEST of such claim before implementation ofcorrective measures.

Theprovisions herein shallalsoapply in case of"design and construction" Contract.

11.0 Unless otherwise indicated as"excluded" or"not included" or"by others" onthe plans, or in the

scope of works, or in anypart OfU1CContract Documents, allstructures andrelated construction indicated onthe plans aredeemed part of the CONTRACTOR'S Scope of Works and likewise deemed included in

the Contract Priec.

ARTICL.EII- D U T Y T O WARN

1.0Before the Project is finally awarded, The CONTR...


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3,0 lllcCONTRACTORshallwarnth eP roject Manager,before executing any work or any portionthereof, regarding any p otential risk ordanger toproperty orexistingconstruction adjacent to theWorkswhenexecutedsothat the Project M anager mayprovide appropr iate decisionsin order to preve n tthe occur rence ofsu ch potential d am agetopropertyor even life.'For fa i lure towarn th e ProjectManager,the CONTRACTORshallbea rall consequen ce ofanyd an lage incuired due totheWorksexecuted, Ifd am ages occurred even afterremedial measures were made, theCONTRACTOR shallstill b e a r theresponsibilityfor anyloss oflifeor da mag e toproperty.Loss or damage may beclaimed by[heCONTRACTORfromhisinsurance pol icy and notfrom FlLlNVEST

ARTICLE I I I - PROJECT SITE CONDITIONS

1.0 Itis d eem ed t hat, prior to the award ofth eProject, th e CONTRA(.',},ORbas inspected the s ite s an dhasfamiliarized himself onits actualconditions necessary to implement the contract plans,withfullcostprovision and allowance,whichincludethenature,location oftheProject,c limaticconditions,natureandco nd itions of terrain and to pography, accessibility,transportation and commun ication , materialsavailability,p ower and water supply,and all o th er factors tha tmayaffect th e cost an d duration of theProject.

2.0 lllcCONTRACTORshallacceptthe Project Siteas fou nd on the commencement ofthe Projectand,athis owncost,cleartheProject Site ofanydebris orvisible o b struct ion which mayhaveb een left byprevious occ upant or contractor.Unlessspecified in anypartof theContract Docum ents to be parto fCONTRACTOR 'S sco pe, FILINVESTshallbe responsibl e to d em olish or relocate undergro und utilities

orst ruc tu rethatm ay poseas obst ruction tothe co ntr act Works.

3.0 TIle CONTRACTOR sha llalsobed eem ed to haveco nsid e red and inspected existing utilities(water,sewer, drainag e, power , communications, etc.) andother structuresfoundtobe closelyadjacent to thcproposed construction works.The CONTRACTOR shallexercisedue d i ligence and care in order toprotect suchexistingutilitiesand structures andp rev ent any possib le damage theretoin the execution oftheWorks. The CONTRACTORshall beobl ig ated to con duct athoroug h survey ofexisting st ru ct uresandform ulate for h imselfpro tective m eas ures . The CONTRAcrOR shall be ar the consequence ofdam aginga ny existing structu re andshall beresponsiblefor the com plet e resto rationo fth esame.

ARTICLE IV - PERMITS AND RIGHTS OF WAY

l.0 Constructio n Permits:Unless otherwisespecified to be contraryin the Contr act Documents, the

C0Nll{'ACTORshallsecure all necessary permits and pay a 1 J feesor charges legallydemandable , orwhich shall be legally demandable under anyLaws, Regulations,Decrees,Ordinances,Charters,Presidential Decrees, Codes, and other Rules mandated bythePhilippineGovern m ent, orany otherAuthority, Municipality,Company,orOrganization havingjurisdictiono ve r th eWorks.Suchfees andcharg esare deem ed included bythe CONTRACTORin the ContractPrice.

As partofc om pliance witht he Construct ion Permits,and whereapplicable,theCONTRACTORshallfully complywith all existing CONSTRU(''TION GUIDELINES, paypen alties em bodied therein foranyviolationthereof, issued byFILlNVESTto Contractors during thee x e cu t io n ofth eWorks.

2.0 RightsofWav:

2,l Land or right ofwayfor work to be constructed under the Agreem ent shall be provided

by FILINVEST as shown on thedrawings. Nothing in thePlans, Specifications and otherContractD ocum ents shallbe interpreted as givingtheCONTRACTOR exclusiveoccupan cy ofth elandso rr ightsofwayrequiredfor th ec onstruction operations.

2.2 Except as maybep rovided by FILINVEST, the CONTRACTOR shotlh5Celgove rn m entor private , theneces sary permitsto create o bstruction , t m ake exc ava ions, an dotherencroachments necessary for construction and for movem en t ofeqiii

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CONTRACTORsballbe responsiblefor theproperrestoration of allexcavationsandpavements

torespective originalorbetter conditions.

ARTI('''LE V- PRE-CONSTRUCTION REQUIREMENTS

1.0 Notice of Award: FTI..INVESTshall issue the CONTRACTOR a NOTICE of AWARD (NOA)signifyingthatFILINVESTbas awarded theProjecttotheCONTRACTOR.Once acknowledged bytheCONTRACTOR, the NOA shall become a binding agreement between FILlNVEST and (he

CONTRACTORfor thee xe cu tio n of( heWorks.

2.0 N otjc e To Proceed and Commencement of Works: Upon perfection of the N O A , flLlNVEST'SProject Manager shall issue the CONTRACTOR a written Notice To Proceed (NTP) where theeffectivity date of the Contract is indicated. Once issued, the CONTRACTOR shall immediatelyacknowledgeand signtheNTP and return the same toF1UNVIJSTwithinfive(5) workingdays afterthe saiddocument arriveand received QI thc office of th e CONTRACTOR through courier. ForProjects thaI are considered"rush"or"critical", thcCONTRACTORshall beobligedtoacknowledgeandreturnNTPnotlaterthanthree (3) working days. FTI..INVESTshall have the option tocancel the NOA should th eCONTRACTOR fai lsto acknowledgeandrerum the NTPto fIllNVF.sTafter(en(10)working days

3.0 fxe-Con.


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. . ,eMatters taken up and agreed upon in the pre-construction conference s.baJJbecome pan of theagreementsandcovenants of both parties.

ARTICLE VI- BONDS AND INSURANCE

Prior to the faithful execution of the Works, and before any release of downpayment is made, theCONTRACTORshallsubmittherequired bonds and insurance toFILINVESTas foUows:

1.0 PerformanceBond: Toguarantee the faithfulperformanceofthe CONTRACTOR'S obligationsundertheAgreementand thisGeneralConditions,theCONTRACTORshallpost,upon issuance of the Noticeof Award, a PerformanceBondequivalent to thevaluestated in theNOA. ThePerformanceBondshallserve the followingpurpose, other t hanthe conditionsmentioned therein:

J.l Guaranteethefaithful performance oftheAgreementfrom commencement untilcompletion;

1.2 Answer forany liquidated damages (LD)set forthinthe Agreementshould retentionmoneyandother receivablesdueto theCONTRACTOR beinsufficient to coverthe LD penalty;

1.3 Answer for any unpaid cost of materials, or equipment, or labor in the prosecution of theAgreement which have been advanced or paid for by FILrNVEST on bebalf of theCONTRACTOR;

1.4 Answerfor anyliability that maybesuffered byFlLINVEST resulting from any violation bytheCONTRACTOR againstany existinggovernment laws.

111ePerformanceBondshall not beterminated untiltheCertificate of Completion and FinalAcceptancehasbeenissuedbyFlLlNVEST and the Guarantee Bondhasbeensubmitted bythe CONTRACTOR.

The CONTRACTOR shall post an additional Performance Bond tocover anycumulativeincrease overthe ContractPriceas a result ofadjustment in theunit prices or quantitiesofwork and allotherpriceescalationofwhatever nature.The CONTRACTOR shall cause theextension. at his own cost,of thebondvalidityto cover time extension,approved or otberwise.

