CONTRACT TO OPERATE CANTEEN

KNOW ALL MEN BY THESE PRESENTS:

This Contract to Operate Canteen, executed this ____________ day of

_______________,2017 in Quezon City, between:

- WITNESSETH that:

WHEREAS, OWNER is in need of a Canteen Operator at its premises to

regularly cater ready food to its offices and employees;

WHEREAS, CONCESSIONAIRE representing or have the operational capability,

experienced manpower, resources and equipment to provide canteen operation
services to owner, has offered to provide the same to owner;

WHEREAS, OWNER accepts CONCESSIONAIRE’s offer subject to its terms

and condition herein set forth.

I. TERM OF THE CONTRACT

This Contract shall be for a term of one (1) year commencing on _____________
but subject to monthly Performance Appraisal to be conducted by the OWNER.
Should the OWNER make an “UNSATISFACTORY RATING” of the annual
performance of the CONCESSIONAIRE, the owner shall have the option to
rescind this contract even before its term expires under Section V of this
Contract.

Thirty (30) days before the expiration of the One (1) year period of this contract,
either party shall notify the other of their intention to continue/allow the operation
of the canteen but such agreement shall be on a month-to-month basis until the
OWNER shall have awarded the concession to a new concessionaire and the
same has assured operation thereof.

II. OBLIGATION OF THE OWNER

The OWNER shall:

 1. Provide the following spaces necessary, at no cost, for the efficient operation
of the CONCESSIONAIRE for the duration of the Canteen Concession
Contract:
 Common dining area;
 Kitchen; and
 Common Rest Rooms (one Male and one Female Rooms)

2. Provide labor and materials for minor plumbing, electrical, and carpentry
repairs; Repair is considered minor when the cost of material does not
exceed One Thousand Pesos (P1,000.00)

3. Provide and maintain furniture, fixtures, and equipment needed for the
operation of the COA Canteen such as but not limited to:

 Food Counter with railings

 Tables
 Chairs
 Exhaust fan; and
 Ceiling fan.

4. Ensure that at least one (1) utility worker is designated at the canteen to
maintain the cleanliness of the restrooms.

5. Grant price meal adjustment, upon formal written requests of the

CONCESSIONAIRE, based on price increases on the affected commodities
subject to prior evaluation by OWNER.

III. OBLIGATION OF THE CONCESSIONAIRE

The CONCESSIONAIRE agrees to the following:

1. Provide food to the OWNER’s officials, employees and visitors at prices

offered by the CONCESSIONAIRE; provided that any increase in the meal
rates should be reasonable and subject to the prior approval of the OWNER.

2. Ensure the exclusivity of the contract awarded to it, and shall not transfer or
sublet the contract or any space allocated to it; Provided further that the
canteen and its facilities and equipment shall not, at any time, be used by the
 CONCESSIONAIRE to cater outsiders or third parties. The
CONCESSIONAIRE, however, may serve or offer other goods including but
not limited to their specialties.

3. Maintain the cleanliness and sanitation of the Canteen equipment and

premises such as the following:

a. Kitchen;
b. Cooking wares;
c. Dining areas;
d. Equipment and utensils;
e. Tables and chairs;
f. Lavatories and lavatory supplies;
g. Cabinets and food counters; and
h. The rest of the premises where the area of operation is maintained by
the Concessionaire.

Furthermore, the CONCESSIONAIRE must perform a general and thorough

cleaning every Saturday.

4. Ensure the quality of all the foods, either raw or processed, complies with
sanitation standard as prescribed under the Implementing Rules and
Regulations of Chapter III Food Establishments of the code on sanitation of
the Philippines (Presidential Decree No. 856).

5. Ensure utmost cleanliness and proper hygiene in the preparation, handling

and serving of food.

6. Operate the canteen from 6:30 a.m. – 6:00 p.m. from Monday to Friday
excluding holidays.

7. Provide breakfast starting at 6:30 a.m., morning snacks at 10:00 a.m., lunch
at 12:00 noon and afternoon snacks at 2:30 p.m. The CONCESSIONAIRE
shall guaranty prompt and timely delivery of meals to the OWNER’s offices.

8. Post its menu for the day with the corresponding price for each of the
dishes/meal to be served.

9. Provide basic requirements necessary in the canteen operation, such as:

 Manpower complement ;
  Communication devices;
 Cooking Equipment;
 Cooking wares and utensils;
 Liquefied Petroleum Gas;
 Movable Serving racks;
 Serving Trays;
 Cash Register (Registered with the BIR);
 Microwave oven;
 Tableware/ utensils such as plates, cups, saucers, drinking glasses,
spoon, and forks, etc;
 Spoon and Fork Sterilizer
 Food Warmer
 Coffee Maker
 Utensils Steamer
 Chafing Dish
 Bread Toaster and/or sandwich maker

The CONCESSIONAIRE may, however, provide additional

equipment/appurtenances that they may deem necessary subject to the approval
of the OWNER.

