SUB-CONTRACT AGREEMENT
(WITH DEED OF ASSIGNMENT)
KNOW ALL MEN BY THESE PRESENT:
This Subcontract with Deed of Assignment made and entered into by and between CADV
CONSTRUCTION, a corporation duly registered and organized in accordance with Philippine laws,
with business address at Blk. 18 Lot 6 Cecilia Village I, M.S. Garcia, Cabanatuan City, Nueva
Ecija, Philippines and represented by its Proprietor/AMO, Ruel P. Pacson, and herein referred to
as CADV CONSTRUCTION, duly authorized for this purpose hereinafter called the
CONTRACTOR/ASSIGNOR and FIRST PARTY.
-And-
JULIUS S. RAMIREZ, a sole proprietor duly registered and organized in accordance with
Philippine laws with business address at _____________________________________ , duly authorized for this
purpose hereinafter referred to as the SUBCONTRACTOR/ASSIGNEE and SECOND PARTY.
WITNESSETH:
WHEREAS, the GENERAL CONTRACTOR has entered into a Contract Agreement with the
CADV CONSTRUCTION to construct the Completion of the Hall of Justice in Tabuk, Kalinga ,
to as the PROJECT.
WHEREAS, the SUB CONTRACTOR, having been afforded the opportunity to read and study
the plans and provision of the contract has agreed to sub-contract Completion of the Hall of
Justice in Tabuk, Kalinga in accordance with the approved Plans and Specifications of the
PROJECT.
WHEREAS, the CONTRACTOR/ASSIGNOR is willing to subcontract his portion representing
50% of the Project Identified as Completion of the Hall of Justice in Tabuk, Kalinga the
SUBCONTRACTOR/ASSIGNEE to expedite its completion as prescribed by the Supreme Court of
the Philippines.
NOW THEREFORE, for and in consideration of the foregoing premises, the parties here to
agree and covenant with each other as follows.
ARTICLE 1
SCOPE OF WORK
1.1. The CONTRACTOR/ASSIGNOR hereby subcontracts unto the SUBCONTRACTOR/ASSIGNEE
100% of the following Pay Items as indicated in the Project Bill of Quantities, namely:
GENERAL REQUIREMENTS
1. Mobilization / Demobilization
2. Necessary Permits
3. Temporary Facilities
4. Health and Safety Requirements
B PRELIMINARY WORKS
1.0 DISMANTLING / DEMOLITION & HAULING OF DISMANTLED
MATERIALS WITHIN THE PROJECT SITE
2.0 DISPOSAL OF CONSTRUCTION DEBRIS TO THE NEAREST DUMPSITE
3.0 CEILING WORKS
4.0 DOORS AND WINDOWS
5.0 ROOFING SYSTEM WORKS
6.0 ELECTRICAL WORKS
7.0 PAINTING WORKS
8.0 WATER PROOFING WORKS
9.0 FLOOR FINISH
10.0 REHABILITATION OF COMFORT ROOMS
11.0 FIRE DETECTION AND ALARM SYSTEM
12.0 PLUMBING WORKS
13.0 TERMITE TREATMENT
14.0 INSTALLATION OF STAINLESS STEEL SIGNAGE
15.0 INSTALLATION OF WATER PUMP AND PRESSURE TANK
16.0 CONSTRUCTION OF PUMP HOUSE
17.0 INSTALLATION OF CALENDAR BOARD AND BULLETIN BOARD
C. FURNITURE, FIXTURE AND EQUIPMENT (fee) COST
1.0 SUPPLY AND INSTALLATION OF FURNITURE
2.0 SUPPLY AND INSTALLATION OF ACU AND ACU FRAME
3.0 SUPPLY AND INSTALLATION OF FIRE EXTINGUISHERS
At the CONTRACTOR’S/ASSIGNOR’S contract costs starting amounted to, Ten Million Seven
Hundred Four Thousand Ninety Three Pesos and 59/100 P10, 704,093.59 inclusive of Value Added
Tax (“VAT”), representing 100% of the original contract amount subject to adjustment, escalation
and charge orders as may approved by the Supreme Court of the Philippines.