2.0 Downpavment Bond- before any downpayment or cash advance isissued the CONTRACTOR by

FILINVEST in the execution of the Works, the CONTRACTOR sball be required to submit adownpayment bondintbe form of surety ("eallable ondemand"), which shall remainvalid until tbcdownpaymenthasbeen fullyliquidated bythe CONTRACTOR against his progresspaymentsreceivedfrom FILlNVEST. 'The CONTRACTOR, at his expense, shall cause the extension of such bond ifliquidation of thedownpayment has notbeen realized,foranyreason whatsoever,after the expiration ofthebond validity.

3.0 Guarantee Bond- Priorto or simultaneous with the issuanee byFILINVEST of the Certificate ofCompletionand Final Acceptance, the CONTRACTORsball submit aGuaranteeBond equivalent toTenPercent(10%) of the Contract Price,includingTen Percent(10%)of aUvalues ofchangeordersandextra works,andshallbe valid for a periodof one (1) year fromthe date ofissuance of theCertificateofCompletion and Final Acceptance. The Guarantee Bond shall answer for whateverviolations of thewarranties bythe CONTRACTOR and/or for any other claim for damages by HLlNVEST against the

CONTRACTOR under the Agreement whichremain outstandingand unsatisfied.

4.0 All bonds and insurancepolicies shall be secured by the CONTRACTOR through FfLlNVEST'sInsurance Department who shall then endorse the CONTRACTOR to one of its aeeredited bondingagencies, inthe best interest of FILINVEST.

ARTICLE VII- CONTRACT PRICE ANDUNIT R


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..I0 T h e L u m p S u m Co ntract P riceis deemedto have includedall materials, labor,construction plants,tools,supervision,overhead expeascs, profit,and allOlber C OS tofincidental mattersand items indispensablynecessary for th e timely execution andcompletion of all the Worksinaccordance with the plans,specificationsandallother documents th:u arepartof the Agreement

TheLumpSumContractPrice shall be fixed and firm and shallbepaid infull iftheContractorhascompleted the entire Worksand bas compliedwitb all requirements of the s cop e ofwork,plans,specifications, and all otherconditions ofContract. Progress payments shallbebasedon theapprovedpercentage ofaccomplishment or ba se d upo n m ilestone com pletion fo r everyitem inthe

BreakdownofL u m p S u m Pri ce (or called the "Breakdown").

Unless otherwiseamended, the unit rates Stated inthe Breakdownshallbeusedto co m pute for possiblechangeorders andextraworks grantedduringthe implementationofthe Project.However,the quantitiesin tho Break do w n f oreach item shall bemade reference onlyfor moni toring ofaccomplishment and not(0beused as basereferenceincomputingforadditiveor deductivechange orders.Over-runsor under-runsi n thequantities (actual quantities versusquantitiesstaledin OIC Breakdown), shall have no effecton the lump sum priceif nochangesweremade on theplans, scopeofworks, specifications and otherrela ted Contract do cuments. Therefo re, inthis case,theLump Sum ContractPrice shallbe paid infull,regardlessof any over-runor under-run in suchquantities.

2.0 TheContractPrice isgenerallyconsideredasLumpSumand shallbe f ixed and firm andshallnot besubjectto priceadjustment exceptinthefollowing cases:

2. 1 Minimumwage increase mandated bv law: Subject for approval by FILINVEST,tbeCONTRACTOR is given the opportunity 10 submit a lump sum amount representing theadditionalcostoflaborfor everypesoincreasein theminimumwage.

Thewage increaseshallbeappliedto t he balance ofworkbasedon the effectivitydateofsuchwageincreasea n d shall bepaid proportionate10theapprovedpercentage (%)ofscheduled (perS-Curve) progressaccomplishment.

In case the ContractPrice is reduced, thc corresponding lump sumlabor escalation isproportionately reduced.In case of upwardadjustment intheContractPricedue to changeorders and/or extra works,thelumpSUUllabor escalationis proportionately increased.

TheCONTRAC-TORshallnotbe entitled10 claimfor extralaborescalation payment duetoextended time of Contract for anyreason whatsoever.Forthe same reason, no extendedoverhead laborcost shallbecomedue to the CONTRACTOR.

There shall benoadjustmentin theContract Pricefor any fluctuation of theexchange againstanyother foreigncurrency.

2.2Extra Works:TheContractPrice shallbeadjuSteduponinclusionofapproved additionalworksthat are c ons idered notpartofthe originalscopeofworks.

2.3Change Orders:The ContractPrice shal lbeadjusted upwardly or downwardly uponinclusion ofap proved change o rd ers du eto revisionsin th e plans, specifications an dsco p eo fworks.

ARTICLE V lJ I - PAYMENTS ANDRETENTION

1.0 Downpayment: Where statedintheNotice ofAward an d upo n is su an ce of the Notice10P roce e d , theCONTRACTOR shallsubmithisrequest fordownpayment and shallpost a Downpayment Bondequivalentto thevalueofthe downpaymeat, aPerformanceBond, andaContract ' .skInsurancebeforethereleaseofsuchd ow npaym en t. F lLINVEST shalldeduct fromev progressbil. ofthe


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CONTRACTOR the equivalent percentage ofdownpayment until such is fully liquidated at eightypercent(80%) actual projectcompletion.

FILINVEST reserves theright 10reducethe amountofdownpaymeut incase thereisdeletion inthescope of work that would entail reduction in the Contract Price In this case, the reduction shallautomatically be applied against the next progress billing after the official deletion of scope wasimplementedinwriting.

IncasetheAgreementwasterminated,amicablyorotherwise, beforethecompletionof theProject,theCONTRACTOR shall be obliged to returnto FILINVESTtheamount ofunliquidated downpaymentafter deductingallmoney still to theCONTRACTOR.

2.0 ProgressBillines:

2.1 'OleCONTRACTORshall submit for approvalbyFILINVESTa CertificateforPayment foreverybillingperiodspecified in theAgreement and shall be supportedbyprogressive as-builtplans, milestone completion indicators, duly certified accomplishment reports, and other

supportingdocuments thatm ay berequired byRLINVEST. A ll. certificates for paymentshallbeevaluatedbytileProject Managerand approved byhimwithin fifteen (IS) workingdaysfromthe dateof submission. Checksfor payment shall be proecssed byFILINVEST nodshall be

released within twenty (20)workingdays fromthe date of the Project Manager's approval.Releasing of checks shall strictly be only on the day and time of the week specified by

FILINVEST Accounting Department and shall takeprecedence over and after the (by ofpaymentcovered bythe20days processing.

2.2 At the optionof FILINVEST,allcompletedworks billedandpaid shall be subjectforregularauditing and inspection by Filinvest Inspectorate Team. FILINVEST reserves the right 10recover from any succeeding billing(s) anyoverstatement ofworkquantities and,consequently,overpayment ofpreviousworks found tobeincomplete anddidnot complywiththe conditionsfor payment, and withhold such amount untilcompletion thereof.

2.3 General ProcedureinQuantification andPayment ofBillings fora LumpSum Contract:

2.3.1 ProgressBillings fromContractors shall bereasonablyassessed byRLINVEST onthebasisofpercentage (%) accomplishment ormilestone completionforeachitemof

work asrequired forintheAgreement;

2.3.2 flLINVEST shallinspect andcbeck all quantities for supplyand installationworkstoseeiftheyarereasonablybilledandno overstatementofquantities waspresented bytheCONTRACTOR;

2.3.3 At 100%completion. FILINVEST shall inspect and finally check all works iftheyhavebeen fullycompleted andhave complied with all requirements of theplans,specifications, scope of works and with the conditions of contract. If all suchrequirements were complied, then FILINVESTshall paythe CONTRACTOR the fullContract Price, regardless of the outcome of the finalactualquantities of workaccomplished. In this case,nojoint measurement between FILINVEST and theCONTRACI'OR is required toverifytheexact quantitiesofworkinstalled.

