AGREEMENT

Between

THE OWNER AND THE CONTRACTOR

For

THE CONSTRUCTION OF THE PROPOSED

RESIDENTIAL DEVELOPMENT ON PLOT
124, BLOCK 598 IN BUSIRO, NANGOMBE
WAKISO DISTRICT.

THIS AGREEMENT is made this day of , 2022

between SSALONGO KAYONDO SSEBASTIAN of Plot 124, Block 598 in Busiro,
Nangombe, Wakiso District (hereinafter called “The Owner”) of the one part and
………………… of C/o P.O Box ……… Mityana, Plot…., Tanda, Kabule – Uganda
(hereinafter called “The Contractor”) of the other part.

WHEREAS the Owner is desirous of having construction of a proposed residential structure of

162 Square meters (hereinafter called the Works) constructed at the Owner’s premises on Plot
124, Block 598 in Busiro, Buwaya, Nangombe, Wakiso District in accordance with the drawings
and specifications approved by the Owner and in accordance with the terms hereunder;

AND WHEREAS the Contractor has submitted an offer to complete the Works upon the said
conditions and in accordance with the Drawings and Specifications for a sum of 210,260,395
(two hundred ten million two hundred sixty thousand three hundred ninety v five Uganda
shillings only).

AND WHEREAS the Owner has accepted the Contractor’s offer.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1. For the consideration hereinafter mentioned, the Contractor shall complete the Works
subjected to the conditions hereunder and in accordance with the Drawings and
Specifications.
2. The Owner will pay the Contractor the sum as stated in the bill of quantities payable in Three
Instalments/Phases; being

(a) Substructure (Includes foundation works up to the ground floor) upon execution of this
Agreement here in called Phase 1.

(b) Superstructure (Includes all walling works from ground floor to wall plate, roofing and
fixing of only metallic doors and windows excluding wooden doors and wardrobes)
upon completion of the first phase herein called Phase 2.

(c) Finishes (Includes plastering, painting, tiling and fixing of all plumbing and electrical
fittings) upon completion of the second phase here in called Phase 3.

3. The Contractor shall occupy the site on the day of _, 2022 and
the Works shall be completed within 150 working calendar days from the date thereof.

4. The Contractor shall have the following obligations;

(a) Supervise all the machinery used for the works

(b) Provide all the skilled and nonskilled labour to execute the works

(c) Undertake all the construction works limited to the architectural drawing.

(d) Buying of all site materials excluding wooden doors and wardrobes for the kitchen and
bedrooms

(e) Provide weekly updates to the client on work progress.

(f) Cleaning of the premises and ensuring safety of the workers

5. The Owner shall have the following obligations;

(a) Provide security at the site for the duration of the works

(b) Provide storage space for materials and tool at the site

6. Variations and alterations

(a) The Owner has the right to request the Contractor to carry out all variations and
alterations from the plans and specifications.
(b) The Contractor shall price such variations and alterations within a reasonable amount of
time of the receipt of the requests by the Owner to do so. Work shall not be carried out on
the alterations and variations until the Owner and the Contractor have agreed to the prices
charged by the Contractor for such work.
 (c) The Contractor shall state whether the alterations or variations requested will lead to an
extension of time for the completion of the Works and she shall give the Owner the best
estimate of the extra time required.

7. Extension of time
(a) As soon as the Contractor recognizes that the work will not be finished in the time agreed
upon, he shall inform the Owner of the need for more time to complete the Works and the
reason for the request for the increased time.

(b) It is the duty of the Owner to consider the request for an extension of the contract time
considering the reasons given by the Contractor for such extension, and to grant the
request if considered reasonable in the circumstances of the construction of the Works.

8. Maintenance period

The Contractor is expected to make right any defects found in the Works for a period of up to
three (3) months after the completion of the Works and handover of the site.

9. Relations between the Contractor and the Owner

(a) The Contractor shall carry out the Works in accordance with the drawings and
specifications and in accordance with any reasonable instructions by the Owner or his
representatives.

(b) As soon as possible after the signing of the contract between the Owner and the
Contractor, the Owner shall inform the Contractor the name of his/her authorized
representative who will represent the Owner for the construction of the Works.

(c) As soon as possible after the signing of the contract the Contractor shall inform the
Owner in writing the names of the persons who shall be at the site or those who represent
the Contractor for the construction of the Works.

10. Force Majeure

Parties to this Agreement shall not be liable for any failure to fulfil their respective
obligations hereunder where such failure is caused by circumstances beyond the reasonable
control of, and not due to the fault or negligence of the party affected, and which could not
have been avoided by due diligence and use of reasonable efforts, which prevents the
performance by such affected party of its obligations hereunder, including and without
limitation to any Act of God, insurrection or war or military operations, act or omissions of
the Government.

11. Termination

(a) Any of the Parties may terminate this Agreement for any reason upon three (3) weeks’
written notice to the other party.
 (b) Upon termination of this Agreement by either party, the Contractor shall be required to
account for the payments already received, and if the works are not executed for that
payment, the same will reimbursed to the owner. The Owner shall also be required to pay
for the works executed and not paid for.

12. Confidentiality.

Each party agrees to regard and preserve as confidential all technical, financial and business
information related to the business and activities of the other party that may be obtained by
such party from any source or may be developed as a result of this Agreement.

13. Assignment.

Neither party may assign, transfer or subcontract the performance of its services, or any of its
rights and/or obligations hereunder, without the other party’s prior written consent, and any
attempt to do so shall be void.

14. Governing Law.

This Agreement shall be construed and enforced under the substantive laws of the Republic
of Uganda and the Ugandan Courts shall have jurisdiction.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

Signed for & on behalf of the Owner; Signed for & on behalf of the Contractor;

In the presence of:

Signature Signature

Name Name