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Contract Document
Contract Document
TABLE OF CONTENTS
VOLUME I Conditions of Contract and Priced Bill of Quantities
___________________
Architects & Engineers i
CONSTRUCTION CONTRACT DOCUMENT AASTU
SECTION I
THIS AGREEMENT made the ___ day of_________, 2010 between Yeka housing development project office
(hereinafter called “the Employer”) of the one part and whose address is
And
__________________________
(hereinafter called “the Contractor”) of the other part whose address is:
_________________________
P.O.Box
Tele :
Addis Ababa
WHEREAS the Employer is desirous that the Contractor execute the Construction of condominium apartments,
typologies and units as specified in Bill of quantity, (hereinafter called “the Works”) and completion of such
Works and the remedying of any defects therein for the Contract Price of the equivalent of Ethiopian Birr
_____________________________ (----).
1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to them
in the Conditions of Contract hereinafter referred to.
2. The following documents shall be deemed to form and be read and construed as part of this Agreement, viz:
The above documents forming the Contract are to be taken as mutually explanatory of one another, but in the case
of ambiguities or discrepancies the priority of reference shall be in the order herein above.
3. In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned, the
Contractor hereby covenants with the Employer to execute and complete the Works and remedy any defects
therein in conformity in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay the Contractor in consideration of the execution and completion of
the Works and the remedying of defects therein in the contract price or such other sum as may become
payable under the provisions of the Contract at the times and in the manner prescribed by the Contract.
5. It is agreed and understood that the said Contract Documents shall be interpreted in accordance with the
Ethiopian Law.
IN WITNESS whereof the parties thereto have caused this Agreement to be executed in accordance with the law
specified in the Special Conditions of Contract on the day, month and year indicated above
Witnesses
(UNCONDITIONAL)
To:________________________
P.O. Box___________
Addis Ababa
AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a
Bank Guarantee by a recognised bank for the sum specified herein as security for compliance with his obligations
in accordance with the Contract.
AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee.
NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the
Contractor, up to a total of [amount of Guarantee] Birr ____________________
_____________________________________, [amount in words] ______________________
_____________________________________, payable under the terms of Clause 10 of the Conditions of Contract
and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums
within the limits of [amount of Guarantee] ______________________
___________________________________________ as aforesaid without your needing to prove or to show
grounds or reasons for your demand for the sum specified therein.
We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the
demand.
We further agree that no change or addition to or other modification of the terms of the Contract or of the Works
to be performed there under or of any of the Contract documents which may be made between you and the
Contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any
such change, addition or modification.
This guarantee shall be valid until the date 14 days after the expiration of the Period of Maintenance as defined in
Clause 49(1)
___________________________________________________________________________
(UNCONDITIONAL)
To:_____________________
P.O. Box __________
Addis Ababa
Contract:
Gentlemen:
In accordance with the provisions of the Conditions of Contract, Sub-Clause 60(9) (“Advance Payment
Guarantee”) of the above-mentioned Contract,
We_____________________________________________________,P.O.Box____________ (hereinafter called
“the Contractor”) shall deposit with the ________________________ “Employer”) a bank guarantee to guarantee
his proper and faithful performance under the said Contract in an amount of
__________________________[amount of Guarantee], _________________________________
____________________________________________________________[amount in words].
We further agree that no change or addition to or other modification of the terms of the Contract or of Works to be
performed there under or of any of the Contract documents which may be made between the Employer and the
Contractor, shall in any way release us from any liability under this guarantee, and we hereby waive notice of any
such change, addition, or modification.
This guarantee shall remain valid and in full effect from the date of the advance payment under the Contract until
the Employer receives full repayment of the same amount from the Contractor.
Yours truly,
SECTION II
CONDITIONS OF CONTRACT,
The Conditions of Contract, Part I – General Conditions, shall be the “Standard Conditions of Contract for
Construction of Civil Works Project” of MoW & UD, December 1994 and Addendum No.1.
These Conditions are subject to the variations and additions set out in Part II hereof entitled “Conditions of
Particular Application”.
SECTION III
The following Conditions of Particular Application shall supplement the General Conditions of Contract and are
amendments and additions to the General Conditions. Whenever there is a conflict, the provisions herein shall
prevail over those in the General Conditions of Contract. Clauses in this part having Clause number 76 or less are
amendments and additions to the General Conditions and carry the numbers of the Clauses and Sub-clauses which
they amend.
