OCAM Section 1 Manual

OCAM Section 1 Contents List
Document Control
Revision Date
OCAM Section 1 Item
30-1-14
Contents List 
Introduction 
Use of Contact Administration Manual 
Contract Administration 
APPENDICES
Summary of Contract Obligations 

A. Preparation for Contract Award 
B. Project Manager Project Start Up Tasks 
C. Contractor Project Start Up Tasks 
D. Daily Tasks, Monthly Meetings and Monthly Reporting 
E. Time Control 
F. Quality Control and Defects 
G. Cost Control 
H. Procedure for Early Warnings 
I. Finishing the Contract and Final Account 
J. Remedy for Non Performance by the Contractor or

Employer
K. Disputes 
L .Termination and Fundamental Breach of Contract 
M. Performance Appraisal 
Authorisation:
Director of Operations
Executive Director
Signed copy to be held by the Director of Operations.
Summary of Most Recent Revision:
30-01-14: Final Draft
Version 1.0: 30th January 2014 Page 1 of 4

This is not a controlled document.
The controlled document is held electronically
Section 1 Administration of Term and Periodic Maintenance Contracts

Contents Introduction
Use of Contract Administration Manual
Term and Periodic Maintenance Contract Administration
A. Preparation for Contract Award Tasks A1 to A13
B. Project Manager Project Start Up Tasks Tasks B1 to B18
C. Contractor Project Start Up Tasks Tasks C1 to C14
D. Daily Tasks, Monthly Meetings and Monthly Reporting Tasks D1 to D8
E. Time Control Tasks E1 to E 7
F. Quality Control and Defects Tasks F1 to F9
G. Cost Control Tasks G1 to G18
H. Procedure for Early Warnings Tasks H1 to H4
I. Finishing the Contract and Final Account Tasks I1 to I9
J. Remedy for Non Performance by the Contractor or Employer Tasks J1 to J23
K. Disputes Tasks K1 to K7
L. Termination and Fundamental Breach of Contract Tasks L1 to L8
M. Performance Appraisal Tasks M1 to M7
Appendix 1 Summary of Contract Obligations and Responsibilities
Appendix 2 Guidance Task A
Guidance A8 Start Up Meeting with Project Manager and Agenda
Guidance A9 Record of Start Up Meeting with Project Manager
Guidance A11 Details of PM
Guidance A12 Scope of Works and Budget Update
Guidance A13 Land Acquisition, Third Party or Compensation Issues
Guidance A14 Site Possession
Guidance A15 Budget Confirmation
Guidance A16 Appoint Adjudicator
Appendix 3 Guidance Task B
Guidance B1 Invite to Meeting
Guidance B1 Minutes of Meeting
Guidance B2 Scope of Work
Guidance B3 Start Date
Guidance B4 PMs Site Reps
Guidance B5 Insurances Request
Guidance B7 Clarification of Insurances
Guidance B8 Receipt of Insurances
Guidance B9 Advance Payment
Guidance B10 Programme

Guidance B11 Key Personnel

Guidance B12 Quality Plan
Guidance B13 Mobilisation
Guidance B14 Borrow Pit Proposals
Guidance B15 Health and Safety Plan
Guidance B16 Traffic Management Plan
Guidance B17 Environmental Management Plan
Guidance B18 Temp Works
Appendix 4 Guidance Tasks D, E, F and G

Guidance D3 Standard Site Meeting Agenda
Guidance E3 Failure to submit Program Update
Guidance E5 Program Approval
Guidance F4 Borrow Pit Approvals
Guidance F5 Notice of Defects
Guidance F6 Search for Defects
Guidance F8 Extension of Defects Liability Period
Guidance F9 Uncorrected Defects
Guidance G6 Exclusion of Item Previously Certified for Payment
Guidance G7 Interim Payment Certificate
Guidance G13 Request for Compensation Event approval
Guidance G14 Project Manager’s Assessment of Compensation Event
Guidance G16 Request for Estimated Effect of Early Warning
Appendix 5 Guidance Tasks I, J and K

Guidance I2 Issue of Completion Certificate
Guidance I3 Completion of the Works and Taking Over of the Site
Guidance I5 Issue of Defects Liability Certificate
Guidance I4 Notice of Defects
Guidance I7 Final Account
Guidance I8 Unsatisfactory Final Account
Guidance J1 Mobilisation
Guidance J2 Personnel
Guidance J5 Works Stopped for 28 days
Guidance J6 Inadequate Rate of Progress
Guidance J7 Failure to Submit Program Update

Guidance J8 Request for Extension of Time

Guidance J9 Request for Variation
Guidance J10 Correction of Defects
Guidance J11 Failure to Correct Defects and Cost of Correction of Defects
Guidance J12 PMs Forecast for Variation
Guidance J15 Payment for Compensation Event
Guidance J16 Non Repayment of Advance
Guidance J17 Exercise Security following Default
Guidance J21 Termination
Guidance K1 Appointment of Adjudicator
Appendix 6 Guidance Tasks M

Guidance M1 Performance Indicator Guideline - V1-1
Guidance M1 Performance Scorecard V1

OCAM Section 1 Introduction

Introduction
The purpose of this manual is to provide guidance on the pro-active management of term and periodic
maintenance contracts. It is intended for use by the following:
 UNRA’s Head Office Employers Representative responsible for the contract;
 The Project Manager responsible for the supervision of the contract; and
 The Contractor.
The Project Manager may be either an UNRA station staff member or a Consultant appointed by UNRA.
This manual is the result of a review of the administration of a number of ongoing term and periodic
maintenance operations contracts. The review identified issues with the quality of service provided by both
the contractors undertaking the works and the organisation managing the contracts. The standard of contract
administration was variable; some administration is of a reasonable standard, some is below standard. None
of the projects reviewed complied fully with the contract requirements resulting in various issues with project
quality, cost or delivery on programme.
There was criticism of the Contract by all parties. The form of Contract is identical for both term and periodic
maintenance contracts. Comments received ranged from concerns about inconsistencies though to criticisms
that the Contract did not provide adequate means to remedy inadequate performance.
The bidding and contract documentation has been subject to a thorough review. It is considered that there
are no major deficiencies with the Contract. It is a clear and well drafted document with adequate measures
to remedy non performance. There are some inconsistencies which require clarification and some scope for
minor modifications to assist the contractors’ understanding of the Employers requirements. In general, if the
project is implemented in the manner the Contract intends, it provides an effective means to manage term
and periodic maintenance projects.
The performance of contractors was found to be variable. Poor performers are not punished; and the Contract
measures available to remedy poor performance are not implemented. The ability of the contractor’s site
agent is fundamental to the success of the project. The agent must normally be on site; and must be capable
of managing the progress, budget and quality of the works as envisaged by the contract. This is not always the
case.
Contractors should be encouraged to improve their performance. The manual introduces a requirement for
the monthly monitoring of a contractors performance across a range of topics. The objective is to recognise
weaknesses in performance and encourage improvement. Contractors whose performance does not improve
should not be permitted to tender for future projects.
The Project Manager is also pivotal to the success of a project. Their performance on projects reviewed was
also found to be variable. The Project Manager must be proactive in managing the Contract and must
normally be present on site. This is not always the case. It is unacceptable for the Project Manager to visit site
once a month for the monthly progress meeting.

OCAM Section 1 Use of Contract Administration Manual

Use of Contract Administration Manual
The objective of the Contract Administration Manual is to provide clear guidance on the tasks necessary to
successfully deliver the project on time, on budget and with the desired level of quality.
The manual sets out a series of tasks for each stage of the contract from preparation for award through to
finishing the contract. Each task is succinctly described, together with details of who is responsible for
undertaking the task. There is a tick box to be signed and dated when the task has been undertaken.
The description of the tasks is necessarily brief. Guidance is provided where letters are required from the
Project Manager or the Employer (appendices 2, 3, 4, and 5). The letters have been drafted with the specific
contract requirements in mind; nevertheless the user should refer to the contract to confirm that the letter
correctly responds to the issue being addressed and is contractually correct.
A summary of the contract obligations and responsibilities for the Employer, the Contractor and the Project
Manager is provided at Appendix 1. This summary is not intended to be a substitute for the contract – merely
a quick reference guide. If in doubt the user should consult the Contract.
The manual has been developed to follow the contract obligations and requirements– with the exception of
performance management. This is an additional requirement.
Use of the manual will allow the contract to be administered in a professional manner. There should be no
hesitation in following the remedies the contract provides where a party does not adhere to their obligations.
In the early stages of the introduction of this manual there will be resistance to the proper use of the contract.
This is to be expected; but with time the performance of all parties will improve. Staff administering the
contract must act in a professional manner.
Disputes will arise, and the use of an adjudicator will be necessary. This is what the contract provides for.
Contract termination may occur in some instances; this should not be an issue if the correct procedures set
out have been followed. The industry will come to understand that UNRA intend to manage contracts
professionally, and will expect Contractors to perform in accordance with their contractual obligations and
deliver projects on time, on budget and to the desired level of quality.

OCAM Section 1 Contract Administration
Responsibility Action
A. Preparation for Contract Award
Undertaken
Completed
Sub – Tasks A 1 to A16
Contractor
Employer
Guidance
Manager
required
Project
Letter
Letter
Date
by
Employer tasks are the responsibility of the Regional Manager
A1 Confirm receipt of Performance Security from Contractor. Check


compliance with the Contract including value and duration.
A2 Confirm receipt of Advance Payment Guarantee from Contractor

and check compliance with Contract including value and duration.
A3 Confirm Contracts Committee approval and Solicitor General

clearance for Contract Award and issue of Contract Agreement.
A4 Confirm a Letter of Bid Acceptance has been issued to the

Contractor forming a legally binding contract.
A5 Confirm a Start Date is specified in the SCC or as modified by the

Letter of Bid Acceptance.
A6 Confirm a Contract has been signed and copied to all parties. 
A7 Confirm appointment of a Project Manager 
A8 Arrange inaugural meeting with the Project Manager to agree site
 L A8
supervision staffing arrangements and confirm in writing.
A9 Hold an inaugural meeting with the Project Manager and site
supervision team using the standard agenda and issue record of  L A9
meeting. Consider holding Tasks A9 and A10 on same day.
A10 Visit the site with the Project Manager to review the strip map
prepared at the planning stage; agree any revisions and finalise  
the scope and budget cost of the maintenance works.
A11 Write to Contractor giving details of the Project Manager.  L A11
A12 Update the strip map and cost estimate and issue to the
 L A12
Employer together with a record of the site meeting.
A13 Confirm that there is no land acquisition, compensation or third
party issues that may delay the contract and advise the Employer  L A13
accordingly.
A14 Write to the Contractor giving possession of the Site. The date of
possession will usually be the Start Date unless amended by the  L A14
SCC.
A15 Confirm the budget allocation and internal finance administration
arrangements and issue a letter confirming the details to the  L A15
Project Manager.
A16 Request Uganda Institute of Professional Engineers (UIPE) to
appoint an Adjudicator in the event of a dispute. Write to  L A16
Contractor notifying details/seeking agreement (Refer Task K1).

B. PROJECT MANAGER Project Start Up Tasks
Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Sub – Tasks B 1 to B10
Contractor
Employer
B1 Inaugural Meeting
Arrange an inaugural meeting attended by the Employer, Station  L B1
Engineer, stakeholders, site supervision Project Manager and the
Contractor using Standard Agenda. Issue record of meeting.
B2 Scope of Maintenance Works
Write to the Contractor providing details of the scope of work  L B2
including the updated strip map and any revision to the quantities.
B3 Start Date
Agree Start Date and Intended Completion Date with the  L B3
Contractor. Confirm date in writing.
B4 Project Manager’s Site Representatives
Write to the Contractor giving names of staff who will represent  L B4
the Project Manager on site and their responsibilities.
B5 Insurances
If evidence of insurances is not received 5 working days before  L B5
the Start Date then write to the Contractor requesting details.
B6 Upon receipt of insurance details assess and confirm they comply
with the Contract including joint names and cover from Start Date 
to the end of Defects Liability Period.
B7 If the insurance does not comply with the Contract write to the 
Contractor seeking clarification of the terms of insurance. L B7
B8 Advise the Employer on receipt of satisfactory insurances.  L B8
B9 Advance Payment
Check that the Contractor’s Advance Payment Guarantee complies
with the Contract; if it complies certify payment of the amount of    L B9
the Advance and forward the certificate to the Employer for
payment.
B1 Program
0 Check the Contractor’s programme is prepared in accordance with
the Contract.  L B10
Respond with approval or raise queries in writing within 10 working
days of receipt of the program from the Contractor.

