REFERENCE: M8-0103

PROJECT NAME: COMPOSTELA BRGY. ROAD BOX CULVERT

DATE OF ISSUANCE: 19 MARCH 2019

INSTRUCTION TO BIDDERS

SCOPE OF WORKS:
1. Site clearing
2. Excavation works
3. Concrete works in accordance with the plans and standard specifications for concrete and
reinforced concrete works.
4. Formworks
5. Rebar fabrication.
6. Permits
7. Utilities
8. Housekeeping & Sanitation
9. Hauling out, disposal of garbage, and construction of wastes
10. As-built plans
11. Temporary Facilities
12. Bonds and insurances

EXCLUSION:

1. Rebar is owner supplied.

A. GENERAL CONDITIONS

1.0. The WORKS shall include all labor, materials, tools, equipment and services required to execute the
works necessary to complete the said items of work, as shown on the drawings, as specified herein,
and or as required by job conditions to provide and complete the construct ion.

2.0. All works shall comply with the requirements of the contract, including general and special conditions,
along with the drawings and all other contract documents.

3.0. Labor, materials, equipment, tools, supervision and services deemed necessary to complete the
WORKS as per industry practice, but NOT specifically shown and mentioned in the plans, details,
specifications or in the other bid and contract documents, shall be supplied by the Bidder without extra
cost to the Owner.

4.0. Bidder’s Responsibilities

4.1. The bidder is responsible for the following:

a. Having taken steps to carefully examine all Bidding Documents;
b. Having acknowledged all conditions, local or otherwise, affecting the implementation of
contract;
c. Having made an estimate of the facilities available and needed for the contract to bid, if any;
and
d. Complying with existing labor laws and standards.

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5.0. Sufficiency of Resources

5.1. Bidders are advised to ensure that they are thoroughly and completely familiar with the full extent
and character of the Works and are to satisfy themselves as to the supply of and conditions affecting
labor, plant, equipment, materials and goods, etc. for use in the execution of the Works.

5.2. Submission of Bids shall be deemed to indicate that the Bidder is fully aware of and has made due
allowance in pricing the Bill of Quantities for the aforementioned factors and either has satisfied
himself that there are sufficient resources available or undertakes to provide sufficient resources in
order to complete the works within the Time of Completion.

6.0. Pricing
The bidder shall submit the best proposal attributed to the works specified on the drawings,
specifications and scope of works provided.

6.1. The Bidder shall allow in his Bid the provision for Temporary Site Office for Owner or his
representatives with furniture (office tables, conference table and chairs, etc.), fixtures, fittings &
equipment including its maintenance during the entire construction period. (for Greenfield projects
and those outside the plants, as applicable).

6.2. The Bidder shall include the cost to abide by all environmental, health and safety regulations by
relevant authorities including compliance to safety and security rules & procedures being
implemented by the Owner’s Plant Administration for the issuance of work permit. Safety
orientations are being carried out by the Owner or his representative prior to mobilization and as a
minimum, the Bidder shall allow for the following:
a) Staff, workers, operators medical test result (Xray and Drug tests)
b) NBI Clearances of workers and operators
c) Third-party certification of skilled workers & operators (i.e. NC II or equivalent)
d) Third-party certification of construction equipment (i.e. backhoe, cranes, dozers, Ready-mix
concrete trucks, boom trucks, etc.)
e) Personal Protective Equipment (PPE’s) for Contractor’s staff, workers & operators
f) Safety officers/ practitioners as part of Contractor’s site organization.

6.3. The Bidders shall include cost for protecting, clearing up, restoration and making good of all
existing facilities and utilities including but not limited to pavements, sidewalks, finish flooring, walls,
waterline, drainage line, etc. that may be affected by the works during the course of construction.

6.4. The Bidders shall allow for the proper housekeeping, site sanitation and maintenance during the
entire construction period. This includes provision and maintenance of toilet facilities for the use of
his site personnel.

6.5. The Bidder shall at all times maintain a site organization under the control of qualified and
experienced staff that is capable of assuming complete responsibility for a contract of this nature.
Whenever required, the Contractor shall remove and replace any members of its site management

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 and supervision team if deemed incompetent and unfit to dispose his duties and responsibilities
required for the position as determined by the Owner or his representatives.

