KTG ENGINEERING PLC

Contract agreement for the welding of HDPE pipe

This Agreement is made on March 15, 2021 between MOHAMMED ABDI OUMER GENERAL
CONTRACTOR whose address is DIRE DAWA TOWN telephone 0973228282 and hereinafter
referred to as client ' or " contractor " and KTG Engineering PLC (GENERAL CONTRACTOR)
whose address is at ADDIS ABABA kale keraniyo sub city wired 05 house number new and
p.o.box------telephone 0912-14-08-71/0924-391083/0910-19-55-12 and hereinafter referred to as
(Sub-contractor)

Article 1

Scope of the contract

the client has resolved to give contract to a competent contract the welding, Laying and Installation of
HDPE services at the SOMALI REGIONAL STATE SITY ZONE BIKE TOWN sites with a Total
CONTACT price of 833,000 Birr (Eight Hundred Thirty-Three Thousand only).

KTG Engineering PLC has been selected as competent contract to undertake the welding, Laying and
Installation of HDPE services as detailed in this agreement and the attached Performa invoice

Article 2
Contract documents
The following documents constitute the entire contract documents which are part and parcels of
the agreement preform invoice of contractor, dates 08 /08/2013

Article 3
Sub- Contractors obligations
3.1 the sub-contractor shall hand-over the works conforming to the attached bill of quantities.

3.2 the SUB-CONTRACTOR shall be responsible for the works and the safety of all man power daily
labor (skilled or welding technician) at the project site and hand-over the final works according to the
specification to the satisfaction of the CLIENT in Two Months (60 days) Calendar day

3.3 The sub-contractor must carefully and maintain the machines and generators received from the
client.

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3.4 The sub-contractor shall supply all labor needed for accomplishment of the work for delivering
pipe up to the trench and mounting on the machine and installing of pipe.

Article 4

Clients obligation

4.1 The client shall pay to the sub-contractor a total sum of 30%( not including vat) on the baises of
excluded and measured quantity of work

4.1.1 The client shall pay to the sub-contractor a total sum of in approximate calculation of 40% is
333,200 ETB only (three hundred Thirty-Three Thousand Two Hundred Birr only)

4.1.2 Client The first payment 30% 249,900 birr (two hundred Forty-Nine Thousand Nine
Hundred birr only). Advance payment must be made as soon as work is done. All payment must
be made as soon as work is done,

4.2 The payment shall be made progressively upon each take-off and written approval of the client
representative.

4.3 All excavation work shall be accomplished by the client before the contractor mobilize his work
force to the site.

4.4 after welding done by the contractor, covering the trench shall be done by the client

4.5 any delayed due to preparation of the trench, or other unseen situation, which is forced to bring
down time on the contractor machinery and labor shall be compensated by the client calculating daily
production point of large diameter pipe in the contract by down time

4.6 The client shall provide transport for mobilization of machines and personnel to site and from the
site to Addis Ababa.

Articles 5

Termination of contract

5.1 The client, by a written notice to the sub-contractor and without stating cause, may terminate the
contract if;

5.1.1 the sub-contractor fails to construct and hand over all the works within the period specified in the
contract.

5.1.2 the contractor fails to perform any other obligation(s) under the contract.

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 Articles 6

Warranty

6.1 the contractor shall perform according to the technical specification and instructions given time to
time by the client representative.

6.2 the contractor further agrees to replace all defective application if so requested by the client
representative at no cost to the client.

Article 7

Force majeure

If a force majeure situation arises, the client shall promptly notify the contractor in writing of such
condition and the cause there of. Neither party shall be liable to pay damages for nonperformance of
this contract as a result of force majeure as specified in the 1960 civil code of Ethiopia. The contractor
and its guarantor shall however refund the advance payment.

Article 8

Miscellaneous provisions

8.1 to the extent not inconsistent herewith, the provisions of the 1960 civil code of Ethiopia shall
govern the relationship between the parties hereunder.

8.2 the languages of the contractor documents shall be English or Amharic.

8.3 the final cost of the work is subject to change due to the actual quantity or the work to be welded
by the contractor and such a change shall be approved by a written consent of the contractor’s
representative.

Article 9

Resolution of disputes

Any dispute arising under this contract shall be settled amicably by both parties. If a dispute cannot be
settled amicably, it shall be submitted to the court of appropriate jurisdiction in Ethiopia.

Article 10

Effective date

This contract agreement shall come into force upon the date of its signature by the duly authorized
representative of the parties.

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In witness whereof the authorized representatives of the parties hereto have signed the contract on the
day, month and year first above written.

For the contractor for the client

Name____________________________ Name_____________________________

Title _____________________________ Title_____________________________

Sign__________________________ Sign_______________________________

Witnesses

NAME SIGNATUR

1 ________________________ _________________

2___________________________ ___________________

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 KTG ENGINEERING PLC

GENERAL CONSTRUCTION

Performa Date :- 15/ 08/ 2013 E.C

Ref :- no KTK 0060/2013

TIN no 0059224041

To: - Mohammed Abdi Oumer General Contractor

S/N Description of diameter Unit Quantity Unit price Total price

1 Diameter OD 250 PN 16 Per point 1667 500. birr 833,000

Note:

 all prices are before vat

 The unit price indicated are not including fittings

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 KTG ENGINEERING

CONTRACT AGREEMENT OF
HDPE WELDING, LAYING AND INSTALLATION
WORK

DIRE DAWA

April 2013

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