1.2. The SUBCONTRACTOR/ASSIGNEE shall, using its own equipment, manpower,
construction materials and financial resources, fully and faithfully execute the subcontracted works in
strict conformity to the approved Supreme Court of the Philippines plans and specifications
and construction timetables or any revision or amendment thereof, including the preparation of as built
plans and post-construction submissions.
ARTICLE II
TAXES AND DUTIES
II.1. The SUBCONTRACTOR/ASSIGNEE hereby assumes the obligations of paying any and all
taxes, duties, fees, and charges due and owing to the subcontracted items of work including those
due to any equipment, plant or materials that are doomed to be used solely and exclusively for the
execution of the subcontracted items of work.
ARTICLE III
RESPONSIBILITY FOR DAMAGES
III.1. It is understood that the SUBCONTRACTOR/ASSIGNEE is not the employee, agent or
partner of the CONTRACTOR/ASSIGNOR. Hence, the SUBCONTRACTOR/ASSIGNEE shall be fully
and solely responsible for any and all defects, losses or damages that may be caused on the
subcontracted items of work due to faulty construction, use of defective materials, delays, failure to
comply with the approved Supreme Court of the Philippines plans and/or specifications
and/or non-compliance with lawful instruction/s of the Project Consultant.
III.2. As there is no employer-employee, agency or partnership relationship between the
CONTRACTOR/ASSIGNOR and the SUBCONTRACTOR/ASSIGNEE, the SUBCONTRACTOR/ASSIGNEE
shall be fully responsible for the conduct of its employees and agents engaged in the execution of
the subcontracted items of work. The SUBCONTRACTOR/ASSIGNEE shall also be solely and
exclusively responsible for the payment of the wages/salaries and other benefits of its employees
and agents engaged in the execution of the subcontracted items of work.
III.3. The SUBCONTRACTED/ASSIGNEE shall be also and exclusively responsible for any
death, injury or damage caused to or by the personnel or agents of the
SUBCONTRACTOR/ASSIGNEE to any third person should the cause of such death, damage or injury
be due to the fault or negligence of the SUBCONTRACTOR/ASSIGNEE’S personnel or agents.
III.4. The provisions of the “Conditions of Contract” in the contract of the
CONTRACTOR/ASSIGNOR with Local Government of Cavite City for the PROJECT on the effects of
fortuitous event or force majeure shall inure to the benefit and shall bind the
SUBCONTRACTOR/ASSIGNEE.
ARTICLE IV
MANNER OF PAYMENT
IV.1. Assignment of Payment for Subcontracted Works – to ensure direct payment for works
accomplished by the SUBCONTRACTOR/ASSIGNEE, the CONTRATOR/ASSIGNOR hereby authorizes
the Supreme Court of the Philippines to effect direct payment to the
SUBCONTRACTOR/ASSIGNEE. For this purpose, the CONTRACTOR/ASSIGNOR hereby authorizers
the SUBCONTRACTOR/ASSIGNEE to follow-up, demand and receive the payment for the
SUBCONTRACTOR/ASSIGNEE to follow-up, demand and receive the payment for the
SUBCONTRACTOR/ASSIGNEE’S progress billings, final payment and retention from the Supreme
Court of the Philippines as well as payments if there be any, for price adjustment/escalation
and other claims that may be allowed on the subcontracted items of work.
IV.2.The authority vested on the SUBCONTRACTOR/ASSIGNEE by the
CONTRACTOR/ASSIGNOR being coupled with interest, the same may not be revoked or cancelled
by the CONTRACTOR/ASSIGNOR except if the subcontract agreement itself is annulled or
terminated for cause.
