CONSTRUCTION AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT made and entered into this __ th day of

_________________2022 in Cagayan de Oro City, by and between:

ESSILOR PHILIPPINES OPTICAL DISTRIBUTION INC., a corporation

organized and operating under the laws of the Republic of the Philippines, with
principal office and address at 4F Emerald Circle-Avenida, 464 Rizal Ave., Quiapo,
Manila, Philippines, hereinafter referred to as the “OWNER”;

and

E AND P BUILDERS, a single proprietorship business duly organized and

existing under the laws of the Republic of the Philippines, with principal office and
address at Lot 1, Block 16, Morning Mist Village, Pueblo de Oro, Cagayan de Oro
City hereinafter referred to as the “CONTRACTOR”.

WITNESSETH that –

WHEREAS, the OWNER has awarded to the CONTRACTOR the project

known as Renovation Project of the Proposed New Office of ESSILOR PH
hereinafter referred to as the PROJECT, loceted at 8th Flr, Gateway Tower 1,
Limketkai Center, Cagayan de Oro City.

WHEREAS, the CONTRACTOR offered her quotation for the project after she
has examined the plans, and general conditions thereof;

WHEREAS, the OWNER has accepted the said offer of the CONTRACTOR, to
undertake the abovestated project subject to the terms and conditions provided herein;

NOW, THEREFORE, for an in consideration of the conditions, covenants,

specifications, and stipulations hereinafter set forth, the parties do hereby agree as
follows:

ARTICLE 1
SCOPE OF WORKS

Section 1. The work to be undertaken by the CONTRACTOR under this Agreement shall
include:
1.01 The CONTRACTOR shall faithfully and completely furnish to the satisfaction
of the OWNER all the necessary labor, supervision and management tools,
supplies, materials, equipment and perform all the work necessary to complete
the following works

A) EARTHWORKS (EXCAVATION, BACKFILL, COMPACTION)

B) CONCRETE WORKS (FOOTINGS, COLUMNS, BEAMS, SLABS, SEPTIC
TANK)

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 C) STEEL REINFORCEMENT (FOOTINGS, COLUMNS, BEAMS, SLABS,
SEPTIC TANK)
D) FORMWORKS AND SCAFFOLDS WORKS
E) MASONRY WORKS (CHB-LAYING, PLASTERING, SMOOTH FINISH)
F) ROOF FRAMING (TRUSSES AND PURLINS EXCLUDING ROOFING AND
OTHER TINSMITHRY ACCESSORIES SUCH AS, GUTTERS AND
FLASHINGS)
G) PLUMBING WORKS (ROUGH-IN TO INCLUDE DRAINAGE SYSTEM,
DOWNSPOUTS, PPR PIPES AND OTHER EMBEDDED ACCESSORIES,
EXCLUDING FIXTURES)
H) ELECTRICAL WORKS (ROUGH-IN TO INCLUDE EMBEDDED PIPES,
CABLES AND TUBES FOR LIGHTS, ACU, FDAS EXCLUDING PANEL
BOARDS, BREAKERS, SWITCHES, OUTLETS, LIGHTS)

Also EXCLUDED from this Contract are the following works:

A) CARPENTRY WORKS (DOOR AND WINDOW JAMBS, CEILING JOISTS
AND PANELS);
B) PAINTING WORKS;
C) SOIL POISONING AND PEST CONTROL TREATMENT;
D) AND SPRINKLER SYSTEM.

ARTICLE 2
TIME OF COMPLETION AND LIQUIDATED DAMAGES

2.01 The project stipulated under this Agreement shall be completed within a
period of TWO HUNDRED FORTY (240) calendar days, and work shall be
officially commenced upon signing of this contract by both parties.

2.02 Time is an essential element in this Agreement, the CONTRACTOR agrees to

pay the OWNER the amount of ONE TENTH OF ONE PERCENT of the
CONTRACTED AMOUNT, less the value of the completed portions of the
CONTRACT as certified by the ARCHITECT, for each calendar day of delay until
the project is completed and ready for use, the said payment to be considered as
Liquidated Damages.

2.03 The OWNER is authorized to deduct Liquidated Damages from the final
payment as stipulated.

2.04 When the CONTRACTOR fails to complete the work specified per schedule,
in any of the stages in the Project, the OWNER after due notice to the
CONTRACTOR shall have the right to engage another person or entity to finish
the Project. The CONTRACTOR shall be subject to liquidated damages for the
period beyond schedule as indicated in the PERT-CPM Network or Bar Chart.

