A new customer shall enter into a contract with BAWAD through the Service Application Agreement prior to the installation of water service connection. The Agreement contains the rules which govern the company’s transactions with its customers.

Duration
The Service Application Agreement/Water Service Contract shall take effect immediately upon its due execution until terminated and provided that the charges for the use of water provided by the Water District shall commence upon actual use;

Payment
The concessionaire shall pay on a monthly basis the amount indicated on the Water Bill or within fifteen (15) days from its presentation. All the terms and conditions found on the Water Bill are deemed incorporated in the contract. Expenses for the provision of service laterals from water mains up to the outlets shall be to the account of the concessionaire.

Authority to enter premises
Representatives of the District are hereby authorized to enter the premises of the concessionaire in the performance of their official duties such as meter reading, installation, servicing and such other similar activities.

Maintenance
Maintenance and repair services from the mains to the water meter shall be provided by the District for free.

Low pressure
The concessionaire hereby manifests that he/she has understood that the water supply may experience low pressure during peak hours.

Water meter
The water meter shall be provided by the District and shall remain the property of the latter. In case the water service connection is disconnected, the District shall remove said meter for safekeeping.

Leaks
The concessionaire is obligated to report to the District any observed leak and shall cause its immediate repair.

Fortuitous events or similar events
The District shall not be liable for the interruption of the service due to fortuitous events, acts of God and similar occurrences and those provided for under Presidential Decree No. 198, as amended.

Disconnection
The The District may disconnect the water service connection in any of the following instances:

1. If the concessionaire has been using water in violation of its rules and regulations;

2. If the concessionaire fails to settle arrears, penalties or interest within the grace period;

3. If the concessionaire resells the water supplied by the District unless there is a written agreement to the contrary;

4. If the concessionaire fails to repair or intentionally neglects to repair leaks in the stand pipe assembly. No notice of disconnection is necessary in this case; and

5. If the concessionaire has any other connection to the water system of the District which has not been approved or without the written consent of the District.

The use of pump directly from the main line
The use of pump directly from the mainline is also prohibited and if the concessionaire engages in this activity, the District may disconnect the water supply of the concessionaire without prejudice to whatever cause of action that the District may have arising from any illegal connection or use of pump.

Violation
In addition to the right of the District to effect disconnection, violation of the terms and conditions herein or the existing rules and regulations of the District shall make the concessionaire liable for all consequential damages arising from said violation.

Removal from Master List
In case the disconnected water line of the concessionaire has not been reconnected within six (6) months from its disconnection, the District shall be removed from the master list of concessionaires. The removal from the master list will not, in any way, prejudice any accrued cause or right of action of the District. The connection will be forfeited in favor of the District.

Reconnection
Any reconnection can only be approved upon payment of all the arrears, penalties or interest, if any, plus the corresponding Reconnection Fee.

Attorney’s fees
In case the District shall engage the services of a lawyer to enforce any of the provisions herein, the concessionaire shall be liable to pay the Attorneys Fee equivalent to twenty five percent (25%) of the amount due but in no case less than TWO THOUSAND PESOS ((P 2,000.00); if the case is about the collection of unpaid water usage and in any other case, the concessionaire shall be liable to pay the amount of FIVE THOUSAND PESOS (P5,000.00) as attorney’s fees. In both cases, the concessionaire shall also be liable for the costs of the suit;

Venue of action
Any and all cases arising from the contract shall be brought exclusively and to the exclusion of all other courts, in the proper court of Bayawan City only;

Amendments or modifications
Any amendment or modification of the contract can only be considered as part of the contract if previously approved by the Board of Directors of the District.

Good faith
The concessionaire covenants to abide with all the existing rules and regulations of the District including those that will be formulated hereinafter provided it is not contrary to law, public policy and morals;

Separability
If any provision of the contract is held by any other competent authority to be void or unenforceable in whole or in part, the other provisions of the Agreement and the remainder of the affected provisions shall continue to be valid.