Standard Bidding Documents For Roadwork Contracts

FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
INTER NATIONAL COMPETITIVE BIDDING
ICB-2002
Standard Bidding Documents Section 1
For Roadwork Contracts ICB -2002 Form of Invitation
SECTION 1
FORM OF INVITATION FOR BIDS
[Ethiopian Roads Authority letterhead]
[date]
To: [name of Contractor]

[address]
Reference: (Funding Agency Reference No should be included) , Contract(s) Name

, and Identification No .
Dear Sirs:
1. We hereby inform you that you are prequalified for bidding for the above cited
contract(s).
2. We now invite you and other prequalified bidders to submit sealed bids for the
execution and completion of the cited contracts. Bidders may bid for one or
several contracts, as further defined in the bidding documents, depending on
the volume of work for which they are prequalified
3. You may obtain further information from, and inspect and acquire the bidding
documents, at our offices at:
Contracts Administration Division
5th Floor, Contract Administration Division Manager’s
Office Ethiopian Roads Authority
Ras Abebe Aregay Street
Post Office Box 1770
Addis Ababa, Ethiopia,
Tel: 251 1 51 60 34
Fax: 251 1 51 48 66
Telex N°: 21180
4. A complete set of bidding documents may be purchased at the above office, and
upon payment of a nonrefundable fee of Ethiopian Birr or
equivalent in any freely convertible currency [insert amount and currency].
5. All bids must be accompanied by a security in the form and amount specified in
the bidding documents, and must be delivered to the following address:
Ethiopian Roads Authority Page 1. 1

Section 1 Standard Bidding Documents
Form of Invitation For Roadwork Contracts ICB -2002
General Manager’s Office

Ethiopian Roads Authority
Addis Ababa, Ethiopia
at or before 3:00 pm (15:00 hours) on [date]. Bids will be opened immediately

thereafter in the presence of bidders ‘ representatives who choose to attend.
6. Please confirm receipt of this letter immediately in writing by cable, fax, or telex.
If you do not intend to bid, we would appreciate being so notified also in writing
at your earliest opportunity.
Yours truly,
Authorized signature
Name and title
Employer
Page 1.2 Ethiopian Roads Authority

Standard Bidding Documents
For Roadwork Contracts ICB-2002 Preface, Foreword & Table of Contents
PREFACE
This Standard Bidding Document was one of the series of Design Manuals, Standard Contract
Documents and Specifications developed under credit financing of the International
Development Agency (IDA). The consulting services were provided by the Louis Berger
Group, Inc.
This manual has been developed from current international practice appropriately modified to
take account of local experience and conditions.
ERA formed a Project Working Group charged with evaluating and commenting upon the draft
Manuals and guiding the Consultant on the preparation of the final Manuals. However this
Standard Bidding Document for ICB was finalized by ERA Project Working Group.
Members of the Working Group and the Louis Berger Group team for this Standard Bidding
Document for International Competitive Bidding (ICB) consists of the following:
1.Ato Belayneh Wolde

Selassie
• Manager, Design, Research and Network Management Division –Group Chairman
2. Ato Fesseha Taffese
• Head, Design and Research Branch - project counter part
3. Ato Fekadu Haile
• Senior Advisor to the General Manager - Group Secretary, editor and writer of this
final Document
4. Mr. Peter Drummond
• Road Sector Development Programme Advisor to the General Manager -editor of
this final document
5. Mr . Henry S.
Mildenhall
• Contract Administration Specialist
6. Mr. Brian S. Barr
• Rural Roads Co-ordinator
7. Mr. Nigel Penfold
• Highway Design Specialist, DFID Contract Capacity Building Team and Group_
Group Secretary of this Document at the draft stage.
8. Ato Tesfamichael Nahusenay
• ERA's General Manager-editor of this final document
Mr.Micheal S. Nyquist - Louis Berger Group Project Manager

Mr. Alain Nehme - Louis Berger Group Contract Specialist
Appropriate reviews and comments were also provided by agencies and individuals through
ERA's Project Working Group. The Working Group wishes to acknowledge for the
contributions made from ERA Legal Division and all other specialists within ERA and
outside of ERA in the preparation of this Standard Bidding Document.
The layout of this document has been arranged with the following hierarchy:
• Section
Ethiopian Roads Pag

Standard Bidding
Preface, Foreword & Table of Documents
• Major heading or Clause (level
one)
Page Ethiopian Roads

• Sub-clause within the major heading (level

two)
• Sub-sub-clause within the second level subject matter (level three)
All tables are described by number beginning with one (1) at the first of each section. Figures
are described in a similar manner.
Updates
This document will be updated and revised from time to time, as deemed appropriate.
Significant changes to criteria, procedures or conditions of contract that represent new policies
or revised law of the land, ERA, or that is mandated by the relevant Federal Government
Ministry or Agency, should be amended and incorporated in the document as soon as possible
after their date of effectiveness.
Other minor changes, not affecting the whole nature of this document, may be accumulated
and made periodically. When a change is approved, new page(s) instituting the
revisions, together with the revision date, will be issued and inserted in to the relevant sections.
All revisions to the Standard Bidding Document will be made strictly in accordance with the
following procedures:
(1) Any proposed change will be submitted by or through the Head of the Contract
Administration Division of ERA.
(2) The proposed change, addition, or deletion will be submitted on a Manual Change form
1-1(see the attached form) and forwarded with an explanation of its need and purpose.
(3) If the change is approved, the General Manager will sign the Manual Change form and
return a copy to the Head of the Contract Administration Division, who will arrange for
the change to be incorporated into the Standard Tendering Document.
(4) The Head of the Contract Administration Division will re-issue all effected pages of the
document showing the proper revision date as shown on the Manual Change form.1-1.
Ethiopian Roads Pag

Standard Bidding
ETHIOPIAN ROADS AUTHORITY

STANDARD BIDDING DOCUMENT ICB
This area to be competed by the Head

of ERA Contract Administration
Division
MANUAL CHANGE CHANGE NO.

(SECTION NO. CHANGE NO.
-
Section
Table Explanation To be deleted To be inserted
Figure
Submitted by: Date:
Head of Contract Administration Division
Approved by: Date:
ERA General Manager

Manual change Form 1-1
Ethiopian Roads Page

FOREWORD
This is the first comprehensive Bidding Document for International Competitive Bidding
(ICB) Prepared for the use of the Ethiopian Roads Authority Roadwork Tendering; however,
it may also be used as a Standard Bidding Document of Roadwork for other Government
agencies.
The Ethiopian Roads Authority has prepared this Standard Bidding Document for International
Competitive Bidding under a credit financing of the International Development Agency
(IDA) in order to standardize International Bidding Documents in all ERA Civil construction
works.
The road network comprises a huge national asset that requires adherence to appropriate
Standard Contract Documents for construction of the Road works through International
Contractors in order to provide a high level service.
This Standard Bidding Document has particular reference to the prevailing conditions in
Ethiopia and reflects ERA’s experience gained through activities within the road sector
during the last 50 years.
The Bidding Procedures and the Contract Conditions set out in this Document shall be adhered
to unless otherwise directed by the concerned bodies with in ERA. However, I would like to
emphasize that careful consideration to sound Contract Administration practice shall be
observed in the use of the Document. For simplification in reference this Document may be
cited as “ ERA Standard Bidding Document for ICB- 2002.”
It is my sincere hope that this Document will provide all involved parties with ready reference
standard and assist in a cost effective operation, and environmentally sustainable development
of our road network.
I look forward to incorporating the practices contained in this Document into our operations,
thereby making a sustainable contribution to the improved infrastructure of our country.
As this Document by its nature, requires periodic updating, comments & suggestions on all
aspects from any concerned body, group or Individual as a feedback during its
implementation is expected and that will be highly appreciated.
Tesfamichael Nahusenay
General Manager

Standard Bidding
STANDARD BIDDING DOCUMENTS
TABLE OF CONTENTS
SECTION NAME
SECTION 1 INVITATION FOR BIDS
SECTION 2 INSTRUCTIONS TO BIDDERS
A. GENERAL
B. BIDDING DOCUMENTS
C. PREPARATION OF BIDS
D. SUBMISSION OF BIDS
E. BID OPENING AND EVALUATION
F. AWARD OF CONTRACT
SECTION 3 BIDDING DATA

SECTION 4 GENERAL CONDITIONS OF CONTRACT
SECTION 5 CONDITIONS OF PARTICULAR APPLICATION
SECTION 6 TECHNICAL SPECIFICATIONS (IN A SEPARATE VOLUME)
SECTION 7 FORM OF BID, APPENDIX TO BID, AND BID SECURITY
SECTION 8 BILL OF QUANTITIES (IN A SPERATE VOLUME)
SECTION 9 FORM OF AGREEMENT, FORMS OF PERFORMANCE SECURITY, FORM

OF ADVANCE PAYMENT GUARANTEE, AND LETTER OF ACCEPTANCE

STANDARD TENDERING DOCUMENTS
TABLE OF CONTENTS
SECTION NAME
SECTION 10 DRAWINGS (IN A SEPARATE VOLUME)
SECTION 11 SCHEDULES OF SUPPLEMENTARY INFORMATION
SCHEDULE 1 INFORMATION ON ELIGIBILITY
AND
QUALIFICATION REQUIREMENTS
SCHEDULE 2 PROPOSED PROGRAM OF WORKS
SCHEDULE 3 CONTRACTOR’S PROPOSED
ORGANIZATION
SCHEDULE 4 CONTRACTOR’S PROPOSED KEY PERSONNEL

AND MOBILIZATION CHART
SCHEDULE 5 PROPOSED SUB-CONTRACTORS
SCHEDULE 6 PROPOSED MAJOR ITEMS OF

CONTRACTOR’S EQUIPMENT
SCHEDULE 7 ORIGIN OF MATERIALS AND LIST OF SUPPLIERS
SCHEDULE 8 BUILD-UP OF UNIT RATES
SECTION 12 DISPUTE RESOLUTION PROCEDURES

Standard Bidding Documents Section
For Roadwork Contracts ICB – 2
SECTION 2
INSTRUCTIONS TO BIDDERS
TABLE OF CLAUSES
CLAUSE NAME PAGE NO.
A. GENERAL...........................................................................................................................3
1......................................................................................................................................Scope
of Bid..........................................................................................................................3
2.Source of Funds..........................................................................................................3
3......................................................................................................................................Eligible
Bidders........................................................................................................................4
4......................................................................................................................................Eligible
Materials, Plant, Supplies, Equipment, and Services..................................................5
5.Qualification of the Bidder..........................................................................................5
6.One Bid per Bidder.....................................................................................................8
7.Cost of Bidding...........................................................................................................8
8.Site Visit......................................................................................................................8
B. BIDDING DOCUMENTS....................................................................................................9
9......................................................................................................................................Content
s of Bidding Documents..............................................................................................9
10.Clarification of Bidding Documents.........................................................................9
11.Amendment of Bidding Documents........................................................................10
C. PREPARATION OF BIDS.................................................................................................10
12.Language of Bid......................................................................................................10
13.Documents Comprising the Bid..............................................................................10
14.Bid Prices................................................................................................................11
15.Currencies of Bid and Payment.............................................................................12
16.Bid Validity.............................................................................................................12
17.Bid Security............................................................................................................13
18. Alternative Proposals by Bidders...........................................................................15
19. Pre-Bid Meeting.....................................................................................................15
20. Format and Signing of Bid.....................................................................................16
D. SUBMISSION OF BIDS...................................................................................................17

Section 2 Standard Bidding
Instruction To Documents
21. Sealing andMarking of Bids..................................................................................17
22. Deadline for Submission of Bids...........................................................................17
23. Late Bids................................................................................................................18
24. Modification, Substitution, and Withdrawal of Bids............................................18
E. BID OPENING AND EVALUATION..............................................................................18

25. Bid Opening...........................................................................................................18
26. Process to be Confidential......................................................................................19
27.Clarification of Bids and ContactingThe Employer................................................19
28.Examination of Bids and Determination of Responsiveness.................................20
29. Correction of Errors...............................................................................................20
30. Conversion to Single Currency for Comparison of Bids.......................................21
31. Evaluation and Comparison of Bids......................................................................21
32.Preference for Domestic Bidders............................................................................22
F. AWARD OF CONTRACT................................................................................................24
33. Award.....................................................................................................................24
34. Employer’s Right to Accept any Bid and to Reject any or all Bids.......................24
35. Notification of Award............................................................................................25
36. Signing of Agreement............................................................................................25
37. Performance Security.............................................................................................25
38.Disputes Review Board...........................................................................................26
39.Corrupt or Fraudulent Practices..............................................................................27

INSTRUCTIONS TO BIDDERS
A. General
1. SCOPE OF BID 1.1 The Employer, as defined in the Bidding Data
and Appendix to
Bid, hereinafter “the Employer,” wishes to receive bids for
the construction of Works, as described in Sections 5, 6, 7, 8,
and 10 and summarised in the Bidding Data, hereinafter
referred to as “the Works.”
1.2 The successful bidder will be required to complete the Works

within the period stated in the Bidding Data and Appendix to Bid
from the date of commencement of the Works.
1.3 Throughout these bidding documents, the terms bid and tender
and their derivatives (bidder/tenderer, bid/tendered,
bidding/tendering, etc.) are synonymous, and day means calendar
day. Singular also means plural.
2.SOURCE OF FUNDS 2.1 The Borrower named in the Bidding Data has applied for or
received a loan or credit (hereinafter called “loan”) from Funding
Agency in various currencies equivalent to the amount in U.S.
Dollars indicated in the Bidding Data towards the cost of the
Project specified in the Bidding Data, and the Borrower intends to
apply a part of the proceeds of this loan to eligible payments
under the contract for which these bidding documents are issued.
2.2 Payments by the lender will be made only at the request of the
Borrower and upon approval by the lender in accordance with the
terms and conditions of the Loan Agreement, and will be subject
in all respects to the terms and conditions of that Agreement. No
party other than the Borrower shall derive any rights from the
Loan Agreement or have any claim to the loan proceeds.

3.ELIGIBLE BIDDERS 3.1 This invitation to bid is open to any bidder (including all
members of a joint venture and all subcontractors of a
bidder) meeting all five of the following requirements:
(a) A bidder shall be from an eligible source country as

defined under the Guidelines of the lender.
(b)A bidder shall not be affiliated with a firm or entity
(i) that has provided consulting services related to

the Works to either the Employer or the Borrower
during the preparatory stages of the Works or of the
Project of which the Works form a part, or
(ii)that has been hired (or is proposed to be hired) by the

Employer or Borrower as Engineer for the contract.
(c) A bidder shall be pre-qualified for the contract as notified by

the Employer.
(d) A bidder shall not be under a declaration of ineligibility for

corrupt or fraudulent practices issued by the Bank in
accordance with sub-clause 39.1(c).
(e) Or any other conditions stated in the Bidding Data.
3.2 Bidders shall provide such evidence of their continued eligibility

satisfactory to the Employer, as the Employer shall reasonably
request.
3.3 Majority publicly owned enterprises from the Borrower country

may be eligible to qualify if, in addition to meeting all the above
requirements, they are also legally and financially autonomous
operate under commercial law and are not a dependent agency of
the Borrower or sub-Borrower.

4.ELIGIBLE 4.1 The materials, Plant or Contractor’s equipment, other supplies,

MATERIALS, and services to be supplied under the contract, shall have their
PLANT, SUPPLIES, origin in eligible source countries, defined under the Guidelines,
EQUIPMENT, AND and all expenditures made under the contract will be limited to
SERVICES such materials, Plant or Contractor’s equipment, other supplies,
and services.
4.2 For purposes of Clause 4.1 above, origin means the place where
the materials, Plant, equipment, and other supplies are
mined, grown, produced, or manufactured, and from which the
services are supplied.
5.QUALIFICATION 5.1 Bidders shall, as part of their bid:

OF THE BIDDER
(a) Submit a written power of attorney authorising
the signatory of the bid to commit the bidder; and
(b) Update any information submitted with their applications

for pre-qualification, which has changed, and update in any
case the information indicated in the Bidding Data, and
continue to meet the minimum threshold criteria set out in
the pre-qualification documents.
If pre-qualification is required as a minimum, Bidders shall

update the following information:
i) Independent Financial Audit Report of financial standing

for the last 3 years
(ii) Evidence of access to lines of credit and availability of

other financial resources;
(iii) Financial predictions for the current year and the two
following years, including the effect of known
commitments;
(iv) Work commitments acquired since pre-qualification;
(v) Current litigation information;
(vi) Availability of critical equipment; and
(vii) The qualification and experience of key personnel

proposed for the administration and execution of the

contract.
Submission of incorrect or incomplete information required

by this Sub-Clause will result in the Tender being considered as
non- compliant.
In addition, provide details

on:
(c) Actual items of critical equipment, which would be

mobilised for the Works; if an advance payment under
Clause 60.7 of the Conditions of Contract is to be sought,
list any items of critical equipment which would
be procured with the advance.
(d) An estimated monthly income, expenditure and resultant

cash-flow schedules at bid rates, incorporating the
Advance payment, retention and repayment of retention
(including for phased acceptance of parts of the Works) but
excluding any provisional sums and dayworks.
(e) The scope of work proposed to be sub-contracted;
(f) The overall staff and labour organisation chart proposed

for the management, control and execution of the Works;
(g) The major equipment proposed to be used in the Works,

stating the present location and use of that equipment, its
ownership, its age, and its capacity;
(h) Proposals for traffic management and site safety, clearly

defining advance warning signs, traffic control, separation
of working areas, attendance and lighting of works,
frequency of working areas and anticipated traffic queues,
etc. Work on any one area is to be completed as soon as
possible to minimise disruption of traffic;
(i) Provisional details of the proposed site laboratory

and including its equipment;
(j) Schedule of tests on materials and workmanship.
The above information, which will form part of the Contract,

should be submitted in sufficient detail to demonstrate the
bidder’s management, control and planning of the Works such

that completion to time, cost and quality may be

reasonably expected.
In addition to the above required information, bidders shall

submit the following:
(k) Normal working hours and days;
(j) Details of proposed Quality Management System
5.2 Bids submitted by a joint venture of two or more firms as partners

shall comply with the following requirements:
(a) The Bid shall include all the information listed in Sub-
Clause 5.1 above;
(b) The Bid, and in case of a successful Bid, the Agreement,

shall be signed so as to be legally binding on all partners;
(c) One of the partners shall be nominated as the principal

partner, and this authorisation shall be evidenced by
submitting a power of attorney signed by legally
authorised signatories of all the partners;
(d) The partner in charge shall be authorised to incur

liabilities and receive instructions for and on behalf of
any and all partners of the joint venture, and the entire
execution of the Contract, including payment, shall be done
exclusively with the partner in charge;
(e) All partners of the joint venture shall be liable jointly and
severally for the execution of the Contract in accordance
with the Contract terms, and a statement to this effect shall
be included in the authorisation mentioned under (c) above,
as well as in the Form of Bid and in the Agreement (in
case of a successful Bid); and
(f) A copy of the agreement entered into by the joint venture

partners shall be submitted with the Bid.
(g) The Agreement entered into by the joint venture shall

indicate the part in percentage and the type of works of
each partner in the joint venture;
(h) The principal partner (partner in charge) shall be

nominated pursuant to Clause 5.2 (c) but, in any case,
shall be the partner with the highest percentage of
participation;
(i) No modification of the name of the joint venture, the

percentage of participation and of the principal partner
shall be authorised in the course of the Contract.
5.3 Bidders shall also submit proposals of work methods and

Programme in sufficient detail to demonstrate the adequacy of the
bidders’ proposals to meet the technical specifications and the
time for completion referred to in Sub-Clause 1.2 above.
5.4 Domestic bidders, individually or in joint ventures, and joint

ventures of domestic and foreign bidders applying for eligibility
for a 7½ percent margin of preference in bid evaluation shall
supply all information required to satisfy the additional criteria
for eligibility as described in Clause 32.
6.ONE BID 6.1 Each bidder shall submit only one bid either by himself, or as a
PER
partner in a joint venture. A bidder who submits or participates
BIDDER
in more than one bid (other than alternatives pursuant to Clause
18) will be disqualified.
7.COST OF BIDDING 7.1 The bidder shall bear all costs associated with the preparation and
submission of its bid, and the Employer will in no case be
responsible or liable for those costs, regardless of the conduct or
outcome of the bidding process.
8.SITE VISIT 8.1 The bidder is required to visit and examine the “Site of Works”
and its surroundings and obtain for itself on its own responsibility
all information that may be necessary for preparing the bid and
entering into a contract for construction of the Works. The bidder
shall submit with its Tender a signed confirmation letter by him
its visit of the site. The costs of visiting the Site shall be at the
bidder’s own expense.

8.2 The bidder and any of its personnel or agents will be granted
permission by the Employer to enter upon its premises and lands
for the purpose of such visit, but only upon the express condition
that the bidder, its personnel, and agents, will release and
indemnify the Employer and its personnel and agents from and
against all liability in respect thereof, and will be responsible for
death or personal injury, loss of or damage to property, and any
other loss, damage, costs, and expenses incurred as a result of the
inspection.
8.3 The Employer may conduct a Site visit concurrently with the pre-
bid meeting referred to in Clause 19.
B. Bidding Documents
9. CONTENT 9.1 The bidding documents are those stated below, and should be
S OF BIDDING read in conjunction with any Addenda issued in accordance with
DOCUMENTS Clause 11:
Section 1 Invitation for Bids

Section 2 Instructions to
Bidders Section 3 Bidding Data
Section 4 Part I—General Conditions of Contract
Section 5 Part II—Conditions of Particular
Application
Section 6 Method of Measurement and Technical specifications
Section 7 Form of Bid, Appendix to Bid, and Bid Security
Section 8 Bill of Quantities
Section 9 Form of Agreement, Forms of Performance
Security, and Advance Payment Bank Guarantee
Section 10 Drawings
Section 11 Supplementary Information including clarification
Section 12 Postqualification [update in case there was no
prequalification]
Section 13 Addendum for Minutes of pre-Tender meeting, Notes
of Negotiations and other Addendum.
10.CLARIFICATIO 10.1 A prospective bidder requiring any clarification of the bidding

N OF BIDDING documents may notify the Employer in writing or by cable
DOCUMENTS (hereinafter, the term cable is deemed to include telex and
facsimile) at the Employer’s address indicated in the Bidding
Data. The Employer will respond to any request for clarification,

which he receives earlier than 28 days prior to the deadline
for submission of bids. Copies of the Employer’s response will
be forwarded to all purchasers of the bidding documents,
including a description of the inquiry but without identifying its
source.
11.AMENDMENT 11.1 At any time prior to the deadline for submission of bids, the
OF BIDDING Employer may amend the bidding documents by issuing
DOCUMENTS Addenda or corrigenda as appropriate.
11.2 Any Addendum or corrigenda thus issued shall be part of the

bidding documents pursuant to Sub-Clause 9.1, and shall be
communicated in writing or by cable to all purchasers of the
bidding documents. Prospective bidders shall promptly
acknowledge receipt of each Addendum or corrigenda by cable to
the Employer.
11.3 To give prospective bidders reasonable time in which to take an

Addendum or corrigenda into account in preparing their bids, the
Employer shall extend as necessary the deadline for
submission of bids, in accordance with Clause 22.
C. Preparation of Bids
12. LANGUAGE 12.1 The bid, and all correspondence and documents related to the bid
OF
exchanged by the bidder and the Employer shall be written in
BID
the bid language stipulated in the Bidding Data and
Conditions of Particular Application. Supporting documents and
printed literature furnished by the bidder may be in another
language provided they are accompanied by a certified
translation of the relevant passages in the above stated language,
in which case, for purposes of interpretation of the bid, the
translation shall prevail.
13.DOCUMENTS 13.1 The bid submitted by the bidder shall comprise the following:
COMPRISING
THE BID 1. Duly filled-in Form of Bid and Appendix to Bid,
2. Bid Security,
3. Priced Bill of Quantities,
4. Alternative offers where invited in accordance with Clause
17,
5. Any information or other materials required to be
completed and submitted by Bidders in accordance with
these Instructions to Bidders.
6. The documents listed under Sections 7 and 8 shall be filled

in without exception, subject to extensions thereof in the

same format and to the provisions of Sub-Clause 16.2
regarding the alternative forms of Bid security.
13.2 If so indicated in the Bidding Data, bidders bidding for this

contract, together with other contracts to form a package, will so
indicate in the bid, together with any discounts offered for
the award of more than one contract.
14.BID PRICES 14.1 Unless stated otherwise in the bidding documents, the contract
shall be for the whole Works as described in Sub-Clause 1.1,
based on the unit rates and prices in the Bill of Quantities
submitted by the bidder.
14.2 The bidder shall fill in rates and prices for all items of the Works
described in the Bill of Quantities. Items against which no rate or
price is entered by the bidder will not be paid for by the Employer
when executed and shall be deemed covered by the rates for
other items and prices in the Bill of Quantities.
14.3 All duties, taxes, and other levies payable by the Contractor under
the contract, or for any other cause, as of the date 28 days prior to
the deadline for submission of bids, shall be included in the rates
and prices and the total Bid Price submitted by the bidder.
14.4 Unless otherwise provided in the Bidding Data and Conditions of

Particular Application, the rates and prices quoted by the bidder are
subject to adjustment during the performance of the contract in
accordance with the provisions of Clause 70 of the Conditions of
contract. The bidder shall furnish the indices and weightings for the
price adjustment formulae in the Appendix to Bid, and shall submit
with its bid such other supporting information as required under
Clause 70 of the Conditions of Contract. The Employer may
require the bidder to justify its proposed weightings.
14.5 Unless otherwise provided in the Bidding Data and Conditions of

Particular Application, the rates and prices quoted by the bidder are
subject to adjustment during the performance of the contract in
accordance with the provisions of Clause 70 of the Conditions of
contract. The bidder shall furnish the indices and weightings for the
price adjustment formulae in the Appendix to Bid, and shall submit
with its bid such other supporting information as required under
Clause 70 of the Conditions of Contract. The Employer may
require the bidder to justify its proposed weightings.

