Detailed content

1) Brief description of the project

2) The condition of the work

2.1 In terms of time

2.2 in terms of quality

3) Problems encountered during the work

4) The contractor's project execution
5) Summary and recommendation

5.1) About the contractor

1) Brief description of the project

The building that is being served by Bole Summit Mekanselim Medehanialem Church is narrow in terms
of the congregation used by the church. Therefore, it has been a long time since the church leaders as well
as the believers believed in the construction of a larger building that can serve the believers in a better
way than the existing church. According to this, when it is God's will, a contractor will be selected to
design the church, and after the design is completed, a contractor will be selected from among the
candidates and the construction work will begin. The technical committee has been working on the
construction of this church building since the design until now. The construction project is briefly
described as follows;
 The owner of the work: E/O/T/B/K Bola Summit Mkaneselim Be/Kristian
 The contractor taken by Wulen: Tesfaye Mekonon Building Contractor
 The consulting firm: Sey Consultants Pvt. Ltd
 Name of the project: Construction of Bola Summit Christian Church
 Date of signing: 24/05/2012
 Project start date: 29/05/2012
 Time allotted to complete the work: 1460 consecutive days
 Project completion date: 28/05/2016
 Elapsed time since the start of the project: 560 days
 Elapsed time from the start of the work to now in terms of the time given to complete the work:
38.36%
 The work done in terms of the total work: around 11%
 The price given by the contractor during the tender before the tender, without including the raw
materials needed for the work  before VAT 27,066,527.31 Birr  including VAT 31,126,506.41 Birr
 Since the contractor is the only company that meets the technical standards, if the price is agreed upon
based on the current market, excluding the raw materials needed for the work,  21,958,998.24 Birr
before VAT  25,252,847.97 Birr including VAT
 Advance payment paid: 500,000 Birr
 Other type: Paid according to the receipt made outside the supply of raw materials
2) The condition of the job

2.1 In terms of time

It is 560 days since the construction of the building church started, which is 38.36% of the total estimated
time, but the completed work is still around 11% of the total work. Therefore, it shows that the work done
in comparison to the time it was started has been greatly improved. Although there are various reasons for
the delay in the work (raw material supply problem, the consultant not providing the design on time,
sometimes delayed design improvements for example basement expansion work...), but mainly the
contractor has to prepare a work schedule and stop the work due to inappropriate minor reasons
Due to insufficient provision of the required experts and construction machines, the work has slowed
down. On the part of the contractor, in order to make the performance of the project better, when there is
a shortage of some raw material, he should stop working and wait for the missing material, so that the
project can be used now. During the construction of the project, the church* incurred additional costs due
to the rising cost of raw materials at the time.
2.2 In terms of quality
The construction of the church building is a type of shell structure, and it is a construction that should be
done with utmost care by preparing a working method before the work starts. However, it can be seen that
the contractor who is working now is following the procedure to increase the income by doing more work
than the quality of the work. For this reason, it has been done to maintain the quality level as much as
possible under the supervision of the advisory group and the technical committee.
Although the construction is timeless, the contractor's attention to quality does not match the project. As
the cost of the project, including raw materials, is approximately 100 million, the contractor has to
prepare his own workers to the extent required for the work, and he has to assign the work to other
workers to ensure that the work is of the desired quality. In addition to that, some of the employees
assigned by the organization are indifferent to the quality of the work and rather than accepting the ideas
given to maintain the quality of the work, they often prefer to oppose (for example, not accepting when it
is said to vibrate properly).
3) Problems encountered during the work
 Mainly because the contractor did not provide enough manpower and equipment for the work, as well
as not implementing the recommendations and orders from the technical committee and the consultant.
 When there is a quality problem, the contractor does not provide a solution
 Being unable to get enough money and raw materials from the faithful due to the epidemic and the
economic slowdown.
 Occasional failure to submit dozens of documents on time by the consultant.
 The condition in which the contractor monitors (does) the work is not appropriate in terms of the size
of the project.
 The developer's unwillingness to accept and implement the proposals given by the church building
contractor and technical committee, for example, regarding the method of operation, quality, and the
work done separately.
4) The contractor's project execution

