CONTRACT OF JANITORIAL AND CLERICAL SERVICES

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACTentered into by and between:

The EMPLOYEES' COMPENSATION COMMISSION (ECC) an attachedagency of the Department of Labor and Employment duly created by virtueof PD No. 626, as amended, as represented by its OIC- Executive DirectorSTELLA ZIPAGAN-BANAWIS, with office address at 355 Sen. Gil PuyatAvenue, Makati City, and hereinafter referred to as the ECC;

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The LBP SERVICE CORPORATION, a private corporation dulyorganized and existing in accordance with the Philippine laws, withprincipal address at Units C & D, zi= Floor, Petron Mega Plaza Building, 358Sen. Gil Puyat Avenue, Makati City, as represented herein by its President,MS ROSEMARIE P. LEVISTE, hereinafter referred to as the SERVICEAGENCY.

WITNESSETH:

WHEREAS, the ECC desires to engage the SERVICEAGENCY to provide for theclerical, maintenance, sanitation, cleaning and other janitorial works for its buildingand its surrounding premises;

WHEREAS, the SERVICE AGENCY is duly licensed to and is engaged in thebusiness of rendering cleaning, janitorial maintenance, sanitation and clerical servicesand has offered such services unto the ECC;

WHEREAS, the ECC, through Board Resolution No. 12-10-22 dated October 29,2012 has accepted and agreed to the offer of the SERVICEAGENCY;

NOW, THEREFORE, in consideration of the foregoing premises and of themutual covenants and stipulations herein set-forth, the parties hereto have agreedand do hereby agree, as follows;

1. That the SERVICEAGENCY shall provide sanitation, maintenance, janitorial andclerical services to the ECC;

2. That the services to be provided by the SERVICEAGENCY to the CLIENT shallconsist of the following and shall be in strict conformance to the specificationsindicated below:

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2. 1. JANITORIAL PERSONNEL

A. DAILY ROUTINE OPERATIONS

1. Sweeping, mopping, spot scrubbing, waxing and polishing of all floors. Allassigned areas shall be serviced continuously during office hours toguarantee cleanliness;

2. Vacuuming of all carpeted areas (if applicable);

3. Dusting, damp-mopping and polishing of furniture;

4. Cleaning, sanitizing of toilets and washrooms, which include the constantuse of special cleaning and sanitizing solutions in basins and toilets bowls;

5. Dusting, and cleaning of office equipment surfaces, book shelves, cabinetsand furniture, glass tops, inside windows, window edges, air vents,partitions, sidings and inside walls;

6. Emptying and cleaning of waste baskets/containers and disposing ofgarbage to designated areas;

7. Disposal of trash, rubbish and garbage from the building to receptaclesprovided for this purpose;

8. Watering of indoor and outdoor plants;

9. Washing of cups, saucers, spoons and other office utensils;

10. Cleaning of telephones;

11. Cleaning of all horizontal and vertical surfaces such as floors, ramps,walls, windows, windows ledges, railing doors, ceiling, etc;

12. Sweeping, scrubbing and mopping of stairways;

13. Checking and replenishing of toilet paper and other disposable supplies forthe comfort rooms;

14. Cleaning of elevators;

15. Sweeping of driveways, premises of buildings and parking areas;

16. Reporting to the Building Administration Office any busted bulbs, lampsand any damaged equipment, leaking faucet, etc.;

17. Waxing-off, re-waxing and scrubbing of floors;

18. Performance of other related task that may be directed by the Eec.

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B. WEEKLY PERIODICOPERATIONS

1. General cleaning of all types of floors;

2. General vacuuming and shampooing of all carpeted areas, (if any);

3. Damp-wiping and cleaning of all air-con exhaust griff and vents;

4. General cleaning of doorknobs, glass partitions and light diffusers;

5. General cleaning and disinfecting of toilet bowls, urinal bowls, andlavatory;

6. Dusting of light fixtures suspended from the ceiling;

7. Thorough cleaning of all walls, ceilings, partitions and other verticalsurfaces;

8. General cleaning of all interior glass walls/windows;

9. Washing of inside glass windows and doors;

10. General cleaning and all standing ash trays and trash cans;

11.General cleaning of Board Room and Multi-Purpose Hall;