6.6. The Bid shall allow for providing shop drawings including revisions until approved, samples,
brochures & catalogues, and for obtaining the Owner’s approval for the same. This includes
preparation of As built drawings duly certified by the Contractor, to the satisfaction and approval of
the Owner or his representative.

6.7. The Bidder shall ensure the availability of measurement device, tools & instruments for the proper
execution of the Works. These instruments shall all be in proper adjustment and always kept in
perfect working condition and shall be made available whenever required by the Owner or his
representatives. This includes survey instruments for the purpose of validating site layouts, levels and
reference points.

6.8. The Bidder shall consider the provision for adequate temporary supply of all necessary electrical
power for the Works, and for paying all charges for the connection and consumption of electricity.
On Contractor’s discretion, it may include the supply, operation and maintenance of generators at
his own expense including for all testing and commissioning and until final handing over of the
Works. If the capacity permits, all other Contractors directly engaged by the Owner shall be allowed
to tap to the nearest existing temporary power line set up by the Bidder including the provision of
sub-meter, subject to payment of appropriate charges, as applicable.

Similarly, the Contractor shall arrange for a temporary supply of water suitable for the Works
throughout the duration of the project and including for all requirements during testing and
commissioning. In so far as reasonably practicable, having regard to local conditions, allow for
adequate supply of drinking water for the use of his staff and workers.

7.0. Submission of Bids

7.1. The bid shall be submitted via email and shall contain the following:
a. Gantt Chart indicating all activities with specific target completion per scope of work; and
b. Manpower and Equipment schedule for the whole duration of Works.

7.2. The bid shall be addressed to:

Procurement – Projects
SteelAsia Manufacturing Corporation
2F Building 5, Bonifacio High Street, BGC, Taguig, City

8.0 Indemnity to Owner

8.1. The Bidder and any of his employees or agents will be granted permission by the Owner to enter upon his premises and lands for the purpose of inspection in connection with the proposed Bids, but only on the condition that the Bidder will release and indemnify the Owner and his representatives and agents from and against all liability in
respect of personal injury, loss of or damage to property and any other loss, damage, cost and expense however caused but for the exercise of such permission would not have arisen.

B. CONTRACT AGREEMENT DETAILS

ITEM DATA

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SCOPE OF WORKS The CONTRACTOR shall supply the WORKS and SERVICES for the PROJECT
according to the Detailed Time Schedule, Program of Works, Plans, Specifications,
and Drawings approved by the OWNER.
CONTRACT PRICE The OWNER shall pay the CONTRACTOR, for the Project, the Contract Price in the
total amount as computed based on the percentage of progress
accomplishments.
COMPLETION PERIOD The CONTRACTOR shall commence the WORKS one (1) day after receipt by the
CONTRACTOR of the Notice to Proceed issued by the OWNER and shall complete
the project in compliance with what is stipulated in the Purchase Order, subject
to any extensions which may be granted by the OWNER.

The CONTRACTOR shall submit to the OWNER for its approval the
Detailed Project Time Schedule.

The CONTRACTOR undertakes to complete the WORKS strictly in

accordance with the Detailed Project Time Schedule for the WORKS. However,
the OWNER may, at its sole discretion and upon the written request of the
CONTRACTOR, which request shall sufficiently justify and substantiate the
reasons therefore, give the CONTRACTOR a reasonable extension of time within
which to complete the WORKS provided all extra costs will be borne solely by the
CONTRACTOR.

If the progress of the WORKS does not conform to the Detailed Project
Time Schedule or if the OWNER considers it desirable or necessary to change the
Detailed Project Time Schedule to catch-up with the WORKS, the OWNER can
instruct the CONTRACTOR to revise the Detailed Project Time Schedule. Such
revision shall be made within five (5) days from receipt of the written instruction
from the OWNER at the CONTRACTOR's expense.

