CONTRACT AGREEMENT

For Supply and Delivery of Labor,

Materials and Equipment
ENGR. RODUARD MICHAEL C. BUSTILLO

KNOW ALL MEN BY THESE PRESENT:

This Contract made and entered into by and between:

RODNET BUILDERS INC.

RODNET BUILDERS INC., a corporation organized and existing

under and by virtue of the laws of the Republic of the Philippines
with main office address at P-1A, Bacolod St., Upper Doongan,
Butuan City, represented herein by its VP-Operations, ENGR.
RODUARD MICHAEL C. BUSTILLO, duly authorized for this
purpose hereinafter referred to as the FIRST PARTY;

-and-

BUFFALO CONSTRUCTION AND SUPPLY, a duly registered sole

proprietorship, organized and existing under Philippine laws with
principal office at Butuan City, Agusan del Norte represented herein
by, JONATHAN A. SANGLAY JR., hereinafter referred to as the
SECOND PARTY.

WITNESSETH that:
BUFFALO CONSTRUCTION AND SUPPLY
JONATHAN A. SANGLAY JR.

WHEREAS, the FIRST PARTY was awarded a contract by the Central

Mindanao University (CMU) identified as Contract ID No.: INFRA-21-PB-10
Construction of Multi-Purpose Facilities (Farmer’s Techno Hub) Phase 1,
Musuan, Maramag, Bukidnon.

WHEREAS, the SECOND PARTY possesses the attributes of a legitimate

supply and delivery servicer and has the equipment, manpower, and financial
resources, and technical experience to be able to fully and faithfully execute the
items of work subject of this agreement in complete adherence to the Project’s
approved plans and specifications and construction timetable;

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

the parties hereto agree and covenant with each other as follows:

ARTICLE I
SCOPE OF WORK

I.1 The FIRST PARTY hereby allows and enters a contract unto the SECOND
PARTY for the supply of labor, materials, and equipment for the Project
with Contract ID No. INFRA-21-PB-11 as indicated herein as:
Contract ID No.: INFRA-21-PB-11
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 ITEM DESCRIPTION QTY. UNIT
I MOVING-IN/MOVING-OUT 1 l.s.
II A.) Occupational Safety & Health Program 4 mos.
B.) Permits and Clearances 1 l.s.
ENGR. RODUARD MICHAEL C. BUSTILLO

C.) Project Billboard/Signboard 2 each

D.) Temporary Facilities 1 l.s.
III A.) Clearing and Layout 1,170.00 sq.m.
B.) Structure Excavation, Common Soil 148.1 cu.m.
RODNET BUILDERS INC.

C.) Embankment from Structure Excav. 156.3 cu.m.

D.) Gravel Bedding 184.1 cu.m.
IV STRUCTURAL CONCRETE CLASS “A” 409.8 cu.m.
V A.) REINFORCING STEEL (Deformed),
18,936.7 kgs.
Grade 40
B) REINFORCING STEEL (Deformed), Grade
27,940.6 kgs.
60
VI A.) FORMWORKS AND SCAFFOLDINGS 1,395.60 sq.m.
B.) METAL DECK 249.6 sq.m.
VII A.) STRUCTURAL STEEL, TRUSSES 24,007.9 kgs.
B.) STRUCTURAL STEEL, PURLINS 7,065.6 kgs.
C.) METAL STRUCTURE ACCESSORIES
1,309.20 kgs.
STEEL PLATES
D.) METAL STRUCTURE ACCESSORIES,
549.90 kgs.
BOLTS
E.) METAL STRUCTURE ACCESSORIES,
573.8 kgs.
SAGRODS
F.) FABRICATED METAL ROOFING:
ACCESSORY, GAUGE 26, RIDGE/HIP 152.6 l.m.
ROLLS
G.) PREPAINTED METAL SHEETS, ABOVE
1,360.40 sq.m.
0.427mm, RIB TYPE, LONG SPAN
BUFFALO CONSTRUCTION AND SUPPLY

VIII CONDUITS, BOXES, & FITTINGS (Conduit

JONATHAN A. SANGLAY JR.

