FINAL YEAR PROJECT ON G+2 LIBRARY BUILDING STRUCTURAL DESIGN AND COST 2013/2014 A.

Y
ESTIMATION
1. Agreement for Construction of A G+2 Library building

Parties to & Purpose of Agreement

Whereas Company, , Address , Sub-City,

Kebele , House No. Telephone no. hereafter
referred as the "Contractor" is a Company' established and registered under the laws of Ethiopia
to provide Construction Services;

Whereas Mr. IMrs. IMiss. Address , Sub-City

, Kebele , House No. Telephone no.
hereafter referred to as the " Client" has engaged the Contractor
to construct, on his behalf, a G+2 Library house stated here under on vacant land secured by the
government.

Now Therefore This Agreement Witnesses as follows.

ARTICLE ONE
1. Definitions
In this Agreement, unless the context otherwise requires, the following terms shall have
the meanings ascribed to them as follows:

1.1 'Work' shall mean carrying out the construction activities required to build the house as per
the plan and specifications stipulated in this contract.

1.2 Substructure work shall mean the part of the building that is located below and up to the
ground level.

1.3 Superstructure shall mean the portion of the building that is above the ground level.

1.4 'Standard Specification' shall mean the specification of each pay item as descriptively
given in the Bill of Quantities.

1.5 Commencement date' shall mean the date on which the construction of the house
shall commence or shall be deemed to commence. In this agreement the
commencement date shall not be extended more than two months from the date of signing
of the contract and settlement of the agreed up on advance payment.

CIVIL ENGINEERING DEPARTMENT, AMIT

Page 4
1.6 Structural work' shall mean construction of the skeletal part of the building be it in the
substructure i.e. foundation, basement..... etc or the superstructure i.e. columns,
beams, slabs, walls, roof without cover and other similar parts of the building that are to
receive further finishing works.

1.7 'Advance payment' shall mean the initial payment made under this agreement,
which shall be repaid by deducting the same percentage as the advance is from
subsequent proceeds that are to be made at different stages of the work as outlined in this
contract

1.8 'Finishing work' shall mean construction activity, following the end of the construction of
structural elements of the building that is carried out in order to render the house
complete and ready for its intended use. Finishing work includes works on floors, walls,
roof covers, such as floor tiling, wall plastering, painting, fixing of windows and doors,
ceiling work and any other last touches that are required to complete the house for hand
over.

1.9 'House' shall mean a residential structure erected as per plan, which is elaborately
described in the attachment to this agreement as provided for in the attachment
hereof with standard specifications selected or agreed by the Client, with or
without options taken by him thereon as constructed or under construction. "

1.10 'Plot' shall mean an apportioned piece of land at specified area of the site forming the
compound where the house rests. Each such specified area shall subsequently be
identified by title deed made to the name of the Client.

1.11 'Progressive payments' shall mean payments other than the advance payment paid
in accordance with this Agreement.

1.12 'Property' shall mean the plot of land and the house thereon.

1.13 'Representative' shall mean an agent, appointed by the Client in accordance with
this agreement.

1.14 'Site' shall mean the land acquired by the Developer for residential construction purposes
located in a specified part of the city that is referred by the designations of Kebele and
Sub-City of Addis Ababa.
 ARTICLE TWO

2. Appointment & Remuneration

2.1. The Client hereby represents that he is sufficiently informed about, and is satisfied with the
site and residential house plans and appoints the Developer as his agent and engages his
services:

2.1.1.To have the selected house type constructed for the Client in accordance with the terms of
this agreement and the applicable building codes of the country or of the city
administration;

2.1.2.To follow up the process of securing the title deed in the name of the Client;

2.1.3.To make the necessary inspections and supervision to ensure that the site
development work shall be as described in this agreement and the construction of the
house shall be as per its specifications stipulated in this contract; and,

2.1.4.To maintain relevant information and proper accounts relating to the construction of
the house.

ARTICLE THREE

3. Location and 'Description of the Property' (Standard Specification)

3.1. The house, the standard type chosen by the Client and identified
as shall be built on Site No. of the
Developer's Phase Site, which it has leased for 99 years located in Addis Ababa,
Sub-City , Keble .

