Agreement

Contract
2021

.ENGINEERING PLC.
Project

Design and Constructed by

Parametric creative studio
Project Location: Soresa Residence, Bole Bulbula,
Addis Ababa, Ethiopia

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CONTENTS

Agreement for the design and

01
construction work
Definition and Description of
the project agreement

02
Cost and Payments
Additional expenses
Mode of payment

03 Proforma invoice

01 - Agreement and Contract

The following will outline an agreement and summarize terms and conditions of the agreement.

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The agreement (here in after, together with the standard conditions and applications and all
the documents annexed here in called “The Agreement”)

The Agreement is made:

BETWEEN

Ato Yilkal Mengesha Workineh, represented by Wzo. Belyanesh Chekol Hunegnaw,

Here in after called “The CLIENT” on one part whose address is Bole Sub-city, Wereda 14, H.No.
6596 Phone number +251 911 218181, Addis Ababa, Ethiopia.

AND

Parametric design and construction service,

Here in after called “The designer and contractor” on the other part, whose address is Yeka
sub city Woreda 09 House No. 827/8, Addis Ababa Ethiopia, phone number +251 97 402 3870
or +251 93 303 2222

Whereas the client is desirous of obtaining design and construction service in a property
located at, Soresa Residence Apartments, Bole Bulbula, Addis Ababa, Ethiopia.

NOTE: The CLIENT can contact the contractor at any time for any insights, alternative ideas or
supervision. Additionally, any new ideas that are not specified in the agreement of project or
introduced after the work has started will have additional cost accordingly.

ARTICLE 1
OBJECT OF THE CONTRACT

1.1. The construction will be carried out in Soresa Residence Apartment, Bole Bulbula Addis
Ababa, Ethiopia, the CLIENT awards and the CONTRACTOR to perform design and
construction work at the Soresa Residence Apartment located on the six floor. as per the
agreed design to be presented and approved by the client.
1.2. For the purposes of this contract, the handover of the site, from the CLIENT to the
CONTRACTOR, is deemed to have been completed on the date of the signature of this
contract by both parties.

ARTICLE 2
VALUE OF THE WORKS

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2.1. The TOTAL LUMP SUM CONTRACT VALUE of the WORKS to be performed here under shall
be ETB 417,780 ETB (Four Hundred Seventeen Thousand Seven Hundred Eighty Birr). This
amount is determined on the basis of mutually agreed and required quantities, unit rate
prices that also include labor costs from the CONTRACTOR as indicated in the
CONTRACTOR’S priced bill of quantities.
2.2. All other taxes, duties and levies of any kind related to this project shall be borne by the
CONTRACTOR.
2.3. The TOTAL CONTRACT VALUE stated in sub-article 2.1 of this contract includes also
complete transportation of materials and labor to the WORKS execution site, the
acceptance and keeping material until installation and provisional acceptance of the facility
being constructed.
2.4. The CLIENT will not pay for any WORKS that have not been executed in accordance with
the description of the WORKS from the accepted offer, regardless of the degree of their
completion, unless corrected and completed in accordance with the exact description of
the WORKS.

ARTICLE 3
OBLIGATIONS OF THE CONTRACTOR

3.1. The CONTRACTOR shall provide all the necessary qualified and experienced labor, and shall
provide adequate equipment, machinery and all other material whether of temporary or
permanent nature required in and for such execution, maintenance and completion of the
WORKS. The CONTRACTOR designates MR. Yohannes Gelaye as a project manager.
3.2. The CONTRACTOR shall, with due care and diligence, execute and maintain the WORKS,
provide and pay for labor including the supervision thereof, and all other materials,
whether of a temporary or permanent nature, required in and for such execution,
maintenance and completion of the WORKS.
3.3. The CONTRACTOR is obliged, to observe that all the execution WORKS, as well as installed
materials hereunder are of required quality, in all respects according to the agreed terms
under this contract.
3.4. The CONTRACTOR is obliged to conduct all operations and activities concerning the
execution of WORKS in all respects according to the effective regulations governing the
subject matter of construction/repair of facilities according to the site situation of the
WORKS. The CLIENT shall bear no responsibility in case the CONTRACTOR fails to observe
the regulations.
3.5. The CONTRACTOR shall notify the CLIENT about any unforeseen circumstances and events
that may hinder the completion of WORKS within the set time schedule promptly in
writing, maximum within 48 hours from the moment of appearance of the unforeseen
circumstances and requesting an extension of time, as to consider the extension of time.
3.6. From the commencement of the WORKS until the provisional acceptance of the same by
the CLIENT, the CONTRACTOR is obliged to ensure all WORKS, materials, tools and
equipment from any possible damage or misappropriation. Otherwise, the CONTRACTOR
shall be liable for any damage caused by negligence or carelessness.

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3.7. The CONTRACTOR is at any time obligated, within the defect’s liability period, to promptly
remove all defects or irregularities on the completed WORKS at the CONTRACTOR’S own
expense, upon the first written request by the CLIENT.