10. Provide adequate supply of purified drinking water with dispenser free of
charge.

11. Defray the cost of water and electric utilities including the con

12. Ensure that all personnel under the employ of the CONCESSIONAIRE must
wear the following:

 Identification Card issued by the OWNER

 Hairnet
 Proper uniforms at all times with apron. The OWNER shall designate
to the CONCESSIONAIRE a particular color to distinguish its
personnel to other CONCESSIONAIRE; and
 Appropriate footwear (closed shoes for canteen/food servers) and at
no time shall its personnel wear slippers during operation hours.

13. Require its personnel involved in the preparation and serving of food and
beverages to secure Individual Health/Medical Certificate from the Health
Officer of place of business. The CONCESSIONAIRE shall post the Individual
 Health/Medical Certificate in a visible area on the CONCESSIONAIRE’s wall;
and the certificate must be renewed annually or as necessary.

14. Ensure that all food is being handled properly. It shall instruct its personnel
not to handle money or any other items while handling food to avoid
contamination. Under no circumstance shall the cashier handle any food
while performing such functions.

15. Ensure that no noxious/inflammable/combustible/explosive materials are

being kept, deposited or stored within the premises.

16. Report immediately to the OWNER any necessary repair or the replacement
which needs to be undertaken within the canteen premises. The
CONCESSIONAIRE shall first seek the approval of the OWNER in case an
alteration in the canteen premises becomes necessary for the
CONCESSIONAIRE’s canteen operations, in which case the cost of alteration
will be charged against CONCESSIONAIRE.

17. Maintain peace and security of the canteen by prohibiting activities of any
kind which may cause disturbance, in any way, to the official activities of the
OWNER. Furthermore, no employee of CONCESSIONAIRE shall be allowed
to use the canteen premises for drinking alcoholic or intoxicating beverage
and for gambling at any given time; Provided further, no employee of the
CONCESSIONAIRE shall be allowed to stay overnight in the canteen building
and within the OWNER’s premises, except those who are duly authorized and
assigned by the CONCESSIONAIRE, upon prior written consent of the
OWNER, to secure its properties when evening catering services are
required.

18. Assume full responsibility for the acts of its employees and immediately act
on formal complaints made by the OWNER against its erring employees.
Mounting and unacted complaints against the CONCESSIONAIRE and its
employees shall constitute a violation of the contract on which ground the
OWNER may rescind the contract pursuant to Section V of the contract.

19. Deliver to the OWNER in good and working condition those enumerated
under items 1 and 3 of Section II at the expiration of the contract.
20. Pay the OWNER a monthly Concession fee in the amount of
_______________ to be paid within the first five (5) days of the current month
to the OWNER. Failure to pay the concession fee for at least two (2)
succeeding months shall be a ground for the OWNER to terminate the
contract as provided under Section V thereof.

21. Submit to the OWNER, through the Canteen Committee, copies of the annual
renewal applicable business licenses and permits, and tax returns duly
certified to be true and correct by the issuing agency.

IV. MISCELLANEOUS PROVISIONS

1. Pay its water and electric bill for the month. In case CONCESSIONAIRE fails
to pay its electric bill and water bill for at least (2) succeeding months, this
contract may be rescinded by the OWNER and the performance security
provided for in item 3 of this section shall be applied to the said arrears.

2. Any breakage or destruction of the tables and chairs and other canteen
equipments provided by the OWNER to the CONCESSIONAIRE not
otherwise attributable to ordinary wear and tear and extraordinary
circumstances shall be replaced by the CONCESSIONAIRE with the same
kind, design and quality. A list of all serviceable equipment and appliances to
be provided by the OWNER shall be submitted to the OWNER a list of its
equipment and appliances brought within the canteen premises.

3. PERFROMANCE SECURITY. The CONCESSIONAIRE shall deposit with the

OWNER a performance security in the form of cash, certified checks, cashier
check or manager’s check amounting to ______________. Within 10 ten (10)
calendar days from signing of this contract, the CONCESSIONAIRE shall
furnish performance security prescribed by the OWNER. The proceeds of the
performance security shall be payable to the OWNER as compensation for
any loss resulting from the CONCESSIONAIRE’s failure to comply with its
obligations under this Contract. The Performance security will be discharged
by the OWNER and returned to the CONCESSIONAIRE not later than thirty
(30) days following the date of expiration of this Contract, net of the said loss,
if any.

4. NON-TRANFERABILITY OF RIGHTS. Any right granted by the OWNER to

the CONCESSIONAIRE under this agreement shall be non-transferable.
 Should OWNER find that CONCESSIONAIRE has done the same, this will
result to an automatic rescission of this Contract and the CONCESSIONAIRE
will be blacklisted and cannot participate in any future projects/concessions.

5. Any injury arising from the consumption of food, condiments or drinks being
served, sold or offered for sale by the CONCESSIONAIRE at the canteen or
during any event the CONCESSIONAIRE’s employees within the OWNER’s
premises, shall be the sole liability of the CONCESSIONAIRE. In no case
shall the OWNER be jointly and severally liable for cases enumerated under
this term.

V. TERMINATION OF THE CONTRACT

1. This contract me be terminated by the OWNER before its expiration for any
violation by the CONCESSIONAIRE of any of the terms and conditions of this
contract.

2. In case of pre-termination, a written notice to the CONCESSIONAIRE shall

be sent stating therein the ground(s) constituting the same and an instruction
to the CONCESSIONAIRE to show cause why the contracts should not be
rescinded.