3.2.The house shall be built on a plot area of square meters and shall have a total
floor area of square meters which is subdivided in to the following floor levels:

-basement, sq. mt.

-ground floor, sq. mt.
-First floor sq. mt., and,
-Second floor sq. mt.
3.3. The floor area of the house, the number and type of rooms therein, the service quarters and
carport shall be as indicated in the relevant working drawings shown in the attachments to this
agreement and hereby made an integral part of this agreement.

3.4. The Developer shall install water, electricity and telephone lines in the house in the name of
the Client.

3.5. The skeletal work materials of the house shall comprise, in accordance with the specification
attached here with, reinforced concrete structural frame elements such as columns, beams, slabs
and walls made of hollow concrete block and other type of material that is stated in the
specification attached here with. If the client wants material changes other than shown on
the plan attached with this agreement, the construction of the building element shall be carried
out with the optional material at an extra cost. For the roofing, eucalyptus wooden trusses
with rafters and wooden purline shall be used.

3.6. The roof cover shall be

3.7. All other building materials, fittings and accessories, including flooring materials in
the different areas of the house, wall materials inside bathrooms and kitchens, doors, windows,
and sanitary fixtures and electrical fittings etc. shall be as per the standard specifications
attached herewith, except where alternative options are exercised by the Client.

ARTICLE FOUR

4. Price & Schedule of Payments

4.1. The price of the house with the standard specifications attached with this agreement
is agreed to be, and the Client hereby undertakes to pay to the Developer:
a) The sum of Birr
15% VAT
Total sum with VAT

b) The price of the house with the attached standard specifications shall be the
sum specified in Art 4.1. (a) above;

c) The sum in article 4.1(a) above shall include the net increase in cost thereon resulting
from the incorporation of optional building andlor finishing material(s) selected by
the client, where the Client has made such selection(s).
4.2. Settlement of the price of the house shall be in the portions and at the construction stages
specified below.

4.2.1. Advance payment: 20% (of the contract price) is advance payment, which is to be
paid, without VAT. The work shall be started within 60 days after the advance payment is
fully settled.

This advance payment shall be repaid by deducting 20% from each of the subsequent
payments.

4.2.1 First payment: 30% of the contract price shall be paid up on completion
of substructure concrete and first floor concreting work of the superstructure
is completed.

4.2.2 Second payment: 30% of the contract price shall be paid upon completion of the
remaining concrete work of the superstructure, Block, Roofing and second coat
plastering works.

4.2.3 Third payment: 30% of the contract price shall be paid up on completion
of floor, wall, ceiling and stairs finishing works of the building including fixing of
doors and windows.

4.2.4 Fourth Payment: 10% of the contract price shall be paid up on fixing of sanitary
fixtures and electrical fittings and handing over of the house.

4.3. The client shall effect the above payments within 15 days after the receipt of
payment notification. An independent consultant, appointed by the developer, shall
approve the status of the work corresponding to each of the above payments.

4.4. Work status certificates prepared by the developer and approved by an independent
consultant selected for the work by the developer shall confirm the completion of various
stages of construction works.

4.5. The Client may opt to settle the whole (100%) of the price of the house in advance.

Where, prior to the commencement date, the Client pays 100% of the price of the house; the
Client shall be given a discount of 4.5%.

4.6 All other payments due by the Client to the Developer hereunder, including reimbursement
of expenses incurred by the Developer in the interest, or on behalf of the Client, shall be made
prior to commissioning and handing over of the property. However, payments, which are
in excess of 2.0 % of the price of the house, shall require the prior consent of the Client, which
he is to confirm in a format prepared and provided by the Developer.

4.7. The Client may select, from a list of optional items, finishing materials to be used in place of
the standard ones for the construction of the house type he chose. Such selection shall be made in
an agreement supplemental hereto and the Client hereby agrees to pay to the Developer
the additional cost because of such incorporation.

Such agreement shall be made in a form prepared by the Developer and signed by
the parties andlor their representatives.

