: DOWER PoOweRCON Private Limited Company Sas TOC PAL TE POT PTA 7TVIC Yeka Sub City Woreda 09 HouseNoNew Tel. 0911-526656 Addis Ababa, Ethiopia Ref. No.: - DARP/02/1184/15 Date: -_21 January, 2023 To: - Ethiopian Road Administration Gondar Area Construction Projects Management Office Ref: -Dabat-Keraker-Ketema Nigus Road Project; Contract 1: - Dabat-Ajire Subject: - Unauthorized Rejection of Contractor's claim for Monthly Interim Payment Certificate Encl: - 04 page of attachments Dear Sir, Reference is made to our letter Ref. No. DARP/02/1177/15 dated on January 04, 2023 through which we submitted our application for Interim Payment Certificate No.43 to the Employer's representative office and Ref. No. DARP/02/1179/15 dated January 12, 2023 through which we were request the Employer for processing our claimed Interim Payment Certificate after noticing the Employer's Representative outlandish activity and response to our claim. However, after reviewing Employer's Representative determination of monthly interim payment No. 43, which is not notified and communicated to the Contractor in accordance with Sub-Clause 1.8 of General Condition of Contract, the Contractor requests for correction of unprofessionally and irresponsibly determined payment certificate findings which are presented as follows. 1. Payment For Dispute Review Expert (DRE) We would like to draw your attention to the dispute review expert contract Sub-Clause 9(7), which clearly quoted, “Payments to the DRE shall be shared equally by the Employer and the Contractor. The Contractor shall pay the DRE’s invoices within 30 calendar days after receipt of such invoices and shall invoice the Employer (thi the_monthls statements to be submitted) for one-half of the amounts of such invoices". However, the Employer's Representative deducts our claim from monthly interim payment No. 43 which contradicts the agreement reached by the parties and the Contractor request for the correction of the amount deducted. {Total Payment to the DRE | Half of DRE’s payment | VAT (15%) | Grand Total =a | ms 360,000 180,000 27,000 | 207,000 e\ y. Tel-251-011-869-64-96/251-0930-01-40-43- Fax. 251-011-869-64-82 * xs Page 1 of 4 MH a 42. Recommendation of the DRE on the Contractor's claim * DRE recommendation Page-2 paragraph one of the introduction parts indicate chat the Contractor had been granted a total of 750 calendar days of extension of time and the completion time of the works revised from October 09, 2019 to October 29, 2021. Besides, it clarifies the Contractor's claim Is for an additional cost that relates to the granted extension of time (from October 09, 2019, to October 29, 2021) rom paragraph three up to Paragraph six of the introduction part. From the above facts, it is clear that the DRE’s recommendation is for the entitled additional cost of the Contractor in relation to the granted 750 calendar days (24.7 months) of extension of time, which is from October 09, 2019 to October 29, 2021. * DRE also recommend that > The amount to be paid for the Contractor in relation to the continued provision of the permanent facility during the extended period = 12,223, 928.45 Birr (494,895.88 Bire/Month"24,7 Month) > The amount to be paid for the Contractor in relation to the continued provision of services and maintenances of the Employer's Representative facilities during the extended period =6,167,523.31 Birr (249,697.30 Birt/Month"24.7 Month) (Note: - the extended period is from October 09, 2019 to October 29, 2021) From the above facts, it is clear that the DRE recommend the amount to be paid for the Contractor for provision of permanent facility and maintenance of service based on monthly proportionated amount and the extended 24.7 months (October 09, 2019 to October 29, 2021). All the above facts indicate that the Employer's Representative interprets DRE's recommendation erroneously and therefore the Contractor request for the correction of the amount deducted from the claim on monthly interim payment No. 43 due to misunderstanding of the DRE’s recommendation. Claim Cost Category Recommendation of the DRE | VAT (15%) | Grand Total Continued services and maintenances 6.167,523.31 925,128.50 | 7,092,651.81 of the Employer's Representative facilities _ aes Page 2 of 43. Unauthorized Deduction from Work Item No. 2 Employer's Representative Facility The total amount of 3,980,494.85(Three Million Nine Hundred Eighty-Four Hundred Ninety-Four and 85/100), which were certified in the Previous Payment certificates, is deducted from our IPC No.43 without any justification and clarification. The Contractor is therefore request for the correction of unauthorized deduction form Work Item No.2 which is done intentionally to tempt the Contractor. 