WORKS CONTRACT AGREEMENT

BETWEEN
M/S BUILDBASE CONTRACTORS LTD
AND
M/S RHCF UGANDA

SUB-CONTRACT FOR CONSTRUCTION OF A

BIODIGESTER ON A HIGHWAY PUBLIC

SANITATION AND HYGIENE FACILITY IN KIRUHURA DISTRICT)

This agreement made this 11thday of, August, 2019 between M/S BUILDBASE Contractors
Ltd of P.O Box 7525 Kampala (hereinafter “the main contractor”) of the one part; and M/S
RHCF Uganda (hereinafter “Labor contractor”) of the other part.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1) In this agreement, words and expressions shall have the same meaning as are
respectively signed to them in the contract referred to.
2) In consideration of the payments to be made by the Main Contractor to the labor-
contractor as indicated in this agreement, the Labor contractor hereby covenants with the
Main Contractor to execute and complete the works and remedy any defect therein in
conformity in all respects with the provisions of the contract.
3) The Main Contractor hereby covenants to pay the Labor contractor in consideration of the
execution and completion of the works and the remedying of defects therein the works.
4) The labor contractor shall deploy at least one key technical personnel on site with at least
a minimum of a diploma level in civil engineering with over 5years of experience.
5) The Labor contractor shall act as the assistant site engineer and shall deploy all technical
personnel on site. He will be responsible for the following duties during execution of the
project.
· Attend management and site meetings as shall be advised by the Project Manager
or his representative on site;
· Supervise the quality of materials and work on site and ensure compliance to the
technical specifications in the contract;
· Take material samples for quality control tests and ensure that results are on site
and ensure that all approvals are thought before work is done;
· Take progress photos on the physical progress of works;
· Mobilise all the key equipment required on site to execute his work (Accessories
shall be provided to him)
 · Ensure safety and behavior of workers on site and ensure safety of materials on
site;
· Preparing weekly reports to the project manager on the progress of work and
material usage.
· Ensure that all the workers on site have safety gears and comply with Health and
safety standards required.
6) Scope of works detailed hereunder
a) Finishing of the complex/main facility including landscaping, Electrical and
mechanical works,
b) Construction of toilet facilities (Male and Female) from setting out to painting
including electrical and mechanical works,
c) Construction and finishing of the perimeter wall, attendants house and Parking.
d) Sand blinding, compaction and laying of pavers to the required standard.
e) Construction of a water reservoir on site together with the main contractor, and
f) Construction of temporary structures and sanitary facilities on site.

(7) Payment terms

The contract is an admeasured and shall be payable in installments under the provisions
of the Contract stated below;
a) The contract sum is UGX 36,276,000/= (Thirty six million two hundred seventy six
million Uganda shillings) exclusive of VAT.
b) Advance payment of 5% will be released to the labor contractor upon full mobilization
on site.
c) All completed works shall be measured and checked by the Quantity surveyor and
approved by the Project Manager before payment is effected.
d) The first claim shall be presented to the main contractor when works reach 25% (Slab
level)
e) Payments to the labor contractor shall follow the payment schedule agreed upon
within every two weeks and at most 3 weeks. The payments shall be made on site.
f) Executed works will be measured by the main contractor within 5 days of invoicing by
the labor contractor. Payments shall only be effected when the Client or consultant
and our resident engineer have certified works done in writing.
g) Works shall be done within 6 months upon issuance of a commencement order from
the main contractor.
h) 1% of the contract price will be charged for any extra day beyond the contract period.
i) 5% of the contract sum shall be retained for 3 months for the Defects Liability Period
to ensure completeness and quality of the works done.
j) The labor contractors Agent/foreman will be charged Ush 100,000 per day he is not
on site and 50,000/= for each of his workers who is on site but not in full safety gear.
k) The labor contractor will be charged or deducted Ush 100,000/= per day he
constructs works without the approved foreman.
 l) The labor contractor will lose all his outstanding payments including a guarantee if he
abandons or terminates the contract prematurely without a 3months notice in
advance.
m) Works to be done to the required specified standards, in the event the labor
contractor fails to meet the required standards of any work, or fails to honor the
engineer’s instruction, he will do the corrections at his own cost.

(8) Termination of the Contract

The labor contract can be terminated by either party if any of the party breaches the contract
terms and conditions specified in this agreement.

This agreement can be terminated by either party if:

(a) The progress of work as determined by the main contractor is unreasonably behind
schedule that the labor contractor cannot bring back the contract on track,
(b) The Labor-contractor fails to supervise and construct works of the required quality,
(c) The labor contractor fails to deploy the required key personnel on site within 14days,
(d) If the site foreman is absent from site for 3 consecutive days without a written
permission from the Site Engineer,
(e) The labor- contractor fails to follow instructions of the main Contractor;
(f) The labor contractor fails to mobilize the required equipment for the works,
(g) The labor contractor fails to maintain the required number of personnel on site,
(h) The labor-contractor fails to execute work according to the technical specifications,
bill of quantities and drawings or as per the instructions of the Project Manager;
(i) The labor-contractor delays the works for more than 15 days without any cause of
delay;
(j) If the labor-contractor fails to commence works within 7 days without any cause of
delay,
(k) The labor-contractor fails to keep law and order on site. i.e. he fails to control his labor
force, workers cause a strike on site, workers steal company materials, and others;
(l) The labor-contractor is not paid his due payment for more than 60 days.

(9) Insurance

The labor-contractor shall take his own Insurance against Insurable risks and agrees to
defend and hold the main contractor harmless from and against any claim, liability or cost
(including legal cost) for bodily injury or death of the labour-contractor or his staff, such
occurring in the performance of the services under this contract.

(10) Arbitration
Upon termination of the contract, the Project Manager/main contractor shall instruct the labor
contractor to leave site immediately and all his workers. The main contractor shall assess the
value of works done by the labor contractor and pay him within 60 days failure of which he will
pay him interest at the current prevailing rate.

In case of any disagreement between both parties, the matter shall be referred to the
President Uganda Institution of Professional Engineers (UIPE) for arbitration or another
agreed upon arbitrator for amicable resolution. All disagreements shall be resolved and
settled amicably whatsoever; the case shall not be referred to courts of law.

IN WITNESS whereof the parties thereto have caused this Agreement to be executed in
accordance with the law specified in the Conditions of Contract on the day, month and year
indicated above.

Signed by the Said:

MANAGING DIRECTOR ENG. PATRICK K. SSEMBATYA,

PMP BUILDBASE CONTRACTORS LTD FOR MAIN CONTRACTOR

MANAGING DIRECTOR MR. KIBERU GEORGE

KRAFT CONSTRUCTION CO. LTD FOR LABOR- CONTRACTOR

In the presence of:

DIRECTOR ADMINISTRATION
BUILDBASE CONTRACTORS LTD HAJJ ABDUL KATAMBA
S. WITNESS