Service Contract

SERVICE CONRACT
KNOW ALL MEN BY THESE PRESENTS:

This SERVICE CONTRACT entered into this _____ day of ________________ at Olongapo City,
Philippines by and between:
________________________________ with office address at ________________________

____________Subic Bay Freeport Zone, Olongapo City, hereinafter referred to as the CLIENT.
- and -
PRIMO SERVICE PROVIDER with office address at 5th Floor RM Bldg. East Tapinac Magsaysay
Drive Olongapo Cityhereinafter referred to as the PROVIDER.
CONSIDERATION
1. That the CLIENT is an importer of second hand, slightly used heavy equipment from foreign
countries to be sold here in the Philippines;
2. That these second hand, slightly used heavy equipment needed repairs, for it to be in good
running condition before it can be offered for sale to prospective clients;
3. The CLIENT, upon evaluation of the PROVIDER’s company profile and its personnel, is on the
opinion that the latter has the qualification, experience and abilities to provide the services
needed and as required by the former;
4. That with the concurrence of the PROVIDER, the CLIENT agrees to engage the services of
the former.
NOW, THEREFORE, with the aforementioned premises, both parties bind themselves to the
herein stipulated terms and consideration:
TERMS AND CONDITION
SECTION 1. SERVICE CREW. Experienced and qualified service crews who will work for the
repairs of equipment shall be brought in by the PROVIDER. They will work within the
premises/garage/yard of the CLIENT. Each will work solely on the individual unit assigned to them.
SECTION 2. SCOPE OF WORK. The service crews, upon assessment, shall determine the needed
repairs of the equipment, from top overhaul to general overhaul, as the case maybe.
SECTION 3. ESTIMATED TIME SCHEDULE. The needed repairs for top overhaul shall be
accomplished within six (6) working days and twelve (12) working days for general overhaul.
SECTION 4. WORKING HOURS. The regular working hours of the service crews and other
support personnel is from 8:0 AM to 5:00 PM and shall be monitored by the CLIENT through Daily Time
Record.
SECTION 5. IDENTIFICATION CARD. A list of these employees shall be submitted to the CLIENT
for control purposes. Each employee shall wear the PROVIDER’s company’s Identification cards within
the CLIENT’s premises.
Page 1 of 3
SECTION 6. TOOLS, EQUIPMENT AND PROTECTIVE GEARS. All the needed tools, equipment and
other implements for the needed repairs including protective gears for its service crews shall be for the
account of the PROVIDER.
SECTION 7. INVENTORY. All tools, equipment, implements and protective gears to be brought in
by the service crews shall be logged in and inventoried.
SECTION 8. SUPERVISION. A mechanical engineer under the employ of the PROVIDER shall
supervise all the works of the service crews. He shall prepare checklists of items for repairs on each
equipment and shall determine and approve any replacement of spareparts needed for repairs. He shall
be responsible for its requisition upon submission of the request to the CLIENT together with the
broken/damaged spareparts attached.
SECTION 9. OIL, LUBRICANTS AND SPAREPARTS. All oil, lubricants and spareparts shall be for
the account of the CLIENT. Every item issued to individual equipment under repair shall be inventoried
and fully accounted for.
SECTION 10. REQUISITION DELAYS. Any delays in the requisition and/or availability of
spareparts and other materials needed in the repairs through no fault of the PROVIDER’s service crews
shall not be considered as downtime or delays on the time schedule stated in Section 3 above.
SECTION 11. WARRANTY. The PROVIDER warrants that repairs done on each equipment passed
the quality inspection and examination of its mechanical engineer. The cost of any recurring breakdown
on what has been repaired shall be borne by the PROVIDER, provided however that such breakdown
was due to defective or malfunctioned spareparts that was replaced. Provided further that such
recurring breakdown had occurred after the warranty period of seven (7) days after its turnover to the
CLIENT.
SECTION 12. SERVICE FEE. The CLIENT agreed to pay the PROVIDER the service fee of Thirty
Thousand Pesos (Php 30,000) for top overhaul and Forty Thosuand Pesos (Php 40,000) for general
overhaul for each equipment repaired.
SECTION 13. EQUIPMENT FOR REPAIRS. The CLIENT guarantees that the PROVIDER will receive
a repair work assignment on an average of five (5) equipment for top overhaul and five (5) equipment
for general overhaul.
SECTION 14. PERFORMANCE BOND. The PROVIDER shall issue a performance bond of Fifty
Thousand Pesos (Php) issued by accredited insurance company in favor of the CLIENT as a guarantee for
the accomplishment of its contract agreement.
SECTION 15. MOBILIZATION FEE. The CLIENT shall pay Seventy Thousand Pesos (Php 70,000) as
mobilization fee to the PROVIDER upon signing of this service contract. This amount will be deducted
from the billing of the PROVIDER and will be pro-rate to the number of repaired equipment on the first
month.
SECTION 16. DUE DATE OF COLLECTION. Payment of the billings submitted by the PROVIDER
shall be paid within six (6) working days upon receipt. In the event of failure to pay the submitted billing
in the said due date, the CLIENT shall be given a Ten (10) days grace period to effect settlement
afterwhich he shall pay an interest of Five Percent (5%) per month.
SECTION 17. COMMENCEMENT OF THE SERVICE. The servicing of equipment shall commence
seven (7) days after the signing of the contract.
Page 2 of 3
IN WITNESS WHEREOF, the parties have set their hands and affixed their signatures as of the
day and year first above written.
_________________________________ _________________________________
SIGNED IN THE PRESENCE OF:
_________________________________ _________________________________
ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES )

OLONGAPO CITY, ZAMBALES ) S.S.
BEFORE ME, a Notary Public for and in the City of Olongapo, Province of Zambales, personally
appeared the following:
NAME IDENTIFICATION NO. IDENTIFICATION CARD
Known to me to be the same persons who executed the foregoing Instrument, and who acknowledged
to me that the same is their free and voluntary act and deed, as well as the free and voluntary act and
deed of the entities represented herein.
This Instrument, which is the LEASE AGREEMENT, consists of five (5) pages including this page
where the ACKNOWLEDGEMENT is written and is signed by the parties and their instrumental witnesses
on each and every page thereof.
WITNESS MY HAND AND SEAL, this ________________________at place first above written.
Doc. No. __________

Page No. _________
Book No. _________
Series of _________
Page 3 of 3

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SERVICE CONRACT

KNOW ALL MEN BY THESE PRESENTS:

________ with office address at

TERMS AND CONDITION

SIGNED IN THE PRESENCE OF:

REPUBLIC OF THE PHILIPPINES )

NAME IDENTIFICATION NO. IDENTIFICATION CARD

Doc. No. __________

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