102919001

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CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

The CEBU CITY GOVERNMENT, a local govemment unit existing under the laws of the Republic of the
Philippines with postal address at Cebu City Hall, cor. Magallanes St., and M. C. Bnones St., Cebu City, represented
herein by HON. EDGARDO C. LABELLA, City Mayor of the City of Cebu, of legal age, Filipino, with office address at
Ground Floor, Cebu City Hall, as authorized under Sangguniang Panlungsod Resolution No. '15-1509-2019 dated
December4, 2019, hereinafter refened to as the'FTRST PARTY;

-and-

BUMI CONSTRUCTION DEVELOPMENT & SUPPLY, a single proprietorship duly organized and existing
under the laws of the Republic of the Philippines, with principal offce address at Unit 1 Block 1 Dreamhomes
Subdivision, Guadalajara St., Brgy. Guadalupe, Cebu City, represented herein by ib Proprietor, Ms. Marie Melanie
F. Bumanglag, of legal age, Filipino and with office address at Unit 1 Block 1 Dreamhomes Subdivision, Guadalajara
St., Brgy. Guadalupe, Cebu City, per DTI Certificate duly aftached in this Agreement, herein after called the
.SECOT'JD
PARTT.

The City of Cebu and BUMI CONSTRUCTION DEVELOPMENT & SUPPLY, shall hereafter be collectively
referred to as the 'PARTIES".

WITNESSETH:

WHEREAS, the FrRSI PIRTY has awarded to the SECOilD PIRfY the infrastructure project known as
'Prciact No 1", cdtsisting of Existing Road Rehebititation loceted at &W. Tisa, Cebu City (herein refened to
as the 'PROJECT"); at the above address in accordance with and as indicated in the Working Drawings, Plans and
Specifications prepared for the "FTRSI PARD/ by the City Engineer with the conformity of the SECOND PARTY:

WHEREAS, the SECOIVD PIRfl/ has represented and wananted itself as a competent, capable and duly
licensed Contractor and has offered to do Prolect works in accordance with the working drawings, plans and
specificalions as provided under the terms and conditions set forth hereunder;

WHEREAS, the F,RSI PARfy has accepted said ofier of the SECOND PARTY, to undertake the above-
stated infrastructurc pro.iect subject to the terms and mnditons provided herein;

WHEREAS, bidding has been conducted on October 29,2019 wherein all bids were evaluated and that
after a complete and final evaluation by the BAC-INFRA Technical Working Group, it was determined that the
SECOTVD PARfy has the Lowest Calculated Responsive Bid in the amount ol One Million Seven Hundrcd
Eighty-fur Thousand, EWt Pesos (Php 1,7U,008.00), Philippine Cunency;

WHEREAS, the Bids and Awards Committee -lnfrastructure (BAC-INFRA), through its Resolution No. 2019-
21 dated November'12,2019 has remmmended lo the City Mayorto award the PROJECT to the SECOND PARTY;

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WHEREAS, the BAC-INFRA had recommended to the Sangguniang Panlungsod to authorize the Honorable
City Mayor to enter into Contract with BUMI CONSTRUCTION DEVELOPMENT & SUPPLY for the infrastructure
pro.lect known "Prcject No 1", consisting of Existing Road Rehabilitation located at *gy. Tisa, Cebu Cig lor
the contract pnce of One Miltion Sevan Hundred Eighty-four Thousand, Eight Pesos (Php 1,784,008.00),
Philippine Cunency;

WHEREAS, the Sangguniang Panlungsod has authorized the Honorable City Mayor or his duly authorized
representative to enter into Contract with BUMI CONSTRUCTION DEVELOPMENT & SUPPLY per Sangguniang
Panlungsod Resolution No. 15-1509-2019 dated December4, 2019;

NOW THEREFORE, for and consideration of the foregoing premises and of the mutual covenants and
stipulation hereinafter contained and set forth, the parties hereto agreed as follows:

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 10291S001
ftoFct No 1. EXISTING RoAD
REHABILITATION. &!y Isi, C€ou
City

ARTICLE I
PROJECT NAi,lE

Section 1 . The project is known as"Ptojsct No 1", consisfing of Existing Road Rehabilitation locatd at
Brgy. Tisa, Cebu City;

ARTICLE II
LOCATION OF THE PROJECT

Section 1, The projects is located in Barangay Tisa, Cebu City

ARTICLE III
PROJECT COST

Section 1. The PARTIES hereby agree to the total consideration lor the PROJECT in the amount of One
Hiltion Seyen Hundred Eighty-four Thousand, Eilghl Pesos (Php 1,7U,N8.N), Philippine Cunency and to the
terms of payment embodied in this Agreement.

