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CONTRACT REVIEW: -

CASE OF TILIKSEW
3B+G+20 MIXED USE
APARTMENT BUILDING &
SHORING WORKS

JANUARY 21, 2023


CONTRACT REVIEW: - CASE OF TILIKSEW 3B+G+20 MIXED USE APARTMENT BUILDING & SHORING WORKS

1. A. General Provisions
2. B. The Contract
3. Obligations of the Employer

GCC 27.1 a Liquidated damage shall be 0.1% of the total contract price for each day of delay until actual delivery or
performance.
27. Liquidated Damages

27.1 Except as provided under GCC Clause 18, if the Contractor fails to carry out any or all of the
Works within the period specified in the Contract, the Public Body may without prejudice to all its
other remedies under the Contract, deduct from the Contract Price, as liquidated damages the
following:

(a) A penalty of 0.1% or 1/1000 of the value of undelivered Service for each day of delay until
actual delivery or performance,

(b) The cumulative penalty to be paid by the Contractor shall not exceed 10% of the contract price

4. Obligations of the Contractor

GCC 34 ADD THE FOLLOWING AS CLAUSE 34.8


G. GENERAL ITEM

The Contractor shall provide all facilities described here under to the Engineer and
his staff and the Employer.

1. Office (for consultant & employee use) with furnishing and equipment like computer,
printer and office desk with chair.

2. Toilet with proper sewerage system.

3. Transport for the consultant and his staff with competent driver (4 wheel drive vehicle
in good condition with production year of 2020 or above)

4. Equipment & site safety accessories

5. Office secretary

Overtime Payment

The normal working hours of the consulting Engineer is from 8:30 A.M to 5:30 P.M
Monday through Friday and on Saturday 8:30A.M to 12:30 A.M. The contractor
shall pay the overtime expenses as per the local standard rates. The contractor also
provides the necessary transport facilities as required for the extra hours beyond the

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CONTRACT REVIEW: - CASE OF TILIKSEW 3B+G+20 MIXED USE APARTMENT BUILDING & SHORING WORKS

normal working hours.

If the contractor has failed to do so as said above or unable to comply his


obligation concerning the general items, the employer or the engineer is in a position
to accommodate the general items and the contractor is liable for his failure of in
complying the general items. Therefore, the expense incurred by the Engineer or
employer to full fill the general items should be repaid from any payments due to the
contractor.

The General Provision : all specified items shall be specified in the bill of quantities and
shall be refunded by the employer each month.

ADD THE FOLLOWING AS CLAUSE 34.9


 The contractor shall prepare weekly & monthly progress report with proper project
management dash board to the engineer.
GCC 34  The contractor shall be fully responsible for all damages that will occur to surrounding
land and structures during construction and excavation.
 The contractor shall submit Design for shoring work that is in line with the Quantity &
cost that is submitted as price offer by the contractor within 2 weeks of signing contract.
Preparation of reports to the employer shall be responsibility of the engineer but the contractor
shall provide any information and data requested by the client
The contractor shall not be liable for all damages (the design scope matters)

GCC 50.1 All demolition materials shall become the property of the Employer

Demolishing existing structure shall be depicted and priced in the BOQ

5. Payments to the Contractor


The amount of the advance payment shall be: 10% of the Contract price. the advance (10%) will be paid to
GCC 60.2
the contractor upon signing of contract .Delay in advance payment shall not be cause for delay of
commencement and shall not be considered as Compensation Events

The Contract is subject to price Escalation. Materials subject to price escalation shall be Cement & rebar.
Price escalation shall be calculated by multiplying the quantity of each material utilized by the price
GCC 62.7,
difference b/n the base price and current price at the time of purchasing. Base price and utilization quantity
62.13 & 62.1
of each material subject to escalation shall be annexed with this contract. If the contractor or client get
access to materials with lower price than the base price, then the same calculation shall apply & shall be

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CONTRACT REVIEW: - CASE OF TILIKSEW 3B+G+20 MIXED USE APARTMENT BUILDING & SHORING WORKS

deducted from the contract price. Price escalation shall only be considered for items inflating by more
than 20% of base price.
Not only cement, post tension works, fuel, sanitary and electrical works and devaluation of currency shall
be introduced

6. Performance of the Contract.

GCC 74.1(j) The following events shall also be Compensation Events: No additional events

The amount of the advance payment shall be: 10% of the Contract price. the advance (10%) will be paid to
GCC 60.2
the contractor upon signing of contract .Delay in advance payment shall not be cause for delay of
commencement and shall not be considered as Compensation Events

Clarification……. For both terms

7. Acceptance and Defects Liability


86. Partial Acceptance

86.1 The Public Body may make use of the various structures, parts of structures or sections of the
works forming part of the contract as and when they are completed. Any taking over of the structures,
parts of structures or sections of the works by the Public Body shall be preceded by their partial
provisional acceptance. However, works may in cases of urgency be taken over prior to acceptance
provided an inventory of outstanding work is drawn up by the Engineer and agreed to by the Contractor
and the Engineer beforehand. Once the Public Body has taken possession of a structure, a part thereof
or section of the works, the Contractor shall no longer be required to make good any damage resulting
otherwise than from faulty construction or workmanship.

86.2 The Engineer may, at the request of the Contractor and if the nature of the works so permits
proceeds with partial provisional acceptance, provided that the structures, parts of structures or
sections of the works are completed and suited to the use as described in the Contract.

86.3 In the cases of partial provisional acceptance referred to in GCC Sub-Clauses 86.1 and 86.2 the
Defects Liability Period provided for in GCC Clause 88 shall, unless the SCC provide otherwise, run as
from the date of such partial provisional acceptance

88.7 The defects liability shall be stipulated in the SCC. If the duration of the Defects Liability Period is
not specified, it shall be 365 days. The Defects Liability Period shall commence on the date of provisional
acceptance

APPENDIX TO THE CONSTRUCTION AGREEMENT


10
Minimum amount of interim payment First interim payment will be effected
after completion of sub structure

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CONTRACT REVIEW: - CASE OF TILIKSEW 3B+G+20 MIXED USE APARTMENT BUILDING & SHORING WORKS

work, remaining interim payment


shall be a minimum5% of the
contract price.
Shall not be 5% of the contractor

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