CONTRACT AGREEMENT

OWNER : ECOSYSTEMS RESEARCH AND DEVELOPMENT

BUREAU

PROJECT : PREVENTIVE MAINTENANCE OF ERDB VEHICLES

(TOYOTA VEHICLES)

CONTRACTOR : TOYOTA CALAMBA

CONTRACT DURATION : ONE YEAR (2019)

CONTRACT SUM : THREE HUNDRED SIXTY NINE THOUSAND ONE

HUNDRED SIXTY EIGHT PESOS AND THIRTY
SIX CENTAVOS (Php 369, 168. 36)

KNOW ALL MEN BY THESE PRESENTS:

This Contract Agreement, made and entered into this _______ day of
___________ 2019 in ___________________________________ by and between:

The ECOSYSTEMS RESEARCH AND DEVELOPMENT BUREAU (ERDB),

the research and development (R&D) arm of the DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES created under Executive Order
No. 192, Series of 1987, with principal office at Forestry Campus, College,
Laguna, represented herein by its Director, SOFIO B. QUINTANA, Ph. D.,
CESO IV, hereinafter referred to as “ERDB”;

-and-

TOYOTA CALAMBA, a business entity in the Philippines with postal address at

Calamba, Laguna, represented herein by its____________________________,
hereinafter referred to as “CONTRACTOR.”

WITNESSETH THAT:

WHEREAS, the ERDB is a government agency engaged in research and

development work which necessitates travel of its personnel using official
vehicles for its usual operations;

WHEREAS, the ERDB has twelve (12) official vehicles, which requires
maintenance and services, to wit:

9 Units of Toyota Pick-up;

 3 Units of Grandia Van;

WHEREAS, the ERDB has decided to undertake the project mentioned

above;

WHEREAS, a Small Value Procurement under Section 53.9 of RA 9184 and

its Implementing Rules and Regulations was conducted and the therein
CONTRACTOR had submitted the lowest complying bid;

WHEREAS, the CONTRACTOR owns and operates a maintenance service

station willing and able to supply and provide necessary maintenance for the
abovementioned vehicles of the ERDB;

WHEREAS, the CONTRACTOR accepted the Project under set of terms and
conditions, representing itself to be especially competent, skilled and fully
equipped with necessary materials, manpower and equipment for the
undertaking of the Project;

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

the conditions herein below stipulated, the PARTIES agreed as follows:

1. That the ERDB certifies that they have the legal right to
authorize repairs for the above listed vehicle, either through
legal ownership, lease rights, or written authorization from the
vehicle’s owner. Hence, authorizes the CONTRACTOR to take
the steps necessary to perform the repairs listed in this
contract, including any necessary on-road vehicle testing;

2. That the ERDB acknowledges that the CONTRACTOR has no

formal relationship or obligation to any insurer. The
CONTRACTOR’s sole obligation is to ERDB, and performing
safe, timely, and complete repairs is the first priority. ERDB
acknowledges that the CONTRACTOR is not obligated to
communicate with or assist insurers or their agents, including
accepting cost estimates from insurers or allowing their agents
into shop facilities for any reason;

3. That the CONTRACTOR shall perform regular preventive

maintenance (PM) as specified by ERDB. The service shall be in
accordance with manufacturer’s service recommendations for
the mileage interval of the vehicle, including lube, oil and filter
change, with safety inspection at each service;
 4. That in case of repair or replacement of parts due to wear and
tear, services shall be done upon approval of the ERDB and
same will be treated as additional cost to be reflected in a
separate service report of the CONTRACTOR. A separate
contract shall be provided for this purpose;

5. That only original/genuine parts shall be installed. Supplies

and materials such as lubricants/fluids, motor oil, etc. shall be
the type and quality that conform to maker’s specifications and
standards;

6. That the CONTRACTOR shall provide a limited warranty

covering the work performed under the terms of this auto repair
contract. This warranty shall last for a period of one (1)
calendar year from the completion of authorized repairs. During
the warranty period, the CONTRACTOR will, at its sole cost
and expense, correct any defects in workmanship related to the
repairs performed in relation to this contract;

7. That the CONTRACTOR shall not use any parts for repairs
unless those parts are approved for use by ERDB;

8. That the CONTRACTOR shall provide the following:

a.) Conduct overall check-up labor and materials (frequency of
servicing, every 3 months or 5000 km whichever comes first);
b.) Provide inspection of drive belts;
c.) Ensure that the engine oil to be drained and replaced with engine
oil designed for diesel engines;
d.) Replace oil filter/air filter/fuel filter that meets the manufacturers
recommendations;
e.) Provide wheel off inspection/ cleaning/adjustment of all four
brakes and components (fluids, brake lines, drums, hoses etc.)
including brake pedal and parking brake;
f.) Inspect clutch system and power steering fluids;
g.) Check-up of transmission and differential oil;
h.) Inspection of cooling system, steering wheel and linkages, front
and rear suspension, ball joints and dust covers, shock absorbers,
stabilizers, axles shaft, engine mountings, wheel bearing is to be
cleaned and repacked with grease if necessary (every 10,000 km)
etc.
9. That the ERDB agrees to pay in full for the services described
above upon successful completion of all listed auto repairs AND
shall be payable within (30) days after the billing date. ERDB
agrees to pay for all parts, labor, fees, taxes, and other charges
incurred during the performance of any repairs authorized by
ERDB in writing. CONTRACTOR will provide an invoice upon
completion of repairs detailing all fees, and listing a final
outstanding balance for payment;

10. That no services outside of those described in this auto repair

contract will be performed by the CONTRACTOR without prior
written approval from ERDB;

11. That this Agreement may be suspended upon consumption of

an equivalent amount THREE HUNDRED SIXTY NINE
THOUSAND ONE HUNDRED SIXTY EIGHT PESOS AND
THIRTY SIX CENTAVOS ( Php 369,168.36) worth of
maintenance by the ERDB, provided a written notice by the
CONTRACTOR in the balance is made to ERDB after its billing;

12. That no amendment or modification of this Agreement shall be

made except after execution of a written agreement duly signed
by the Parties.

13. This Agreement shall take effect upon signing of the Parties
unless otherwise terminated earlier by either party terminates
upon written notice to the other at least fifteen (15) days prior to
the date of effectivity of such termination, without prejudice to
the rights and obligations of the Parties that have accrued prior
to such termination.
IN WITNESS WHEREOF, the Parties, through their authorized representatives,
hereto have affixed their signatures on the day and year first above-written.

For and behalf of the For and behalf of the

ECOSYSTEMS RESEARCH AND TOYOTA CALAMBA

DEVELOPMENT BUREAU

SOFIO B. QUINTANA, Ph.D. CESO IV

Director

SIGNED IN THE PRESENCE OF:

 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

Los Baños, Laguna ) S. S.

BEFORE ME, a Notary Public for and the above jurisdiction, personally
appeared the following:

SOFIO B. QUINTANA, Ph.D. CESO IV with C.T.C. ________Dated/Placed

issued: _________, at ___________.

______________________ C.T. C. No. _________ Dated/Placed issued: _________,

2019 at Los Baños Laguna.

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

and acknowledged me that the same is their own free will and voluntary act and deed.

This instrument consists of six (6) pages including this page wherein this
Acknowledgment is written, and is signed by the parties and their instrumental
witnesses on each and every page hereof.

WITNESS MY HAND AND SEAL, this ________ day of ________ 2019 at Los
Baños, Laguna, Philippines.

Doc. No. ____:

Page No. ____:
Book No. ____:
Series of 2019.