The project is currently 38.36% of the time that has elapsed since the start of the work, and the completed
work is about 11% of the total work. This clearly shows the delay in the work. Reasons that cause the
contractor to take responsibility for the delay in the work;

1) Not assigning qualified and necessary professionals on a foreign basis; As a result, when a job is
stopped due to raw materials, it is possible to find alternative jobs and make a solution to stop the job.
2) Having to do the work on the work list according to the existing procedures and quality standards,
while doing it arbitrarily, there is wasted time when correcting the work.
3) Since the construction is out of date and the contractor's attention to quality is weak, the supervisor
must be present to start the work, and time is wasted due to his absence.
4) The contractor does not receive professional work orders and implement them in time
5) The lack of commitment of the contractor and the consultant to work and perform the work according
to the work plan; Not this, but because of his absence, the work will be damaged when he can afford it.
6) The contractor failed to present the updated work schedule to the consultant for approval. When work
is not being carried out according to the schedule, instead of working on other tasks, the contractor should
inform the consultant that work was not completed due to supply issues.
5) Summary

5.1) About the contractor

Although the current problem of building the church is a hindrance to make the church work efficiently, it
is appropriate to design and work on a good operating system to use the resources we have (we will get)
effectively. However, in the current situation, the contractor's procedure is problematic, for example;
• The fact that there are many goals in the workplace, not what is close, but what is missing, and the
workplace is crowded with goals, which does not encourage the believers to bring more goals.
• Due to not providing the necessary manpower and machines for the work, he made the work to be more
efficient in terms of speed and quality.
• Having a problem with preparing and working a procedure suitable for the job; Although the contractor
has been asked to submit the work, there is no procedure that has been submitted at the Meredith level.
• Taking criticisms of the work given by the professional, instead of correcting the work, not being ready
to improve by saying why it is called like this, and even worse, creating a conflict in the workplace with
the person who gives the opinion (this type of problem has been seen repeatedly on the site).
• Without the knowledge and approval of the owner and the consultant, the work, for example, the work
of the dengai tower, the work of soil compaction, the full work of the reinforcement, etc., was the reason
for the work to be done with the desired quality due to the fact that the work was done without sufficient
supervision. Although the contract document states that the placement of a part-time worker must be with
the consent of the consultant and employer.
• When the contractor said that we can provide the construction work on this day, but due to the lack of
commitment to deliver the work on the specified day, for example, we will neglect to provide the
construction work on this day. Let the devotees who supply raw materials be encouraged. This may cause
problems with supply