B. PROJECT MANAGER Project Start Up Tasks
Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Sub – Tasks B 11 to B18
Contractor
Employer
B1 Contractor’s Key Personnel
1 Check the key personnel are in accordance with the Contract.  L B11
Approve replacement personnel in writing only if they are
substantially equal to or better than those scheduled.
B1 Contractor’s Quality Plan
2 Check the quality plan is in accordance with the Contract.
 L B12
days of receipt of the plan from the Contractor.
B1 Contractor’s Mobilisation
3 Confirm that the Contractor has mobilised to site the necessary  L B13
equipment, personnel and materials in accordance with the Contract.
Raise queries in writing with Contractor (if necessary).
B1 Contractor’s Borrow Pit Proposals
4 Check the Contractor’s borrow pit proposals are prepared in
accordance with the Contract.  L B14
days of receipt of the proposals from the Contractor.
B1 Contractor’s Health and Safety Plan
5 Check the plan is prepared in accordance with the Contract.
 L B15
B1 Contractor’s Traffic Management Plan
 L B16
B1 Contractor’s Environmental Management Plan
 L B17
B1 Contractor’s Temporary Works Designs
8 Check the design is prepared in accordance with the Contract.
   L B18

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
C. CONTRACTOR Project Start Up Tasks
Sub – Tasks C1 to C8
C1 Inaugural Meeting
Attend inaugural meeting with the Employer, Project Manager, 
Station Engineer, and Stakeholders.
C2 Insurances
Supply evidence to the Project Manager that insurances are in  L
place 5 working days before the Start Date.
C3 Advance Payment
Submit an application for advance payment (if provided for in  L
the Contract).
C4 Program
Submit a program showing general methods, arrangements, the  L
order, and the timing for all Works activities within 14 working
days of the Start Date.
C5 Contractors Personnel
Confirm in writing the details of key personnel in accordance
with the Personnel Schedule in the Contract within 14 working
 L
days of the Start Date.
If replacement personnel are proposed; submit a request for
approval in writing to the Project Manager.
C6 Quality Plan
Submit Quality Manual providing details of quality control  L
procedures required including materials testing proposals within
14 working days of the Start Date.
C7 Mobilisation
Mobilise equipment, personnel and materials to site in  L
accordance with the contract and the program.
C8 Borrow Pit Proposals
Submit borrow pit proposals for approval prior to the start of
each maintenance activity or cycle including:
 Locations, trial holes details and test results;
 L
 Proposals for usage of borrow materials;
 Access, protection and finishing off details;
 Confirmation of agreement with land owner.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
C9 Health and Safety Plan

Submit a plan within 14 days of the Start Date including:
 Safe operation of equipment and safe access
 Safe handling, storage and transport of materials
 Protective clothing and equipment  L
 Appointment of Safety Officer
 Safety courses
 Sanitation arrangements
 Measures to reduce occupational health hazards
 HIV/AIDS and STD prevention
C10 Traffic Management Plan
Submit plan detailing proposals for accommodation of traffic
within 14 days of the Start Date including:
 L
 Provision of diversions
 Safe passage and control of traffic
 Access to properties affected by the Works
C11 Environmental Management Plan
Submit plan within 14 days of the Start Date including:
 Landscape preservation  L
 Prevention of water pollution
 Abatement of air pollution and dust
 Cleanup and disposal of waste materials.
C12 Temporary Works
Submit temporary works design to Project Manager for  L
approval 14 working days before temporary works commence.
C13 Project Sign Boards
Erect project sign boards following Project Manager  L
agreement of locations.
C14 Subcontracting.
 L
Seek approval in writing to subcontract any of the Works.

Guidance Agenda
Agenda Required
Project Manager
Date Completed
Undertaken by
D. Daily Tasks, Monthly Meetings and Monthly Reporting
Contractor
Employer
Sub – Tasks D1 to D8
D1 Daily Site Diary

The Contractor shall maintain a site diary which shall always be on
site, and must be comprehensive including:
1. Daily record of site activities; 
2. Equipment, personnel and materials on site;
3. Weather records;
4. Instructions received.
D2 The Project Manager or his representative shall check the diary is

comprehensive and sign it off daily.
D3 Monthly Progress Meetings
Hold monthly progress meetings on site using a standard agenda
including site visit to review progress.
 A D3
The Project Manager shall record meetings, decide on
responsibility for actions and provide copies of the record of
meeting to all in attendance.
D4 Management Meetings
Either the Contractor or the Project Manager may arrange a
management meeting to review plans for remaining work or deal
with early warnings at any time.  
The Project Manager shall record the meetings, decide on
responsibility for actions and provide copies of the record of the
meeting to all in attendance.
D5 Monthly Progress Reporting
The Contractor shall submit an updated program monthly within 
3 working days of the month end. For details, refer to Section E.
D6 Monthly Estimate of the Value of Work Completed
Submit a monthly estimate of the work executed within 3 
working days of the month end. For details, refer to Section G.
D7 Early Warnings
The Contractor shall warn the Project Manager at the earliest
opportunity of any event adversely affecting the quality of the 
work, the price of the Works, or the timing of the Works. For
details, refer to Section H.
D8 Monthly Performance Appraisal
The Contractor shall evaluate his performance monthly. For  
details of the appraisal process refer Section M.


Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
E. Time Control
Contractor
Employer
Sub – Tasks E1 to E7
E1 Program
The Contractor shall submit a program within 14 working
days of the Start Date including:
 L
a) general methods,
b) arrangements for the work,
c) the order and the timing for all activities.
E2 Program Updates
The Contractor shall submit an updated program every
month within 3 days of month end showing:
a) actual progress achieved on each activity,  L
b) the effect of the progress achieved on the timing of
the remaining work,
c) any changes to the sequence of the activities.
E3 If the Contractor fails to submit a program the Project
Manager may withhold the amount stated in the GCC (27.3)  L E3
from the next payment certificate.
E4 Program Revisions
The Contractor may revise and resubmit the program at any  L
time. Revisions shall show Variations and Compensation
Events.
E5 Program Approval
The Project Manager shall check the Contractor’s program
submissions are prepared in accordance with the Contract  L E5
and respond in writing with either queries or approval within
10 working days of receipt.
E6 Extension of the Intended Completion Date
If a Compensation Event or a Variation is issued which makes
it impossible for completion to be achieved by the intended  L
date without additional costs the Contractor shall submit a
request for an extension with full supporting information.
E7 The Project Manager shall decide how much to extend the
Intended Completion Date within 21 days of a request from 
the Contractor subject to the Employer’s approval.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
F. Quality Control and Defects
Contractor
Employer
Sub – Tasks F1 to F9
F1 Quality Control
The Contractor shall arrange testing to confirm that materials
used in the Works conform to the requirements of the  L
specification and the Contractors Quality Plan. The Contractor
shall submit all test results to the Project Manager for approval.
F2 The Project Manager shall confirm all test results conform to the

requirements of the specification.
F3 Obtaining Borrow Materials
Borrow materials shall be located by the Contractor. The
Contractor shall search for and test all possible sources of
material within an economic distance of the location where the 
materials will be used including possible sources so designated by
the Project Manager. The Contractor shall submit all borrow
material test results to the Project Manager for approval.
F4 The Project Manager shall approve borrow materials in writing
 L F4
prior to their use in the Works.
F5 Identifying Defects.
The Project Manager shall check the Contractor’s work and give  L F5
notice to the Contractor of any Defects that are found. The notice
shall specify the time for correction of the Defect.
F6 Tests
The PM may instruct the Contractor to uncover and test any work  L F6
that he considers may have a Defect.
F7 Correction of Defects.
The Contractor shall correct all defects notified and shall inform  L
the Project manager by letter on completion.
F8 The Project Manager shall give notice of the extension of the
Defects Liability Period for as long as a Defect remains to be  L F8
corrected.
F9 Uncorrected Defects
If the Contractor has not corrected a Defect within the time
specified in the Project Manager’s notice, the Project Manager  L F9
will assess the cost of having the Defect corrected, and the
Contractor will pay this amount.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
G. Cost Control
Contractor
Employer
Sub – Tasks G1 to G10
G1 Bill of Quantities
The Contractor shall be paid for the quantity of work done at the 
Bill of Quantities rate.
G2 Payment Certificates
The Contractor shall submit a monthly statement of the
estimated value of the work executed (less the amount certified 
previously) within 3 working days of the month end. The value of
work executed shall include the valuation of Variations and
Compensation Events (if applicable).
G4 Payment certificates shall be adjusted for deductions for advance
repayment, retention and fluctuations in the cost of inputs (if 
provided for in the Contract).
G5 The Project Manager shall check the Contractor’s statement of
the estimated value of the work done. The value of work 
executed shall be determined by the Project Manager.
G6 The Project Manager may exclude any item certified in a previous
certificate or reduce the proportion of any item previously
certified in any certificate in the light of later information - for
 L G6
example if testing results indicate that the works executed do not
comply with the specification requirements or a defect is
identified.
G7 The Project Manager shall certify the amount to be paid to the
Contractor and forward the certificate to the Employer for
 L G7
payment within 5 working days of the date of receipt of the
certificate.
G8 Payments
The Employer shall pay the Contractor the amounts certified by 
the Project Manager within 30 days of the date of each
certificate.
G9 If the Employer makes a late payment, the Contractor shall be
paid interest on the late payment. The Contractor shall include  
the interest in the next payment certificate.
G10 Interest shall be calculated from the date by which the payment
should have been made up to the date when the late payment is
 
made at the prevailing rate of interest for commercial borrowing
for each of the currencies in which payments are made.

Date Completed
Guidance Letter
Letter Required
Undertaken by
G. Cost Control
Contractor
Employer
Manager
Project
Sub – Tasks G11 to G18
G11 Compensation Events

If a Compensation Event (as defined in the Contract) would cause
additional cost or would prevent the work being completed 
before the Intended Completion Date, the Contract Price shall be
increased.
G12 The Contractor shall forecast the cost of the event competently

and promptly and submit it to the Project Manager for approval.
G13 As soon as information demonstrating the effect of each
Compensation Event upon the Contractor’s forecast cost has
been provided by the Contractor, it shall be assessed by the  G13
Project Manager, and the Contract Price shall be adjusted
accordingly subject to the approval of the Employer.
G14 If the Contractor’s forecast is deemed unreasonable, the Project
Manager shall adjust the Contract Price based on the Project  G14
Manager’s own forecast.
G15 Price Adjustment
The Contractor shall adjust prices for fluctuations in the cost of 
inputs (if provided for in the Contract) using the methodology in
the Contract.
G16 Retention
The Employer shall retain a proportion of each payment until
Completion of the Works (if provided for in the Contract). The  G16
Project Manager shall calculate the amount of retention in each
payment certificate.
G17 Advance Repayment
The Project Manager shall deduct advance repayments from 
payments to the Contractor (if provided for in the Contract) using
the methodology in the Contract.
G18 Day works
The Project Manager shall give written instruction for the use of
day works; shall approve forms for the use of recording of day 
works and shall sign them within 2 days of the work being done (if
provided for in the Contract).

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
H. Procedure for Early Warnings
Contractor
Employer
Sub – Tasks H1 to H4
H1 Early Warnings
The Contractor shall warn the Project Manager at the earliest
opportunity of any event adversely affect the quality of the work, 
increase the Contract Price, or delay execution of the Works.
H2 Estimate of Expected Effect of the Event

The Project Manager may require the Contractor to provide an
estimate of the expected effect of the future event or  L
circumstance on the Contract Price and Completion Date.
H3 The estimate shall be provided by the Contractor as soon as

reasonably possible. 
H4 Avoiding or Reducing the effect of the Event

The Contractor shall cooperate with the Project Manager in
making and considering proposals for how the effect of such an
event or circumstance can be avoided or reduced by anyone 
involved in the work and in carrying out any resulting instruction
of the Project Manager.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
I. Finishing the Contract and Final Account
Contractor
Employer
Sub – Tasks I1 to I9
I1 Completion
The Contractor shall request the Project Manager to issue a  L
certificate of Completion of the Works.
I2 The Project Manager will issue a certificate of Completion of the
 L I2
Works upon deciding that the work is completed.
I3 Taking Over
The Employer shall take over the Site and the Works within seven  L I3
days of the Project Manager’s issuing a certificate of Completion.
I4 Correction of Defects
The Project Manager shall give notice to the Contractor of any  L I4
Defects before the end of the Defects Liability Period.
I5 Defects Liability Certificate
The Project Manager shall issue a Defects Liability Certificate  L I5
when all the defects notified to the Contractor have been
corrected (refer to Section F for details).
I6 Final Account
The Contractor shall supply the Project Manager with a detailed
account of the total amount that the Contractor considers 
payable under the Contract before the end of the Defects Liability
Period.
I7 The Project Manager shall certify any final payment that is due to
the Contractor within 56 days of receiving the Contractor’s
account if it is correct and complete.
 L I7
If it is not correct, the Project Manager shall issue within 56 days a
schedule that states the scope of the corrections or additions that
are necessary.
I8 If the Final Account is still unsatisfactory after it has been
resubmitted, the Project Manager shall decide on the amount L L I8
payable to the Contractor and issue a payment certificate.
I9 As built Drawings and Operating and/or Maintenance Manuals
If required shall be supplied by the Contractor by the dates stated 
in the Contract