Upon completion of the WORKS for the PROJECT, the CONTRACTOR shall
request the OWNER for Final Inspection and Acceptance. The OWNER shall issue
Certificate of Final Inspection and Acceptance from submission of request.
However, if the WORKS are not ready for turnover, the CONTRACTOR shall be
notified and provided a Punch List which must commenced within seven (7) days
and completed within fifteen (15) days from receipt thereof. Should the
CONTRACTOR fail to commence or complete the Punch List within said period,
the OWNER may carry out the completion of the works in Punch List, which cost
(actual cost plus 20% supervision) will be charged to or offset against any
outstanding monies due to the CONTRACTOR and/or applied to the
CONTRACTOR's Performance Bond.

A Final Acceptance Certificate shall not be conclusive evidence as to the

sufficiency of the WORKS. In the case of fraud or dishonesty, relating to or
affecting any matter dealt with in the Certificate and subject to the rights
reserved to the OWNER relating to defects after completion.

The issuance of the Final Acceptance Certificate shall not release the
CONTRACTOR from its liabilities and its obligations.

The CONTRACTOR shall prepare and submit six (6) complete sets of as-
built drawings or plans in blue prints (A2 size) and its electronic file in AUTOCAD
Format to the OWNER immediately after completion. These "As-built"
drawings/plans shall indicate all approved changes or revisions, made during the

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 construction, in respect of the original drawings/plans showing the exact as-built
locations, dimension, and kinds of materials, equipment, accessories and other
items of work, exposed or concealed. No Certificate of Final Acceptance shall be
issued to the CONTRACTOR without the as-built drawings/plans approved by the
OWNER. The review and approval by the OWNER of such record or "As-built"
drawings/plans shall not relieve the CONTRACTOR of any responsibilities arising
out of false or otherwise inaccurate Record or "As-built" drawings/plans prepared
and submitted by the CONTRACTOR.
TERMS OF PAYMENT The OWNER shall pay according to the following schedule:

ADVANCE PAYMENT - The OWNER shall pay to the CONTRACTOR an advance

payment equivalent to a percentage indicated in the Purchase Order of the
contract amount for the PROJECT from the issuance of the Notice to Proceed,
provided that no advance payment shall be paid unless the CONTRACTOR posts
the Surety Bond and Performance Bond. The advance payment shall be
recovered by deducting the respective percentage from the value of the invoice
of the billings until the advance payment has been fully recovered.

PROGRESS PAYMENTS - The CONTRACTOR will submit a progress billing based on

the percentage of completion of the Program of Works of the PROJECT, subject
to 10% retention.

The CONTRACTOR shall submit to the OWNER a progress billing with

accompanying accomplishment report with attachments of Weekly reports on
actual progress of Works, narrative summary, detailed project time schedule with
s-curve, colored photographs, weekly quality control report on the inspection
and test of all items of work and other reports which the OWNER may deem
relevant. The CONTRACTOR shall also attach an Affidavit that his payments to
payroll, suppliers and equipment rentals are current and up to date. The monthly
accomplishment report shall be approved by the OWNER’S authorized
representative, on the basis of which the OWNER shall make payment, arising
from the work accomplished and evaluated, less the amount of advance payment
and ten percent (10%) retention amount for each billing.

The OWNER shall have the right to withhold any payment from any
billing of the CONTRACTOR's work: (1) which are found to be defective, irregular
or otherwise unsatisfactory; or (2) with respect to which the CONTRACTOR failed
to make prompt and proper payment for labor, materials, or equipment.

Progress payment(s) will be paid within 60 days from the date of receipt
of the billing by Accounting.

RETENTION MONEY - Project Progress payments shall be subject to retention of

ten percent (10%) referred to as "Retention Money". Such retention shall be
based on the gross amount due the CONTRACTOR prior to any deduction and
shall be retained for every progress payment. The OWNER shall release the
Retention Money within one (1) year from the issuance of Final Acceptance
Certificate and upon receipt of, Contractor’s Sworn Statement, Notarized
Warranty Certificate, signed and sealed As-built Plan, Certificates and Permits by
the Local Government Agency and Test Certificate. These must be attached to
the billing of the retention money. In the event the CONTRACTOR will issue a
Warranty Bond, Retention Money can be claimed within ninety (90) days after
100% completion of WORKS.