15. CURRENCIES 15.1 The unit rates and the prices shall be quoted by the bidder entirely
OF
in the currency of the Ethiopia specified in the Bidding Data and
BID AND
Conditions of Particular Application. A bidder expecting to incur
PAYMENT
expenditures in other currencies for inputs to the Works supplied
from outside the Ethiopia (referred to as “the foreign currency
requirements”) shall indicate in the Appendix to Bid the
percentage(s) of the Bid Price (excluding Provisional Sums)
needed by him for the payment of such foreign currency
requirements, limited to no more than three foreign currencies
of any member country of the Lender.
15.2 The rates of exchange to be used by the bidder in arriving at the

local currency equivalent and the percentage(s) mentioned in
para. 15.1 above shall be specified by the bidder in the Appendix
to Bid, and shall apply for all payments under the Contract so that
no exchange risk will be borne by the successful bidder.
15.3 Bidders shall indicate their expected foreign currency

requirements in the Appendix to Bid.
15.4 Bidders may be required by the Employer to clarify their local

and foreign currency requirements, and to substantiate that the
amounts included in the unit rates and prices and shown in the
Appendix to Bid are reasonable and responsive to Sub-Clause
15.1, in which case a detailed breakdown of its foreign currency
requirements shall be provided by the bidder.
15.5 During the progress of the Works, the foreign currency portions
of the outstanding balance of the Contract Price may be adjusted
by agreement between the Employer and the Contractor in order
to reflect any changes in foreign currency requirements for the
contract, in accordance with Sub-Clause 72.4 of the Conditions of
Particular Application. Any such adjustment shall be effected by
comparing the percentages quoted in the bid with the amounts
already used in the Works and the Contractor’s future needs for
imported items.
16.BID VALIDITY 16.1 Bids shall remain valid for the period stipulated in the Bidding
Data after the date of bid opening specified in Clause 25.
16.2 Prior to expiry of the original bid validity period, the

Employer may request that the bidders extend the period of
validity for a specified additional period. The request and the
responses thereto

shall be made in writing or by cable. A bidder may refuse the

request without forfeiting its bid security. A bidder agreeing to
the request will not be required or permitted to modify its bid,
but will be required to extend the validity of its bid security for
the period of the extension, and in compliance with Clause 17
in all respects.
16.3 In the case of contracts in which the Contract Price is fixed (not
subject to price adjustment), if the period of bid validity is
extended beyond eight weeks, the amounts payable in local and
foreign currency to the bidder selected for award, shall be
increased by applying to both the local and the foreign currency
component of the payments, respectively, the factors specified in
the Bidding Data or in the request for extension, for the period of
delay beyond eight weeks after the expiry of the initial bid
validity, up to the notification of award. Bid evaluation will be
based on the bid prices without taking into consideration the
above correction.
17.BID SECURITY 17.1 The bidder shall furnish, as part of its bid, a bid security in the
amount stipulated in the Bidding Data in the currency of the
Ethiopia, or the equivalent amount in a freely convertible
currency.
17.2 The Bid Security shall, at the bidder’s option, be in the form of
a certified check, letter of credit, or a bank guarantee from a
reputable bank selected by the bidder and located in any
eligible country.
The format of the bank guarantee shall be in accordance with the

form of bid security included in Section 7; other formats may be
permitted, subject to the prior approval of the Employer. Bid
security shall remain valid for a period of 28 days beyond the
original validity period for the bid, and beyond any period of
extension subsequently requested under Sub-Clause 16.2.
17.3 Any bid not accompanied by an acceptable bid security shall be

rejected by the Employer as nonresponsive. The bid security of a
joint venture must be in the name of the joint venture submitting
the bid.
17.4 The Bid securities of unsuccessful bidders will be returned as

promptly as possible, but not later than 28 days after the
expiration of the period of bid validity.

17.5 The bid security of the successful bidder will be returned when
the bidder has signed the Agreement and furnished the required
performance security.
17.6 The bid security may be forfeited
(a) if the bidder withdraws its bid, except as provided in Sub-

Clause 24.2;
(b) if the bidder does not accept the correction of its Bid Price,
pursuant to Sub-Clause 29.2; or
(c) in the case of a successful bidder, if he fails within the

specified time limit to
(i) sign the Agreement, or
(ii) furnish the required performance security.
17.2 The Bid Security shall, at the bidder’s option, be in the form of a
certified check, letter of credit, or a bank guarantee from a
reputable bank selected by the bidder and located in any
eligible country.
The format of the bank guarantee shall be in accordance with the

form of bid security included in Section 7; other formats may be
permitted, subject to the prior approval of the Employer. Bid
security shall remain valid for a period of 28 days beyond the
original validity period for the bid, and beyond any period of
extension subsequently requested under Sub-Clause 16.2.
17.3 Any bid not accompanied by an acceptable bid security shall be

rejected by the Employer as nonresponsive. The bid security of a
joint venture must be in the name of the joint venture submitting
the bid.
17.4 The Bid securities of unsuccessful bidders will be returned as

promptly as possible, but not later than 28 days after the
expiration of the period of bid validity.
17.5 The bid security of the successful bidder will be returned when
the bidder has signed the Agreement and furnished the required

performance security.
17.6 The bid security may be forfeited
(a) if the bidder withdraws its bid, except as provided in Sub-

Clause 24.2;
(b) if the bidder does not accept the correction of its Bid Price,
pursuant to Sub-Clause 29.2; or
(c) in the case of a successful bidder, if he fails within the

specified time limit to
(i) sign the Agreement, or
(ii) furnish the required performance security.
18. ALTERNATIV 18.1 When alternative times for completion are explicitly invited,
E PROPOSALS BY a statement to that effect will be included in the Bidding Data, as
BIDDERS will the method of evaluating different times for completion.
18.2 Except as provided under Clause 18.3 below, bidders wishing to

offer technical alternatives to the requirements of the bidding
documents must first price the Employer’s design as described in
the bidding documents and shall further provide all information
necessary for a complete evaluation of the alternative by the
Employer, including drawings, design calculations, technical
specifications, breakdown of prices, and proposed construction
methodology and other relevant details. Only the technical
alternatives, if any, of the lowest evaluated bidder conforming to
the basic technical requirements shall be considered by the
Employer.
18.3 When bidders are permitted to submit alternative technical

solutions for specified parts of the Works, such parts shall be
described in Section 6, Technical Specifications.
19. PRE- 19.1 The bidder’s designated representative is invited to attend a pre-
BID bid meeting, which, if convened, will take place at the venue and
MEETING time stipulated in the Bidding Data.
19.2 The purpose of the meeting will be to clarify issues and to answer
questions on any matter that may be raised at that stage.

19.3 The bidder is requested, as far as possible, to submit any

questions in writing or by cable, to reach the Employer not later
than one week before the meeting. It may not be practicable at
the meeting to answer questions received late, but questions and
responses will be transmitted in accordance with the following
Sub-Clause.
19.4 Minutes of the meeting, including the text of the questions raised
and the responses given, together with any responses prepared
after the meeting, will be transmitted without delay to all
purchasers of the bidding documents. Any modification of the
bidding documents listed in Sub-Clause 9.1 which may become
necessary as a result of the pre-bid meeting shall be made by the
Employer exclusively through the issue of an Addendum pursuant
to Clause 11 and not through the minutes of the pre-bid meeting.
19.5 Non-attendance at the pre-bid meeting will not be a cause for

disqualification of a bidder
20. FORMAT 20.1 The bidder shall prepare one original of the documents
AND
comprising the bid as described in Clause 13 of these Instructions
SIGNING OF BID
to Bidders, bound with the section containing the Form of Bid
and Appendix to Bid, and clearly marked “original.” In addition,
the bidder shall submit copies of the bid, in the number specified
in the Bidding Data and clearly marked “copies.” In the event of
discrepancy between them, the original shall prevail.
20.2 The original and all copies of the bid shall be typed or written in
indelible ink (in the case of copies, photocopies are also
acceptable) and shall be signed by a person or persons duly
authorised to sign on behalf of the bidder, pursuant to Sub-
Clauses 5.1 (a) or 5.2 (c), as the case may be. All pages of the bid
where entries or amendments have been made shall be
initialled by the person or persons signing the bid.
20.3 The bid shall contain no alterations, omissions, or additions,

unless such corrections are initialled by the person or persons
signing the bid.
20.4 The bidder shall furnish information as described in paragraph 7

of the form of bid on commissions or gratuities, if any, paid
to

agents relating to this Bid, and to contract execution if the bidder

is awarded the contract.
D. SUBMISSION OF BIDS
21. SEALING AND 21.1 The bidder shall seal the original and each copy of the bid in
MARKING OF separate envelopes, duly marking the envelopes as “original” and
BIDS “copies.” The envelopes shall then be sealed in an outer envelope.
21.2 The inner and outer envelopes shall
(a) Be addressed to the Employer at the address provided in the

Bidding Data;
(b) Bear the name and identification number of the contract as

defined in the Bidding Data; and
(c) Provide a warning not to open before the time and date for
bid opening, as specified in the Bidding Data.
21.3 In addition to the identification required in Sub-Clause 21.2, the

inner envelopes shall indicate the name and address of the bidder
to enable the bid to be returned unopened in case it is
declared “late” pursuant to Clause 23, and for matching
purposes under Clause 24.
21.4 If the outer envelope is not sealed and marked as above, the
Employer will assume no responsibility for the misplacement
or premature opening of the bid. If the outer envelope discloses
the bidder’s identity, the Employer will not guarantee the
anonymity of the bid submission, but this shall not constitute
grounds for rejection of the bid.
22. DEADLINE FOR 22.1 Bids must be received by the Employer at the address specified in
SUBMISSION OF Sub-clause 21.2 no later than the time and date stipulated in the
BIDS Bidding Data.
22.2 The Employer may, in exceptional circumstances and at its

discretion, extend the deadline for submission of bids by issuing an
Addendum in accordance with Clause 11, in which case all rights
and obligations of the Employer and the bidders previously
subject to the original deadline will thereafter be subject to the
deadline as extended.

23. LATE BIDS 23.1 Any bid received by the Employer after the deadline for
submission of bids prescribed in Clause 22 will be returned
unopened to the bidder.
24. MODIFICATION, 24.1 The bidder may modify, substitute, or withdraw its bid after
SUBSTITUTION, bid submission, provided that written notice of the modification
AND WITHDRAWAL or withdrawal is received by the Employer prior to the deadline
OF BIDS for submission of bids.
24.2 The bidder’s modification, substitution, or withdrawal notice shall

be prepared, sealed, marked, and delivered in accordance with the
provisions of Clause 21, with the outer and inner envelopes
additionally marked “MODIFICATION” , “SUBSTITUTION” or
“WITHDRAWAL” as appropriate.
24.3 No bid may be modified by the bidder after the deadline for
submission of bids, except in accordance with Sub-Clauses 24.2
and 29.2.
24.4 Except as provided in Sub-Clause 24.2, withdrawal of a bid during

the interval between the deadline for submission of bids and
expiration of the period of bid validity specified in Clause 16 may
result in the forfeiture of the bid security pursuant to Sub-
Clause 17.6.
E. BID OPENING AND EVALUATION
25. BID OPENING 25.1 The Employer will open the bids, including withdrawals and
modifications made pursuant to Clause 24, in the presence of
bidders’ designated representatives who choose to attend, at the
time, date, and location stipulated in the Bidding Data. The
bidders’ representatives who are present shall sign a register
evidencing their attendance.
25.2 Envelopes marked “withdrawal” and “substitution” shall be

opened first and the name of the bidder shall be read out. Bids
for which an acceptable notice of withdrawal accompanied by a
valid power of attorney has been submitted pursuant to Clause 24
shall not be opened.

25.3 The bidders’ names, the Bid Prices, including any alternative Bid
Price or deviation, any discounts, bid modifications and
withdrawals, the presence (or absence) of bid security, and any
such other details as the Employer may consider appropriate,
will be announced by the Employer at the opening.
Subsequently, all envelopes marked “modification” shall be
opened and the submissions therein read out in appropriate detail.
No bid shall be rejected at bid opening except for late bids
pursuant to Clause 23.
25.4 The Employer shall prepare minutes of the bid opening, including
the information disclosed to those present in accordance with Sub-
Clause 25.3.
25.5 Bids not opened and read out at bid opening shall not be
considered further for evaluation, irrespective of the circumstances.
26. PROCESS TO 26.1 Information relating to the examination, clarification,

BE
evaluation and comparison of bids, and recommendations for the
CONFIDENTIAL
award of a contract shall not be disclosed to bidders or any other
persons not officially concerned with such process until the
award to the successful bidder has been announced. Any effort
by a bidder to influence the Employer’s processing of bids or
award decisions may result in the rejection of the bidder’s bid.
27. CLARIFICATIO 27.1 To assist in the examination, evaluation, and comparison of bids,
N OF BIDS AND the Employer may, at its discretion, ask any bidder for
CONTACTING clarification of its bid, including breakdowns of unit rates. The
THE EMPLOYER request for clarification and the response shall be in writing or by
cable, but no change in the price or substance of the bid shall be
sought, offered, or permitted except as required to confirm the
correction of arithmetic errors discovered by the Employer in the
evaluation of the bids in accordance with Clause 29.
27.2 Subject to Sub-clause 27.1, no bidder shall contact the Employer on

any matter relating to its bid from the time of the bid opening to the
time the contract is awarded.
27.3 Any effort by the bidder to influence the Employer in the

Employer’s bid evaluation, bid comparison or contract award
decisions may result in the rejection of the bidder’s bid.

28.EXAMINATION 28.1 Prior to the detailed evaluation of bids, the Employer will
OF BIDS AND determine whether each bid (a) meets the eligibility criteria of
DETERMINATION the Bank; (b) has been properly signed; (c) is accompanied by
OF the required securities; (d) is substantially responsive to the
RESPONSIVENESS requirements of the bidding documents; and (e) provides any
clarification and/or substantiation that the Employer may require to
determine responsiveness pursuant to Sub-Clause 28.2.
Furthermore, the bidder shall, if required, provide substantiation
that the Employer may require, pursuant to Sub-Clause 15.5.
28.2 A substantially responsive bid is one that conforms to all the terms,
conditions, and specifications of the bidding documents without
material deviation or reservation. A material deviation or
reservation is one (a) which affects in any substantial way the
scope, quality, or performance of the Works; (b) which limits
in any substantial way, inconsistent with the bidding documents,
the Employer’s rights or the bidder’s obligations under the
contract; or
(c) whose rectification would affect unfairly the
competitive position of other bidders presenting substantially
responsive bids.
28.3 If a bid is not substantially responsive, it will be rejected by the

Employer, and may not subsequently be made responsive by
correction or withdrawal of the non-conforming deviation or
reservation.
29. CORRECTION 29.1 Bids determined to be substantially responsive will be checked by

OF
the Employer for any arithmetic errors. Errors will be corrected by
ERRORS
the Employer as follows:
(a) Where there is a discrepancy between the amounts in figures and in

words, the amount in words will govern; and
(b) Where there is a discrepancy between the unit rate and the line item
total resulting from multiplying the unit rate by the quantity,
the unit rate as quoted will govern, unless in the opinion of the
Employer there is an obviously gross misplacement of the decimal
point in the unit rate, in which case the line item total as quoted
will govern and the unit rate will be corrected.
29.2 The amount stated in the bid will be adjusted by the Employer
in accordance with the above procedure for the correction of
errors and, with the concurrence of the bidder, shall be
considered as binding upon the bidder. If the bidder does
not accept the

corrected amount of bid, its bid will be rejected, and the bid
security may be forfeited in accordance with Sub-Clause 17.6 (b).
30. CONVERSION 30.1 For comparison of bids, the Bid Price shall first be broken down
TO SINGLE into the respective amounts payable in various currencies by using
CURRENCY FOR the exchange rates specified by the bidder in accordance with
COMPARISON OF Clause 15.3.
BIDS
30.2 In the second step, the Employer will convert the amounts in
various currencies in which the Bid Price is payable
(excluding Provisional Sums but including Daywork where
priced competitively) to either:
(a) The currency of the Ethiopia at the selling rates

established for similar transactions by the authority
specified in the Bidding Data on the date stipulated in the
Bidding Data;
or
(b) A currency widely used in international trade, such as the

U.S. dollar, stipulated in the Bidding Data, at the selling rate
of exchange published in the international press as stipulated
in the Bidding Data on the date stipulated in the Bidding
Data, for the amounts payable in foreign currency; and, at the
selling exchange rate established for similar transactions
by the same authority specified in Clause 30.2(a) above on
the date specified in the Bidding Data for the amount
payable in the currency of the Ethiopia.
31. EVALUATION 31.1 The Employer will evaluate and compare only the bids determined
AND
to be substantially responsive in accordance with Clause 28.
COMPARISON OF
BIDS
31.2 In evaluating the bids, the Employer will determine for each bid
the Evaluated Bid Price by adjusting the Bid Price as follows:
(a) Making any correction for errors pursuant to Clause 29;
(b) Excluding Provisional Sums and the provision, if any,

for Contingencies in the Summary Bill of Quantities, but
including Daywork, where priced competitively;
(c) Converting the amount resulting from applying (a) to (b)

above to a single currency in accordance with Clause 30;

(d) Making an appropriate adjustment on sound technical and/or
financial grounds for any other quantifiable acceptable
variations, deviations or alternative offers;
(e) Making an allowance for varying times for completion

offered by bidders is not permitted: and
(f) Applying any discounts offered by the bidder for the award
of more than one contract, if bidding for this contract is being
done concurrently with other contracts (Clause 13.2) and
subject to the extent that the bidder is pre-qualified for the
corresponding number of contracts, and associated volume of
contract works and contract resourcing since bidders are
required to resource each bid separately.
31.3The Employer reserves the right to accept or reject any variation,

deviation, or alternative offer. Variations, deviations, alternative
offers, and other factors that are in excess of the requirements of
the bidding documents shall not be taken into account in bid
evaluation.
31.4 The estimated effect of the price adjustment provisions of the

Conditions of Contract, applied over the period of execution of the
contract, shall not be taken into account in bid evaluation.
31.5 If the bid, which results in the lowest Evaluated Bid Price, is
seriously unbalanced or front loaded in relation to the Engineer’s
estimate of the items of work to be performed under the contract,
the Employer may require the bidder to produce detailed price
analyses for any or all items of the Bill of Quantities,
to demonstrate the internal consistency of those prices with
the construction methods and schedule proposed. After
evaluation of the price analyses, taking into consideration the
schedule of estimated contract payments, the Employer may
require that the amount of the performance security set forth in
Clause 37 be increased at the expense of the bidder to a level
sufficient to protect the Employer against financial loss in the
event of default of the successful bidder under the contract.
32.PREFERENC 32.1 If so indicated in the Bidding Data, domestic contractors may

E FOR
receive a margin of preference in bid evaluation for which this
DOMESTIC
clause shall apply.
BIDDERS

32.2 Domestic bidders shall provide all evidence necessary to establish

that they meet the following criteria to be eligible for a 7½
percent margin of preference in the comparison of their bids with
those of bidders who do not qualify for the preference. They
should
(a) Be registered within the Ethiopia;
(b) Have majority ownership by nationals of the Ethiopia;
(c) Not subcontract more than 50 percent of the Contract Price,

excluding provisional sums, to foreign contractors; and
(d) Satisfy other criteria stipulated in the Bidding Data.
32.3 Joint ventures between domestic and foreign firms shall be eligible
for the margin of preference provided that:
(a) The domestic partner or partners individually satisfy the

above criteria of eligibility for the preference;
(b) The domestic partner or partners demonstrate a beneficiary

interest of no less than 50 percent in the joint venture, as
demonstrated by the profit and loss sharing provisions, if
any, of the joint venture agreement;
(c) The domestic partner or partners will, under the

arrangements proposed, execute at least 50 percent of the
Works measured in terms of the Contract Price, excluding
provisional sums (always provided that the domestic partner
or partners are qualified to carry out that amount of work, in
accordance with the criteria of Sub-Clause 5.3), and that the
said 50 percent shall exclude any materials or Plant which
are to be imported by the domestic partner(s); and
(d) Satisfy other criteria, if any, stipulated in the Bidding Data.
32.4 The following procedure will be used to apply the margin of

preference:
(a) After bids have been converted to a single currency in

accordance with the provisions of Sub-Clause 31.2 (c) above,
responsive bids will be classified into the following groups:

(i) Group A: bids offered by domestic bidders and joint
ventures meeting the criteria set out in the above Sub-
Clauses 32.2 and 32.3, respectively; and
(ii) Group B: all other bids.
(b) For the purpose of further evaluation and comparison of bids

only, an amount equal to 7½ percent of the evaluated Bid
Price determined in accordance with the provisions of Sub-
Clause
31.2 (a), (b), (c), and, where applicable, (f), will be added to all
bids classified in Group B.
32.5 Alternative offers, where solicited or permitted, will be evaluated

separately, in accordance with the provisions of Clause 18, and
shall be subject to the margin of preference in accordance
with Clause (b) 32.4.
F. AWARD OF CONTRACT
33. AWARD 33.1 Subject to Clause 34, the Employer will award the contract to the
bidder whose bid has been determined to be substantially
responsive to the bidding documents and who has offered the
lowest Evaluated Bid Price pursuant to Clauses 31 and 32,
provided that such bidder has been determined to be (a) eligible in
accordance with the provisions of Sub-Clause 3.1; and (b) qualified
in accordance with the provisions of Clause 5.
33.2 If, pursuant to Clause 13.2, this contract is being let on a “single or
multiple lots” basis, the lowest evaluated Bid Price will be
determined when evaluating this contract in conjunction with other
contracts to be awarded concurrently, taking into account any
discounts offered by the bidders for the award of more than one
contract.
34. EMPLOYER’S 34.1 The Employer reserves the right to accept or reject any bid, and
RIGHT TO ACCEPT to annul the bidding process and reject all bids, at any time prior
ANY BID AND TO
to award of contract, without thereby incurring any liability to
REJECT ANY OR the affected bidder or bidders or any obligation to inform the
ALL BIDS
affected bidder or bidders of the grounds for the Employer’s action.

35. NOTIFICATIO 35.1 Prior to expiration of the period of bid validity prescribed by the
N OF AWARD Employer, the Employer will notify the successful bidder by
cable confirmed by registered letter that its bid has been accepted.
This letter (hereinafter and in the Conditions of Contract called the
“Letter of Acceptance”) shall specify the sum which the
Employer will pay the Contractor in consideration of the
execution and completion of the Works and the remedying of any
defects therein by the Contractor as prescribed by the contract
(hereinafter and in the Conditions of Contract called “the Contract
Price”).
35.2 The notification of award will constitute the formation of the

contract.
36. SIGNING OF 36.1 At the same time that the Employer notifies the successful
AGREEMENT bidder that its bid has been accepted, the Employer will send the
bidder the Agreement in the form provided in the bidding
documents, incorporating all agreements between the parties.
36.2 Within 28 days of receipt of the Agreement, the successful bidder

shall sign the Agreement and return it to the Employer,
together with the required performance security.
36.3 Upon fulfilment of Sub-Clause 36.2, the Employer will

promptly notify the other bidders that their bids have been
unsuccessful and their bid security will be returned as
promptly as possible, in accordance with Clause 17.4.
37. PERFORMANCE 37.1 Within 28 days of receipt of the Letter of Acceptance from the
SECURITY Employer, the successful bidder shall furnish to the Employer a
performance security in the form stipulated in the Bidding
Data and the Conditions of Contract. The form of performance
security provided in Section 9 of the bidding documents may be
used or some other form acceptable to the Employer.
37.2 If it is stipulated in the Bidding Data that the performance

security is to be provided by the successful bidder in the form of a
bank guarantee, it shall by issued either ;
(a) At the bidder’s option, by a bank located in the country of

the Employer or by a foreign bank through a correspondent
bank located in Ethiopia, or (b) with the prior agreement of
the Employer directly by a foreign bank acceptable to
the Employer.

37.3 If it is stipulated in the Bidding Data that the performance
security may also be provided by the successful bidder in the
form of a bond, it shall be issued by a bonding or insurance
company that has been determined by the successful bidder to be
acceptable to the Employer.
37.4 Failure of the successful bidder to comply with the requirements

of Clauses 36 or 37 shall constitute a breach of contract, cause for
annulment of the award, forfeiture of the bid security, and
any such other remedy the Employer may take under the contract,
and the Employer may resort to awarding the contract to the
next ranked bidder.
38.DISPUTES 38.1 The method of dispute resolution is as indicated in the Bidding Data.
REVIEW If the selected method is a Disputes Review Board or Disputes
BOARD Review Expert, the Employer proposes the person named in the
Bidding Data to be appointed as a Board member. If the bidder
disagrees with this proposal, the bidder should so state in the bid. If
the Employer and the selected bidder cannot agree to the
appointments of the two initial Board members, then the
appointments will be made by the Appointing Authority designated
in the Conditions of Particular Application at the request of either
party.

39. CORRUPT 39.1 The Funding Agency requires that Borrowers (including
OR
beneficiaries of loans), as well as
FRAUDULENT
bidders/suppliers/contractors under the Funding Agency financed
PRACTICES
contracts, observe the highest standard of ethics during the
procurement and execution of such contracts. In pursuance of
this policy, the Funding Agency:
(a) Defines, for the purposes of this provision, the terms set forth
below as follows:
(i) “Corrupt practice” means the offering, giving, receiving
or soliciting of any thing of value to influence
the action of a public official in the procurement
process or in contract execution; and
(ii) “Fraudulent practice” means a misrepresentation of
facts in order to influence a procurement process
or the execution of a contract to the detriment of
the Borrower, and includes collusive practice
among bidders (prior to or after bid submission)
designed to establish bid prices at artificial non-
competitive levels and to deprive the Borrower of
the benefits of free and open competition;
(b) Will reject a proposal for award if it determines that the
bidder recommended for award has engaged in corrupt or
fraudulent practices in competing for the contract in
question;
(c) Will declare a firm ineligible, either indefinitely or for a

stated period of time, to be awarded the Funding Agency
financed contract if it at any time determines that the firm
has engaged in corrupt or fraudulent practices in competing
for, or in executing, the Funding Agency financed contract.
39.2 Furthermore, Bidders shall be aware of the provision stated in

clause 26.2 and clause 63.5 of the General Conditions of
Contract, Part II Conditions of Particular Application.

For Roadwork Contracts ICB- 3
SECTION 3
BIDDING DATA
The following specific data for the Works to be procured shall complement, amend or supplement
the provisions in the Instructions to Bidders. Whenever there is a conflict, the provisions herein
shall prevail over those in the Instructions to Bidders.
INSTRUCTIONS TO BIDDERS CLAUSE REFERENCE
1.1 Summary of Works.
The Works in Contract # comprise the

......................................................................................................................
......................................................................................................................
.....................................................................................................
The Works includes the following: Earthworks

for excavation
Earthworks for embankments and sub-grade
Construction of granular sub-base
Construction of granular base
Construction of asphalt concrete surfacing Construction
of double bituminous surface treatment Construction of
cross-drainage structures consisting of:
Bridges
[insert details]
Box, Arch and Slab Culverts:
[insert details]
Pipe Culverts
[insert details]
[delete or amend as needed]

1.2
Time of Completion is days [insert a number multiple of 7].
2.1 The Borrower is the Government of the Federal Democratic Republic of

Ethiopia.
The Employer is the Ethiopian Roads Authority .

Bidding Documents
2.2 The Borrower has received a credit from-------------- (Insert the Name of
the Funding Agency) towards the cost of the
Project and intends to apply a portion of the proceeds of this credit to
eligible payments under the contracts for which this Invitation for Bids is
issued.
5.1 Pre-qualification information to be updated.
12.1 Bid language is the English language.
13.1 [Insert the list of documents]

Form of Bid,
Power of Attorney
Appendix to Bid, Bid
Security,
Priced Bill(s) of Quantities,
Alternative offers [delete if not invited],
Schedules of Supplementary information,
13.2 Bidders bidding for more than the present Contract shall indicate so in
their bid, together with any discount offered for the award of more than
one contract or lot [delete if not applicable].
14.4 The Contract is subject to price adjustment.
15.1 The currencies of the bid are in accordance with Clause 15, that is,
bidders quote entirely in local currency but specify the percentage of
foreign currency or currencies (up to three) they require.
15.2 Country of the Employer is Ethiopia.
15.2 Currency of the Employer’s country is the Ethiopian Birr (ETB).
16.1 Period of bid validity shall be 120 days after the date of bid opening.

