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COMMENTS ON THE MEMORANDUM OF AGREEMENT (MOA) BETWEEN

BUILDING UNFIFIED COMMUNITIES THROUGH INCLUSIVE LEADERSHIP AND


DEVELOPMENT (BUILD), INC AND JFR CONSTRUCTION

1. At the onset the MOA failed to clearly specify the project/s awarded and to be undertaken
by the SECOND PARTY. As can be seen from the whereas provisons of the said MOA,
the FIRST PARTY is the one to undertake the building of the 1,244 housing units while
the SECOND PARTY will undertake the land development 97,428.00 sq.m. in Brgy.
Aguado, Trece Martires, Cavite.
“xxxWHEREAS, the FIRST PARTY, is competent, qualified, willing to implement and
develop the above mentioned project with an aggregate area for approximately ONE
THOUSAND TWO HUNDRED TWENTY FOUR (1,244) Housing Units with an
average floor area of 20 Square Meters , more or less, with provision of loft per
housing unit, complete with roads, drainage, waterline, etc., as specified in the
development plan;

NOW, THEREFORE, for and in consideration of the foregoing premises and the
mutual covenant herein contained, the SECOND PARTY has agreed to do the master
plan, design, develop and construct the property with an aggregate area of NINETY
SEVEN THOUSAND FOUR HUNDRED TWENTY EIGHT (97,428) SQUARE
METERS located at Brgy. Aguado, Trece Martirez, Cavite, as relocation site of the
COMMUNITY ASSOCIATION. xxx”

However the terms and conditions provisions of the MOA states that the SECOND
PARTY will be the one to undertake the said projects.

“xxx FIRST PARTY, being the Financier of the Project, stands to be the Managing
Director of the above project, and awards the contract of the said Project as described
below:

SANDIGAN AT KALINGA HOMEOWNERS ASSOCIATION, INC.-CAVITE


CHAPTER

a. BUILDING
PROJECT LOCATION : Brgy. Aguado, Trece Martires, Cavite
PROJECT DESCRIPTION : ROW HOUSES WITH PROVISION OF LOFT
NO. OF UNITS : 1,244 UNITS
NO. OF BUILDINGS/BLOCKS:
PROJECT COSTS : PhP 121,805,401.92 M

b. LAND DEVELOPMENT
PROJECT LOCATION : Brgy. Aguado, Trece Martires, Cavite
PROJECT DESCRIPTION : ROW HOUSES WITH PROVISION OF LOFT
AREA : 97,428.00 sq.m.
PROJECT COSTS : PhP 35,074,080.00 M

TOTAL CONTRACT COST : PhP 186,600,000.00M


1. SECOND PARTY shall faithfully implement the awarded projects in compliance
with the approved plans and project specifications, and shall likewise, not do any act
detrimental prejudicial to the good name of the FIRST PARTY. xxx”

Apparently there is no clear statement in the MOA of what project or projects, whether it be only
just for land development or for building the housing units or both that the SECOND PARTY
will undertake under it.

2. As to Number One (1) of the terms and conditions of the MOA, it states that “until all
proceeds and/or receivables relative thereto, including change orders if any, and the
retention or any contingency among others have been completely and finally
collected”.

(1. Duration of the Agreement – This Agreement shall be from the date of signing of
this MOA until the awarded projects, as stated below, are completely finished and
accepted by the Owner or Procuring Entity (Beneficiaries) and until all proceeds and/or
receivables relative thereto, including change orders if any, and the retention or any
contingency among others have been completely and finally collected )

 What does the words proceeds and/or receivables, change orders retention or any
contingency means?
 Will the quoted phares means that the duration of the project has no specific date of
completion?
 And it can extend up to the agreed days for the completion of the project which is 360
days?

3. Do you agree to the payment agreement?


FIRST PARTY shall pay the SECOND PARTY the amount of ONE HUNDRED
TWENTY ONE THOUSAND EIGHT HUNDRED FIVE AND 40/100
(Php121,805.40) PESOS per UNIT for housing construction and THREE HUNDRED
SIXTY (PhP 360.00) PESOS per SQ.M. for land development works. which shall be
paid in the following manner and terms:

a. 15% Mobilization fee


b. Monthly progress billing

4. Do you agree with the duration period for the completion of the project (Number 7 of the
Terms and conditions)?

(7. Deliver the project within THREE HUNDRED SIXTY (360) CALENDAR DAYS
according to the project flow chart immediately after release of mobilization fund. In
the event that the completion of the project is delayed due to SECOND PARTY’s
negligence, the FIRST PARTY shall have the right to hold the collectibles and
equipment mobilized for the project by the SECOND PARTY.)

5. There is no statement in the MOA regarding any penalty if the delay in the completion of
the project was caused by the FIRST PARTY. It will be just if a penalty provision will be
provided in case of any act committed by the FIRST PARTY that will delay or prevent
the completion of the project/s.

6. There is also no statement in the MOA of any downpayment or any sort of payment to be
paid by the FIRST PARTY to the SECOND party upon the start of the project/s, although
there is a provision requiring the SECOND PARTY to provide for a bond before the start
of the project/s.

In the spirit of fairness, it will be both beneficial for the parties if the same courtesy will
be extended to the SECOND PARTY. Considering also that all material, equipment and
labor cost will be borne by the SECOND PARTY.

7. Lastly as to the last paragraph on the terms and condition provisions, Number 15 which
provides:
“ In the event that the completion of the project or the performance of
the obligations of the Parties herein becomes impossible or delayed due
to fire, earthquake or other natural elements or calamities, acts of God,
war, civil disturbances, government and economic control, the provision
of this section 8 shall be controlling;”

May it be requested to be added that if the cause of the delay or impossibility of the
completion of the project be a fortuitous event, an act of God, war, civil disturbances,
earthquake or other natural elements or calamities government and economic control that
the expenses or cost already attributed to the project be borne equally by both parties.

And that if the delay or impossibility is caused by one of the parties, then the said party
will be solely responsible for the cost and expenses and also for other damages that the
innocent party may suffer.