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This Contract for Hauling Services (the “Contract”) is made and entered into this
___________________ at Mandaluyong City, by and between:
- and -
WITNESSETH: That---
WHEREAS, the COMPANY is in need of hauling and delivery services for the transport
of various cement products (“PRODUCTS”) from its plant in Barangay Akle, San Ildefonso,
Bulacan, to its warehouses, customers, and other designated loading/unloading points within
_______________________ and other nearby provinces/cities/municipalities/towns;
WHEREAS, on the basis of such representations, the COMPANY has agreed to engage
the services of the CONTRACTOR, subject to the terms and conditions as hereinafter set forth;
NOW, THEREFORE, for and in consideration of the foregoing premises, the Parties have
agreed and do hereby agree, as follows:
1. DESCRIPTION OF SERVICES
The scope of work required of the CONTRACTOR under this Contract shall include, but is not
limited to, the hauling, transport and delivery of the PRODUCTS, in such quantities and on such
date and time as specified by the COMPANY, from its plant, warehouses, or any other loading
points, to its designated customers or other delivery destinations within Metro Manila and other
provinces, cities, municipalities, and towns (the “SERVICES”).
2.1 The COMPANY shall notify the CONTRACTOR whenever the latter’s services are
required in any practicable form of notification.
2.2 The COMPANY shall ensure the availability of valid Sales Orders for immediate
PRODUCT loading and truck dispatch, and ensure immediate PRODUCT discharge at the
delivery destinations.
2.4 The COMPANY shall load PRODUCTS on the CONTRACTOR’s hauling units at
maximum net weight of 52 tons for trailer trucks and 24 tons for cargo trucks, unless otherwise
restricted by national or local rules and regulations.
2.5 The COMPANY reserves the right to renew or pre-terminate this Contract with or without
cause, after serving a fifteen (15)- day written notice to the CONTRACTOR prior to the intended
date of termination.
2.6 The COMPANY undertakes no responsibility in respect of any life, health, accident,
travel, and other insurance, which may be necessary or desirable for the drivers, helpers,
employees or personnel of the CONTRACTOR, nor for any member of the family of such persons.
2.7 Without prejudice to its other remedies under this Contract and the law, the COMPANY
shall have the right to terminate this Contract for any violation by the CONRACTOR of the
COMPANY’s policies, plant rules, regulations and guidelines, and the provisions of this Contract,
its Annexes and addenda.
3.1 The CONTRACTOR shall provide the agreed hauling truck units as listed in Annex “B”
hereof, and be responsible for the selection of licensed, qualified and disciplined truck drivers
and helpers.
3.1.1 The CONTRACTOR shall ensure that all hauling units and equipment supplement
are in good operating condition and comply with the provisions of the Clean Air Act.
3.1.2 The CONTRACTOR shall solicit and ensure the acknowledgment and acceptance
of the delivered PRODUCTS by the duly authorized representative/s of the receiving
customers/warehouses, with the signature and legibly written name of the said
representative/s or with the official received stamp of the receiving party on the Delivery
Receipts (“DR”).
3.1.3 The CONTRACTOR shall immediately submit to the COMPANY the copies of the
duly confirmed and signed/stamped DR, as proof of delivery completion.
3.1.4 The CONTRACTOR shall ensure that its employees will not work beyond the
mandated man-hours under labor laws and/or regulations.
3.1.5 The CONTRACTOR shall ensure that its truck drivers, helpers and representatives
shall comply with all instructions, requirements and guidelines issued by the COMPANY
or its representatives in connection with the implementation of this Contract. The
CONTRACTOR shall likewise be responsible for the conduct, behavior, omissions,
inaction or negligence of any of its employees or agents, especially while they are in the
COMPANY’s premises, warehouses and designated delivery sites.
3.1.6 The CONTRACTOR shall likewise ensure that all its truck drivers, helpers and
representatives assigned to the COMPANY in connection with this Contract shall be
thoroughly briefed on the provisions and requirements of this Contract.