2.3.4 Jointmeasurement shallonlybe done illany of thefollowing cases:

a. If the Contract was awardedof aUnitPrice system;

b. If there isan additive or adeductiveportion of the Contr ,,,,_"'*

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a i J : t '" ' ptClliXlOiliy sballbeme a su re d and nomeasurementshan be made for theres!ofthelump sum pnee

Z3S Deduction from the Lump Sum Contract Price shall only be made inany of thefollowingcases:

a If a portionor several portions of the works were deleted byFILINVEST asdeemed necessary. General/Preliminary items shall likewise be reducedproportionately except for fixed costs that have been expended by the

CONTRACTOR at thestart of theProject;

b. If a portion or portions of the works have been changed and reflected in theapproved revised plans and would necessitate having additive and deductive

change order. In this case, theaffected items in the original contract shall bedeleted from the lumpsumprice andshallbecoveredbyaseparate changeorderand paidseparately.

c. If downgrading or substitution of materials hasbeen made withprior approvalbyFILfNVEST. The net effect of the downgrading shall be deducted from theContractPrice.

. 2.4 Before payment and release of the final( JO O % ) billing, all works shall be subject for finalinspectionforthepurposeof identifyingall punchlistitems subject for rectification.The finalbilling shallonlybereleasedonthe following conditions:

2.4. I CompleteAs-built plans inoneoriginalreproducible copy and two (2)print copies,plusand AutoCaddfile of theentire plans;

2.4.2 Certificate of FinalInspection byFUJNVEST InspectorateTeam indicatingthat allpunchlistitems havebeen completed.

2.5 Separate from item2.3.5,all progress billingsshallbesubjcct totbe following deductions:

2.5.1 Retention:Unlessotherwise amended in theAgreement, all progresspayments shallbesubject to tenpercent (1O%)retentionof the grossamountof billing.T Ile retentionmoney shall be released back to the CON'rnACTOR, interest-free, upon the

CONTRACTOR'S submission of thefollowing:

a. Certificateof Completion and FinalAcceptance;

b. Affidavit attesting:tbatthe CO.NTRACTOR has fully paid alltaxesdue fromh imand allother obligationsfor the paymentofmaterialsto his suppliersand wagesof hisemployees; that the CONTRACfOR tbereby relieves FILINVESTfromany claim byanyofhis subcontractors, suppliers,lessors, employeesand otherthirdparry in connection withhistransactionswiththeseentities;

c. Certificate ofQuitClaim againstFILINVEST;d. GuaranteeBond;e. OccupancyPermit,incaseofbuildingconstruction

2.5.2 Two percent(2%) WithholdingTax;

2.5.3 Cost of anymaterials, equipment, labor and otherresources forand in behalf of theCONTRACTOR due to the CONTRACTOR'S failure to supply such resourcesrequiredin the immediate execution of theWorks.tn this case, CTORshall be chargedwith two percent (2%) permonth,until such c Sts arepaid ytheCONTRAG'TOR,inthe form ofadministrative charges ontopof purchase pricesofsuchitemssupplied by FILINVEST;

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2.5.4 COStof rectification shouldered or to be shouldered by FILINVEST but for theaccount of theCONTRAC'TOR;

2.5.5 Any other cost elements incurred by f1UNVEST but deemed chargeable to theaccount ofthe CONI'RAcroR.

ARTICLE IX- CHANGE ORDERS, EXTRA WORKS AND CIArMS

1.0 SiteInstruction:AChangeOrderorExtraWorkshallbeperformed by the CONTRACTORonlyuponissuance of Site Instruction duJy signed/endorsed by the Project Manager and approved by a dulyconstituted FILINVEST CorporateOfficerauthorizedto approvepayments ofChangeOrders andExtraWorks. Before issuinga written siteinsrruction, FILINVEST may require the CONTRACTOR tosubmit within ten(l0) workingdays adetailedaccountoftimeandcost implications of complyingwiththeproposedcharge orextraworkorder. FILINVESTbastbe soleprerogative in awardingthechargeor extra work order to the CONTRACTOR, or to any other party, whichever is advantageous toFILINVEST.AnyChange orExtraWork performedwithoutanyaccompanying officialSiteInstructionshallnot be paid byFILINVEST. A mere verbal instruction toperformsuchworks isnot abasis forpaymentthereof.

2.0 ChanecinPlatts:Withinthirty(30) workingdays upon the CONTRACTOR'S receiptof the"ApprovedforConstruction"Plans,theCONTRACTORshall adviseFILINVEST of any variation in the Contract

Plansthat mayhaveimplicationsontimeand cost.The CONTRACTORshallalso, within fiftccn(15)working daysafterthe said advise, submit forapproval byFILINVESThisvaluation on lime and CO Stimplicationsof such variations. Should theCONTRACTORfail toinform f1LINVEST andsubmit thenecessarydocuments on variations within thetimes specified herein,FILINVEST shallassume that all

suchvariations were considered bytheCONTRACTOR in theContractPrice.FILINVEST has therighttoreject anyclaim for additional compensationif such variationswere filed afterthe specifieddatebasexpired.

3.0 Any and all instructions for Change Orders or Extra Works given by the Project Manager ofFlLINVEST should be inwriting.The CONTRACTORshall not carry out instructions given verbally,unlessthecircumstancesaresuch tbat failure to carryoutinstructionswouldendangerlife or limb.

4.0 Workssoexecuted or to beexecuted shallbeconsidered as CHANGEORDER in the case ofany of the

following:

4.1 Deviation from contractplans orspecificationsresulting to additive ordeductivecost,and wherethe changes emanated from FILINVEST or from the CONSULTANT as authorized bvFILINVEST; -

4.2 Deviation fromcontract plans or specifications dueto inapplicability of construction based onactual site conditions. In this case, the CONTRACTOR shall obtain written approval fromFILINEVST on suchchange priorto implementation.The COl\'TRACTORshall also specifyand seek approval from FILINVEST of any possible time and cost implication prior toimplementation;

5.0 FILINVEST, asitsprerogative, may introduce changes in the plans as a resultofits value engineering

efforts to savetime and cost or for constructionconvenience.Any deductive cost effect of such changesshallbeapplied tothe Contract Price. Uuless explicitly specified in the Contract, the CONTRACTORshall notbeentitled to any shareincost savings outofits value effortsfor convenienceinconstruction.

6.0 Valuation of ChangeOrderorE'\.traWork: The followingparametersand proceduresvaluationofchange ordersand extra works:

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6.1 The CONTRACTOR shall initiate andsubmit to FlLINVEST his quantity proposal on thechange orderor extrawork subject for evaluation. If quant itie s arc not acceptabletoFlLINVEST, th en F1LINVEST and the CONTRACTOR shall c onduct a join t m easurem ent orco m putation at th e site to se tt le th e d i ff erences in quantities. The joint mea su re m entquantities should be tbe net in-place quan tity m ea sur ed in accordance with the d imensionsrequiredon thedrawings.Allowances forwastage and breakage a re assu m ed integrat ed into tbeun it rates.