J. Remedy for Non Performance by the Contractor or the
Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
Employer
Sub – Tasks J1 to J8
J1 Mobilisation of Equipment
The Project Manager may consider the Contractor’s failure to  L J1
mobilise the equipment scheduled in the Contract as a breach of
contract.
J2 Personnel
The Project Manager may consider the Contractor’s failure to  L J2
mobilise the personnel scheduled in the Contract as a breach of
contract.
J3 Insurance
If the Contractor does not provide insurance in accordance with 
the Contract the Employer may effect insurance and recover
premiums from payments due to the Contractor.
J4 Possession of Site
If the Employer does not grant possession of part of the Site by 
the date stated in the Contract this will be deemed to be a delay
and this will be a Compensation Event.
J5 Work Stoppage
If the Contractor stops work for 28 days when no stoppage is
shown on the current program and the stoppage has not been  L J5
approved by the Project Manager a breach of contract has
occurred.
J6 Rate of Progress
If the rate of progress at any time is such that the completion of
the works will be delayed by the number of days for which the  L J6
maximum amount of liquidated damages can be imposed (usually
100 days) a breach of contract has occurred.
J7 Program Update
If the Contractor fails to submit a program update by the date
required the Project Manager may withhold the payment  L J7
specified in the Contract from the next payment certificate until
the updated program is submitted.
J8 Extension of Intended Completion Date
If the Contractor failed to give an early warning of delay or has
not cooperated in dealing with the delay, the delay by this failure L L J8
shall not be considered in assessing the new intended Completion
Date.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
Employer
J9 Variations of Cost
The Contractor shall not be entitled to additional payment for  L J9
costs that could have been avoided by giving an early warning.
J10 Correction of Defects
The Contractor will be in breach of Contract if the Project
Manager gives Notice that failure to correct a Defect is a breach  L J10
of Contract and the Contractor fails to correct it in a reasonable
timescale determined by the Project Manager.
J11 If a defect has not been corrected in time the Project Manager
will assess the cost of correction and the Contractor will pay this  L J11
amount.
J12 Payment for Variations
If the Project Manager considers the Contractor’s quotation is  L J12
unreasonable the Project Manager may order the variation based
on the Project Manager’s forecast of the effect on costs.
J13 Payments
The Employer shall pay the amount certified by Project Manager
within 30 days of date of each certificate. If payment is late the
Contractor shall be paid interest (at the prevailing rate for

commercial borrowing) in the next payment.
If a certified payment is not paid by the Employer within 84 days
of the date of the Project Manager’s certificate a breach of
Contract has occurred.
J14 Compensation Events
If the Project Manager deems the Contractor’s forecast 
unreasonable the Project Manager shall adjust the Contract Price
based on his own forecast. Refer to Task G14.
J15 Entitlement to Payment for Compensation Event
The Contractor shall not be entitled to compensation to the
extent that the Employers interests are adversely affected by the  L J15
Contractor not providing an early warning or cooperating with the
Project Manager.
J16 Non Repayment of Advance
If the Contractor does not repay the advance the advance  L J16
payment security may be exercised.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
Contractor
Employer
Employer
J17 Security
The proceeds of the Performance Security shall be payable to the  L J17
Employer as compensation for any loss resulting from the
Contractors failure to complete its obligations.
J18 If the Contractor does not maintain a Security which is required

the Contractor will be in breach of Contract.
J19 Cost of Repairs
Loss or damage between the Start Date and the end of the 
Defects Correction period shall be remedied by the Contractor at
his cost.
J20 As built Drawings and Operating and/or Maintenance Manuals
If as built drawings and operating and/or maintenance manuals 
are not supplied the Project Manager shall withhold the amount
stated in the SCC from payments to the Contractor.
J21 Fundamental Breach of Contract
The Employer or the Contractor may terminate the Contract if the    L J21
other party causes a fundamental breach of the Contract.
J22 Payment upon Termination. Breach by Contractor.
The Employer receives a percentage of the value of the work not  
completed as stated in the Contract.
J23 Payment upon Termination. Breach by Employer.
The Contractor receives costs of removal of equipment and  
personnel; and costs of protecting and securing the Works.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
K. Disputes
Contractor
Employer
Sub – Tasks K1 to K7
K1 Prior to the Start of Works the Employer shall request the Uganda
Institution of Professional Engineers (UIPE) to appoint an
Adjudicator in the event of a dispute arising. Refer Task A16.  L K1
The Employer shall notify the Contractor in writing of the details
of the appointment and request agreement to the appointment.
K2 If the Contractor believes that a decision taken by the Project
Manager was either outside the authority given to the Project
Manager by the Contract or that the decision was wrongly taken,
the decision shall be referred to any Adjudicator appointed under

the contract within 14 days of the notification of the Project
Manager’s decision.
The request for adjudication shall include all information
necessary to allow the Adjudicator to reach a decision.
K3 The Adjudicator appointed under the contract shall give a
decision in writing within 28 days of receipt of a notification of a

dispute, providing that he is in receipt of all the information
required to give a decision.
K4 Either party may refer a decision of the Adjudicator to an
Arbitrator within 28 days of the Adjudicator’s written decision. If
 
neither party refers the dispute to arbitration within the 28 days,
the Adjudicator’s decision will be final and binding.
K5 Any arbitration shall be conducted in accordance with the
Arbitration law of Uganda, or such other formal mechanism
specified in the SCC, and in the place shown in the SCC.
K6 Any Adjudicator appointed under the contract shall be paid by the
hour at the rate specified in the SCC, together with reimbursable
expenses of the types specified in the SCC, and the cost shall be  
divided equally between the Employer and the Contractor,
whatever decision is reached by the Adjudicator.
K7 Should the Adjudicator resign or die, or should the Employer and
the Contractor agree that the Adjudicator is not functioning in
accordance with the provisions of the Contract, a new
Adjudicator will be jointly appointed by the Employer and the
Contractor.  
In case of disagreement between the Employer and the
Contractor, within 30 days, the Adjudicator shall be designated by
the Appointing Authority designated in the SCC at the request of
either party, within 14 days of receipt of such request.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
L. Termination and Fundamental Breach of Contract
Contractor
Employer
Sub – Tasks L1 to L3
L1 The Employer or the Contractor may terminate the Contract if

 
the other party causes a fundamental breach of the Contract.
L2 Fundamental breaches of Contract shall include, but shall not be
limited to, the following:
a) the Contractor stops work for 28 days when no
stoppage of work is shown on the current Program and
the stoppage has not been authorised by the Project
Manager;
b) the Project Manager instructs the Contractor to delay
the progress of the Works, and the instruction is not
withdrawn within 28 days;
c) the Employer or the Contractor is made bankrupt or
goes into liquidation other than for a reconstruction or
amalgamation;
d) a payment certified by the Project Manager is not paid
by the Employer to the Contractor within 84 days of the
date of the Project Manager’s certificate;
  
e) the Project Manager gives Notice that failure to correct
a particular Defect is a fundamental breach of Contract
and the Contractor fails to correct it within a reasonable
period of time determined by the Project Manager;
f) the Contractor does not maintain a Security, which is
required; and
g) the rate of progress of the Works at any time during the
period of the Contract is such that the completion of the
Works will, as measured against the current Program,
be delayed by the number of days for which the
maximum amount of liquidated damages can be
imposed.
h) if the Contractor in the judgement of the Employer has
engaged in corrupt or fraudulent practices in competing
for or in the executing the contract.
L3 When either party to the Contract gives notice of a breach of

Contract to the Project Manager for a cause other than those

listed above, the Project Manager shall decide whether the
breach is fundamental or not.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
L. Termination and Fundamental Breach of Contract
Contractor
Employer
Sub – Tasks L4 to L8
L4 Notwithstanding the above, the Employer may terminate the


Contract for convenience.
L5 If the Contract is terminated, the Contractor shall stop work
immediately, make the Site safe and secure, and leave the Site as 
soon as reasonably possible.
L6 Payment if Contractor Defaults
If the Contract is terminated because of a fundamental breach of
Contract by the Contractor, the Project Manager shall issue a
certificate for the value of the work done and Materials ordered
less advance payments received up to the date of the issue of the
certificate and less the percentage to apply to the value of the 
work not completed, as indicated in the SCC.
Additional Liquidated Damages shall not apply. If the total
amount due to the Employer exceeds any payment due to the
Contractor, the difference shall be a debt payable to the
Employer.
L7 Payment if Employer Defaults
If the Contract is terminated for the Employer’s convenience or
because of a fundamental breach of Contract by the Employer,
the Project Manager shall issue a certificate for the value of the
work done, Materials ordered, the reasonable cost of removal of 
Equipment, repatriation of the Contractor’s personnel employed
solely on the Works, and the Contractor’s costs of protecting and
securing the Works, and less advance payments received up to
the date of the certificate.
L8 Property if Contractor Defaults
All Materials on the Site, Plant, Equipment, Temporary Works,  
and Works shall be deemed to be the property of the Employer if
the Contract is terminated due to the Contractor’s default.

Project Manager
Date Completed
Guidance Letter
Letter Required
Undertaken by
M. Performance Appraisal
Contractor
Employer
Sub – Tasks M1 to M7
M1 Performance Appraisal
The Contractor will assess his performance for the issues and 
indicators on the standard form and submit it for review by the
Project Manager monthly. Refer guidance M1.
M2 The Project Manager will arrange a meeting with the Contractor

and the Employer to review the Contractor’s performance.
M3 Project Manager’s Assessment of the Contractors Performance
The Project Manager or the Employer may change the
Contractor’s assessment of his performance based on the
 
evidence available during the month under assessment.
The Contractors scores may move either up or down; or stay the
same.
M4 The Project Manager or the Employer may introduce additional
 
issues and indicators at their discretion.
M5 The Project Manager will record the agreed scores and provide
copies to all in attendance as well as the Procurement and 
Disposal Unit.
M6 Monthly scores will be tabulated. Overall the Contractor is
expected to improve his performance over the period of the 
Contract.
M7 The performance appraisal system is based on a traffic light
scoring system
 “Green” for good performance;
 “Amber” for average performance; and
 
 “Red” for poor performance
If the Contractor scores “red” for three months in succession the
Employee may consider the Contractor to be in breach of
contract and consider Contract termination.

OCAM Section 1 Summary of Contract Obligations and Responsibilities
Clause Subject Obligations and Responsibilities
No.
The Employer The Contractor The Project Manager
A. General Conditions
1.1.(y) Project Manager The Project Manager is responsible for supervising
the Works and administering the Contract.
4 Project Manager’s The Employer’s specific approval is The Project Manager will decide contractual matters
Decisions required to vary the time, cost or between the Employer and the Contractor in the role
quality of the Works. representing the Employer.
On matters of time, cost and quality the Employer’s
specific approval shall be obtained before taking
action.
5 Delegation The Project Manager may delegate any of his duties
and responsibilities to others after notifying the
Contractor in writing.
7 Subcontracting The Contractor may subcontract with the The Project Manager may give approval for
approval of the Project Manager. subcontracting.
9 Personnel The Contractor shall employ the key The Project Manager will only approve the
personnel named in the Personnel Schedule Contractor’s proposed replacement personnel if they
in the Contract. are substantially equal to or better than those
scheduled.
If requested by the Project Manager to
remove personnel the Contractor shall The Project Manager will monitor the performance
ensure that the personnel leave within 7 of key personnel and may request the removal of
days. personnel if their performance is not acceptable.
10 Employer’s and The Employer’s risks are stated in The Contractor’s risks are stated in the
Contractor’s Risks the Contract at Clause 11. Contract at Clause 12.
13 Insurance If the Contractor does not provide The Contractor shall provide insurance from The Project Manager shall confirm that the
insurance the Employer may the Start Date to the end of Defects Liability Contractor’s insurance meets the Contract
effect insurance and recover Period in the joint names of the Employer requirements and keep the Employer advised on the
No.
premiums from payments due to and the Contractor for the amounts and validity of the insurance.
the Contractor. deductibles specified in the SCC.
Any proposed alterations to the terms of
The Project Manager shall approve any alteration to
the insurance shall be submitted to the
the terms of insurance requested by the Contractor.
Project Manager for approval.
14 Site Investigation The Contractor shall rely on any site
Reports investigation reports referred to in the SCC.
15 Queries about SCC The Employer shall raise any The Contractor shall raise any queries on The Project Manager will clarify any queries on the
queries on the SCC with the the Special Conditions of Contract (SCC) SCC.
Project Manager. with the Project Manager.
16 Contractor to The Contractor shall construct and install
Construct Works the Works in accordance with the
Specifications and Drawings.
17 Intended The Contractor shall commence execution
Completion Date of the Works in accordance with the
submitted program and complete them by
the Intended Completion Date specified in
the SCC.
18.1 Approval by the The Contractor is responsible for the design The Project Manager shall approve temporary works
Project Manager of Temporary Works. designs by the Contractor.
19.1 Safety The Contractor is responsible for the safety
of all activities on site.
20.1 Discoveries Discoveries are the property of The Contractor shall notify PM of any The Project Manager shall give instructions for
the Employer. discoveries and carry out the PM’s dealing with any discoveries made by the Contractor.
instructions for dealing with them.
21.1 Possession of Site The Employer shall give
possession of the Site to the

No.
Contractor.
22.1 Access to Site The Contractor shall allow the Project
Manager and any authorised person access
to the Site.
23.1 Instructions The Contractor shall carry out all
instructions given by the Project Manager
which comply with applicable laws.
23.2 Inspection of The Contractor shall permit the The Project Manager shall sign off the Contractor’s
records and site Government of Uganda to inspect their site diary daily.
diary. accounts and records.
The Contractor shall maintain a site diary
which shall always be on site, and must be
comprehensive including:
a) Daily record of site activities;
b) Equipment, personnel and
materials on site;
c) Weather records;
d) Instructions received.
24 Disputes If the Contractor believes that a decision by
the Project Manager was either outside his
authority or was wrongly taken the decision
shall be referred to any Adjudicator
appointed under the Contract within 14
days of the Project Manager’s decision in
accordance with the procedures in Contract
Clauses 25 and 26.
B. Time Control

