Republic of the Philippines

DEPARTMENT
Region
Address

SERVICE CONTRACT NO. 2020 - _______

KNOW ALL MEN BY THESE PRESENTS:

THIS SERVICE CONTRACT, made and entered into this ________ by and
between the DEPARTMENT ____- _____REGION, located at _____ City,
represented herein by its Regional Director, ______, hereinafter referred to as the
“CLIENT”;

and

XYZ, a corporation duly organized and existing under the laws of the
Republic of the Philippines, with business address at _____City, represented
herein by its General Manager and Authorized Representative, ABC, herein
referred to as the “SECURITY COMPANY”;

WITNESSETH

WHEREAS, the SECURITY COMPANY is a duly licensed and bonded

security agency registered and accredited with the Philippines National Police
(PNP), Camp Crame, Quezon City, and operating under the provisions of
Republic Act No. 5487 as amended, also known as the “Private Security Agency
Law”;

WHEREAS, the CLIENT has invited bids for one (1) year security services
for DepEd MIMAROPA Regional Office, and received a lone bid, where CLIENT
opened, read, and evaluated the bid, post–qualified, and declared that the
SECURITY COMPANY as the lowest calculated responsive bidder;

WHEREAS, the CLIENT passed and approved a Resolution to award in

favor of the SECURITY COMPANY, in the sum of FIVE HUNDRED EIGHTY
THREE THOUSAND TWO HUNDRED PESOS (PHP 583,200.00) only, herein
after referred to as the “Contract Price”;

WHEREAS, the SECURITY COMPANY at the time of submission of bids

has a valid License to Operate, and has likewise applied for the renewal of its
License to Operate prior to its expiry and the same remains pending before the
PNP. That Section 4(eee) of RA No. 11494 or the “Bayanihan to Recover As One
Act” mandates all government agencies to act on all pending applications for
permits and licenses to support business continuity;

WHEREAS, the SECURITY COMPANY pledges to immediately give the

CLIENT its approved License to Operate the soonest possible time to ensure the
payment of its contractual obligations set forth in this Service Contract;

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

the parties hereto have agreed, as follows:

1. PLACE AND LOCATION. The SECURITY COMPANY shall provide

security guard services at _____, located at _____ City;

2. FUNCTIONS AND DUTIES OF GUARDS. The guards are to maintain

general peace and order at the aforementioned premises and
specifically but not limited to the following:

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BENJAMIN D. PARAGAS a. to watch, safeguard,
WILFRED and protect ELSIE
G. MARTIN the property of the _______________________
P. PARREÑO CLIENT
from theft, robbery, arson, and destruction or damage;
b. to protect the directors, officers, employees and personnel from
harassment, threat or intimidation;
c. and to enforce and implement rules, policies and regulations of
the CLIENT aimed at maintaining security and safety thereat.

2.1. GUARD FORCES. The SECURITY COMPANY shall provide the

CLIENT with two (2) duly qualified and licensed security guards,
which must first be pre–approved by the CLIENT. The Security
Guards shall respectively render twelve (12) hours per day for
seven (7) days (Monday–Sunday) duty. The services of the Security
Guard assigned, however, shall be for two (2) months, which can
be extended for not more than six (6) months.

2.2. QUALIFICATION OF GUARDS. The Security Guard to be assigned

by the SECURITY COMPANY to the CLIENT must be:

a. Of good moral character and reputation, courteous, alert, and

without criminal or police record;
b. Physically and mentally fit;
c. Not less than 21 nor more than 40 years of age;
d. At least five feet four inches (5’4”) in height;
e. Duly licensed and properly screened and cleared by the
Philippine National Police (PNP), National Bureau of
Investigation (NBI), and other Government Offices issuing
clearance for employment;
f. In proper uniform and with other security paraphernalia such
as flashlight, radio, night stick, etc.;
g. Armed with appropriate and functional rifle, shotgun, pistol or
revolver, with sufficient ammunition at all times during his
hours of duty;
h. Must have passed the Neuro–psychiatric exam; and,
i. In possession of such other qualifications required by Ra No.
5487, as amended;
j. The CLIENT must be furnished copies of the abovementioned
documents in items e, h, and i.

3. MODE OF PAYMENT. For and in consideration of the above services

and during the effectivity of this Contract, the CLIENT shall pay the
SECURITY COMPANY the sum of TWENTY–FOUR THOUSAND
THREE HUNDRED PESOS AND 00/100 (PHP 24,300.00) per Security
Guard per month inclusive of all taxed and other fees as may be
required by the government, one half of which consideration shall be
paid every fifteenth (15th) and the other half every end of each month
without need of demand.

That the CLIENT agrees to pay the SECURITY COMPANY in

accordance with the authorized compensation subject to the
accounting and auditing rules and regulations chargeable against the
Regional Office Funds;

It is understood that the portion of the above consideration equivalent

to the amount to which the Security Guards are entitled by way of
salary compensation shall be received by the SECURITY COMPANY
from the CLIENT in trust only for said Security Guards.

4. SUPERVISION AND CONTROL. The SECURITY COMPANY shall

exercise strict discipline, close supervision, exclusive control, and
administration over its guards in accordance with law, ordinances
and pertinent government rules and regulations, as well as the rules
and policies laid down by the CLIENT insofar as performance of the
Security Guards duties and responsibilities are concerned. Insofar as
the enforcement of PNP and company rules and regulations relating

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 to security and safety, the CLIENT shall likewise exercise supervision
and control over the Security Guards.

