In view of the rescission of the contracts of LVM Construction for the construction of the Damig Multi-Purpose Pavement and Kalantukan Multi-Purpose Pavement, Bayawan, Negros Oriental, by the District Engineer, Negros Oriental Engineering District, due to intolerable negative slippage, and upon request of the Regional Director, DPWH Region VII, LVM Construction/LUZ V. MERCADO is hereby suspended/blacklisted from participating in any bidding or entering into any contract with the DPWH and its line agencies for a period of one (1) year effective this date.

Since LVM Construction/Luz V. Mercado are liable for the following:

a) the total daily penalty up to and including the day immediately the date the Government effectively took over the Works; and

b) the excess cost incurred by the Government in the completion of the Contract either by administration or reletting the same, over the contract price including the cost of supervision and inspection from the time the Government effectively takes over the Works

pursuant to Clause 100 of the DPWH Standard Specifications 1988 and Section 3 of Presidential Decree 1870, which liabilities can be determined only after the completion and acceptance of the project and the expiration of the maintenance period, all concerned are hereby ordered not to release any sum of money to LVM Construction/Luz V. Mercado without prior clearance from the Secretary.

For strict compliance.

Adopted: 20 Apr. 1992