No.
27 Program The Employer may terminate the The Contractor shall submit to the Project The Project Manager shall approve the program and
submission Contract if a fundamental breach Manager a program showing: monitor progress.
of contract has occurred. a) general methods;
If the Contractor stops work for 28 days when no
b) arrangements;
stoppage is shown on the current program and the
c) the order; and
stoppage has not been approved by the Project
d) the timing
Manager a fundamental breach of contract has
occurred and the Employer shall be advised.
for all activities in the Works within the
period specified in the SCC.
27 Period between The Contractor shall submit an updated The Project Manager shall approve any program
program updates. Program at the intervals given in the SCC update.
showing actual progress achieved on each
If no program update is submitted the Project
activity, the effect of the progress achieved
Manager may withhold the payment specified in SCC
on the timing of the remaining work and
Clause 27.3 until the updated program is submitted.
any changes to the sequences of activities.
27 Program Update The Employer may terminate the A program update shall show: If the rate of progress at any time is such that the
Contract if a fundamental breach (a) Actual progress achieved for each completion of the works will be delayed by the
of contract has occurred. activity; number of days for which the maximum amount of
(b) Effect of progress on remaining liquidated damages can be imposed (usually 100
activities; and days) a fundamental breach of contract has occurred
(c) Timing of remaining work including and the Project Manager shall advise the Employer.
any change in sequence;
(d) All Variations and Compensation
Events.
Revision of the The Contractor may revise and resubmit the The Project Manager shall approve the program
Program program at any time. Revisions shall show update.
27
Variations and Compensation Events.
28 Extension of The Employer’s specific approval is Subject to the Employer’s approval the Project

No.
Intended required for any extension of the Manager shall extend the Completion Date if a
Completion Date Intended Completion Date. Compensation Event or a Variation is issued which
makes it impossible for completion to be achieved by
the intended date without the Contractor taking
steps to accelerate the remaining work which would
cause the Contractor additional costs.
28.2 Extension of The Employer’s specific approval is The Contractor may ask the Project Subject to the Employer’s approval the Project
Intended required for any extension of the Manager for a decision upon the effect of a Manager shall decide whether and by how much to
Completion Date Intended Completion Date. Compensation Event or Variation having extend the Intended Completion Date within 21 days
submitting full supporting information. of the Contractor asking for a decision.
29 Acceleration The Employer may request the The Contractor shall provide priced The Project Manager will obtain priced proposals for
Contractor to accelerate the proposals for the acceleration. achieving acceleration from the Contractor.
Works.
The Project Manager will obtain the Employer’s
The Employer shall review the approval of the proposals and if they are accepted
proposals for acceleration and incorporate them in the Contract Price as a Variation.
approve them.
30 Delays ordered by The Employer’s specific approval is The Project Manager may instruct the delay or start
the PM required for any instruction for of any activity subject to the Employer’s approval
delays ordered by the PM
31 Management The Contractor may require meetings to The Project Manager may require meetings to review
Meetings review plans for remaining work or deal plans for remaining work or deal with early warnings.
with early warnings. The Project Manager shall:
a) record meetings,
b) decide on responsibility for actions and
c) provide copies of the records to all in
attendance.
32. Early Warning The Employer shall approve The Contractor shall warn the Project The Project Manager may require the Contractor to
proposals to avoid or reduce the Manager of any likely future event that may provide an estimate of the effect on time and price.
No.
event. adversely affect the quality of the work, The Project Manager shall consider how this event
increase the price or delay the Works. can be avoided or reduced and instruct the
Contractor accordingly subject to the Employer’s
The Contractor shall cooperate with the
approval.
Project Manager in considering how this
event can be avoided or reduced and carry
out any resulting instructions from the PM.
C. Quality Control
33 Identifying Defects The Project Manager shall check the Contractor’s
work and notify him of any Defects found. The
Project Manager may also instruct the Contractor to
search for a defect and test any work that may have
a Defect.
The Project Manager may instruct a test not included
34 Tests If the test shows that there is a defect the
in the Specification.
Contractor shall pay for the test.
If the test shows there is no defect the test shall be a
Compensation Event.
35 Correction of The Employer may terminate the The Contractor shall correct the defect The Project Manager shall give notice to the
Defects Contract if a fundamental breach within the period given by the Project Contractor of any Defects before the end of the
of contract has occurred. Manager. Defects Liability Period.
The Project Manager shall extend the Defects
Liability Period for as long as Defects remain to be
corrected.
If the Contractor fails to correct it in a reasonable
timescale determined by the Project Manager then
the PM shall give notice to the Contractor that the
failure to correct a Defect is a fundamental breach of
Contract and will advise the Employer.
36 Uncorrected The Contractor will pay the amount If a defect has not been corrected in time the Project

No.
Defects assessed by the Project Manager. Manager will assess the cost of correction and the
Contractor.
D. Cost Control
37 Bill of Quantities The Contractor shall be paid for the
quantity of work done at the BOQ rate.
Subject to the Employer’s approval, The Project
38 Changes in the The Employer’s specific approval is The Contractor shall provide a detailed cost
Manager shall adjust the rate to allow for change if
BOQ required for any change in the breakdown of any rate.
the final quantity differs from the BOQ quantity for
BOQ.
an item by more than 25%, provided the change
exceeds 1% of the Initial Contract Price.
The Project Manager may not adjust rates if the
Initial Contract is exceeded by more than 15%.
39 Variations The Contractor shall include all Variations in
program updates.
The Contractor shall provide a quotation The Project Manager shall assess the quotation
40 Payments for The Employer’s specific approval is
when requested by the Project Manager within 7 days before the variation is ordered and
Variations required for any payment for a
within 7 days or such period as specified by subject to the Employer’s approval.
variation.
the PM. If the Contractors quotation is unreasonable the
The PM may use corresponding BOQ items Project Manager may order the variation based on
to calculate the Variation cost in the the Project Manager’s forecast of the effect on costs
circumstances specified. (Cl. 40.2).
The Project Manager shall check the Contractor’s
42 Monthly Payment The Contractor shall submit a monthly
statement and certify the amount to be paid to the
Certificates estimate of the value of the work executed.
Contractor.
The Project Manager shall determine the value of
work executed by the Contractor.
The Project Manager may exclude or reduce the
proportion of any item previously certified in the
light of later information.
43. Payments The Employer shall pay the If a certified payment is not paid by the The Project Manager shall advise the Employer if
No.
amount certified by the Project Employer within 84 days of the date of the interest shall be paid and if a fundamental breach of
Manager within 30 days of date of PM’s certificate a fundamental breach of Contract is due to occur.
each certificate. Contract has occurred and the Contractor
may terminate the Contract.
43 Payment of If payment is late the Contractor
interest for late shall be paid interest (at the
Payments prevailing rate for commercial
borrowing) in the next payment.
43.3 Payment of If an amount certified is increased
interest as a result in a later certificate or as a result
of Adjudication or of an award by Adjudication or
Arbitration Arbitration the Employer shall pay
interest upon the delayed
payment.
44 Compensation The Employer’s specific approval is The Contractor shall forecast the cost of a The Project Manager may determine what is a
Events required for any Compensation Compensation Event promptly and Compensation Event
Event. competently.
Subject to the Employer’s approval the Project
Manager shall decide whether and by how much the
Contract Price shall be increased and the Intended
Completion date extended for a Compensation
Event.
If the Contractor’s forecast is considered to be
unreasonable The Project Manager shall adjust the
Contract Price based on his own forecast subject to
the Employer’s approval.
45 Tax The Project manger shall adjust the Contract Price if
taxes, duties and levies are changed as indicated in
the Contract.

No.
46 Currencies Where payments are made in currencies other than
Uganda Shillings, the exchange rates used shall be as
stated in the Contractor’s bid.
47 Price adjustment Prices shall be adjusted for fluctuations in the cost of
inputs only if provided for in the SCC using the
methodology in the Contract.
48 Retention The Employer shall retain a The Project Manager shall calculate the amount of
proportion of each payment until retention in each payment certificate.
Completion of the Works.
49 Liquidated The Employer may deduct The Contractor shall pay damages at the The Project Manager shall calculate the liquidated
Damages liquidated damages from rate stated in the SCC for each day that damages and deduct them from payments to the
payments due to the Contractor completion is later than intended date. Contractor.
for each day that completion is
later than intended date.
50 Bonus If so stated in the SCC that Contractor shall
be paid a bonus.
51 Advance Payment The Employer shall pay an The Contractor shall provide an on demand The Project Manager shall keep the Employer
advance payment of the amount Bank Security effective until the advance is advised on the security validity.
stated in the SCC against provision repaid.
of an on demand Bank Security by
The Contractor shall use the advance
the Contractor. The Project Manager shall deduct advance
payment only for equipment, plant,
repayments from payments to the Contractor.
materials and mobilisation expenses and
shall demonstrate that the advance has
been used in this way by supplying invoices
or other documents.
The Contractor shall repay the advance by
deducting amounts from payments.
No.
52 Performance The Contractor shall provide a Performance The Project Manager shall keep the Employer
Security Security within 28 days of the notification of advised on the security validity.
contract award valid until a date 28 days
from the date of issue of Completion
Certificate.
53 Day works The Contractor shall recorded day works on The Project Manager shall give written instruction for
forms approved by the PM and signed by the use of day works; shall approve forms for the use
the PM. of recording day works and shall sign them within 2
days of the work being done.
54.1 Cost of Repairs The Contractor shall remedy loss or damage
between the Start Date and the end of the
Defects Correction period at his cost.
E. Finishing the Contract
55 Completion The Contractor shall request the PM to The Project Manager will issue a certificate of
issue a certificate of completion. completion upon deciding that work is completed.
56 Taking Over The Employer shall take over the
site and the Works within 7 days
of completion certificate issue.
57 Final Account The Contractor shall supply a Final Account The Project Manager shall issue a Defects Liability
before the end of the defects liability Certificate and certify final payment correct within
period. 56 days.
If it is not correct the Project Manager shall issue a
response to the Contractor within 56 days.
If the resubmitted Final Account is not satisfactory
the Project Manager shall decide the amount
payable and issue a payment certificate.

No.
58 Operations and The Contractor shall supply as built If drawings and manuals are not supplied the Project
Maintenance drawings and maintenance manuals if Manager shall withhold the amount stated in the SCC
manuals specified in the SCC. from payments to the Contractor.
59 Termination The Employer may terminate the The Contractor may terminate the Contract If a defect is not corrected by the Contractor the
Contract if the Contractor causes a if the Employer causes a fundamental Project Manager may give notice that failure to
fundamental breach of the breach of the Contract. correct a defect is a fundamental breach of Contract.
Contract.
If the Contract is terminated the Contractor When either party gives notice of breach of contract
shall immediately, make the Site safe and for any cause not included in Cl 59.2 the Project
leave Site as soon as reasonably practical. Manager shall decide if the breach is fundamental or
not.
60 Payment upon The Employer receives a The Project Manager shall issue a certificate for:
Termination. percentage of the value of the (a) Value of work done and;
Breach by work not completed as stated in (b) Materials ordered;
Contractor. the SCC.
Less:
(c) Advance payments received; and
(d) % to apply to the value of the work not
completed as indicated in SCC.
60 Payment upon The Contractor receives costs of removal of The Project Manager shall issue a certificate for:
Termination. equipment and personnel; and costs of (a) Value of work done;
Breach by protecting and securing the Works. (b) Materials ordered;
Employer.
Less
(c) Advance payments received;
(d) Reasonable cost of removal of equipment;
(e) Repatriation of Contractor’s personnel;
(f) Contractor’s costs of protecting and securing
the Works.

No.
61 Property All Materials on the Site, Plant,
Equipment, Temporary works and
Works shall be deemed to be the
property of the Employer if the
Contract is terminated due to the
Contractor’s default.