6.2The FILINVEST Project Managerat site sball makeh is rec om m endation of the jointm easurem en t q u a nti ties for approval by FlLINVEST Head Officebefore such q uanti tie s arcco mmittedfor award to the CONTRAcrOR;

6.3 Where a S ch edule ofR at es (uponwhich the LumpSum Price was based) h as beenm ade part o fthe Ag re em en t, theUnit Rates thereinare the agreed values to beusedin the calcul atio n ofChange O rdersandExtraWorks;

6.4 W here anitemin theChange Order orExtra Work is notofas imilarnature or executed under adifferen t condition than anyoftheitem s in theSchedule ofRates,the CONTRACTORshallbeallowe d tos ubm it adiffere nt rate thatisreasonab le and should not exceed the rateo f anyitem inth eScheduleofRates thatis ofm oresuperior quality or nature

6.5 Should therebeanycost ofg eneral/prelimina ry itemsse parately in dicated in the Breakdown,

such cost item s arcn otto beimputed in th eunitrat es tobeuse d fore x tra works andchangeor ders .T his ison the presumption thatthe CONTRACI'OR an dits r es ource s arc stillavailableando perating at thejobsite, infull or inpartialscale, for th ecompletion theMainContract.

7.0 FILlNVEST shall en te rtain and evaluateclaims of any nature filed by the CONTRACTOR inconnect ionwitht heWorks onlyupon submission by t he CONTRACTORo fsupporting d o cum entsandot her eviden ces thatmaybe required byFILINVEST. The CONTRACTORshallimmediately informFILINVEST of its inten tion to claim within fifteen (15) daysafter the occurr ence of the issue,circumstance or event leadingto theclaim; otherwise,the CONTRACTOR'S right to claim isautomaticallyforfeitedas assumedwaived by th e CONTRACTOR.

The CONTRACTORshall not be entitl ed to claimforextendedoverhead costa s Itresult ofa pprovedtim eextension duet oc hangeo rders and extra works.

ARTICLE X- PROJEC. IMPLEMENTATION ANDPROGRESS

1.0 Contractor's Site M anagement: The CONTRACTOR sball employa competent Project M anag er orSuperintendent who shall overseethe ENTIRE Project Siteand carry out the contractworks inaccordance with the plans,specif icat ions andother contract conditions. This person shallbe madeavailableat alltimes,from the timeofissuanceofth e Noticeto Proceed unti l thetimeofissuance o ftheCertificateofAcceptance,and shall coordinatewithFILINVEST'S Pro ject Manag erino rd ertofacilitateproper and smoothflowofoperations.Anywritten instru ction issuedbyFJLINVEST'S ProjectManagerto this personshall be deemed to have beenissued to theCO NlRAeTOR.

2.0 Contractor' s Re.ponsibilitvfor theWorks:

2.1 Aftertu m -over ofth eP roject Site by FILINVEST to the CONTRACTOR,t he CONTRACTORshalltake full responsibility inthe execution of construct ion activities covering the diffc=ntsi tes and sball provide materials,manpower, eq uip men t and otherfacilities required in thecontract scope ofworks.

2 .2 Tbe CONTRACTOR shall takerun responsib ui ty to provide the ngbt "' Tworkm anshipoft heWorks,w heth er doneby himor by any ofhis subcont actors. Fhowever, h as the rightto take-over th eWorks, in partial orinfull, should eCONT

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failtoexecute the Workstotherequiredquality and workmanship afterrepeated instructionsandwarningsfrom flLINVEST to makegood theworks tharFnJNVEST con sid ers assubstandard.

Unless otherwisethereisanofficial writtennoticeoftake-overoftbe WorksbyFIUNVEST,and thereuponagreed betweenFlLINVEST and theCONTRACTOR,theCONTRAC'TORshallcontinueto faithfully executethe Projectand assume fullresponsibility until completionthereof.FILINVEST,as ancorporateentity,willnotrecognizeany verbalinstructionfrom anyofitsrepresentativesor any thirdpartyrelated toFILINVEST,to exe cute ortake-overthe worksfOr

andin behalfof the CONTRACTOR which would relievethe CONTRACTOR fromanyresponsibility arisingand asaconsequenceofsu ch take-over, Nonetheless, the CONTRACTORshallstillassumefull responsibility for the Works after such"unofficial"take-over.

2,3 Protection of IlleWorks:The CONTRACTOR shall, where applicable and as appropriate,suitablyprotect,encase,and cover up allworks carriedout by him againstany adverseweathercondition;against damagefrom constructionor by itsworkersorthirdpartyworking withintheProject Site;oragainstanyother causeuntil theWorks areturned-over to and acceptedbyFTUNVEST,IfcertaindamagetotheWorkswascausedbyany ofother contractorshired byFlLTNVEST,the CONTRACTORshallimmediatelyinformandreporttofILINVEST the occurrenceofsuchdamageand presentsufficientevidencesto substantiatehis claim for damage. In turn,FILINVESTshallhavethedutytoactasthe"arbiter" intbcsettlementof suchclaimbut shall

not beheldresponsible to payanycost ofdamage,Ifthe claimwasprovento bevalid andagreeable betweenthetwoparties,thenF IL T N V E STshallhave the right tow ith hold any sumdue to the contractorwho causedthedamageand deduct the such claim in favor of theCONTRACTOR.

3.0 Subletting: The CONTRACTOR shall not sublettheWorksor anypart thereof without firsthaving obtained writtenapproval fromtheProject Managerof hisintention todo so . TheProjectManagershallbeentitledtorequestandreceivedetails ofthe proposed Sub-Contractor(s) ashedeemsappropriate.

Sublettingthe Works shallnotrelievetheCONTRACTORfrom any liabili ty or obligation under theAgreementandtheCONTRACTORsballbefully responsiblefromany andallacts, omissions, defaultsandneglectsofany Sub-Contractor,orSub-Contractor's employees, servantsor agents.

4 " 0 Compliance\vitll Instructions:

4. I TheCONTRACTORshall forthwith complywithaUinstructionsissuedto him bythe ProjectManagerinregardto operational matters wherethe Project Manageris expressly empoweredbythe Conditions of Contractto issue instruction. Unless expressly empowered by theConditionsofContract, the

ProjectManagershallhavenoauthoritytoreliev e the CONTRACTORof any ofhisobligationsandresponsibilities set outin ContractDocumentsortoamend theContractDocuments, Allinstructionsissued by theProject Manager shallbein v . .riting.

4.2 For failure to conduct any required tests, the Project Manager may issue instructionsrequiring theCONTRACTORto openup forinspection anywork coveredupto arrangeforor carry out anytest ofanymaterials orgoods (whetherornotalready incorporated intheWorks)or ofanyexecutedwork,andthe costs ofsuchopeninguportesting(togetherwiththe cost of makinggoodin consequence thereof)shall beborneby theCONTRACTOR.

'T heP roject M a n ag er m ay re quire the CONTRACTORtocarryout additional testsor aseriesoftestsonexecutedworkwhichin theopinionoftheProject Manageris n ec essa " as aresult ofthefailureofapreviousinspectionor test.Insuch instances,the entireco of ope up for


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inspectionand tests,togetherwith the cost ofmaking goodinconsequen thereof,. 1be


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borne bythe CONTRA(''TOR and no extensionoftime shallbegranted as aresultof this sub-c lause regardless ofth e resultsofsuchseriesof tests.

5.0 Acceleration of Work:FIl.INVESTmayissue instructionfor th e C O N T R A C T O R toacceleratethe paeeof theWorks in order to catchup withapproved schedule. Therefore, theCONTRACTOR mayberequired,athis cost,toprovide addiuooal workforce,orrenderdoubleworkshift, orrender overtimework inorder to catchupwitbtbe schedule.

6.0 Progress ReportsandPhotographs:TIleCONTRACTOR shallfurnish FILINVEST with Daily and

MonthlyReportsindicating, among others,the statusofMaterials,Equipment,andManpowerbroughttothe site; causes ofdelays;current problems;and catch-up programs. MonthlyR ep ort s shallbeaccompanied byatleast36photographs showingthe progressof construction.