Section 2. The Contract Price shall include any and all cost and expenses for labor, materials, equipment,
tools, mark-ups and prolit, all forms of taxes and all other expenses required in the mnstruction, building and
mmpletion of the PROJECT.

Section 3. The approximately or estimated quantities listed in the Bill of Quantitjes of the Contract
documents do not govem final payments.

Section 4. Payment to the SECOTD PARIYwill be made only for the actual quantities of the pay item of the
Contract certified by the Engineer in accordance with the Plans and Specifcations.

ARTICLE IV
SCOPE OF WORK

Section '1. The work to be undertaken by the SECOND PARTY under this Agreement shall include

a. Rehabilitation of the Existing Road until completion hereof;

b. Fumishing and supplying of all the necessary personnel / labor, materials, equipment and
provision of temporary facilities such as field office, storage, banacks, bunk houses, temporary
fences / bamcades, sanitary facilities and temporary electrical facilities, equipment, tools,
plants and all other incidental facilities needed, as well as supervision and control of every
aspect of the poect to ensure timely completion of all works in accordance with the Approved
Program of Works and estimates, Conditions of the Contract, plans, Technical Specifications
and other Conhact documents including addenda, if any.
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B Section 2, The SECOIVD PARfy agrees to undertake the PR0JECf simultaneously lor NineAlM
Calendar Davs. This period remains fixed unless additional time is allowed by the HRSf PARfy to the SECOIT,D
PARTY in writing.

ARTICLE V
COMMENCEMENT OF WORK

Section 1. The SECOI\ID PARTY agrees to begin work within seven (7) calendar days following
the date of
receipt of the Notice to Proceed. Within the seven (7) day period, the SECOIT/D pARfy
shall advise the City
Engineer of the actual date of the commencement and the projected date of completion
of the pRoJECr.

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Section 2. The SECOIVD PARTy shall complete the mobilization of all necessary Euipment and personnel
prior to the Commencement Date in order to ensure completion of the PROJECI within the period for in Article lV,

ARTICLE VI
OBLIGATION OF THE FIRST PARTY

Section 1. The FIRST PARfy shall ensure that all necessary permits, authorities and / or licenses are
secured beforehand to avoid any delay in the commencement of the PROJECI.

Section 2. Forthe purpose and satisfaction and full completion of the PROJECI the FIRSf PARIY hereby
wanants that the City Budget Ofiicer and City Treasurer have certilied the sufficiency and availability of the Approved
Budget for the Contract.

Section 3. the FrRSf PARfy wanants that competitive procurement was conducted on october 29, 2019
and the BAC-INFRA Technical Working Group had evaluated the different bidders as well as their respective bids.

Section 4. The F/RSf PARfY shall pay the SECO TD PARfythe amount of One Jlfillion Seven Hundred
Eighty-four Thousand, Eight Pesos (Php 1,7U,00E.00), Philippine Currency;

ARTICLE VII
OBLIGATION OF THE SECOND PARTY

Section '1.
The SECOIIID PARfy hereby agrees to undertake the aforementioned PROJECT in accordance
with the Approved Program of Works and Estmates, Conditions of the Contract, Plans, Technical Spcifications and
other contract documents including addenda, if any.

Section 2. Prior to the execution of this Contract, the SECOTVD PARfyshall post a Performance Security in
the amount specified in the Bid Data Sheet of the Bidding Documents to guarantee the faithful performance of the
SEC0IVD PARfY of its obligations under the contract.

