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SERVICE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Service Agreement (the Agreement) is entered into by and between:

Sps. Arch. Edgardo O. Cisneros and Mrs. Julieta S.


Cisneros, with residence address at Blk 30 lot 7 Parrot
St., Southcrest Village Brgy. San Agustin II, City of
Dasmarias, Cavite, hereinafter referred to as the
OWNER.

and

Shavara Steel & Aluminum Works, a company owned


by Sps. Mr. Vincent Pacpaco & Mrs. Shavara
Pacpaco, with office address at Blk 55 Lot 15 Golden
Mile, Brgy. Salawag, City of Dasmarias, Cavite,
hereinafter referred to as the CONTRACTOR.

RECITALS;

WHEREAS, the CONTRACTOR, is an independent service provider with


substantial capital, equipment, and expertise, primarily engaged in the business of
providing the service of _____________;

WHEREAS, the OWNER is in need of a service provider or contractor to


provide Supply of labor, tools, equipment and technical supervision for the
renovation of the OWNERS House (House 1) some modifications at OWNERs
adjacent House (House 2) (hereinafter referred to as the PROJECT);

WHEREAS, the CONTRACTOR has offered its services and expertise to


and for the OWNER and the OWNER has accepted the offer;

WHEREAS, the CONTRACTOR has officially started the PROJECT in


view of the precedent Sales Invoice No. 353 dated June 27, 2017 (ANNEX A)
given to the OWNER, which has been subsequently paid by the OWNER, and
shall continue the same until the date specified herein;

NOW, THEREFORE, for and in consideration of the foregoing premises, the


parties have agreed as follows:

A. SCOPE OF WORK

The CONTRACTOR has agreed to perform and continue the remaining services
for the OWNER:
Furnish all labor, equipment, tools and administrative supervision and all other
incidentals necessary to complete the works as follows:

a) Supply & installation of toilet fixtures and tiles for the 3 rd floor
comfort room of House 1.
b) Supply & installation of analouk sliding windows and window grills
for all window openings of House 1.
c) Installation of flush door for front room at 2nd floor of House 1.
d) Tiling works for floorings at the following area within House 1:
i. 3rd floor family room
ii. 2nd floor back extension room
iii. Laundry area
e) Supply & installation of 1pc. Steel French door going out to 3 rd floor
comfort room of House 1.
f) Supply & installation of waterproofing works for all exterior walls of
House 1.
g) Supply & installation of overall interior and exterior paint works of
House 1.
h) Supply of labor only for modification works such as tiling,
replacement of fixtures for 1st floor comfort room of House 1.
i) Supply & installation of ceiling works for 2nd floor of House 1.
j) Provision of plant box in front of entrance door of House 1
k) Provision of wooden steps for spiral stairs of House 1.
l) Dismantling of wall between the gate area of House 1 and House 2.
m) Dismantling of wall between the laundry area of House 1 and House
2.
n) Dismantling of wall between the 2nd floor back room of House 1 and
House 2.

B. PLACE OF WORK

The CONTRACTOR and the CONTRACTORs employees shall perform the


services at the place of the PROJECT located at Blk 30 Lot 5 Parrot St. Southcrest
Village Brgy. San Agustin II, City of Dasmarias, Cavite (House 1) and at the
adjacent hosue located at Blk 30 Lot 7 Parrot St. Southcrest Village Brgy. San
Agustin II, City of Dasmarias, Cavite (House 2).

C. PAYMENT

1. The Total Contract Cost of the PROJECT including the completed works not
specified in the Scope of Work of this Agreement amounts to THREE
HUNDRED THOUSAND PESOS only (PHP 300,000.00).

2. CONTRACTOR shall pay a penalty of 1% of the contract price for every


day of delay of turnover.

3. The OWNER agrees to pay the Contractor on a semi-monthly basis, billed


every 1st week and 3rd week of the month and payable within 15 days upon
receipt of billing. Adjustments and corrections shall be made on the billing
of the succeeding month. The billing shall be adjusted accordingly in the
event of any corresponding statutory-based adjustment in wages and/or
salaries pursuant to law. Additional cost, if any, shall be paid on an as-
required basis.

4. That 10% of payments to the CONTRACTOR shall be retained by the


OWNER as guarantee of completion of work.

5. All payments under this Agreement shall be subject to withholding tax and
other taxes and duties as may be provided for by law and to the usual and
regular government accounting and auditing rules and regulations.

D. RIGHTS AND OBLIGATIONS OF THE CONTRACTOR

1. The CONTRACTOR warrants that its Net Financial Contracting Capacity


during the term of this Agreement be not less than the total contract cost
under this Agreement.

2. CONTRACTOR shall furnish and provide for its account all the necessary
materials, labor, tools, supplies, equipment, plant and other facilities as
required for the satisfactory performance and accomplishment of the Project
according with and as directed by the OWNER and based on the Scope of
Work agreed upon.

3. CONTRACTOR shall employ sufficient number of men to carry out the


various phases of work diligently and efficiently to complete the Project;

4. It is mutually understood and agreed that the CONTRACTOR is an


independent contractor not an employee of the OWNER. Neither shall the
personnel, workmen or sub-Contractors of the CONTRACTOR be deemed
responsible for any personal injury or damages including death sustained or
cause by any employees of the CONTRACTOR and/or its sub-Contractors
during the lawful performance of their duties.