1 l.s.
Works/Conduit Roughing-in)
IX PLUMBING WORKS (Roughing Ins and
1 l.s.
Fittings)
X FIRE PROTECTION SYSTEM (Roughing In) 1 l.s.
XI STRUCTURAL CABLING (Roughing In) 1 l.s.

I.2. The SECOND PARTY agrees to supply to the FIRST PARTY the
incidental service of installation of the mentioned materials and other
services necessary for its completion;

I.3. The PARTIES agree that the consideration involved in this contract is
inclusive of any contingent price increase of materials unless the PARTIES
subsequently agree in writing to amend the contract price to accommodate
price hikes;

I.4. The PARTIES have agreed that the quantities may vary based on
measurements of actual, completed, and approved by the procuring
agency for billing purposes. Any works not authorized by the procuring
agency shall not be billable nor payable to the SECOND PARTY;

I.5. The SECOND PARTY shall use its basic tools, equipment, materials, and
manpower, all for the cost of the SECOND PARTY. In case the SECOND
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 PARTY does not have all of the required tools, equipment, or materials, he
may lease from the FIRST PARTY at the rates agreed upon by the
PARTIES.

I.6. The scope covers the responsibility of the SECOND PARTY to shoulder
ENGR. RODUARD MICHAEL C. BUSTILLO

the expenses of basic first aid and health facilities and to maintain security
and order in the project site, in compliance with DPWH, DENR, DOH,
LGU, or government regulations while the barracks for the workers shall
be provided by the FIRST PARTY;
RODNET BUILDERS INC.

ARTICLE II
DURATION

II.1. The duration of this Contract is One Hundred Seven (107) Working Days
from its execution, subject to extension if there is an additional volume of
work, those granted by the FIRST PARTY, and/or if the site where the
items of work are not yet complete or is prevented by force majeure.

ARTICLE III
CONSIDERATION

III.1. In consideration of the services of the SECOND PARTY, the FIRST

PARTY shall PAY the contract price of TWENTY MILLION NINE
HUNDRED SEVENTY-EIGHT THOUSAND EIGHT HUNDRED
FOURTEEN AND 37/100 PESOS (Php 20,978,814.37) inclusive of tax,
which shall be payable through progressive billings.
BUFFALO CONSTRUCTION AND SUPPLY

ARTICLE IV
JONATHAN A. SANGLAY JR.

PAYMENT

A. MANNER OF PAYMENT

V.1 Payment will be made based on the progress of work done by the
SECOND PARTY who shall submit an accomplishment report and
progress billing to the FIRST PARTY. The report and billing shall be
subject to inspection and/or verification by the FIRST PARTY’s Project
Engineer and Inspectorate Team, for approval.

V.2 The PARTIES agree that payment shall only be made once the FIRST
PARTY is satisfied that the progress and accomplishment billing are true
and correct.

B. ADVANCE PAYMENT

IV.B.1. The FIRST PARTY shall allow the SECOND PARTY to avail of a Fifteen
Percent (15%) down payment to mobilize and purchase the materials
needed for the works and installation. The remaining balance of the whole
contract amount shall be collected through accomplishment billings.

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 IV.B.2. If the down payment has not been repaid before taking over or before
termination of the contract, the whole of the balance shall immediately
become due and payable by the SECOND PARTY to the FIRST PARTY.

C. DEDUCTIBLE FROM ALL BILLING AND PAYMENT

ENGR. RODUARD MICHAEL C. BUSTILLO

IV.C.1. All payments of billing shall be subject to the mandatory TWO PERCENT
(2%) Withholding Tax;
RODNET BUILDERS INC.

IV.C.2. The FIRST PARTY shall deduct TEN PERCENT (10%) on the gross billed
amount as retention to guarantee all warranty undertakings of the
SECOND PARTY. The retention fund shall be released only upon
completion and acceptance by the procuring agency;

IV.C.3. The FIRST PARTY shall deduct TWENTY-FIVE (25%) PERCENT on the
gross billed amount, as recoupment to the mobilization fund paid in
advance to the SECOND PARTY. This shall be enforced in every progress
billing by the SECOND PARTY until the 15% mobilization fund is fully paid.