7.0 Site Pr oblems: During the executionoftheWorks,theCONTRACTOR rnay encounter problemsof anynature thataffectthe constructionand, therefore,n e e d s decision fr om F I LINVEST SOthat properactioncan betaken.TheCONTRACTOR shall,therefore,havethe dutytoimmediately warnFILIr-.OVESTinwritingof the existenceofsuch problems. T he C O N T R A C T O R shallberesponsiblefor anydelaycauseby hisfailure to warnFILINVESTaccordingly,

8.0 Weather Condition: It is expressly understood !hal the CONTRACTOR has oonsidcredweatheroonditions in thecontract duration andin theContractor Price.Tune extension shallo nly b egranted for My occurrence of Typboon signal no. 3 declared by the Philippine Atmospherical

Geolog ic al andAstronomicalAdministration(PAGASA).

9.0 Constr uction D elavs:Toensure timelyand effective stepsin responsetodelaysinthe implementationoftheProject,FfLlNVEST shallundertake thefollowing calibrated actions should theProjectreach thelevels of negative slippageattributableto the CONTRACTOR:

9.1 Nev,ative Slippageof5%("Earlv Warning"Stage):TheContractor shallbe given warningandshall berequiredtosubmita"catch-up"programin orderto eliminatethe slippage. .

9.2 NegativeSlippageof10%("leu" Stage):TheCONTRACTORshallb egivenasecond warningand shall be requi red tosubmitadetailedaction programonaweekly basiswhich commitshimtoacceleratethe workandaccomplish specificphysicaltargets in order to r e duce theslippageover a definedperiod.Moreover,the CONTRACTOR shall be instructed10 specify th e

additional inputmoney,manpower, equipment,materials,supervision,and other resourcesrequiredforhisaccelerated action program. FILINVEST shall exercise closer supervision andmeet theCONTRACTORweeklyin order tocloselymonitor the progressof workand resolveissuesandproblemsconcerningdelays.

9.3 Negative Slippageof J5%("MalIc91Break"Stage):The CONTRACTORshallbe issuedafinalwarning and required to comeup with a moredetailedprogramofactivities Oil adailybasis,togetherwithrequired additional input resources. On-sitesupervision shallbeintensified andevaluationof projectperformance will bedoneon a day-to-day basis.At the same time,FILINVESTshall prepare contingencyplansforpossibleterminationofAgreement andlortake-overofthe workundertheadministrationofFIIJNVEST.

9.4 Nellative Slippage bevond15% C'TerminaJ"Stage):FILINVEST bythis timeshall initiatetermination/rescission ofthe A greem ent and/ o r take-o ve r byadministration,orassign 10othercontractor, the remainingwork under th e A greem e nt . P roper transitory measuresshall b etakento minimi,.., workdisruptionse.g.,take-overby administration whilere-biddingis going on.

10.0 C ontract Time Extensionon the Basie Contract: Timeextensionmaybegrantedby FILINVESTin favorof the CONTRACTOR dueto any ofthefollowing conditionsonly:

10.I Substantial increasein the quantitiesofw ork w hich w o uld im pactatleast 1\\additionalincontractprice;

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10.2 Onspecific and written instruction fromFILINVEST orany other competent higher authority 10

suspendthe execution of theWorks;

10.3Force Majeure such as earthquake; disastrous fire; severe calamities; war or invasion orinsurrection;and majorflood tbat adversely affect theProject;

10.4 Occurrence oftyphoonsignal no.3 declared bythe PhilippineAtmospherical Geological andAstronomical Administration(1'AGASA);

10.5 Delayor obstruction to the executionof theWorks by theact, neglect, delay or default byFILINVESToranyof its authorizedrepresentative;

10.6 DuetoFILlNVEST'S failuretohand over tothe CONTRAC'TOR the possessionofthe site orsites.

No timeextensiononthemaincontract shallbegranted due to additionalworks done inparallel and

which is notwithinthe"criticalpath"scbeduleofmaincontract.

During theperiod ofworksuspension, the CONTRACTOR bearsther ight reduce anddemobilize hismanpower andequipment while awaitingofficial resumptionthereof.However, upon resumptionofwork, the CONTRACTOR,withinseven(1) days afterhis receipt ofanyofficialliftingof suspension

order,shall be obliged toreturn allsuch resourcesin thesamenumber,skillsand capabilitieswhentheworkwas suspended.

The CONTRACTOR sballnot be entitled to claimforany costwhatsoeveror anyextendedoverheadcostarisingfrom suspension ofwork.

11.0 LiquidatedDamages:It isagreed and understood that timeis oftheessenceoftheAgreement. Aftertheaward of the contract, the CONTRACTOR s h a lJ submit a PERT/CPM schedule for approval byFILlNVEST and onceapproved, shall becomethe official contractschedule andsball serveasthe basisofmonitoringthe progress of the Works.FILlNVEST shallhave theright toimposeliquidated damagepenaltyat theamount stated in theNoticeof Awardor Agreement for the CONTRACTOR'S failuretocomplete the Works, or portion thereof, in accordance with the agreed completion, or sectionalcompletion,or milestonecompletion.

TheCONTRAC'TOR hereby expressly recognizes .FlLlNVEST'S right toimposeand deductwhateverliquidated damages against any sumor sumsdue to the CONTRACTOR and the CONTRACTORherebyunconditionally authorizes .FlLlNVEST todeduct anyliquidateddamageswithoutincurringany

liability whatsoever for such deductions and the CONTRACTOR hereby releases or quitclaims

FILlNVEST forsuchliability,if any.

ARTICLE XI-CONSTRUCTIONMATERIALS

1. Contractor-Supplied Materials: The CONTRACTOR shall supply, transport and deliver all materialrequirement oftbeProject. FlLlNVEST reservesthe right to rejectanymaterial not in accordancewiththeplans and specifications. The CONTRACTOR may substitute similar materials instead of thoserequired but onlyuponpriorapprovalbyFilinvest.

In theevent thatthe CONTRACTOR fails to supplythe specified materialsand suchfailureor inabilityshould,inthejudgementofFILINVEST,result in Project delays, FlLINVEST shall havethe' option,butnot the obligation, to supply such materials for andin behalfofthe CONTRACTOR.Insuchcase, thefull valueofthematerials suppliedbyFlLJl-,"VEST,including hauling fees and intereststhereon at therate oftwo percent(2%) per month computed from the dateFlLINVEST procuredth ten. shallbereimbursed bythe CONTRAC'TORto FlLlNVESTwithinseven(7) daysfrom the te themat ia lsarc


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delivered totheProjectSite. Otherwise, the same shall be deducted infull from subsequentprogressbillings ofthe CONTRAG'TOR.

2. Owner-Supplied Materials (OSM): F1LINVEST, at its exclusive option, may supply and delivermaterialsto beused bytheCONTRACTORandincorporated intotheWorksbasedon thequantitiesagreedandstatedintheAgreement between flLJNVEST and theCONTRACTOR. SuchOSMshallbecomefixedand firmbased on the Contract plans,specifications andscopeofwork.It ispresumedthatthequantities ofOSMstated in theAgreement hasbeendiligently reviewed andaccounted bytheCONTRACTORand theCONTRACTORhasconsidered theexistingsiteconditionsaswelltoestablish

the agreedquantities.TheCONTRACTORshall,therefore,beaccountableandresponsible for any over-runorunder-run inthequantities versus actual consumption. F1LINVESTshall notsupply additionalquantities duetounder-runs.

Should therebeanyrevision in theplans orspecifications or scope ofwork resulting inupward ordownward adjustments inthescope ofwork,theagreedOSMquantities affectedbysuchadjustmentsshallcorrespondinglybeincreasedor decreased proportionatelyto the adjustedworkquantities.

TIle OSMshallbe accounted for atthe completion of theProject where a jointevaluation shallbeconductedbetweenFILINVESTand the CONTRACTOR.Anysavingsorexcess used materials shallbereturnedand turned-overto FILINVEST.

