Contract Agreement ANCHOR WORK

1. CONTRACT AGREEMENT
This agreement is made on the day of August 20th ,2020, between

SURGI PHARMA industries plc,

whose registered address is

_Bole_Sub city, Woreda___3__, House No_747_____, Addis Ababa Ethiopia,

Tel 0114671744_, P.O. Box ____________, Email: _______________,

(Hereinafter called the “THE CLIENT”),

And

MUSE ALEMSEGED G.C(MALEM Drilling)

whose registered adress is

Bole Sub City, Kebele/Woreda 0, House No. 217/A, Addis Ababa, Ethiopia

Tel. +251 912 612 847, P.O.Box 50974, Email:musealemtrading@gmail.com

(Hereinafter referred to as “THE CONTRACTOR”)

1.1. APPOINTMENT OF THE CONTRACTOR

The client hereby appoints the Contractor for Shotcrete and Anchoring of shoring pile works (hereinafter
referred to as “THE WORKS”) for SURGI PHARMA Industries plc 2B+G+7 building construction,

The Contractor accepts the appointment on the terms and conditions as herein after set forth, and has
enough equipment, manpower and experience to perform THE WORKS.

1.2. CONTRACT DOCUMENTS

It is agreed and understood that the following documents:

1. This Agreement
2. Technical and Commercial Considerations (Section 2)
3. Priced bill of quantities and payment terms (Section 3)
4. Responsibility Matrix (Section 4)
5. Soil Report

Shall be known as “THE CONTRACT DOCUMENTS” and represent the Agreement between the client
and the contractor and that there is no other agreement or any other document relating to this document.

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1.3. AGREEMENT CONSIDERATION

In consideration of payments to be made by the Client, The Contractor hereby covenants with the client
to execute and complete the works within 25 Working days and remedy any defects therein conformity, in
all respects, with the provisions of the contract and the Client hereby covenants to pay the Contractor in
consideration of the works Birr 1,367,798.50 (One Million Three Hundred Sixty Seven Thousand Seven
Hundred Ninety Eight and 50/100 birr) including VAT on the terms and in the manner prescribed by the
Contract Document.

1.4. APPLICABLE LAW

This agreement shall be governed by the law of Ethiopia. This agreement has been signed in two copies
of which one copy that the CLIENT shall keep and remaining one for the CONTRACTOR. In witness
whereof the parties here have cause their respective common seals to be here to affixed on the day and year
written before:

On behalf of the CLIENT On behalf of the CONTRACTOR

Name: _______________________ Name: ______________________

Signature:____________________ Signature:___________________

Date: ________________________ Date: _______________________

Witnesses:

Name Signature
1. ___________________________ ____________________

2.___________________________ _____________________

3.___________________________ _____________________

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2. WORK DESCRIPTION AND OBLIGATIONS OF THE CLIENT AND CONTRACTOR

2.1. WORK DESCRIPTION

 The Pile Installation and Shotcrete works by the contractor will be performed at the clients site
located in Addis Ababa bole area Around Wengelawit building. The piles will be drilled and casted
by the Contractor.
 The work will be performed in five stages.
 Stage 1 – Pile Drilling and installation
 Stage 2 – Application of first layer Shotcrete
 Stage 3 – Application of second layer Shotcrete
 The Maximum excavation depth will be 4.2 meters from the NGL Level.

2.2. OBLIGATIONS OF THE CLIENT

 Provide and maintain stable and dry working platform and free unhindered access to all area where
works have to be performed, suitable for 8 – 15 tons’ equipment.
 Locate and remove all existing utilities, cables services as well as old foundations and obstacles
within the area where the works have to be performed.
 Perform, all necessary dewatering works, if required.
 Survey and set out the position of the works including continuous marking of points.
 Three phase Electricity for the execution of Shoring work
 Provide Temporary shade for the dry mixing area.
 Supply of Rebar, Cement, Sand, Aggregate and fresh water.

2.3. OBLIGATIONS OF THE CONTRACTOR:

 Arrange and mobilization equipment & tools to the working site and demobilize from the working
site
 Provide Labor for rebar fixing for the Shotcrete work, with the necessary shotcrete machine,
conveying hose, and heavy duty air compressor.
 Supply Drilling machines and operators.
 Provide the required diesel, lubricant oil and grease for the Anchoring machine.
 Safety orientation for the labors.

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3. PRICED BILL OF QUANTITY AND TERMS OF PAYMENT

3.1. PRICED BILL OF QUANTITY

All prices are expressed in ETB (Ethiopian Birr) and are net prices which are subject to 15% VAT

DESCRIPTION UNIT QTY RATE TOTAL

1 Mobilization of staff and equipment for pile 1.0

Shoring Ls 0 38,000.00 38,000.00

2 Installation of Shoring Pile with a Maximum

depth of 12 m including Drilling, Installation of
concrete in diam. 600 mm piles Mixing of C-25
concrete, pouring of concrete, chemical,
Fabricate & Install Reinforcement for shoring
pile. ML 473 1,950 922,350.00

3 Perform Shotcrete membrane between installed

reinforced concrete piles thickness of approx.
10cm.Excluding supply of raw materials,
reinforcement and cement, sand & aggregate.
Including Supply of Shotcrete machine with
conveying hose and heavy duty air compressor m2 189 890 168,210.00

4 Installation of Top Tie Bracing beam including

Formwork, reinforcement work and concrete. ML 77 790 60,830.00

Total Carried to Summary 1,189,390.00

VAT 15% 178,408.50

GRAND TOTAL 1,367,798.50

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3.2. TERMS OF PAYMENT

1. 35 % of the contract amount shall be released after Signing of contract agreement.

2. About 30% of the contract amount upon delivery of tools for the Piling Work, machine mobilization
and start Drilling work.
3. About 30% of the contract amount upon completion of 60% piling works.
4. About 5% of the contract amount upon completion of Second Layer Shotcrete work.
(Payment shall be prepared based on the work executed considering the unit rate of each item of work
as detailed in this contract for the final payment)

No Amount Net Amount VAT Payment Amount Milestone

1 35% 416,286.50 62,442.98 478,729.48 At the time of contract signing
2 30% 356,817.00 53,522.55 410,339.55 Mobilization of Drilling machine and start Drilling Work
3 30% 356,817.00 53,522.55 410,339.55 completion of 60% of the piles 26
4 5% 59,469.50 8,920.43 68,389.93 completion of Shotcrete work
Grand Total 1,367,798.50

Remark
The Contractor shall submit Insurance Guarantee in a form acceptable to the client in amounts and
currencies equal to the advance payment. The guarantee shall remain effective until the advance
payment shall be repaid, but the amount of the guarantee shall be progressively reduced by the amount
repaid by The Contractor.

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4. RESPONSIBILITY MATRIX

No. Responsibility

1. Supply of Pile Drilling Machine; Contractor

Grouting Machine; Shotcrete Machine;
Stressing equipment

2. Supply of Labor for the works Contractor

3. Supply of Cement, Reinforcement bar, Client

Sand, Aggregate 00

4. Supply of Fresh Water Client

5. Supply of Electric Power Client

6. Shoring Design for the proposed layout Client Contractor

7. Geotechnical Investigation Client

8. Backfill for platform preparation Client

9. Construction permit Client

10. Identifying and relocating buried utility Client

lines out of site boundary