4.8. The price the house quoted herein is established on current costs of construction materials
and services. Notwithstanding any provisions to the contrary, if between the signing of
this agreement and the completion of the construction of the house should there be a price
variation in the cost of, cement, reinforcement steel, steel frame materials &
roof cover and fuel in excess of 5% of the basic price of each of these material
types prevailing 28 days before the signing of the contract, the Developer shall charge and
the Client shall pay in accordance with the following proportioning formula adapted
from FIDIC.

Adjusted Certificate Amount = PnCa, where;

Ca - is Certificate Amount before VAT and is calculated with the contract unit price
Pn = a + bAlc/Alo + c Cc/Co + dRbc/Rbo + eFlc/Flo Where;
Pn - is adjustment factor
a - is fixed percent of the contract amount (60%)
b - is percent of steel frame materials and roof covers out of the contract amount(7%)
Alc - Current price of steel frame & roof cover material. Both the frame and roof
cover materials shall be as specified in the specification to this contract or
as chosen by the client where such choice is made in accordance with the relevant
article of this contract.
Alo - price of steel frame & roof cover material 28 days before signing of
the contract.
c - Percent of cement out of the contract amount (11%)
Cc - current price of cement
Cco - price of cement 28 days before signing of the contract
d - Percent of reinforcement steel out of the contract amount (18%)
 Rbc - current price of reinforcement
Rbo - price of reinforcement steel 28 days before signing of the contract
e - Percent of fuel out of the contract amount (4.0%)
Flc - current price of fuel
Flo - price of fuel 28 days before signing of the contract

4.9. If between the signing of this agreement and the completion date of the construction of
the house should there be a change in the exchange value of the Ethiopian currency as a
result of which the cost of imported materials in Birr terms increases from the
prices prevailing 28 days before the signing of the contract; the Client shall make
up for the portion of the increase which is in excess of 5% of the increase in the exchange
rate by applying such excess in increase on 20% of the contract price of the house and
then using the resulting factor to adjust the amount of payment in question.

4.10. If between the signing of this agreement and the completion date of the construction of
the house should there be an increase in tax ( such as surtax) from that prevailing 28 days
before the signing of the contract as a result of government proclamation or regulation
that affect the construction input(s) of the house; the Client shall make up for the portion
of the increase which is in excess of 5% of the increase in the tax rate by applying such
excess in increase on 20% of the contract price of the house and then using the resulting
factor to adjusting the payment in question.

4.11. Articles 4.8, 4.9, and 4.10 shall not be applicable on clients who settle the full contract
amount at the signing of the contract agreement.

4.12. Any price escalation or variation in cost shall be calculated on the payment
amounts before VAT.

ARTICLE FIVE

5. Bank Loan
5.1. Where the Client wishes to use bank loan to finance the construction of the house specified
in this agreement, through the use of the house itself for collateral, the Developer may facilitate
with the bank for the Client to get the loan by making a tripartite agreement that is in line with
the requirement of the bank.

5.2. The Loan to be facilitated by the Developer may be sourced from either domestic or foreign
banks provided the Client fulfil the requirements of the bank to which application is submitted.
Such Loan may cover up to 50 percent of the cost of the house stipulated in Article 4.1 of this
agreement.

ARTICLE SIX

6. Transfer of Title Deed

6.1. The Client hereby authorizes the Developer to collect the title deed, upon its issuance in the
Client's name by the appropriate authority, and to keep same as collateral for payments due by
the Client.

6.2. The title deed for the Client's plot shall be released to the Client or to his duly authorized
representative, with the delivery of the house against final payments at the end of the contract
period.

6.3.The Client having met all the payment terms stipulated in this Agreement, the
Developer agrees to hand over the house to the Client in eighteen months as from the
commencement date of the construction of the house.

6.4. The Developer shall follow up the process of the transfer of the title deed in the name of the
Client. All costs involving the transfer of title deed, including all government taxes,
relevant administrative charges etc. shall be borne by the Client.

6.5. The Developer shall, from time to time, advise the Client the status of account between them
and the due date for the next payment to be made by the Client.

6.6.For purposes of effective communication with the Developer and to follow up on the
progress of the construction works and for prompt attendance to or compliance with government
or city administration requirements, the Client, if resident abroad, undertakes to duly appoint and
empower accordingly a representative resident in Addis Ababa.