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PARTIAL The OWNER may terminate the PROJECT or delete any WORKS at any stage
ACCOMPLISHMENTS without incurring any liability to the CONTRACTOR after giving fifteen (15) days
prior written notice. In such an event, CONTRACTOR shall be entitled only to the
WORKS actually accomplished. Payments for partial accomplishments of WORKS
shall be based on the Program of Works with Schedule of Unit Rates / Itemized
Cost Breakdown.
CHANGES IN WORKS The OWNER may order changes or revisions in the WORKS. In such eventuality,
the OWNER shall inform the CONTRACTOR in writing of such changes or
revisions. The CONTRACTOR shall not implement any change or revision without
an agreed and fully signed CHANGE ORDER from the OWNER.
ADDITIONAL WORKS - are WORKS required by the OWNER, which are not
covered in Article 2. In all cases, the costing of the additional WORKS shall not
exceed the unit rates indicated in Program of Works. Any consequential increase
in Contract Price including adjustment in the period of completion shall be
discussed and agreed by the parties and expressly approved by the OWNER in
writing.
ADJUSTMENT OF This is a lump sum contract hence, the CONTRACTOR shall not make any claim for
CONTRACT PRICE an increase in the PROJECT Contract Price for any reason whatsoever, including
but not limited to increase in the prices of materials or use of equipment due to
any cause whatsoever, such as but not limited to the enactment of laws and tax
measures, the difficulty of sourcing said materials and equipment, and increase in
the cost of labor and Peso-Dollar exchange rate.

However, the OWNER may order at any time in writing for revisions on Technical
Specification and Design, alterations by correction or deduction of works to be
commenced or being commenced by the CONTRACTOR. These orders shall be
supported by fully signed Change Order form and shall be carried out.

Any order to revise, alter, modify the works will remain invalid and will not be
allowed to request for claims unless supported by a written order from the
OWNER. Additional works ordered by the OWNER shall be assessed based on the
unit rates established at the CONTRACTOR’s final bid proposal.

Additional works ordered in writing by the OWNER shall be done by the

CONTRACTOR within seven (7) calendar days after receipt of the written order,
and without necessarily waiting for the evaluation of the quotation for the
additional works. Provided adjustment in price for such additional works shall be
mutually agreed upon.

Regardless of increase in materials and change in peso-dollar exchange rate, the

Contract Price shall not be subjected to any price escalation.

BILLING GUIDELINES The OWNER shall pay the CONTRACTOR the advance payment upon submission
of the Surety and Performance Bond.

Progress payment is the mode of payment that recompense CONTRACTORS for

their actual accomplishments as evaluated and endorsed by Construction
Management of the PROJECT.

The CONTRACTOR shall submit a Billing Statement to Construction

Manager for inspection and evaluation of actual progress of PROJECT.

After thorough evaluation and approval, the Billing Statement will then

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 be endorsed to Accounting for payment processing.

The following documents are required for processing of Progress Billing:

a. Letter Request for Payment which includes previous
billings and up to date cost subject for billing.
b. Bill of Quantity
c. Accomplishment Reports with attached pictures of
actual site progress

The Final Billing less the 10% retention shall only be processed for
payment if the CONTRACTOR submitted the Notarized Warranty Certificates, the
Guarantee Bond and Test Certificates, if applicable.
BONDS AND Timely delivery of the bonds and guarantees shall be a condition precedent to
GUARANTEES the CONTRACTOR’s right to receive the advance payment for the PROJECT that
has already issued Notice to Proceed. The CONTRACTOR, at its own cost, shall
arrange to secure the requisite bonds and guarantees from reputable insurance
company in form and substance acceptable to the OWNER.

SURETY BOND - Within fifteen days from issuance of Notice to Proceed,

the CONTRACTOR shall arrange to procure a Surety Bond, in an amount
equal to the advance payment of the Contract Price indicated in the
Purchase Order, with the OWNER as the beneficiary. This bond is to
secure the recovery of the advance payment in the event of pre-
termination or suspension of the works specified in the Purchase Order.