For Roadwork Contracts ICB- 3
17.1 The amount of the bid security shall be a minimum of 1 percent of the Tender
Price.
18.1 This may not be applicable.
19.1 Venue, time, and date of the pre-bid meeting :

Venue: [to be specified]
Time: [to be specified]
Date: [to be specified]
20.1 Number of copies of the bid to be completed and returned:

One original plus usually three ; more copies if essential.
20.2(a) Employer’s address for the purpose of bid submission:

General Manager’s Office
Tel. No. 51-71-70/79
Fax No. 251-1-51-48-66
Telex 21180
20.2(b) The name and number of the present contract are [to be specified]
22.1 Deadline for submission of bids is [to be specified].
25.1 Venue, time, and date of bid opening :

Venue: [to be specified];
Time: [to be specified]; Date:
[to be specified].
30.2 Currency chosen for the purpose of converting to a common currency is

ETHIOPIAN BIRR
Source of exchange rate:
The exchange rate shall be the one established by the National Bank of
Ethiopia.
The exchange rate date shall be the date 28 days prior to the latest date for
submission of bids, as eventually amended by the Employer in accordance
with the provisions of Sub-Clause 22.2.

Bidding Documents
32.1 Domestic contractors will receive a margin of preference of 7.5% in bid
evaluation in accordance with Clause 32 of the Instructions to Bidders.
37.1 The Kind of the Performance Security Shall be Either one of the
following:
A Bank Guarantee unconditional with an amount of 10% performance
security.
Or
A Performance Bond conditional by a bonding or insurance company
with an amount of 30% performance Security.
38 [To confirm by ERA]
Method for dispute resolution – Disputes Review Expert or Board
Name of the Disputes Review Expert or proposed Board member by the

Employer (Curriculum Vitae enclosed): [to be specified].

Foe Roadwork Contract ICB – 2002 Part I – General Conditions of Contract
SECTION 4
PART I - GENERAL CONDITIONS
OF CONTRACT
Employer: The Ethiopian Roads Authority
Contract (insert name)
CONDITIONS OF CONTRACT
PART I - GENERAL CONDITIONS
The Conditions of Contract, Part I - General Conditions, shall be those forming Part I of
the “Conditions of Contract for Works of Civil Engineering Construction”, fourth edition
1987, reprinted in 1992 with any further amendments or subsequent editions, prepared by
the Federation Internationale des Ingenieurs-Conseils (FIDIC). These Conditions are
subject to the variations and additions set out in Part II hereof entitled “Conditions of
Particular Application”.
Copies of the FIDIC Conditions of Contract may be obtained
from: FIDIC Secretariat

P.O. Box 86
1000 Lausanne 12
Switzerland
Facsimile: 41 21 653 5432
Telephone: 41 21 653 5003

For Roadwork Contracts ICB – Part II – Conditions of Particular
SECTION 5
PART II: CONDITIONS OF PARTICULAR APPLICATION
TABLE OF CLAUSES
CLAUSE &SUB-CLAUSE NAMES PAGE NO.
Definitions..................................................................................................6
Sub-Clause 1.1 Definitions...........................................................................................................6
Sub-Clause 1.6 GENDER Specific Words..................................................................................7
Engineer & Engineer Representative.....................................................7

Sub-Clause 2.1 Engineer’s Duties and Authority......................................................................7
Sub-Clause 2.4 Appointment of Assistants................................................................................8
Sub-Clause 2.7 Site Meetings.......................................................................................................9
Sub-Clause 2.8 Minutes of Site Meetings...................................................................................9
Assignment and Subcontracting..............................................................9

Sub-Clause 4.1 Subcontracting...................................................................................................9
Sub-Clause 4.3 Domestic Preference...........................................................................................9
Contract Documents ..............................................................................10

Sub-Clause 5.1 Language and Law ..........................................................................................10
Sub-Clause 5.2 Priority of Contract Documents. ...................................................................10
Sub-Clause 6.3 Disruption of Progress - Contractor to Examine Designs in
Advance of the Works ...............................................................................................................10
Sub-Clause 6.4 No Extension of Time - Contractor to Proceed with Works ......................11
Sub-Clause 6.5 Failure by Contractor to Submit Drawings ..................................................11
Sub-Clause 6.6 Submission of Drawings for Approval ..........................................................12
Sub-Clause 6.7 Metric Units .....................................................................................................12
Sub-Clause 7.6 Approved Drawing to be modified ................................................................12
Sub-Clause 7.7 Size of Drawings .............................................................................................12

General Obligations ...............................................................................13

Sub-Clause 10.1 Performance Security ...................................................................................13
Sub-Clause 10.2 Validity of the Performance Security ..........................................................14
Sub-Clause 10.3 Claims under Performance Security ...........................................................14
Sub-Clause 10.4 Cost of Performance Security .....................................................................14
Sub-Clause 11.1 Inspection of Site ...........................................................................................14
Sub-Clause 11.2 Access to Data. ...............................................................................................14
Sub-Clause 14.1 Programme to Be Submitted ........................................................................14
Sub-Clause 14.2 Revised Programme .....................................................................................15
Sub-Clause 14.3 Cash Flow Estimate to be Submitted ..........................................................16
Sub-Clause 14.5 Supplementary Program ..............................................................................16
Sub-Clause 14.6 Contractor to Expose Drainage Structures ................................................17
Sub-Clause 15.1 Contractor’s Superintendent .......................................................................17
Sub-Clause 15.2 Language Ability of Contractor’s Representative .....................................17
Sub-Clause 16.1 Contractor’s Employees ..............................................................................17
Sub-Clause 16.3 Language Ability of Superintending Staff .................................................17
Sub-Clause 16.4 Employment of Local Personnel ..................................................................18
Sub – Clause 17.2 Unauthorized Work ...................................................................................18
Sub-Clause 17.3 Notice of Setting Out .....................................................................................18
Sub-Clause 19.1 Safety, Security, and Protection of the Environment ................................18
Sub-Clause 20.4 Employer’s Risks ...........................................................................................19
Sub-Clause 21.1 Insurance of Works and Contractor’s Equipment ....................................20
Sub-Clause 21.2 Scope of Cover. ..............................................................................................21
Sub-Clause 21.4 Exclusions ......................................................................................................21
Sub-Clause 23.1 Third Party Insurance (Including Employer’s Property). ........................21
Sub-Clause 23.2 Minimum Amount of Insurance ..................................................................21
Sub-Clause 24.2 Insurance Against Accident to Workmen ...................................................22
Sub-Clause 24.3 Liaison with Police, Labour Officers, etc. ..................................................22
Sub-Clause 25.1 Evidence and Terms of Insurance ...............................................................22
Sub-Clause 25.5 Source of Insurance ......................................................................................22
Sub-Clause 25.6 Insurance Notices ..........................................................................................22
Sub-Clause 25.7 Notification to Insurers .................................................................................23
Sub-Clause 26.2 Inspection and Audit by the Funding Agency ...........................................23
Sub-Clause 28.2 Royalties .........................................................................................................23
Sub-clause 28.3 Copyright .......................................................................................................24
Sub-Clause 29.1 Interference with trafic and adjoining properties ......................................24
sub-clause 29.3 Reinstatement and Compensation for Damage to Persons or
Property ......................................................................................................................................25
Sub Clause 29.4 Protection of Existing Works and Services .................................................25
Sub-Clause 29.5 Protection of Survey Beacons ......................................................................26
Sub-Clause 30.5 Extraordinary Traffic .................................................................................26
Sub-Clause 30.6 Facilities for other Contractor’s ................................................................26

Part II – Conditions of Particular Documents
Labour ....................................................................................................27
Sub-Clause 34.3 Compensation for injury ..............................................................................27
Sub-Clause 34.4 Costs covered .................................................................................................27
Sub-Clause 35.1 Returns of Labour and Contractor’s Equipment ......................................27
Commencement and Delays ..................................................................28

Sub-Clause 41.1 Commencement of Works ............................................................................28
Sub-Clause 44.1 Extension of time for Completion ...............................................................28
Sub-Clause 45.1 Restriction on Working Hours ...................................................................31
Sub-Clause 45.2 Overtime Working ........................................................................................32
Sub-Clause 46.2 Monthly Progress Reports ...........................................................................32
Sub-Clause 47.3 Bonus for Early Completion ........................................................................32
Sub-Clause 47.4 Currency of Liquidated Damages ...............................................................32
Sub-Clause 48.2 Taking over of Sections or Parts ..................................................................32
Sub-Clause 48.3 Substantial Completion of Parts ..................................................................33
Sub-Clause 49.5 Defects Liability Period of Replacements etc .............................................33
Alterations, Additions and Omissions ..................................................33

Sub-Clause 51.3 Design of Variations .....................................................................................33
Sub-Clause 52.1 Valuation of Variations ................................................................................34
Sub-Clause 52.2 Power of Engineer to Fix Rates ...................................................................35
Sub-Clause 52.3 Variations Exceeding 15 Percent .................................................................35
Sub-Clause 52.4 Dayworks .......................................................................................................35
Sub-Clause 53.1 Notice of Claims ............................................................................................36
Sub-Clause 53.2 Contemporary Records ................................................................................36
Contractor’s Equipment ,Temporary Works and Materials ............37

Sub-Clause 54.1 Contractor’s Equipment, Temporary Works, and Materials:
Exclusive Use for the Works .....................................................................................................37
Sub-Clause 54.9 Contractor’s Responsibilities for Licenses .................................................37
Sub-Clause 54.10 Equipment and Plant ..................................................................................37
Measurement ..........................................................................................38
Sub-Clause 55.2 Omissions of Quantities ................................................................................38
Sub-Clause 57.1 Method of Measurement. .............................................................................38
Sub-Clause 58.5 Provisional Items ...........................................................................................38
Sub-Clause 59.3 Design Requirements to be Expressly Stated .............................................38
Sub-Clause 59.5 Certification of Payments to Nominated Sub-Contractors .......................38
Certificates and Payment ......................................................................39

Clause 60 Certificates and Payment. ........................................................................................39
Sub-Clause 60.1 Monthly Statements ......................................................................................39
Sub-Clause 60.2 Monthly Payments ........................................................................................40

Sub-Clause 60.3 Materials and Plant for the Permanent Works ..........................................41
Sub-Clause 60.4 Place of Payment ...........................................................................................42
Sub-Clause 60.5 Retention Money ...........................................................................................42
Sub-Clause 60.6 Payment of Retention Money .......................................................................42
Sub-Clause 60.7 Advance Payment ..........................................................................................43
Sub-Clause 60.8 Time For Payment and Interest ...................................................................44
Sub-Clause 60.9 Correction of Certificates .............................................................................45
Sub-Clause 60.10 Statement at Completion ............................................................................45
Sub-Clause 60.11 Final Statement ...........................................................................................45
Sub-Clause 60.12 Discharge .....................................................................................................46
Sub-Clause 60.13 Final Payment Certificate ..........................................................................46
Sub-Clause 60.14 Cessation of Employer’s Liability .............................................................47
REMEDIES ............................................................................................47
Sub-Clause 63.1 Default of Contractor ...................................................................................47
Sub-Clause 63.2 Valuation at Date of Expulsion ...................................................................47
Sub-Clause 63.3 Payment after Expulsion ..............................................................................48
Sub-Clause 63.4 Assignment of Benefit of Agreement ...........................................................48
Sub-Clause 63.5 Corrupt or Fraudulent Practices .................................................................48
Special Risks ...........................................................................................48

Sub-Clause 65.2 Special Risks ..................................................................................................48
Sub-Clause 65.4 Projectile, Missile ..........................................................................................49
Settlement of Disputes ..........................................................................49

Sub-Clause 67.1 Settlement of Disputes ..................................................................................49
Notices .....................................................................................................49
Sub-Clause 68.2 Notice to Employer and Engineer ...............................................................49
Default of Employer ..............................................................................49

Sub-Clause 69 Default of Employer .........................................................................................49
Sub-Clause 69.1 Default of Employer .....................................................................................49
Sub-Clause 69.3 Payment on Termination ..............................................................................50
Sub-Clause 69.4 Contractor’s Entitlement to Suspend Work ...............................................50
Sub-Clause 69.5 Resumption of Work .....................................................................................50
Sub-Clause 69.6 Suspension of Funding Agency’s Loan or Credit ......................................50
Changes in Cost and Legislation ..........................................................51

Sub-Clause 70 Changes in Cost and Legislation ....................................................................51
Sub-Clause 70.1 Price Adjustment ..........................................................................................51
Sub-Clause 70.2 Other Changes in Cost ..................................................................................51
Sub-Clause 70.3 Adjustment Formulae ...................................................................................51

Sub-Clause 70.4 Sources of Indices and Weightings ..............................................................52

Sub-Clause 70.5 Base, Current and Provisional Indices ........................................................52
Sub-Clause 70.6 Adjustment after Completion ......................................................................53
Sub-Clause 70.7 Weightings .....................................................................................................53
Sub-Clause 70.8 Subsequent Legislation .................................................................................53
Currency and Rates of Exchange .........................................................54

Sub-Clause 72.2 Currency Proportions ...................................................................................54
ADDITIONAL CLAUSES ....................................................................54

Sub-Clause 73.1 Foreign Taxation ...........................................................................................54
Sub-Clause 73.2 Local Taxation ...............................................................................................54
Sub-Clause 73.3 Income Taxes on Staff ..................................................................................55
Sub-Clause 74.1 Illegal Payments ............................................................................................55
Sub-Clause 75.1 Termination of Contract for Employer’s Convenience .............................55
Sub-Clause76.1 Restrictions On Eligibility ............................................................................55
Sub-Clause 77.1 Joint and Several Liability ...........................................................................56
Sub-Clause 78.1 Importation and Use of Dangerous Materials ............................................56
Sub-Clause 79.1 Details to be Confidential ............................................................................57
Sub-Clause 80.1 Official Visitors .............................................................................................57
Sub-Clause 81.1 Legal Provisions ............................................................................................57

PART II: CONDITIONS OF PARTICULAR APPLICATION
DEFINITIONS
SUB-CLAUSE 1.1
DEFINITIONS (a) The “Funding Agency ” includes any International Financial
Agency, which lends or makes a grant to the Employer for
the execution of the mentioned project.
(i) The Employer is the party stipulated in the Appendix

to Bid.
(iv) The Engineer is the party stipulated in the Appendix to

Bid.
Amend sub-paragraph (a) (iv) also by adding the following

words after the word “Conditions”:
“Or any other competent person appointed by the Employer, and

notified to the Contractor, to act in replacement of the
Engineer.”
Amend sub-paragraph (b) (v) of Sub-Clause 1.1 by adding the

following words at the end:
“The word ‘bid’ is synonymous with ‘tender,’ and the words
‘Appendix to Bid’ with ‘Appendix to Tender,’ and the words
‘Bid documents’ with ‘tender documents’.”
Add Sub-Clause 1.1 (f) (vii) (Add the following after ...Site.)
The aforesaid includes lands, waters, riverbeds and other places

on, under, in or through which the Works are to be carried out
including all offices, workshops or places where materials are to
be stored or used for the purposes of the Contract.
Add Sub-Clause 1.1 (g) (v):

“(g) (v) Dates shall be construed in accordance with the

Gregorian Calendar.”
SUB-CLAUSE 1.6 Add the following Sub-Clause

GENDER 1.6
SPECIFIC WORDS
“Whenever in the Contract Documents the word ‘men’ is used
directly or as a suffix it means ‘woman’ or ‘women’ also. The
word ‘he’ includes ‘she’ also.”
ENGINEER & ENGINEER REPRESENTATIVE
SUB-CLAUSE 2.1 With reference to Sub-Clause 2.1 (b), the following provision
ENGINEER’S shall also apply:
DUTIES AND
AUTHORITY The Engineer shall obtain the specific approval of the Employer
before taking any of the following actions specified in Part I,
such approval to be copied to the Contractor:
(a) Consenting to the subletting of any part of the Works

under Clause 4;
(b) Certifying additional cost determined under Clause 12 or

Clause 53;
(c) Determining an extension of time under Clause 44;
(d) Issuing a variation under Clause 51, except:
(i) In an emergency situation, as reasonably

determined by the Engineer; or
(ii) If such variation would increase the Contract Price by

less than the amount stated in the Appendix to Bid;
(e) Issuing any variation, if the sum of all variations

issued has exceeded 5% of the Contract Price;
(f) Certifying payment if the Contract Price will be exceeded;
(g) Issuing any Taking-Over Certificate;

(h) Authorizing the use of Provisional Sums in excess of the

monetary limit for variations;
(i) Certifying additional payment under Clause 65; and
(j) Major changes to the Design and/or Specifications.

Minor changes to be notified to the Employer
within 7 days.
If, in the opinion of the Engineer, an emergency occurs
affecting the safety of life or of the Works or of an 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 to 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 of the Employer, with any
such instruction of the Engineer. 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.
SUB-CLAUSE 2.4
APPOINTMENT (Add as a paragraph to the existing
OF ASSISTANTS
clause)
Assistants and inspectors are not authorized to accept work, to

accept materials, to issue instructions, or to give advice that is
contrary to the contract. Work done or material furnished,
which does not meet the contract requirements, shall be at the
Contractor’s risk and shall not be a basis for a claim even if the
inspectors or assistants purport to change the contract.
Assistants and inspectors may advise the Contractor of any

faulty work or materials or infringements of the terms of the
contract; however, failure of the Engineer or the assistants or
inspectors to advise the Contractor does not constitute
acceptance or approval.

SUB-CLAUSE 2.7
SITE MEETINGS Add the following Sub-Clause 2.7:
“It is the duty of the Contractor or his Representative to

participate in the Site Meetings. The Employer and the Funding
Agency are also entitled to attend the Site Meeting through
their representatives when ever they require.
The purpose of the Site Meetings is to co-ordinate the Works

with the Contractor, to register the time in relation to the
Program and to record agreements made.
The Engineer shall arrange for the first Site Meeting where
future meetings shall be scheduled on a regular basis.”
SUB-CLAUSE 2.8
MINUTES OF Add the following Sub-Clause
SITE MEETINGS 2.8
“Minutes of the Site Meetings should be recorded. The Minutes

of the Site Meetings shall be issued within 14 calendar days and
shall be numbered consecutively. Minutes shall be deemed to
have been received by the Contractor unless the Contractor
gives notice at the following meeting that the Minutes were not
received.
Any objections to the Minutes of a Site Meeting shall be raised

in writing prior to the succeeding Site Meeting. If the
Contractor at this time has not received the Minutes of the Site
Meeting, the objection must be given in writing to the Engineer
not later than seven (7) working days after the subsequent
receipt of the said Minutes.”
ASSIGNMENT AND SUBCONTRACTING
SUB-CLAUSE 4.1
SUBCONTRACTING Replace the first sentence of sub-clause 4.1 with the following:
“The Contractor shall not subcontract more than forty percent
(40%) of the Works”.
SUB-CLAUSE 4.3
DOMESTIC Add the following Sub-Clause
PREFERENCE 4.3
If the Contractor consists of a joint venture of domestic and

foreign firms which is awarded the contract through the
application of the 7½-percent domestic preference, the

Contractor shall
not, without
express approval
of the Employer,

modify the profit and loss distribution and work-sharing

characteristics of the joint venture with which it satisfied the
criteria of eligibility for being awarded the Contract with the
application of the domestic preference.
CONTRACT DOCUMENTS
SUB-CLAUSE 5.1
LANGUAGE AND a) The language is stipulated in the Appendix to Bid.
LAW
b) The law is that in force in the country stipulated in the
Appendix to Bid.
SUB-CLAUSE 5.2
PRIORITY OF Delete the documents listed 1-6 and substitute:
CONTRACT (1) The Contract Agreement (if completed);
DOCUMENTS
(2) The Letter of Acceptance
(3) The Bid, the Appendix to the Form of Bid, and the Bid
Addendum including the Minutes of Negotiation
(4) The Conditions of Contract, Part II;
(5) The Conditions of Contract, Part I;
(6) Method of Measurement
(7) The Special Specifications
(8) The Standard Specifications
(9) The Drawings;
(10) The Priced Bill of Quantities
(11) Other documents, as listed in the Appendix to Bid
SUB-CLAUSE 6.3 Amend Clause 6.3 to read as follows:

DISRUPTION OF "The designs for this project have been prepared by the
PROGRESS - Employer in accordance with current engineering practice.
CONTRACTOR TO Never-the-less, clarification or revision of the designs may
EXAMINE become necessary in order to rectify inconsistencies or
DESIGNS IN discrepancies between the original design assumptions
ADVANCE OF THE including materials investigations, topographical surveys
WORKS and setting-out marks, and their interpretation that were
used in the design of the Works, and the actual conditions
encountered on the Site during the course of the Works.
(a) Therefore, immediately on being granted possession of
the Site, the Contractor shall examine the adequacy of
the
designs for the project in terms of materials

information, setting out marks, topographical surveys,
Drawings and Bills of Quantities and shall give notice to
the Engineer at least 120 days in advance of actual
constructional requirements, with a copy to the Employer,
of any inconsistencies or discrepancies in the designs
which are likely to delay or disrupt the planning or
execution of the Works unless further drawings or
instructions are issued by the Engineer. As the Works
progress, the Contractor shall review the adequacy of the
designs at six (6) monthly intervals.
(b) Within 90 days of the said notice, the Engineer, in
consultation with the Employer, shall issue any
clarification or revision of the designs for the project that
is required in order to rectify inconsistencies or
discrepancies between the original design assumptions
including materials investigations, topographical surveys
and setting-out marks, and their interpretation that were
used in the design of the Works, and the actual conditions
encountered during the said examination of the original
designs or during the course of the Works.”
(c) The Contractor shall provide the necessary personnel,
facilities, equipment, vehicles and support staff to undertake
all necessary investigations and calculations for such
examinations of the designs.
SUB-CLAUSE 6.4 Amend Sub-Clause 6.4 to read as follows:

NO EXTENSION “If, within the time stated above, the Engineer fails to issue,
OF TIME - any clarification, drawing or instruction for which notice
CONTRACTOR TO has been given by the Contractor in accordance with Sub-
PROCEED WITH Clause 6.3, the Contractor shall, after giving fourteen
WORKS (14) days’ notice to the Engineer, proceed in accordance
with the existing designs and shall not be entitled to any
extension of time for such failure by the Engineer.”
SUB-CLAUSE 6.5 Amend Clause 6.5 to read as follows:

FAILURE BY “If the failure or inability of the Engineer to issue any
CONTRACTOR drawings or instructions is caused in whole or in part by the
TO SUBMIT failure of the Contractor to submit drawings, specifications
DRAWINGS or other documents which he is required to submit under the
Contract, the Engineer shall take such failure by the
Contractor into account when making his statement of
amounts due and payable to the Contractor in accordance
with Sub-Clause 60.2.”

SUB-CLAUSE 6.6
SUBMISSION OF Add the following as Sub-Clause 6.6:
DRAWINGS FOR
"All detailed working drawings, design calculations and
APPROVAL
fabrication drawings for Temporary Works (such as form work,
staging, centering, scaffolding, specialized construction,
handling and launching equipment and the like) as well as bar
bending and cutting schedules for reinforcement, material
lists for structural fabrication as well as detailed drawings for
templates and anchorage and temporary support details for
prestressing cables etc. shall be prepared by the Contractor at
his own cost and forwarded in triplicate to the Engineer at least
six weeks in advance of actual constructional requirements.
The Engineer will check and return one copy of the same
for the Contractor’s use with amendments, if any, after
discussion and agreement with Contractor. Such approval shall
not relieve the Contractor of any of his responsibilities in
connection with Temporary Works. The Contractor will
supply three copies of the approved drawings for the
Engineer’s use. The cost of preparing all such items of work
shall be deemed to have been included in the respective
rates/prices quoted by the Contractor in the Bill of Quantities."
SUB-CLAUSE 6.7 All units used in the Contract shall be metric and for
METRIC UNITS measurement of angles the 400 grades systems shall be used.
SUB-CLAUSE 7.6
APPROVED Should it be found at any time after approval has been given
DRAWING TO BE by the Engineer to any drawings submitted by the
MODIFIED
Contractor that the said drawings do not comply with the
terms and conditions of the Contract, or that the details
do not agree with any drawings submitted previously, such
alterations and additions as may be deemed necessary by the
Engineer shall be made therein by the Contractor and the
work carried out accordingly without extra payment to the
Contractor therefore.
SUB-CLAUSE 7.7 All drawings submitted by the Contractor shall for

SIZE OF convenience in filing be as far as possible of a uniform size
DRAWINGS being not more than 101cm x 68cm overall (A1 size). The
drawings shall be numbered and dated, and shall include the
title of the Contract at the bottom of the drawing followed by
the title of the drawing concerned. All drawings shall have
the appropriate scales drawn on them and notes shall be in

English. All amendments to such drawings shall be

noted and dated on the drawing.
GENERAL OBLIGATIONS
SUB-CLAUSE 10.1
PERFORMANCE Replace the text of Sub-Clause 10.1 with the following:
SECURITY
"The Contractor shall provide security for his proper
performance of the Contract to the Employer within 28
days after the receipt of the Letter of Acceptance. The
performance security shall be in the form of a bank guarantee or
performance bond, as stipulated by the Employer in the
Appendix to Bid. The performance security shall be
denominated in the types and proportions of currencies in
which the Contract Price is payable. The Contractor shall
notify the Engineer when providing the performance security
to the Employer.
"If the performance security is a bank guarantee, it shall be

issued either (a) by a bank located in the country of the
Employer or a foreign bank through a correspondent bank
located in the country of the Employer, or (b) directly by a
foreign bank which has been determined in advance to be
acceptable to the Employer.
"If the performance security is a performance bond, it shall be

issued by a bonding or insurance company acceptable to the
Employer.
"Without limitation to the provisions of the preceding

paragraph, 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."

SUB-CLAUSE 10.2
VALIDITY OF THE The performance security shall be valid until a date 28 days
PERFORMANCE from the date of issue of the Taking-Over Certificate. The
SECURITY security shall be returned to the Contractor within 14 days of
expiration.
SUB-CLAUSE 10.3 Delete Sub-Clause 10.3.

CLAIMS UNDER
PERFORMANCE
SECURITY
SUB-CLAUSE 10.4
COST OF The cost of complying with the requirements of this
PERFORMANCE clause shall be borne by the Contractor.
SECURITY
SUB-CLAUSE 11.1
INSPECTION OF Add the following new paragraph at the end of Sub-clause 11.1:
SITE
“Whenever an opinion or interpretation of data 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 or
interpretation and the Employer shall in no manner be liable in
this behalf. 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.”
SUB-CLAUSE 11.2
ACCESS TO DATA Add new Sub-clause 11.2:
“Data made available by the Employer in accordance with Sub-

Clause 11.1 shall be deemed to include data listed elsewhere in
the Contract as open for inspection at the address stipulated in
the Appendix to Bid.”
SUB-CLAUSE 14.1
PROGRAMME TO Add the following at the end of Sub-Clause 14.1
BE SUBMITTED
“The time within which the programme shall be submitted shall
be the number of days stipulated in the Appendix to Bid."

