Republic of the Philippines

Province of Cebu
MUNICIPALITY OF ARGAO
OFFICE OF THE LOCAL CHIEF EXECUTIVE
Telefax: (032) 3677 – 542
Email: argaomunicipality@gmail.com
August 2, 2019

MR. CHARLESTON Y. JO
Proprietor/Manager
JO BUILDERS
Greenbelt Drive, Sabellano St., Quiot, Cebu City

Subject: ORDER OF TERMINATION

Dear Mr. Jo:

This refers to your contract Proposed Construction of a 4-Classroom, 2-Storey School Building
(Phase 1) in the amount P 4,642,622.70. Please be reminded that under the respective contract
agreement, you have agreed to complete the works based on the following:

Contract Agreement : Made: December 18, 2018

Original Contract Amount : Php 4,642,622.70
Date of Effectivity of Contract : January 05, 2019
Original Expiry Date : June 14, 2019
Original Contract Time : 138 Working Days
Planned Percentage of Work Accomplished : 100 %
Actual Percentage of Work Accomplished : 35.765 %
Slippage as of Expiry Date : (-) 64.245 %
Time Elapsed of Work Accomplished : 180 Working Calendar Days
Percentage of Time Elapsed : 130.43 %

Dated 16 on July 2019, Notice of Termination was issued to your office and directed to “show
cause” within seven (7) calendar days upon receipt to explain why your contract should not be
terminated or rescinded. (Refer “Annex A”)

Upon verification, written explanation was received in this office dated 23 on July 2019 in which
you committed to complete the above-mentioned project. (Refer “Annex B”)
In view of the foregoing, I regret to inform you that this office has decided that this contract;
Proposed Construction of a 4-Classroom, 2-Storey School Building (Phase 1)) is being
terminated despite of the executed written explanation. This office has verified the fundamental
breaches of the contract as follows;

a. Due to the Contractor’s fault and after the contract time has expired, it has incurred a
negative slippage of ten percent (10%) or more.

b. The Contractor:
 I. Abandons the contract works, refuses or fails to comply with a valid instruction of
the Procuring Entity or fails to proceed expeditiously and without delay despite a
written notice by the Procuring Entity;
II. Does not actually have on the project site the minimum essential equipment listed
on the Bid necessary to prosecute the Works in accordance with the approved
work plan and equipment deployment schedule as required for the project;
III. Does not execute the Works in accordance with the contract or persistently or
fragrantly neglects to carry out its obligations under the contract;

It is hereby understood that you are required to stop work immediately, make the site safe and
secure, and leave the site as soon as reasonably possible. The performance security posted in the
favor of the Procuring Entity shall be forfeited.
Please be guided accordingly.

Very truly yours,

Hon. ALLAN M. SESALDO

Municipal Mayor