ARTICLE XII- CONTRACTOR'S OTHER OBLIGATIONS AND WARRANTIES

1.0 Independent Contractor: It is expressly understood and agreed upon that the employeesand/orsubcontractorsof theCONTRACrOR are not the employeesand/orsubcontractorsofFILINVEST. TheCONTRACTORshall,therefore,be responsiblefor all claimsfor death, injuryor damage,causedeithertosaidemployees and/or subcontractors orbysuch employees and/orsubcontractors to thirdpersons,and for claims of any nature by such employees and/or subcontractors arising out of theirrespectivedutiesasemployees and/or subcontractorsof the CONTRACTOR.The Agreementshall notbe deemedto constitute a contract ofemployment by andbetween F1LINVEST and anyofthepersonnelhiredbythe CONTRACI'OR, itbeingclearlyunderstood that thesame issolelybetweenFILfNVESTand theCONTRACTOR.

Shouldany suchemployeeorsubcontractoror other personorentitysue FILINVESTby reasonofsuch

employment and/or subcontractor,theCONTRACTORshalldutifullyassistFILINVESTin defendingthe Agreementand the CONTRACTOR shall holdFILINVESTfree and banuJessagainst anyjudgement or decision whichmay thereforbe rendered againstFILINVEST.

2.0 Trustand ConfidenceintheCONTRACTOR:The CONTRACTOR hereby acknowledgesthe trust andconfidence reposedonhimbyFILINVEST.TheCONTRACTORshall. therefore,use hisbest skiJland

judgement in theefficientadministration and faithfulperformance of his obligations under theAgreement.

3.0 CONTRACTOR'S Tenlporarv Facilities: Unless other statedinthe Agreements asexception to thescopeofwork,theCONTRACTOR shallprovide and maintain,for his own use,temporary facilitiesandequipment whichshallinclude,butnot limited to, the following:

3.1 Temporary offices, storagefacilities,motorpool/eqoipmentyard;3.2 Temporary water, sewer,anddrainage facilitieswithinthecampsite;3.3 Telephone and other communication facilitiesaccessibleto FILINVEST;3.4 Temporaryfencing;3.5 Temporarylivingquarters/barracks for the CONTRACTOR'S worker includingsufficient

latrines;

3.6 Garbage disposalfacilitiesincluding daily cleaning andmaintainingcampsite;


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3.7 Adequatefire extinguishersandother fire fighting facilities;

3.8 Safety and security facilities and personnel for the protection and safetyof its workmen;protectionagainst theft ordamage tomaterialsandequipment heo wn and/orendorse tohimbylIlLlNVEST forsafckccpicg;

3.9 Transportfacilitiesfor mobilization,demobilization,and movementof resources.

4.0 CQNTRACTOR'SEmplovees:

4 .I The CONTRACTOR shallemploy competent andskilledworkersto undertake the Worksand

supervision thereof.TheCONTRACTOR'S Supervising Engineers sball constantly be inthepremises oft h eProject Siteat all timesand anyorder givenin writingtothe CONTRACTOR'SSupervisor by ;FfLINVESTorto any of the CONTRACTOR'S authorized representativeshallbecons id ered ashaving the same effect as if given to theCONTRACTOR himself.

4.2 Tile CONTRACTOR shall agree, upon request by FlLINVEST after discussion with theCONTRACTOR, toterminate the employment of anyof his employees if theintention is toprotectthe interest ofFILINVEST and the Works. TheCONTRACTOR shall bear allexpensesnecessaryfor such terminationof employment and shall provide replacement alsoat his owncost.

4.3 FILlNVEST, through fair and reasonable judgement, may require the CONTRACTOR toemployadditional technical and skilled manpower to facilitate thecompletion of theProject in

accordancewiththe contract duration.

4.4 TheCONTRACTOR shall atall times take all reasonableprecautions and stepsto prevent anyunlawful, riotous or disorderly conduct by or among hisemployees andemployees of hissubcontractors for the preservation ofpeace and protection of persons and property in theneighborhoodofthe Works.The CONTRACTOR shallcomply with allgovernment laws,rulesandregulationson the use of drugs.The CONTRACTORshall not allowanyof his employeeswhoareunderthe influence ofliquor or drugs within thevicinity of thejobsite, Anyviolationthereof shall beon the firstinstancemay be a ground for terminationofservicesofoffenderfromthe CONTRACTOR andas mayberequiredbyFlLINVEST,

5.0 Care upon Properties of FILINVEST and other Third Parties: The CONTRACTOR shall, in theexecution of theWorks,exercisedue diligenceandcareinrespectofexisting properties, equipment,andmaterials of FII,INVEST and other Third Party within the vicinity of the Project Site. TheCONTRACTOR shall be required to indemnify owners of properties damaged due to the fault ornegligenceofthe CONTRACTORor anyoerus employees.

6.0 CONTRACTOR'S Equipment. Plant, lVIaterials& Related Facilities Brought to Site: All equipment,construction plant,materialsand other related facilities provided and brought bytheCONTRACTOR tothe Project Site shallbe deemed notintendedfor any other purpose but exclusivelyfortheconstructionandcompletionof theWorks, andtherefore,the CONTRACTOR shallnotremove fromthe Project Sitethe same or any part thereof without written consent from FlLINVEST or any of its authorizedrepresentative. FILINVESTshallnotberesponsible fortheloss or damageto such CONTRACTOR'Spropertiesandpresumesthatthe sameare covered byAll-Risk Insurance.

7.0 MaintenanceandRepair of CONTRACTOR'S Plant and Equipment:TheCONTRACTOR sballemploysufficientandqualifiedpersonnelandfacilities for the appropriaterepairand maintenanceof his plant

and equipment broughttotheProject Site.Incase of majorrepair whichwould require atleast one (1)weekservicing,FILINVESTsball requirethe CONTRACTORto replacethedefective writwith anotherplant or equipment havingthe equal or better capacity in order not to hamper the constructionoperations.

8.0 Compliance with Government Regulations: The CONTRi\CTOR shall hold FILharmlessfromany violation oflaw, ordinance and governmentregulationscansed by


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implicate anyoffILINVEST'S representative forhis violationofthe same arising fromthe executionofthe Works.

9.0 CONTRACTOR'S Workmanship: '111ll CONTRACTOR representsand warrantsthat theWorks shallbemadeof the bestqualityknownto the tradeand thatallmaterialsto heusedshallbe inaccordancewithspeci.fications.Whenever FIl...JNVEST deems it necessary, FILINVEST shall advise theCONTRACTOR in writingto have the materialstested byan independentand reliabletestinginstitution. Incasethe CONTRA(.."TORfails tocomplyto executesuchtesting,FILINVEST shallarrangetocarry Out the testor tests toits own satisfaction andchargethe CONTRACTOR thecorrespondingcost.