12. Cleaning, waxing and polishing of office furniture and fixtures, counters,etc. but not including items of equipment that require specializedmaintenance;

13.Taking out of indoor plants for sunlight exposure;

14.Weeding and trimming of the lawn;

15. All other related activities that may be assigned by the ECC.

C. MISCELLANEOUSSERVICES

1. Rendering of assistance in the undertaking of necessary repairs, re-varnishing, re-painting, construction or improvement of shelves and otherfurniture or renovations;

2. Hauling of office furniture and equipment within the premises;

3. Reporting of repairs needed as well as leaking pipes and faucets;

4. Cleaning and de-clogging of terrace, gutters;

5. External washing of official vehicles registered with the ECC; Provided that,any janitorial personnel are not authorized to drive any of the ECC-ownedvehicles in undertaking the car washing services;

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6. Rendering of assistance during special occasions such as Labor Day,Founding Anniversary, in-house and out of town seminars and other client-sponsored activities;

7. Installation and removal of banners or billboards during such specialoccasions or if necessary;

8. Messengerial services as may be authorized by the ECC.

2.2. CLERICAL PERSONNEL

1. Assistance in repair and maintenance of IT equipment;

2. Participation in any ECC-sponsored activities subject to authorization fromthe Executive Director;

3. Performance of paper works in any Division that would be assigned to theclerical personnel;

4. Performance of related task that may be assigned from time to time.

3. In order to carry out the maintenance, janitorial and sanitation services, theSERVICEAGENCY shall furnish its personnel with the following equipment:

a. 3 units Heavy duty Floor Polisherb. 1 unit Vacuum Cleaner, Wet & Dry /

c. 2 units Mop squeezersd. 1 set Garden Hosee. 2 units Garbage cart

Likewise, the SERVICE AGENCY shall furnish its personnel, through theProperty & Supply Section, the following supplies and materials for free for theentire duration of the contract:

MONTHLYMaterials/Supplies Qty. Unit

Traffic grade wax 4 gals.Powder, soap 1 galPranela rugs 2 dozPlastic garbage bag XL 100 pcsMuriatic acid 1 galZonrox 2 galsToilet bowl cleaner 2 galsPowder soap 10 kilosSafeguard soap, small 15 pcsCleanser (all purpose) 4 kilosGlass cleaner 1 galFurniture polish 1 galScotch brite 2 dozScotch brite with foam 2 dozDeodorant cake. 4 doz

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Scotch brite with foam 10 pcsDishwashing paste 6 pcsSteel wool 10 reamsTissue paper 30 rollsliquid hand soap 2 galsAlcohol, big 6 bottlesBaygon 4 cansMop head 10 pcsPledge 3 cansAir-freshener 4 galsGlo metal polish 2 pcs

QUARTERLYDoormat 5 pcs.Stick broom 3 pcsHand brush 3 pcs.Soft broom 5 pcs.Polishing pad 3 pcs.Scrubbing pad 3 pcs.Wax Off 3 galsK2 Crystalizer 1 gal

ANNUALLYMop handle 12 pcsDustpan plastic 10 pcsPlastic pail 5 pcsDipper (tabo) 10 pcsToilet bowl pump 4 pcsToilet Bowl brush 5 pcsPush brush 12" nylon 3 pcsSpray gun 10 pcsGlass squegee 2 pcs

All equipment, supplies and materials of the SERVICE AGENCY shall be turnedover to the Administrative Division-Property & Supply Section formonitoring/safekeeping based on the abovementioned schedule subject toinspection by the Property and Supply Section representative;

In the event that the SERVICE AGENCY failed to provide any of the said itemswithin the prescribed period, the ECC may purchase the same and its amountshall be subject to deduction from the next monthly billing of the SERVICEAGENCY.

