XXX/XX-7174-L-XXX-20

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25 June 2020

XXX
Municipality of XX,
Province of XXX, Philippines

Attention : Mr. XXX

Project Manager

Subject : Subcontractor’s Obligation under Section 1165, Clause 12.0 of the

Specification [Photographs]
XXX XXX Airport Construction Project

Dear Mr. XXX,

Reference is made to the Contractor’s correspondence no. XXX/XXX-2020-028 dated 20 January

2020, wherein the Subcontractor has been reminded on its submission of Requests for Approval
(RFA) for the enclosing thereby the following:
1. Sample approval of proposed cover;
2. 1 page of photo for Contractor/Subcontractor guidelines

The Contractor has reminded the Subcontractor under the following contract references:
1. In accordance with Section 1165, Clause 12.2 of the Specification, which states,

“Before substantial completion and taking over of the Works, the Contractor shall
commission a professional photographer and take photographs of the interior and exterior
of all section of the Works.”

2. In accordance with GCC Clause 8 ‘Commencement, Delays and Suspension’, Sub-Clause 8.2
‘Time of Completion’, which states,

“The Contractor shall complete the whole of the Works, and each Section (if any), within
the Time of Completion for the Works or Section (as the case may be), including:
(a) Achieving the passing of the Test on Completion, and
(b) Completing all work which is stated in the Contract as being required for the Works or
Section to be considered to be completed for the purposes of taking over under Sub-
Clause 10.1 [Taking Over of the Works and Sections].”

The Contractor has clarified that Subcontractor’s failure to comply such work by the end of
January 2020, the Subcontractor shall be subject to notice under Sub-Clause 2.5
[Contractor’s Claims] pay delay damages to the Contractor for this default.

The Subcontractor hereby opposes the Contractor’s stance on this outstanding work by raising
herein Clause 19 of the Construction Subcontract Agreement (Attachment-2), of which is the first
prioritized condition in the GCC Sub-Clause 1.5 Priority of Documents as stipulated in the Specific
Interpretation of the Main Contract for the Subcontract (Attachment-3), which states:

“It is hereby understood that no liquidated damages shall be imposed against Subcontractor should
there be no liquidated damages imposed by DOTC against the Contractor in respect to the
Subcontract Works.”

Hence, the Subcontractor’s commissioning of professional photographer and submission of

photographs to the Engineer does not consider as basis of any claim or entitlement of the
Contractor, Engineer and Employer against the Subcontractor.
XXX/XX-7174-L-XXX-20
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Furthermore, it is apparent that the Subcontractor still has its reasonable time prior for its
completion of this outstanding work on photographs pursuant to GCC Clause 11 ‘Defects Liability’
Sub-Clause 11.1 ‘Completion of Outstanding Work and Remedying Defects’ Item (a) (Attachment-4),
which states:

"(a) Complete any work which is outstanding on the date stated in a Taking-Over Certificate,
within such reasonable time as instructed by the Engineer; and”

Nevertheless, the Subcontractor asserts its commitment, submission and completion for this work
concerning hereto as the Subcontractor is noted on its contractual obligations in accordance to GCC
Clause 11 ‘Defects Liability’ Sub-Clause ‘Performance Certificate’.

The Contractor is trusted to let the Subcontractor exercise its contractual responsibilities in
reasonable time and in accordance to the GCC. Nevertheless, Subcontractor shall submit the
Contractor’s requirement as early as practicable.

Very truly yours,

Project Manager

Enc: Attachment-1 XXXX/XXX-2020-028 dated 20 January 2020

Enc: Attachment-2 Construction Subcontract Agreement Clause 19

Enc: Attachment-3 Specific Interpretation of the Main Contract for the Subcontract
Enc: Attachment-4 GCC Sub-Clause 11.1