Unless otherwise agreed, the program shall be generally

based on the program submitted with the Bid and shall include
(i) Critical Path Method (CPM) analysis of various

activities from commencement of work to completion.
(ii) Bar chart showing proposed execution of quantities of

principal items of work, which shall not be unbalanced
The program shall be related to the capability of
equipment proposed to be deployed and site conditions.
(iii) Proposed deployment of principal items of equipment,

materials, and labour, every month.
(iv) Proposal for purchase/hire of equipment, every month,

along with program for their procurement.
(v) A general description of the arrangements and methods

which the contractor proposes to adopt for the execution
of works, giving program of tests to be carried out
before, during and after execution of each item of work.
If the Engineer deems the work program submitted by the

Contractor incomplete/improper, the Contractor will have 14
days to resubmit it to the Engineer’s satisfaction. Until then,
the requirement to commence the work at site (Clause 41.1)
shall be deemed unfulfilled.”
The Contractor’s attention is particularly drawn to the need to

familiarize himself with customs procedures in connection with
importation, and to allow sufficient time in its programme
for these to be completed.
SUB-CLAUSE 14.2 Add to Sub-Clause 14.2 the following:
REVISED The Contractor shall, when instructed by the Engineer, amend,
PROGRAMME correct or modify the Program of Work so as to take into
account any delays and/or advances and modifications designs
or for other reasons considered necessary by the Engineer.
If, during the progress of the work, the quantities of work

performed per month fall below those shown in the program, or
if the sequence of operations is altered, or if the program
is deviated from in any other way, the Contractor shall,
within two weeks after being notified by the Engineer, submit
a revised programme so as to take into account any delays
or advances or for other reasons considered necessary by
the

Engineer without prejudice to the Employer’s right under

Clause 63 of the General Conditions of Contract.
If the program is to be revised by reason of the Contractor

falling behind his program, he shall produce a revised program
showing the modifications to the original program, necessary to
ensure completion of the works or any part thereof within the
time for completion as defined in Clause 43 of the General
Conditions of Contract or any extended time granted pursuant
to Clause 44 of the General Conditions of Contract. Any
proposal to increase the tempo of work must be accompanied
by positive steps to increase production by providing more
labour and plant on Site, or by using the available labour and
plant in a more efficient manner.
Should the Employer request and the Contractor undertake to

finish the whole or part of the Works ahead of the time
originally required by the Contract, payment for
accelerating the work shall only be made if agreed to
beforehand in writing and according to the terms of such
agreement.
The Employer shall have the right to withhold payment for

late submission of any programme, as stated in the Appendix to
Bid. This amount will be payable within 60 days after
submittal of the program
SUB-CLAUSE 14.3
CASH FLOW Delete “if required to do so by the Engineer” and replace with:
ESTIMATE TO BE
“and each time the construction programme is revised and
SUBMITTED
submitted under sub-clause 14.1.”
SUB-CLAUSE 14.5 The Contractor shall submit supplementary programs to the

SUPPLEMENTARY Engineer. The supplementary program shall be consistent in all
PROGRAM respects with the time and order-of-work requirements of the
Contract and based upon the portions of the Works already
completed at the submission thereof. Supplementary programs
shall not be requested at less than monthly intervals.

SUB-CLAUSE 14.6
Add the following as Sub-Clause 14.6:
CONTRACTOR TO
EXPOSE “The detailed designs for repair and rehabilitation works at drainage
DRAINAGE structures will be prepared by the Engineer following the de-silting,
STRUCTURES cleaning or exposure of the component parts of the structures by the
Contractor. Therefore, the Contractor should make due allowance in
his programme and sequence of operations for the time required by
the Engineer to issue appropriate instructions regarding the nature of
any repairs required, and the time to import any specialised repair
materials or equipment. The Contractor shall not decline to carry out
such de-silting, cleaning or exposure work, or claim additional costs
for such work, on the grounds that it is remote from, or in advance of,
his other construction activities.”
SUB-CLAUSE 15.1 Add the following at the end of the first paragraph of Sub-
CONTRACTOR’S Clause 15.1
SUPERINTENDENT
The contractor shall, within seven (7) days of receipt of the
Engineer’s Order to commence the Works, confirm to the
Engineer in writing, the name of the contractor’s
Representative and the anticipated date of his arrival on site.
SUB-CLAUSE 15.2
LANGUAGE Add the following Sub-Clause 15.2:
ABILITY OF
“The Contractor’s authorized representative shall be fluent in
CONTRACTOR’S
both the written and spoken language specified in the Appendix
REPRESENTATIVE
to Bid.”
SUB-CLAUSE 16.1
CONTRACTOR’S Add the following Sub-Clause 16.1
EMPLOYEES (c):
“ The Contractor shall not replace or remove its key personnel

engaged in the performance of the Works without approval from
the Employer which shall not be unreasonably withheld.
Replacement shall be by a competent substitute approved by the
Engineer and at the Contractor’s own expense.”
SUB-CLAUSE 16.3
LANGUAGE Add the following Sub-Clause
ABILITY OF 16.3:
SUPERINTENDING
“A reasonable proportion of the Contractor’s superintending
STAFF
staff shall have
a working
knowledge of
the language
specified in the
Appendix to
Bid, or the
Contractor shall
have available
on

site at all times a sufficient number of competent interpreters

to ensure the proper transmission of instructions and
information.”
SUB-CLAUSE 16.4
EMPLOYMENT OF Add the following Sub-Clause
LOCAL 16.4
PERSONNEL
“The Contractor is required, to the extent practicable and
reasonable, to employ staff and labour with appropriate
qualifications and experience from sources within the country of
SUB – CLAUSE the Employer stipulated in the Appendix to Bid.”
17.2 Add the following sub-clause:
UNAUTHORIZED
WORK “Any work done in addition to that required by the Contract or
instructed by the Engineer shall not be paid.”
SUB-CLAUSE 17.3 Without prejudice to the other requirements of Clause 17, the
NOTICE OF Contractor shall give to the Engineer, if required, not less than
SETTING OUT 48 hour's notice of his intention to set out or give levels for any
part of the Works, so that arrangement may be made for
checking or issuing instructions.
SUB-CLAUSE 19.1 Add the following paragraph:

SAFETY,
SECURITY, AND (d)Be responsible for dealing with water, whether from existing
PROTECTION OF drainage systems, water courses, underground springs or any
THE other source or cause. In discharging and diverting water, he
ENVIRONMENT shall avoid flooding or damaging other works or services,
causing erosion and/or pollution of watercourses. In
addition, the Contractor shall take appropriate steps to
prevent soil erosion and keep the Site and borrow areas
free from flooding.
(e)Notwithstanding the Contractor’s obligations under sub-

paragraphs (a), (b) and (c) of the Sub-Clause 19.1 of the
Conditions of Contract, the Contractor shall observe, without
limitation to, the following measures with a view to reducing
or eliminating adverse environmental effects by the Works:
(i) All quarries and borrow pits shall be filled and

landscaped to their original state after extraction of

constr
uction
materi
al.

(ii) Soil erosion due to the surface runoff or water from

culverts or other drainage structures should be avoided
by putting in place proper erosion control measures that
shall include, but not limited to, grassing and planting
of trees.
(iii) Long traffic diversion roads shall be avoided so as to

minimize the effect of dust on the surrounding
environment. In any case, all diversions shall be kept
damp and dust-free.
(iv) Haulage routes shall be kept as short as possible, and

watered as necessary.
(v) Spillage of oil, fuel and lubricants shall be avoided.

And if spilt, it shall be collected and disposed of in such
a way as not to adversely affect the natural
environment.
(vi) Rock-blasting near settlement areas shall be properly

coordinated with the relevant Authority in an attempt to
minimize levels of noise pollution and community
interference.
(vii) The Contractor shall make every reasonable endeavor
both by means of temporary works and by the use of
appropriate plant or silencing devices to ensure that
the level of noise resulting from the execution of the
Works does not constitute a nuisance.
SUB-CLAUSE 20.4
EMPLOYER’S Amend Sub-Clause 20.4 to read as follows:
RISKS
“The Employer’s risks are limited to the following;
a) Insofar as they directly affect the execution of the Permanent

Works in Ethiopia:
(i) War and hostilities (whether war be declared or not),

invasion, act of foreign enemies;
(ii) Rebellion, acts of terrorism, revolution, insurrection,

or military or usurped power, or civil war,
international embargo.

(iii) Ionizing, radiation, or contamination by

radioactivity from any nuclear fuel, or from any
nuclear waste from the combustion of nuclear fuel,
radioactive toxic explosive or other hazardous
properties of any explosive nuclear assembly or
nuclear component thereof;
(iv) Pressure waves caused by aircraft or other aerial

devices traveling at sonic or supersonic speeds;
(v) Riot, commotion or disorder, unless solely

restricted to the employees of the Contractor or of his
Subcontractors and arising from the conduct of the
Works;
b) Loss or damage due to the use or occupation by the

Employer of any Section or part of the Permanent
Works, except as may be provided for in the Contract;
c) Loss or damage to the extent that it is due to the design of

the Works, other than any part of the design provided by the
Contractor or for which the Contractor is responsible; and
d) Any operation of the forces of nature (insofar as it occurs

on the Site) which an experienced contractor:
i. Could not have reasonably foreseen, or
ii. Could reasonably have foreseen, but against which he

could not reasonably have taken at least one of the
following measures:
(A) Prevent loss or damage to physical property

from occurring by taking appropriate
measures, or
(B) Insure against such loss or damage.”
SUB-CLAUSE 21.1
INSURANCE OF Add the following words at the end of sub-paragraph (a) and
WORKS AND immediately before the last word of sub-paragraph (b) of
CONTRACTOR’S Sub- Clause 21.1:
EQUIPMENT
“it being understood that such insurance shall provide for
compensation to be payable in the types and proportions of

currencies required to rectify the loss or damage incurred,”

SUB-CLAUSE 21.2
Amend sub-paragraph (a) of Sub-Clause 21.2 by deleting the
SCOPE OF COVER
words “from the start of work at the Site” and by substituting
therefore the words “from the first working day after the
Commencement Date.”
Add the following as sub-paragraph (c) under Sub-Clause 21.2:
c) It shall be the responsibility of the Contractor to notify the

insurance company of any change in the nature and extent
of the Works and to ensure the adequacy of the insurance
coverage at all times during the period of the Contract.
SUB-CLAUSE 21.4
EXCLUSIONS Amend Sub-Clause 21.4 to read as follows:
“There shall be no obligation for the insurance in Sub-Clause

21.1 to include loss or damage caused by the risks listed under
Sub-Clause 20.4 sub-paragraphs (a) (i) to (iv) of the
Conditions of Particular Application.”
SUB-CLAUSE 23.1 Add the following at the beginning of this Clause:

THIRD PARTY
INSURANCE “Prior to Commencement of the Works…”
(INCLUDING
EMPLOYER’S
PROPERTY)
SUB-CLAUSE 23.2 Sub-Clause 23.2 is amended to read as follows:

MINIMUM
AMOUNT OF (i) The Contractor shall whenever required produce to
INSURANCE the Engineer or the Engineer's Representative the
policy or policies of insurance and the receipts for
payment of the current premiums.
(ii) The provision of such insurance and the cost thereof
shall be in all respects at the expense of the
Contractor.
(iii) Such insurance shall be for at least the amount stated
in the Appendix to Bid with no limits to the number
of occurrences.

SUB-CLAUSE 24.2 Add the following at the end of this Clause:

INSURANCE
AGAINST “The provision of such insurance and the costs thereof shall be
ACCIDENT TO in all respects at the expense of the Contractor.”
WORKMEN
SUB-CLAUSE 24.3 Add to Clause 24 the following Sub-Clause

LIAISON WITH 24.3:
POLICE, LABOUR
OFFICERS, ETC. The Contractor shall keep in close contact with the Police,
Labour Officers and all other officials as appropriate regarding
their requirements for the control of workmen, restricted area
permits, passage through townships, or other matters and shall
provide all assistance and facilities which may be required
by such officials in the execution of their duties.
Amend Sub-Clause 25.1 by inserting the words “as soon as

SUB-CLAUSE 25.1
practicable after the respective insurance has been taken out but
EVIDENCE AND
in any case” before the words “prior to the start of work at the
TERMS OF
Site.”
INSURANCE
and Add at the end of the
paragraph:
“Insurance Policies shall include a clause forbidding both

the Contractor and the Insurer to modify the terms and
conditions of the insurance policies without the prior approval
of the Employer.”
SUB-CLAUSE 25.5
SOURCE OF Add the following Sub-Clause
INSURANCE 25.5:
“The Contractor shall place all insurance relating to the

Contract (including, but not limited to, the insurance referred to
in Clauses 21, 23, and 24) with insurers from any eligible
source country acceptable by the Funding Agency and the
Employer.”

INSURANCE 25.6
NOTICES

Each policy of
insurance
effected by the
Contractor for
purpose of the
Contract shall
be renewable
and shall
include a
provision to
the effect that
the insurer
shall have a
duty to give
notice in
writing to the
Contractor
and Employer
of the date
when a

premium becomes payable not more than thirty (30)

days before that date and the policy shall remain in force until
thirty
(30) days after the giving of such notice.

NOTIFICATION 25.7
TO INSURERS
It shall be the responsibility of the Contractor to notify the
insurers under any of the insurance referred to in the preceding
Clauses 21, 23 and 24 on any matter or event which by the
terms of such insurance are required to be so notified and the
Contractor shall indemnify and keep indemnified the Employer
against all losses, claims, demands, proceedings, costs, charges
and expenses whatsoever arising out of or in consequence of
any default by the contractor in complying with the
requirements of this sub-clause whether as a result of avoidance
of such insurance or otherwise.
SUB-CLAUSE 26.2 Add this new Sub-Clause:

INSPECTION AND “The Contractor shall permit the Funding Agency to inspect
AUDIT BY THE the Contractor’s accounts and records relating to the
FUNDING performance of the Contract and to have them audited by
AGENCY auditors appointed by the Funding Agency, if so required by the
Funding Agency.” Replace Sub-Clause 28.2 by the following:
SUB-CLAUSE 28.2
ROYALTIES "The Employer shall be responsible for the assessment and
reimbursement of payment of compensation in respect of land to
be appropriated and incorporated in the works within the
site together with all buildings, crops, trees and any other
properties so defined from the land.
The Employer shall be responsible for agreement and payment

of compensation and any royalties in respect of land
temporarily occupied, soil areas, working areas, the extraction
of material from borrow pits and quarries, road diversions and
sites for Contractor’s and Engineer’s accommodation, where
such land or area is not within the site.
The Employer shall be responsible for agreement and payment
of compensation and any royalties in connection with the
dumping of part or all of any such material."

SUB-CLAUSE
28.3 COPYRIGHT Add the following Sub-Clause
28.3:
“The Copyright of all documents and drawings prepared by or

on behalf of the Contractor in connection with the Works shall
SUB-CLAUSE 29.1 be the property of the Employer”.
INTERFERENCE
WITH TRAFIC
In sub-clause 29.1 (b) add the words “railway and any other
AND ADJOINING
right of way” add after the word “private roads.”
PROPERTIES
Add the following Sub-clause:
29.1 (c) “The Contractor shall maintain two-way traffic during

construction, unless otherwise approved. The Contractor shall
build, maintain in a safe condition, keep open to traffic, and
remove when no longer needed:
(i) Detours and detour bridges, culverts including pipe

culverts, that will accommodate traffic diverted from the
roadway or bridges, culverts, pipe culverts during
construction.
(ii) Detour crossings of intersecting highways,

and
(iii) Temporary approaches.
The Engineer shall approve all detour(s), and structure,

surfacing and paving shall be sufficient to meet traffic
requirements and shall be approved by the Engineer.
Within 28 days prior to the commencement of any Permanent

Works, the Contractor shall submit to the Engineer and have
been approved by the Engineer the Traffic Management plan
provided with its Bid. The Traffic Management plan shall
indicate what measures will be implemented to manage the
traffic while works are underway. Such a system shall describe,
in the form of sketch accompanied by narrative details, the
sequence of signs, diversions, lighting, fence, etc., to be applied
to each section of road. The Traffic Management plan shall be
approved by the Engineer before the start of works on any
section of road. In case of default on the part of the Contractor
in implementing such Traffic Management plan, as approved
by the Engineer, an amount as stated in the Appendix to Bid
shall be withheld from the Interim Monthly Certificate.
In the event of deterioration due to climatic conditions or theft

of the
provisional
system of
signaling
installed by
the

Contractor, the Contractor will make good the diversion and/or

the signaling system within 24 hours after the event has been
reported by the Engineer to the Contractor.
SUB-CLAUSE The Contractor shall reinstate all properties whether public or

29.3 private which are damaged in consequence of the construction
REINSTATEMENT and maintenance of the works to a condition as specified and
AND at least equal to that prevailing before his first entry on them.
COMPENSATION
FOR DAMAGE TO If in the opinion of the Engineer the Contractor shall have
PERSONS OR failed to take reasonable and prompt action to discharge his
PROPERTY obligations in the matter of reinstatement the Engineer will
inform the Contractor in writing of his opinion, in which
circumstances the Employer reserves the right to employ others
to do the necessary work of reinstatement and to deduct the cost
thereof from any money due or which shall become due to the
Contractor.
The Contractor shall refer to the Employer without delay all

claims, which may be considered to fall within the provisions
of Sub-clause 22.1.
SUB CLAUSE 29.4 The Contractor shall acquaint himself with the position of all
PROTECTION OF existing services, such as sewers, surface water drains, cables
EXISTING for electricity and telephone, telephone and lighting poles,
WORKS AND water main and alike before commencing any excavation
SERVICES or other work likely to affect the existing service.
The Contractor will be held liable for all damage to roads,

Irrigation ditches, mains pipes, electric cables, lines or
services of any kind caused by him or his sub-contractors in
the execution of the Works. The Contractor must make good
any damage without delay and, if necessary, carry out any
further work ordered by the Engineer’s Representative 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 distance that high
voltage electricity can “short” to earth when crane, 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
clearance for the various voltages.

The Contractor shall be held responsible for injury to existing

works or services, and shall indemnify the Employer against
any claims in this respect (including consequential
damages) The Contractor shall be responsible for the
reinstatement of the services so affected, to the satisfaction of
the Engineer. In all cases where such works or services are
exposed, they shall be properly shared, hung up or otherwise
protected. Special care must be exercised in filling and
compacting the grounds under mains, cable, etc., and to leave
uncovered exposed water meters, stopcock boxes and similar
items.
As soon as any such existing works or services or structures are

encountered on, over, under, in or through the Site during the
performance of the Contract, the Contractor shall make a record
of the location and description of such service or structure and
shall send the same forthwith to the Engineer.
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 Not withstanding the foregoing
requirements, and without reducing the Contractor’s
responsibility, the Contractor shall inform the Engineer
immediately if any existing works or services are located,
exposed or damaged.
SUB-CLAUSE 29.5 The Contractor shall not remove, damage, alter or destroy in
PROTECTION OF any way plot beacons. Should the Contractor consider that any
SURVEY beacon will be interfered with by the Work he shall notify the
BEACONS Engineer who, if he considers it necessary, will make
arrangements for the removal and replacement of the beacons.
SUB-CLAUSE 30.5 Add Sub-Clause 30.5:

EXTRAORDINARY
TRAFFIC “Nothing contained above shall excuse the Contractor or any of
his Sub-Contractor(s) from complying with state laws
regulating traffic on highways and bridges.”
SUB-CLAUSE 30.6
FACILITIES FOR Add Sub-Clause 30.6:
OTHER “The Contractor shall be deemed to have fully familiarized
CONTRACTOR’S himself with the planned construction operations on any other
concurrent construction project in Ethiopia which may have any
adverse effect on the Contractor’s own operations. The
Contractor shall be deemed to have allowed for the effects of

other concurrent construction projects on any necessary

transportation operations in connection with the contract,
outside the confines of the Contract Site.”
LABOUR
SUB-CLAUSE 34.3
COMPENSATION Add the following Sub-Clause
FOR INJURY 34.3:
“The Contractor shall, in accordance with the Workman’s
Compensation Act of the law of Ethiopia and any other
regulations in force from time to time in Ethiopia, pay
compensation for loss or damage suffered in consequence of
any accident or injury or disease resulting from his work to any
workman or other person in the employment of the Contractor
SUB-CLAUSE 34.4 or any sub-Contractor.”
COSTS COVERED
Add the following Sub-Clause
34.4:
“The forgoing provisions of this Clause 34 shall apply to all

labour and personnel employed by the Contractor and his sub-
Contractors and costs, charges and expenses whatsoever that
may be incurred by the Contractor and all risks involved in
giving effect to the provisions of this clause including all
insurance, custom duties, medical or other fees, substance, home
or local leave, all other matters are deemed to be included in and
covered by the rates or sums inserted by the Contractor in the
SUB-CLAUSE 35.1 Bill(s) of Quantities.” [To check if there is such a pay item in
RETURNS OF the BOQ]
LABOUR AND
Add the following paragraph at the end of Sub-Clause 35.1:
CONTRACTOR’S
EQUIPMENT “Returns of Personnel and Equipment shall be submitted to the
Engineer’s Representative with each Monthly Statement.”

COMMENCEMENT AND DELAYS
SUB-CLAUSE 41.1
COMMENCEMENT Add the following at the end of the Sub-Clause.
OF WORKS
“The requirements to commence the works at site’ shall be
fulfilled if:-
a) Program has been submitted in accordance with Clause 14.1
b) The Contractor’s Technical Staff such as Site Manager(s),

Site Engineer(s), with other supporting staff are in position at
site;
c) Equipment, materials and labor for the work programmed for

execution in the first 2 months, have been mobilized at site.
SUB-CLAUSE 44.1 Add, at the end of (c) : Extension of time in terms of clause
EXTENSION OF 44.1(c) of the General Conditions of Contract in respect of
TIME FOR exceptional rainfall shall be determined in terms of method (i)
COMPLETION below, unless the Technical Specifications (Supplemental)
determine that method (ii) shall be used.
The extension of time that will be considered for a given

calendar month shall not exceed the number of calendar days in
that month less the average number of days in that month on
which a rainfall of Y mm or more per day has been recorded, as
derived from existing rainfall records.
Method (i) (Rainfall

formula)
The formula below shall be used to calculate separately

the delay for each calendar month or part thereof. It shall be
calculated each month during the period referred to in the
General Conditions of Contract as the time for completion of
the Works (including any extension thereof that may have been
granted), or until the issue date of the Taking-Over Certificate,
whichever is the shorter period. The delay calculated for a
given month shall be used to determine the interim extension of
time granted for that month. At the end of the applicable
period
referred to above, the aggregate of the monthly delays will be

taken into account for the final determination of the total
extension of time for the contract:
V = (Nw - Nn) + (Rw -Rn)

X
If any value of V is negative and its absolute value exceeds

Nn, then V shall be taken as equal to minus Nn.
The delay for a part of a month shall be calculated by

substituting pro rata values for the variables in the equation.
The symbols shall have the following

meanings:
V = Delay due to rain in calendar days in respect of the

calendar month under consideration.
Nw = Actual number of days during the calendar month on

which a rainfall of Y mm or more per day has been
recorded,
Rw = Actual rainfall in mm for the calendar month under

consideration.
Nn = Average number of days in the. relevant calendar month

(as derived from existing rainfall records provided in the
project specifications) on which a rainfall of Y mm or more per
day has been recorded.
Rn = Average rainfall in mm for the calendar month, as derived

from the rainfall records supplied in the Technical
Specifications (Supplemental).
X = 20, unless otherwise provided in the Technical

Specifications.
Y = 10, unless otherwise provided in the Technical

Specifications.
The total delay that will be taken into account for the
determination of the total extension of time for the Contract
shall be the algebraic sum of the monthly totals for the period

under consideration. But if the grand total is negative, the time

for completion shall not be reduced on account of abnormal
rainfall. The total extension of time for any calendar month
shall not exceed (Nc - Nn) calendar days, where Ne =
number of calendar days in the month under consideration.
The factor (Nw - Nn) shall be considered to represent a fair

allowance for variations from the average number of days
during which rainfall equals or exceeds Y mm per day.
The factor (Rw - Rn) + X shall be considered to represent a fair

allowance for variations from the average for the number of
days during which rainfall does not equal or exceed Y mm per
day, but when wet conditions prevent or disrupt work.
This formula does not take into account any flood damage,
which could cause further or concurrent delays and which shall
be treated separately in so far as extension of time is concerned
Accurate rain gauging shall be taken at a suitable point on

the site daily at 08:00 unless otherwise agreed to by the
Engineer, and the Contractor shall, at his own expense, take all
necessary precautions to ensure that the rain gauges cannot be
interfered with by unauthorized persons.
Information regarding existing rainfall records, if available

from a suitable rainfall station near the site, will be supplied in
the Technical Specifications (Supplemental), together with
calculations of rain delays for previous years in accordance
with the above formula. The average of these delays will be
regarded as normal rain delays, which the Contractor shall
accommodate in his programme, and for which no extension of
time will be considered.
If no suitable rainfall records are available, the above formula

will not apply,
Method (ii) (Critical-path method)
Where the critical-path method is specified in the Technical

Specifications (Supplemental) for determining extension of
time resulting from exceptional rainfall, it shall be applied
as follows:

A delay caused by inclement weather conditions will be

regarded as a delay only if, in the opinion of the Engineer, all
progress on an item or items of work on the critical path of the
working programme of the Contractor has been brought to a
halt. Delays on working days only (based on a five-day
working week) will be taken into account for the extension of
time, but the Contractor shall make provision in his programme
of work for an expected delay of "n" working days caused
by normal rainy weather, for which he will not receive any
extension of time. The value of "n" shall be given in the
Technical Specifications (Supplemental).
Extension of time during working days will be granted to

the degree to which actual delays, as defined above, exceed
the number of "n" workings days as mentioned in the
Technical Specifications (Supplemental).”
At the end of Sub-Clause 44.1 add the
following:
Neither rains falling within the rainy seasons as occurs in the

Employer's country, nor floods caused by such rains shall be
deemed exceptional weather conditions such as may fairly
entitle the Contractor to an extension of time for the completion
of the work. Similarly in respect of the provision of Clause 12
of these Conditions, neither such rains nor such floods shall be
deemed to be adverse physical conditions.
SUB-CLAUSE 45.1 Add the following to Sub-Clause