Section 3. The SECOI\ID PARfy agrees to begin work within seven (7) calendar days following the date of
receipt of the Notic€ to Proceed as mentioned in Section 'l of Article V of this Agreement.

Section 4. The SECOIIID PARfy shall continuously maintain adequate protection of all properties and
materials to be used or used in the PRO/ECI against theft, robbery, pilferage or lire or any cause of damage or loss,
and shall be responsible and fully accountable for such damage or loss.

Section 5. All machineries, tools, equipment necessary for the commencement, performance and
completion of the PROTECI shall be provided by the SEGOIVD PARTY al their own cost of expenses. Any other
expenses incuned shall be considered part of the Contract Price.

i Section 6. Any defect arising from or in connection with the development works shall be the sole
responsibility of the SECOTVD PIRfy. ln such event, the SECOTVD PARTY hereby undertakes to rectify such defect
(s) at ib own mst to the satisfaction of th e HRST PARrY .

Section 7. The SECOIVD PARry shall take all the necessary precautions to ensure the safety of its
employees. lt shall likewise comply with all applicable laws on safety of its workers including, but not limited to, the
Labor Code and the Building Code of the Philippines. ln the performance of its obligations under this Agreement, the
SECOIID PARIYshall take measures to prevent accidenb, death and / or injuries to all peBons.

Section L The SECOIVD PARIY shall ensure that all its personnel shall wear proper uniform and use
\ personnel protective gear at all times for safety purposes, Working hours shall be from 7:00 in the moming until 5:00
in the aftemoon. Noisy works shall only be performed from 10:00 in the morning until 6:00 in the evening.

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Section 9. Any injury to or death ol persons or damage to property arising from, in connection with, or as a
result in the construction works shall be for the sole account of the SECOIIID PIRIY.

Section 10. The SECOIiID PARTY shall perform everything necessary for the completion and successful
Conslruction of the aforesaid PROJECT. The principal works to be performed under the specifications shall include
works described in Annex 1: POWE.

Section 11. The SECOirD PARIY shall submit seven (7) copies of as built -plans with blueprints and
electronic file upon completion ol the PROJECf.

ARTICLE VIII
TIME COMPLETION / TERMINATION

Section 1. The SECOIiID PARfY shall complete the PROJECT within Ninetv (90) Calendar Davs.
Thereafter, the SECOI\ID PARfY shall immediately deliver the same to the peaceful and lawful possession of the
FIRSf PARfY and to the complete satisfaction of the latter. Any disruptron of work due to fortuitous events shall not
be taken against the SECOND PARTY.

Section 2, Time is of the essence rn the performance of this Contract. lf the SECOilD PARfy fails to
complete all the works to the F/RSf PARfY'S full satisfaction within the period specilled herein, the parties hereby
agree and acknowledge that any such delay would cause damage to the end user /s. ln such event, for each
calendar day of delay, the SECOtt D PARfy should be liable for liquidated damages in the amount equivalent to
1/10h of one (1) percent of the cost of the unperformed portion for that day. Any sum accruing in favor of the FIRSf
PARfY under this Agreement shall be deductible fom the Contract Price or any balance thereof.

Section 3. Notwithstanding the foregoing, the FIRSf PARfY may terminate this Agreement il the SECOIJD
PARfY incurs delay for more than seven (7) days in any phase of the PROJECf and based on the Work Schedule
annexed hereto, 0r in the event of any substantial deviation made by the SECOI,JD PARIYfrom the approved plans.
Should the FIRST PARTY elect to terminate this Agreement, it may engage the services of another qualified
contractor to complete and / or conect the works, the cost for which shall be for the account of the SECOND PARTY.

Section 4. The FIRSI PARfY at any time can terminate the Contract if the SECOI,JD PARry does not
show satisfactory progress in the Works, and has already incuned a negative slippage of fifteen (15%) percent or
more based on contract duration, regardless of whether or not previous waming and notices for it to improve ib
performance has been issued.

ARTICLE IX
COMPLIANCE WITH LAWS AND REGULATIONS

Section 1. The PARIIES herein shall comply with all laws, acts and regulations of the Philippine
Govemment, national or local, relating to the performance, completion and delivery of the PROJECf.