Clause 1 Definitions
_______________________________________________,
TEL - , FAX – __________________
P.O.BOX ____________,_________________, Ethiopia
___________________________________________PLC
Consulting Architects and Engineers______________
TEL -____________, FAX – _______________________
P.O.BOX ___________,_________________, Ethiopia
(1) Delete the word “MoWUD” in the second paragraph and substitute by “the Employer”
“Notwithstanding the obligation, as set out above, to obtain approval, if, in the opinion of the Engineer,
an emergency occurs affecting the safety of life or of the works or of adjoining property, he may,
without relieving the Contractor of any of his duties and responsibilities under the Contract, instruct the
Contractor to execute all such work or do all such things as may, in the opinion of the Engineer be
necessary to abate or reduce the risk. The Contractor shall forthwith comply despite the absence of
approval by the Employer. The Engineer shall determine an addition to the Contract Price, in respect of
such instruction, in accordance with clause 52 and shall notify the Contractor accordingly, with a copy
to the Employer.
GENERAL OBLIGATIONS
In the second sentence of the first paragraph after “the form” insert the following;
“Without limitation to the provisions of the preceding paragraphs, whenever the Engineer determines
an addition to the Contract Price as a result of a change in cost and/or legislation or as a result of a
variation amounting to more than 25 percent of the portion of the Contract Price payable in a specific
currency, the Contractor, at the Engineer’s written request, shall promptly increase the value of the
performance security in that currency by an equal percentage. The performance security of a joint
venture shall be in the name of the joint venture.”
“Whenever an opinion is made available to the Contractor in respect of any data provided to the
contractor by the Employer, the Contractor shall be solely responsible for ascertaining the correctness
of such opinion and the Employer shall in no manner be liable in this regard. In particular and without
limiting the generality of the aforesaid, the Contractor shall not rely upon such opinion or interpretation
for any claim with respect to additional time or cost under the contract.
The Contractor shall acquaint himself with the position of all existing services such as sewers, surface
water drains, cables for electricity and telephone, telephone and lighting poles, water mains, and the
like before commencing any excavation or other work likely to affect the existing services.
Where work is to be carried out in the vicinity of overhead power lines, the Contractor shall ensure that
all persons working in such areas are aware of the relatively large distances that high voltage electricity
can “short” to earth when cranes, or other large masses of steel, are in the vicinity of power lines. The
Contractor’s attention is drawn to BS 162, which gives safe clearances for the various voltages.
The Contractor shall be held responsible for all damage to road, irrigation ditches, mains pipes, and
electric cables, lines services of any kind caused by him or his Sub Contractors and shall indemnify the
Employer against any claims in this respect (including consequential damage). The Contractor shall be
responsible for the reinstatement without delay of the services so affected and, if necessary, carry out
any further work ordered by the Engineer’s Representative.
In all cases where such works or services are exposed, they shall be properly shored, hung up or
otherwise protected. Special care must be exercised in filling and compacting the ground under mains,
cables, etc., and to leave uncovered exposed water meters, stopcock boxes and similar items.
Installations adjacent to the Works shall be kept securely in place until the work is completed and shall
then be made as safe and permanent as before.
Notwithstanding the foregoing requirements, and without reducing the Contractor’s responsibility, the
Contractor shall inform the Engineer immediately if any existing works or services are exposed, located
or damaged.
All costs which may be incurred by the Contractor as a result of programming and co-ordinating work
to enable any alterations to the services to be carried out and the cost of any safety precautions which
shall be deemed necessary due to the proximity of the Works to the existing services lines shall be at
the Contractor’s expense.
The Contractor shall be responsible for arranging in liaison with the appropriate Authority as soon as
the requirement is known for the moving of or alterations to services such as power and telephone lines,
water mains, sewers and surface water drains which are affected by the Works. The arrangements for
such moving or alteration shall be subject to the agreement of the Engineer and the appropriate
Authority.”
“The contractor within 15 calendar days shall submit to the Engineer a program in such a form and detail
as the Engineer shall reasonably prescribe based on the base line master work schedule enclosed here in
annex A. The Contractor shall, whenever required by the Engineer, also provide in writing for his
information a general description of the arrangements and methods which the contractor proposes to
adopt for the execution of the works.”
“The contractor should abide and adjust his/her working system towards the system of BPR and BSC of
the employer during work flow of the project”
The contractor is responsible to assign fulltime the minimum two key personnel (Project manger &
Construction foreman) on site throughout the project period.
The contractor's key personnel should have the following qualifications and work experiences:
Project manager: -
Resumes (CVs) and credentials of these key personnel shall be submitted for the Engineer's approval
before one week from contract signing.
If the project manager or Construction Forman is disqualified from the project due to various reasons
during construction, the contractor should substitute him within seven working days.
