CONTRACT AGREEMENT TO FABRICATE, DELIVER, INSTALL AND

COMMISSION TWO (2) UNITS OF MOBILE DECORTICATING MACHINE AND

ONE (1) UNIT ROTATING SCREEN FOR NATIONAL HOUSING AUTHORITY
FOR [NAME OF PROJECT]
KNOW ALL MEN BY THESE PRESENTS:
This AGREEMENT executed this ____ day of November, 2014 by and between:
NATIONAL HOUSING AUTHORITY, a government owned
and
controlled
corporation created and existing under P.D. 757, as amended, with office address at
Diliman, Quezon City and herein represented by its General Manager, ATTY.
CHITO M. CRUZ, herein referred to as the PROCURING ENTITY;
-andPHILIPPINE COCONUT AUTHORITY ZAMBOANGA RESEARCH CENTER,
a government owned and controlled corporation created and existing under P.D.
1468, as amended, with office address at San Ramon, Zamboanga City, herein
represented by its Senior SRS/ OIC-Non-Food Products Development Division, DR.
NEIL J. MELENCION, herein referred to as the SUPPLIER;
WITNESSETH that
WHEREAS, the National Housing Authority is currently implementing [name of project]
which aims to [project objectives];
WHEREAS, PCA-ZRC is the sole government agency mandated by law to generate
technologies on coconut palm products and farm waste utilization to include coconut
novelties processing machines and coconut biomass primary processing equipment;
WHEREAS, the PROCURING ENTITY aims to accelerate the distribution of the
machineries and equipment for the three (3) KEDP sites in Region VII and has hired the
SUPPLIER to fabricate, deliver, install and commission two (2) units decorticating machine
and one (1) unit rotating screen to SIX HUNDRED TWENTY-FIVE THOUSAND PESOS
ONLY (PhP 625,000.00) herein after called the Contract Price;
NOW THEREFORE, premises considered, the parties hereto have mutually agreed as
follows:
1. That in this agreement, words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of the Contract referred to;
2. That the freight and transport which will be incurred in the delivery of the fabricated
items mentioned herein will be shouldered by the SUPPLIER;

Page 1 of 3

3. That the SUPPLIER agrees to fabricate, install and commission the named items within
ninety (90) days after the completion of the signing of this contract;
4. That the SUPPLIER shall repair at their expense any defect/s, or damage/s to the items
fabricated, supplied and delivered to the PROCURING ENTITYs respective KEDP
sites.
5. That the SUPPLIER agrees to provide one (1) year service guarantee after the items had
been fabricated, supplied and delivered to the PROCURING ENTITYs respective KEDP
sites.
6. That in cognizant to Annex D of the Revised IRR of R.A. 9184, Item No. 4 on Advance
payment, and Memorandum Order No. 15, series of 2011 by the President of the
Philippines, let it be known that upon, submission of an irrevocable letter of bank
guarantee, the PROCURING ENTITY should agree to pay the SUPPLIER 15% of the
total project cost upon the perfection of this contract as mobilization cost to start the
fabrication of the items herein agreed upon; another 40% second tranche is mobilization
cost for the fabrication and transport; 35% payment will be made upon submission of a
progress billing of the contracted items, and the remaining 10% will be made upon
delivery and installation, testing and commissioning of all machineries and equipment
fabricated and agreed upon herewith;
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in
accordance with the laws of the Republic of the Philippines on the day and year first above
written.

NATIONAL HOUSING AUTHORITY

PHILLIPPINE COCONUT AUTHORITY

ZAMBOANGA RESEARCH CENTER

by:

by:

ATTY. CHITO M. CRUZ

General Manager

NEIL J. MELENCION, PhD.

Sr. Science Research Specialist/
OIC-Division Chief III, NFPDD

SIGNED IN THE PRESENCE OF:

[name of witness]
[position of witness]

[name of witness]
[position of witness]

Page 2 of 3

ACKNOWLEDGEMENT
Republic of the Philippines
CITY OF QUEZON........) S.S.

BEFORE ME, a Notary Public, for and in the City of Quezon, Philippines, personally
appeared the following:
ATTY. CHITO M. CRUZ
Comm. Res. Cert. No.
Issued on
Issued at
DR. NEIL J. MELENCION
Comm. Res. Cert. No. _______
Issued on
____________
Issued at
____________

All known to me and to me known to be the same persons who executed the foregoing
CONTRACT AGREEMENT, and they acknowledge to me that same are their free and
voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and the place found in the first page of the
Contract (this contract consists of 3 pages including this page).

Doc. No.
Page No.
Book No.
Series of 2014

Page 3 of 3