ARTICLE 4
OBLIGATIONS OF THE CLIENT

4.1. The CLIENT shall, if required, genuinely attempt to deal with the local authorities and local
community to ensure access to the construction site for the CONTRACTOR. Should delay
occur due to the absence of access roads or a lack of permission to enter the construction
site, the CONTRACTOR shall be entitled to a time extension equal to the time lost. The
CLIENT shall not be deemed responsible for delays in access resulting from such
circumstances that may create obstacles towards the construction of access roads.
4.2. The CLIENT hereby appoints Wzo. Belyanesh Chekol Hunegnaw as its representative as
Supervisor who shall be responsible to inspect the WORKS and to give decision with regard
to the execution of the WORKS from time to time, thereby dealing with the CONTRACTOR
or his representative. The EMPLOYER shall notify the CONTRACTOR in writing concerning
any changes of its representative, whether permanent or temporary.
4.3. The CLIENT will not be deemed liable for compensation of damages, debt claim to any
person, regardless of how the damage had occurred if the CONTRACTOR suffers any
damage due to theft of material, tools and equipment.

ARTICLE 5
COMMENCEMENT, DELAYS AND LIQUIDATED DAMAGES

5.1. The CONTRACTOR shall start execution of the WORKS within 1 day of signing of the
contract.

5.2. The project duration shall be 35 working days from the initial commencement of execution
of the work/works.

5.3. The CONTRACTOR shall not be responsible for delays caused by Force Majeure or other
causes acceptable to the CLIENT. In such cases, the CONTRACTOR shall be entitled to
extension of time equal to the period lost due to such event.

ARTICLE 6
VARIATION ORDERS

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6.1. The CLIENT or CLIENT’S representative, may at any time or from time to time, give variation
orders in writing related to addition, deletions or revisions in the WORKS. The extra WORKS
will be measured on the basis of quantities from the measurement book, unit prices from
the CONTRACTOR’S Priced Bill of Quantities.

6.2. The CLIENT will not pay any extra WORKS that have not been approved in writing by the
CLIENT’S authorized person. This does not apply to the case of emergency, unforeseen
WORKS that must be undertaken to avoid damaging consequences to the WORKS or to
avoid the effect/consequences of Force Majeure, in which case apply the legal provisions
that stipulate the obligation of just compensation for performed necessary emergency and
unforeseen contingencies by the CONTRACTOR in favor of the CLIENT.

6.3. If a variation order results in an increase exceeding 20% (TWENTY PERCENT) of the total
Contract value, the CONTRACTOR shall have the right for time extension proportional to
the extra WORKS, while the contracted unit rates of the WORKS remain unchanged.

ARTICLE 7
QUALITY CONTROL OF WORKS

7.1. The CLIENT has the right and the obligation to supervise the CONTRACTOR’S work as well
as determine whether the CONTRACTOR observes the technical regulations and constraints
throughout the performance of the WORKS. The CLIENT is entitled to demand from the
CONTRACTOR during the progress of the WORKS to remedy within the shortest time
possible and at its own cost and eliminate any observed irregularities and consequences of
poor quality work, which cannot have any impact on the extension of time of completion of
the WORKS. In the case the CLIENT can halt any due payment until the CONTRACTOR
eliminates all the above-mentioned irregularities or deficiencies.

7.2. In the case that any defect is not corrected within fourteen (14) days of a written notice
from the CLIENT, the CLIENT has the right to correct the defect itself or via the engagement
of another contractor. In this case, the cost of the corrective works will be charged to the
CONTRACTOR and may thus be deducted from any payments made.

7.3. During the progress of the work, the CLIENT is entitled to demand the CONTRACTOR or
independently conduct an additional check on the quality of executed WORKS, material or
equipment.

7.4. The CLIENT has the right, during the progress of the work, to give the CONTRACTOR any
additional drawings or plans required for the proper execution of the WORKS. In case the
CONTRACTOR requires additional drawings and plans from the CLIENT, the CLIENTmust be
accordingly notified in writing.

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 ARTICLE 8
TERMINATION OF CONTRACT

8.1. Final completion of this Contract will be after the expiry of the defect’s liability period,
satisfactory completion of the WORKS and issuance of final acceptance certificate by the
CLIENT.

8.2. This Contract may prematurely be terminated, among other legally prescribed reasons, and
in the following cases:
a. If the CONTRACTOR and the CLIENT agree to cancel the Contract because both of them
are unable to perform their obligation under this Contract,
b. If there appear unforeseeable situations or force majeure that might interrupt or hinder
the achievement of the project deliverables or its execution,
c. If the CLIENT becomes bankrupt or goes into liquidation,
d. If the CONTRACTOR becomes bankrupt or goes into liquidation,
e. If it is clearly identified and proved by the CLIENT that the CONTRACTOR could not
perform according to the terms and conditions under this Contract.

ARTICLE 9
CONTRACT DOCUMENTS AND INTERPRETATION

9.1. The following documents shall be an integral part of this contract.

a. This Contract;
b. Specification of WORKS (BOQ);
c. Drawings, Revised and accepted Priced Bill of Quantities of the CONTRACTOR for the
total Contracted quantity of the WORKS;
d. All annexes under the provision of this Contract;
e. Any written notices and written agreements under the provision of this Contract;
f. Any other written documents required under the provision of this Contract.

