Proposal Contractual Conditions

Chapter 3 – Contractual Conditions

3.1 General

This proposal is subject to the conclusion of a mutually satisfactory agreement defining the rights and obligations of the parties.

3.2 Responsibilities

To ensure the completion of the SERVICES within the given performance period, the CLIENT shall, immediately upon DOZON’s receipt of the Notice to Proceed with the work from the CLIENT, be responsible for the following:

  1. Providing DOZON with full information and data as to the project requirements.
  2. Providing DOZON with all available documents of the PROJECT and pertinent data, drawings/plans, reports, maps and other relevant information required for the performance of the SERVICES.
  3. Furnishing to the personnel of DOZON concerned with the PROJECT the necessary letters of authorization, clearances, permits, passes and other papers to enable them to have free access within the jurisdiction of the PROJECT.
  4. Designating the representative of the CLIENT duly authorized to deal with DOZON with respect to the PROJECT and the SERVICES.

3.3. Changes

Should the CLIENT make changes in the SERVICES to be performed, or in the basic data requirements furnished, and if such changes cause an increase or decrease in the costs, an equitable cost adjustment shall be made and DOZON shall be compensated accordingly.  Any delay or change in the schedule of the PROJECT having an impact on the cost and/or performance period of the SERVICES shall be deemed changed and shall be subject for separate compensation.

3.4   Responsibilities of DOZON

DOZON warrants that the SERVICES shall be performed by qualified personnel with skill, care and diligence and in compliance with the rules of engineering practice.  In the event that the SERVICES do not meet the terms of compliance set above, DOZON shall, at no cost to the CLIENT, rectify the deficient part of the SERVICES, if feasible, or otherwise indemnify the CLIENT for resulting damages  DOZON’s liability in this consequence shall be limited damages up to the amount received as compensation for the SERVICES directly related to this Agreement, and in all respects exclude any such liabilities relating to consequential damages, force majeure, and acts beyond DOZON’s direct control.

3.5    Termination

The AGREEMENT to be concluded between the parties may be terminated before completion of the SERVICES by either party with or without cause, but prior written notice of such termination shall be given to the other party thirty (30) days in advance.  Should such a termination be necessary, DOZON shall be fully compensated for the part of the SERVICES already performed.

In the event that after the start of the PROJECT, the CLIENT decides to terminate, abandon or shelve the PROJECT or its construction for an undetermined time, DOZON will be compensated for the SERVICES rendered from the start of the contract until pertinent papers and/or construction documents have been accomplished and turned over to the CLIENT which will take two (2) months after DOZON is informed of the termination of such PROJECT activities.

In case of any legal suit under the AGREEMENT, venue shall be at the proper courts of Manila, to the exclusion of all other venues.

3.6    Liability

DOZON shall not have any liability for loss of anticipated profits, loss of reason of PROJECT shutdown, increased expense of operation, claims by the customers of the CLIENT or by other third parties, loss of use of capital or revenue, damage to property, or for any consequential loss or damages.

The total liability of DOZON shall not exceed the contract value of the part of the SERVICES which gives rise to the claim(s).

3.7    Statement of Probable Construction Cost

Any statement of probable construction cost or any preliminary cost estimates, submitted by DOZON are accurate only up to a certain degree.  DOZON has no control over the fluctuating costs of labor and materials, or the many factors that go into competitive bidding, and DOZON shall neither guarantee nor be responsible for the resulting final project construction cost.

3.8    Measurements

Weights, measurements and dimensions shall be recorded in SI units.

3.9    Language

The official project language will be the English language.

Excerpt from the 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