RESTRICTION ON 45.1 :
WORKING
HOURS If the Contractor requests for permission to work by day and
night and if the Engineer shall grant such permission, the
Contractor shall not be entitled to any additional payment for
so doing. All such work at night shall be carried out without
unreasonable noise or other disturbance and the Contractor
shall indemnify the Employer from and against any liability
for damages on account of noise or other disturbance created
while carrying out night work and from against all claims,
demands, proceeding, costs, charges and expenses whatsoever
in regard or in relation to such liability. In addition, the
Contractor shall be required to provide, for any work carried
out by night or recognised days of rest, adequate lighting
and other facilities, so that the work is carried out safely and
properly.
SUB-CLAUSE 45.2 Add the following Sub-Clause 45.2:

OVERTIME “Normal working hours shall be in accordance with the
WORKING Ethiopian Labour Laws. No work shall be allowed on Sunday
or Public Holidays, except with the permission of the Engineer.
For any hours in excess of the normal working hours the
Contractor shall be responsible for payments, for excess hours
worked by the staff of the Engineer, by means of deduction
made by the employer from payments due to the Contractor.
The Current recognized Public Holidays are as follows:
Christmas Day (January)
Epiphany (January)
Victory Day (March)
Patriots Victory Day
(May) Id-ul-Fitr
Good Friday
st
Labour Day (1 May)
Downfall of the Derg
(May) Id-ul-Dhar
th
Ethiopian New Year (11 September)
Birthday of the Prophet Mohammed.
Finding of the True Cross (Meskel) (September)”
SUB-CLAUSE 46.2
MONTHLY Add the following Sub-Clause 46.2
PROGRESS
“The Contractor shall submit four copies of a monthly progress
REPORTS
report to the Engineer during the first week of the month
following the report period. The format of the report shall be
agreed with the Engineer.”
SUB-CLAUSE 47.3
BONUS FOR No Bonus for early completion of the works shall be paid to the
EARLY Contractor by the Employer
COMPLETION
SUB-CLAUSE 47.4 Liquidated damages shall be paid by the Contractor of the

CURRENCY OF Employer in the types and proportions of currencies as shall be
LIQUIDATED payable to the Contractor under contract.
DAMAGES
SUB-CLAUSE 48.2
TAKING OVER OF Substitute Sub-Clause 48.2 (b) by the following:
SECTIONS OR
(b) Any substantial part of the Permanent Works, provided the
PARTS
continuous length is not less than that stated in the Appendix to

Bid, which has been both completed to the satisfaction of the

Engineer and, otherwise than as provided for in the Contract,
occupied or used by the Employer, or
SUB-CLAUSE 48.3 Add at the end of sub-clause 48.3 the following:
SUBSTANTIAL
COMPLETION OF “Parts or Sections of the Works shall be deemed to be
PARTS Substantially Completed when the Engineer determined that
the Employer has full and unrestricted use and benefit of the
facilities, and only minor ancillary roadwork, and removal
of temporary facilities, shall remain for the physical completion
of the Works.”
SUB-CLAUSE 49.5 Add Sub-Clause 49.5

DEFECTS
LIABILITY PERIOD “The provisions of this Clause shall apply to all replacements
OF or renewals of Plant, equipment etc. to be provided with respect
REPLACEMENTS to the utilities under the Contract, carried out by the Contractor
ETC. to remedy defects and damages as if the replacements and
renewals had been taken over on the date they were completed.
The Defects Liability Period for the Works shall be extended
by a period equal to the period during which the Works cannot
be used by reason of the defect or damage. If only part of
the Works is affected the Defects Liability Period shall be
extended only for that part.”
ALTERATIONS, ADDITIONS AND OMISSIONS
SUB-CLAUSE 51.3
DESIGN OF Add the following as Sub-Clause 51.3:
VARIATIONS
"The Contractor shall be entirely responsible for any
investigations and the preparation of all necessary preliminary
designs, design calculations, detailed designs, detailed working
drawings, fabrication drawings, bar bending and cutting
schedules for reinforcement, material lists for structural
fabrication etc. for any variation ordered by the Engineer and
shall forward the same in triplicate to the Engineer at least six
weeks in advance of actual constructional requirements.
The Engineer will check and return one copy of the same for the

Contractor’s use with amendments, if any, after discussion and

agreement with Contractor. Such approval shall not relieve the
Contractor of any of his responsibilities in connection with
design, construction or maintenance of the variation. The
Contractor will supply three copies of the approved drawings for
the Engineer’s use.
The cost of preparing all such items of work, including any

amendments required by the Engineer, shall be deemed to have
been included in the respective rates/prices agreed upon between
the Engineer and the Contractor in accordance with Clause 52.1.
Unless, and to the extent agreed by the Engineer in writing

prior to the execution of any variation, no extension of time
will be granted in respect of the variation and the cost of any
acceleration measures required to undertake the variation in
accordance with the current programme for the works shall be
deemed to have been included in the respective rates/prices
agreed upon between the Engineer and the Contractor in
accordance with Clause 52.1.
The Contractor shall accept all risks in respect of non-foreseeable

physical obstructions or conditions which may be encountered in
the planning, design and execution of any variation and shall not
be entitled to any extension of time or costs under Clause 12.2"
SUB-CLAUSE 52.1 Add final sentences as follows:

VALUATION OF
VARIATIONS “Where the Contract provides for the payment of the Contract
Price in more than one currency, and varied work is valued at,
or on the basis of, the rates and prices set out in the
Contract, payment for such varied work shall be made in the
proportions of various currencies specified in the Appendix to
Bid for payment of the Contract Price. Where the Contract
provides for payment of the Contract Price in more than one
currency, and new rates or prices are agreed, fixed, or
determined as stated above, the amount or proportion
payable in each of the applicable currencies shall be specified
when the rates or prices are agreed, fixed, or determined, it
being understood that in specifying these amounts or
proportions the Contractor and the Engineer (or, failing
agreement, the Engineer) shall take into account the actual or
expected currencies of cost (and the proportions thereof) of
the inputs of the varied work without
regard to the proportions of various currencies specified in the

Appendix to Bid for payment of the Contract Price.”
SUB-CLAUSE 52.2 Add a final sentence to the first paragraph, as follows:

POWER OF
ENGINEER TO “Where the Contract provides for the payment of the Contract
FIX RATES Price in more than one currency, the amount or proportion
when the rates or prices are agreed, fixed, or determined
as stated above, it being understood that in specifying these
amounts or proportions the Contractor and the Engineer (or,
failing agreement, the Engineer) shall take into account the
actual or expected currencies of cost (and the proportions
thereof) of the inputs of the varied work without regard to the
proportions of various currencies specified in the Appendix to
Bid for payment of the Contract Price.”
Add a third paragraph:
“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 percent of the
Contract Price, and the actual quantity of work executed under
the item differs from the quantity set out in the Bill of
Quantities by more than 25 percent.”
SUB-CLAUSE 52.3
VARIATIONS Add a final sentence, as follows:
EXCEEDING 15
“Where the Contract provides for the payment of the Contract
PERCENT
Price in more than one currency, the amount or proportion
when such further sum is agreed or determined, it being
understood that in specifying these amounts or proportions the
Contractor and the Engineer (or, failing agreement, the
Engineer) shall take into account the currencies (and the
proportions thereof) in which the Contractor’s Site and general
overhead cost of the Contract were incurred without being
bound by the proportions of various currencies specified in the
Appendix to Bid for payment of the Contract Price.”
SUB-CLAUSE 52.4 Add the following at the end of Sub-Clause 52.4.

DAYWORKS

"The work so ordered shall immediately become part of

the works under the contract. The Contractor shall, as soon
as practicable after receiving the Dayworks order from the
Engineer, undertake the necessary steps, for due execution of
such work-prior to commencement of any work to be done
on a Day work basis. The Contractor shall give an advance
notice to the Engineer stating the exact time of such
commencement."
SUB-CLAUSE 53.1 Add at the end of Sub-Clause 53.1:

NOTICE OF
CLAIMS The Contractor shall also state on which Clause or Clauses
of the Conditions of Contract his claim is based.
SUB-CLAUSE 53.2 Add at the end of clause 53.2

CONTEMPORARY
RECORDS In order that the extent and validity of such claims may
be properly assessed when they are submitted at a later date,
all circumstances relating to claims must be investigated,
recorded and agreed upon as far as possible between the
Contractor and the Engineer as and when they occur. For
this purpose the Contractor shall furnish the Engineer from
day to day with records, in a form approved by the Engineer,
of all the facts and circumstances that the Contractor
considers relevant and may wish to rely upon in support of
his claims. The Engineer may in turn record such other facts
and circumstances as he considers relevant and the
Contractor shall for this purpose, supply him with all the
information that he may require in this respect.
The Engineer and the Contractor shall at the time of

recording, indicate in writing and by signature, their
agreement or disagreement as to the correctness of the
information recorded.

CONTRACTOR’S EQUIPMENT ,TEMPORARY WORKS AND MATERIALS
SUB-CLAUSE 54.1 Amend Sub-Clause 54.1 as follows:

CONTRACTOR’S
EQUIPMENT, Line 5, add “written” between “the” and
TEMPORARY
WORKS, AND “consent”. Add a final sentence as follows:
MATERIALS:
“The Contractor shall every month give to the Engineer a
EXCLUSIVE USE
statement showing the amount of plant and Contractor’s
FOR THE WORKS
equipment, which has been brought to this Site, including the
equipment condition (Operational, stand by, under repair, etc.)
of the month .”
SUB-CLAUSE 54.9 The Contractor shall obtain his own information with regard
CONTRACTOR’S to the granting of import and export licenses for
RESPONSIBILITIES materials, equipment and plant. The Contractor shall bear
FOR LICENSES all expenses for Plant, Materials, Equipment and
Maintenance required for the completion and maintenance
of the works and shall be deemed to have satisfied
himself with regard to all his liabilities under the laws and
regulations governing the granting of these licenses. The
Contractor shall ensure that requests for import and export
licenses are submitted in sufficient time to clear all
formalities before said licenses are required.
SUB-CLAUSE 54.10 The Contractor shall identify each piece of his equipment,
EQUIPMENT AND other than hand tools, by means of an identification number
PLANT plainly stencilled or stamped on the equipment at a
conspicuous location, and shall furnish to the Engineer a list
giving the description of each piece of equipment and its
identification number. In addition, the make, model number
and empty gross weight of each unit of compaction
equipment shall be plainly stamped or stencilled in a
conspicuous place on the unit. The gross weight shall be
either the manufacturer’s rated weight or the scale weight.
The make, model, serial number and manufacturer’s rated
capacity of each scale shall be clearly stamped on the load-

receiving element and its indicator or indicators. All meters

shall be similarly identified, rated and marked.
MEASUREMENT
SUB-CLAUSE 55.2
OMISSIONS OF Add the following to Sub-Clause
QUANTITIES 55.2:
Items of the Works described in the Bill of Quantities for

which no rate or price has been entered in the Contract shall be
considered as included in other rates and prices in the Contract
and will not be paid for separately by the Employer.
SUB-CLAUSE 57.1 Delete the text of this Sub-Clause and substitute with the
METHOD OF following:
MEASUREMENT
“The measurement of the works shall be performed on the
SUB-CLAUSE 58.5 All items set out in the Bill of Quantities which are stated to
PROVISIONAL be provisional items, or for contingencies, shall be used only
ITEMS at the discretion of the Engineer and if not used, either
wholly or in part, then the amount not used shall be deducted
from the contract price.
SUB-CLAUSE 59.3 Delete this Sub-Clause 59.3

DESIGN
REQUIREMENTS
TO BE
EXPRESSLY
STATED
SUB-CLAUSE 59.5 “Add the following paragraph at the end of the Sub-Clause:
CERTIFICATION
OF PAYMENTS TO If the Engineer desires to secure or certify final payment
NOMINATED SUB- to any nominated Sub-Contractor before final payment is
CONTRACTORS due to the Contractor and if such Sub-Contractor has
satisfactorily indemnified the Contractor against any latent
defects, the Engineer may, in an interim certificate,
include an amount to cover the said final payment, and
thereupon the Contractor shall pay to such nominated Sub-
Contractor the amount so certified. Upon such final payment

the Sub-
Contract
or shall
be
discharg
ed from
all
liability
for the
work,

materials or goods executed or supplied by such Sub-

Contractor under the contract to which the payment relates.”
CERTIFICATES AND PAYMENT
CLAUSE 60
CERTIFICATES Clause 60 of the General Conditions is deleted and the
AND PAYMENT
following Sub-Clauses 60.1-60.14 are substituted therefore:
SUB-CLAUSE 60.1 The Contractor shall submit a statement in the number of

MONTHLY copies stipulated in the Appendix to Bid to the Engineer at the
STATEMENTS end of each month, in a tabulated form approved by the
Engineer, showing the amounts to which the Contractor
considers himself to be entitled. The statement shall include the
following items, as applicable, which shall be taken into
account in the sequence listed:
(a) The estimated Contract value of the Temporary and
Permanent Works executed up to the end of the month in
question, determined in accordance with Sub-Clause 56.1,
at the unit rates and prices included in the Contract;
(b) The value of any variations executed up to the end of the
month in question, less the amount certified in the previous
Interim Payment Certificate, pursuant to Clause 52;
(c) Amounts approved in respect of Day work executed up to the
end of the month in question, less the amount for Day
work certified in the previous Interim Payment
Certificate, as determined from the Day work schedule of
the Bill of quantities.
(d) Amounts reflecting changes in cost and legislation, pursuant
to Clause 70;
(e) Any amount to be withheld under the retention provisions
of Sub-Clause 60.5, determined by applying the percentage
set forth in Sub-Clause 60.5 to the amount due under
paragraphs 60.1 (b), (c) and (d);
(f) Any credit in respect of materials and Plant for the
Permanent Works, and under the conditions set forth in

Sub-Clause 60.3;
(g) Any amount to be deducted as repayment of the Advance
under the provisions of Sub-Clause 60.7; and
(h) Any other sum to which the Contractor may be entitled
under the Contract or otherwise.
(i) The amount certified for payment up to the end of the

previous month
SUB-CLAUSE 60.2
MONTHLY The said statement shall be approved or amended by the
PAYMENTS Engineer in such a way that, in his opinion, it reflects the
amounts in various currencies due to the Contractor in
accordance with the Contract, after deduction, other than
pursuant to Clause 47, of any sums which may have become due
and payable by the Contractor to the Employer. In cases where
there is a difference of opinion as to the value of any item, the
Engineer’s view shall prevail. Within 28 days of receipt of the
monthly statement referred to in Sub-Clause 60.1, the Engineer
shall determine the amounts due to the Contractor and shall
deliver to the Employer and the Contractor an Interim
Payment Certificate, certifying the amounts due to the
Contractor.
Provided that the Engineer shall not be bound to certify any

payment under this sub-clause if the net amount thereof, after all
retentions and deductions, would be less than the Minimum
Amount of Interim Payment Certificates stated in the Appendix
to Bid. However, in such case, the unpaid certified amount will
be added to the next interim payment, and the cumulative
unpaid certified amount will be compared with the minimum
amount of interim payment.
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.

SUB-CLAUSE 60.3
MATERIALS AND With respect to materials and Plant brought by the Contractor to
PLANT FOR THE the Site for incorporation in the Permanent Works, the
PERMANENT Contractor shall (a) receive a credit in the month in which these
WORKS materials and Plant are brought to the Site and (b) be charged a
debit in the month in which they are incorporated in the
Permanent Works, both such credit and debit to be determined
by the Engineer in accordance with the following provisions:
a) No credit shall be given unless the following conditions

shall have been met to the Engineer’s satisfaction:
(i)The materials and Plant are in accordance with the

specifications for the Works;
(vi) The materials and Plant have been delivered to the Site
and are properly stored and protected against loss,
damage, or deterioration;
(vii) The Contractor’s records of the requirements, orders,

receipts, and use of materials and Plant are kept in a
form approved by the Engineer, and such records are
available for inspection by the Engineer;
(viii) The Contractor has submitted a statement of his cost

of acquiring and delivering the materials and Plant to
the Site, together with such documents as may be
required for the purpose of evidencing such cost;
(ix) The origin of the materials and Plant and the currencies
of payment therefore are those indicated in the
Appendix to Bid; and
(x) The materials are to be used within a reasonable time.
b) The amount to be credited to the Contractor shall be the

equivalent of 75 percent of the Contractor’s reasonable cost
of the materials and Plant delivered to the Site, as
determined by the Engineer after review of the documents
listed in sub-paragraph (a) (iv) above;
c) The amount to be debited to the Contractor for any materials

and Plant incorporated into the Permanent Works shall be
equivalent to the credit previously granted to the Contractor
for such materials and Plant pursuant to Sub-Clause (b)
above, as determined by the Engineer; and
d) The currencies in which the respective amounts shall be

credited or debited as set forth above shall be determined by
Ethiopian Roads the Page 5.41
Authority
Engineer
SUB-CLAUSE 60.4
PLACE OF Payments to the Contractor by the Employer shall be made
PAYMENT in the currencies in which the Contract Price is payable into a
bank account or accounts nominated by the Contractor.
SUB-CLAUSE 60.5
RETENTION A retention amounting to the percentage stipulated in the
MONEY Appendix to Bid of the amounts due in each currency,
determined in accordance with the procedure set out in Sub-
Clause 60.1 (i) shall be made by the Engineer in the first and
following Interim Payment Certificates.
SUB-CLAUSE 60.6
PAYMENT OF Upon the issue of the Taking-Over Certificate with respect to
RETENTION the whole of the Works, one half of the Retention Money, or
MONEY upon the issue of a Taking-Over Certificate with respect to a
Section or part of the Permanent Works only such proportion
thereof as the Engineer determines having regard to the
relative value of such Section or part of the Permanent Works,
shall be certified by the Engineer for payment to the
Contractor. The Contractor may substitute the remaining
retention money with an on-demand bank guarantee in a
form, and from a source, acceptable to the Employer.
Upon the expiration of the Defects Liability Period for the

Works, the other half of the Retention Money shall be certified
by the Engineer for payment to the Contractor (or return of the
remaining security, which replaced the Retention Money).
Provided that, in the event of different Defects Liability
Periods being applicable to different Sections or parts of the
Permanent Works pursuant to Clause 48, the expression
“expiration of the Defects Liability Period” shall, for the
purposes of this sub- clause, be deemed to mean the
expiration of the latest of such periods.
Provided also that if at such time, there shall remain to be

executed by the Contractor any work instructed, pursuant to
Clauses 49 and 50, in respect of the Works, the Engineer shall
be entitled to withhold certification until completion of such
work of so much of the balance of the Retention Money as shall,
in the opinion of the Engineer, represent the cost of the work
remaining to be executed.

SUB-CLAUSE 60.7 a) Up on the request of the Contractor, the Employer will make
ADVANCE an interest-free advance payment to the Contractor
PAYMENT exclusively for the costs of mobilization in respect of the
Works in an amount, payable in the proportions of foreign
and local currencies of the Contract Price not exceeding the
amount stated in the Appendix to Bid.
Payment of such advance amount will be due under separate

certification by the Engineer after (a) execution of the Form
of Agreement by the parties hereto; (b) provision by the
Contractor of the performance security in accordance with
Sub-Clause 10.1; and (c) provision by the Contractor of an
unconditional bank guarantee in a form and by a bank
acceptable to the Employer in amounts and currencies equal
to the advance payment. Such bank guarantee shall remain
effective until the advance payment has been repaid
pursuant to the paragraph below, but the amount thereof
shall be progressively reduced by the amount repaid by the
Contractor as indicated in Interim Payment Certificates
issued in accordance with this Clause.
(b)In addition to the advance mentioned in Sub-para (a) above,

the Employer will pay another interest free advance against
key construction equipment required for the work and
brought to site, if so requested by the Contractor subject to
the same terms and conditions specified in paragraphs (a)
above. The maximum of such advance shall be five percent
of the Contract price. In case of new equipment, the
advance shall be limited to ninety percent of the price of
such new plant and equipment, by the Contractor for which
the Contractor shall produce satisfactory evidence. In case
of used equipment, the amount of such advance shall be
limited to ninety percent of the depreciated value of
equipment as may be determined by the Engineer. This
advance shall be further subject to the condition that (i)
such equipment are considered by the Engineer to be
necessary for the works, (ii) such equipment are in working
order, and (iii) such equipment shall be on site without any
delay.
c) The advance payment shall be repaid through

percentage deductions from the interim payments
certified by the

Engineer in accordance with this Clause. Deductions shall

commence in the next Interim Payment Certificate
following that in which the total of all interim payments
certified to the Contractor has reached the percentage of the
Contract Price stipulated in the Appendix to Bid less
Provisional Sums, and shall be made at the rate stated in the
Appendix to Bid of the amount of all Interim Payment
Certificates in the types and proportionate amounts of
currencies of the advance payment until such time as the
advance payment has been repaid; always provided that
the advance payment shall be completely repaid prior to
the time when 80 percent of the Contract Price has been
certified for payment.
SUB-CLAUSE 60.8
TIME FOR a) The amount due to the Contractor for any advance payment shall
PAYMENT AND be paid within 56 days of a satisfactory application for the same.
INTEREST
b) The amount due to the Contractor under any Interim or Final
Payment Certificate issued by the Engineer pursuant to this
Clause, or to any other term of the Contract, shall, subject to
Clause 47, be paid by the Employer to the Contractor as follows:
i. i) In the case of Interim Payment Certificates, within 56

days after the Contractor's monthly statement has been
submitted to the Engineer for certification, pursuant to Sub-
Clause 60.1, provided that if the Engineer's Interim
Certificate has not been issued within said 56 days, the
Employer shall pay the amount shown in the Contractor's
monthly statement and that any discrepancy shall be
added to, or deducted from, the next payment to the
Contractor; and
ii. In the case of the Final Payment Certificate pursuant to Sub-

Clause 60.13, within 56 days after the Final Statement and
written discharge have been submitted to the Engineer
for certification; and
(c) In the event of the failure of the Employer to make
payment within the times stated, the Employer shall pay
to the Contractor interest compounded monthly at the
rate(s) stated in the Appendix to Bid upon all the sums
unpaid from the date upon which the same should have
been paid, in the currencies in which the payments are
due. The provisions of this Sub-Clause are without
prejudice to the Contractor's entitlement under Clause 69
or otherwise."
SUB-CLAUSE 60.9
CORRECTION OF The Engineer may by any Interim Payment Certificate make
CERTIFICATES any correction or modification in any previous Interim Payment
Certificate, which has been issued by him, and shall have
authority, if any work is not being carried out to his satisfaction,
to omit or reduce the value of such work in any Interim Payment
Certificate.
SUB-CLAUSE 60.10
STATEMENT AT Not later than 84 days after the issue of the Taking-Over
COMPLETION Certificate in respect of the whole of the Works, the Contractor
shall submit to the Engineer a Statement at Completion in the
number of copies specified in the Appendix to Bid with
supporting documents showing in detail, in the form approved
by the Engineer,
a) The final value of all work done in accordance with the

Contract up to the date stated in such Taking-Over
Certificate;
b) Any further sums which the Contractor considers to be due;

and
c) An estimate of amounts, which the Contractor considers,

will become due to him under the Contract.
Estimated amounts shall be shown separately in such Statement

at Completion. The Engineer shall certify payment in
accordance with Sub-Clause 60.2.
SUB-CLAUSE 60.11
FINAL STATEMENT Not later than 56 days after the issue of the Defects
Liability Certificate pursuant to Sub-Clause 62.1, the
Contractor shall submit to the Engineer for consideration a
draft final statement in the number of copies stipulated in the
Appendix to Bid with supporting documents showing in detail,
in the form approved by the Engineer,
a) The value of all work done in accordance with the Contract;

and
b) Any further sums which the Contractor considers to be due

to him under the Contract or otherwise.

If the Engineer disagrees with or cannot verify any part of the

draft final statement, the Contractor shall submit such further
information as the Engineer may reasonably require and shall
make such changes in the draft as may be agreed between
them. The Contractor shall then prepare and submit to the
Engineer the final statement as agreed (for the purposes of
these Conditions referred to as the “Final Statement”).
If, following discussions between the Engineer and the

Contractor and any changes to the draft final statement which
may be agreed between them, it becomes evident that a
dispute exists, the Engineer shall deliver to the Employer an
Interim Payment Certificate for those parts of the draft final
statement, if any, which are not in dispute. The dispute shall
then be settled in accordance with Clause 67. The Final
Statement shall be agreed upon settlement of the dispute.
SUB-CLAUSE 60.12
DISCHARGE Upon submission of the Final Statement, the Contractor shall
give to the Employer, with a copy to the Engineer, a
written discharge confirming that the total of the Final
Statement represents full and final settlement of all monies
due to the Contractor arising out of or in respect of the
Contract. Provided that such discharge shall become effective
only after payment due under the Final Payment Certificate
issued pursuant to Sub- Clause 60.13 has been made and the
performance security referred to in Sub-Clause 10.1 has been
returned to the Contractor.
SUB-CLAUSE 60.13
FINAL PAYMENT Within 28 days after receipt of the Final Statement, and
CERTIFICATE the written discharge, the Engineer shall deliver to the
Employer (with a copy to the Contractor) a Final Payment
Certificate stating
a) The amount which, in the opinion of the Engineer, is finally

due under the Contract or otherwise, and
b) After giving credit to the Employer for all amounts

previously paid by the Employer and for all sums to
which the Employer is entitled, other than under Clause
47, the balance, if any, due from the Employer to the
Contractor or from the Contractor to the Employer as the
case may be.

SUB-CLAUSE 60.14
CESSATION OF The Employer shall not be liable to the Contractor for any
EMPLOYER’S matter or thing arising out of or in connection with the Contract
LIABILITY or execution of the Works, unless the Contractor shall have
included a claim in respect thereof in his Final Statement and
(except in respect of matters or things arising after the issue of
the Taking-Over Certificate in respect of the whole of the
Works) in the Statement at Completion referred to in Sub-
Clause 60.10.
REMEDIES
SUB-CLAUSE 63.1
DEFAULT OF Delete the last paragraph of this sub-clause and
CONTRACTOR substitute:
“then the Employer may, after giving 14 days’ notice to

the Contractor, enter upon the Site and expel the Contractor
therefrom without thereby voiding the Contract, or releasing the
Contractor from any of his obligations or liabilities under the
Contract, or affecting the rights and powers conferred on the
Employer or the Engineer by the Contract, and may himself
complete the Works or may employ any other contractor to
complete the Works. The Employer or such other contractor
may use for such completion so much of the Contractor’s
Equipment, Plant, Temporary Works, and materials, which have
been deemed to be reserved exclusively for the execution of the
Works, under the provisions of the Contract, as he or they may
think proper, and the Employer may, at any time, sell any of
the said Contractor’s Equipment, Temporary Works, and
unused Plant and materials, and apply the proceeds of sale in or
towards the satisfaction of any sums due or which may
become due to him from the Contractor under the Contract.”
SUB-CLAUSE 63.2
VALUATION AT Modify the heading of Sub-Clause 63.2 by substituting
DATE OF “Valuation at Date of Expulsion” for “Valuation at Date of
EXPULSION Termination”. In Sub-Clause 63.2, delete the word “termination
on the second and fifth lines and substitute “expulsion”.