Uganda National Roads Authority
Plot 11 Yusuf Lule Road
P.O. Box 28487
Kampala Uganda
In any correspondence on this subject
Date Please quote No. UNRA/xx/xx/xx

Guidance Letter A8 Inaugural Meeting with Project Manager and Agenda
Our Reference UNRA/xxxx/xxxxx

Your reference
Project Manager (Supervision)

Address
Address
Address
Dear Sir,
Full Project Name
Re: Contract Start Up - Inaugural Meeting

You are requested to attend a meeting on xxxxx at yyy hours at UNRA HQ in the zzzz Room to discuss
the above project.
The purpose of the meeting is to obtain an understanding between the Client and Consultant of how
you intend to successfully undertake supervision of the contract. We attach the proposed agenda
for the meeting to this letter.
Please confirm your attendance at the meeting and advise the participants from your side who will
attend.
The contractor is due to start work on the project on xxxx and as such we wish to ensure the works
start as planned.
Please be prepared to present the key tasks the site team will undertake in the first three months of
the supervision period including reference to any key contractual dates.
It is important that you appreciate what UNRA wish to achieve, namely for you to deliver the project
on time, to specification and to budget. This will form a key part of how UNRA intend to measure the
performance of your consultancy during the execution phase.
Please make sure you include in all replies to UNRA, as requested above, “Our Reference”, which
contains the contract number for this project which is to be included on all correspondence and
documents.
Yours faithfully,
Name of Officer
Position
c.c.
List of Enclosures

Agenda for Contract Supervision Inaugural Meeting
1. Introduction
 Description of the Contract scope and UNRA expectations
 Introduction of Operations Contract Administration Manual
 Measurement of Contractors Performance
2. Organisation
 Client’s Organisation and personnel –list key staff and contacts
 Confirmation of Project Manager's Key Staff and date for mobilisation
 Project Manager to present office and transport arrangements
3. Lines of Communication
 Details of addresses and telecommunications of all parties
 Correspondence circulation; copies to whom and where
 Letters/Site Memos / Instructions / transmittals
 Naming of documents and submission of documents and data to UNRA
4. Documents
 List of documents to be handed over to Project Manager
5. Programme
 Confirm start date for Supervision Contract and Construction Contract
 Submission of programme for mobilisation of Supervision Team
6. Securities/Insurances
 Review of status of securities and insurances required under the Contract
7. Key Tasks/Meetings / Presentations

 Project Manager to present list of key actions to be undertaken in first 3 months
 Contents of Inception report and date for delivery
 Schedule for progress meetings, agenda to be issued by the Project Manager
8. Consultant’s Invoice
Format, advance payment (if applicable)
 Deductions and repayment of Advance (if applicable)
9. Progress Reports
 Scope, frequency, timings, content and hard/soft copy numbers to be agreed
10. Quality Control

 Project Manager to present Quality Plan
11. Safety
 Safety provisions and procedures including first-aid and accident reporting
12. Environment Requirements & Reporting

 Environmental Management Plan
 HIV/AIDS Awareness and Prevention Campaigns
13. Maintenance of Existing Road

 Condition of existing road
14. Any other matters

15. Date of Next Meeting
 Site Meeting to be arranged to review strip map and agree scope of work

P.O. Box 28487
Kampala Uganda
Please quote No. UNRA/xx/xx/xx
Date Guidance Letter A9 Issue of Minutes of Inaugural Meeting

Your reference

Address
Address
Address
Dear Sir,
Full Project Name
Re: Minutes of Inaugural Meeting
Please find attached Minutes of the Inaugural Meeting held on xxxxxxx.
Please note the actions arising and ensure they are undertaken by the dates agreed.
The date of the next meeting is yyyy, for the site visit and agreement of the scope of works. We will
meet at xxxxxx.
Yours faithfully,
Name of Officer
Position
c.c.
List of Enclosures

Standard Minutes of Meeting Template
Present at Meeting
UNRA Consultant
Action By
Item No. Minute
Responsible Date
1.
2.
3.
4.
5.

P.O. Box 28487
Kampala Uganda
Date PleaseGuidance
quote No.Letter
UNRA/xx/xx/xx
A11 Appointment of Project Manager

Your reference
Contractor
Address
Address
Address
Dear Sir,
Full Project Name
Re: Appointment of Project Manager
We write to confirm the details of the Project Manager under the Contract as follows
Consultant Name – address and contact details
Team Leader and Road/Highway Engineer – name and contact details
The Project Manager’s duties are defined in the Contract.
We would remind you that the Employer’s specific approval is required for varying the Works with
respect to time, cost and quality. Any request for variation shall be communicated to the Employer
through the Project Manager who will verify the reasons for approval and forward them to the
Employer.
Yours faithfully,
Name of Officer
Position
c.c. Project Manager

Present at Meeting
UNRA Consultant
Action By
Item No. Minute
Responsible Date
1.
2.
3.
4.
5.

Company Logo (Consultant or UNRA Station Name)
Address
Address
Address
Phone
Facsimile:
Date Guidance Letter A12 Scope of Works and Budget Update
Our Ref. No.: xxxxxxxxxxxxxxxxx

Your Ref. No. yyyyyyyyyyyyyyyyy
UNRA
Address
Address
Address
Attention Name of Employers Representative
Dear Sir,
Full Project name
Re: Scope of Works and Budget Update
Please find attached Minutes of the Site Visit and Meeting held on xxxxxxx.
Following the site visit we have updated the strip map to illustrate the scope of works
agreed and also updated the Bill of Quantities based on the revised scope of work. The
budget for the Works is now UGX xxxxxx.
We would be grateful to receive your confirmation of the scope and budget for the
Works.
Yours faithfully,
Project Manager’s Name

Company Name
Enclosures: Minutes of Meeting

Revised Strip Plan
Revised Bill of Quantities

Present at Meeting
Action By
Item No. Minute
Responsible Date
1
2
3
4
5

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter A13 Land Acquisition, Third Party or Compensations Issues

UNRA
Address
Address
Address
Dear Sir,
Full Project name
Re: Land Acquisition, Third Party or Compensations Issues
Following our Site Visit and Meeting held on xxxxxxx we have now reviewed the land
acquisition, third party and compensation issues identified.
We address the issues as follows:

 List of issues, status and proposed action by the Employer, Station Engineer or
Project Manager (if applicable).
On this basis you may confirm possession of the Site to the Contractor.
Yours faithfully,

Company Name

Revised Strip Plan
Revised Bill of Quantities

Present at Meeting
Action By
Item No. Minute
Responsible Date
1
2
3
4
5

Plot 11
Plot 11 Yusuf
Yusuf Lule
Lule Road
Road
P.O. Box
P.O. Box 28487
28487
Kampala Uganda
Kampala Uganda
In any
In any correspondence
correspondence on
on this
this subject
subject
Please quote
Please quote No.
No. UNRA/xx/xx/xx
UNRA/xx/xx/xx
Date Guidance Letter A14 Possession of the Site

Your reference
Contractor
Address
Address
Address
Dear Sir,
Full Project Name
Re: Possession of the Site
In accordance with Clause 21 of the Contract we give you possession of the Site with effect from the
Start Date (insert start date).
Yours faithfully,
Name of Officer
Position

P.O. Box 28487
Kampala Uganda
Date Guidance Letter A15 Confirmation of Budget Allocation

Your reference

Address
Address
Address
Dear Sir,
Full Project Name
Re: Confirmation of Budget Allocation
We acknowledge receipt of the revised strip map and Bill of Quantities following our site visit on
xxxxxx.
We are content with your revised proposals and confirm that a budget of UGX xxxxxx is allocated to
this project. Please ensure that you manage the Works to achieve completion within this Contract
Price.
We would remind you that the Employer’s specific approval is required for varying the Works with
respect to time, cost and quality. Any request by the Contractor for a variation shall be
communicated to the Employer by you.
Yours faithfully,
Name of Officer
Position
c.c. Contractor

P.O. Box 28487
Kampala Uganda
Date Guidance Letter A16 Appointment of Adjudicator

Your reference
Uganda Institute of Professional Engineers

P.O.Box 1308
Gloucester Ave
Kampala
Uganda
Dear Sir,
Full Project Name
Re: Appointment of Adjudicator
We have commenced (insert full project name).
Parties to the Contract are:

(Insert name of Contractor)
The project will be supervised by (insert name of Project Manager)
In accordance with the Contract the Uganda Institution of Professional Engineers is responsible for
the appointment of an Adjudicator. We would be grateful if you would appoint a Adjudicator in the
event a dispute arises.
The fees and reimbursements payable to the Adjudicator are 100,000 UGX per hour; they will be
paid jointly by the Employer and the Contractor for inputs in the event of a dispute arising.
We look forward to hearing from you.
Please provide both the Employer and the Contractor with a copy of your letter of response.
Yours faithfully,
Name of Officer
Position
c.c. Provide full details of Contractor including address for correspondance.

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B1 Inaugural Meeting and Standard Agenda

Contractor Name
Address
Address
Address
Attention Name of Contractors Representative
Dear Sir,
Full Project name
Re: Contract Start Up - Inaugural Meeting
You are requested to attend a meeting on xxxxx at yyy hours at the UNRA Station at zzzz to discuss
the above project.
The purpose of the meeting is to obtain an understanding between the Contractor, the Client and
the Project Manager on how you intend to successfully undertake construction of the Works. We
attach the proposed agenda for the meeting.
Please confirm your attendance at the meeting and advise the participants from your side who will
attend.
Please be prepared to present your proposals for mobilisation, personnel, programme and quality.
It is important that you appreciate what UNRA wish to achieve, namely for you to deliver the project
on time, to specification and to budget. This will form a key part of how UNRA intend to measure
your performance during construction of the Works.
Please make sure you include in all letters, “Our Reference”, which contains the contract number for
this project which is to be included on all correspondence and documents.
Yours faithfully,

Company Name
cc UNRA
Stakeholders
Enclosures: Proposed Agenda

Address
Address
Address
Phone
Facsimile:

Agenda for Contract Start Up Inaugural Meeting
1. Introduction
 Description of the Contract scope and UNRA expectations
 Introduction of Operations Contract Administration Manual
 Measurement of Contractors Performance
2. Organisation
 Employers Organisation and personnel
 Project Manager's organisation and personnel
 Contractor's organisation and personnel
3. Communications
 Details of addresses and telecommunications of all parties
 Correspondence circulation; copies to whom and where
4. Scope of Works
 Timing for issue of drawings/strip map to the Contractor
5. Programme
 Submission of programme and method statement(s)
 Plant, equipment and labour mobilisation
 Status of land acquisition and compensation (Employer to comment)
 Dates for commencement and possession of site (or parts thereof)
6. Insurances
 Status of insurances required under the Contract

7. Meetings
 Schedule for progress meetings
 Agenda to be issued by the Engineer’s Representative
8. Measurement of the work

 Advance payment / status of guarantee
 Monthly estimate of work completed, procedure for IPC submittal; number of
copies
 Retention; repayment of Advance, and escalation
 Dayworks and variation orders
9. Monthly Programme Updates

 Submission timing and content
10. Quality Control

 Presentation of Quality Plan for inspection and testing
11. Contractor's Facilities

 Accommodation/camp facilities/storage areas/borrow pit proposals
12. Safety
 Contractors Health and Safety Plan
 HIV/AIDS Awareness and STD prevention
13. Environment Requirements & Reporting

 Contractor’s Environmental Management Plan
14. Any other matters

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B1 Minutes of Inaugural Meeting

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Contract Start Up – Minutes of Inaugural Meeting
Please find attached Minutes of the Inaugural Meeting held on xxxxxxx.
Please note the actions arising and ensure they are undertaken by the dates agreed.
The date of the next meeting is yyyy.

Yours faithfully,

Company Name
cc UNRA
Stakeholders

Present at Meeting
Action By
Item No. Minute
Responsible Date
1
2
3
4
5

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B2 Scope of Maintenance Works

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Scope of Maintenance Works
Following contract award we have reviewed the scope of works to take account of the existing
condition of the road.
Please find attached a strip map indicating the revised scope of works together with a revised Bill of
Quantities.
Please include the revised scope of works in your next programme update.
Yours faithfully

Company Name
cc UNRA
Enclosures: Revised Strip Map and Bill of Quantities

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B3 Start Date and Intended Completion Date

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Start Date and Intended Completion Date
We write to confirm the agreed Start Date and the Intended Completion Date as follows:
Start Date: insert date xxxxxxxxx

Intended Completion Date: insert date yyyyyyyyyyy
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B4 Details of Project Manager’s Site Representatives

Contractor Name
Address
Address
Address
Attention Contractors Representative
Dear Sir,
Full Project name
Re: Details of Project Manager’s Site Representatives
We write to confirm the details of the Project Manager’s Site Representatives and their
responsibilities as follows:
Consultant Name – xxxxxxxxxxxx

Team Leader and Road/Highway Engineer – yyyyyyyyyyyyy
Responsibilities:
a) aaa
b) bbb
c) ccc
Materials Technician – zzzzzzzzzzzzzzz
d) ddd
e) eee
f) fff
Road Inspector - vvvvvvvvvvvvv
g) ggg
h) hhh
i) iiiiii
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B5 Evidence of Insurance

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Evidence of Insurance
The Contract (Clause 13) requires you to provide insurance from the Start Date to the end of the
Defects Liability Period in the joint names of the Employer and the Contractor.
Please provide evidence of insurance in accordance with the Contract requirements within 7
calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B7 Clarification of Terms of Insurance

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Clarification of Terms of Insurance
Thank you for your letter dated (insert date) and (reference no.) providing details of your insurance.
Your insurance does not comply with the Contract requirements as follows:
Delete/comment as applicable:
 Joint Names
 Period of Insurance
 Cover and/or deductibles for loss of or damage to the Works, Plant and
Materials
 Cover and/or deductibles for loss of or damage to Equipment
 Cover and/or deductibles for loss of or damage to property
 Cover and/or deductibles for personal injury or death
Please provide insurance which complies with the Contract within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B8 Contractors Insurance Details

Your Ref. No. Yyyyyyyyyyyyyyyyy
UNRA
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractors Insurance Details
The Contractor has provided evidence of insurance (insert details of Contractor letter dated and
reference no.).
Either
We have checked that the terms of insurance conform with the Contract requirements and enclose a
copy of the insurance for your information.
Or
The Contractor’s insurance does not comply with the Contract requirements as follows:
 Joint Names
 Period of Insurance
 Cover and/or deductibles for loss of or damage to the Works, Plant and
Materials
 Cover and/or deductibles for loss of or damage to Equipment
 Cover and/or deductibles for loss of or damage to property
 Cover and/or deductibles for personal injury or death
The Contractor has declined to obtain the correct insurance cover.