“The Contractor shall notify the insurers of changes in the nature, extent or program for the execution of
the works and ensure the adequacy of the insurances at all times in accordance with the terms of the
Contract and shall, when required, produce to the Employer the insurance policies in force and receipts
for payments of the current premiums.”
Add the following phrase in paragraph one third lines next to "property"
Clause 34 Labour
The Contractor shall pay rates of wages and observe conditions of labour not less favourable than those
established for the trade or industry where the work is being carried out. In the absence of any rates of
wages or conditions of labour so established, the Contractor shall pay rates of wages and observe
conditions of labour which are not less favourable than the general level of wages and conditions
observed by other employers whose general circumstances in the trade or industry in which the
Contractor is engaged are similar.
The contractor shall not recruit or attempt to recruit its staff and labour from amongst persons in the
service of the Employer or the Engineer.
The Contractor shall report to the Engineer details of any accident as soon as possible after its
occurrence. In the case of any fatality or serious accident, the Contractor shall, in addition, notify the
Engineer immediately by the quickest available means.
All materials and workmanship shall be of the respective kinds described in the contract and in
accordance with the Engineer's instructions and shall be subjected from time to time to such tests as the
Engineer may direct at the place of manufacture or fabrication, or on the Site or at such other place or
places as may be specified in the contract, or at all or any of such places. The employer and the
contractor shall provide such assistance, instruments, machines, labour and materials as are normally
required for examining, measuring and testing any work and the quality, weight or quantity of the
material used and shall supply samples of materials before incorporation in the works for testing as may
be selected and required by the Engineer. The responsibilities of the contractor and the employer with
this respect are based on the type of materials agreed to be supplied by each party.
Samples shall be supplied by the employer and the contractor at their own cost for the materials to be
supplied by them, if the supply thereof is clearly intended by or provided for in the contract. The
Engineer shall approve the quality and quantity of the sample as well as supplied materials from the
respective parties for the intended purpose.
The cost of making any test shall be born by the contractor and the employer for their own corresponding
materials supplied to the contract.
Responsibility with regards to Cost of sampling, testing, organizing and conditions for ordering is
incorporated in the testing schedule annexed in annex – B.
The contractor shall purchase, transport and unload all types of HCB and precast elements from Micro
and small enterprises/MSE/ Organised with in the housing development project office.
Proper handling of these materials during transportation, unloading and execution will be the
responsibility of the contractor. If excess materials, which are beyond the requirement of the block(s), are
taken by the contractor from the client, the excess materials should be returned or equivalent prices
should be reimbursed to the client before final payment is issued.
The cost of transportation shall be reimbursed by the employer according to price index (Annex E) in the
next interim payment certificate upon submittal of an approved material receipt invoice.
The employer will make available construction materials listed in annex D to its store in Addis Ababa
and supply to the contractor. Cost of the following construction materials will be reimbursed to the client
deducting from the contractor payment certificate at cost.
For materials which are supplied by the employer up to its store, the overhead cost and transportation
will be deducted from the unit price in the BOQ which was considered to be supplied and fixed by the
contractor.
In case of shortage of material, the contractor is allowed to supply the materials based on the price index
in annex E, with consent and permission from the employer and fulfilling all the quality requirements set
in the contract.
Delete Clause 43, Time for Completion, and replace with the following new paragraphs.
"The period for completion of the works in sections and the period for completion of the works as a
whole shall correspond to those periods in the contract and the appendices to the contract and detailed
schedule to be submitted by the contractor.
"Subject to any requirement in the contract and the appendices to the contract as to the completion of any
section of the works before completion of the whole, the whole of the works shall be completed, in
accordance with the provisions of Clause 48 hereof, within the time stated in the contract calculated from
the last day of the period named in the Appendix to the Contract as that within which the works are to be
commenced, or such extended time as may be allowed under Clause 44 hereof.
Insert the following after “submitted to the Engineer’s Representative” on the third line from the bottom
of the Clause.
“The Engineer shall evaluate, at several times in the project period, the progress of the contractor and
calculate the delayed time in days subtracting the time lost due to reasons that are beyond the
responsibility of the contractor. If the calculated delayed days reached 15 days, first warning notice shall
be issued to contractor in order to make expedite the progress and maintain the rate of progress with the
master work schedule. However; if these delayed days extend further and reach 21 days, 2 nd warning
notice will follow so that the contractor could take the necessary critical steps or respond accordingly.
Eventually if the rate of progress does not show any positive improvement and the delayed days reach 28
days, the engineer will be entitled to recommend to the Employer the possible termination of the contract
with the necessary steps to follow in accordance to Clause 63 – Default of the Contractor.
If any steps taken by the Contractor under this Clause will involve the Employer in additional
supervision cost, this cost shall be covered by the Contractor.”