SUB-CLAUSE 63.3 Modify the heading of Sub-Clause 63.3 by substituting

PAYMENT AFTER “Payment after Expulsion” for “Payment after Termination”.
EXPULSION In Sub-Clause 63.3, delete the words “terminates the
Contractor’s employment” on the first line and substitute
“shall enter and expel the Contractor”.
SUB-CLAUSE 63.4
ASSIGNMENT OF In Sub-Clause 63.4, delete the word “termination” on the second
BENEFIT OF line, and substitute “expulsion”.
AGREEMENT
SUB-CLAUSE 63.5
CORRUPT OR If in the judgment of the Employer the Contractor has engaged
FRAUDULENT in corrupt or fraudulent practices, in competing for or in
PRACTICES executing the Contract, then the Employer may, after having
given 14 days notice to the Contractor, terminate the
Contractor’s employment under the Contract and expel him
from the Site, and the provisions of Clause 63 shall apply as if
such expulsion had been made under Sub-Clause 63.1.
For the purpose of this sub-clause:
“Corrupt practice” means the offering, giving, receiving or

soliciting of any thing of value to influence the action of a
public official in the procurement process or in contract
execution.
“Fraudulent practice” means a misrepresentation of facts in

order to influence a procurement process or the execution of a
contract to the detriment of the Borrower, and includes collusive
practice among bidders (prior to or after bid submission)
designed to establish bid prices at artificial non-competitive
levels and to deprive the Borrower of the benefits of free and
open competition.”
SPECIAL RISKS
SUB-CLAUSE 65.2
SPECIAL RISKS Amend Sub-Clause 65.2 to read as follows: “The Special Risks
are the risks defined under para. (a), sub-paragraphs (i) to (v) of
Sub-Clause 20.4.”

SUB-CLAUSE 65.4 Delete “whenever and wherever occurring” in line 2 and add
PROJECTILE, “on or near the site” after “explosive of war” in line 3.
MISSILE
SETTLEMENT OF DISPUTES
SUB-CLAUSE 67.1 Add to Sub-Clause 67.1

SETTLEMENT OF
DISPUTES "The procedure for settlement of disputes is stipulated in
the Appendix to Tender. Section 12 of the Tendering
Documents shall be incorporated in and be part of these
Conditions of Particular Application."
NOTICES
SUB-CLAUSE 68.2
NOTICE TO For the purposes of this Sub-Clause, the addresses are those
EMPLOYER AND specified in the Appendix to Bid.
ENGINEER
DEFAULT OF EMPLOYER
SUB-CLAUSE 69 In Sub-Clauses 69.1, 69.4 and 69.5, substitute “Sub-Clause

DEFAULT OF 60.8” for “Sub-Clause 60.10”.
EMPLOYER
SUB-CLAUSE 69.1 Delete paragraph (b) and substitute the following:

DEFAULT OF
EMPLOYER “ (b) Interfering with or obstructing or refusing any
required approval to the issue of any such certificate,
except that the acts of the Employer set out in Sub

Clause 2.1 hereof shall not be construed as such

interference, obstruction or refusal.”
Delete paragraph (d)
SUB-CLAUSE 69.3 Delete from ", but in addition to the payments specified...” to the
PAYMENT ON end of the Sub-Clause.
TERMINATION
SUB-CLAUSE 69.4
CONTRACTOR’S Add this paragraph:
ENTITLEMENT TO
Without prejudice to the Contractor’s entitlement to interest
SUSPEND WORK
under Sub-Clause 60.8 and to terminate under Sub-Clause 69.1,
the Contractor may suspend work or reduce the rate of work
within 56 days after notification by the Funding Agency to the
Employer’s government that the Funding Agency has suspended
disbursements from its loan or credit, which finances in whole
or in part the execution of the Works.
SUB-CLAUSE 69.5 Delete in line three “Sub-Clause 60.10” and substitute with
RESUMPTION OF “Sub-Clause 60.8”.
WORK
SUB-CLAUSE 69.6
SUSPENSION OF In the event the Funding Agency suspends the loan or credit
FUNDING from which part of the payments to the Contractor are being
AGENCY’S LOAN made:
OR CREDIT
(a) The Employer shall notify the Contractor, with copy to the
Engineer, of such suspension within 7 days of having
received the suspension notice from the Funding Agency,
provided (i) that the Employer shall state in such
notification whether sufficient funds in appropriate
currencies are expected to be available to the Employer to
continue making payments to the Contractor beyond a date
60 days after the date of the Funding Agency notification
of the suspension, and (ii) that, if such funds are not
expected to be available, the Employer shall
immediately instruct the Engineer to instruct the
Contractor to suspend the progress of the Works pursuant
to Clause 40.1.
(b) If the Contractor has not received sums due to him upon
the expiration of the 14 days referred to in Sub-Clause 60.8
(a) (i) (B) for payments under Interim Certificates, the

Contractor may without prejudice to the Contractor's

entitlement to interest under Sub-Clause 60.8 immediately
take one or both of the following actions, namely (i)
suspend work or reduce the rate of work, and (ii) terminate
his employment under the Contract by giving notice to the
Employer, with a copy to the Engineer, such termination to
take effect 14 days after the giving of the notice."
CHANGES IN COST AND LEGISLATION
SUB-CLAUSE 70
CHANGES IN Delete Clause 70 in its entirety, and
COST AND substitute:
LEGISLATION
SUB-CLAUSE 70.1
PRICE The amounts payable to the Contractor, in various currencies
ADJUSTMENT pursuant to Sub-Clause 60.1, shall be adjusted in respect of the
rise or fall in the cost of labor, Contractor’s Equipment, Plant,
materials and other inputs to the Works by applying to such
amounts the formulae prescribed in this clause.
SUB-CLAUSE 70.2
OTHER CHANGES To the extent that full compensation for any rise or fall in costs
IN COST
to the Contractor is not covered by the provisions of this or other
Clauses in the Contract, the unit rates and prices included in the
Contract shall be deemed to include amounts to cover the
contingency of such other rise or fall of costs.
SUB-CLAUSE 70.3
ADJUSTMENT The adjustment to the Interim Payment Certificates in respect
FORMULAE of changes in cost and legislation shall be determined from
separate formulae for each of the currencies of payment and
each Bill of Quantities. The formulae will be of the following
type:
Pn= a + b Ln/Lo + c Mn/Mo + d En/Eo + etc.
Where:
Pn is a price adjustment factor to be applied to the amount in

each specific currency for the payment of the work carried out in
the subject month, determined in accordance with Sub-Clause
60.1 (d), and Sub-Clauses 60.1 (e) and (f), where such variations
and Daywork are not otherwise subject to adjustment;

a is a constant, specified in the Appendix to Bid, representing

the nonadjustable portion in contractual payments;
b, c, d, etc., are weightings or coefficients representing the

estimated proportion of each cost element (labor, materials,
equipment usage, etc.) in the Works or sections thereof, net of
Provisional Sums, as specified in the Appendix to Bid;
Ln, Mn, En, etc., are the current cost indices or reference prices
of the cost elements in the specific currency for month “n”
determined pursuant to Sub-Clause 70.5, applicable to each cost
element; and
Lo, Mo, Eo, etc., are the base cost indices or reference prices
corresponding to the above cost elements at the date specified in
Sub-Clause 70.5.
If a price adjustment factor is applied to payments made in

a currency other than the currency of the source of the index for
a particular indexed input, a correction factor Zo/Z will be
applied to the respective component factor of Pn for the
formula of the relevant currency. Zo is the number of units of
currency of the country of the index, equivalent to one unit of
the currency of payment on the date of the base index, and Z
is the corresponding number of such currency units on the date
of the current index.
SUB-CLAUSE 70.4
SOURCES OF The sources of indices shall be those listed in Appendix to Bid,
INDICES AND as approved by the Engineer. Indices shall be appropriate for
WEIGHTINGS their purpose and shall relate to the Contractor's proposed source
of supply of inputs on the basis of which his Contract Price and
expected foreign currency requirements shall have been
computed. As the proposed basis for price adjustment, the
Contractor shall have submitted with his bid the tabulation of
Weightings and Source of Indices in the Appendix to Bid, which
shall be subject to approval by the Engineer.
SUB-CLAUSE 70.5
BASE, CURRENT The base cost indices or prices shall be those prevailing on the
AND day 28 days prior to the latest date for submission of bids.
PROVISIONAL Current indices or prices shall be those prevailing on the day 28
INDICES days prior to the last day of the period to which a particular

Interim Payment Certificate is related. If at any time the current

indices are not available, provisional indices as determined by
the Engineer will be used, subject to subsequent correction of
the amounts paid to the Contractor when the current indices
become available.
SUB-CLAUSE 70.6 If the Contractor fails to complete the Works within the time for
ADJUSTMENT completion prescribed under Clause 43, adjustment of prices
AFTER
thereafter until the date of completion of the Works shall be
COMPLETION made using either the indices or prices relating to the prescribed
time for completion, or the current indices or prices, whichever
is more favorable to the Employer, provided that if an extension
of time is granted pursuant to Clause 44, the above provision
shall apply only to adjustments made after the expiry of such
extensions of time.
SUB-CLAUSE 70.7 The weightings for each of the factors of cost given in the
WEIGHTINGS Appendix to Bid shall be adjusted if, in the opinion of the
Engineer, they have been rendered unreasonable, unbalanced or
inapplicable as a result of varied or additional work already
executed or instructed under Clause 51 or for any other reason.
SUB-CLAUSE 70.8
SUBSEQUENT If, after the date 28 days prior to the latest date for submission
LEGISLATION of bids for the Contract, there occur in the country in which
the Works are being or are to be executed changes to any
National or State Statute, Ordinance, Decree, or other Law or
any regulation or by-law of any local or other duly constituted
authority, or the introduction of any such State Statute,
Ordinance, Decree, Law, regulation or by-law which causes
additional or reduced cost to the Contractor, other than under the
preceding sub-clauses of this clause, in the execution of the
Contract, such additional or reduced cost shall, after due
consultation with the Employer and the Contractor, be
determined by the Engineer and shall be added to or deducted
from the Contract Price and the Engineer shall notify the
Contractor accordingly, with a copy to the Employer.
Notwithstanding the foregoing, such additional or reduced cost
shall not be separately paid or credited if the same shall already
have taken into account in the indexing of any inputs to the
Price Adjustment Formulae in accordance with the provisions of
Sub-Clauses 70.1 to 70.7.

CURRENCY AND RATES OF EXCHANGE
SUB-CLAUSE 72.2
CURRENCY Amend Sub-Clause 72.2 as follows:
PROPORTIONS
Delete the words from " Central Bank of the country in which
the Works are to be executed" and substitute the following:
"source stated in the Appendix to Bid.”
After “prevailing”, insert “for similar
transactions”.
ADDITIONAL CLAUSES
SUB-CLAUSE 73.1
FOREIGN The prices bid by the Contractor shall include all taxes, duties,
TAXATION and other charges imposed outside the Employer’s country on
the production, manufacture, sale, and transport of the
Contractor’s Equipment, Plant, materials, and supplies to be
used on or furnished under the Contract, and on the services
performed under the Contract.
SUB-CLAUSE 73.2
LOCAL The prices bid by the Contractor shall include all customs
TAXATION duties, import duties, business taxes, and income and other taxes
that may be levied in accordance with the laws and regulations
in being on the date 28 days prior to the latest date for
submission of bids in the Employer’s country on the
Contractor’s Equipment, Plant, materials, and supplies
(permanent, temporary, and consumable) acquired for the
purpose of the Contract and on the services performed under the
Contract. Nothing in the Contract shall relieve the Contractor
from his responsibility to pay any tax that may be levied in the
Employer’s country on profits made by him in respect of the
Contract.

SUB-CLAUSE 73.3
INCOME TAXES The Contractor’s staff and labor will be liable to pay personal
ON STAFF
income taxes in the Employer’s country in respect of such of
their salaries and wages as are chargeable under the laws and
regulations for the time being in force, and the Contractor shall
perform such duties in regard to such deductions thereof as may
be imposed on him by such laws and regulations.
SUB-CLAUSE 74.1
ILLEGAL If the Contractor, or any of his Subcontractors, agents or
PAYMENTS servants gives or offers to give any person any payment, gift,
gratuity or commission as an inducement or reward for doing or
forbearing to do any action in relation to the Contract or any
other contract with the Employer, or for showing or
forbearing to show favor or disfavor to any person in relation
to the Contract or to any other contract with the Employer,
the Employer may enter upon the Site and the Works and expel
the Contractor and the provisions of Clause 63 hereof shall
apply as if such entry and expulsion had been made
pursuant to that clause.
SUB-CLAUSE 75.1 The Employer shall be entitled to terminate this Contract at

TERMINATION OF any time for the Employer’s convenience after giving 56 days’
CONTRACT FOR prior notice to the Contractor, with a copy to the Engineer.
EMPLOYER’S In the event of such termination, the Contractor
CONVENIENCE
a) Shall proceed as provided in Sub-Clause 65.7; and
b) Shall be paid by the Employer as provided in Sub-Clause

65.8.
SUB-CLAUSE76.1
RESTRICTIONS a) Any Plant, materials, or services which will be
ON ELIGIBILITY incorporated in or required for the Works, as well as the
Contractor’s Equipment and other supplies, shall have their
origin in any of the countries and territories eligible under
the Guidelines of the Funding Agency if such requirement is
stipulated in the Agency’s Guide line
b) For the purposes of this clause, “origin” means the place

where the materials and equipment were mined, grown,
produced, or manufactured, or from which the services are
provided.
c) The origin of Goods and Services is distinct from the

nationality of the Supplier.

SUB-CLAUSE 77.1
JOINT AND If the Contractor is a joint venture of two or more persons, all
SEVERAL such persons shall be jointly and severally bound to the
LIABILITY Employer for the fulfillment of the terms of the Contract
and shall designate one of such persons to act as a leader with
authority to bind the joint venture. The composition or the
constitution of the joint venture shall not be altered without the
prior consent of the Employer.
SUB-CLAUSE 78.1 The Contractor and his subcontractors shall in the conveyance,
IMPORTATION handling, storage and use of all dangerous materials such as
AND USE OF explosives, detonators, petroleum, acetylene, oxygen,
DANGEROUS calcium carbide, radioactive materials, etc., comply with and
MATERIALS adhere strictly to in all respects with the Laws of the
Federal Democratic Republic of Ethiopia.
Explosives and Blasting
(a) No explosives of any kinds shall be used without the

prior consent, in writing by the Engineer. Once this
consent is granted, the Contractor shall be solely
responsible for obtaining, handling, transporting,
storing, accounting for using, and disposal of surplus
detonators, fuels, bulk explosives and other things
associated with blasting, and for complying in all
respect with the Laws of the Federal Democratic
Republic of Ethiopia, and shall save the Employer
and the Engineer harmless from all consequences
whatsoever arising out of the consent so given by the
Engineer.
(b) The Contractor shall at all times take every

possible precaution and shall conform with the
appropriate laws and regulations relating to the
importation, handling, transportation, storage and
use of explosives and shall at all times when
engaged in blasting operations post sufficient
warning flagmen, watchmen and barricades to the
full satisfaction of the Engineer and arrange the
timely clearance of debris. On any work requiring
the use of explosives, the Contractor shall employ
men experienced in blasting and these men must be
in position of a current blasting certificate.

(c) The Contractor shall at all times liaise with and

inform well in advance and obtain such permission
as is required from all government authorities, public
bodies and private parties whatsoever concerned or
affected or likely to be concerned or affected by
blasting operations.
(d) The Contractor shall be solely responsible to provide,

supply, handle, store and transport all explosives
ancillary materials and stores and all other things
of every kind whatsoever required for blasting
operations and shall not delegate or sub-contract
these activities.
(e) Before the beginning of the Defects Liability

Period the Contractor shall remove all unused
explosives from the site on completion of the
Works or when ordered by the Engineer, and shall
submit written confirmation of compliance with
this instruction to the Engineer.
SUB-CLAUSE 79.1
DETAILS TO BE The Contractor shall treat the details of the Contract as private and
CONFIDENTIAL confidential, save insofar as may be necessary for the purposes
thereof, and shall not publish or disclose the same or any
particulars thereof in any trade or technical paper or elsewhere
without the previous consent in writing of the Employer or the
Engineer. If any dispute arises as to the necessity of any publication
or disclosure for the purpose of the Contract the same shall be
referred to the Employer whose determination shall be final.
SUB-CLAUSE 80.1
OFFICIAL The Contractor shall at all times when authorised by the
VISITORS Engineer give free and undisputed access and all facilities to any
authorised employee of the Government or other authorised person
wishing to view or inspect any part of the Site or Works or
the materials therein.
SUB-CLAUSE 81.1
LEGAL The Contractor shall keep himself fully conversant with the latest
PROVISIONS enactments, provisions and regulations of all legislative and
statutory bodies, and, in all respects and at all times, shall
comply with such enactment, provisions and regulations in regard
to executing the contract.

FORM OF BID
Name of Contract (or Lot if applicable):
To:
General Manager
Post office Box 1770, Addis Ababa, Ethiopia
Tel. No. 51-71-70/79
Fax No. 251-1-514866
Gentlemen:
[Insert answers in block capitals or typed ]
1. In accordance with the Conditions of Contract, Specification, Drawings, and Bill of

Quantities and Addenda Nos. _ ( to be specified later) for the
execution of the above-named Works we, the undersigned, offer to construct and install
such Works and remedy any defects therein in conformity with the Conditions
of Contract, Specifications, Drawings, Bill of Quantities, and Addenda for the
sum of [insert amounts in numbers and words] [as specified in the Appendix to Bid
or such other sums as may be ascertained in accordance with the conditions].
2. We acknowledge that the Appendix forms part of our Bid.
3 We attach our Bid security in the sum of

Ethiopian Birr, taken out with [insert name and
address of the Bank or the Insurance Company].
4. We undertake, if our Bid is accepted, to commence the Works as soon as is

reasonably possible after the receipt of the Engineer’s notice to commence, and to
complete the whole of the Works comprised in the Contract within the time stated in
the Appendix to Bid.
5. We agree to abide by this Bid until [insert date, 120 days after the Bid
opening date], and it shall remain binding upon us and may be accepted at any time
before that date.
6. Unless and until a formal Agreement is prepared and executed this Bid, together
with your written acceptance thereof, shall constitute a binding Contract between us.
7. We understand that you are not bound to accept the lowest or any bid you may receive.
8 Should you accept our Bid for this contract (or lot) and also our Bid for one of the other

Forms & App. To Documents
contracts (or lots) in the Project, we (cannot) offer a discount to each of the accepted
bids. The discount on all except Provisional Sums is:
9 In addition, we also submit an alternative Bid for your consideration, for details
of which are on a separate form of Bid, clearly marked “Alternative” (or “we are
not submitting any alternative Bids”).
10. Commissions or gratuities, if any, paid or to be paid by us to Agents relating to this

bid, and to contract execution if we are awarded the contract, are listed below:
Name and Amount and Purpose of Commission

Address of Agent: Currency: Or gratuity:
Dated this day of [ year ]
Signature in the capacity of
duly authorized to sign bids for and on behalf of
[in block capitals or typed]
Address:
Witness:
Name:
Address:
Occupation:
Signature :

APPENDIX TO BID
Bidders should fill in all the appropriate blank spaces. Bidders are required to sign each
page of the Appendix to Bid.
Ite Conditions
m of Contract
No Sub-Clause
.
1. Definitions 1.1 (a), 69.6 The Funding Agency is:
( To be specified)
1.1(a)(i) The Employer is :

Post Office Box 1770, Addis
Ababa, Ethiopia
Tel. No.251-1- 51-71-70/79
Fax No. 251-1-51-48-66
1.1(a)(iv) The Engineer is :

( To be specified)
2. Engineer’s 2.1(d)(ii) To issue Variations of 0.05 % of the contract

Authority to Issue amount in ETB in any single occurrence and total
Variations of such occurrences shall not be more than 0.1 %
of the contract amount in ETB during any period
for which an interim payment certificate is issued.
3. Language/s 5.1(a) The language of the Contract is English.

And Law
5.1(b) The law in force is that of the Federal Democratic
Republic of Ethiopia.
4. Priority of 5.2 (11) The other documents forming part of the Contract
Contract are:
Documents …………………………………………..
…………………………………………..
5. Performance 10.1 The performance security will be in the form of an
Security unconditional bank guarantee in the amount of 10
per cent of the Contract Price.

6. Access to Data 11.2 Data made available by the Employer under Sub-
Clause 11.1
Is open for inspection at :

Contracts Administration Division
Ras Abebe Aregay street
th
5 Floor
Post Office Box 1770,
Addis Ababa, Ethiopia
Tel. No.251-1- 51-71-70/79
Fax No. 251-1-514866
Program to be 14.1 Mobilization Program to be submitted within 28
7. Submitted days
of the issue of the Notice to Commence. Detailed
Work Programme to be submitted Within 84 days
from the issue of the Notice to Commence, and
within fourteen (14) days, each time the
Construction Programme is revised…
Amount withheld 14.2 0.05% of the Contract Price per month

8. for late ubmission
of a programme.
Cash Flow 14.3 Within 84 days of the date of the Notice to
Estimate commence the Works, and within fourteen (14)
days each time the Construction Programme is
9.
revised..
Country of the 16.4 Federal Democratic Republic of Ethiopia.
Employer
10.
Minimum Amount 23.2 5,000,000 ETB per occurrence, with the number
of Third Party of occurrences unlimited.
11. Insurance
Amount withheld 29.1 ETB 20,000 per occurrence.

12. for failure to im-
plement a Traffic
Management
System
Time for Issue of 41.1 56 days from the date of issue of the Letter of
th
13. the Notice to acceptance. If otherwise the 56 date shall be
Commence taken as the date of issuing the Notice to
commence.
Time for 43.1 days from the date of receipt of the
Completion Engineer's Notice to Commence.
14.

Amount of 47.1 ETB [insert between 10 and 15% of

15. Liquidated the Engineer’s estimate divided by the construction
Damages period expressed in days, rounded to the nearest
10,000]
Limit of Liquidated 47.1 Ten percent (10%) of the Contract Price.

Damages
16.
Taking Over of 48.2(a)

Sections [if applicable, listed under Sub-Clause 43.1]
17.
Minimum length of 48.2(b) 30 kilometers continuous length.
any Section to be
18. taken over.
Defects Liability 49.1 365 days from the issue of the Taking Over
Period Certificate.
19.
Payments to 59.4(c) Rate for attendance: percent
20. Nominated Percentage to be the rate inserted by the
Subcontractors Contractor in the Bill of quantities for Provisional
Sum. Maximum: Fifteen percent (15%).
Minimum Amount 60.2 ETB [insert an amount to
of Interim Payment calculate as 30-40% of the Engineer’s Estimate
21. Certificates divided by the Time for Completion expressed in
months and rounded to the nearest ETB100,000]
Percentage of 60.5 10 percent of Interim Payment Certificates upto a
22. Retention. maximum of 5 percent of Contract Price less
Provisional Sums. Retention Money may be
replaced by an unconditional Bank Guarantee of
an equal amount.
Maximum amount 60.5 Five percent (5%) of the Contract Price plus the
of Retention value of variations ascertained in accordance with
23. Money. Clause 52 all subject to price adjustment in
accordance with Clause70.
Maximum Amount 60.7 Funding Agency Requirement:

of Advance [Twenty percent (20%) of the Contract price or to
24. Payment be specified ]
Start Repayment of 60.7 After Certification of thirty (30) percent of

25. the Advance Contract Price.
Payment
Monthly Recovery 60.7 Funding Agency Requirement:
26. of Advance [40 percent of the amount of monthly Interim
Repayment Payment Certificates or to be specified.]

Time of Payment 60.8 See Table below

27. and Interest
Number of Copies 60.1 Funding Agency Requirement:

28. of Statement of 60.10 [Six (6) numbers or to be specified]
Completion and 60.11
29. Procedure for 67 The procedure for Settlement of Disputes

Settlement of is
Disputes [To be specified ,version 1 or version 2 as defined in
Section 12 of the Tendering Document]
67.1 The Appointing Authority
[To be specified, for Version 1 or Version 2

as required in Section 1 2 of the Tendering
Document].
30. Notice to Employer 68.2 The Employer’s address is:

and Engineer Ethiopian Roads Authority
Post office Box 1770, Addis Ababa, Ethiopia Tel.
No.251-1- 51-71-70/79
Fax No. 251-1-514866
The Engineer’s address is:
(to be notified )
31. Payments and 60.1 See Table below

Currency 72.2
Proportions
THE FOLLOWING ITEMS ARE TO BE FILLED IN BY THE BIDDER

AS PART OF ITS BID
Origin of Materials 60.3(a)(v) To be listed in Schedule 7 of Supplementary

32. and Plant 60.3(d) Information
Rate of Interest 60.8 Rate of interest for local currency: 7.5% or as fixed
upon Unpaid Sums by the NBE for the Ethiopian Birr (ETB). For other
33. currencies, refer to the table below.
Monthly 60.1(d) See table below
Statements 72.2
34. Currency
Proportion

Table 1: Summary of currencies of the Bid for Contract or Lot # …………
A B C D
Name of currency Amount of Rate of exchange Local currency Percentage of Bid Price
currency (local currency per equivalent 100xC
unit of foreign) C=AxB (Bid Price)
Local currency 1.00
Foreign currency #1
Foreign currency #2
Foreign currency #3
Provisional sums —
expressed in local
currency
Total 100.00
Bid Price
Table 2:
Currency (as per Sub-Clause 60.1) London Over-night Inter-Bank On-Lending Rate
(LIBOR)
Plus 2 percent
Foreign Currency # 1
Foreign Currency # 2
Etc. etc.
The above rates of interest for foreign currencies shall be supplied by the Bidder with the
appropriate publication, and these rates are subject to clarification/negotiation before
formalizing the Contract.
Approximate 70.3 See tables below

Weightings
for Price Adjustment
Formulae

Table 3: Weightings for use with Local Currency (ETB)
Description of Input Index Code Factor Weightings
Permitted Bidder's
Range of Proposed
Values Value
Fixed - a 0.1 0.1
Local Labour LL b 0.2 - 0.4
Foreign Labour FL c 0 0
Equipment E d 0 0
Aggregate A e 0.2 - 0.4
Bitumen B f 0 0
Fuel F g 0.2 - 0.5
Reinforcing Steel S s 0,05-0,10
Cement C h 0.05 - 0.1
Total (must equal 1.0) 1.0
Note 1: Sources of cost price adjustment indices shall be recognized national or international
organizations and shall be acceptable to the Employer.
Note 2: The Base Values of Indices shall be those prevailing at the date 28 days prior to the
latest date for submission of Bids and shall be substantiated by Bidders by appending copies of
the relevant publication.
Note 3: The Employer shall give details of the sources and Base Values of local indices 14
days prior to the latest date for submission of Bids.
Note 4: The Bidders Proposed Values are subject to the approval of the Engineer.

