June 6, 2011

SKALA ARCHITECTURAL AND INTERIOR DESIGN SERVICES

Blk. 28 Reina Elena St. cor Ascensin Ave.,
Lagro Novaliches, Quezon City
Attention:

ARCH. CHARINA B. JAVIER

Principal Architect

Subject:

LETTER OF AWARD

Project:

OFFICE RENOVATION AT UNIT 3503 AND 3504, 35TH FLR. ONE

CORPORATE CENTRE

Gentlemen:
We would like to inform you that your price quotation for the Office Construction/Renovation at Unit
3503 and 3504, 35th Flr. One Corporate Centre, has been accepted by the Owner in the amount of ONE
MILLION FIVE HUNDRED THOUSAND PESOS (Php 1,500,000.00). Consequently, you are
hereby instructed to immediately proceed and commence with the Work for the completion of the Project.
The foregoing is subject to the following terms and conditions:
1.0.

Construction shall commence on June 13, 2011. Construction duration for the
completion of all works is forty five (45) calendar days.

2.0.

Work shall include supply of materials, labor, supervision, tools and equipments
necessary for the completion of the scope of works,

3.0.

Work shall be in accordance with the plans, scope of work, technical specifications,
selected architectural finishes, and other requirements of the Work.

4.0.

The downpayment shall be Thirty Percent (30%) of the total cost or FOUR HUNDRED
FIFTY THOUSAND PESOS only (Php 450,000.00). Balance shall be paid upon
completion of the project exclusive of the ten percent (10%) retention.

5.0.

Ten percent (10%) of the payment shall be retained by the OWNER until the full turnover and acceptance of the Project. The full amount of retention shall be released by the
OWNER to CONTRACTOR, thirty (30) days after the completion of work and
submission by the contractor of the following:
a) Contractors Sworn Statement showing that all taxes due from the

CONTRACTOR, and all obligations on materials used and labor

employed in connection with this contract have been duly paid
b) Punchlist report showing completion of all rectification works

c) Certificate of Completion and Acceptance as comformed by both parties

6.0.

In case of failure to complete and finish the Project within the specified period, the
Contractor shall pay the OWNER liquidated damages equivalent to One-tenth of One
percent (0.1%) of the total contract amount per calendar day of delay (including Sundays
& Holidays), until the work is completed. The CONTRACTOR hereby authorizes the
OWNER to deduct the amount of liquidated damages from any amount/s due and owing
to the former.

7.0.

If the Project is fully completed and in accordance with this agreement and also with the
plans, scope of work, technical specifications, selected architectural finishes, and other
requirements of the Work, the OWNER shall, within thirty (30) days, issue a written
Certificate of Acceptance thereof and the balance of the contract price due to the
CONTRACTOR shall become payable. Before issuance of the Certificate of Acceptance,
the CONTRACTOR shall submit evidence satisfactory to the OWNER that all payrolls,
materials, bills and other indebtedness relating to the works have been paid. Any claim
from a third party arising from this agreement will be sufficient reason for the OWNER
to withhold any payment due to the CONTRACTOR in such amount equivalent to such
claim.

8.0.

The CONTRACTOR do hereby warrants that all materials to be supplied by him under
this Agreement shall be free from any defects and shall fully comply in every respect
with the specifications and other requirements of the contract plans and other related
documents. The CONTRACTOR shall make no substitution for materials required unless
written approval is obtained from the OWNER.

9.0.

The CONTRACTOR shall guarantee and maintain the stability of its works and materials
furnished, keep the same in good condition for a period of Twelve (12) months after
issuance of FINAL acceptance of the work by the OWNER. Defects appearing during
this period, or any damages arising from such defects shall be answered and corrected by
the CONTRACTOR at its own expense.

Very truly Yours,

PHILIPPINE ESTATES CORPORATION
KENNETH T. GATCHALIAN
President & C.E.O
Conforme:
Arch. Charina B. Javier
Principal Architect