IV.3. SUBCONTRACTOR/ASSIGNEE shall open an account with Land Bank of the Philippines
where all payments by the Supreme Court of the Philippines for the Completion of the
Hall of Justice in Tabuk, Kalinga shall be deposited and withdrawn by the
SUBCONTRACTOR/ASSIGNEE.
IV.4. The SUBCONTRACTOR/ASSIGNEE acknowledge that payment of its progress billings
and others claims under this Contract by the Supreme Court of the Philippines shall be
deemed full payment of all its said claims and the SUBCONTRACTOR/ASSIGNEE hereby waives any
and all against the CONTRACTOR/ASSIGNOR with respect to its unpaid claims.
ARTICLE V
EFFECT OF RESCISSION/TERMINATION OF
CONTRACTOR’S/ASSIGNOR’S CONTRACT BY THE SUPREME COURT OF THE PHILIPPINES
V.1. Without prejudice to the provisions of Article XIV thereof, in the event the
CONTRACTOR/ASSIGNOR’s contract annulled, rescinded or otherwise terminated by the Locale
Government of Cavite City for causes solely and exclusively attributable to the fault negligence or
breach of contract by the CONTRACTOR/ASSIGNOR, the said termination, annulment or rescission
shall apply only to the portion of the project being executed by the CONTRACTOR/ASSIGNOR and
shall not in any manner affect the rights and obligations of the SUBCONTRACTOR/ASSIGNEE in
relation to the subcontracted items of work. This provision shall not be construed as giving the
SUBCONTRACTOR/ASSIGNEE the right of recourse for damages as against the CONTRACTOR on
account of the annulment, rescission or termination of the said main contract.
ARTICLE VI
RETENTION MONEY
VI.1. In accordance with the terms and conditions of the main contract, the
SUBCONTRACTOR/ASSIGNEE’S progress billings shall be subject to deduction in the form of
retention. As the retention money shall be deducted from the payments due the
SUBCONTRACTOR/ASSIGNEE for works accomplished on the subcontracted items, the retention
money, upon its release, shall be due solely and exclusively to the SUBCONTRACTOR/ASSIGNEE.
ARTICLE VII
DOCUMENTS FORMING PART OF THE CONTRACT
VII.1. The following documents shall be deemed as forming part of this agreement.
(a) Plans and specifications for the Subcontracted Items of Work
Including any Revision or Amendment thereto:
(b) Approved PERT/CRM and Construction Schedule of the
CONTRACTOR/ASSIGNOR for the subcontracted items of work;
(c.) Bill of Quantities for the subcontracted items of works submitted by the
CONTRACTOR/ASSIGNEE during the bidding.
ARTICLE VIII
APPROVAL OF SUBCONTRACT
VIII.1. This subcontract agreement shall be subject to the approval of the Locale
Government of Cavite City. Prior to such approval and concurrence, the CONTRACTOR/ASSIGNOR
cannot compel the SUBCONTRACTOR/ASSIGNEE to start work on the subcontracted items of work.
VIII.2. Notwithstanding the provisions of Section
VIII.3. Above, the SUBCONTRACTOR/ASSIGNEE may, at its own risk, start work on the
subcontracted items of work upon prior notice to the CONTRACTOR/ASSIGNOR.
ARTICLE IX
ESCALATION AND CHANGE ORDER
IX.1. Changes and Modifications – The SUBCONTRACTOR/ASSIGNEE is charged with the
notice that at any time before or during the performance of the works herein, the Locale
Government of Cavite City may authorize as it may deem advantageous or necessary, additions,
deletions or changes or modifications within the intent of the plans and specifications which in
character and quantity may either increase or diminish the cost of works. The
SUBCONTRACTOR/ASSIGNEE agrees to promptly and faithfully proceed with the works required
by such changes and modifications. The SUBCONTRACTOR/ASSIGNEE hereby waives its right to file
any claim in case of diminution in the cost or quantity of the works and in case of increase in said
cost.