Table 4 Weightings for use with Foreign Currency 1:
Specify Currency
Permitted Bidder's
Range of Proposed
Values Value
Fixed - a 0.1 0.1
Local Labour LL b 0 0
Foreign Labour FL c 0.1 - 0.2
Equipment E d 0.25 - 0.65
Aggregate A e 0 0
Bitumen B f 0.1 - 0.2
Fuel F g 0
Reinforcing steel S s 0,05-0,10
Cement C h 0

Specify Currency
Permitted Bidder's
Range of Proposed
Values Value
Fixed - a 0.1 0.1
Local Labour LL b 0
Aggregate A e 0
Fuel F g 0
Cement C h 0
Note 4: The Bidders Proposed Values are subject to the approval of the Engineer

Specify Currency
Permitted Bidder's
Range of Proposed
Values Value
Fixed - a 0.1 0.1
Local Labour LL b 0 0
Aggregate A e 0 0
Fuel F g 0 0
Cement C h 0 0

[Bidder’s letterhead]
STATEMENT OF VISIT OF THE SITE
I, , the undersigned, hereby certify that I have, on behalf of
[insert name of Bidder or the joint venture if applicable] visited the Site
and its surroundings on the [insert date(s)], and have obtained all necessary
information for submission of the Bid.
Signature:
Name and Title:
Date:
Name , Signature ,and Date of the authorized representative:
Name:
Signature:
Date :

FORM OF BID GUARANTEE

WHEREAS, [name of Bidder ] (hereinafter called “the
Bidder ”) has submitted its Bid dated [date] for the execution of _ [name of
Contract] (hereinafter called “the Bid”).
KNOW ALL PEOPLE by these presents that we [name of bank

or insurance] having our registered office at [address] (hereinafter
called “the bank or the insurance”) are bound unto the Ethiopian Roads Authority (hereinafter
called “the Employer”) in the sum of1 [amount] for which payment
well and truly to be made to the said Employer “the bank or the insurance” binds himself, his
successors, and assigns by these presents.
1 The Bidder should insert the amount of the guarantee in words and figures denominated in
Ethiopian birr. This figure should be the same as shown in Clause 16.1 of the Biding Data. The
attention of joint venture Bidders is drawn to Clause 16.3 of the instructions to Bidders.
SEALED with the Common Seal of the said“ bank or insurance” this day of
the year .
THE CONDITIONS of this obligation are:

(1) if the Bidder withdraws its Bid during the period of Bid validity specified in the form
of Bid;
or
(2) if the Bidder refuses to accept the correction of errors in his Bid;
or
(3) if the Bidder , having been notified of the acceptance of his Bid by the Employer
during the period of Bid validity;
(a) fails or refuses to execute the form of agreement in accordance with the
Instructions to Bidders, if required; or
(b) fails or refuses to furnish the performance security, in accordance with the
instructions to Bidders;
We undertake to pay to the Employer up to the above amount upon receipt of his first written
demand, without the Employer having to substantiate his demand, provided that in his demand
the Employer will note that the amount claimed by him is due to him owing to the
occurrence of one or more of the above conditions, specifying the occurred condition or
conditions.
This guarantee will remain in force up to and including the date 28 days after the date
of expiration of the Bid validity as stated in the instructions to Bidders, or as it may be
extended by the Employer, notice of which extension(s) to “the bank or the insurance” is
hereby waived. Any demand in respect of this guarantee should reach the “ bank or insurance”
not later than the above date.
Date _ Signature of the“ bank or insurance”
Witness witness]
[Signature, name, and address of
Seal

Standard Tendering Documents Section 9
For Roadwork Contracts ICB – Forms of Agreement &
FORM OF AGREEMENT
AGREEMENT
THIS AGREEMENT made the day of [year], between the Ethiopian Roads
Authority of the Federal Democratic Republic of Ethiopia (hereinafter called “the Employer”)
of the one part and of (hereinafter called
“the contractor”) of the other part.
WHEREAS the Employer is desirous that certain works should be executed by the contractor, viz.,
, and has accepted a Tender by the contractor for the execution
and completion of such works and the remedying of any defects therein.
NOW THIS AGREEMENT WITNESSED as follows:
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.:
(a) The Letter of Acceptance
(b) The Bid, the Appendix to the Form of Bid, and the Bid Addenda
including the Minutes of Negotiation.
(c) The Conditions of Contract, Part II;
(d) The Conditions of Contract, Part I;
(e) Method of Measurement
(f) The Special Specifications
(g) The Standard Specifications
(h) The Drawings;
(i) The Priced Bill of Quantities
(j) Other documents, as listed in the Appendix to Bid

Section 9 Standard Tendering
Forms of Agreement & Documents
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 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.
IN WITNESS whereof the parties hereto have caused this agreement to be executed the day
and year first before written.
The Common Seal of was hereunto affixed in the presence
of: or
Signed, sealed, and delivered by the said
In the presence of
Binding Signature of Employer
Witnesses:
1) Name and Signature
In the Capacity of
In the Capacity of
Binding Signature of Contractor
Witnesses:
In the Capacity of
In the Capacity of

[ Financial Institution Letterhead]
PERFORMANCE GUARANTEE (UNCONDITIONAL)

To: Ethiopian Roads
Authority, Post Office Box
1770 Addis Ababa
Ethiopia
WHEREAS [name and address of Contractor] (hereinafter called “the
Contractor”) has undertaken, in pursuance of Contract No. dated to

execute [name of Contract and brief description of Works] (hereinafter called “the
Contract.”);
AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall
furnish you with a “bank or insurance" Guarantee by a recognized “ bank or insurance" for the
sum specified therein as security for compliance with his obligations in accordance with the
Contract;
AND WHEREAS we have agreed to give the Contractor such a “ bank or insurance" 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], [amount in
words], 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 thereunder 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 a date 28 days from the date of issue of the Taking-Over
Certificate.
SIGNATURE AND SEAL OF THE GUARANTOR
Name of “[Bank or Financial Institution]"

Address:
Date:
PERFORMANCE BOND
BY THIS BOND [ name and address of
Contractor]
as Principal (hereafter called “the Contractor”) and
[name, legal title, and address of surety, bonding
company or insurance company] as Surety (hereinafter called “the Surety”), are held and firmly
bound unto the Ethiopian Roads Authority, Post Office Box 1770, Addis Ababa, as Obligee
(hereinafter called “the Employer,) in the amount of [amount of Bond = 10 percent of
the contract price] , [in words], for the payment of which
sum well and truly to be made in the types and proportions of currencies in which the Contract
Prices payable, the Contractor and the Surety bind themselves, their heirs, executors,
administrators, successors and assigns, jointly and severally, firmly by these presents.
WHEREAS the Contractor has entered into a written Agreement with the Employer dated
the
day of , 20 , for [name of Contract] in
accordance with the documents, plans, specifications and amendments thereto, which to the extent
herein provided for, are by reference made part hereof and are hereinafter referred to as the
Contract.
NOW, THEREFORE, the Condition of this Obligation is such that, if the Contractor shall
promptly and faithfully perform the said Contract (including any amendments thereto) then this
obligation shall be null and void; otherwise it shall remain in full force and effect. Whenever the
Contractor shall be, and declared by the Employer to be, in default under the Contract, the
Employer having performed the Employer’s obligations thereunder, the Surety may promptly
remedy the default, or shall promptly pay the Employer the amount required by Employer to
complete the Contract in accordance with its terms and conditions up to a total not exceeding the
amount of this Bond.
The Surety shall not be liable for a greater sum than the specified penalty of this Bond.
Any suit under this Bond must be instituted before the expiration of one year from the date of the
issuing of the Taking-Over Certificate.
No right of action shall accrue on this Bond to or for the use of any person or corporation other
than the Employer named herein or the heirs, executors, administrators, successors, and assigns of
the Employer.
In testimony whereof, the Contractor has hereunto set his hand and affixed his seal, and the
Surety has caused these presents to be sealed with his corporate seal duly attested by the signature
of his legal representative, this day of 20 .
SIGNED ON SIGNED ON
On behalf of On behalf of
By By
In the capacity of In the capacity of

In the presence of In the presence of
[Financial Institution Letterhead]

ADVANCE PAYMENT GUARANTEE
To the Ethiopian Roads Authority,

The Federal Democratic Republic of Ethiopia
Addis Ababa
Ethiopia
[Insert name of contract]
Gentlemen:
In accordance with the provisions of the Conditions of Contract, Sub-Clause 60.7 (“Advance
Payment”) of the above-mentioned Contract, [name and
address of Contractor] (hereinafter called “the Contractor”) shall deposit with the Ethiopian
Roads Authority a bank guarantee to guarantee his proper and faithful performance under the said
Clause of the Contract in an amount of [insert amount of Guarantee],
-------------------------------------- [amount in words].
We, the [bank or financial institution], as instructed by the
Contractor, agree unconditionally and irrevocably to guarantee as primary obligator and not as
Surety merely, the payment to the Ethiopian Roads Authority on his first demand without
whatsoever right of objection on our part and without his first claim to the Contractor, in the
amount not exceeding [insert amount of Guarantee],
------------------------ [amount in words], such amount to be reduced periodically by the
amounts recovered by you from the proceeds of the Contract.
We further agree that no change or addition to or other modification of the terms of the Contract
or of Works to be performed thereunder or of any of the Contract documents which may be made
between the Ethiopian Roads Authority 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.
No drawing may be made by you under this guarantee until we have received notice in writing
from you that an advance payment of the amount listed above has been paid to the Contractor
pursuant to the Contract.
This guarantee shall remain valid and in full effect from the date of the advance payment under
the Contract until the Ethiopian Roads Authority receives full repayment of the same amount from
the Contractor.
Yours truly,
SIGNATURE AND
SEAL:
Name [Bank or Financial Institution]:

Address:

Date:

[Ethiopian Roads Authority Letterhead]
LETTER OF ACCEPTANCE
[Date]
To: [Name and Address of successful Tenderer]
Dear Sirs,
This is to notify you that your Tender presented, discussed and agreed dated [enter
date] for the execution of the [name of the contract as given in the Tender
data] for the Contract Price of Ethiopian birr [amount in
numbers and words], as corrected and modified in accordance with the Instructions to Tenderers,
is hereby accepted by us.
You are hereby required:
(a) to submit the performance security [specify as

provided in the Tender documents];
(b) sign the attached Agreement and return [specify as provided

in the Tender documents];
(c) to commence performance of the said Contract in accordance with the Contract
Documents; and
(d) to submit the bank guarantee for Advance Payment of percent of the Contract
Price (excluding Provisional Sums) [specify as provided in the Tender documents].
Authorized Signature
Name and Title of Signatory
Attachment: Agreement
NOTE: THIS LETTER OF ACCEPTANCE SHOULD BE SIGNED BY A PERSON

COMPETENT AND HAVING POWER OF ATTORNEY TO BIND THE EMPLOYER.

SECTION 11
SCHEDULES OF SUPPLEMENTARY INFORMATION
LIST OFCONTENTS
Schedule 1 : Information on Eligibility and Qualification
Requirements Schedule 2 : Proposed Programme of Works
Schedule 3 : Contractor’s Proposed Organisation
Schedule 4 : Contractor’s Proposed Key Personnel and Mobilisation
Chart Schedule 5 : Proposed Sub-Contractors
Schedule 6 : Proposed Major Items of Contractor’s Equipment
Schedule 7 : Origin of Materials and List of Suppliers
Schedule 8 : Build - Up of Unit Rates

Supplementary Documents
SCHEDULE 1
INFORMATION ON ELIGIBILITY AND QUALIFICATION REQUIREMENTS
QUALIFICATION UPDATE
(As requested in Clauses 5.1 and 5.2 of the ITB).
1. Power of Attorney (to insert),
2. Financial capability,
3. Current commitments / Works in progress.
4. Current litigation information ……

Application Form (2) Page of pages

2. FINANCIAL CAPABILITY
Name of Bidder or partner of a joint venture
Bidders, including each partner of a joint venture, should provide financial information to
demonstrate that they meet the requirements stated in the Prequalification Data. Each applicant
or partner of a joint venture must fill in this form. If necessary, use separate sheets to provide
complete banker information. A copy of the audited balance sheets should be attached.
Banker Name of banker
Address of banker
………………………………………………… …………………………………
……………………………
Telephone Contact name and title
Fax E mail
Summarize actual assets and liabilities for the previous three years. Based upon known
commitments, summarize projected assets and liabilities for the next two years.
Financial Actual: Previous three years Projected : next two years

Information
1. 2. 3. 4. 5.
1. Total assets
2. Current assets
3. Total liabilities
4. Current liabilities
5. Profits before taxes
6. Retained profit

Specify proposed sources of financing to meet the cash flow demands of the Project, net of current
commitments.
Source of financing Amount
1.
2.
3.
4.
Attach independent audited financial statements for the last three years (for the individual bidder
or each partner of a joint venture).
Firms owned by individuals, and partnerships, shall submit their balance sheets certified by a
registered accountant, and supported by copies of tax returns.

For Roadwork Contracts ICB –2002 Supplementary Information
SUMMARY SHEET :
3. CURRENT CONTRACT COMMITMENTS I WORKS IN PROGRESS
Bidders and each partner of a joint venture should provide information on their current
commitments on all contracts that have been awarded, or for which a letter of intent or
acceptance has been received, or for contracts approaching completion, but for which an
unqualified, full completion certificate has yet to be issued.
Note: Any misleading information by the Contractor will result in non compliance of his
tender.
Name of Contract Date of Value of o age Estimated

Award work Completed Completion
Date
1.
2.
3.
4.
5.
6.

Section 11 Standard Bidding Documents
Supplementary Information For Roadwork Contracts ICB –2002
Application Form (4) Page of

pages
For Roadwork Contracts ICB – 4. LITIGATION HISTORY 11
Bidders, including each of the partners of a joint venture, should provide information on
any history of litigation or arbitration resulting from contracts executed in the last five
years or currently under execution (refer to Prequalification Data). A separate sheet should
be used for each partner of a joint venture.
Year Name of Client, cause of litigation, Disputed Award FOR or

and matter in dispute amount AGAINST Applicant

SCHEDULE 2
PROPOSED PROGRAMME OF WORKS
The Bidder shall here insert a separate memorandum with charts showing details of his proposed
programme, from the Date of Commencement, in respect to elapsed time in months for all
significant operations (mobilization, facilities for the Employer and the Engineer, Earthworks,
Subbase course, Base course, Pavement, Bridges, Culverts, Protective Works, etc). The Bidder
shall provide for each major activity the resource allocations with the estimated monthly output.
Details should include but not necessarily be limited to:
(a) The period required for mobilization after the receipt of the Notice to Commence the Works.
(b) Periods required for establishing Contractor’s offices, workshops, and the Engineer’s
offices, laboratory and accommodation.
(c) The portions of the Site required from time to time.
(d) Periods of occupation of Contractor’s site areas and quarries.
(e) The relationship and timing of each operation to other operations within the Contract.
(f) Distance between camps .( This should be limited on project type basis . In any case it
should not be more than 50 km.)

SCHEDULE 3
CONTRACTOR'S PROPOSED ORGANISATION

(INCL. SUB-CONTRACTORS)
The Bidder shall show, in a diagrammatical form, in Schedule 3, the structure for his management
of the Contract from the level of Company Director down to Personnel responsible for sections of
the Works(e.g. Foreman), indicating the lines of responsibility. Job designation shall be given
with personnel names.

SCHEDULE 4
CONTRACTOR'S PROPOSED KEY PERSONNEL AND MOBILISATION CHART
Designation Names of : (i) Nominee Summary of Expected date

(ii) Alternate Qualifications of arrival after
Experience and issue of Notice
Present Occupation to Commence
Headquarters
Partner/Director
Project Manager
Other Key Staff

(give designation)
Site Staff
Project Manager
Assistant Project
Manager
Quality Control Manager
Equipment Engineer
Materials Engineer
Site Engineers
Quantity Surveyor
Construction Foremen
Other Key Staff
(give designation)

SCHEDULE S
PROPOSED SUB-
CONTRACTORS
Elements of Item Ref. To Bill Value in Name and Statement of

Work of Quantities accordance with Address of Similar Works
Bill of Quantities Sub-Contractor Previously
Executed
Note:
The Bidder shall enter in the Schedule a list of the items and value of work for which he proposes
to use Sub-Contractors, together with the names and addresses of the proposed Sub-Contractors.
The bidder shall also enter a statement of similar works previously executed by the proposed Sub-
Contractors, including description, location and value of work, year completed, and name and
address of the Employer/ Engineer. Notwithstanding such information, the Bidder, if awarded the
Contract, shall remain entirely and solely responsible for the satisfactory completion of the Works.

SCHEDULE 6
PROPOSED MAJOR ITEMS OF CONTRACTOR'S EQUIPMENT
The Bidder shall enter in this Schedule (adding additional pages as necessary) all major
items of Contractor’s Equipment which he proposes to bring on to the Site, either owned,
leased (rented), or proposed to be purchased and shall indicate the present location.
Description No. Year New Owned, Estima Power Capacity Present

(type, model of of or Leased or ted Rating Locatio
make) each Manu- used to be Value t m3 n
facture purchase
d

SCHEDULE 7
ORIGIN OF MATERIALS AND PLANT
MATERIALS & PLANT SUPPLIER NAME AND ADDRESS
Granular Materials
Crushed Aggregates
Bituminous Materials
Portland Cement
Steel Protective Paint
Road Signs
Thermoplastic Road Marking Material
Guard Rails
Concrete Pipes
Structural Steel
Steel Reinforcement
Etc…..
……..

SCHEDULE S
BUILD - UP OF UNIT RATES
Bidders are required to provide a detailed explanation of the build-up of the unit rates included by
them in the Bills of Quantities. The build-up provided must clearly indicate every step of the
process used in the calculation of the rates, starting from basic cost data and finishing with the
unit rate, for every rate included in the Bills.
The information provided shall include, inter

alia:
1. Detailed build-ups of hourly operating costs of all equipment including, where appropriate,
details of; purchase prices, taxes and duties, shipping, transportation, insurance, assumed plant
life, depreciation calculations, hire charges, costs of fuels and lubricants, spare parts,
maintenance etc.
2. Detailed build-ups of all staff and labour costs including, where appropriate, details of salaries,
any statutory employment dues, social health and welfare benefits, leave allowances,
overtime, travel costs etc.
3. Detailed build-ups of all materials costs including, where appropriate, details of; purchase
prices, production costs, taxes and duties, shipping and insurance, transportation, storage,
handling etc.
4. Detailed build-ups of all overhead margins, calculated separately for site overheads and
for head office overheads including, where appropriate, details of; head office support staff,
profit, taxes, finance charges, risk contingencies, site management and other non-allocated
support staff, insurance and guarantees etc., site establishment provision, building and
running costs, utilities and communications, furniture, fittings and equipment,
transportation, survey and setting-out, laboratory testing and materials etc.
5. Details of calculations of production rates for equipment and labour and assumed rates of use
of materials including, where appropriate; ideal production rates/rates of use, efficiency
factors, wastage factors, downtime factors, adverse weather factors etc.
6. Details of planned resourcing of all construction operations including, where appropriate,

programming construction operations to meet overall programme targets for completion,
required construction rates for each operation, assumed production rates for equipment and

labour, the allocation of resources to direct Bills of Quantities operations, the allocation of
resources needed for associated indirect operations (e.g. topsoil and overburden removal from
borrow pits) to appropriate Bills items.
7. Detailed build-ups for individual unit rates, incorporating equipment, labour, materials and
overhead costs as developed above, and including, where appropriate; assumed equipment
production rates, assumed labour production rates, cost build-ups for intermediate construction
operations (such as quarrying and crushing operations) etc.

SECTION 12
DISPUTE RESOLUTION PROCEDURES
I. VERSION 1 - DISPUTE REVIEW BOARD

• Annex A to Conditions of Particular application For Dispute Review
Board (DRB)
II. VERSION 2 - DISPUTE REVIEW EXPERT

• Annex A to Conditions of Particular application For Dispute Review
Expert (DRE)
Ethiopian Roads Page 12.

Dispute Resolution Documents
SECTION 12 - DISPUTE RESOLUTION

PROCEDURE
CLAUSE 67: SETTLEMENT OF DISPUTES (VERSION 1)
SUB-CLAUSE 67.1(a)
DISPUTES REVIEW BOARD (DRB)
APPOINTMENT PROCEDURE
1. "The Dispute Review Board (DRB) shall comprise three
Members experienced with the type of construction
involved in the Works and with the interpretation of
contractual documents. One Member shall be selected by
each of the Employer and the Contractor and approved by
the other. If either of these members is not so selected and
approved within 28 days of the date of the Letter of
Acceptance, then upon the request of either or both parties
such member shall be selected as soon as practicable by the
Appointing Authority specified in the Appendix to Bid.
2. The third Member shall be selected by the other two and

approved by the parties. If the two Members selected by or
on behalf of the parties fail to select the third Member
within 14 days after the later of their selections, or if within
14 days after the selection of the third Member, the parties
fail to approve that Member, then upon the request of either
or both parties such third Member shall be selected
promptly by the same Appointing Authority specified in the
Appendix to Bid who shall seek the approval of the
proposed third Member by the parties before selection but,
failing such approval, nevertheless shall select the third
Member . The third Member shall serve as Chairman of the
Board.
3. The DRB shall be established by the signing of a Board

Member's Declaration of Acceptance (as required by
paragraph 12 of Annex A to these Conditions of Particular
Application) by all three Board Members.
4. In the event of death, disability, or resignation of any

Member, such Member shall be replaced in the same
manner as the Member being replaced was selected. If for
whatever other reason a Member shall fail or be unable to
serve, the Chairman (or failing the action of the Chairman
then either of the other Members) shall inform the parties
and such non-serving Member shall be replaced in the same
Page 12. Ethiopian Roads

manner as the Member being replaced was selected.

Any replacement made by the parties shall be completed
within 28 days after the event giving rise to the vacancy
on the Board. In case of disagreement between the
Employer and the Contractor, the replacement shall be
designated, by the Appointing Authority specified in the
Appendix to Bid. Replacement shall be considered
completed when the new member signs the Board
Member's Declaration of Acceptance."
SUB-CLAUSE 67.1(b)
DISPUTES REVIEW BOARD
DISPUTES RESOLUTION PROCEDURE:
1. "If any dispute arises between the Employer and the Contractor
in connection with, or arising out of, the Contract or the
execution of the Works, whether during the execution of the
Works or after their completion and whether before or after the
repudiation or other termination of the Contract, including any
disagreement by either party with any action, inaction, opinion,
instruction, determination, certificate or valuation of the
Engineer, the matter in dispute shall, in the first place, be
referred to the DRB.
2. The DRB shall give a Recommendation in writing within 56

days of receipt of a notification of a dispute.
3. If the DRB has issued a Recommendation to the Employer and

the Contractor within the said 56 days and no notice of intention
to commence arbitration as to such dispute has been given
by either the Employer or the Contractor within 14 days after
the parties received such Recommendation from the DRB, the
Recommendation shall become final and binding upon the
Employer and the Contractor.
4. All Recommendations which have become final and binding

shall be implemented by the parties forthwith, such
implementation to include any relevant action of the Engineer.
5. Whether or not a Recommendation by DRB has become

final and binding upon the Employer and the Contractor, a
Recommendation shall be admissible as evidence in any
subsequent dispute resolution procedure, including any
arbitration or litigation having any relation to the dispute to
which the Recommendation relates.
6. If the DRB fails to issue his Recommendation within 56 days

after it has received the written Request for
Recommendation, then either the Employer or the Contractor
may, within 14 days
after the expiry of the said 56-day period, as the case may be,
give notice to the other party, with a copy for information to the
Engineer, of his intention to commence arbitration, as
hereinafter provided, as to the matter in dispute. Such notice
shall establish the entitlement of the party giving the same to
commence arbitration, as hereinafter provided, as to such
dispute and, subject to Sub-Clause 67.4; no arbitration in
respect thereof may be commenced unless such notice is given.
7. The arbitration shall be conducted in accordance with the

arbitration procedure published by the Appointing Authority
specified in the Appendix to Bid.
8. Unless the Contract has already been repudiated or terminated,

the Contractor shall, in every case, continue to proceed with the
Works with all due diligence and the Contractor and the
Employer shall give effect forthwith to every decision of
the Engineer unless and until the same shall be revised as a
result of the operation of this Sub-Clause 67.1 or, as
hereinafter provided, in an arbitral award.
9. The Disputes Review Board Members shall be paid by the hour

at the rate specified in the Tendering Data and Contract Data,
together with reimbursable expenses of the types specified
in the Contract Data, and the cost shall be divided equally
between the Employer and the Contractor, whatever decision
is reached by the DRB.
SUB-CLAUSE 67.2
AMICABLE SETTLEMENT
Sub-Clause 67.2 is deleted without a change in the

numbering
of the other Sub-Clauses of this Clause 67.
SUB-CLAUSE
67.3
ARBITRATION Sub-Clause 67.3 is modified to read as follows:
“Any dispute in respect of which the Recommendation, if
any, of the DRB has not become final and binding shall
be finally settled by arbitration in accordance with the
arbitration procedure published by the Appointing
Authority specified in the Appendix to Bid.”
“Neither party shall be limited in the proceedings

before such tribunal to the evidence or arguments

put before the DRB for the purpose of obtaining

its Recommendation(s) pursuant to Sub-clause
67.1. No Recommendation shall disqualify any
Board Member from being called as a witness
and giving evidence before the arbitrator(s) on
any matter whatsoever relevant to the dispute.
“Arbitration may be commenced prior to or after

completion of the Works, provided that the
obligations of the Employer, the Engineer, the
Contractor and the DRB shall not be altered by
reason of the arbitration being conducted during
the progress of the Works."
SUB-CLAUSE 67.4
FAILURE TO
COMPLY WITH
RECOMMENDATION
Sub-Clause 67.4 is amended to read as follows:
“Where neither the Employer nor the Contractor

has given notice of intention to commence
arbitration of a dispute within the period stated in
Sub-Clause 67.1 and the related
Recommendation has become final and binding,
either party may, if the other party fails to
comply with such Recommendation and without
prejudice to any other right it may have, refer the
failure to arbitration in accordance with Sub-
Clause 67.3. The provisions of Sub-Clause 67.1
shall not apply to any such reference.”

ANNEX "A"
VERSION 1 DISPUTE REVIEW BOARD (DRB)

Annex A to Conditions of Particular Application
Rules and Procedures for the Functions of the Disputes Review Board (DRB)
(see Clause 67 of the Conditions of Particular Application)
1. Except for providing the services required hereunder, the Board Members should not give
any advice to either party or to the Engineer concerning conduct of the Works. The
Board Members:
(a) shall have no financial interest in any party to the Contract, or the Engineer, or a financial
interest in the Contract, except for payment for services on the Board;
(b) shall have had no previous employment by, or financial ties to, any party to the Contract,
or the Engineer, except for fee-based consulting services on other projects, all of which
must be disclosed in writing to both parties prior to appointment to the Board;
(c) shall have disclosed in writing to both parties prior to appointment to the Board any and
all recent or close professional or personal relationships with any director, officer, or
employee of any party to the Contract, or the Engineer, and any and all prior involvement
in the project to which the Contract relates;
(d) shall not, while a Board Member, be employed whether as a consultant or otherwise by
either party to the Contract, or the Engineer, except as a Board Member , without the
prior consent of the parties and the other Board Members;
(e) shall not, while a Board Member, engage in discussion or make any agreement with any
party to the Contract, or with the Engineer, regarding employment whether as a
consultant or otherwise either after the Contract is completed or after service as a
Board Member is completed;
(f) shall be and remain impartial and independent of the parties and shall disclose in
writing to the Employer, the Contractor and the Engineer, any fact or circumstance
which might be such as to cause either the Employer or the Contractor to question
the continued existence of the impartiality and independence required of Board
Members ;and
(g) shall be fluent in the language of the Contract.
2. Except for its participation in the Board's activities as provided in the Contract and in this
Agreement, none of the Employer, the Contractor and or the Engineer shall solicit advice
or consultation from the Board or the Board Members on matters dealing with the
conduct of the Works.

