August 30, 2012

ELMAR LANDFORMING SREVICES

A. Tumulak st., Gun-ob,
Lapu-Lapu City
Attention:

Subject:
Project:

MR. ROEL D. CONSTATINO

General Manager
LETTER OF AWARD / NOTICE TO PROCEED
MAIN ROTUNDA LANDSCAPING & SIGNAGE WORKS
Pacific Grand Villas

Gentlemen:
We would like to inform you that the PHILIPPINE ESTATES CORPORATION (OWNER) awarded the
Landscaping & Signage Works of Main Rotunda at Pacific Grand Villas, located at Suba-Panas
Road, Marigondon, Lapu-Lapu City (herein referred to as the PROJECT) to ELMAR LANDFORMING
SERVICES (CONTRACTOR) based on 17th August 2012 final proposal. With this, you are hereby
instructed to proceed and commence with the Project in accordance with paragraph 1.0 herein,
the plans, scope of works and technical specifications.
The foregoing is subject but not limited to the following terms and conditions:
1.0Construction shall commence on 31st August 2012. Construction duration for the completion
of all works is thirty calendar days (30 cds)
2.0Work shall include supply of materials, labor, supervision, furnishing of landscape, tools and
equipment necessary for the completion of all scope of works at the sole expense of the
CONTRACTOR subject but not limited to the following:
2.1Area preparation which shall include removal of existing shrubs, grasses and other existing
unnecessary objects that may affect implementation of the plans as approved;
2.2Uprooting existing trees and roots that are necessary to the final design;
2.3Ground leveling as required;
2.4Supply and spreading of garden soil, plant approved ornamental plants per design;
2.5Supply and construction of hardscape and signage per plan and specifications. Preparation
of other technical details which are not included in the issued plans but necessary for the
implementation of the Project shall be under the responsibility of the Contractor;
2.6Supply and planting of all required plants including required tampering;
2.7Watering of all plants;
2.8Thirty (30) days Mortality Warranty including watering of plants not less than 4 days a
week starting upon the completion of the Project.
For the above scope of works including all requirements indicated herein, the Project shall be
in the amount of PESOS: THREE HUNDRED TWENTY SEVEN THOUSAND FIFTY EIGHT
AND 87/100 ONLY (PhP 327,058.87), VAT inclusive.
3.0The down payment shall be Thirty Percent (30%) of the total contract price or NINETY EIGHT
THOUSAND ONE HUNDRED SEVENTEEN PESOS AND 66/100 (PhP 98,117.66), which shall be
paid to the CONTRACTOR only after submission of the documents as follows:
3.1Bar Chart for the project wherein the pay item is the same as the Bid Breakdown and
Contract duration.
3.2Copy of Business Registration DTI/SEC Registration
3.3Certificate of Registration from Bureau of Internal Revenue
3.4Company Bank Account Number
35th Flr. One Corporate Center
Julia Vargas Avenue, corner Meralco Avenue
Ortigas Center, Pasig City, Philippines, 1605
Tel. No.: (632) 637-3112
Fax No.: (632) 636-8847

4.0The balance shall be paid through progress billing, which shall be payable upon submission of
the Contractors Letter Request, Contractors Breakdown of Accomplishment and Project
Pictures as progress billing requirements.. Ten percent (10%) of each progress payment shall
be retained by the OWNER until completion of the contract.
5.0In case of failure to complete and finish the Project within the specified period, the Contractor
shall pay the OWNER liquidated damages equivalent to One-tenth (1/10) of One Percent
(0.1%) of the Total Contract Price per calendar day of delay (including Sundays & Holidays),
until the work is completed by the CONTRACTOR or a third party. The CONTRACTOR hereby
authorizes the OWNER to deduct the amount of liquidated damages from any amount/s due
and owing to the former.
6.0Once the Project is fully completed and in accordance with this agreement, the OWNER shall
issue a Written Certificate of Completion and Acceptance. The balance of the contract price
due to the CONTRACTOR shall become payable within thirty (30) days from issuance of the
written Certificate of Completion and Acceptance subject to paragraph 7.0 hereof.
Before issuance of the written Certificate of Completion and Acceptance, the CONTRACTOR
shall submit the following:
6.1A written certification from the Project Manager that the plants passed the two (2) week
survival test;
6.2An undertaking satisfactory to the Owner that all payrolls, materials, bills and other
indebtedness relating to the Project is fully settled. Any claim from a third party arising
from this agreement will be sufficient reason for the Owner to withhold any payment due
to the CONTRACTOR in the amount equivalent to such claim.
7.0Ten Percent (10%) of the payment shall be retained by the OWNER until the full turn-over and
acceptance of the Project. The full amount of the retention shall be released by the OWNER to
CONTRACTOR, thirty (30) days after the completion of work and submission by the contractor
of the following:
a) Contractors Sworn Statement showing that all taxes due from the CONTRACTOR, and all
obligations on materials used and labor employed in connection with this contract have
been duly paid.
b) Punchlist report showing completion of all rectification works
c) Contractors Letter Request
8.0The CONTRACTOR do hereby warrants that all materials (except plants) supplied by him
under this Agreement including stability of the erected and constructed structures shall be
free from any defects and shall fully comply in every respect with the specifications and other
technical requirements of the contract plans and other related documents for a period of one
(1) year. The CONTRACTOR shall make no substitution for materials required unless written
approval is obtained from the Owner.

Very truly yours,

PHILIPPINE ESTATES CORPORATION
SERVICES

ELVIRA A. TING
President & CEO

35th Flr. One Corporate Center

Julia Vargas Avenue, corner Meralco Avenue
Ortigas Center, Pasig City, Philippines, 1605
Tel. No.: (632) 637-3112
Fax No.: (632) 636-8847

Conforme:
ELMAR LANDFORMING

ROEL D. CONSTATINO
General Manager