IX.2. Contract Price Escalation – the contract price herein stipulated is based on estimates
and prevailing prices as of the bid date, _______________________. Any price decrease or price increase
approved by the government in related unit cost with respect to the pay items herein subcontracted
may be added to the unit price of the SUBCONTRACTOR/ASSIGNEE, in case of price increase, or
deducted, in case of price decrease.
IX.3. Change Orders and Extra Work Orders – Any and all change order and extra works
orders which may be granted to the CONTRACTOR/ASSIGNOR with respect to the works therein
subcontracted shall secure to the benefit of the SUBCONTRACTOR/ASSIGNEE at 100% of the
approved amount or unit prices.
ARTICLE X
INSPECTIOON AND TESTING
X.1. The CONTRACTOR/ASSIGNOR and the Supreme Court of the Philippines or its
authorized representative/s shall, at all times, for purpose of inspection have access to the works
and the SUBCONTRACTOR/ASSIGNEE shall provide proper facilities for such access and inspection.
ARTICLE XI
EXTENSION OF TIME
XI.1. The SUBCONTRACTOR/ASSIGNEE shall be entitled to the extension of time for
completing the contracts as may be granted by the Supreme Court of the Philippines to the
CONTRACTOR/ASSIGNOR.
ARTICLE XII
SUBCONTRACTOR’S SUPERINTENDENCE
XII.1. Subcontractor’s Employees – All persons whose services are availed by the
SUBCONTRACTOR/ASSIGNEE in the subcontracted works are its exclusive employees and not the
employees of the CONTRACTOR/ASSIGNOR. The direction, supervision, hiring, dismissal and
control of such personnel shall be exclusive right and responsibility of the
SUBCONTRACTOR/ASSIGNEE, with the CONTRACTOR/ASSIGNOR reserving the right to ensure
compliance by the SUBCONTRACTOR/ASSIGNERE with the approved plans and specifications and
scheduled timetables.
XII.2. Subcontractor’s Superintendence – The SUBCONTRACTOR/ASSIGNEE shall, at all
times during the terms of this Contract, keep on the jobsite a competent superintendent to
prosecute the work in accordance with the drawings, specifications and other instructions. The
superintendent shall represent the SUBCONTRACTOR/ASSIGNEE in its absence and all formal
instructions given to him shall be binding as if given directly to the SUBCONTRACTOR/ASSIGNEE.
ARTICLE XIII
EXEMPTION FROM LIABILITIES
XIII.1. The SUBCONTRACTOR/ASSIGNEE shall be exclusively responsible for any and all
liabilities for injuries or loss of lives to persons or damage to property caused by its employees and
agents and the SUBCONTRACTOR/ASSIGNEE shall hold the CONTRACTOR/ASSIGNOR free, and
harmless for any or all claims of said employees or agents under the Labor Code and such other
related laws bearing on employer’s liability, separation pay, SSS Coverage, living allowance, income
tax payment and the like.
XIII.2. The CONTRACTOR/ASSIGNOR shall be solely and exclusively responsible for any
liabilities/obligations/damage/losses that may be caused to its employees, agents, supplies and/or
any third persons arising from its implementation of the portion of the project not in the
subcontract agreement and shall ho0ld the SUBCONTACTOT/ASSIGNEE free and harmless for any
or all claims and/or suit whether civil or criminal instituted by the said employees, agents, supplier
and/or any third persons against the CONTRACTOR/ASSIGNOR.