ARTICLE SEVEN

7. Warranty against Defects

7.1. The Developer provides warranties that the structural and finishing works on the
house shall be to specification and professionally sound; and that any damage to
the house resulting from faulty workmanship and occurring within the guarantee period
of one year after the house has been handed over to the Client, shall be repaired and made
good. If
 any such damage is not so repaired or made good within a reasonable period of time but
in no event exceeding three months. The Client shall have the right to carry out the repair
work and the Developer shall have the obligation to reimburse such repair and
related costs to the client at the prevailing market price that the work is deemed to cost.
The list of defects to be repaired and the estimated cost of repair shall be communicated
to the developer 15 days before the expiry of the above stated 3 months time limit period.

7.2. The Client shall cover any and all damages to the house not caused by faulty workmanship
of the developer.

ARTICLE EIGHT

8. Warranty against Eviction

8.1. The Developer hereby warrants to the client against eviction, which are not attributable to
the Client.

8.2. In the case of partial or total eviction of the Client for causes that are not attributable to the
Client, the developer shall reimburse the expenses incurred by the Client.

ARTICLE NINE

9. Event of Default & Termination

A. The Developer

9.1. Where the Developer is unable to complete construction of the house within the
agreed time and deliver the property to the Client, the Developer shall inform the Client the cause
of the delay; and where such cause is:

9.1.1.Beyond the control of the Developer (force majeure) the due date for delivery shall be
extended having regard to the anticipated lapse of the condition constituting event of force
majeure; and the time required thereafter to complete the work.

9.1.2. Other than an event of force majeure, the due date for delivery shall be extended taking
into consideration the justifiability of the nature and occurrence of the cause as claimed by the
Developer. The period of such extension shall not in any case be more than six months.
9.2. There shall be an event of default on the part of Developer where, without the occurrence of
force majeure or justifiable cause, the Developer fails after the expiry of the extended period to
complete the work and deliver the property.

9.3. In the event of occurrence of default on the part of the Developer, the Client may, after the
expiry of the extended period stated in article 9.1.2 above, by giving a written notice to
the Developer, terminate the agreement whereupon statement of account shall be made
and the Developer shall be obliged to return the amount due to the Client according to the
statement of account with interest at the prevailing bank rate for a six months time deposit.

B. The Client

9.4. There shall be an event of default on the part of the Client where he fails to make any of the
payments due by him under this agreement, where such cause is:

9.4.1. After having made the advance payment should the client be unable, for any reason, to
make the first payment in accordance with sub-article 4.3 of the agreement but later on wishes to
settle the payment he may do so within an additional two months time by settling such payment
including interest on the sum for the period delayed at the prevailing bank over drawl rate and a0.
5% charge per thirty days on the unpaid sum to cover administrative and sundry expenses.

9.4.2. All conditions being the same as stated in sub article 9.4.1 above if the payment delayed is
the second payment the client shall settle the amount of this payment including interest on it for
the delayed period at the prevailing bank over drawl rate and 0. 4% charge per thirty days on the
same delayed sum to cover administrative and sundry expenses.

9.4.3. All conditions being the same as stated in sub article 9.4.1 above if the payment delayed is
the third payment the client shall settle this payment including interest on the delayed sum for the
delayed period at the prevailing bank over drawl rate and 0. 3% charge per thirty days on the
same delayed sum and period to cover administrative and sundry expenses

9.4.4. In the event of default of the Client to settle payment due in accordance with sub-article
9.4.5 The developer can cancel the contract after giving a 30 days final notice to the client and
shall claim interest at the prevailing bank over drawl rate on the unsettled sum and for the period
delayed and 0.6% charge per thirty days up on the unpaid amount for the period of delay up to a
limit not exceeding 10% of the contract amount the total of which is to be deducted from the
money that the client had paid until such termination date. In such a situation the Developer shall
not be obliged to return the balance to the client until the sale of the house in question is effected
to another client.