PERFORMANCE BOND - Within fifteen days from issuance of Notice to

Proceed, the CONTRACTOR shall arrange to procure a Performance Bond
in an amount equal to the advance payment of the Contract Price
indicated in the Purchase Order, with the OWNER as the beneficiary.
This bond is to guarantee that the CONTRACTOR shall accomplish the
WORKS stipulated in the Purchase Order and shall cover for whatever
charges that may be acquired by the OWNER for failure of the
CONTRACTOR to complete the WORKS. The term of this Performance
Bond shall be valid until PROJECT completion.

GUARANTEE BOND – The CONTRACTOR shall arrange to procure a

Guarantee Bond , in an amount equivalent to ten percent (10%) of the
Contract Price with the owner as beneficiary, and shall remain effective
during the Defects Liability Period, to guarantee the performance of the
obligations of the CONTRACTOR hereunder, to answer for any
construction defects and other flaws, any claims of suppliers and
laborers of the CONTRACTOR that may arise, and to insure the OWNER
against any other claim that it may have against the CONTRACTOR and
its subcontractors, among others, during the Defects Liability Period.
The posting of this bond shall be a pre-requisite to the release of the
Retention fee.

Notwithstanding the foregoing, the CONTRACTOR shall cause the renewal of the
foregoing bonds and/or extension of its validity to cover for the approved
contract time extensions without additional cost to the OWNER
ACCREDITED BONDING PRUDENTIAL GUARANTEE
COMPANIES Allyssa Balanzat (63) 917 8512050
allyssa.balanzat@prudentialguarantee.com

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 MALAYAN INSURANCE
Jun dela Paz (63) 927 6198390
junjundlp@yahoo.com

BPI/MS INSURANCE CORPORATION

Stanley Cheng (63) 917 8176789
sycheng.moc@gmail.com

MAA GENERAL
ASSURANCE PHILS., INC.
Stanley Cheng (63) 917 8176789
sycheng.moc@gmail.com

MAPFRE INSULAR
Faustino Barcelon, Jr. (63) 917 630 1955
faustinobarcelonjr@yahoo. com

PERMITS AND LICENSES The CONTRACTOR undertakes to obtain the necessary approval, permits and
licenses from the local authority or other statutory body concerned for the Works
as described herein. The OWNER shall provide all necessary documents needed
for this permit & licenses.
DELAYS AND PENALTIES It is understood and agreed that time is of the essence, and that in case the
CONTRACTOR fails to complete the WORKS within the stipulated time due to its
own fault, the CONTRACTOR shall pay the OWNER One-Tenth (1/10) of One
Percent of the Contract Price for each day of delay until completion of the
WORKS as liquidated damages.

NOTICE OF DELAY - The CONTRACTOR shall promptly report in writing

within two (2) days to the OWNER's authorized representative the occurrence of
any event or the existence of any condition which may delay or prevent the
untimely completion of the WORKS. Failure to submit said written report shall
not allow any request for extension of the work period.

If the OWNER perceives that a delay may be incurred in the WORKS, it

will advise in writing the CONTRACTOR to, within seven (7) days, remove the
cause of delay. The OWNER may assist the CONTRACTOR in the removal of the
delay or if the CONTRACTOR is unable or unwilling to remove such delay, then
the OWNER may take over the remaining WORKS with all costs chargeable to the
CONTRACTOR plus twenty percent (20%) as on cost.

If the CONTRACTOR incurs a slippage of at least five percent (5%) with

respect to the approved Detailed Project Time Schedule, then it shall submit a
Recovery Schedule. If the Slippage continues to increase to ten percent (10%), or
if the CONTRACTOR cannot recover from the slippage in the OWNER’s sole
assessment, then the OWNER has the option to terminate the AGREEMENT,
without prejudice to its right to call on the Performance Bond.

If the CONTRACTOR abandoned its obligations for five (5) consecutive

days or accumulated of 15 days in a month, without liability on the part of SAMC,
the CONTRACTOR shall pay 25% of the Total Contract Price and cost adjustment,
if any, by way of Liquidated Damage.