ARTICLE XIV
RESCISSION OF CONTRACT
XIV.1. Ground for Rescission – It is understood that, In case of failure on the part of the
SUBCONTRACTOR/ASSIGNEE to complete the contract herein specified, or if the work to be done
under the contract be abandoned by the SUBCONTRACTOR/ASSIGNEE, or if this contract be
assigned by the SUBCONTRACTOR/ASSIGNEE or if the work is unnecessarily or unreasonable
delayed; or if the SUBCONTRACTOR/ASSIGNEE has willfully violated any of the conditions,
covenants, and agreement of this Contract, or is not executing this Contract in good faith, or is 15%
behind the programmed schedule and not making such progress in the execution of the works as to
insure its completion within the time required, then, in any of these cases, the
CONTRACTOR/ASSIGNOR shall have the power to rescind this Contract after giving reasonable
notice of the intended rescission to the SUBCONTRACTOR/ASSIGNEE. In said notice, the
CONTRACTOR/ASSIGNOR shall specify the causes of the intended rescission and in every case give
the SUBCONTRACTOR/ASSIGNEE sufficient opportunity to remove, remedy or rectify, if possible,
said cause.
XIV.2. Take over by Administration – Should the SUBCONTRACTOR/ASSIGNEE still fail to
comply with its undertaking even after receipt of notice of the intended rescission, the
CONTRACTOR/ASSIGNOR may then take over the work and/or secure the services of another
subcontractor.
XIV.3. Any and all losses and damages accruing by reason of the
SUBCONTRACTOR/ASSIGNEE’S commission of the foregoing grounds for rescission shall be for the
sole and exclusive account of the SUBCONTRACTOR/ASSIGNEE. For this purpose, the (10%) of the
Total Estimated Subcontracted Amount.
ARTICLE XV
COMPLIANCE WITH LAWS
XV.1. Whenever applicable and/or binding upon the parties, the
SUBCONTRACTOR/ASSIGNEE, in the performance of its obligations, shall comply with all laws,
ordinance, rules and regulations of both the national and local governments.
ARTICLE XVI
SEPARABILITY CLAUSE AND ARBITRATION
XVI.1. In case any one or more of the provisions contained in this Agreement will be
declared invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining
provisions contained herein, insofar as still consistent with the declared purposes of the parties,
shall not in any way be affected or impaired thereby.
XVI.2. Any dispute or controversy of any kind whatsoever between the
CONTRACTOR/ASSIGNOR and the SUBCONTRACTOR/ASSIGNEE which may arise out of or in
connection with this Agreement shall be referred to voluntary arbitration by the Construction
Industry Arbitration Commission (“CIAC”) pursuant to the provisions of Executive Order No. 1008
(“Creating an Arbitration Machinery in the Construction Industry of the Philippines”)
ARTICLE XVII
NON-WAIVER
XVII.1. The inaction or silence by any of the parties herein with respect to non-compliance
by the other of its obligations hereunder shall not be construed or interpreted as a waiver or
consent by said party of such non-compliance.
The parties hereto further agree to execute and/or submit such other documents and
papers as may be deemed necessary to realize/accomplish the purposes of this Agreement or
necessary for its approval.
IN WITNESS WHEREOF, the parties have signed this Agreement at
_________________________________, Philippines, this __________ day of ___________________, 2020.
CADV CONSTRUCTION JULIUS S. RAMIREZ
CONTRACTOR/ASSIGNOR SUBCONTRACTOR/ASSIGNEE
By:
Ruel P. Pacson
Proprietor/AMO
Signed in the Presence of:
_______________________________ _______________________________
Republic of the Philippines )
City of ________________ ) S.S.
On the _______ day of ______________ at ______________________, personally appeared to me:
RUEL P. PACSON __________________ _________________________
JULIUS S. RAMIREZ _________________ _____________________
Known to me and to me known to be the same persons who executed the foregoing Contract
and acknowledged to me that the same is their own and voluntary act and dead so with the
corporation they represent.
This instrument consisting of six (6) pages, including the page in which this
acknowledgement is written, and duly signed by parties on each and every page thereof.
WITNESS MY HAND AND SEAL, on the date and at the place first above state.
NOTARY PUBLIC
Doc. No. ____
Page No.____
Book No.____
Series of 2020