9.5. In the event where the buyer after having paid the advance or any of the
subsequent payments decides to terminate the contract he shall do so against payment of
all dues arising from delay of payment related to any of the situations mentioned in sub
articles 9.4.1 - 9.4.3 with an additional 15% of the amount that he should have paid in
accordance with the status of the work at the time of termination. The developer shall deduct such
sum from the amount that the client should have paid to such date of termination and return the
balance remaining to the client. However, in such a situation the Developer shall not be obliged
to return such balance to the client until the sale of the house in question is effected to another
client.

9.6. In the event where the client has settled the advance and the subsequent payments
in accordance with the agreement, without any delay, but decides to terminate his contract he
shall do so against payment of 15% of the payment he should have settled in accordance
with the status of the work at the time of termination. The developer shall deduct such
sum from the amount that the client should have paid in accordance with the status of the work
to such date of termination and return the balance remaining to the client. However, in
such a situation the Developer shall not be obliged to return such balance to the client until the
sale of the house in question is effected to another client.

9.7. In the event where the client after having paid the advance, decides to terminate the contract
before the start of the work he shall do so after relinquishing 15% of the advance to the
Developer to cover administrative costs; and the Developer shall return the balance to the Client
within three months from the date of termination of the contract.

9.8. In the event where the client decides to terminate the contract after having paid the advance
and the start of the work but before reaching to the stage required by the first payment he shall do
so against the payment of 15% of the estimated status of the work in accordance with article
4.2 of this agreement . The developer shall deduct such sum from the amount that the
client should have paid in accordance with the status of the work to such date of termination and
return the balance remaining to the client. However, in such a situation the Developer
shall not be obliged to return such balance to the client until the sale of the house in question is
effected to another client.
 ARTICLE TEN

10. Modification of this Contract

10.1. The parties to this contract may, by a written agreement modify or alter this contract.

ARTICLE ELEVEN

11. Disputes
11.1. In the event of disputes arising from the interpretation or application of the terms of this
Agreement andlor their non-fulfillment, the parties agree to make best efforts to resolve the
matter between them amicably. If such efforts should fail, the parties agree to submit
the matter to a panel of three arbitrators, two of whom are chosen by each party and the
third jointly by both. If, however, both or either of the parties fail to choose arbitrators either
party can place the matter to an institute established under the Addis Ababa Chamber of
Commerce or to any Arbitration and Conciliation Center licensed by the Ministry of Justice.

11.2. Any decision by the Panel of Arbitrators shall be final and binding:

11.3. Any previous agreement written or verbal reached between the Client and the Developer
regarding matters covered in this Agreement is now null and void.

11.4. This Agreement has been prepared in three copies and signed by the Client and
Developer or by their duly authorized representatives.

ARTICLE TWELVE

12. Applicable Laws and Regulations

The following are relevant laws and Regulations to be made applicable as found
Necessary.
12.2. The Civil Code
12.3. The Urban Land Lease Holding Proclamation
12.4. The Lease Regulation
 ARTICLE T THIRTEEN

13. Attachments
The following shall be provided as attachments to this agreement: -

13. Typical plans and elevations of the proposed house. (Appendix ).

13.1. Insurance guarantee for down payment effected (Appendix ).

13.2. Gift Real Estate Standard Specifications or as modified up on the request of the Client.
(Appendix )

13.3. Prices of basic materials. (Appendix ).

13.4. List of finishing material. (Appendix ).

13.5. List of common facility items to be provided or facilitated by the developer .

Made and signed this day of 200 in

Addis Ababa.

For Client For Developer

Name: Name:

Signature: Signature:

Witnesses

Name: Name:

Signature: Signature:

Name: Name:

Signature: Signature:
 COMMON FACILITIES
I. Access road

1. The developer shall, as far as possible, cooperate to facilitate the availability of proper access
road to the site, where the house to be built for the client is to be located.

2. The developer shall provide bitumen surfaced internal access road.

II. Electric and Telephone

The developer shall provide electric and telephone lines at the site where connection to the
client's house shall be done in accordance with the requirements of the respective utility
providing organization.

III. Water supply and Sewerage

The developer shall provide water supply and sewerage lines where connections to the client's
house shall be done in accordance with the requirements of the concerned utility organization.