ARTICLE 3
THE CONTRACT AMOUNT

3.01 The OWNER agrees that for and in consideration of the faithful performance
by the CONTRACTOR of this Agreement, the OWNER shall pay to the
CONTRACTOR the amount of FIVE MILLION TWO HUNDRED THOUSAND

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 PESOS (₱ 5,200,000.00) exclusive of taxes which shall be borne by the
OWNER.

ARTICLE 4
PAYMENTS AND RETENTION

4.01 The Manner of Payment shall be by PROGRESSIVE BILLINGS based

on the following schedule.

1. 20% of Contract Amount as down payment upon signing of this contract

and mobilization;
2. 20% of Contract Amount after 20% of the work has been completed.
3. 20% of Contract Amount after 40% of the work has been completed.
4. 20% of Contract Amount after 60% of the work has been completed.
5. 10% of Contract Amount after 80% of the work has been completed.
6. 10% of Contract Amount as retention when the project is finally accepted
by the OWNER.

4.02 Upon submission of the Billing, the OWNER shall release payment to the
CONTRACTOR within a period of five (5) days reckoned on the date the billing is
approved by the Owner.

ARTICLE 5
CONTRACT DOCUMENTS

5.01 The following documents prepared by the ARCHITECT shall constitute

an integral part of this Agreement as fully as if hereto attached or herein
stated except as otherwise modified by mutual agreement of the Parties in
writing:

a. Architectural Plans 7 sheets

b. Structural Plans 4 sheets
c. Plumbing 4 sheets
d. Electrical 7 sheets
e. Electronics 3 sheets
f. Mechanical 3 sheets
g. Technical Specifications __sheets

ARTICLE 6
PERFORMANCE BONDS

6.01. CONTRACTOR’S PERFORMANCE BONDS

Within one week after the signing of this Agreement, the CONTRACTOR shall
furnish a PERFORMANCE BOND equal to FIFTEEN PERCENT (15%) of the
Contract Amount for the faithful performance of his work. Such bond shall be
in the form of Surety which shall be approved by the OWNER. The same
bond shall remain in effect until replaced by the CONTRACTOR’S
GUARANTEE BOND.

6.02 CONTRACTOR’S GUARANTEE BOND

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The PERFORMANCE BONDS shall be released by the OWNER after the
expiration of two (2) months from the final acceptance of the Project and only
after the CONTRACTOR has furnished the OWNER a GUARANTEE BOND
equivalent to FIFTEEN PERCENT (15%) of the Total Contract Cost. The
GUARANTEE BOND shall be in effect for a period of one (1) year
commencing from the date of acceptance thereof, as a guarantee that all
materials installed and workmanship under this Agreement are of good
quality.

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ARTICLE 7
PERMITS AND TAXES

7.01 All construction permits and licenses necessary for the execution of the work
or of any temporary work and easements in relation thereto, shall be secured by
the Architect and all fees paid for by the OWNER.

ARTICLE 8
INSURANCE AND OTHER CONDITIONS

8.01 The CONTRACTOR shall take cognizance of the provisions of the other
contract documents especially the CONTRACTOR’S responsibilities and
liabilities on materials, workmanship, labor and property as stipulated in the
General Conditions. Within fifteen (15) days after the signing of this Agreement,
the CONTRACTOR shall submit ALL RISK INSURANCE to protect him against
claims for damages for personal injury including death and claims for damages
of OWNER’S property and adjoining properties, which may arise, from the
prosecution and completion of this Project, subject to the approval of the
OWNER as to reliability of the Insurance Company. The ALL RISK
INSURANCE shall cover an amount equivalent to TEN PERCENT (10%) of the
Contract Amount.

ARTICLE 9
CHANGES IN WORK

9.01 The OWNER, at any time, without invalidating this Agreement and without
notice to the Sureties, may order extra work or make changes by altering, adding
to or deducting from the work, as covered by the Drawings and specifications of
this Agreement and within the general scope thereof. Such changes shall be
ordered by the OWNER in writing, and no changes or omissions from the
Drawings and Specifications shall be considered to have been authorized
without written instructions signed by the Architect and approved by the
OWNER.

