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REF: HLS CAN RE LOA LOT No

Date

Address

CONSTRUCTION OF HOUSING PROJECT AT “CANTERBURY” KAHATHUDUWA

Letter of Acceptance

We are pleased to inform you that your bid for “Construction of Housing Project at No,
“Canterbury Residencies” Kahathuduwa” has been accepted at a total cost of Sri Lankan
Amount including Provisional Sums & All applicable Taxes and Levies in accordance with the
Bid submitted and adjusted with the subsequent negotiations had thereafter.

This is a “Lump Sum Fixed Price” type of Contract and shall not subject to Fluctuations of Prices,
Labour, materials, transport and exchange rate.

Prime costs of the Material supplied by client and the List of items supplied by client is attached
in Annexure 02. The above price is inclusive of all these items.

Scope of Work

The Work shall consist of Construction of Two Storied House with Roof and Water Tank (3
bedroom); defined in the Architectural, Structural and MEP Drawings

Work shall include for all the requirements specified in Architectural, Structural and MEP
detailed Drawings, Specifications to the entire satisfaction of Engineer/Employer,
compromising sub-structure, finishes, Doors & Windows, Roof Works, Electrical Installation,
water Supply System, Sewer & waste water disposal system and Storm water disposal system.

Contractor’s Scope as specified below;


1. Main Connection from NWSDB - Employer
2. Plumbing work from Main Supply to Water Tank - Contractor
3. From Water Tank to all other areas - Contractor
4. Sewer & Waste water connection up to Septic Tank (including septic tank)
- Contractor
5. Storm Water disposal system up to main connection - Contractor
6. Water Meters to the Housing Unit - Employer
7. Main Electrical Connection from CEB - Employer
8. Electricity supply to all areas within the premises - Contractor
9. Electricity meters to the house - Employer
10. Armoured cable to be drawn from meter to MCB - Contractor
11. Car Porch - Contractor
12. Interlocking/tiling and slab work around the house - Contractor

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13. Soil Preparation for Grass Laying - Contractor
14. Laying of Grass - Employer
15. Interlocking from Gate to Main Entrance - Employer
16. Boundary wall and Entrance Gate - Employer

Contractor shall execute and complete all finishing work specified in Architectural Drawings
compromising of;

1. All Floor, Wall and Ceiling finishes inside the House, Car Porsche area, front and rear
staircase areas and External Walls as detailed in the Architectural Drawings
2. External Paint to be three coat system
3. 600mm wide Wall tile between top & bottom pantry cupboards
4. All handrails and guard rails
5. The finishing details to be read with the “General Specification” along with Architect’s
finishing schedule

Contractor shall follow to the submitted drawings and the Client Specification attached in
Annexure 01when completing the work. Any discrepancies in both should be informed and
solved prior to commencement of work

All services bills (Electricity & Water) shall be paid by Contractor until the time of Take Over

You are hereby instructed to mobilize at site immediately and proceed with the execution of the
Said Works in accordance with the Contract

The Contractor is hereby requested to submit the documents within seven (7) days of the date
of this Letter of Acceptance
1. Performance Guarantee Bond to be unconditional payable on demand amounting to five
percent (5%) of the Initial Contract Price
2. Workman Compensation Insurance Policy
3. Programme of Work
4. List of Samples and Schedule for submission of samples
5. Schedule for submission of technical details for approval
6. Procedure for Site Safety
7. Procedures for transport/traffic arrangements
8. Proposed Material Testing Laboratories
9. Layout of Temporary facilities
10. Detailed Statement of Utilization of Advance Payment

Commencement Date: - 24th June 2020


Contract Period: - 12 Calendar Months
Date of Completion (total project completion): - 23rd June 2021

It is hereby agreed that if the actual progress at site is delayed by one-month Home Lands Skyline
(Pvt) Ltd. Shall have the power to insert its own team to catch up the delayed work. In any case
of an occurrence of delay Liquidated damages of Rs. 20,000.00 per day subject to a limit of

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10% of the Initial Contract Price will be recovered for every day’s delay in completion of the
works beyond the Completion Date stipulated under this Contract.

The Contractor shall not without prior approval from Employer/Engineer replace the
Contractor’s Site Engineer or any other Technical Staff

The Contractor shall maintain materials at site in proper order under cover to the satisfaction of
the Engineer.

The Contractor shall be liable to any damages arising during the Construction Period for existing
adjacent buildings, roads and any other services or features. If such a situation arises the
Contractor shall be liable to rectify the above damages as per the existing situation.

The Contractor shall not and without having received written permission from
Engineer/Employer interrupt in any way to the operations of any existing services such as
sewer, drains, electricity cables etc. and in the case of involving statutory authorities and private
owners without the permission of such authorities, owners and Engineer.

In the event of Variations, the rates to be used for pricing such variations shall be as per the rates
in the Schedule of Rates, wherever applicable. Where there are no applicable rates in the
schedule of rates, then the new rates shall be agreed upon between the Contractor and the
Employer/Engineer.

In the event of failure to come to an agreement the Employer/Engineer shall fix a fair and
reasonable price shall be final.

The retention from each payment shall be 10% of the certified work done up to a limit of 5% of
Initial Contract Sum. Release of retention shall be carried out on the basis of 50% of the amount
retained, at the time of releasing the Taking Over certificate following the successful completion
of work. The other 50% will be released after the expiration of Twelve (12) calendar Months
from the date of taking-over by the Employer.

Release of Payment on Interim Payment shall be carried out by the Employer within Fourteen
(14) working days from the date of submission of the Interim Payment Application. In case of
the Final Bill, the period applicable shall be Twenty-Eight (28) from the date of Submission of
the Application. Release of Final Payment shall only be upon submission of all approved As-Built
Drawings and warranty certificates

Maintenance of the site in a clean and order condition throughout the period of the contract
agreement shall be the responsibility of the contractor, at its own expenses. This will include the
removal and disposal of the debris away from the site at regular intervals, in compliance with
environmental regulation in Sri Lanka.

The contractor is required to comply with all health and safety measures adopted at site,
including the use of personal protective equipment by it engages in this Project. Safety of all site
equipment and material shall be the responsibility of the Contractor and no claims shall be made
in case of an occurrence of theft/damages to the Employer.

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The Contractor shall be responsible for co-ordination and timely completion of the total Project
including all works.

The Contract Documents will be prepared by the Employer/Engineer based on ICTAD


Standards Documents (ICTAD/SBD/01/-Second Edition January 2007) with some
modifications and signed between the parties hereto.

Please confirm acknowledgement of this Letter of Acceptance as soon as possible.

This Letter and your acknowledgment of same shall be Binding document for the execution of
the Contract until a formal Contract agreement is entered into by the parties concerned.

HOME LANDS SKYLINE (PVT) LTD.

Lalith Liyanarachchi
General Manger - Projects

We hereby accept the above letter of acceptance and agree to the terms and conditions therein

…………………………………… …………………………….
Contractor Date

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