3.2 In addition to the foregoing obligations and for the effective performance of the
SERVICES, the CONTRACTOR shall fully and faithfully comply or should have complied with
the following requirements and guidelines:
3.2.1 The COMPANY’s Hauling Vendor Accreditation Process as provided in Annex
“C” hereof, prior to the signing of this Contract.
3.2.2 The COMPANY’s Product Delivery Operational Guidelines attached as Annex
“D” hereof; and
3.2.3 The COMPANY’s policies and all relevant laws, regulations and orders.
4. SERVICE FEE
4.1 For and in consideration of the satisfactory and complete performance of the SERVICES
to be rendered by the CONTRACTOR under this Contract as determined by the COMPANY, the
COMPANY shall pay to the CONTRACTOR a service fee based on the applicable trucking rates
provided for in Annex “A” of this Contract.
4.2 Computation
4.2.1 The service fee shall be calculated as follows:
Service Fee = FEBU x Applicable Trucking Rate in P/Bag (VAT-Inclusive)
Where: FEBU is the number of Forty (40) Kg. Equivalent Bag Unit
4.3 The unloading of PRODUCTS at the delivery points, including the stockpiling of
PRODUCTS at customers’ storage bins/racks shall be the responsibility of the CONTRACTOR.
It is understood that the service fee abovementioned shall be inclusive of handling fee that the
CONTRACTOR may/will incur at the designated discharge/delivery points. The toll fees are
likewise included in the applicable hauling fee.
4.4 The Schedule of Hauling Rates as detailed in Annex “A” may be subject to adjustment by
mutual agreement of the Parties.
4.5 The COMPANY shall be authorized to deduct from the Service Fee any such amount that
may be due from the CONTRACTOR under the Lease-to-Own Agreement (“Lease Agreement”)
or under any contract between the same parties, if any, and apply said amount as deducted to the
payment of the unpaid rent under the lease agreement.
4.6 The COMPANY shall likewise be authorized to deduct and/or charge the
CONTRACTOR in full for any unauthorized diversion during the trip.
6.5 Despite anything to the contrary in this Contract and without affecting other limitation or
exclusion clauses, to the extent permissible by law, the total aggregate liability of the COMPANY,
its employees, agents and subcontractors, under or in connection with this Agreement howsoever
arising including, without limitation, a liability arising by breach of contract, at law or under an
indemnity, shall be limited to the fee payable under this Contract.
6.6 Notwithstanding anything contrary under this Contract, the COMPANY shall not be
liable to any party for any indirect, special or consequential loss or damage whatsoever (including
but not limited to lost profits or interruption of business) arising out of or in connection with this
Contract, whether or not the possibility of such loss or damage was known or foreseeable.
7. TAXES
7.1 The creditable withholding taxes due on the Contract Price shall be for the account of the
CONTRACTOR. The COMPANY shall withhold the appropriate amounts for the payment of
said taxes and remit the same directly to the Bureau of Internal Revenue in accordance with
pertinent revenue regulations. The principal shall issue the creditable withholding tax certificate
for the amount withheld.
7.2 The CONTRACTOR shall submit to the PRINCIPAL proof of prompt payment of the
value-added taxes on a quarterly basis or as may be required by the COMPANY.
8. OTHER CONDITIONS
8.1 Without prejudice to the other provisions of this Contract, the delay, failure or refusal of
the CONTRACTOR to perform the services and/or to comply with any of the terms and
conditions herein, and in the Annexes attached hereto, shall entitle the COMPANY to rescind,
cancel or suspend this Contract and/or avail of such other remedies as provided by this Contract
and/or the law.
8.2 The CONTRACTOR warrants that it has not given nor promised to give any sum of
money, gift or any material favor or consideration to any official or employee of the COMPANY
for the purpose of winning the award of this Contract. Violation of this warranty shall be a
sufficient ground for the COMPANY to revoke or terminate the Contract.
8.4 The headings of provisions, sections, and paragraphs in this Contract are to facilitate
reference only and shall not in any way affect the interpretation hereof.
8.5 This Contract, together with all Annexes attached hereto, contains the entire contract and
understanding between the COMPANY and the CONTRACTOR as to the subject matter of this
Contract, and merges and supersedes all prior agreements and representations with respect to
the subject matter of this Contract. From time to time the Parties hereto, by issuing memoranda
duly signed and acknowledged by both Parties, may agree to implement and integrate into this
Contract amendments supplementing or clarifying provisions of this Contract.