4. Correction of Executed Earth Drain Side Ditch quantity as per the Finalized Sub- Grade Sections Contractor's claim for the correction of executed quantity of Work Item 7.3.1 (Earth Drain Side Ditch), which was accepted and approved with the finalized Sub-Grade sections, is rejected in unauthorized way. The Contractor is therefore request to make proper correction for previously executed quantity of Work Item 7.3.1 (Earth Drain Side Ditch) as per Sub-Clause 13.6 of General Condition of Contract. (Please refer the attached tables for the remaining sub grade sections to be executed and total length of Finalized Earth Drain Side Ditch for Finalized Sub-Grade Section) Design Length of Earth Drain T 43.20 Km Remaining length of Sub Grade and Earth Drain to be| 5.90 Km Executed | | Executed Length of Sub Grade and Earth Drain (A) 37.29 Km | Considered Length of Earth Drain for Payment in the 32.77 Km | Previously Certified Payments(B) | Claimed Length of Previously Executed Earth Drain but not 4.52 Km | included in the Previous Certified Payments (C=A-B) | Claimed Amount for Previously Executed Earth Drain but | 847,478.40 Birr not included in the Previous Certified Payments | (D=C*187,460.58 Birr) Tel-251-011-869-64-96/251-0930-01-40-43- Fax. 251-011-869-64-82 Page 3 of 4Finally, the Contractor would like to request for the correction of erroneously determined interim payment certificate No.43 and for including the intitled amount for payment of claim in the interim payment certificate as per Sub-Clause 20.2 of General Condition of Contract. Besides, the Employer is expected to take corrective measure for the Employer's Representative unauthorized exercise in the project which significantly affect and hinder the progress of the work. With best regards, vt, me : sree outst a ne west Ma poet cc. > Powercon G.M Addis Ababa > Project file, Dabat ——$————————— Tel-251-011-869-64-96/251-0930-01-40-43- Fax. 251-011-869-64-82 Page 4 of 4Table-1:-The Remaining Sub-Grade Sections to be Executed Remaining Sub Grade Construction ‘From To engi 08+200 08-260 60. 094380 09600 220 (09+880 107220 340 10+780 10+880 100 107960 113200 240) 15+020 154380 360) 224400 224680 280) 244580 254020 440 274180 274720 540 294060 294220 160 344720 35+000 280) 357440 354860 420 364420 374660 1240 394200 40+040 840 424420 424560 140 42+680 424920 240 Total Length (meter)“Toble-2-Total Length of Executed Earth Drain Side Ditch for Finalized Sub-Grade Section Wor tems No.1 Bed DESCRIPTION TE Bork Dra ai arma | 244500 2avson_| 206060 aero) | 7 29e0 | pe 30.000 31-500 3000 40500 sen | 35.000 sea, S+460 36-000 Sram wereJauuersguies) kq pouursgya v Company POAT OTN ene joplan Road Ad ‘Gondar Area Construction Project Management ~ “Ref:-Dabat-Keraker-Ketema Nigus Road Projec Contract 1:- Dabe “Subject:~ Request for Processing our Clal 1ed Interim Payment Certificate Encl:-O1 page. e A. Dear Sir. @ refecence is mate to our letter Ref. No. DARP/O2N177/ dated on J: 1023 through “which we were submit our interim payment which claim for the value of ited ‘up to December 2022 and the claim ngs to Dispute Review Expert (DRE) recommendation. However, our dim cannot processed due to "ee 4 : See oe are toying to present in the Employer's Representative office, there Is no responsible person to cscuss about our claim and to reach contractuel agreement ‘Due to the absence of responsible person from the site, we are trying to com by phone call from our head office end from the ste to dlscuss about our clalm but not Interested to answer our phone cal Instead of contractual justification for our claim, the Employer's Representative gives personal decbion and not interested for dlscusion with the Contractor to reach contractual ‘agreement. ; rerefore fo notify the situation and request you for processing our claimed Interim certificate before our site work hindered as result of negligence and uncontractual approaches the Employer's Representative which leads to deleyance of the work due to Contractor’ ‘ash problem. With bast regards, Scanned by CamScanner