October 1, 2018

ATTY. JUAN DELA CRUZ

& ASSOCIATES
ATTORNEYS-AT-LAW
Makati City

SUBJECT: Demand Letter dated September 18, 2018

addressed to:
XXX BUILDERS
Quezon City

Greetings:

This refers to the above-mentioned Demand Letter.

I am writing in behalf of my client, XXX Builders, represented by Mr. xxx, Mr. yyy, and
Mr. kkk.

My client, XXX Builders, acknowledges that there was indeed a loan given to my client
by your client, Mr. bbb. The first loan amounting to Five Hundred Fifty-Seven Thousand Four
Hundred Twenty (Php557,420.00), due on April 17, 2018 and the second loan amounting to Two
Hundred Sixty-Eight Thousand Five Hundred (Php268,500.00), due on May 22, 2018. Hence, a
total amount of Eight Hundred Twenty-Five Thousand Nine Hundred Twenty Pesos
(Php825,920.00).

My client respectfully denies that the remaining unpaid obligation amounts to Seven
Hundred Fourteen Thousand Eight Hundred Fifty-Four and 55/100 (Php714,854.55). XXX
Builders already paid your client on July 2018 an amount of Two Hundred Thousand Pesos
(Php200,000.00) and on August 2018, an amount of One Hundred Thousand Pesos
(Php100,000.00). That would be a total amount of Three Hundred Thousand Pesos
(Php300,000.00) as payment, leaving my client with an outstanding unpaid obligation amounting
to Five Hundred Twenty-Five Thousand Nine Hundred Twenty Pesos (Php525,920.00).

Furthermore, my client would like to make it clear that the aforementioned loan was
executed to re-finance the construction of the project of a 4-storey residential boarding house with
penthouse situated at Village, Quezon City, due to the extraordinary price surge of construction
materials, and not because my client misappropriated the funds for the same.

The actual total construction cost of the said project is Twenty-One Million Four Hundred
Ninety-Eight Thousand Three Hundred Fifty-One Pesos (Php21,498,351.00). The costs as
stipulated in the Construction Contract, amounting to Sixteen Million Eight Hundred Thousand
Pesos (Php16,800,000.00), and in the Variation Orders, amounting to One Million Three Hundred
Sixty Thousand Two Hundred Forty-Nine (Php1,360,249.00), are considerably lower than the
actual total construction cost. Hence, my client’s total losses from this project amounts to Three
Million Three Hundred Thirty-Eight Thousand One Hundred Two Pesos (Php3,338,102.00).
Notwithstanding the losses incurred, XXX Builders did their best to finish the said project and
satisfy your client.

Please understand that my client is still recuperating from the said losses and will not be
able to pay the said outstanding balance immediately due to unavailability of funds.

Moreover, XXX Builders still has Retention Money equivalent to five percent (5%) of the
Contract Price which must be paid to them by your client, Mr. bbb, one (1) year upon turnover of
the project. The Retention Money amounts to Eight Hundred Forty Thousand Pesos
(Php840,000.00) since it is the five percent (5%) equivalent of the Contract Price amounting to
Sixteen Million Eight Hundred Thousand Pesos (Php16,800,000.00).
 The actual date of completion or turnover of the project with reference to the Original
Construction Contract, including the Variation Orders, was on February 24, 2018. Thus, the
aforesaid Retention Money will be due on February 24, 2019, and must be paid by your client to
my client on the said date.

For the time being, my client understands that, per Loan Agreements dated December 28,
2017 and April 27, 2018, the unpaid outstanding obligations shall be subject to a penalty/interest
equivalent to twenty-four percent (24%) per annum of the total amount due computed from the
time the unpaid obligations become due and demandable, until fully paid. The loans are also
secured with the following collaterals: A Toyota Wigo 2018 model with conduction sticker number
**** which remains up to this date, in the possession of your client, and an Isuzu Elf Truck with
plate number ******.

Rest assured, my client has no intention to abscond from their obligation but working their
way to settle the same.

Premises considered, my client, XXX Builders, hereby requests that a special conference
be held between the parties and their lawyers to AMICABLY SETTLE this controversy without
unnecessary litigation.

You may contact me or Mr. xxx on his mobile number, 0917-0000-000, to discuss the
details of the requested special conference, if one is agreed to by your client.

Meanwhile, it is further requested with your utmost consideration that your law office defer
any unnecessary judicial and other legal actions, pending negotiations between the parties and their
lawyers.

Thank you very much.

Sincerely yours,

ATTY. ZZZ
Santa Barbara, Pangasinan
Email Address: attyzzz@gmail.com
Mobile no.: 0916000000