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
PACIFIC GRAND VILLAS

Gentlemen:
We would like to inform you that the PHILIPPINE ESTATES CORPORATION (OWNER) awarded the
Landscaping Works & Signage 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).
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 to the following terms and conditions:
1.0Construction shall commence on August 31, 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 & signage as per plan and specifications,
2.6Supply and planting of Bermuda grass 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 PESOS
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

4.0The balance shall be paid through progress billing, as agreed which shall be payable upon
submission of the Contractors Letter Request, Contractors Breakdown of Accomplishment
and Project Pictures as progress billing requirements. Schedule of releases (as presented) for

the progress payments shall vary depending on the actual accomplishment of the Project.
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 and plants 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.

Very truly yours,

PHILIPPINE ESTATES CORPORATION

ELVIRA A. TING
President & CEO

Conforme:
MACTAN PLANTS NURSERY

NENITA B. BASTONERO
General Manager