There are two courses of action open under the Contract as follows:
1. Contract clause 13.3 provides for the Employer to effect the necessary
insurance and recover premiums from payments due to the Contractor; or
2. Contract Clause 59.2 allows for the Employer to terminate the Contract if the
Contractor causes a fundamental breach of Contract.
It is considered that the Contractor’s inability to provide insurance constitutes a breach of
contract sufficient to justify termination. If you agree we will issue a Notice to the Contractor
to this effect.
Please advise the course of action you wish to take.
Yours faithfully

Company Name
cc Contractor’s Representative
Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B9 Advance Payment

UNRA
Address
Address
Address
Dear Sir,
Full Project name
Re: Advance Payment
The contractor has submitted an interim payment certificate for the advance payment (IPC No. 1
dated xxxxxxxxxxxx) (insert date).
We can confirm that the Contractor has provided an advance payment on demand bank guarantee
dated xxxxx (insert date); which conforms with the Contract requirements. This guarantee was
presented on xxxxxx (insert date).
We have checked the interim payment certificate and confirm it is in accordance with the Contract.
We now attach xx copies the signed certificate for payment by the Employer.
Please be advised that in accordance with Contract Clause 51 the payment of the advance shall be
made to the Contractor within 30 days (calendar or working to be confirmed in contract definitions)
of the presentation of the bank guarantee. Therefore payment should be made by xxxx (insert date).
Yours faithfully

Company Name

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B10 Contractor’s Programme

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Program
Thank you for your letter dated (insert date) and (reference no.) providing details of your program
and your method statement.
Either
Your programme is approved. Please submit monthly program updates in accordance with the
Contract requirements within 5 calendar days of the month end.
Or
Your program does not comply with the Contract requirements. Please see comments below.
Method Statement
 Site Set Up;
 Source major materials, timescale for testing and approvals;
 Approach to Quality (Quality Plan to be submitted separately for approval)
 Plant
 Method statement for each key activity to include production rates.
Programme
 Site Set Up
 Borrow Pit investigation/approval period, material production
 Approvals e.g. site trials
 Work broken down into major activities and sections including Chainages and
resources
 For each section, quantities with assumed production rates (different for
wet/dry seasons)
 Critical Path
Please submit a revised programme taking account of the comments within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B11 Contractor’s Key Personnel

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Key Personnel
Thank you for your letter dated (insert date) and (reference no.) providing details of your
replacement key personnel.
Either
Your proposed personnel are approved.
Or
Your proposed personnel are not approved. Replacement personnel must be equal to or better than
those scheduled in the Contract. Please see comments below.
Site Agent
 Inadequate knowledge of maintenance and construction of unpaved highways;
 Inadequate experience of preparation of project programs and program
updates;
 Inadequate experience of preparation of estimates of work done;
 Inadequate experience of natural road base course materials;
 Inadequate experience of site management.
Please submit revised staffing proposals within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B12 Contractor’s Quality Plan

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Quality Plan
Thank you for your letter dated (insert date) and (reference no.) providing your proposed Quality
Plan.
Either
Your proposed Quality Plan is approved.
Or
Your proposed Quality Plan is not approved. Please see comments below.
Delete/comment as applicable. For example
 No proposals for location and testing of borrow pits;

 No proposals for roadbed testing prior to placement in accordance with
specification clause 3604 (preparation of the road bed);
 Inadequate proposals for testing of borrow pit samples to demonstrate that
satisfactory quality and quantity of materials;
 Inadequate proposals for frequency and testing of gravel wearing course
materials including soil parameters and in situ density testing; in accordance
with specification clauses 3702(pavement layers of natural gravel materials) and
7100 (testing of materials and workmanship).
 No proposals for testing of concrete pipe culverts;
Please submit a revised quality plan within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B13 Contractor’s Mobilisation

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Mobilisation
We write to express our concern on your poor mobilisation of equipment, personnel and materials
(delete as applicable) following the Contract start up.
Personnel
You are obliged under the Contract to employ the key personnel named in the Contract. You have
failed to mobilise the personnel listed below or propose suitable replacements for approval. (List
personnel)
Equipment
You are obliged under the Contract to mobilise the equipment named in the Contract. You have
failed to mobilise the equipment listed below. (List equipment)
Materials
You have failed to identify suitable gravel materials; and undertake the necessary testing to establish
the quality and quantity of material required.
The Employer has provided you with an advance payment for use only to pay Equipment, Plant and
Materials and mobilisation expenses required specifically for execution of the Contract. We are not
satisfied that you have made use of the advance payment in accordance with the Contract
provisions. Please supply copies of invoices or other documents demonstrating your use of the
advance payment.
Please take action to address the issues discussed above within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B14 Contractor’s Borrow Pit Proposals

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Borrow Pit Proposals
We write to express our concern on your lack of progress in providing your proposals for gravel
materials from borrow pits.
You are obliged under the Contract to submit borrow pit proposals for approval prior to the start of
each maintenance activity or cycle to demonstrate the availability of the quantity and quality of
gravel required including:
 Locations, trial holes details and test results;
 Proposals for usage of borrow materials;
 Access, protection and finishing off details;
 Confirmation of agreement with land owner.
Failure to finalise the location of your proposed borrow pits will result in a delay to the program of
Works. Please take action to address this issue within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B15 Contractor’s Health and Safety Plan

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Health and Safety Plan
Thank you for your letter dated (insert date) and (reference no.) submitting your health and safety
plan.
Either
Your plan is approved.
Or
Your plan does not comply with the Contract requirements. Please see comments below.
 safe operation of equipment and safe access,
 safe handling, storage and transport of materials
 protective clothing and equipment
 appointment of Safety Officer
 safety courses
 sanitation arrangements
 measures to reduce occupational health hazards
 hiv/aids and std prevention
Please take action to address the issues detailed above within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B16 Contractor’s Traffic Management Plan

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Traffic Management Plan
Thank you for your letter dated (insert date) and (reference no.) submitting your traffic management
plan.
Either
Or
 provision of diversions
 safe passage and control of traffic
 access to properties affected by the Works
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B17 Contractor’s Environmental Management Plan

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Environmental Management Plan
Thank you for your letter dated (insert date) and (reference no.) submitting your environmental
management plan.
Either
Or
 landscape preservation
 prevention of water pollution
 abatement of air pollution and dust
 cleanup and disposal of waste materials
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter B18 Contractor’s Temporary Works Designs

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Temporary Works Designs
Your have failed to submit any details of your designs for temporary works for approval in
accordance with Contract Clause 18.
Please take action to address this issue detailed above within 7 calendar days. If you consider there
to be no temporary works please provide confirmation in writing.
Yours faithfully

Company Name
cc UNRA

Guidance D3 Standard Monthly Site Meeting Agenda
1. Present
2. Apologies
3. Visitors to site during previous month
4. Minutes of previous meeting
5. Matters arising
6. Progress and Programme
6.1 Review of overall progress
6.2 Review progress on major works items in the BoQ
6.3 Impediments to progress and actions required to overcome them
6.4 Early warning on potential delays. Avoidance or mitigation of the effects
6.5 Review monthly programme update
6.7 Review construction operations to be undertaken in the short/medium term
6.8 Discuss any anticipated problems and actions to mitigate
6.9 Record any information required by the Contractor from the Engineer
6.10 Record any information required by the Engineer from the Contractor
6.11 Current Status of Mobilisation
7. Design, Materials and Quality Control
7.1 Queries on Design, Specification, Materials and Testing.
7.2 Review of materials resourcing.
7.3 Difficulties experienced in sourcing materials and achieving required quality.
7.4 Actions required for mitigation of difficulties.
7.5 Comments on the general standard of workmanship and materials.
7.6 Details of sub-standard work and Contractor’s proposals for making good.
8. Finance
8.1 Review of latest estimate of work done and estimated final cost
8.3 Discuss possible measures to reduce any cost over-runs
8.4 Confirmation or discussion on or issuing variation orders
8.5 Processing of payment certificates
8.6 Price Adjustment (If applicable)
9. Claims
9.1 Review status of claims and disputes, and actions to expedite settlement
10. Safety
10.1 Record any incidents that have occurred since the previous meeting
10.2 Comment on any situations that do not have full regard for the safety.
10.3 Traffic Accommodation
11. Environment
11.1 Environmental Progress
11.2 HIV/AIDS Awareness and Prevention Campaigns
12. Any Other Business

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter E3 Contractor’s Failure to Submit Program Updates

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Failure to Submit Programme Updates
Your have failed to submit programme updates for ( insert months xxxx and yyyy) in accordance with
Contract Clause 27.
Please take urgent action to provide a program update within 7 calendar days.
If you do not submit an updated programme within this period we will withhold the amount stated
in the Special Conditions of Contract (Clause 27.3) from the next payment certificate until the
overdue program has been submitted.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter E5 Contractor’s Program Update

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Programme Update
Thank you for your letter dated (insert date) and (reference no.) providing your program update
.
Either
Your program is approved.
Or
Your program does not comply with the Contract requirements. Please see comments below.
 actual progress achieved on each activity,
 the effect of the progress achieved on the timing of the remaining work,
 any changes to the sequence of the activities
 the effect of variations or compensation events.
Please submit a revised program taking account of the comments within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter F4 Contractor’s Borrow Pit Proposals

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Borrow Pit Proposals
Thank you for your letter dated (insert date) and (reference no.) providing details of your borrow pit
proposals.
Either
Your proposals are approved.
Or
Your proposals do not comply with the Contract requirements. Please see comments below.
Delete/comment as applicable.
 Your test proposals are insufficient to demonstrate the availability of the quality
of gravel required, more testing is required;
 Your test proposals are insufficient to demonstrate the availability of the
quantity of gravel required, more testing is required;
 Please provide more detail on where you propose to use the borrow pit
material to demonstrate it is the most economic option for the Employer;
 You have failed to provide access, protection and finishing off details;
 You have failed to confirm the agreement of the land owner;
 Other comments that may be applicable
Failure to finalise the location of your proposed borrow pits will result in a delay to the program of
Works. Please take action to address these issues within 7 calendar days.
Yours faithfully

Company Name
cc UNRA
Address
Address
Address
Phone
Facsimile:
Date Guidance Letter F5 Notice of Defects

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Notice of Defects
We write to give notice of the following Defects:
Defect Location Description of Defect Time for Correction

Ch xxx to yyy Describe defect and give reason why it is not in Specify reasonable
accordance with the Contract. time or date
Please correct the defects notified within the length of time specified in accordance with Clause 35
of the Contract.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter F6 Search for Defects

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Search for Defects
We write to give notice that we require you to uncover and test the following works to confirm that
they are in accordance with the Contract requirements:
Location Description of Work Testing Requirements

Time to Uncover
and test
Ch xxx to yyy Description of item which Test(s) to be performed to Specify reasonable
may be defective. confirm time or date
Please uncover the works and undertake the testing notified within the length of time specified in
accordance with Clause 33 of the Contract.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter F8 Extension of Defects Liability Period

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

We refer to our letter dated (insert date) and (reference no.) giving notice to correct Defects.
The following defects remain to be corrected:

In accordance with Clause 35 of the Contract we give notice that the Defects Liability Period has
been extended to the date by which you are required to correct the outstanding defects.
If necessary the Defects Liability Period will be further extended until these defects are corrected.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter F9 Cost for Correction of Defects

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Notice of Cost for Correction of Defects
The following defects remain to be corrected:

Ch xxx to yyy Describe defect and give reason why it is not in Specify time or date
accordance with the Contract.
In accordance with Clause 36 of the Contract we give notice that we have assessed the costs of
having the Defects corrected as follows:
Defect Location Description of Defect Cost for Correction

Ch xxx to yyy Describe defect and give reason why it is not in Specify assessed cost.
If the Defects are not corrected within xx working days these costs will be deducted from the final
payment due to you under the Contract in accordance with Clause 36 of the Contract.
Meanwhile in accordance with Clause 35 of the Contract we hereby notify you that the Defects
liability period has been extended to xxxx.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter G6 Exclusion of Item Previously Certified for Payment

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name
Re: Exclusion of Item Previously Certified for Payment
This work was previously certified in interim payment certificate (insert number and date of
certificate) and payment was made on (insert date).
In accordance with Clause 42 of the Contract we will deduct the following amount from future
payment applications until such time as the Defect notified has been corrected:
(Insert calculation indicating the amount of deduction)
Yours faithfully

Company Name
cc UNRA or as required
List of Enclosures

Address
Address
Address
Phone
Facsimile:
Date Guidance G7 Interim Payment Certificate

UNRA
Address
Address
Address
Dear Sir,
Full Project name
Re: Interim Payment Certicate No. xx
(Insert Contractor’s name) has submitted an application for payment, Interim Payment Certificate
(IPC) No. xx for the period of (insert period from/to), total (insert amount in numbers) and (in
words), excluding VAT.
We have checked IPC No. xx and recommend it for payment.
The amount recommended is payable in local currency of UGX (insert amount.
We enclose xx copies of the Certificate together with the Contractor’s covering letter (insert ref no.
and date) for your attention.
In accordance with Contract Clause 43 payment should be made to the Contractor by (insert date 30
days from the date of the certificate).
Yours faithfully

Company Name

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter G13 Compensation Event Approval Request

UNRA
Address
Address
Address
Dear Sir,
Full Project name
Re: Request for Approval of Compensation Event No. xx
The contractor has written to request the instruction of a Compensation; please refer to the
Contractor’s letter dated (insert date) and (reference no.) (copy attached).
We have assessed the Contractor’s justification and forecast cost for the Compensation Event. We
consider that the justified on the following grounds:
 Early warning for the event was given by the Contractor on (insert date and
letter reference)
 Insert justification citing relevant contract clause (Clause 44.1)
We attach a copy of our assessment of the Compensation Event for your attention.
In accordance with the Contract requirements we request your approval for a Compensation Event
as follows:
 additional cost (insert additional cost and revised Contract price)
 extension of the Intended Completion date to (insert extension period and new
Intended Completion Date).
We look forward to receiving your approval.
Yours faithfully