ARTICLE III
QUALITY WARRANTY AGAINST MATERIAL AND
STRUCTURAL DEFECTS

III.1 Non-performance arises when the SECOND PARTY fails to perform the
required works under this Contract;

III.2 Any Defects/Failures arising due to faults attributable to improper

BUFFALO CONSTRUCTION AND SUPPLY

construction workmanship shall render the SECOND PARTY liable;

JONATHAN A. SANGLAY JR.

III.3 The SECOND PARTY shall be required to put up warranty security in the
form of surety bond callable on-demand issued by any surety or insurance
or bonding company accredited by the Insurance Company and duly
accepted by the FIRST PARTY. The amount of the surety bond callable
on-demand shall be equivalent to One Hundred Percent (100%) of the
Contract Amount.

ARTICLE IV
RESPONSIBILITY FOR DAMAGES

IV.1 It is understood that the SECOND PARTY is not the employee, agent or
partner of the FIRST PARTY. Hence, the SECOND PARTY shall be fully
and solely responsible for any and all defects, losses, or damages that
may be caused on the contracted items of work due to fault imputable to
the SECOND PARTY, or its use of defective materials, delays, failure to
comply with the approved FIRST PARTY plans and/or specifications.

IV.2 As there is no employer-employee, agency, or partnership relationship

between the FIRST PARTY and the SECOND PARTY, the SECOND
PARTY shall be fully responsible for the conduct of its employees and
agents engaged in the execution of the contracted items of work. The
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 SECOND PARTY shall also be solely and exclusively responsible for the
payment of the wages/salaries and other benefits of its employees and
agents engaged in the execution of the contracted items of work. The
SECOND PARTY shall execute an Affidavit of Undertaking that all salaries
and wages and benefits due to all laborers, workers and third parties who
ENGR. RODUARD MICHAEL C. BUSTILLO

furnished labor and services has been fully paid in accordance to the
minimum standards set by the Labor Code, as requirement for Billing;
Second Party shall ensure that all workers are covered by SSS, Philhealth,
Pag-ibig, Insurance protection.
RODNET BUILDERS INC.

IV.3 The SECOND PARTY shall also be solely and exclusively responsible for
any death, injury or damage caused to or by the personnel or agents of the
SECOND PARTY to any third person should the cause of such death,
damage or injury be due to the fault or negligence of the SECOND PARTY
personnel or agents.

IV.4 The SECOND PARTY shall also be liable for any loss, damage to any
materials caused by mishandling of its employees or laborers, or for
reason of lack of skill, care and experience, the materials have to be
removed and replaced for reason that the work is substandard or the
quality failed to pass the design and quality.

ARTICLE V
MANNER OF PAYMENT

V.1 Payment will be made based on the progress of work done by the
SECOND PARTY who shall submit an accomplishment report/progress
BUFFALO CONSTRUCTION AND SUPPLY

billing to the FIRST PARTY which Report shall be subject for inspection
JONATHAN A. SANGLAY JR.

and/or verification by the FIRST PARTY Project Engineer and Inspectorate

Team, for approval. Payment shall only be made once the FIRST PARTY
is satisfied that the progress and accomplishment billing are true and
correct.

V.2 The SECOND PARTY shall pay the FIRST PARTY Liquidated Damages
equivalent to One Percent (1%) of the cost of the unfinished portion of the
project for each day of delay in the completion of the project, but not to
exceed Ten (10%) percent of the contract price. The start of delay shall be
reckoned from the end of the duration of this contract. The Liquidated
Damages shall be automatically be deducted from the collectibles, should
there be any, of the SECOND PARTY from the FIRST PARTY. In the
event the collectibles of the SECOND PARTY are insufficient to pay the
liquidated damages, the SECOND PARTY shall be obligated to pay the
same through cash or the issuance of a check.

V.3 Right To Terminate Contract - in the event the cumulative amount of

Liquidated Damages due to the SECOND PARTY reaches Fifteen Percent
(15%) of the Contract price, the FIRST PARTY is automatically entitled to
TERMINATE the Contract, without prejudice to other courses of action and
remedies the SECOND PARTY may avail.