The ECC reserves the right to lessen or increase the quantity of theabovementioned equipment, supplies and materials.

4. That the ECC shall provide a space where the equipment and materials of the /SERVICE AGENCY shall be stored. The ECC, through its Property and SupplySection, may inspect the same at anytime through its duly authorizedrepresentative;

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5. For the performance of the foregoing maintenance and sanitation job, theSERVICE AGENCY shall furnish the ECC with healthy, reliable, honest,professionally trained and carefully selected personnel who have the necessaryadequate Medical (including drugs test), NBIand Police Clearance composed of

ten (10) janitorial personnel who shall render their duties eight (8) hours a day,six (6) days a week, from Monday to Saturday except Sunday and holiday. TheSERVICE AGENCY shall furnish the CLIENT copies of said clearances upondeployment of janitors;

The SERVICEAGENCY shall also assign four (4) reliable, trained, honest and V'

healthy clerical personnel at the ECC;

That the ECC, however, may, depending on the requirements of the services,direct the SERVICEAGENCYto increase or decrease the number of janitorial orclerical personnel, provided that due written notice thereof is served upon theSERVICEAGENCY, in which case corresponding or proportionate adjustment inthe payment thereof shall be made by the ECC;

The ECC may request for the relief and/or replacement of any janitorial orclerical personnel at any time;

6. The SERVICE AGENCY shall provide its janitorial personnel with properuniforms and Identification Cards which shall be worn at all times for properidentification;

7. The SERVICEAGENCY shall provide relievers and/or replacements at all timesin case of absence of its personnel. The ECCshall be duly informed in writingof any replacement. Overtime work rendered by janitorial personnel duringDOLE and/or ECC special occasion such as jobs fairs, anniversaries and otherspecial events shall be subject to prior authorization by the Executive Directorand to the availability of funds;

8. The janitorial supervisor of the SERVICEAGENCY shall receive instructionsregularly from the representative of the Admin Division of the ECC;

9. The janitorial and clerical personnel of the SERVICEAGENCY shall personallypunch-in and out his/her own daily time card. The absences and undertime tobe incurred by any of them shall be deducted from the monthly payment ofservices rendered pursuant to the provisions of this Contract directly inproportion to the agreed contract rate;

10. Subject to the pertinent provisions of the Civil Code, the SERVICEAGENCYshall be held liable for all losses and/or damages to properties of the ECCcaused by or arising out of the performance of its services through negligence,dishonesty, inefficiency and/or such other faults of its janitorial and clericalpersonnel including those which shall be suffered by the tenants in the ECCBldg. It is expressly understood, however, that the SERVICEAGENCYshall notbe liable for losses and/or damages incurred by the ECC due to fortuitousevents except when the personnel of the SERVICE AGENCY commit actsinimical to the ECCduring fortuitous events;

11. There shall be no employee-employer relationship between the ECC and thepersonnel of the SERVICEAGENCY;

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12. For and in consideration of the above mentioned services, the ECC agrees topay the SERVICEAGENCY the sum of:

SEVENTEEN THOUSAND ONE HUNDRED SEVENTY EIGHT PESOS AND 26/100(P17, 178.269) for each janitor or a total sum of ONE HUNDRED SEVENTY ONETHOUSAND SEVEN HUNDRED EIGHTY TWO PESOSAND 60/100 (P171,782.60)for ten (10) janitors and FOURTEEN THOUSAND THREE HUNDRED FIFTY FOURPESOSAND 27/100 (P14,354.27) for each clerk or a total sum of FIFTY SEVENTHOUSAND FOUR HUNDRED SEVENTEEN PESOSAND 08/100 (P57,417.08) four(4) clerks every month by way of compensation for the services covered by thiscontract, payable within the first five days upon receipt of the billing ofSERVICEAGENCY every fifteen and end of the month;

13. The SERVICE AGENCY shall furnish the ECC with a Surety Bond callable upondemand equivalent to thirty percent (30%) of the total contract price for ten(10) janitors and four (4) clerical personnel, said bond to be issued by the vGovernment Service Insurance System (GSIS) or other Surety Institutions dulyaccredited by the Insurance Commission;