3. The Contractor shall:
(a) Furnish to each Board Member one copy of all documents which the Board may request
including Contract Documents, progress reports, variation orders, and other documents
pertinent to the performance of the Contract.
(b) In cooperation with the Employer, coordinate the Site visits of the Board, including
conference facilities, and secretarial and copying services.
4. The Board shall begin its activities following the signing of a Board Member's
Declaration of Acceptance, and it shall terminate these activities as set forth below:
(a) The Board shall terminate its regular activities when either (i) the Defects Liability
Period referred to in Sub-Clause 49.1 (or, if there are more than one, the Defects Liability
Period expiring last) has expired, or (ii) the Employer has expelled the Contractor from
the Site pursuant to Sub-Clause 63.1, and when, in either case, the Board has
communicated to the parties and the Engineer its Recommendations on all disputes
previously referred to it.
(b) Once the Board has terminated its regular activities as provided by the previous
paragraph, the Board shall remain available to process any dispute referred to it by either
party. In case of such a referral, the Board Members shall receive payments as provided
in paragraphs 7(a)(ii), (iii) and (iv).
5. The Board Members shall not assign or subcontract any of their work under these Rules
and Procedures.
6. The Board Members are independent contractors and not employees or agents of either
the Employer or the Contractor.
7. Payments to the Board Members for their services shall be governed by the following
provisions:
(a) Each Board Member will receive payments as follows:
(i) A retainer fee per calendar month equivalent to three times the daily fee established from
time to time for arbitrators under the Administrative and Financial Regulations of the
International Centre for Settlement of Investment Disputes (the ICSID Arbitrator's
Daily Fee) or such other retainer as the Employer and Contractor may agree in
writing. This retainer shall be considered as payment in full for:
(A) Being available, on 7 days’ notice, for all hearings, Site Visits requested by either
party and other meetings of the Board.
(B) Being conversant with all project developments and maintaining relevant files.
(C) All office and overhead expenses such as secretarial services, photocopying and office
supplies (but not including telephone calls, faxes and telexes) incurred in connection with
the duties as a Board Member.

(D) All services performed hereunder except those performed during the days referred to in
paragraph (ii) below.
(ii) A daily fee equivalent to the ICSID Arbitrator's Daily Fee, or such other retainer as
the Employer and Contractor may agree in writing. This daily fee shall only be
payable in respect of the following days, and shall be considered as payment in full for:
(A) Each day up to a maximum of two days of travel time in each direction for the journey
between the Board Member's home and the Site or other location of a Board Meeting.
(B) Each day on Site or other location of a Board Meeting.
(iii) Expenses. In addition to the above, all reasonable and necessary travel expenses
(including less than first class air fare, subsistence, and other direct travel expenses) as
well as the cost of telephone calls, faxes and telexes incurred in connection with the
duties as Board Member shall be reimbursed against invoices. Receipts for all expenses
in excess of US$25.00 (U.S. Dollars Twenty Five) shall be provided.
(iv) Reimbursement of any taxes that may be levied in the country of the Site on payments
made to the Board Member (other than a national or permanent resident of the country of
the Site) pursuant to this paragraph 8.
(b) Escalation. The retainer and fees shall remain fixed for the period of the Board
Member's term.
(c) Phasing out of monthly retainer fee. Beginning with the next month after the Taking
Over Certificate referred to in Clause 48 (or, if there are more than one, the one issued
last) has been issued, the Board Members shall receive only one-third of the monthly
retainer fee. Beginning with the next month after the Board has terminated its regular
activities pursuant to paragraph 4(a) above, the Board Members shall no longer receive
any monthly retainer fee.
(d) Payments to the Board Members shall be shared equally by the Employer and the
Contractor. The Contractor shall pay the Board Members invoices within 30 calendar
days after receipt of such invoices and shall invoice the Employer (through the monthly
statements to be submitted in accordance with Sub-Clause 60.1 of the General
Conditions) for one-half of the amounts of such invoices. The Employer shall pay such
Contractor’s invoices within the time period specified in the Construction Contract for
other payments to the Contractor by the Employer.
(e) Failure of either the Employer or the Contractor to make payment in accordance with
this Agreement shall constitute an event of default under the Contract, entitling the
non- defaulting party to take the measures set forth, respectively, in Clause 63 or Clause
69.
(f) Notwithstanding such event of default, and without waiver of rights therefrom, in the event
that either the Employer or the Contractor fails to make payment in accordance with
these Rules and Procedures, the other party may pay whatever amount may be
required to finance the activities of the Board. The party making such payments, in
addition to all

other rights arising from such default, shall be entitled to reimbursement of all sums
paid in excess of one-half of the amount required to finance the activities of the Board,
plus all costs of obtaining such sums.
8. Board Site Visits:
(a) The Board shall visit the Site and meet with representatives of the Employer and the
Contractor and the Engineer at regular intervals, at times of critical construction
events, at the written request of either party, and in any case not less than 3 times in any
period of 12 months. The timing of Site visits shall be as agreed among the
Employer, the Contractor and the Board , but failing agreement shall be fixed by the
Board .
(b) Site visits shall include an informal discussion of the status of the construction of the
Works, an inspection of the Works, and the review of any Requests for Recommendation
made in accordance with paragraph 10 below. Site visits shall be attended by personnel
from the Employer, the Contractor and the Engineer.
(c) At the conclusion of each Site visit, the Board shall prepare a report covering its activities
during the visit and shall send copies to the parties and to the Engineer.
9. Procedure for Dispute Referral to the Board:
(a) If either party objects to any action or inaction of the other party or the Engineer, the
objecting party may file a written Notice of Dispute to the other party with a copy to the
Engineer stating that it is given pursuant to Clause 67 and stating clearly and in detail the
basis of the dispute.
(b) The party receiving the Notice of Dispute will consider it and respond in writing within 14
days after receipt.
(c) This response shall be final and conclusive on the subject, unless a written appeal to the
response is filed with the responding party within 7 days after receiving the response.
Both parties are encouraged to pursue the matter further to attempt to settle the
dispute. When it appears that the dispute cannot be resolved without the assistance of
the Board, or if the party receiving the Notice of Dispute fails to provide a written
response within 14 days after receipt of such Notice, either party may refer the dispute
to the Board by written Request for Recommendation to the Board . The Request shall
be addressed to the Chairman of the Board, with copies to the other party and the
Engineer, and it shall state that it is made pursuant to Clause 67.
(d) The Request for Recommendation shall state clearly and in full detail the specific
issues of the dispute to be considered by the Board .
(e) When a dispute is referred to the Board, and the Board is satisfied that the dispute
requires his assistance, the Board shall decide when to conduct a hearing on the dispute.
The Board may request that written documentation and arguments from both parties
be submitted to him before the hearing begins. The parties shall submit insofar as
possible agreed statements of the relevant facts.

(f) During the hearing, the Contractor, the Employer and the Engineer shall each have ample
opportunity to be heard and to offer evidence. The Board's Recommendations for
resolution of the dispute will be given in writing to the Employer, the Contractor and the
Engineer as soon as possible, and in any event not less than 28 days after receipt by
the Board of the written Request for Recommendation.
10. Conduct of Hearings:
(a) Normally hearings will be conducted at the Site, but any location that would be more
convenient and still provide all required facilities and access to necessary documentation
may be utilized by the Board .
(b) The Employer, the Engineer and the Contractor shall be given the opportunity to have
representatives at all hearings.
(c) During the hearings, no Board Member shall express any opinion concerning the merit
of the respective arguments of the parties.
(d) After the hearings are concluded, the Board shall meet privately to formulate its
Recommendations and shall submit them in writing, together with an explanation of
its reasoning, to both parties and to the Engineer. The Recommendations shall be based
on the pertinent Contract provisions, applicable laws and regulations, and the facts
and circumstances involved in the dispute.
(e) The Board shall make every effort to reach a unanimous Recommendation. If this proves
impossible, the majority shall decide, and the dissenting Member may prepare a written
minority report for submission to both parties and to the Engineer.
11. In all procedural matters, including the furnishing of written documents and
arguments relating to disputes, Site visits, and conduct of hearings, the Board shall
have full and final authority.
12. After having been selected, each Board Member shall sign two copies of the following
declaration and make one copy available each to the Employer and to the Contractor:

"BOARD MEMBER'S DECLARATION OF ACCEPTANCE
WHEREAS
(a) a Construction Contract (the Contract) for the ------------------------------------------

PROJECT(fill in name of project) has been signed on (fill in date)between----
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------( fill in the name of Employer) and -----------------------
------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------(fill in name of
Contractor).
(b) Clause 67 of the Conditions of Particular Application of the Construction Contract and
Annex A to said Conditions provide for the selection of a Disputes Review Board (the
Board);
(c) the undersigned has been selected to serve as a Board Member on said Board ;
NOW THEREFORE, the undersigned Board Member hereby declares as follows:
1. I accept the selection as a Board Member and agree to serve on the Board and to be
bound by the provisions of Clause 67 of the Conditions of Particular Application of the
Contract and Annex A to said Conditions.
2. With respect to paragraph 1 of said Annex A, I declare
(a) that I have no financial interest of the kind referred to in subparagraph (a);
(b) that I have had no previous employment nor financial ties of the kind referred to in
subparagraph (b); and
(c) that I have made to both parties any disclosures that may be required by sub-paragraphs
(b) and (c).
BOARD
MEMBER
[print name of Board Member ]

Date: "

SECTION 12 - DISPUTE RESOLUTION

PROCEDURE
Clause 67: Settlement of Disputes (version 2)
SUB-CLAUSE 67.1 (a)

DISPUTES REVIEW EXPERT (DRE)
APPOINTMENT PROCEDURE
1. “The Dispute Review Export (DRE) shall be a person

experienced with the type of construction involved in the
Works and with the interpretation of contractual documents
and shall be selected by agreement between the Employer
and the Contractor. If the DRE is not selected within 28
days of the date of the Letter of Acceptance, then upon the
request of either or both parties the DRE shall be selected as
soon as practicable by the Appointing Authority specified in the
Appendix to Bid.”
2. The DRE shall take up his functions after having signed a

DRE’s Declaration of Acceptance (as required by paragraph 12
of Annex A to these Conditions of Particular Application).
3. In the event of death, disability, or resignation of the DRE,

the latter shall be replaced by agreement between the Employer
and the Contractor. Any replacement made by the parties
shall be completed within 28 days after the event giving rise to
the need for a replacement. In case of disagreement between
the Employer and the Contractor, the DRE shall be
designated by the same Appointing Authority specified in
the Appendix to Bid.”
SUB-CLAUSE 67.1(b)
DISPUTES RESOLUTION
PROCEDURE BY DRE
1. "If any dispute arises between the Employer and the Contractor
in connection with, or arising out of, the Contract or the
execution of the Works, whether during the execution of the
Works or after their completion and whether before or after the
repudiation or other termination of the Contract, including any
disagreement by either party with any action, inaction, opinion,
instruction, determination, certificate or valuation of the
Engineer, the matter in dispute shall, in the first place, be
referred to the DRE .
2. The DRE shall give a Recommendation in writing within 56

days of receipt of a notification of a dispute.

3. If the DRE has issued a Recommendation to the Employer and

the Contractor within the said 56 days and no notice of intention
to commence arbitration as to such dispute has been given
by either the Employer or the Contractor within 14 days after
the parties received such Recommendation from the DRE, the
Recommendation shall become final and binding upon the
Employer and the Contractor.
4. All Recommendations which have become final and binding

shall be implemented by the parties forthwith, such
implementation to include any relevant action of the Engineer.
5. Whether or not the DRE's Recommendation has become

final and binding upon the Employer and the Contractor, a
Recommendation shall be admissible as evidence in any
subsequent dispute resolution procedure, including any
arbitration or litigation having any relation to the dispute to
which the Recommendation relates.
6. If the DRE fails to issue his Recommendation within 56 days

after he has received the written Request for
Recommendation, then either the Employer or the Contractor
may, within 14 days after the expiry of the said 56-day period,
as the case may be, give notice to the other party, with a copy
for information to the Engineer, of his intention to commence
arbitration, as hereinafter provided, as to the matter in
dispute. Such notice shall establish the entitlement of the
party giving the same to commence arbitration, as hereinafter
provided, as to such dispute and, subject to Sub-Clause 67.4;
no arbitration in respect thereof may be commenced unless
such notice is given.
7. The arbitration shall be conducted in accordance with the

specified in the Appendix to Bid.
8. Unless the Contract has already been repudiated or terminated,

the Contractor shall, in every case, continue to proceed with the
Works with all due diligence and the Contractor and the
Employer shall give effect forthwith to every decision of
the Engineer unless and until shall be revised as a result of
the operation of this Sub-Clause 67.1 or, as hereinafter
provided, in an arbitral award.
9. The DRE shall be paid by the hour at the rate specified in the
Tendering Data and Contract Data, together with reimbursable
expenses of the types specified in the Contract Data, and the

cost shall be divided equally between the Employer and the

Contractor, whatever decision is reached by the DRE."
SUB-CLAUSE 67.2
AMICABLE SETTLEMENT
Sub-Clause 67.2 is deleted without a change in the

numbering of the other Sub-Clauses of this Clause 67.
SUB-CLAUSE
67.3
ARBITRATION Sub-Clause 67.3 is modified to read as follows:
“Any dispute in respect of which the Recommendation, if

any, of the DRE has not become final and binding shall be
finally settled by arbitration in accordance with the
specified in the Appendix to Bid.”
“Neither party shall be limited in the proceedings before such
tribunal to the evidence or arguments put before the DRE for
the purpose of obtaining its Recommendation(s) pursuant to
Sub-clause 67.1. No Recommendation shall disqualify any
Board Member from being called as a witness and giving
evidence before the arbitrator(s) on any matter whatsoever
relevant to the dispute."
“Arbitration may be commenced prior to or after completion

of the Works, provided that the obligations of the Employer,
the Engineer, the Contractor and the DRE shall not be
altered by reason of the arbitration being conducted during
the progress of the Works."
SUB-CLAUSE 67.4
FAILURE TO
COMPLY WITH
RECOMMENDATION
Sub-Clause 67.4 is amended to read as follows:
“Where neither the Employer nor the Contractor has given

notice of intention to commence arbitration of a dispute within
the period stated in Sub-Clause 67.1 and the related
Recommendation has become final and binding, either party

may, if the other party fails to comply with such

Recommendation and without prejudice to any other right it
may have, refer the failure to arbitration in accordance with
Sub-Clause 67.3. The provisions of Sub-Clause 67.1 shall not
apply to any such reference.”

ANNEX "A"
VERSION 2 DISPUTE REVIEW EXPERT (DRE)

Annex A to Conditions of Particular Application
Rules and Procedures for the Functions of the Disputes Review Expert (DRE)
(see Clause 67 of the Conditions of Particular Application)
1. Except for providing the services required hereunder, the DRE should not give any
advice to either party or to the Engineer concerning conduct of the Works. The DRE:
(a) shall have no financial interest in any party to the Contract, or the Engineer, or a financial
interest in the Contract, except for payment for his services;
(b) shall have had no previous employment by, or financial ties to, any party to the Contract,
or the Engineer, except for fee-based consulting services on other projects, all of which
must be disclosed in writing to both parties prior to selection as DRE;
(c) shall have disclosed in writing to both parties prior to selection as DRE any and all recent
or close professional or personal relationships with any director, officer, or employee of
any party to the Contract, or the Engineer, and any and all prior involvement in the
project to which the Contract relates;
(d) shall not, while serving as DRE, be employed whether as a consultant or otherwise by
either party to the Contract, or the Engineer, except as a DRE, without the prior consent
of the parties;
(e) shall not, while serving as DRE, engage in discussion or make any agreement with any
party to the Contract, or with the Engineer, regarding employment whether as a
consultant or otherwise either after the Contract is completed or after service as DRE
is completed;
(f) shall be and remain impartial and independent of the parties and shall disclose in
writing to the Employer, the Contractor and the Engineer, any fact or circumstance
which might be such as to cause either the Employer or the Contractor to question
the continued existence of the impartiality and independence required of a DRE; and
(g) shall be fluent in the language of the Contract.
2. Except for its participation in DRE’s activities as provided in the Contract and in this
Agreement, none of the Employer, the Contractor and or the Engineer shall solicit advice
or consultation from the DRE on matters dealing with the conduct of the Works.
3. The Contractor shall:

(a) Furnish to the DRE a copy of all documents which he may request including Contract
Documents, progress reports, variation orders, and other documents pertinent to the
performance of the Contract.
(b) In cooperation with the Employer, coordinate the Site visits of the DRE, including
conference facilities, and secretarial and copying services.
4. The DRE shall begin his activities following the signing of a DRE’s Declaration of
Acceptance, and he shall terminate these activities as set forth below:
(a) The DRE shall terminate his regular activities when either (i) the Defects Liability
Period referred to in Sub-Clause 49.1 (or, if there are more than one, the Defects Liability
Period expiring last) has expired, or (ii) the Employer has expelled the Contractor from
the Site pursuant to Sub-Clause 63.1, and when, in either case, the DRE has
communicated to the parties and the Engineer his Recommendations on all disputes
previously referred to him.
(b) Once the DRE has terminated his regular activities as provided by the previous
paragraph, the DRE shall remain available to process any dispute referred to him by
either party. In case of such a referral, the DRE shall receive payments as provided in
paragraphs 7(a)(ii), (iii) and (iv).
5. The DRE shall not assign or subcontract any of his work under these Rules and
Procedures.
6. The DRE is an independent contractor and not an employee or agent of either the
Employer or the Contractor.
7. Payments to the DRE for his services shall be governed by the following provisions:
(a) The DRE will receive payments as follows:
(i) A retainer fee per calendar month equivalent to three times the daily fee established from
time to time for arbitrators under the Administrative and Financial Regulations of the
International Centre for Settlement of Investment Disputes (the ICSID Arbitrator’s
Daily Fee), or such other retainer as the Employer and Contractor may agree in
writing. This retainer shall be considered as payment in full for:
(A) Being available, on 7 days’ notice, for all hearing and Site Visits requested by
either party.
(B) Being conversant with all project developments and maintaining relevant files.
(C) All office and overhead expenses such as secretarial services, photocopying and office
supplies (but not including telephone calls, faxes and telexes) incurred in connection with
the duties as a DRE.
(D) All services performed hereunder except those performed during the days referred to in
paragraph (ii) below.

(ii) A daily fee equivalent to the ICSID Arbitrator’s Daily Fee, or such other daily fee as
the Employer and Contractor may agree in writing. This daily fee shall only be
payable in respect of the following days, and shall be considered as payment in full for:
(A) Each day up to a maximum of two days of travel time in each direction for the journey
between the DRE’s home and the Site.
(B) Each day on Site or other location convening the service.
(iii) Expenses. In addition to the above, all reasonable and necessary travel expenses
(including less than first class air fare, subsistence, and other direct travel expenses) as
well as the cost of telephone calls, faxes and telexes incurred in connection with the
duties as DRE shall be reimbursed against invoices. Receipts for all expenses in excess
of US$25.00 (U.S. Dollars Twenty Five) shall be provided.
(iv) Reimbursement of any taxes that may be levied in the country of the Site on payments
made to the DRE (other than a national or permanent resident of the country of the Site)
pursuant to this paragraph 8.
(b) Escalation. The retainer and fees shall remain fixed for the period of the DRE’s term.
(c) Phasing out of monthly retainer fee. Beginning with the next month after the Taking
Over Certificate referred to in Clause 48 (or, if there are more than one, the one issued
last) has been issued, the DRE shall receive only one-third of the monthly retainer fee.
Beginning with the next month after the Board has terminated its regular activities
pursuant to paragraph 4(a) above, the DRE shall no longer receive any monthly retainer
fee.
(d) Payments to the DRE shall be shared equally by the Employer and the Contractor. The
Contractor shall pay the DRE’s invoices within 30 calendar days after receipt of such
invoices and shall invoice the Employer (through the monthly statements to be submitted
in accordance with Sub-Clause 60.1 of the General Conditions) for one-half of the
amounts of such invoices. The Employer shall pay such Contractor’s invoices within the
time period specified in the Construction Contract for other payments to the Contractor
by the Employer.
(e) Failure of either the Employer or the Contractor to make payment in accordance with
this Agreement shall constitute an event of default under the Contract, entitling the
non- defaulting party to take the measures set forth, respectively, in Clause 63 or Clause
69.
(f) Notwithstanding such event of default, and without waiver of rights therefrom, in the event
that either the Employer or the Contractor fails to make payment in accordance with
these Rules and Procedures, the other party may pay whatever amount may be
required to finance the activities of the DRE. The party making such payments, in
addition to all other rights arising from such default, shall be entitled to reimbursement
of all sums paid in excess of one-half of the amount required to finance the activities of
the DRE, plus all costs of obtaining such sums.
8. DRE Site Visits:

(a) The DRE shall visit the Site and meet with representatives of the Employer and the
Contractor and the Engineer at regular intervals, at times of critical construction
events, at the written request of either party, and in any case not less than 3 times in any
period of 12 months. The timing of Site visits shall be as agreed among the
Employer, the Contractor and the DRE, but failing agreement shall be fixed by the DRE.
(b) Site visits shall include an informal discussion of the status of the construction of the
Works, an inspection of the Works, and the review of any Requests for Recommendation
made in accordance with paragraph 10 below. Site visits shall be attended by personnel
from the Employer, the Contractor and the Engineer.
(c) At the conclusion of each Site visit, the DRE shall prepare a report covering his activities
during the visit and shall send copies to the parties and to the Engineer.
9. Procedure for Dispute Referral to the DRE :
(a) If either party objects to any action or inaction of the other party or the Engineer, the
objecting party may file a written Notice of Dispute to the other party with a copy to the
Engineer stating that it is given pursuant to Clause 67 and stating clearly and in detail the
basis of the dispute.
(b) The party receiving the Notice of Dispute will consider it and respond in writing within 14
days after receipt.
(c) This response shall be final and conclusive on the subject, unless a written appeal to the
response is filed with the responding party within 7 days after receiving the response.
Both parties are encouraged to pursue the matter further to attempt to settle the
dispute. When it appears that the dispute cannot be resolved without the assistance of the
DRE, or if the party receiving the Notice of Dispute fails to provide a written response
within 14 days after receipt of such Notice, either party may refer the dispute to the DRE
by written Request for Recommendation to the DRE. The Request shall be addressed to
the DRE, with copies to the other party and the Engineer, and it shall state that it is
made pursuant to Clause 67.
(d) The Request for Recommendation shall state clearly and in full detail the specific
issues of the dispute to be considered by the DRE.
(e) When a dispute is referred to the DRE, and the DRE is satisfied that the dispute requires
his assistance, the DRE shall decide when to conduct a hearing on the dispute. The DRE
may request that written documentation and arguments from both parties be submitted
to him before the hearing begins. The parties shall submit insofar as possible
agreed statements of the relevant facts.
(f) During the hearing, the Contractor, the Employer and the Engineer shall each have ample
opportunity to be heard and to offer evidence. The DRE’s Recommendations for
resolution of the dispute will be given in writing to the Employer, the Contractor and the
Engineer as soon as possible, and in any event not less than 56 days after receipt by
the DRE of the written Request for Recommendation.
10. Conduct of Hearings:

(a) Normally hearings will be conducted at the Site, but any location that would be more
convenient and still provide all required facilities and access to necessary documentation
may be utilized by the DRE.
(b) The Employer, the Engineer and the Contractor shall be given the opportunity to have
representatives at all hearings.
(c) During the hearings, the DRE shall not express any opinion concerning the merit of the
respective arguments of the parties.
(d) After the hearings are concluded, the DRE shall formulate his Recommendations and
shall submit them in writing, together with an explanation of his reasoning, to
both parties and to the Engineer. The Recommendations shall be based on the
pertinent Contract provisions, applicable laws and regulations, and the facts and
circumstances involved in the dispute.
11. In all procedural matters, including the furnishing of written documents and
arguments relating to disputes, Site visits, and conduct of hearings, the DRE shall have
full and final authority.
12. After having been selected, the DRE shall sign two copies of the following declaration
and make one copy available each to the Employer and to the Contractor.

DISPUTES REVIEW EXPERT’S DECLARATION OF ACCEPTANCE
WHEREAS
a) a Construction Contract (the Contract) for the ------------------------------------------
Project (fill in name of project) has been signed on (fill in date)between-------
------------------------------------------------------------------------------------------------------------
----------------------------------------------( fill in the name of Employer) and -------------------
------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------(fill in name
of Contractor).
(b) Clause 67 of the Conditions of Particular Application of the Construction Contract and
Annex A to said Conditions provide for the selection of a Disputes Review Expert
(DRE);
(c) the undersigned has been selected to serve as the DRE;
Now therefore, the undersigned DRE hereby declares as follows:
1. I accept the selection as a DRE and agree to serve in this capacity and to be bound by the
provisions of Clause 67 of the Conditions of Particular Application of the Contract and
Annex A to said Conditions.
2. With respect to paragraph 1 of said Annex A, I declare
(a) that I have no financial interest of the kind referred to in subparagraph (a);
(b) that I have had no previous employment nor financial ties of the kind referred to in
subparagraph (b); and
(c) that I have made to both parties any disclosures that may be required by sub-paragraphs
(b) and (c).
DISPUTES REVIEW EXPERT
[Print name of DRE]
Date:

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FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

INTER NATIONAL COMPETITIVE BIDDING

To: [name of Contractor]

Reference: (Funding Agency Reference No should be included) , Contract(s) Name

Ethiopian Roads Authority Page 1. 1

General Manager’s Office

at or before 3:00 pm (15:00 hours) on [date]. Bids will be opened immediately

Name and title

Page 1.2 Ethiopian Roads Authority

1.Ato Belayneh Wolde

Mr.Micheal S. Nyquist - Louis Berger Group Project Manager

Ethiopian Roads Pag

Page Ethiopian Roads

• Sub-clause within the major heading (level

Ethiopian Roads Pag

ETHIOPIAN ROADS AUTHORITY

This area to be competed by the Head

MANUAL CHANGE CHANGE NO.

Submitted by: Date:

Head of Contract Administration Division

Approved by: Date:

ERA General Manager

Ethiopian Roads Page

Page Ethiopian Roads