July 13, 2012

ALVEFAM TRADING & CONSTRUCTION, INC.

Block 9 Lot 3A Springville Central 2, Molino 3,
Bacoor, Cavite
Attention:

Subject:
Project:

ENGR. ASHLEY A. ALVERO

Proprietor & Manager
LETTER OF AWARD / NOTICE TO PROCEED
CONSTRUCTION OF MAIN ROTUNDA SIGNAGE
PACIFIC GRAND VILLAS

Gentlemen:
We would like to inform you that the PHILIPPINE ESTATES CORPORATION (OWNER)
awarded Construction of Main Rotunda Signage at at Pacific Grand Villas, located at Suba-Panas
Road, Marigondon, Lapu-Lapu City (herein referred to as the PROJECT) to ALVEFAM TRADING &
CONSTRUCTION, INC. (CONTRACTOR).
With this, you are hereby instructed to proceed and commence with the Project in
accordance with paragraph. 1.0 herein.
In accordance with the plans, scope of works, technical specifications, selected
architectural finishes and other requirement, the price for the Project has been accepted in the
amount of PESOS: FIFTY FIVE THOUSAND (PhP 55,000.00) ONLY, VAT inclusive.

The foregoing is subject to the following terms and conditions:

1.0Construction shall commence on July 16, 2012. Construction duration for the
completion of all works is thirty calendar days (30 cds)
2.0Work shall include supply of materials, labor, supervision, tools and equipment
necessary for the completion of all scope of works at the sole expense of the
CONTRACTOR
3.0The down payment shall be Thirty Percent (30%) of the total contract price or SIXTEEN
THOUSAND FIVE HUNDRED PESOS ONLY (PhP 16,500.00), 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
3.4VAT Registration
4.0Balance shall be paid upon completion of the Project, wherein payment shall be made
by the OWNER to the CONTRACTOR within thirty (30) working days after receipt of the
approved Construction Managers Certificate of Payment, subject to the requirements
of Articles 6.0 to 9.0 of this Agreement.
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 Acceptance, the
CONTRACTOR shall submit an 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 turnover 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
8.0The CONTRACTOR do hereby warrants that all materials supplied by him under this
Agreement shall be free from any defects and shall fully comply in every respect with
the specifications and other requirements of the contract plans and other related
documents. The CONTRACTOR shall make no substitution for materials required unless
written approval is obtained from the Owner.
9.0The CONTRACTOR shall guarantee and maintain the stability of its works and materials
furnished, keep the same in good condition for a period of Twelve (12) months after
issuance of Certificate of Completion and Acceptance of the Project by the OWNER.
Defects appearing during this period, shall be answered and corrected by the
CONTRACTOR at its own expense.

Very truly yours,

PHILIPPINE ESTATES CORPORATION
CONSTRUCTION, INC

ELVIRA A. TING
President & CEO

Conforme:
ALVEFAM TRADING &

ASHLEY A. ALVERO
Proprietor & Manager