It is understood that the amount of THIRTEEN THOUSAND NINE HUNDREDSEVENTY PESOS AND 08/100 (P13,970.08) per month effective November 1,2012 which is to be paid directly to each janitorial personnel and ELEVENTHOUSAND SIX HUNDRED SEVENTY THREE PESOS AND 95/100 (P11,673.95)per month effective November 1, 2012 which is to be paid directly to eachclerk per the cost breakdown of the SERVICE AGENCY be strictly carried outwithout deduction or qualification, except for absences and authorizeddeductions under the Labor Code such as but not limited to remittances for SSSPremium, Philhealth, Pag-ibig, and ECcontribution;

14. Upon submission of the bill, the SERVICEAGENCY shall submit to the ECC thefollowing documents:

a. Evidence of actual rendition of service attaching thereto the daily timecards of its janitorial and clerical personnel;

b. Sworn Certification that it has no unpaid salaries or wages for servicesrendered by its personnel and that it has complied with the provisions ofexisting labor laws and social security legislations;

c. Certified true copy of payroll of the last payday in case of subsequentpayments;

d. Proof of remittances from the SSS,the Pag-ibig, the Philhealth, and theBIR;

E. Proof of payment of 13th month pay, if applicable.

Failure on the part of SERVICE AGENCY to submit the required proof ofremittances and monthly payroll shall result in the suspension of the processingof payment until the submission of the required documents.

15. Should there be any law or resolution passed increasing the minimum wage orrequiring additional compensation, the same shall be automatically adjusted bythe ECC;

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16. In case of any violation on the stipulations and covenants of this Contract bythe SERVICE AGENCY, the ECC may extra-judicially rescind and/or terminatethe same by giving the SERVICEAGENCY 30 days notice in writing prior to suchtermination and the ECC shall be entitled to the proportionate refund of itslast payment. In the event of termination, the ECC has the right to unilaterallyaward or renegotiate the said services to another SERVICEAGENCY;

17. All disputes, arising from or in connection with this contract, shall be resolvedby the contracting parties through an amicable settlement. Otherwise, thesame shall be submitted for mediation in accordance with law. The venue ofaction shall be at the Makati City to the exclusion of all other venues;

18. This Contract shall take effect from November 1, 2012 until October 31, 2013. ./Provided; that the ECC, pending the conduct of public bidding for the janitorialand clerical services for the year 2013, may extend the services of the SERVICEAGENCY on a monthly basis under the same terms and conditions stipulated inthis contract until the final determination of the bidding for janitorial andclerical services.

IN WITNESS WHEREOF, the parties hereunto affixed their signatures on this31st day of October 2012, at Makati City, Philippines.

EMPLOYEES' COMPENSATIONCOMMISSION

LBP SERVICECORPORATION

By:

STEll~N-BANAWISOIC, Executive Director t

BY~ftC-ROSEMARIEP. LEVISTEPresident

CERTIFICATION OF AVAILABILITY OF FUNDS

~. f/, kt,NfVELIN1 c. IBrsATE

Budget Officer II

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ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES}CITY OF MAKATI} S.S.x·······················································x

BEFORE ME, this day of 2012 in the City of Makati, Philippines,personally appeared, OIC·Executive Director STELLA ZIPAGAN·BANAWIS, representingthe Employees' Compensation Commission, exhibiting her(GSISjPhilhealthjPag·lbigjor other gov't identification no.) , and Ms.ROSEMARIE P. LEVISTE, representing the LBP Service Corp. , exhibiting her

SSS NQ. (GSISjPhilhealthjPag-Ibigjor other gov't identification no.) _03-1699294--&, known to me to be the same persons who executed the foregoing

instrument consisting of nine (9) pages including this page and they acknowledged to methat the same is their free act and deed.

IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal.

Doc No. V1 ~

Page No. 'fTBook No. --+1'--Series of2012.

NOTARY PUBLIC

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