CONTRACT AND AGREEMENT
FOR THE
CONSTRUCTION OF THE FIVE STOREY SCHOOL BUILDING WITH BASEMENT
KNOW ALL BY THESE PRESENTS:
This contract, made and entered into this 28th day of December, 2021 at City of Davao,
Philippines, by and between:
THE EXECUTIVE PASTOR OF THE KINGDOM OF JESUS CHRIST, hereinafter
referred to as the Owner
-and-
KJC GROUP OF CONSTRUCTION CO. INC., with business address at Barangay
Buhangin, Davao City, Davao Del Sur, duly represented by its Proprietor, ENGR.
KELVENE SILVA, hereinafter referred to as the CONTRACTOR
WITNESSETH:
WHEREAS, a public bidding was conducted on December 4, 2021 at the main office of
the KJC GROUP OF CONSTRUCTION CO. INC. at the Buhangin, Davao City for the
Construction of the Five-Storey School Building with Basement;
WHEREAS, the Bids and Awards Committee recommended to The Executive Pastor of
the Kingdom of Jesus Christ that the project shall be awarded to KJC GROUP OF
CONSTRUCTION CO. INC., its offer being the most advantageous to the Philippine
Government;
WHEREAS, time is the essence of this contract;
NOW, THEREFORE, for and in consideration of the foregoing premises and other
covenants hereinafter named, the parties agree as follows:
ARTICLE I – CONTRACT DOCUMENTS
The following documents shall be deemed to form and be interpreted and construed as
part of this Agreement:
a) General and Special Conditions of Contract
b) Invitation to Bid
c) Bidding Documents
d) Bid Form including all the documents/statements contained in the winning
bidder’s two bidding envelopes
e) Eligibility requirements, documents and/or statements
f) Performance Security
g) Credit Line issued by licensed bank
h) Notice of Award of Contract and winning bidder’s “Conform” thereto;
i) Duly approved Program of Works or Delivery Schedule and Cost Estimates.
j) Certificate of Availability of Funds
k) Abstract of Bids
l) Approval of Award by Appropriate government approving authority
ARTICLE II – SCOPE OF WORK
THAT the CONTRACTOR shall in accordance with the provisions of and subject to the
conditions contained in the documents referred to in Article I hereof, with a provision that this
construction activity belongs to KJC GROUP OF CONSTRUCTION CO. INC., and in
consideration of the sum of money hereinafter stated shall fully and faithfully perform all labor,
furnish the needed materials and equipment and perform labor and services necessary to
complete the Construction of the Five-Storey School Building with Basement located at
Buhangin, Davao City as per plan and specifications of the OWNER. The work consists of the
following work items:
ITEM DESCRIPTION AMOUNT
I MOBILIZATION 50,000.00
II SAFETY 25,000.00
III EARTHWORKS 500,000.00
IV CIVIL/STRUCTURAL AND MASONRY WORKS 3,400,000.00
V ROOF FRAMING 1,200,000.00
VI ROOFING 400,000.00
VII CEILING FRAMES AND BOARDS SECOND 280,000.00
FLOOR INCLUDING CR GROUND FLOOR
VIII DOORS AND WINDOWS 220,000.00
IX CR TILES AND FIXTURES 250,000.00
X FORMWORKS 300,000.00
XI ELECTRICAL, WIRES AND FIXTURES 150,000.00
XII WATER AND SEWER LINES 55,000.00
XIII SEPTIC TANK 50,000.00
TOTAL 6,880,000.00
ARTICLE III – TIME OF COMPLETION
The work to be performed by the CONTRACTOR under this contract shall commence
after ten (10) calendar days upon receipt and acceptance of the Notice to Proceed from The
Executive Pastor of the Kingdom of Jesus Christ by the CONTRACTOR. The construction of
the Five-Storey School Building with Basement shall be completed within Two Hundred (200)
calendar working days. Should the CONTRACTOR agrees to pay the OWNER a liquidated
damages an amount equal to One-Tenth of One Percent (0.1%) of the total contract sum for each
calendar day of delay until the work is completed and accepted by the OWNER. Such amount
shall be deducted from any money due or which may become due the CONTRACTOR under the
contract and/or collect such liquidated damages from performance Bond of the contractor or
Contactor or Contractor’s Surety whichever is convenient to the OWNER.
ARTICLE IV – THE CONTRACT SUM
The OWNER for and in consideration of the faithful and satisfactory fulfillment of the
contract by the CONTRACTOR in accordance with the terms and conditions of all contract
documents and subject to the deduction herein provided, shall pay to the CONTRACTOR in
Philippine Currency the sum of SIX MILLION EIGHT HUNDRED EIGHTY THOUSAND
PESOS (6,880.00) ONLY
Payment shall be in accordance with the following conditions:
a) Monthly payment shall be based upon the work satisfactorily completed as certified
by the CONTRACTOR, concurred in by the Design Consultant and supported by a
certification of VSU Resident Construction Supervisor/Inspector. The application for
payments, certification of payments, etc. shall be in accordance with the terms and
conditions contained in the General Conditions appended thereto and made integral
part hereof Final payment shall be made upon completion of the work and upon
submission by the CONTRACTOR of his sworn statement that all taxes due him and
all obligations for materials used and labor employed in accordance with this contract
have been duly paid.
b) Progress payments are subject to retention of ten percent (10%) referred to as the
"retention money". Such retention shall be based on the total amount due to the
CONTRACTOR prior to any deduction and shall be retained from every progress
payment until fifty percent (50%) of the value of the work as determine by the
OWNER are completed. If after fifty percent (50%) completed of the work as
determined by the OWNER is satisfactorily done and on schedule no additional
retention shall be made on the succeeding progress payment, otherwise, the ten
percent (10%) retention shall be imposed. The total retention money shall be due for
release upon final acceptance of the works.