Section 2. ln case of any violation thereof, the SECOITD PARfy shall be fully responsible and accountable

l
to the FlRSfPARfYand agrees to remedy the violation at his own expenses.

Section 3. The SECOIi,D PARry agrees to answer for all penalties for violations commrtted by it or by its
employees, representatives and pemonnel, whether they are in the performance of their !,t ork or not.

ARTICLE X
WARRANTY AND ACCEPTANCE

Section 1. Upon Completion of the PROJECI, the SECOIVD PIRIY agrees that the HRSf PARTY can
\ immediately use or enjoy its use. However, the FrRSf PARfy reserves the right to inspect and determine for itself
whether the works done were all in accordance with the terms of this Agreement, as well as the approved plans and
specifications. Should there be any defect in the installation or non-mmpliance with the approved plans and
specification, the SECOND PARTY shall immediately conect the defect at its own expense.

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Section 2. The SECOIiID PARfY represents and wanants that the performance and construclion on the
PROJECf is in conformity with the approved Programs of Works, drawings, plans and specification prepared by the
FIRST PARTY.

Section 3. The SECOIiID PARfy wanants that all materials shall be properly used, installed and / or
incorporated and shall ensure the completeness, workmanship and quality of the work done. All waranties specified
herein shall be govemed by Section 62 of RA 9184, the Govemment Procurement Reform Act and its lmplementing
Rules and Regulations.

Section 4. Within the wananty period, the SECOTVD PARTY shall promptly respond to and send the
appropriate technical personnel to rectify or address defects or issues raised by he FIRSI PIRfY.

Section 5. Notwithstanding the foregoing, the standard responsibilities and wananties of a contractor
provided for under the Civil Code of the Philippines or other pertinent laws, rules and regulations shall be deemed as
part of this Agreement and binding upon the PARIIES.

Section 6. The SECOIiID PIRfY shall ensure the completeness, workmanship and quality of the work
done. Should any complaint or issue be brought to their attention by the FIRST PARTY al any time during
construction and before the expiration of the wananty period, the SECO TD PIRfY shall promptly respond to and
send the appropnate technical peconnel to rectrfy or address defects or issues raised by the FIRSf PARfY.

ARTICLE XI
DISCLOSURE OF RELATION

Section 1. The SECOIVo PARTY shall disclose and give complete list of owners, directors, stockholders,
officers, partneB as the case maybe, duly authonzed representative and their relatives within the 4th civil degree, who
have relation by blood or by affinity, or business relation / affiliation, with any director, officer and employee of the
FIRST PARTY and its affiliates subsidiaries, even if the same relation has been terminated within five (5) years from
the date of lhe execulion of this Agreement. Said list shall be updated periodically and whatever necessary.

ARTICLE XII
CONTRACT DOCUMENTS

Section '1. The Contract Documents are those specifically mentioned in Section 37.2.3 of lmplementing
Rules and Regulations of Republic Act No. 9'184, oheruise known as the Govemment Procurement Reform Act.

Section 2 ln addition to hose docurnents mentioned above, the other supporting documenb are as follows:
a. Duly Approved Program of Works and Cost Estimates;

b. Approved Budget for the Contract (ABC) / Certifcate of Availability of Funds

c. Abstract of Bids
d. Resolution of he BAC recommending Awad

-{\ e. Approval of the Award by the Head of the Procuring Entity

I ARTICLE XIII
INCORPORATION BY REFERENCE

Section 1. The General Conditions and Special Conditions of Contracts as outiined in the Standard Bidding
Documents prepared jointly by the Department of Budget and Management, the Govemment Procurement Policy
Board and the Philippine Govemment Electronic Procurement System are hereby deemed incorporated and made an
integral part of these Contract Agreemenl by the way of reference, where applicable.

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ARTICLE XIV
MISCELLANEOUS PROVISION

Section 1. The SECOI{D PARfy shall allow the presence at the Project Site of the representatives of the
F,RST PARTY in all occasions for the whole duration of the proiect or as the Engineer may deem poper and
appropriate.

