31 July 2012

ALVEFAM TRADING & CONSTRUCTION, INC.

Block 9 Lot 3A Springville Central 2, Molino 3, Bacoor, Cavite
Attention :

ENGR. ASHLEY A. ALVERO

Proprietor/ Manager

Subject :

LETTER OF AWARD / NOTICE TO PROCEED

Project :

CONSTRUCTION OF HOA OFFICE & COOPERATIVE CAFETERIA

Pacific Grand Villas Phase 2

Gentlemen:
We would like to inform you that Philippine Estates Corporation (OWNER) awarded the Construction of
HOA OFFICE and Cooperative Cafeteria Building at Pacific Grand Villas Phase 2, located at Barangays
Basak and Marigondon, Lapu-Lapu City (herein referred to as the Project) to Alvefam Trading &
Construction, Inc. (CONTRACTOR). With this, you are hereby instructed to proceed and commence
with the work for the construction of the Project in accordance with paragraph 1.0 herein.
In accordance with the plans, scope of works, technical specifications, selected architectural finishes, and
other requirements specified in the construction agreement, the price for the Project has been accepted in
the amount of PESOS: FIVE HUNDRED SIXTY FIVE THOUSAND (PhP565,00.00) ONLY.
The foregoing is subject to the following terms and conditions:
1.0

Construction shall commence on/or before 01 August 2012. Construction duration for the
completion of all works is one hundred twenty working days (120 wds).

2.0

Work shall include engineering designs, permits applications including requirements, supply of
materials, labor, supervision, tools and equipment necessary for the completion of the Project.

3.0

The down payment shall be Twenty Percent (20%) of the total contract price in the amount of
PESOS: ONE HUNDRED THIRTEEN THOUSAND (PhP113,000.00) ONLY, which shall be paid to
the CONTRACTOR only after submission of the documents stated below:
a. Downpayment Sure ty Bond equivalent to Twenty Percent (20%) of the Contract Price;
b. Performance Bond equivalent to Twenty Percent (20%) of the Contract Price;
c.
Contractors All-Risk Insurance Policy equivalent to One Hundred Percent (100%) of the
Contract Price
d.Bar Chart and S-Curve for the project wherein the pay item is the same as the Contract
Breakdown and Contract duration
e.Copy of Business Registration DTI / SEC Registration
f. Certificate of Registration from the Bureau of Internal Revenue
g.VAT Registration
h.Building Permit Application Requirements

4.0

Balance shall be paid by Progress Billing, wherein payments shall be made by the OWNER to the
CONTRACTOR within thirty (30) working days after receipt of the approved Construction
Managers Certificate of Payment.

5.0

In case of failure to complete and finish the Project within the specified period, the Contractor
shall pay the OWNER liquidated damages equivalent to one-tenth of one percent (0.1%) of the
Total Contract Price per working day of delay, until the work is completed by the CONTRACTOR.
The CONTRACTOR hereby authorizes the OWNER to deduct the amount of liquidated damages
from any amount/s due to the former.

6.0

Once the Project is fully completed and in accordance with the construction agreement, the plans,
scope of work, technical specifications, selected architectural finishes, and other requirements of
the Project, the OWNER shall issue a written Certificate of Completion and Acceptance.

The balance of the contract price due to the CONTRACTOR shall become payable within thirty (30)
days from issuance of the Certificate of Completion and Acceptance subject to paragraph 7.0
hereof. Certificate of Completion and Acceptance shall be issued once the CONTRACTOR submit
a notarized undertaking satisfactory to the OWNER that all payrolls, materials, bills and other
indebtedness relating to the Project is fully settled. Any claim from a third party arising from this
agreement shall be sufficient reason for the OWNER to withhold any payment due to the
CONTRACTOR in the amount equivalent to such claim.
7.0

Ten percent (10%) of the payment shall be retained by the OWNER as Retention to cover for the
inherent defects of the Project. The Retention shall be released by the OWNER to the
CONTRACTOR, thirty (30) days after the issuance of the Certificate of Completion and Acceptance
of the Project and upon submission of the following:
a.Contractors Sworn Statement showing that all taxes due from the CONTRACTOR, and all
obligations on materials used and labor employed in connection with this contract have been
duly paid;
b.Guarantee Bond equivalent to Ten Percent (10%) of the Contract Price covering a period of one
year to cover for faulty and/or defective materials and workmanship;
c. Punchlist report showing completion of all required rectification works;
d.Three (3) sets of original, signed and sealed prints of As-Built drawings and e-files;
e.Plumbing & Sanitary permit to operate, CEI, Building and Occupancy permits

8.0

The CONTRACTOR do hereby warrants that all materials to be supplied by him under this the
agreement shall be free from any defects and shall fully comply in every respect with the
specifications and other requirements of the plans and other related documents. The
CONTRACTOR shall make no substitution for materials required unless written approval is
obtained from the OWNER.

9.0

The CONTRACTOR shall guarantee and maintain the stability of its works and materials
furnished, keep the same in good condition for a period of Twelve (12) months after issuance of
Certificate of Completion and Acceptance of the Project by the OWNER. Defects appearing during
this period including damages arising from such defects shall be rectified and corrected by the
CONTRACTOR at its own expense.

Very truly yours,

Conforme:

PHILIPPINE ESTATES CORPORATION

ALVEFAM TRADING & CONSTRUCTION, INC.

MS. ELVIRA A. TING

President & CEO

ENGR. ASHLEY A. ALVERO

Proprietor & Manager

NTP- ALVEFAM TRADING & CONSTRUCTION, INC.

NTP for HOA & COOPERATIVE BLDG.doc

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