8.6 This Contract is non-exclusive and shall not, in any manner, preclude the COMPANY
from entering into similar agreements with other parties for the same purpose.
8.7 Neither this Contract nor any rights or obligations hereunder may be assigned, delegated
or subcontracted or otherwise transferred by the CONTRACTOR without the prior written
consent of the COMPANY.
8.8 All rights, powers, privileges and remedies of the COMPANY under this Contract shall
remain cumulative and may be exercised singly or concurrently and are not exclusive of any
rights or remedies permitted by law. No failure to exercise or delay in exercising on the part of
the COMPANY of any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power, privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. No modification or
waiver of any of the terms, conditions and provisions hereof shall be implied from any course of
dealing or subsequent act or conduct hereunder. No waiver of any provisions of this Contract
may be validly made except in writing.
8.9 This Contract is binding upon the respective permitted assigns and successors-in-interest
of the Parties hereto.
8.10 If any provision of this Contract or the application thereof to any situation or circumstance
shall be declared invalid or unenforceable by any competent government agency or court, the
remainder of this Contract shall not be affected, and each remaining provision shall be valid and
enforceable to the fullest extent. In the event of such partial invalidity, the Parties shall seek in
good faith to agree on replacing any such invalid or unenforceable provision with a valid or
enforceable provision as closely aligned with the original intent of the Parties as possible.
8.11 In the course of the performance of its obligations under this Contract, the
CONTRACTOR may be supplied by the COMPANY with confidential information regarding the
business of the COMPANY, its subsidiaries or affiliates. In such event, the CONTRACTOR shall
not disclose to anyone or use, except as expressly authorized by the COMPANY in writing, any
such confidential information supplied to the CONTRACTOR for the performance of its services
hereunder. The CONTRACTOR shall be bound by this obligation until such time as said
confidential information shall lawfully become part of the public domain. In addition,
information regarding any aspect of the COMPANY’s business, howsoever acquired by the
CONTRACTOR, its personnel, employees, agent or subcontractors in the performance of the
services specified in this Contract, shall be confidential except to the extent that the same has been
published or otherwise made freely available to the general public by the COMPANY without
any restriction.
8.12 This Contract shall be governed by, and construed in accordance with the laws of the
Republic of the Philippines.
8.14 This Contract shall become effective on 01 April 2018 and shall be in full force until 31
March 2019, and subject to renewal and/or termination as provided in Section 7.1 of this
Contract. This Contract shall be deemed renewed under the same terms if no new contract is
signed by the parties upon its expiry.
8.15.1 It is the policy of the COMPANY to secure the health and safety of all personnel
(its own and those of its Suppliers) as well as the integrity and reliability of all its property
and equipment. Hence, the CONTRACTOR also recognizes its responsibility and
accountability for the protection of all employees and preservation of the COMPANY’s
property and equipment.
8.15.2 To comply with this policy, the CONTRACTOR will employ qualified personnel
and incorporate safeguards, rules and procedures which will minimize the risk of any
personal injury to the COMPANY’s people and loss of or damage to the latter’s property
and equipment during the performance of the SERVICES.
8.15.3 The CONTRACTOR’s personnel must comply with the COMPANY’s established
OH & S rules, practices and procedures, use OH & S equipment, tools and devices that
are required/ provided, and conduct themselves in a way which ensures their health and
safety, their fellow employees and/or any other third party.
8.15.4 The CONTRACTOR’s personnel are responsible for providing and maintaining a
safe and healthy workplace where all hazards, unsafe acts and/or conditions are
identified and analyzed before being controlled or eliminated. The CONTRACTOR must
document this in a (mandatory) health and safety program.
8.15.6 The CONTRACTOR represents and warrants to the COMPANY that it has
accident/workers compensation insurance, as well as liability cover.
8.15.8 Non-compliance with the stipulations under Section 7 hereof is a serious breach of
this Contract and may result in the immediate termination of the Contract. Any direct or
consequential damage resulting out of non-compliance with Section 7 hereof shall be the
full liability of the CONTRACTOR.
