MEMORANDUM

FOR : ENGR. RIZALDE A. MEDIAVILLO

Officer-In-Charge, Region VIII

THRU : RENATO Y. ALZONA

Officer-in-Charge, FMD

SUBJECT : COMMENTS ON THE DRAFT CONTRACT FOR THE

PROCUREMENT OF FULLY DEVELOPED LOTS AND
COMPLETED HOUSING UNITS (392), BILIRAN LUCKY
RESIDENCES, BRGY. BUSALI, BILIRAN, BILIRAN

Date : 8 May 2019

I. Preliminary Statement
This has reference to your request for the review and comment on the above-
captioned draft Procurement Contract between the National Housing Authority
(“Authority”) and Verlin Konstrukt, Inc. (“Contractor”).
The following documents are attached to the file folder:
1. Draft copies of the Contract
2. Request for Fund Allotment Form
3. Certificate as to Availability of Funds
4. Notice of Award
5. Photocopy of Passport: Tape, Virgilio Gales

II. Antecedents
The submitted contract subject for execution by and between the National Housing
Authority (“Authority”) and Verlin Konstrukt, Inc. (“Contractor”) covers the
procurement of Three Hundred Ninety Two (392) fully developed lots and completed
housing units (House and Lot Package) for Biliran Lucky Residences in Brgy. Busali,
Biliran, Biliran, under the NHA’s Typhoon Permanent Housing Program.
The approved maximum price per Unit (House and Lot Package) is Three Hundred
Sixty Four Thousand Two Hundred Fifteen Pesos and 85/100 (Php364,215.85).
Pursuant to Request for Fund Allotment No. 1913-87-37 and NHA Board Resolution
No. NHA-BR-6189 dated 2 May 2017, the approved Fund Allotment for the Contract
Price for the Procurement of 392 units (House and Lot Package) is One Hundred Forty
Two Million Six Hundred Eight Thousand Three Hundred Seventy Five Pesos
(Php142,608,375.00).
Moreover, the Contractor warrants to complete the project within Two Hundred Forty
Five (245) calendar days from the date stated in the Notice to Proceed. The same may

Page 1 of 3
be extended upon submission of a written request to the Authority, and pursuant to
the conditions prescribed in Annex “E” Part 10 of R.A. No. 9184 IRR-A.
In general, the contents of the Contract are as follows:
ARTICLE I - Contract Documents
ARTICLE II - Contract Price
ARTICLE III - Contractor’s Undertaking
ARTICLE IV - Manner of Payment
ARTICLE V - Work Completion
ARTICLE VI - Performance Security
ARTICLE VII - Delay and Liquidated Damages
ARTICLE VIII - Identification and Correction of Defects
ARTICLE IX - Liability to Third Persons
ARTICLE X - No Employer-Employee Relationship
ARTICLE XI - Disputes and Arbitration
ARTICLE XII - Suppletory Use of Contract Documents
ARTICLE XIII - Suspension of Work
ARTICLE XIV - Taxes, Duties, and Fees
ARTICLE XV - Variation Orders
ARTICLE XVI - Non-Waiver of Rights
ARTICLE XVII - Validity Clause
ARTICLE XVIII - Termination of Contract
ARTICLE XIX - Assignment and Sub-Contracting
ARTICLE XX - Delegation of Authority
ARTICLE XXI - Tax Exemption of the Project
ARTICLE XXII - Additional Provisions
III. Applicable Laws/Rules

 P.D. No. 757

“Section 6. Powers and functions of the Authority.

(k) Enter into contracts whenever necessary under such terms
and conditions as it may deem proper and reasonable;”
 R.A. No. 9184 (Government Procurement Reform Act)

 New Civil Code

“Article 1306. The contracting parties may establish such

stipulations, clauses, terms and conditions as they may deem
convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy.”

IV. Discussion and Recommendation

After a careful perusal of the subject Contract, we find the same to be generally in
order and in conformance with the aforementioned laws.

Page 2 of 3
Nevertheless, it is worth noting that the Board Resolution issued by the Contractor,
authorizing its President, Mr. Virgilio G. Tape, to represent said entity in this
transaction and to sign the subject contract, is not attached to the records/file folder.
It is imperative that said Board Resolution be attached in the records as proof that the
Mr. Virgilio G. Tape is duly authorized by its Board to represent the Contractor in this
transaction.
Likewise, the Project Office is directed to secure a copy of the NHA Board Resolution
allowing the delegation of authority in favor of the Contractor in accordance with Article
XX of this Contract.
The Project Office is also strictly reminded that the provision in Art XX (Delegation of
Authority), if ever allowed by the Board, should only be done in the most dire
circumstances, and it should always be NHA employees who should represent the
Authority in other government offices.
The Contractor shall also be required to submit a Board Resolution stating the name/s
of the authorized persons/representatives who shall perform the delegated authority
set forth under Article XX in behalf of NHA.
We also require that NHA Board Resolution No. NHA-BR-6189 dated May 02, 2017,
and all the Annexes and Contract Documents identified in the contract be attached
and/or annexed to the contract.
Considering the foregoing, the subject contract shall be recommended for signature
of the General Manager once the required documents/annexes are attached to the
contract.
Please bear in mind that this contract review is based only on the facts and the records
submitted to us and our appreciation of the same, and does not include the financial
and technical aspects of the subject contract.
For your guidance and compliance. Thank you.

Attorney III, Legal Services Division

Reviewed by:

Division Manager, Trial Services Division

Approved by:

Manager, Legal Department

Page 3 of 3