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 ARTICLE VI
INSPECTION AND TESTING

VI.1 For purposes of Inspection and/or Verification of the veracity of the

Progress Billing/s of the SECOND PARTY, the FIRST PARTY shall be
ENGR. RODUARD MICHAEL C. BUSTILLO

allowed access to the work and the project site and provide proper
facilities for such access and inspection.

VI.2 The parties agree that FIRST PARTY shall conduct a periodic inspection
RODNET BUILDERS INC.

at least twice a month to inspect the quality and program of works, for
billing, reconstruction, replacement and other purposes.

ARTICLE VII
WARRANTY OF WORK

VII.1 The SECOND PARTY shall guarantee that the work done will be in
accordance with the specification of the Project as required by the FIRST
PARTY. If any defects are found, the SECOND PARTY shall repair or
replace any of the alleged defective work at its cost. The SECOND PARTY
shall shoulder all labor and materials, if the SECOND PARTY shall make
the necessary repair or replacement after due notice, or the FIRST PARTY
is compelled to do it on its own or another third party, the cost shall be
chargeable to ten (10%) percent retention fund.

VII.2 The warranty for quality of materials and work shall extend to the period
required by the DPWH regulations, which shall be at least fourteen (14)
years and one (1) year workmanship warranty for imported materials and
BUFFALO CONSTRUCTION AND SUPPLY

for the entire system provided where the item are used for its intended
JONATHAN A. SANGLAY JR.

purpose. Computed from the final acceptance by the CMU. In

consideration of the period, an insurance shall be secured by THE
SECOND PARTY to answer for any warranty, defects that would arise
within the warranty period. Except for hidden defects that could not
reasonably be discovered during the period. However, damages due to
Misuse, Abuse, Natural Calamities, Rubber, and Materials before the
turnover and acceptance by the CMU /client shall be assumed by the
Second Party.

ARTICLE VIII
CONTRACTOR’S SUPERINTENDENCE AND
CONTRACTOR’S ASSISTANCE

VIII.1 SECOND PARTY Employees – All persons whose services are availed by
the SECOND PARTY in the contracted works are its exclusive employees
and not the employees of the FIRST PARTY. The direction, supervision,
hiring, dismissal and control of such personnel shall be exclusive right and
responsibility of the SECOND PARTY, with the FIRST PARTY reserving
the right to ensure compliance by the SECOND PARTY with the approved
plans and specifications and scheduled timetables.

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 VIII.2 SECOND PARTY Superintendence – The SECOND PARTY shall, at all
times during the terms of this Contract, keep on the jobsite a competent
superintendent to prosecute the work in accordance with the drawings,
specifications and other instructions. The superintendent shall represent
the SECOND PARTY in its absence and all formal instructions given to
ENGR. RODUARD MICHAEL C. BUSTILLO

him shall be binding as if given directly to the FIRST PARTY.

VIII.3 SECOND PARTY shall maintain at all times sufficient number of laborers
and skilled workers, sufficient to meet the program of works that the
RODNET BUILDERS INC.

Procuring Agency has impose in the contract; PARTIES’ representatives

engineers shall confer and agree from time to time during the construction,
on the number of workers, basic tools and schedule of material deliveries
needed in the project. The minutes and resolutions shall form part of this
agreement as required for compliance of the mutual obligations of the
PARTIES;

ARTICLE IX
EXEMPTION FROM LIABILITIES

IX.1 The SECOND PARTY shall be exclusively responsible for any and all
liabilities for injuries or loss of lives to persons or damage to property
caused by its employees and agents and the SECOND PARTY shall hold
the FIRST PARTY free and harmless for any or all claims of said
employees or agents under the Labor Code and such other related laws
bearing on employer’s liability, separation pay, SSS, Philhealth and PAG-
IBIG Coverage, living allowance, income tax payment and the like.
BUFFALO CONSTRUCTION AND SUPPLY

ARTICLE X
JONATHAN A. SANGLAY JR.

