Contract for the supply of Traffic Road signs

Buyer: China Civil Engineering Construction Corporation (Herein after referred to as party A)

Supplier: Mayfair services Ltd (Herein after referred to as party B)

Whereas:

Party B has the capability to manufacture and supply road signs to party A at certain terms and
condition, in order to make clear of the rights and obligations of both parties through friendly
consultations the parties therefore agreed as follows:

1. Specification Unit Price and Quality

1.1 Specification and Unit Price

UNIT PRICE TOTAL PRICE

S/No. TYPE SIZE DESCRIPTION QTY
(UGX) (UGX)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total price before VAT (18%）
………...% Discount (to be agreed upon)
Total after discount
VAT (18%)
Total price including VAT (18%)
Material Specification:
Reflective material: All supplied signs will be manufactured using Engineering Grade Reflective
material, which is durable for a minimum of 7 years. Conforming to the ASTM A D4956
standard.

Plate: Sign plates will be of 3mm Aluminium composite sheet. Durable for a minimum warranty
of 10 years.

Pole: - The supplied posts will be of size 75x2.65mm x3.3m. The posts are of hot galvanized
conforming to BS 1985: 1387 standard which will include clips, bolts and nuts plus all necessary
accessories with clamping system method.

Sign Paint: 3m Engineering reflective ink with reflective background shall be used

Reflective ink: Use special reflective inks to ensure the right reflectivity of the signs.

1.2 Product quality Standards.

1.21 The quality of the said road signs must comply with the requirements of specifications
for the project and Uganda general specifications for the road and bridge works.

1.22 Party A and its Consultant/Client (UNRA) will at any time test random samples of the
road signs either in the quarry or at site to ensure that the quality is not compromised.

1.23 Only qualified products will be paid for and party B shall submit a guarantee of 7 years
upon which he is liable for the effectiveness, durability and performance of the supplied
signages after all the products have been delivered.

1.24 Unqualified products shall not be accepted by part A at point of delivery and shall
therefore be taken away immediately by part B.

2. Quantity

The total quantity will be ……... complete road signs and the final amount
UGX………………… (shillings only) as in clause 1.1 above. This amount shall include all taxes
including withholding tax and VAT.

3. Time

3.1 Party B shall complete the required road signs within 45 working days. The first delivery of
70% of the required quantities shall be within 21 days after a 50% advance payment from party
A to party B. If party B fails to produce the quantity and quality of road signs needed by party
A on time, a penalty for breach of contract equivalent to 5% of the payment for the undelivered
portion of the product shall be paid by party B to party A at the time of payment.
All Delivery and Installation shall be done by party A.

4. Payment

4.1 Initial payment deposit of 50% shall be made immediately after the contract has been signed
by both parties. Then 30% payment shall be made after full delivery of all traffic road signs
including all the installation accessories. The remaining 20% payment shall be made after all
traffic road signs have been approved by Consultant/Client (UNRA) officially. Payment shall be
effected by bank transfer and party A shall pay part B within one month after party A has
received the TAX INVOICE from Party B. Before payment is made, invoices shall be issued for
each payment.

4.2 Provided that the initial payment of 50% deposit is made as stipulated in 4.1 above. If party
B cannot produce the required road signs by party A on time. For the delay of everyday a penalty
equivalent to 0.1% of the payment shall be paid to party A by party B. If party B delay
delivering the required traffic road signs to the site more than ten days, Party A is entitled to
terminate the contract without any notice and party B is not entitled to make any claim on Party
A.

4.3 After signing the contract, party A will provide a delivery schedule to Party B as stipulated
in this document.

5. Force majeure

If either party is unable to perform this contract because of Force Majeure, the effected party
shall give a notice to the other party about the causes approved by the certificate issued by the
relevant competent authorities, in this case this contract shall be performed in a prolonged term,
or partially performed or not performed, both parties would be exempted from any responsibility
for breach of contract.

6. Others

6.1 Any dispute arising from this contract shall be settled through negotiations by the two
parties hereof, if an agreement could not be reached, any party may submit it to an arbitration
commission for arbitration, the expense of which shall be borne by the party who has put
forward the proposal. Arbitration shall take place in Uganda; the decision made by the arbitration
commission shall be accepted as final, binding upon both parties. The fees for arbitration shall be
borne by the losing party unless otherwise awarded.

The contract shall come into force from……………………During the execution of this contract,
other matters that are not mentioned hereby shall be stipulated in complimentary provisions
through negotiation by both parties, which shall have the equal force with contract. This contract
is made in duplicate, one copy for each party.

Buyer (Party A): Supplier (Party B):

Representative: Representative:

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Signature & Stamp: Signature & Stamp:

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