Chapter 1- Compensation
DOZON shall be compensated for the performance of the services by a lump sum fee amounting to PESOS: ONE MILLION EIGHT HUNDRED NINETY ONE THOUSAND THREE HUNDRED & 00/00 (Pph 1,891,300.00) only with the following breakdown:
- Design of Fuel Tank, Pumping and Piping – Php 774,300.00
- Design of Fire Protection Systems – Php 816,800.00
- Design of Ventilation and Air Conditioning Systems – Php 300,200.00
Total – Php 1,891,300.00
Please note that all fees presented herewith are inclusive of the 10% Value Added Tax (VAT).
Chapter 2- Commercial Provisions
2.1 Terms of Payment
Payment for the services shall be made under normal existing and acceptable practice detailed as follows:
2.1.2 Detailed Mechanical Engineering Design Services
Four (4) Months Performance Period including Conceptual Design Stage
40% of the total cost of services as acceptance fee upon receipt by DOZON of a written Notice to Proceed with the work from the client – Php 756,520.00
40% of the total cost of services upon submission of the preliminary design and plans – Php 756,520.00
20% of the total cost of services upon submission of the final design and plans, technical specifications, bill of quantities, and design computations – Php 378,260.00
Method of Invoicing and Payment
DOZON will submit invoices in accordance with this payment schedule. The client will arrange for payments in respect of all fees due to DOZON within fifteen (15) days after submission of invoices.
2.3 Services and Expenses Covered
The price quoted in the Financial Proposal covers the cost for the services and related expenses in connection with the implementation of the scope of services within the specified project schedule as outlined in the Technical Proposal
2.4 Price Escalation
All quotations on this Financial Proposal do not include a provision for escalation beyond this date.
From: Proposal for the Mechanical Engineering Design for PAL Fuel Tank Farm in Batangas City
By: Jose I. Hizon Jr., Carlos E. Zapanta and Melvin Panganiban