TERMINATION OF CONTRACT

X.1 Ground for Termination - The presence of any of the grounds enumerated
hereunder shall entitle the FIRST PARTY to terminate the contract:

X.1.a. Willful violation and/or failure on the part of the SECOND

PARTY to comply with its obligation herein;
X.1.b. Abandonment of the works by the SECOND PARTY;
X.1.c. Assignment of this contract by the FIRST PARTY to another;
X.1.d. A delay or negative slippage of fifteen (15%) percent of the
programmed schedule;
X.1.e. Bad faith on the part of the SECOND PARTY in the execution of
this contract;
X.1.f. Lack of progress, would render it impossible to ensure that the
project is completed as scheduled.

X.2. The FIRST PARTY may only exercise its right to terminate the contract
after giving a notarial notice of the existence of any of the grounds for
Termination to the SECOND PARTY without the need for judicial
recourse. In the said notice, the FIRST PARTY shall, in all instances, give
the SECOND PARTY sufficient opportunity to remove, remedy, or rectify,
if possible, said ground before effecting the Termination of the contract.
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 X.3 Takeover by the FIRST PARTY – Should the SECOND PARTY still fail to
comply with its undertaking even after receipt of the notice of the intended
termination, the FIRST PARTY may take over the works and/or secure the
services of a third party to undertake its obligations. The cost of
ENGR. RODUARD MICHAEL C. BUSTILLO

completing the works shall be shouldered by the SECOND PARTY.

ARTICLE XI
COMPLIANCE WITH LAWS
RODNET BUILDERS INC.

XI.1 Whenever applicable and/or binding upon the parties, the SECOND
PARTY, in the performance of its obligations, shall comply with all laws,
ordinance, decrees, rules and regulations of both the national and local
governments.

ARTICLE XII
SEPARABILITY CLAUSE AND ARBITRATION

XII.1 In case any one or more of the provisions contained in this Agreement will
be declared invalid, illegal or unenforceable, the validity, legality or
enforceability of the remaining provisions contained `herein, insofar as still
consistent with the declared purposes of the parties, shall not in any way
be affected or impaired thereby.

XII.2 Any dispute or controversy of any kind whatsoever between the FIRST
PARTY and the SECOND PARTY which may arise out of or in connection
with this Agreement shall be referred to the proper courts in Butuan City,
BUFFALO CONSTRUCTION AND SUPPLY

Region XIII to the exclusion of other courts.

JONATHAN A. SANGLAY JR.

ARTICLE XIII
NON-WAIVER

XIII.1 The inaction or silence by any of the parties herein with respect to non-
compliance by the other of their respective obligations shall not be
construed or interpreted as a waiver or consent by the aggrieved party of
said non-compliance.

XIII.2 The parties hereto further agree to execute and/or submit such other
documents and papers as may be deemed necessary to
realize/accomplish the purposes of this Agreement or necessary for its
approval.

IN WITNESS WHEREOF, the parties have signed this Agreement at

Butuan City, Philippines, this ____ day of ___________, 2022.

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 RODNET BUILDERS INC. BUFFALO CONSTRUCTION AND
SUPPLY
First Party Second Party
By: By:
ENGR. RODUARD MICHAEL C. BUSTILLO

______________________________ _______________________________
RODUARD MICHAEL C. BUSTILLO JONATHAN A. SANGLAY JR.
RODNET BUILDERS INC.

Signed in the Presence of:

____________________________ ___________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

Butuan City . . . . . . . . . . . . . . ) S.S.

BEFORE ME, a Notary Public for and in Butuan City this ____ day of
__________, 2022, personally appeared:

NAME I.D. No. Place of Issue

TIN No.
Roduard Michael C. Bustillo Butuan City
441-493-863
Driver’s License
BUFFALO CONSTRUCTION AND SUPPLY

Jonathan A. Sanglay Jr. No. K01-08- Butuan City

JONATHAN A. SANGLAY JR.

003079

both known to me to be the same persons who executed the foregoing

instruments and they both acknowledge before me that the same is their free and
voluntary acts and deeds and those of the corporations and/or entities which
each of them respectively represents.

This instrument, consisting of nine (9) pages including this page wherein
this acknowledgment has been signed by the parties and their instrumental
witness on each and every page thereof.

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

NOTARY PUBLIC
Page No. _______;
Doc. No. _______;
Book No. _______;
Series of 2022

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