A R T I C L E X II l- T E R M l N A T I O N 0 1 < ras A G R E E M E N T /T A K E -O V E R O F T H E \V O R K S

1.0 Terminatio.!LQf:theAgreement bv.FILTNVEST:FllJNVEST may,uponservingwrittennoticeeffectivefor five(5) days,extra-judicially terminate theAgreementdueto anyof thefollowing reasonsandcircumstances:

1.1 The CONTRACT has declared bankruptcyor in the vergeor bankruptcy;

1.2 Without reasonable excuse theCONTRACTORhas failed to commence theWorks orhassuspendedtheprogressoftheWorksfor ten (10)working daysafter receiving from FILfNVESTawrittenNoticeto Proceed;

1.3 The CONTRACTOR failedto secure and submitto FILINVESTbonds,insurance andguarantees required in the Agreement;

1.4 TheCONTRACTORhas'wilIfuIly abandonedthe Worksunder theterms andconditions setforthinthe Agreement;

1.5 TIle CONTRACTORhas failed to provide pre-construction information required byFILINVESTasembodiedin the Conditionsof Contract;

1.6 The CONTRACTORrefuses orpersistently neglectsto comply v...ith a written notice fromFILINVEST requiringhimtoremovedefective workorimpropermaterialsorgoodswithinten(10)daysandby suchrefusal or neglectthe Worksatemateriallyaffected;

1 .7 The CONTRACTOR has incurreda negative slippage beyond 15%as specified in thisConditionsof Contract;

1.8 TheCONTRACTOR has incurred seriousworkrelated accidents andhasfailedto implementtherequired safety measureswhich consequentlyhas le dto suchaccidents;

2.0 Tennination oftheAgreement bv theCONTRACTOR:On the otherhand, theCONTRACTORshallhave the legalrightto terminateor suspendthe Agreementduetoany ofthe followingconditions:

2.1 O cc urrence of"special risks" suchasforcemajeure andotherdisastrous calamitiesthat mayren der th eProject Site unworkable;

2.2 Declaredor undeclaredwar, invasion, insurrection andother formed ofarmsrebellion;

2.3 Riot,commotionandother extremecivildisorder except whencaused bytheCONTRACTOR'Sownact,defaultornegligence; (strikeorlaborunrestamongtheCONTRACTOR'S employeesshallnot be consideredasavalid groundfor contracttermination);

2.4 Workon the Project Siteis terminatedor disrupted by orderofcompetentgove rity;


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2.5 FILfNVEST failed to comply with its commitments andobligations under the Agreementthroughnofa u lt ofthe CONTRACTOR;

3.0 TakC:Qverof the Works:

3.1 As aconsequenceofthe termination byFILINVESTofthe Agreem en t d uetoany ofthe abovecauses, Fl L lN V E S T , w ith o u t vio la tin g any of theprovisionsoftheAgreement,shallta ke overand/or employanothercontractorto complete the re rnamiog works taken-over from the

CONTRACTOR andcharge theCONTRA(''TOR, bydeducting from the Contracr Price, allcosts incurredbyFILlNVF.5Ti otaking-over theWorks.FILlNVESTshallalso reimbursefromtheCONTRACTORany lossordamage that FlLINVESTmay suffer as aresultof thetake-over.Moreover, thetake-over shall not relievetheCONTRACTOR from payingliquidateddamagesfor d ela ys incurr ed at the point o ftake-over.

FILlNVEST shall havethelegalright to takepossession of the CONTRACTOR'S plants,equipment and other assets present at the Project Siteshouldthe CONTRACTOR fall tocompensateany liability to FlLINVEST at the timeoftake-over.FILINVEST shal lnot beliableto payany sum duetotheCONTRACTORuntil thecost ofexecutingthe remaining works,liquidated damages (ifany)and allother expenses incurredbyFll..INVESTbyr easo n of take-over havebeen deductedfrom anysum due or shallbecomedue to theCONTRACTORundertheAgreement.BLlNVEST shalllikewisehavethe legal nghts torecoverlUIyliabilityof the

CONTR.AC"1ORafterthe take-over fromany othercontractsexecutedor beingexecutedby theCONTRACTORwithFlLINVIiSTorany of itssubsidiaries.Due to thetake-overand for theCONTRACTOR'S failuretocomplete the Works,th e C O N T R A C T O R 'S P er f ormance Bondshall au tomatically be for feited iofavorof FILINVEST.

3.2 On thecontrary, and as a consequence of the tennioation bythe CONTRACTOR of theAgreement due 10 anyofthe causesstated aboveat nofault 10 the CONTRACTOR, theCONTRACTORshall,withoutviolatiogany oftheprovisionsof theAgreement,formallyhandover th e W ork s and allth e elements therein,whetbe1' fullycompletedoriopan, toFlLINVESTand shall berelinquished,unless otherwiseacompromise agreement h a sbeen reached,of all itscontractual commitm ents, respo nsibilities andaccouatabilities tocompletetbebalanceof workat thedateof!be terminationagreement.

The CONTRACTOR maythereupon give formalnotice10

FILINVESTofhis intention toterminate the Agreement provided that such notice shall not bc given unreasonably orvexatiously. Suchnoticeshallbegiven atleast thirty (30) daysprior totheintendedeffectivitydateand sball specify the groundsfor such termination.

Uponsuch termination,thenwithoutprejudicetothe accruedrightsorremediesofeither partyor toany liability,therespectiverightsand liabilitiesoftheCONTRACTORand FILlNVESTshall beas follows:

3.2.1 The CONTRACTOR shall,withallreasonable dispatch andinsuch mannerand withsuch precautionsaswill prevent injury,deathor damage, re m ove from theProjectSiteall ofIrisor any ofhis Subcontractor's temporarybuildings,plants, tools, equipment,temporary materials andotherfacilitiesnot partofthe Works;

3.2.2 Bothpartiesshallconductajoint inventoryofWorks completed and uncompletedandmaterials andpermanent equipment broughtto the site, andmaterialsalreadyfabricatedat the COl'l'TRACTOR'S shoporyardand areiotendedfortheWorks.Aformalreportonthejointinventory shallbemadeand signedby bothparties;

3.2.3 Aftertaking into accountamount previouslypaid underCONTRACTORshallbe paid byrn~INVESTtbe following:

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a. The totalvalueofall works completedat th eeffecrivitydateof termination;b. TIle totalvalue of workstarted butnotcompletedat the date oftermination, the

value established fromafair nod reasonable assessment by bothparties;c. Thecost of materialsorgoodsproperly ordered nod delivered to the site,or

fabricatedat theCONTRACTOR'S shoporyard,forwhichtheCONTRACTORhas paid for, or is legally boundto pay for,shall become the propertyoffILINVEST;

d. Thecostofpreliminaryor generalitemsin the"BreakdownofLump SumPrice"for whichthe C O N T R A C T O R h a sconsum ed o r fu lfi lled il lwbole;

c. Costofpreliminary or general items thatthe CONTRACTORhas fulfilled inpart.

FILINVEST is notboundtopay theCONTRACTOR foranydirector indirect costoflossor damage arising from terminationofW orks 1. 0this case.

ARTICLE XIV- COMPLETION AND FINALACCEPTANCE

1.0 U po n c o mple tion of theProject, th e C O N T RA CT O R shall cleartheProjectSiteand thesurroundingareasof alldebris anddirt an d disposed ata designatedareaoutsideoftheFCCand theleavethe areaina clean and orderlycondition. The CONTRACTOR shall, furthermore, repa i r at his owncost :mydamage that mayhave been caused bythe CONTRACTOR orany ofhis employees within thesurroundingof the ProjectSite.

2.0 When theProject basbeen fully completed,the CONTRACTOR shallnotifyFILINVEST or itsauthorized representative in writingandrequestforfinal inspectio n. Afinal joint inspection, afterrectificationof"punch list"items, sballbeconducted withinseven (1) daysand thecompletedWorkssbaLIbe assessed byFILINVEST or its dulyauthorized reprcscntative(s). lfacceptable, F lLlNVF .lTshallissueaCERTlFlCATEOF COMPLETIONAND FINALACCEPTANCEwithin fifteen (15)daysafter thejointinspection.Worksthatare und er th e jurisdiction of acompetentgovernmentagency(localor national) shallalsobesubjecttoacceptanceby suchgovernmentbody.

ARTICLE XV-J\lIISCELLANEOUSPROVISIONS

1.0 Pr9leCtionandRestoration ofPcooertv: The C O N T R A C T O R shal lbe responsible forthepreservationoftrees, monuments, private and public properties within the ProjectSite insofar as theymay beendangered byhis construction operations. Heshall carefully protectandnot remove themunless

otherwise directedbyFILINVEST.The

CONTRACTORSshalllikewiseprotectall

existing trailsandroads adjacentto or intersectingthe Projec t fr omdamage.