However, after cumulative progress payment to the Contractor amounting to at least
fifty percent (50%) of the total contract price, the OWNER may at the written request
of the CONTRACTOR release a portion of the retention money commensurate to the
percentage of the work completed as determined by the OWNER. Provided, that the
CONTRACTOR post an irrevocable standby letter of credit in favor of the OWNER
to answer and substitute for the purpose of which the ten percent (10%) retention is
intended. Any release of any amount of the retention money by the OWNER is not to
be construed as waiver of the OWNER'S right to be indemnified for damage caused
by the CONTRACTOR in accordance with the Provision of Article 20 of the New
Civil Code.
c) The CONTRACTOR shall, under his name and at his own expense, obtain and
maintain for the duration of this Contract, the following insurance coverage: (1)
CONTRACTOR’S All Risk Insurance; (2) Transportation to the project Site of
Equipment, Machinery, and Supplies owned by the CONTRACTOR (3) Personal
injury or death of CONTRACTOR’S employees; and (4) Comprehensive insurance
for third party liability to Contractor's direct or indirect act or omission causing
damage to third persons.
d) That the insurance premium shall be the account of the CONTRACTOR.
ARTICLE V – GUARANTEE
The CONTRACTOR hereby guarantee the works stipulated in this contract and all the
materials it will apply and use in the construction as well as workmanship of all its work under
this contract and shall make good of its own account and/or its own expenses.
After final acceptance of the project by the OWNER, the CONTRACTOR shall assume
full responsibility for any damage or destruction of the works except those occasioned by force
majeure. They shall be required to put up a warranty security denominated in Philippine Pesos
provided in Section 62.2.3.3 of IRRA of R.A. 9184 and shall remain effective for one (1) year
from date of issuance of the certificate of final acceptances and shall be resumed only after the
lapse of the said one (1) year period.
In addition, the Provisions of Article 1723 of the New Civil Code shall also apply to
guarantee the work performance of the CONTRACTOR.
ARTICLE VI – PERFORMANCE BOND
In accordance with the Instruction to Bidders and General Conditions of the contract, the
CONTRACTOR shall furnish and file per acceptance to the OWNER a Performance Bond in
accordance with Section 39 of the Revised Implementing Rules and Regulations of RA 9184 TO
guaranty the full and faithful performance of this Agreement to answer for any liability that
maybe suffered by the OWNER resulting from the violation of the CONTRACTOR of labor
laws and other laws PROVIDED, that in the event of the recession or termination of this contract
for breach thereof, the bond at the option of the OWNER shall be automatically forfeited in favor
of the OWNER and becomes immediately payable and collectible by the OWNER, otherwise,
the bond shall remain and continue in full force until the aforementioned obligations as to the
completion and faithful compliance of the contract, liquidated damages and cost of labor and
materials shall have been duly satisfied, discharged, settled and paid by the CONTRACTOR.
ARTICLE VII – SAFEGAURDS AND WARRANTS
The Contractor shall provide and do everything necessary to perform its obligations
under this contract according to the true intent and meaning of the other contract documents
taken together particularly the drawings, plans and specifications provided that the same shall be
inferred there from and should the CONTRACTOR find any discrepancy in the drawings, plans
and specifications , he shall immediately refer the same to the owner Resident
Supervisor/Inspector and/or the OWNER whose decisions shall be followed.
The OWNER reserves the right for an additional or increase in the number of laborers or
workers assigned to the construction site in the opinion of the OWNER the exigencies of the
same require.
The CONTRACTOR shall be considered as an independent CONTRACTOR and as
such, he assumes all obligations and liabilities arising out of the Employer’s Liability Act and
any other laws existing and those enacted thereafter that may affect the rights of the employees
or laborers employed in the performance of this contract. Should the OWNER be made liable for
any of the Contractor’s violation of any labor laws, the CONTRACTOR shall reimburse
OWNER for whatever amount the latter is required to pay to said laborers and the Performance
Bond is also answerable for this contingency.
The CONTRACTOR is likewise mandated to implement the construction safety and
health program as indicated in the technical proposal which includes, among others, requiring its
employees to have Identification Cards which should be available anytime when inspected by
security personnel of the university or any authorized representative of the OWNER.
ARTICLE VIII – VENUE OF COURT ACTION
Should any court action be instituted by the VSU or CONTRACTOR arising from this
contract, the parties hereby agree that the venue thereof shall be the proper court in the Province
of Leyte.
IN WITNESS WHEREOF, the parties have hereunto set their hands this 28th day of
December 2021 at Davao City, Davao Del Sur, Philippines.
By:
THE EXECUTIVE PASTOR OF THE ENGR. KELVENE SILVA
KINGDOM OF JESUS CHRIST (CONTRACTOR)
(OWNER) Proprietor
KJC GROUP OF CONSTRUCTION CO.
INC.
Signed in the presence of:
1. CRISCEL JANE F. 3. KELVENE SILVA
TAYANTANG
4. MARK VILLAR
2. JOMAR SOMBILON