5. LIABILITY OF SECURITY GUARDS AND THIRD PARTIES . The

SECURITY COMPANY is not an agent or employer of the CLIENT and
the Security Guards to be assigned by the SECURITY COMPANY to
the CLIENT are in no sense employees of the latter as they are for all
intents and purposes employees of the SECURITY COMPANY.
Accordingly, the CLIENT shall not be responsible for any and all
claims for personal injury or death caused to any of the Security
Guards or to any third party where such injury or death arises out of,
whether or not the same occurred in the course of the performance of
their duties.

6. LOSSES AND DAMAGES. The SECURITY COMPANY, pursuant to

the provisions under RA No. 386 or the “New Civil Code”, shall not be
liable for losses and/or damages due to fortuitous events or force
majeure beyond the control and competence of the Security Guard to
prevent the occurrence of the same. However, liability attaches to the
SECURITY COMPANY for other damages and/or losses of the
CLIENT’S property due to the negligence or failure of Security Guard
on duty to prevent the same. The compensable damage or loss as
determined, may be chargeable against the Performance Security
Bond as stated in item no.12.

To ensure effectiveness in safeguarding and protecting the CLIENT’S

properties, a “Gate Pass” containing the description of the property
must be duly filled out and signed by the concerned official allowing
said property to be brought out of the guarded premises. In this
connection, the CLIENT shall furnish the SECURITY COMPANY a
copy of the respective specimen signatures of approving officials.

7. REPLACEMENT OF ANY SECURITY GUARD . The CLIENT has the

prerogative to have a Security Guard changed or replaced at anytime
whose work it finds and believes to be below standard, whose conduct
is unsatisfactory, or is prejudicial to its interest, or other similar
circumstances as determined by the CLIENT. Notice shall be duly
given to the SECURITY COMPANY for it to expeditiously replace the
Security Guard without interruption of the safeguarding service due
to the CLIENT.

8. EMPLOYMENT RESTRICTION. The CLIENT shall not employ,

directly or indirectly, any of the SECURITY COMPANY’S officers,
present employees, and former employees who have been out of the
SECURITY COMPANY for less than six (6) months during the time of
their contract or within six (6) months after its termination.

9. SECURITY GUARD’S PERFORMANCE BOND. The SECURITY

COMPANY shall furnish the CLIENT a good and sufficient
Performance Bond in the form of Security Bond amounting to ONE
HUNDRED SEVENTY FOUR THOUSAND NINE HUNDRED SIXTY
PESOS AND 00/100 (PHP 174,960.00), which is equivalent to thirty
(30%) of the Contract Price, to ensure the faithful execution of this
Service Contract and as a guarantee against any claim of the CLIENT
for losses and/or damages to CLIENT’S property which are due to the
intentional act, omission, and/or negligence of the Security Guard.
However, losses and/or damages which are not of considerable
amount, as determined, may be compensated or deducted through
the monthly remittance to the SECURITY COMPANY until fully paid.
This shall be duly represented by documents prepared by the General
Service Unit and the Finance Division of the CLIENT. The SECURITY
COMPANY shall maintain the Performance Bond for the entire
duration of this Service Contract.

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 All judicial or extra–judicial expenses which shall be incurred by the
SECURITY COMPANY in connection with the performance of duties
and responsibilities by its Security Guard shall be for the account of
the SECURITY COMPANY.

10. MEDICAL CERTIFICATE. Submission of a valid medical certificate

from a licensed physician attesting to their general physical fitness
and clearance from COVID infection.

11. TERM OF SERVICE CONTRACT. This Service Contract shall take

effect on November 1, 2020 up to October 31, 2021, unless earlier
terminated for any legal and/or valid cause, by either party through
written notice thirty (30) days prior to the intended date of
termination. The Service Contract may be terminated according to the
provisions under the New Civil Code.

12.AMENDMENTS. Any modification in the terms of the Contract must

be done in writing and signed by both parties, which shall thereafter
form of the existing Contract.

13.DISPUTE. Any issue raised by the parties on this Contract shall be

settled amicably between them. Should amicable settlement be not
possible, either party may resort to litigation and shall waive all other
venues to exclusively institute their cause of action before the courts
of Pasig City only.

IN WITNESS WHEREOF, the parties have hereunto set their hands on

the date above first written at Pasig City, Philippines.

SIGNED:

FUNDS AVAILABLE:

Accountant III

REPUBLIC OF THE PHILIPPINES )

City of __________________________)S.S.

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 ACKNOWLEDGMENT

BEFORE ME, a Notary Public for and in _____________________,

Philippines, this day _____________________, personally appeared:

all known to me and to me known to be the same persons who executed the
foregoing instrument and acknowledged to me that the same is the free and
voluntary act and deed of the entities which they respectively represent. This
instrument consists of five (5) pages, including this page in which this
Acknowledgement is written, duly signed by them and their instrumental
witnesses on each and every page hereof.

WITNESS MY HAND AND SEAL on the date and place first above written.

NOTARY PUBLIC
Doc. No. ______;
Page No. ______;
Book No. ______;
Series of 2020;

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