The structural work of the above-ground church building requires more professional supervision.
However, the contractor has the problem of maintaining professional working methods for each job, as
well as accepting the professional opinions given by talking to the consulting organization and the
technical committees.
For the issues listed above, the technical committee put pressure on both the consultant and the contractor
to ensure that the documents, especially the advance payment and performance guarantees, are submitted
in a legal manner; We were able to understand that the first payment as well as the advance payment were
made without the submission of the said guarantees;
Submitted by the consultant in a letter dated November 10/2 ዏ 13 A.D. with number SAY/147/2012 to
contractor number two payment document proving that the remaining advance payment refund amount
should be fully refunded as well as a performance guarantee from Africa Insurance Bola/Yeka branch
with Bond Number: P/12/1702/21-22/1/00001 prepared by Mile Telekwale.
However, the consultant did not confirm the legality of the performance guarantee; when the technical
committee and the colleagues of the district went to the main and branch offices of the insurance
company and asked the officials concerned, serious doubts were raised about the legality of the document.
Therefore, in order to know the matter correctly and to confirm it in writing, on the date of 20/12/2013, in
the number of S/M/S/D/A/2589/13, the district administration requested an explanation to the insurance
branch office, and in response, on the date "August 26, 2021" in the number "AIC/0032/BY" /21" Work
Performance Guarantee We have explained that the work performance guarantee mentioned in Bond
Number: P/12/1702/21-22/1/00001 from Africa Insurance Bola/Yeka branch is not legal.
Therefore, when the contractor was asked to make operational adjustments at different times, he did not
show commitment to the implementation; Since this contractor's work above ground can cause serious
problems for the work; What's more, the consultants who are participating in this project beyond
themselves by bringing documents that have no legality and can lead to dangerous criminal acts and court
cases; As we have found that the employer and the technical committees as well as this will put the
administration of the parish in unnecessary confusion and liability, and in addition, as we understand that
the execution of our building church project has been jeopardized in terms of documents and work
quality, as a technical committee, the decision to terminate the contract of the contractor without any prior
conditions is necessary if the advice of the advisory council as well as the congregation is needed. If it is
decided to be included, we will respectfully inform you that it will be difficult for us to work with the
contractor.
Furthermore, we would like to point out that following the decision of the council, we are preparing
options for the future operation of the project.
Appendix: ____ page
Decision of the Board of Directors.
Sei Consultants Pvt.

A report prepared on the performance of the contractor

September 2014

Introduction
Bole Summit Mekanselam Dorohaalem Beth Christian has been building a church building since January
24, 2012 under the contractorship of Tesfaye Mekonon Building Contractor and the consulting work of
Sey Consultants. Although orders were given regarding the work performance of the contractor at various
times through letters, meetings and the site book, the contractor failed to show this improved work
performance. Manpower, machinery supply are major contributors to the lack of speed and quality of
work. Based on the repeated discussions and meetings held by the consultant and the technical committee
of the church, it was found necessary to prepare the contractor's work performance in a supporting
document so that the church can take steps to terminate the contract. Accordingly, we do not believe that
the performance of the contractor qualifies for the job in terms of the quality of work, supply of resources
and professional competence required for the construction of the building church. To explain this, we
have prepared and presented the points listed below based on the contractor's performance so far.

1. List of contract amount and duration

591 days after the construction of the building church started, that is 40.48% (40.48 percent) of the total
time that was supposed to be completed, but the completed work is 11.61% (11.61 percent) of the total
work. Therefore, compared to the time it was started, it shows that the work is very late.
Contract size
The main contract amount is 21,958,998.24 Birr excluding VAT
There is no contract
There are no job change orders
Contract period
Work started on January 24-2012
Contract period 1460 days
Contract expires January 23-2016
Working hours information
The amount of elapsed time is 591 days
Elapsed Time Percentage (40.48%)
Work performance
Work Done Percentage 11.61%
Work performance percentage compared to the schedule submitted by the contractor on 02/10/2012
65.05%
Work performance percentage compared to the schedule submitted by the contractor on 03/02/2013
46.30%
Work performance percentage compared to the schedule submitted by the contractor on 16/10/2013
19.50%