Insert the following after “any variation” on the first line at the beginning of the Clause.
“Provided further that no change in the rate or price for any item contained in the contract shall be
considered unless such item accounts for an amount more than 2% of the Contract Price, and the actual
quantity of work executed under the item exceeds or falls short of the quantity set out in the Bill of
Quantities by more than 25%.”
“Variations upto 5% will be executed after approval of the Project Branch Office Manager whereas if the
variation exceeds from 5%, approval of the respective office of the head office is required. “
In the heading and in the first paragraph line 2 change “10%” to “5%”
“The Contractor shall state on which Clauses of the Conditions of Contract his claim is based.”
In the second line of 60(1)(f) Delete the word “one” and substitute with “Five”
Add new paragraph as follows;
“60(1)(g) any amount to be deducted as repayment of the advance payment under the provisions of Sub-
Clause 60(8).”
“60(1)(h) In case of shortage of material if the contractor opted to supply within the material index price
in annex E and fulfilling all the quality requirements set in the contract, payment shall be effected for the
full unit rate stated in Bill of Quantity calculating the corresponding bill for the material consumed that is
supplied by the contractor.”
“The Advance payment is issued to the contractor based on only the materials the contractor has supplied and
labour of execution performed by the contractor.”
"The Contractor will be paid at the times and in the manner provided in the contract as annexed in Annex B. The
payment will be made upon presentation of the Engineer's Interim Payment Certificate to the Employer, 100% of
the estimated value of the works executed up to the end of the previous day of payment, together with the value of
materials on site intended to form part of the permanent work as and from such time as they are reasonably,
properly and not prematurely brought upon the site but only if adequately stored and/or protected against weather
or damage."
“The Engineer shall, within 14 days of receiving such statement, certify to the Employer the amount of payment
to the contractor which he considers due and payable in respect of such statement. Provided that the Engineer
shall not be bound to certify any payment under this clause if the net amount thereof after all retention and
deductions, would be less than the Minimum Amount of Interim Certificate stated in the Appendix to the
Contract.”
“Notwithstanding the terms of this Clause or any other Clause of the Contract no amount will be certified by the
Engineer for payment until the performance security has been provided by the contractor and approved by the
Employer.”
“Except that the acts of the Employer as set out in Sub-Clause 2(1) hereof shall not be construed as such
interference, obstruction & refusal”
"(1) The Contractor accepts liability for the defects of the construction of the works and further guarantees the
structure and the solidity of the works for a period of ten (10) years starting from the date of final acceptance of
the works."
SECTION IV
APPENDIX TO CONTRACT
The Contractor should fill in all the appropriate blank spaces. The Contractor is required to sign each page of the
Appendix.
Clauses of
Particulars of the Contract conditions of Conditions
contract
Definitions 1(a) The Employer is Yeka Housing Development Project Office
Definitions 1(c) The Engineer shall be designated by the Employer
Performance Security 10 10 % of the Contract Price
Program to be Submitted 14(1) Within 5 days of the date of Notice to Commence the Works
Cash Flow to be Submitted 14(5) Within 5 days of the date of Notice to Commence the Works
Minimum Amount of Third Party 23(2) Birr 50,000 per occurrence, with the number of occurrence
Insurance unlimited
Time of Commencement 41 Within 5 days of the date of Notice to Commence the Works
Time for Completion 43 300 calendar days
Amount of Liquidated Damages 47(1) 1/1000 of Contract Price, per day.
Limit of Liquidated Damages 47(4) 10% of the final Contract Price.
Defects Liability Period 49.1 365 days.
Payment to Nominated 59(4) (c) Not Applicable
subcontractors
Minimum Amount of Interim 60(2) As per annex B – Payment schedule
Payment Certificates
Retention Money 60(2) 5 % of Interim Payment Certificates.
Maximum Amount of Retention 60(2) 5% of Contract Price plus the value of variations ascertained
Money in accordance with Clause 52, all subject to price adjustment
in accordance with Clause 70.
Milestone
Maximum amount of Advance 60(8) 20% of the Contract Price upon submission of unconditional
Payment Bank Guarantee or if the guarantee is conditional as per the
state procurement directive No. 4/1994 of the Addis Ababa
City Administration as amended on Hidar 10/1994 E.C.
directive No. ፋ/25/2/20 the amount to be paid to the
contractor shall be deposited with a current account
exceptionally opened in bank for the purpose of the project
in the name of the contractor and jointly operated by the two
authorized signatories representing the employer and the
contractor.
Rate of Interest in the event of delay 60 Bank Rate in Ethiopia
in payments