2.0 Interference with Trafficand Adjoining Properties: Alloperations necessary forthe executionandcompletionofthe Works and theremedyingofanydefects thereinshall,sofarascomplianeewiththerequirements ofcontract permits, shallbe carriedon bytheCONTRACTOR so asnot tointerfereunnecessarilyor improperlywith:

2.1 The co nvenience of the public;2.2 Theaccessto,use andoccupation ofpublicorprivate roads andfootpathsto orof properties

whetherin the possessionofFILINVESToranyother third party ofperson.The COmRACTOR shall saveharmlessand i ndemni fy FILlNVEST in respect of all claims,proceedings,damages,costs, charges,andexpenses whatsoeverarisingoutof, or inrelationto, anysuch matters insofarasthe CONTRACTORisresponsibletherefore.

3.0 AvoidanceofDamagetoRoads:TheCONTRACTORsballuse ev ery reasonable means to preventanyoftberoadsorbridges communicatingwithor onthe routestotheProjectSitefrom beingdamagedorinjuredby anytraffic oftheCOl\'TRACTORor any ofhissubcontractorsand, in particular,shall selectroutes,chooseand usevehiclesandrestrictanddistribute loadsso that any such extraordinary trafficaswillinevitablyarise from themovingofmaterials, plant,CONTRACTOR'S equipm poraryworksfromand to theProjectSiteshallbe limited,asfuras reasonably possibl nounnecessarydamageorinjurymaybeoccasionedtosuch roadsandbridges.

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4.0 Accessfor FILINVEST: Without prejudice to the generality of the foregoing, it is a g r e e d a n dacknowledged that FILTNVESTmayreq uir e access totheProject Site for the purpose of promoting thesale or lease ofl iv ing units orlo ts the re in . TIIOCONTRACTOR shall doallthings necessary tof acilitatesuch access asFILINVEST may require from timeto time.Itis sp ecifically acknowledged and agr e edthat th e exercise byFILlNVE$T of its r ights pursua nt to thisclause sballn ot con s t itu te takingpossession of thewhole or any part of theWo rks .

5.0 CleaningofChannels andDrains: The CONTRACTOR shall keepexisting surface chan ne lsa nddrainsreceiving the discha rge from th eP rojectSite clea r of site, cem en t, mud ,etc.a ta ll tim es by the useo fasilt trap or tr aps which shall be cle ar ed out at theapp rop riate frequency to ensure complian ce with th oorderof FILINVEST. Anydr ains blocked by cont amina ted wate r fro m the Site, or causeb y constructio nact ivities executed by the CONTRAC""fOR,shall be c leared ou t by the CONTRACTOR a t his 0"11exp ense .

a . u Dumpin g ofWastes: The COil'RAC'1'OR shall not dump unwan ted waste s,de br is,harmful chem icals,an d any othe r noxious o r po llutin g matter on any va cant lot, road side, or drains th ereby causin gclogs le a ding to de ve lo p m e nt o f foul wa ter , causing water contamination, and causing mosquitob reed ing .

7.0 No n -Waive r:TIle failure ofI-1LlNVESTat an y time to require performance by theCONTRACTORo fany provision hereof shall in no way affectFILINVE$T'S righ t thereafter to impose the same; no rshall

th e waiver byFILINVEST ofany breach ofany provision he reo fbe co ns trued as a waiver ofanysucceedingbreach of any such pr ovision, ora sa waive r ofth eprovision itself.

8.0 Sep arability :All rights ofthe parties are separate and cumulativ e and no rights, whethe r exerc ised o rnot, shall exclude any oth err ight ,a ndsha ll not limit orp rejudi ce any legal OTe q u itabler ight which th epartiesm ay have.

9.0 Ass igrunent: TheCONfRACI'OR sha ll h ave no right whatsoevertoas sign, transfero r pledgehis rightsand in teres ts un derthe Agreement witho utthewritten consentofFILINVEST.

10.0 Judicia lAct ion : In th e e v e n t th a tFILINVEST sball institute judic ial proceedingsto enforce any of theterm s of the Agreement, th e CONTRACTOR,s h o u l d h e be a d j u d g ed liable, shall pa y th e am oun teq uivalent ton otle ss than tw enty percent(20% ) oftbc cora lamount dueasattorney's fee s in addition to

theexpensesof liti gation and cos tso fsuit. The ve nueo f any judicial actions ha llbe th e p rope r co u r t s o fM etroManila.

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Project: FESTIVA L SUPERMALL EXPANSIONSANITARY/PLUMBING WORKS

Subject: SCOPE OFWORKS

The Contractor shall furnish all materials, tools, equipments, apparatus, appliances.accessories, transportation, labor and supervision required forthe complete installation

and testing of the Sanitary/Plumbing &

Fire Protection System ready for use inaccordance with the best practice of the Plumbing & Fire Protection Trade as listedhereinbut not l imited tothe following:

PLUMBINGWORKS

SEWER,WASTE AND VENT

1. Supply andinstall of PVC pipes Series 1000 for Soil and Wastestacks and pipesincluding fittings, accessories, sleeves, block-outs, hanger/supports and otherincidentalworks to complete.

2. Supply and install ofPVC pipes S eries 1000 for Ventstacks and pipesincluding

fittings, accessories, sleeves. block-outs, hanger/supports and other incidentalworkstocomplete.

3. Construction of Grease Tank Interceptor, Sewer Manhole, junction boxescomplete with piping connections. fittings. accessories andotherincidentalworksto complete.

4. Installationof OWNER SUPPLIEDMATE RIAL(OSM)plumbingfixtures such aswaterclosets, lavatories, urinals including necessary fittings,valves/accessoriesand otherincidentalworks tocomplete.

5. Leak testing and commissioning. Water consumed shall be born by thecontractor.

COLD WATER SUPPLY ANDDISTRIBUTION

6. Installation ofOWNER SUPPLIEDMATERIALS (OSM)such astransferpumps,booster pumps, bladder tank, overhead tank including piping connections,valves, instrumentation, controller, hanger/supports, vibration isolators and allrequired accessories.

7. Supplyand install ofG.I. pipes forwaterlines including fittings, valves.sleeves,block-outs,hanger/supports, accessoriesandother incidental works to completethesystem.

8. Supplyand install of CisternTank accessories such asmanholes, ladder nung,equalizing line, air vent. float valve mechanism, level sensor, sight glass andotherincidental works to complete.

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9. Leak testing, flushing, disinfection of water supply distribution system. Waterconsumedshall beborn bythe contractor.

STORM DRAINAGEANDAIRCON DRAIN

10.Supplyand install of PVC pipes Series 1000 fordownspout andabovegroundparking drain includingfittings,accessories,hanger supports,sleeves,block-outsand other incidentalwork to complete.

11.Supply and install of PVC pipes Series 1000 for underground parking drainincluding fittings, accessories, hanger supports, sleeves, block-outs and otherincidentalworkto complete.

12.Supply andinstall of ReinforcedConcretepipes ofunderground includingtrenchexcavation andbackfill ing andotherincidentalworkstocomplete.

13.Supply andinstall ofcatch basin.areadrain.drainagejunction box andmanholeincluding interconnection of pipes from existing main drainage and otherincidentalworkto complete.

14.Leak testing of drainage system. Water consumed shall be born by thecontractor.

OTHER WORKS INCLUDED

1 S .All openingsthroughwhich fire mayspread fromonefloor tothe other,suchasholesthrough floors made forthe passage ofplumbingpipesand electricalcircuits shall be sealed with f ireresistant stopping materials.

16. Securing andpayment ofpermits, l icenses and bonds forthe constructionpurposes.

17. Contingencyto includethefurnishing ofwrittenone(1) year warranty uponcompletion works ofplumbingsystem againstdefect andworkmanship.

18.Preparation andsubmission of as-built drawingsinreproduci sCADfileand two (2) white prints copies atno costtothe own .

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