9.2. Excerpt otherwise provided by the Contract; the provisions of this Contract shall prevail
over those of any other documents. But in case of ambiguities or discrepancies, the same
shall be explained and adjusted by mutual consent of the CLIENT and the CONTRACTOR.

ARTICLE 10
SETTLEMENT OF DISPUTES

10.1. Any dispute that may arise between the CLIENT and the CONTRACTOR regarding the
performance or non-performance of this Contract whether during the progress of the
work or after completion and whether before or after termination, shall be settled
amicably by both parties. If the dispute cannot be amicably settled by the parties, it shall
be submitted to the arbitration panel of three. Each party shall appoint one member for
the arbitration panel and the two arbitrators shall appoint an umpire. If the arbitrators do

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 not agree on the appointment of the umpire, the case will be referred to the court of law
for the court to appoint the umpire. The proceedings of the panel shall be conducted in
accordance of the dictates of the Ethiopian law. The decision of the arbitration panel shall
be final and not subject to appeal. It is therefore deemed that both parties to this
contract have willingly relinquished their rights of appeal.

ARTICLE 11
TIME CONTROL

11.1. Within seven (7) days of the signing of the Contract, the CONTRACTOR shall submit to the
CLIENT for approval a program showing the general methods, arrangements, order, and
timing for all the activities in the WORKS.
11.2. An updated program shall be a program showing the actual progress achieved on each
activity and the effect of the progress achieved on the timing of the remaining work,
including any changes to the sequence of the activities.
11.3. The CONTRACTOR shall submit to the CLIENT for approval and updated program at
intervals no longer than 2 days. If the CONTRACTOR does not submit an updated program
within this period, the CLIENT may withhold the amount stated in the Contract Data from
the next payment certificate and continue to withhold this amount under the next
payment after the date on which the overdue program has been submitted.
11.4. The CLIENT’S approval of the program shall not alter the CONTRACTOR’S obligations. The
CONTRACTOR may revise the program and submit it to the CLIENT again at any time. A
revised program shall show the effect of variations and compensation events.
11.5. The CLIENT may instruct the CONTRACTOR to delay the start or progress of any activity
within the WORKS.

02 - Cost and Payment

The client shall pay the design and construction service payment as outlined in the Proforma
Invoice in section 03 of this agreement. Payment to the design and construction shall be in
Ethiopian birr.

3.1. Additional expenses

In addition to the fixed fee the CLIENT shall pay, the CONTRACTOR all expenses in connection
with this contract:
3.1.1. any additional services which are not included on the agreement that will incur
additional cost.
3.1.2. In case of delayed payment, the CLIENT shall pay bank interest, at the prevailing rate, on
the defaulted amount.

3.2. Mode of payment

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The contract price as referred on the above grand total shall be paid by the CLIENT to the
CONTRACTOR in accordance with the following schedule.

For the design and construction service:

1. 40% of the total fee or 167,112.00 ETB, A partial payment upon signing of the contract
to deliver all the materials on the site and begin site assembling.
2. 30% of the total fee or 125,334.00 ETB A partial payment up on completion of 60% of
the design and construction work or on the start of finishing works
3. 20% of the total fee or 82,556.00 ETB, A partial payment upon completion of 90% of
the design and completion work
4. 10% of the total fee or 41,778.00 ETB, A Final payment upon handover of all work and
approved by the client or CLIENT’s representative upon delivering and completing
service, on CLIENT’S approval.

03 - Proforma Invoice
Number: 0025
Date: October 15, 2021
Client Name: Yilkal Mengesha Workineh; Sub city- Bole; Wereda 14; House No. 6596
Project Location: Soresa Residence Apartments, Six Floor, Bole Bulbula, Addis Ababa, Ethiopia
Proforma Validity: 30 Days

Design, Construction and Installation

Unit
Sub-total
No Item Unit Qty. price Remark
price (ETB)
(ETB)
1 Kitchen MDF sqm 7.12 7,500.00 53,400.00
2 Master bedroom closet sqm 10.2 7,000.00 71,400.00
3 Solid wood studs sqm 4.8 5,000.00 24,000.00
4 Bedroom 1 Closet sqm 4.32 7,000.00 30,240.00
5 Bedroom 2 Closet sqm 4.32 7,000.00 30,240.00
12,000.0
6 Doors pcs 9 108,000.00
0
Aluminum frame including glass
and accessories (Kitchen
7 sqm 5 9,000.00 45,000.00
window and guest/maid’s
bathroom.
Kitchen Granite top including 18,500.0
8 pcs 3 55,500.00
window seal 0

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The agreement enforces on date ___________________

IN WITNESS WHERE of the authorized representatives of the parties has set their respective
signature on the day and year written below.

On behalf of CLIENT

NAME________________________________ SIGNATURE___________________
DATE: __________________

On behalf of CONTRACTOR

NAME________________________________ SIGNATURE___________________
DATE: __________________

In the presence of
Name Signature Date
1. ____________________________ __________________ _________________

2. ____________________________ __________________ _________________

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