The CONTRACTOR shall at all times be directly responsible and liable for
the enforcement of and compliance with all existing laws, rules and
regulation particularly in respect of any and all claims brought by its
personnel for the enforcement of the provisions of the Labor Code of the
Philippines and other related laws. The CONTRACTOR holds the OWNER
free and harmless from all such claims and liabilities.

5. CONTRACTOR shall likewise comply with all laws, rules and regulation
promulgated by the government or any of its instrumentalities applicable to
the Project and shall be personally and solely responsible for any violation
of the same.

6. CONTRACTOR shall hold the OWNER, free and harmless against any
claim, losses, damages, or injuries of whatever kind or nature that may be
filed or claimed against the OWNER by any third person, firm, or entity
arising out of or in connection with the construction undertaken by the
CONTRACTOR under this Agreement, or by the negligence of the
CONTRACTOR, its agents, servants, employees, and/or subcontractors.

7. CONTRACTOR shall finish and turn over the said Project at the said
contract price and in accordance with the directions of the OWNER and with
the herein Scope of Work.

E. RIGHTS AND OBLIGATIONS OF THE OWNER

OWNER and/or its representatives may, without invalidating this Agreement, at


any time during the progress of the work by its written instruction to the
CONTRACTOR, cause alterations in the original plans and specifications by way
of addition, deletion or otherwise deviations therefrom, and the work shall be
executed by the CONTRACTOR as if such have been included in the original
plans and specifications. In which case, any additional costs/expenses that can be
incurred by reason of such alterations, over and above the original contract price,
shall be borne by the OWNER

F. DURATION OF THE PROJECT

1. This Agreement shall have a commencement date of October 2, 2017 and


shall be expected to be completed by October 25, 2017.

2. However, the OWNER shall have the right to terminate this Agreement for
any just cause; provided that it notifies the CONTRACTOR of its intention
to terminate the Agreement.
G. CONTRACTORS GUARANTEE

CONTRACTOR guarantees its work against qualitative defects, poor


workmanship and the like for a period of one (1) year after the completion of the
Project. During this time, in cases of defects, failure, and poor workmanship of any
parts of the Project has been observed due to normal use, the CONTRACTOR shall
repair such defects and/or failures with no expense to the OWNER.

H. MISCELLANEOUS

1. The failure of the OWNER to insist upon the strict performance of any of
the covenants, terms and conditions in this Agreement shall not be deemed
as relinquishment or waiver of any rights or remedies that the OWNER has.
Nor shall it be construed as a waiver for any subsequent breach or violation
of the covenants under this Agreement. No waiver by the OWNER of any
rights shall be deemed to have been made unless expressed in writing and
signed by the OWNER through its authorized representative.

2. Aside from the rights accorded to the OWNER in case of breach by the
CONTRACTOR, should the CONTRACTOR violate any of the terms and
conditions of this Agreement, the CONTRACTOR shall be liable to pay
liquidated damages in no less than the contract price.

3. In case a formal complaint has been lodged against the OWNER in


connection with this Agreement, the CONTRACTOR shall likewise pay the
OWNER attorneys fees equivalent to 25% of the amount claimed in the
complaint.

4. This Agreement may be executed in any number of counterparts, each of


which when so executed and delivered shall be deemed an original, and all
of which together shall constitute one and the same agreement. Execution of
a facsimile copy will have the same force and effect as execution of an
original, and a facsimile signature will be deemed an original and valid
signature.

5. No modification of or amendment to this Agreement, nor any waiver of any


rights under this Agreement, shall be effective unless in writing signed by
the parties to this Agreement. No delay or failure to require performance of
any provision of this Agreement shall constitute a waiver of that provision as
to that or any other instance.

6. If any term, clause, or provision hereof is held invalid or unenforceable in


any jurisdiction by a court of competent jurisdiction, such invalidity or
unenforceability will not affect the validity, enforceability, or operation of
any other term, clause, or provision of this Agreement (which shall remain in
full force and effect), and such invalid or unenforceable term, clause, or
provision will be deemed to be severed from this Agreement for purposes of
such jurisdiction.

7. Notwithstanding the place where this Agreement may be executed by either


Party, this Agreement and any claim, controversy, dispute or other matter
arising hereunder or related hereto (whether by contract, tort or otherwise)
shall be governed in accordance with the laws of the Philippines, without
regard to the conflict of law provisions thereof that would result in the
application of the laws of any other jurisdiction.

8. Any notice/s required to be given or delivered to each party under the terms
of this Agreement shall be in writing and addressed to its respective
indicated address herein.

IN WITNESS WHEREOF, the Parties, through their respective


representatives, have executed this Service Agreement on the date and at the place
first written above.
FOR: OWNER FOR: CONTRACTOR

SHAVARA STEEL & ALUMINUM


WORKS

_____________________ _____________________
Mrs. Julieta S. Cisneros Mr. Vincent Pacpaco
Owner Contractor

_____________________
Mrs. Shavarra Pacpaco
Contractor

ACKNOWLEDGMENT

BEFORE ME, a Notary Public, for and in ____________________, this


___ day of _________ 2017, personally appeared the following with proofs of
identity:

Name Competent Evidence of Indentity ID Number

known to me and to me known to be the same persons who executed the foregoing
Compromise Agreement, consisting of ____ pages, including this page in which
this Acknowledgment is written, signed by the Parties on each page, and who
acknowledged to me that the same is their free and voluntary act and deed, as well
as the free and voluntary act of the entity represented in this instance.

NOTARY PUBLIC

Doc. No. _______;


Page No. ______;
Book No. ______;
Series of 20__.