9.02 The additional cost for extra work shall be agreed upon by the Parties in
writing and shall be added to the Contract Amount.

9.03 The cost of work that shall be reduced shall likewise be agreed upon by both
Parties in writing and shall be deducted from the Contract Amount.

ARTICLE 10
TECHNICAL SPECIFICATIONS

See attached Technical Specifications.

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ARTICLE 11
CONTRACTOR’S LIABILITIES

11.01 It is hereby agreed and understood that no employer-employee relationship

shall exist between the OWNER and all the laborers, workers, employees and
staff that the CONTRACTOR may engage in this Project.

11.02 The CONTRACTOR binds itself to protect and render the OWNER immune
from any suit or liabilities resulting from the claims of any nature, whether for
death, injuries or damages that may be suffered by the CONTRACTOR’S
worker and third parties, arising from the execution, performance, and
completion of the project, and shall at all times stand wholly and exclusively
liable and or responsible for compliance with all existing relevant laws, rules
and regulations.

11.03 The CONTRACTOR guarantees the quality of both labor and materials to be
engaged in and applied to the Project in accordance with the approved Plans
and Specifications. The CONTRACTOR shall repair or cause to be repaired
immediately any defect therein upon written notice therefore by the OWNER
without any additional cost to the latter.

11.04 The CONTRACTOR shall remain responsible as such as provided for in the
New Civil code even after acceptance of the Project by the OWNER.

11.05 The CONTRACTOR shall see to it that workers shall observe all the rules set
by the Xavier Estate Homeowners Association.

ARTICLE 12
PROJECT ARCHITECT

12.01 The OWNER shall assign Archt Semaña as the Project Architect with the
following duties and responsibilities:
1. To monitor and report to the OWNER the progress of the works.
2. To check materials used and work done by the CONTRACTOR so
that these are done in accordance with plans and specifications.
3. To advise the OWNER on any change orders and/or omission or
elimination of any work or aspect of the work.
4. To act as liaison between the CONTRACTOR and the OWNER
5. To act and decide on behalf of the OWNER on technical matters
that the CONTRACTOR may wish to clarify.
12.02 The CONTRACTOR shall allow the Project Architect/ Engineer or his
authorized representative free access to all parts of the project at any time.

ARTICLE 13
TURNOVER

The CONTRACTOR shall submit the following documents for the Turnover of
the Project:

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 1. Affidavit stating among other things, that there is no pending
case/complaint against the CONTRACTOR with any court, tribunal, or
government entity of official relative to non-payment of wages differentials,
emoluments, and other benefits, and/or non-payment of materials, and
equipment used in the Project filed by the CONTRACTOR’S
laborer/employee or any third party.

2. The Turnover of the completed building by the CONTRACTOR to the

OWNER shall be effected in writing and acceptance thereof by the
OWNER shall likewise be written either on the same turnover document or
a separate document.

ARTICLE 14
VENUE OF ACTIONS

The venue of any action arising from the enforcement or implementation of

this Agreement, or by reason of any violation of any provision thereof, shall be the
proper court in Cagayan de Oro City to the exclusion of all other courts.

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 IN WITNESS WHEREOF, the Parties to this Agreement hereunto set
their hands this ____th day of ___________________ 2022, in the City of
Cagayan de Oro.

WINSTON BARNARD O. ABRENA E AND P BUILDERS

Owner ALMA P EUFINADO

General Manager

SIGNED IN THE PRESENCE OF:

________________________ ________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF CAGAYAN DE ORO ) S.S.

BEFORE ME this __th day of _______________ 2022 in the City of Cagayan de Oro,
personally appeared the following with their respective Residence Certificate
numbers:

Cert No. Date Issued Place Issued

Winston Barndard O. Abrena ___________

___________CDO City
Alma P Eufinado ___________ ___________ CDO
City

Known to me to be the same persons who executed the foregoing instrument in

representation of Winston Barndard O. Abrena and E and P Builders, respectively,
and acknowledged to me that the same is their free act and voluntary deed. This
instrument refers to a Construction Contract consisting of seven (7) pages including
this page on which the Acknowledgment is written, signed by the Parties and their
instrumental witnesses on each and every page hereof.

WITNESS MY HAND AND NOTARIAL SEAL the day, year and place above
written.

DOC NO. ________

PAGE NO. ________
BOOK NO.. ________
SERIES OF ________