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TIME EXTENSION The WORKS shall be completed within the period of time as indicated in the
Purchase Order subject to any time extension duly granted by the OWNER. The
CONTRACTOR may claim an extension of the time for Completion if it determines
delay in completing the WORKS by any of the following causes:

Changes in the WORKS or Program of Works due to Change Order by the

OWNER;

Delays due to force majeure or fortuitous events such as fires, floods,

droughts, earthquakes, typhoons, epidemics or unavoidable calamity;

Act of any governmental authority, domestic or foreign, such as war,

priorities, quarantines, embargoes, licensing controls on production or
distribution restriction;

In the event that there is work stoppage declared in formal writing by

Safety Officer due to unavoidable circumstances of bad weather.
Nonetheless, CONTRACTOR shall ensure the project area will be
provided with necessary safety measure to prevent accidents while
there is stoppage of work.

In general, by other causes or events beyond the reasonable control of

the CONTRACTOR or by any act, neglect, delay or default on the part of
the OWNER.

In case of a Force Majeure status lasting for more than thirty (30) days, the
CONTRACTOR and the OWNER will meet to reach proper agreements taking into
account the existing situation. The CONTRACTOR shall endeavor to continue to
perform his obligations so far as reasonably practicable. The CONTRACTOR shall
notify the OWNER of the steps it proposes to take, including any reasonable
alternative means for performance, which is not prevented by Force Majeure.
The CONTRACTOR shall not take any such steps unless directed so by the
OWNER.

It remains understood that "rainfall" or "bad weather conditions" shall not be

made a basis for time extension since the same are inherent in the seasonal
variation of the climatology of the country.

It is the obligation of the CONTRACTOR to notify the OWNER in writing of any

event that would cause or have caused the delay in the performance of its
obligations, within two (2) days after occurrence of such event. The notice for
claim for time extension shall be made with full supporting details.

Failure of the CONTRACTOR to notify the OWNER of any event that causes delay
within the two (2) day period as given in Article 12.2 shall be deemed a waiver on
its part to claim that such an event is one that may constitute permissible delay.

The OWNER shall, after due consideration of all the facts, and provided that the
CONTRACTOR has submitted its claim according to the foregoing, grant the
CONTRACTOR from time to time, either prospectively or retrospectively, such
extension of time for completion as may in its opinion be justified.

It does not follow that any delaying event would automatically entitle the

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 Contractor to an extension of time. The Contractor is required to demonstrate
that the event has a direct impact on the project completion date. For this
purpose, the Detailed Project Time Schedule is required to be produced using the
Critical Path Method in Microsoft Project or Primavera format. The OWNER shall
have the right to withhold payment if the Contractor is unable to provide the
Detailed Project Time schedule or the progress updates in the required format.
TERMINATION OF THE The OWNER shall have the sole discretion to terminate the Contract for default
AGREEMENT when any of the following conditions attend its implementation:

Due to the CONTRACTOR’s fault and while the project

is on-going, it has incurred slippage of ten percent (10%) or more,
regardless of whether or not previous warnings and notices have been
issued for the CONTRACTOR to improve his performance;

If the CONTRACTOR incurs delay in the completion of

the Work based on agreed milestone or approved Detailed Project Time
Schedule;

If the CONTRACTOR fails to perform or breaches any of

its material obligations under this Contract.

If the CONTRACTOR does not actually have on the

project site, the minimum essential equipment necessary to prosecute
the Works in accordance with the approved Program of Work and
equipment deployment schedule as required for the project;

If the CONTRACTOR does not execute the Works in

accordance with this Contract or persistently or flagrantly neglects to
carry out its obligations under this Contract;

If the CONTRACTOR neglects or refuses to remove

materials or to perform a new Work that has been rejected as defective
or unsuitable;

If the CONTRACTOR sub-lets any part of this Contract

without written approval by the OWNER.

If the CONTRACTOR is declared bankrupt or insolvent

as determined with finality by a court of competent jurisdiction. In this
event, termination will be without compensation to the CONTRACTOR,
provided that such termination will not prejudice or affect any right of
action or remedy which has accrued or will accrue thereafter to the
OWNER and/or the CONTRACTOR. In the case of the CONTRACTOR's
insolvency, any CONTRACTOR's Equipment which the OWNER instructs
in the notice is to be used until the completion of the Works;

If the CONTRACTOR abandons the contract o r

Works, refuses or fails to comply with a valid instruction of the
OWNER or fails to proceed expeditiously and without delay despite a
written notice by the OWNER.
In the event of any change in the CONTRACTOR’S
directors and stockholders and their respective joint and solidary
guaranty pursuant to Clause 25.4 of this Agreement.