Section 2. The SECOITID PARfYshall provide facilities for dis-abled persons (such as ramps) as means of
access to level of changes going to entry points, lobbies and entrances, influenced by condition of location or use.

Section 3. The apparent silence of the Specifications, Plans, Special Provisions and Supplementary
Specifications as to any detail or the apparent omission therein of a detailed description or delinition of the quality of
materials or workmanship, shall be regarded to mean that only matenals and workmanship of first class quality are to
be used or employed, and reference shall be made to the standards set forth by the Department of Public Works and
Highways (DPWH) or the Department of Transponation and Community (DOTC), as the case maybe.

Section 4. The Contract Documenb are complementary and what is called lor by one shall be as binding as
il called by all.

Section 5. ln case of discrepancy, defective description, enor, omission or ambiguity between or in any of the
Contract Documents, the following shall be the rule of interpretalion.

a. The Drawing shall govem over the General Conditions;

b. The Special Conditions shallgovem overthe General Conditions and the Drawings;

c. The Specifications shall govem over the Special Conditions, the General Conditions, and the Drawing;

d. The Detailed Drawings shall govem over the General Drawings;

e. Figures written on drawings shall govem over the scaled drawing themselves.

Section 6. lf the SECOI\ID PARry either before commencing the works or during the execution thereof,
discovers discrepancies, enors or omissions between or in any Contract Documents or in case of any queslion
conceming the meaning of the Contract, it shall prompuy notify the FIRSf PARfY thereof in writing and the FrRSf
PARfY shall investtgate the mafter within ten (10) days from receipt of such Notice and give appopriate orden or
instructions to the SECOND PARTY.

Section 7. The SECOTVD PIRfY shall not perform any affected portion of the works after the dismvery of
the discrepancy, enor or omission until receipt of the order or instruction from the FrRSf PARfY, othenrrrise the
SECOT'rD PARIy 'S Performance thereof shall be at his own risk and bear any additional cost resulting therefom.

ARTICLE XV
SETTLEMENT OF DISPUTES

I
Any and all disputes arising from the implementation of the aforementioned projecb covered by this
Contract shall be govemed in accordance with the laws on settlement of disputes provided under Section 59 and 60
of R.A. 9184, othenvise known as the Govemment Procurement Reform Act and its lmplementing Rules and
Regulations.

ARTICLE XVI
EFFECTIVITY AND TERM

The Contract shall take effect after the requisite approvals fiom the authorized persons shall have been
\
secured, lt shall be valid for a period of 60 days from the effectivity date specified in the Nottce to Proceed (NTP),
unless extended in writing.

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 102919{01
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,i, wIIMSS WHEREOF, the parties hereto affixed their signatures this day of
, 2019 at Cebu City, Philippines.

CEBU CITY GOVERNMENT BUUI CONSTRUCTION DEVELOPMET{T & SUPPLY

First party Second Party
Represented by:

EDGARDO C. LABELLA MARE;Etri16v BUMANGLAG

City Mayor Proprietor
by:

ATTY. FLORO JR.

City Admin
Per Office of the s 0rder No. 002-07-2019
& Per SP Resol No. 15-1509-2019

SIGNED IN THE PRESENCE OF:

lttDhn [Yru.,r"l J eon DU tlhr-

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

crTY oF CEBU )S.S

BEFoRE ME, a Notary Pubtic for and in the Cities .no prun..0 o9t JHl, fr!30- o* ,
, 2019, personally appeared the following persons wih their competent evidence
.f d"^ttyJo _it
Name Gov't. Issued l.D. No. / Expiry Date

ATW. FLORO Q. CASAS, JR. hn ID 16. .s/yss

MARIE MELANIE F. BUMANGLAG Clc llo. 0 0

Known to me and to me known to be the same p€rsons who have executed this instrument and
acknowledged to me that the same is theh free and voluntary act and deed and that of the institutions to whom the
PARITES represents.

This instrument refers to the Construction Agreement consisting of seven (7) pages, including this page
signed by the parties and their material witnesses.

l,yrIIrrESS ,lry HAirD AIVD SEAL, on the date and at the place first herein above written

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