8.15.9 In the event that the CONTRACTOR cannot comply with the agreed OH & S
stipulations, the COMPANY has the option to suspend for at least one (1) month the
services of the CONTRACTOR and to hire the services of other service providers, without
prejudice to its right to terminate the Contract. Non-compliance of the CONTRACTOR
with any of the provisions of this Contract resulting in accident, or injury to persons, or
IN WITNESS WHEREOF, the Parties hereto hereby affix their signatures on the date and
place first written above.
MANNY C. TENG
Chief Operating Officer and General Manager
_________________________ _________________________
BEFORE ME, a Notary Public for and in the City of ___________________ this ____ day of
_____________________ 2018, personally appeared the following:
known to me to be the same persons who executed the foregoing instrument and acknowledged
to me the same is their free and voluntary act and deed and those of the corporations they
represent.
This instrument refers to a Contract for Hauling Services consisting of nine (9) pages
including this page wherein this acknowledgment is written but excluding the annexes.
WITNESS MY HAND AND SEAL on the date and place mentioned above.
NOTARY PUBLIC
Prepared By:
(Owner / Hauler’s Representative)
1. Prospective CONTRACTOR submits a formal letter of intent signifying its interest to provide
the hauling services required by the COMPANY to the concerned Logistics Manager or
Logistics Officer.
1.1. OIC Logistics Manager - Mr. Edgardo O. Jaurigue
1.2. Logistics Officer - Mr. Javier Y. Tapang
2. Prospective CONTRACTOR submits list of trucks with the corresponding description such
as:
2.1. Make / Model
2.2. Motor Number
2.3. Serial and Chassis Number
2.4. Gross Weight
2.5. Plate Number/s (Tractors and Trailers)
3. The Logistics Manager shall subject the units covered by the aforementioned list to the JOINT
acceptance of the Parties after actual inspection and certification of the units as to their
condition by any of the following Logistics and Plant personnel:
3.1. Logistics Manager
3.2. Logistics Officer
3.3. Plant Safety Officer
6. CONTRACTOR shall submit copies of the latest LTO registration certificates and the
corresponding official receipts for each unit as proof of ownership and whenever renewal
thereafter is made. In the absence of such documents, a Deed of Sale will suffice.
7. CONTRACTOR’s assigned drivers, helpers or representatives must be in proper working
attire/uniform, provided by the CONTRACTOR, when rendering services for the
COMPANY. For easy identification, drivers/helpers must wear at all times their individual
company identification cards inside the COMPANY’s Plant premises. As a safety
requirement, each driver and helper must also wear adequate protective gear such as; hard-
hat, safety shoes, reflectorized safety vest, and hand gloves during loading/discharging of
PRODUCTS. A truck driver/helper in sando or sleeveless shirts, shorts and on slippers shall
not be allowed inside the Plant.
8. For the duration of the Contract, each unit assigned to the COMPANY shall be equipped
with the following:
8.1. One (1) type ABC fire extinguisher
8.2. First Aid kit
8.3. Tarpaulin of sufficient area to cover the whole PRODUCTS and truck bed and free
from tears/holes
8.4. Sufficient lashing material/equipment such as rope of adequate length and other
protective stowing equipment
8.5. Wooden skids/planks whenever necessary and rubber pads, etc.
8.6. Whistle for spotter or helper
8.7. Early warning device
8.8. The hauling truck units must be well maintained, tidy and clean at all times
8.9. Trailers are equipped/provided with operational rest stand or landing gear.
8.10. For the duration of the CONTRACT, CONTRACTOR shall submit the renewed
LTO licenses of its drivers and/or truck registration (Certificate of Registration
and Official Receipts) papers, which may have expired during the Contract
effectivity period.
9. In case the CONTRACTOR has to pull-out a number of its accredited units for repair or for
any reason whatsoever, a written notice shall be furnished to the COMPANY at least three
(3) days prior to the pull-out. In case such unit will be out of commission for more than
fifteen (15) days, the CONTRACTOR should provide an equal number of replacement units
to maintain the required minimum number of units.