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 In any event and for any reason whatsoever, the OWNER may terminate, in
whole or in part, without incurring any liability to the CONTRACTOR, by giving a
written notice at least fifteen (15) calendar day before the effective date to the
CONTRACTOR.

The AGREEMENT may be terminated by the CONTRACTOR only under

the following circumstances:

If there be a situation or event beyond the reasonable control

of the CONTRACTOR that make it impossible to carry out the obligations
under the AGREEMENT. Upon confirmation in writing by the OWNER of
the existence of any such situation or event, the CONTRACTOR may
terminate the AGREEMENT by giving the OWNER at least thirty (30)-day
written notice.

If the AGREEMENT is terminated due to the fault of the

CONTRACTOR, the CONTRACTOR shall be liable to pay liquidated
damages in the amount equivalent to the advance payment on the
balance of the terminated contract plus 20% of the said balance.

TAKE OVER - The OWNER may, without prejudice to any other rights and redress
it may have against the CONTRACTOR, immediately take over or take possession
of the Works for any of the causes stated therein, including all tools and
equipment and finish the Works by whatever method may be deemed expedient.
The amount of Take-over works shall be on the expense of the Contractor and
shall be charged on the next approved billing.

EFFECTS OF The OWNER may expel the CONTRACTOR from the Project site. Any such
TERMINATION expulsion and termination shall be without prejudice to any other rights or
powers of the OWNER.

The OWNER may complete the WORKS themselves or by any

other contractor. The OWNER or its authorized representative, or such
other contractor may use for such completion any CONTRACTOR’s
equipment at site as he or they may think proper and the CONTRACTOR
may charge a fair price for such use, subject to the OWNER’s approval.

The CONTRACTOR shall be entitled to receive payment for

works actually accomplished. Moreover, the CONTRACTOR, except on
work stoppage ordered by the OWNER, shall be liable for the excess cost
incurred by the OWNER in the completion of the related work thereat.
This liability shall be separate from and in addition to the liquidated
damages. If the unpaid balance on the contract price at the time of such
termination exceeds the expense of finishing the WORKS due to
required additional works to finish the work package, the OWNER shall
pay such excess to the CONTRACTOR. If the expense of finishing the
WORKS exceeds the unpaid balance at the time of termination,
CONTRACTOR agrees to pay the difference to the OWNER or claim
against its Performance Bond.

Upon receipt of notice of termination, the CONTRACTOR shall take immediate

steps to bring the WORKS to a close, in a prompt and orderly manner, and to

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 reduce WORKS related expenditures to a minimum. The CONTRACTOR shall
submit within seven (7) days from receipt of Notice of Termination a certification
of the value of the WORKS to the OWNER for evaluation and approval.

ANNEX 1
(This declaration is to be made out on the Bidder's Company letter)

______________
______________
______________

Subject Declaration of Site Visit and Inspection

Dear Sir,

We, _________________________ hereby declare that we have visited the Site and inspected/ reviewed
all details of the Project Site, the nature of the ground, geotechnical investigation report, topographic survey
report and we declare furthermore that the Site is free of obstacles, surface obstructions and we have no
queries on any matter with the prevailing site conditions.

Therefore, we shall have no right to any claims in respect of the above mentioned, in the future whether
during the execution or after completion of the Works, should this Project be awarded to our Company.

In confirmation of the above, we append hereunder the signature of our authorized representative.

Very truly yours,

For and on behalf of [Insert Name of Company]

[Insert Name of Authorized Representative]

Signature: ____________________________________________

Date: ____________________________________________

SteelAsia Head Office: 2/F Building 2, Bonifacio High Street, Bonifacio Global City, Taguig City 1634
Tel: (02) 856-6888 • Fax: (02) 858-0585