Company Name
cc Contractor
Enclosures Copy of Contractors justification and cost estimate

Copy of Project Manager’s assessment of Compensation Event

Address
Address
Address
Phone
Facsimile:
Date Guidance G14 Project Manager Assessment of Compensation Event

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Compensation Event No. xx
Thank you for your letter dated (insert date) and (reference no.) providing a forecast for
Compensation Event No. xx (insert number).
We have assessed your forecast and consider it to be unreasonable for the following reasons:
 Provide justification
We have made our own estimate of the forecast as follows:

 additional cost (insert additional cost and revised Contract price)
 extension of the Intended Completion date to (insert extension period and new
Intended Completion Date).
We attach the Project Manager’s assessment of the Compensation Event for your information.
We propose to seek approval from the Employer for a Compensation Event on this basis in
accordance with Clause 40 of the Contract.
Please confirm you are content to proceed with the Compensation Event on this basis within 7
calendar days.
Yours faithfully

Company Name
cc UNRA
Enclosure Copy of Project Manager’s assessment of Compensation Event

Address
Address
Address
Phone
Facsimile:
Date Guidance G16 Request for Estimated Effect of Early Warning

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Request for Estimated Effect of Early Warning No xx
We refer to the discussions at the Progress Meeting held on (insert date) wherein you raised Early
Warning No. xx (insert number and brief description of early warning).
Please provide an estimate of the expected effect of the event and its impact as follows:
 Impact on quality of the work
 Effect on cost of the Work
 Effect on the Intended Completion Date
 Proposals to overcome or reduce the effects of the event.
Please provide your estimate within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance I2 Issue of Completion Certificate

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Issue of Completion Certificate
Thank you for your letter dated (insert date) and (reference no.) requesting a Completion Certificate.
Either
We enclose the Completion Certificate.
We have requested the Employer to take over the Site within 7 days of the date of this certificate.
Or
The following works are outstanding:
 Insert list of outstanding works. Include reasonable date for completion of each
item.
Please complete these works. On completion of these works please submit a new request for a
Completion Certificate.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Certificate of Completion of the Works
Contractors Name and Address Employers Name and Address
Project Reference Number

Full Project Name
In accordance with Clause 55 of the Contract we certify that Works are complete.
Signature ........................................
Name of Project Manager ........................................
Date of signature ........................................

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter I3 Completion of the Works and Site Take Over

UNRA
Address
Address
Address
Dear Sir,
Full Project name
Re: Completion of the Works and taking over of the Site
The Works have been completed and a Certificate of Completion has been issued to the Contractor
(copy of certificate attached).
Following the completion of the Works the Employer shall take over the Site within 7 days of the
issue of the Certificate of Completion.
Accordingly the Site will beome the Employer’s responsibility on (insert date 7 days after date of
certificate).
Yours faithfully

Company Name
cc The Contractor
Enclosures Copy of Certificate of Completion of the Works

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter I4 Notice of Defects

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

We write to give notice that the following Defects require correction:

Please correct the defects notified within the length of time specified in accordance with Clause 35
of the Contract.
Please note that the Defects Liability Period will be extended for as long as the defects remain to be
corrected.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance I5 Issue of Defects Liability Certificate

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Issue of Defects Liability Certificate
Thank you for your letter dated (insert date) and (reference no.) notifying of the correction of the
outstanding Defects and request for the issue of a Defects Liability Certificate.
Either
We enclose the Defects Liability Certificate confirming completion of the Defects Liability Period and
correction of all notified Defects.
Or
The following Defects require correction:
 Insert list of outstanding Defects and letter reference for each defect
notification.
Please notify us when these defects have been corrected..
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Defects Completion Certificate
Contractors Name and Address Employers Name and Address
Project Reference Number

Full Project Name
In accordance with Clause 57 of the Contract we certify the following:
1. The end of the Defects Liability Period on (insert date); and

2. That all notified Defects have been corrected.
Signature ........................................
Name of Project Manager ........................................
Date of signature ........................................

Address
Address
Address
Phone
Facsimile:
Date Guidance I7 Final Account

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Final Account
Thank you for your letter dated (insert date) and (reference no.) enclosing the Final Account.
Either
We confirm that the final account is correct and complete. We have certified the Final Account and
passed it to the Employer for payment.
50% of the retention has been repaid following issue of the Certificate of Completion of the Works.
The remaining 50% will be repaid upon completion of the Defects Liability Period, correction of the
Defects and issue of the Defect Liability Certificate. (Amend as necessary according to the
circumstances).
Or
The Final Account is incorrect. We hereby provide a schedule of correction and additions to the Final
Account that are required.
Final Account Schedule of Corrections and Additions
BOQ Submitted Quantity Corrected or Additional Comment

Item No. Quantity
Please resubmit the Final Account within 21 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance I8 Unsatisfactory Final Account

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Unsatisfactory Final Account
Thank you for your letter dated (insert date) and (reference no.) enclosing the revised Final Account.
Either
We confirm that the revised Final Account is correct and complete. We have certified the Account
and passed it to the Employer for payment.
Or
The Final Account is unsatisfactory. We hereby provide a schedule of the issues and our decision on
the amount payable for each issue.
Final Account - Schedule of Issues and Decision on Amount Payable
BOQ Submitted Quantity Corrected or Additional Comment

Item No. Quantity
In accordance with clause 57 of the Contract the Project Manager shall decide on the amount
payable for the Final Account and issue a payment certificate. Please find attached a copy of the
payment certificate forwarded to the Client for payment in settlement of the Final Account.
Yours faithfully

Company Name
cc UNRA
Enclosure Payment Certificate for Final Account

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J1 Contractor’s Mobilisation

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Mobilisation
We wrote to express our concern on your inadequate mobilisation of equipment, personnel and
materials (delete as applicable) on (insert date and reference number of letter).
Your response is inadequate. You have failed to mobilise the following:

 Insert details
You have also failed to supply copies of invoices or other documents demonstrating your use of the
advance payment to pay Equipment, Plant and Materials and mobilisation expenses as requested in
our letter (insert date of letter).
Your inability to mobilise in accordance with the Contract is considered to be a fundamental breach
of the Contract.
We hereby give Notice that if you do not mobilise the equipment, personnel and materials required
by the Contract within 28 calendar days we will recommend to the Employer that they terminate the
Contract in accordance with the procedure set out Clause 59 of the Contract.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J2 Contractor’s Personnel

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Contractor’s Personnel
We wrote to express our concern on the poor performance of your site agent on (insert date and
reference number of letter). You have failed to respond or replace your site agent.
Your performance of your site agent continues to be inadequate and it is effecting the performance
of the Contract as follows:
(delete/amend list as applicable)
 The quality of the materials and the quality of the Works do not meet the
specification requirements and there are defects;
 The Contract is behind program (state timescale);
 The program is out of date and not being regularly updated; and
 It is considered that you will not complete the Works by the Intended
Completion Date.
Your inability to mobilise an experienced site agent is resulting in major difficulties with the Contract
implementation. This is considered to be a fundamental breach of the Contract.
We hereby give Notice that if you do not provide a properly qualified and experienced site agent as
required by the Contract within 28 calendar days we will recommend to the Employer that they
terminate the Contract in accordance with the procedure set out Clause 59 of the Contract.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J5 Works Stopped for 28 Days

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Works Stopped for 28 Days
You have stopped work on the Contract for in excess of 28 calendar days without explanation in
writing.
The program does not call for a stoppage and it has not been authorised by the Project Manager.
Your actions are considered to be a fundamental breach of the Contract.
We hereby give Notice that if you do not submit a revised programme which shows how you intend
to complete the Works by the Intended Completion Date and restart the Works with 14 calendar
days we will recommend to the Employer that they terminate the Contract in accordance with the
procedure set out Clause 59 of the Contract.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J6 Inadequate Rate of Progress

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Inadequate Rate of Progress
The current program is out of date.
The program does not record the actual progress achieved to date nor does it show how you intend
to complete the Works by the Intended Completion Date.
Based on the rate of progress achieved to date we estimate that the works will be delayed by xxxx
(insert Project manager’s estimate of delay).
This delay exceeds the number of days for which the maximum amount of liquidated damages can
be imposed (yyy days –insert number of days calculated in accordance with Contract Clause 49).
In accordance with Clause 59 of the Contract this represents a fundamental breach of the Contract.
We hereby give Notice that if you do not:

1. Submit a revised programme which shows how you intend to complete the
Works by the Intended Completion Date within 7 calendar days;
2. Maintain the rate of progress necessary to achieve the Intended Completion
date for the following 3 calendar months;
We will recommend to the Employer that they terminate the Contract in accordance with the
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J7 Failure to Submit Program Updates

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Failure to Submit Program Updates
We wrote to you on (insert date and reference no. of letter) concerning your failure to submit
program updates for (insert months xxxx and yyyy) in accordance with Contract Clause 27.
You have failed to submit the required program updates.
Accordingly, in accordance with Clause 27 of the Contract, we hereby give notice that we will
withhold the amount (insert amount calculated in accordance with Special Conditions of Contract
Clause 27.3) from the next payment certificate and continue to withhold this amount until the next
payment after the overdue program has been submitted.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance J8 Request for Extension of Intended Completion Date

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Request for Extension of Intended Completion Date
Thank you for your letter dated (insert date) and (reference no.) requesting an extension of the
Intended Completion Date from (insert current date) to (insert new date requested by Contractor)
because of the (insert reason for delay supplied by the Contractor).
We have considered your request for an extension of time and we have decided that the Intended
Completion Date will not be extended because in accordance with Clause 32 of the Contract
Either
you failed to give an early warning of the delay.
Or
you failed to cooperate in dealing with this delay following your early warning in accordance with
our letter (insert date and reference number of our letter).
Therefore your request for an extension of the Intended Completion Date is rejected in accordance
with Contract clause 28.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance J9 Request for Variation of Cost

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Request for Variation of Cost
Thank you for your letter dated (insert date) and (reference no.) supplying a quotation for a
Variation of (insert cost requested by Contractor) because of the (insert reason for Variation
supplied by the Contractor).
We have considered your request for a Variation. In accordance with Clause 40 of the Contract your
request for a variation is rejected because you failed to provide an early warning in accordance with
Clause 32 of the Contract and provision of an early warning would have allowed the additional cost
to be avoided.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J10 Correction of Defects

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Correction of Defects
We refer to our letter (insert date and reference number) giving notice of the requirement to correct
the following Defects within the length of time stated:

Ch xxx to yyy Describe defect and give reason why it is not in Specify time or date
You have failed to correct the Defects in the length of time stated.
Your failure to correct the defects is considered to be a fundamental breach of the Contract.
We hereby give Notice that if you do correct the defects within 14 calendar days (insert reasonable
period) we will recommend to the Employer that they terminate the Contract in accordance with the
Meanwhile we propose to extend the Defects Liability Period until the (insert reasonable date by
which the defects could be corrected).
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance Letter J11 Failure to Correct Defect/Cost Defect Correction

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Failure to Correct Defects and Cost Correction of Defects
We refer to our letter (insert date and reference number) giving notice of the requirement to correct
Defects within the time stated. You have failed to correct the Defects in the time stated.
In accordance with Clause 36 of the Contract we have assessed the cost of having the Defects
corrected. You will pay these costs; they will be deducted from the next payment certificate. The
costs are scheduled below:
Defect Location Description of Defect Cost for Correction

Ch xxx to yyy Describe defect and give reason why it is not in PM’s estimate of cost
Your failure to correct the defects is considered to be a fundamental breach of the Contract.
We will recommend to the Employer that they terminate the Contract in accordance with the
Meanwhile we propose to extend the Defects Liability Period until the (insert reasonable date by
which the defects could be corrected).
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance J12 PM’s Forecast for Variation

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Project Manager Forecast for Variation
Thank you for your letter dated (insert date) and (reference no.) providing a quotation for a
Variation of (insert cost requested by Contractor) because of the (insert reason for Variation
supplied by the Contractor).
We have considered your quotation and consider it to be unreasonable for the following reasons:
 List reasons
Our forecast of the Variation is (insert details of forecast).
We propose to seek approval from the Employer for a Variation on this basis in accordance with
Clause 40 of the Contract.
Please confirm you are content to proceed with the Variation within 7 calendar days.
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance J15 Entitlement to Payment for Compensation Event

Contractor Name
Address
Address
Address
Dear Sir,
Full Project name

Re: Entitlement to Payment for Compensation Event No. xx
Thank you for your letter dated (insert date) and (reference no.) providing a forecast for
Compensation Event No. xx (insert number).
We have considered your forecast. It is considered that the Employer’s interests have been
adversely affected because
Either
you did not provide an early warning (in accordance with Clause 32 of the Contract)
Or
you failed to cooperate in dealing with this delay following the early warning in accordance with our
letter (insert date and reference number of our letter).
Therefore in accordance with clause 44 of the Contract

Either
you are not entitled to compensation for the event for the following reasons:
 Insert reasons
Or
you are entitled to compensation for the following elements of the event:
 Insert entitlement and justification
Yours faithfully

Company Name
cc UNRA

Address
Address
Address
Phone
Facsimile:
Date Guidance J16 Non Repayment of Advance

