Michael Seyoum Construction Contract & Law

Assessment number 2:

Assessment on Business Service Contract

1. Assume that you are a contractor; has secured the required advance payment for
mobilization; decided to import construction materials & machineries; what are the
measures to be taken to import the said goods say from Europe (UK), where the
Ethiopian Shipping Lines is calling and to deliver the said goods to the project site
duly as planned?

As I am a contractor and secured the required advance payment for the mobilization of
construction materials and machineries. The measures to be taken to import the said items
form are to find good supplier to be supplied in time.

And in the mean time there has to be money transaction to be made by my company and
the supplier. This money transaction could be made through different mechanisms. The
common one is through letter of credit. The local bank will issue a letter of credit to the
bank in the United Kingdom for the items to be purchased. Then as per the letter of credit
from the local bank the agent or the transistor will arrange the transport thought the
Ethiopian shipping lines for the delivery of the goods. After that the UK bank will request
to cash the letter of credit as per the conditions specified and pay to the supplier.

2. Identify the business services required for the importation of the said construction
materials & machineries including the business organizations for the provision of
the said business services?

 Demand: the demand rise from the project needs. It might be the public interest or
the private.

 Supplier: to do a business there has to be a supplier who can supply the goods or
the service to need of the interest.

 Bank services: the bank service is the service that will collect the money from the
demander to the supplier. There are a lot of ways doing the banking services.

 Transistors: a party who facilitates all the custom and other service.

 Logistics: responsible for the transportation of the goods.

Michael Seyoum Construction Contract & Law

3. What are the critical implications against the contractor as related to the
performance of a construction contract if the said machineries & materials were not
delivered to the project site for the planned mobilization and if the Commencement
Date were already running? Info: actual case study is needed if possible;

4. Identify the types of business service contracts involved including all the applicable
laws governing the said contracts;

5. Who are the relevant experts or professionals (from the market) possibly to be
involved for due performance of such import transaction as related to such goods
with a view to avoid or minimize the possible risks to the contractor? How do you
see the role of the project manager in co-coordinating the whole import transaction
with a view to duly mobilize, to execute & to complete the project thereby avoiding
or minimizing any contractual liability under the construction contract, if any?