UNRA
Address
Address
Address
Dear Sir,
Full Project name

Re: Non Repayment of Advance
The Contractor has failed to repay the advance payment (state amount of advance xxx or
outstanding amount of advance if partially repaid) in accordance with the Contract requirements for
the following reasons:
 State reasons for example
 Progress on the Works is behind programme and it is considered that you will
not complete the Contract within xxx days of the Intended Completion date.
 The Contractor has stopped work on the contract for more than 28 calendar
days when no stoppage is shown on the current program and the stoppage is
not authorised.
 The Contractor is in breach of the Contract and the Employer has given notice
to terminate the Contract.
Therefore in accordance with the Contract we advise the Employer to exercise the Advance Payment
Security and seek repayment of the Advance, state amount of advance xxx (or outstanding amount
of advance if partially repaid) in accordance with the terms of the Security.
Please advise how we may assist in this process?
Yours faithfully

Company Name
cc Contractor

Address
Address
Address
Phone
Facsimile:
Date Guidance J17 Exercise Security following Contract Default

UNRA
Address
Address
Address
Dear Sir,
Full Project name

Re: Exercise Security following Contract Default
The Contractor has failed to meet his Contract Obligations. Fundamental breaches of Contract have
occurred as follows:
 State breaches of contract

Termination of the Contract is in process.
Therefore in accordance with the Contract we advise the Employer to exercise the Performance in
accordance with the terms of the Security.
Please advise how we may assist in this process?
Yours faithfully

Company Name
cc Contractor

Address
Address
Address
Phone
Facsimile:
Date Guidance J21 Contract Termination

UNRA
Address
Address
Address
Dear Sir,
Full Project name

Re: Contract Termination following Fundamental Breach of Contract
The Contractor has failed to meet his Contract Obligations. Fundamental breaches of Contract have
occurred as follows:
 State breaches of contract (give details of dates of letters and references
requesting the Contractor to address the breaches)

We have requested the Contractor to remedy the breaches of Contract. The Contractor has
responded as follows:
 (Insert summary of actions undertaken by the Contractor in response to these
letters)
We consider that the Contractor’s action are inadequate and that they will not complete the works
by the Intended Completion Date.
Therefore in accordance with Contract Clause 59 we advise the Employer to terminate the Contract.
Please advise if you wish to proceed to terminate the Contract.
Yours faithfully

Company Name
cc Contractor

P.O. Box 28487
Kampala Uganda
Date Guidance K1 Appointment of Adjudicator

Your reference
Contractor Name
Address
Address
Address
Dear Sir,
Full Project Name
Re: Appointment of Adjudicator
The Uganda Institution of Professional Engineers has appointed the following Adjudicator in the
event a dispute arises on the Contract.
(Inset details of appointed Adjudicator)
We would be grateful if you would confirm that you are content with the appointment of this
Adjudicator and that you are content to refer any dispute to the named Adjudicator in the event of
dispute arising in accordance with the Contract requirements.
Yours faithfully,
Name of Officer
Position

OCAM Section 1 UNRA Performance Appraisal System (PAS)
Guidance M1 Performance Indicator Guideline V1-1
UNRA PERFORMACE APPRAISAL SYSTEM (PAS)
GUIDELINE FOR OPERATIONS DIRECTORATE

Introduction
The UNRA Performance Appraisal System (PAS) is a simple tool for use in basic monitoring of the
performance of contractors and consultants engaged by UNRA for the implementation of Works
contracts. The system is an integral part of the UNRA contract management procedures – and should
be assigned equal standing to other contract management tasks such as the processing of IPC’s,
VO’s, Claims, etc
Separate modules are provided for use by Projects and Operations Directorates. This Guideline
describes the procedures to be used in Operations Directorate.
The key features of the PAS are summarised as follows:
a) It is simple to understand, easy to operate and not place additional burden on the parties
involved
b) It produces results that are meaningful and can be used by all parties (each party should get
some form of benefit from the system in return for their participation, input and efforts)
c) Assessments are made against Indicators (A simple unambiguous assertion or question
related to one aspect of performance, the response to which measures achievement using a
rating that can be verified)
d) Performance Assessments are open, transparent and objective
e) The system includes a grievance procedure through which an assessed party has the
opportunity to challenge an assessment if the rating is considered unreasonable.
f) Results of an assessment are signed off and agreed by all parties.
g) Assessments are conducted monthly in order to identify issues as soon as they arise, and
then agree suitable actions to overcome problems.
Integration of the PAS and Reporting

The PAS is linked to the UNRA Harmonised Reporting System 1, and summary results from the
monthly PAS assessment are included in the Progress Reports submitted by Supervision Consultants.
The two submissions would then be merged and incorporated into summary reports to be be
submitted to Monitoring & Evaluation Section for use in compiling outgoing reports to UNRA, GoU
and Funding Agencies.
1
The Harmonised Reporting System promotes consistency in Monthly Progress Reports from
Consultants and the Agenda (and Notes) of Monthly Progress Meetings and then systematically
generates outgoing Quarterly Reports using the standard referencing format.
Compiling the PAS Score Card

General
The assessment should be prepared in draft by the Project Manager during the first week of the
month following the reporting month. The draft will then be presented to the Contractor/Consultant
at the end of the monthly site meeting for review and agreement. In the event that individual
assessments are not agreed these should be discussed and each side will present their case for the
rating that is considered reasonable. If computer and printing facilities are available the agreed
assessment form should be printed and signed by both parties. The original is retained for the
Station file and a copy is issued to the contractor/consultant. If computer facilities are not available
the handwritten assessment form is signed by both parties to confirm agreement. The data will be
entered onto the UNRA system at the next opportunity and a copy of the agreed assessment
provided to the contractor.
It is important that an assessment is made against all Issues/Indicators.
Issue/Indicator Rating
Performance against each Indicator is assessed on the basis of achievement during the month using
a number of parameters. The table below provides guidance for the Station Engineer in the selection
of the appropriate Assessment Rating.
Assessment Achieveme Narrative Demand on UNRA Gradin

Score
Rating nt Level Description UNRA Time Intervention g
Always exceeds the
Administrati
Exceeds >90% Indicator without Minimal Blue 8
on
exception
Requires occasional
intervention by
Check
Acceptable 71-90% Station Engineer to Watch Green 6
periodically
maintain
compliance
Requires regular
Regular
intervention by
checking and Check and
Marginal 51-70% Station Engineer to Amber 3
follow up Alert
maintain
required
compliance
Performance is Significant URGENT
detrimental to additional intervention
Unacceptable < 50% Red 1
successful outcome work required required at
of contract of UNRA staff senior level
Not applicable
N/A n/a during the reporting n/a n/a n/a 0
period
The Achievement Level and Narrative Description are the primary determinants of the appropriate
Assessment Rating, and these should be considered in parallel. The Achievement Level provides a
quantitative measure of the level of compliance with the Indicator during the month. Narrative
Description provides a qualitative guide to the actual performance over the period.

Demand on UNRA Time provides a secondary determinant for use in selecting the appropriate
Assessment Rating, and indicates the level of UNRA support and follow up required against each
rating.
UNRA Intervention indicates the response required from UNRA against each rating.
Grading colours provide a fast visual presentation of results. Colours are automatically generated
using MS Excel Conditional Formatting.
Scores have been assigned to each Assessment Rating. These are not used in the current version of
the PAS, but will be developed in later updates of the system to allow aggregation of results and
further analysis of data.
The N/A Assessment Rating is an important option, the use of which is clear. It is important that this
be used where appropriate in order to avoid distortion of results that would arise if ‘nearest
approximation’ is used simply to complete the form.
Summary Performance
The system includes provision for generating a summary of monthly assessment ratings over the
duration of the contact. The summary is generated manually at this time, however it should be
produced systematically by the CMS when this is expanded.
Saving and Storing the Report Card

The PAS Score Card must be saved in the prescribed project folder to allow access for all users. A
separate main folder has been created under the UNRA P Drive as follows:
P:\MONTHLY PROGRESS REPORTS
with sub-folders 1. PROJECTS and 2. OPERATIONS
A separate file should be created for each contract by the Project Engineer following award, using
the UNRA contract number as the name, eg PR105, PR106, PR107, etc. The file is an Excel Workbook
that contains a separate tab for each monthly report card. The file should be set up with tabs
commencing on the first month of implementation and extending for the duration of the contract.
A typical file path for a storing the PAS Score Card for August 2013 is presented below for
illustration:
P:\MONTHLY PROGRESS REPORTS\1.PROJECTS\PAS SCORECARD\PR108\Aug 13
The Worksheet layout to be set up at the start of the contract is shown below:
Additional features for aggregating and/or combining progress and issues over multiple contracts
can be added quite easily by using simple spreadsheet techniques. For the time being however the
score card will be used in the basic format until the system is firmly established and producing the
desired outputs.
Further Development
When the Contract Management System (CMS) is fully developed, it will incorporate a user friendly
data entry interface that will allow straightforward capture of input of information, and then

generate the corresponding onscreen reporting, with a facility to export and/or print reports as
required.
Information and data input will be completed using a combination of drop down menus (for
contract, name, number, type, etc) and by direct type (for ratings).
Sample Formats
Sample formats for the basic PAS Score Card and the Summary are attached for reference.

UNRA PERFORMANCE APPRAISAL SYSTEM (PAS)

PERFORMANCE SCORE CARD
Contractor (Maintenance) November-13
Contract Name No
PAS No From ASSESSMENT
To ( Tick ONE box )
Unacceptable
Acceptable
Exceeds
Marginal
N/A
Ref Issue Indicator
71-90%
51-70%
< 50%
>90%
8 6 3 1 0
Staffing
S. 1 Adequacy Was the site agent sufficiently experienced to manage the
6
contract effectively?
Contract Management
M. 2 Works Was the programming sufficiently detailed to complete the
3
Programme works on time?
M. 3 Works Was the programme updated every 28 days?
6
Programme
M. 6 Insurances & Are the contractor's insurances and performance securities
3
Securities valid?
M. 7 Early Warnings Was the contractor proactive in identifying events or
circumstances that may adversely affect the quality, increase 6
the price or delay the execution of the works?
Resourcing
R. 1 Equipment Was equipment allocation satisfactory and managed
3
effectively in accordance with workplan?
R. 2 Labour Did the contractor have sufficient labour to meet the
6
workplan?
Financial
F. 1 IPC Processing Did the contractor submit monthly estimates of the value of
3
work executed?
F. 3 Records Were factual and accurate site records maintained?
1
Construction
C. 1 Procurement Were materials procured in sufficient time to meet the
3
workplan?
C. 2 Quality Was the work delivered to a satisfactory standard?
3
Assessment Prepared by: Summary Performance November-13
Name / Signature Totals 0 4 6 1 0

Position Staffing 0 1 0 0 0
Date Contract Management 0 2 2 0 0
Assessment Agreed by: Resourcing 0 1 1 0 0
Name / Signature Financial 0 0 1 1 0
Position Construction 0 0 2 0 0
Date Overall Performance 0% 36% 55% 9% 0%

UNRA PERFORMANCE APPRAISAL SYSTEM (PAS)

PERFORMANCE SCORE CARD - CUMULATIVE
Contractor (Maintenance)
Contract Name No
Contract Month No
Head Issue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Staffing
S. 1 Adequacy 6 6 6 6 6 6 6 6 6
Contract Management
M. 2 Works Programme 6 6 6 3 3 3 3 6 6
M. 3 Works Programme 6 6 3 3 3 3 1 1 1
M. 6 Insurances & Securities 6 6 6 6 6 6 6 3 3
M. 7 Early Warnings 0 0 0 0 0 0 1 1 1
Resourcing
R. 1 Equipment 3 3 3 3 6 6 6 6 3
R. 2 Labour 6 6 6 3 6 6 3 3 3
Financial
F. 1 IPC Processing 6 3 3 3 3 6 6 3 3
F. 3 Records 1 1 3 3 3 3 6 6 3
Construction
C. 1 Procurement 3 3 3 3 3 3 3 3 3
C. 2 Quality 6 6 6 6 3 3 3 6 3


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OCAM Section 1 Contents List

Summary of Contract Obligations 

Signed copy to be held by the Director of Operations.

Summary of Most Recent Revision:

30-01-14: Final Draft

Version 1.0: 30th January 2014 Page 1 of 4

Section 1 Administration of Term and Periodic Maintenance Contracts

Version 1.0: 30th January 2014 Page 2 of 4

Guidance B11 Key Personnel

Appendix 4 Guidance Tasks D, E, F and G

Appendix 5 Guidance Tasks I, J and K

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Guidance J8 Request for Extension of Time

Appendix 6 Guidance Tasks M

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Section 1 Administration of Term and Periodic Maintenance Contracts

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Section 1 Administration of Term and Periodic Maintenance Contracts

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A1 Confirm receipt of Performance Security from Contractor. Check

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B. PROJECT MANAGER Project Start Up Tasks

B8 Advise the Employer on receipt of satisfactory insurances.  L B8

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B. PROJECT MANAGER Project Start Up Tasks

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C9 Health and Safety Plan

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D1 Daily Site Diary

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G11 Compensation Events

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H2 Estimate of Expected Effect of the Event

H3 The estimate shall be provided by the Contractor as soon as

H4 Avoiding or Reducing the effect of the Event

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J. Remedy for Non Performance by the Contractor or the

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J. Remedy for Non Performance by the Contractor or the

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J. Remedy for Non Performance by the Contractor or the

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L1 The Employer or the Contractor may terminate the Contract if

L3 When either party to the Contract gives notice of a breach of

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L4 Notwithstanding the above, the Employer may terminate the

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Date Please quote No. UNRA/xx/xx/xx