According to Article GCC 27.3 (The period between program updates is 45 calendar days) of the Special
Agreement, the contractor shall submit a revised work program within 45 days. However, the contractor
was not doing this and the work performance was presented as follows in terms of the work schedules
submitted by the contractor at different times.
 According to the work program submitted by the contractor on 02/10/2013, the work performance
should have reached 65.05% (65.05 percent) and the estimated amount is Birr 14,285,192.76 (fourteen
million two hundred eighty five thousand one hundred ninety two Birr and seventy six cents). In terms of
performance, it shows that it is delayed by 53.44% (53.44 percent). This indicates that the contractor's
performance is low when calculated in terms of Birr 11,685,192.76 (Eleven Million Six Hundred Eighty
Five Thousand One Hundred Ninety Two Birr and Seventy Six Cents).
 According to the work program submitted by the contractor on 03/02/2013, the work performance
should have reached 46.30% (46.30 percent), and the estimated amount is Birr 10,167,244.16 (ten
million, one hundred and sixty-seven thousand, two hundred and forty-four Birr and sixteen cents). It
shows that it is delayed by 34.7% (34.7 percent) in terms of the existing work performance. This indicates
that the contractor's performance is low when calculated in terms of Birr 7,567,244.16 (seven million five
hundred sixty seven thousand two hundred forty four Birr and sixteen cents).
 According to the last work schedule submitted by the contractor on 16/10/2013, it shows that the
current contractor's work performance should have been 19.5% (19.5 percent) of the total work volume.
This means that the contractor currently has to do work amounting to Birr 4,280,075.2 (birr four million
two hundred eighty thousand seventy five two cents). However, the contractor has done 11.61% (11.61
percent) which is 2,600,000.00 Birr (two million six hundred thousand Birr) and it can be understood that
there is a delay of 7.7% (7.7 percent) in terms of the work schedule.
There are various reasons for the above delays, including resource availability, the Corona epidemic, and
design changes. However, the contractor's professional competence and level, non-delivery of the
expected resource supplies from the contractor, incompleteness of machinery, non-performance of side-
by-side works, poor quality of paperwork and non-delivery will take the biggest part in the delay.

2. The list of experts that the contractor is required to provide

In the special contract agreement article GCC. 9.1 (The schedule of key personnel is part of this contract.
The contractor is responsible to assign a full time site engineer on site throughout the project period.
Option One: BSc degree in civil engineering with minimum six years of general work experience
• Minimum four years of experience on building construction as a site engineer.
Option Two: MSc degree in structural engineering or construction project management with
minimum four years of general experience.
• Minimum three years of experience on building construction as a site engineer.)
The qualification level and number of experts to be assigned to the contractor site is specified. Also, in
the bidding document, part 1 of the bidding list, sub-section 3 of the bidder's evaluation method and
criteria (Part 1: Bidding Procedures Section 3: Evaluation Methodology and Criteria 2.2. Personnel for
Key positions:)
No
position
Qualification Total work experience Experience in similar works

1
Project Manager Bsc. In Civil Engineering or Equivalent
6
3

2
Site Engineer Diploma In Building Engineering
4
2

3
Office Engineer Diploma In Building Engineering
4
2

4
General Foreman Diploma in Construction Technologies or Equivalent
4
3
5 Surveyor Diploma in Surveying 4 2
6 Carpenter Foreman Grade 12 or 10 Complete 10 3

It lists the number of professionals and qualification criteria that the contractor must meet. However, on
the part of the contractor, he is working by assigning a site engineer and an occasional foreman to the site
in a way that does not meet the above requirements. This has created a performance gap of its own.

3. Machinery supplies to be provided by the contractor

The machinery supplies that the contractor must provide for work applications are listed in the bidding
document, Part 1: Bidding Procedure Section 3: Evaluation Methodology and Criteria 3.5. Equipment for
the Implementation of the Contract: .
No. Equipment type and characteristics Minimum Number Required
1 Dump Truck 12m3 & above 02
2 Concrete Mixer 750ml 01
3 Excavator 0.25m3 & above 01
4 Loader 2.5m3 & above 01
5 Roller with Vibrator capacity 5-8ton. 01
6 Pickup 01
7 Total Station 01
8 Vibrator 03

We confirm that the contractor will not supply construction machinery as stated above. If a small
reinforced concrete mixer is used for rent, the failure of the concrete machinery, the failure of the
vibrator, and the insufficient number of plywood or steel formwork have contributed to the performance
of the work. This has caused its own problems in the performance and quality of work.

4. The amount of work that the contractor can subcontract

Article GCC of the employment contract. According to 7.1 (The Contractor can sub contract maximum of
20% of the total contract amount value with the approval of the engineer and the client), the contractor
may subcontract 20% of the total amount of work by taking the approval of the consultant and the
employer. He says he can. However, it is known that the contractor will do the reinforcement work, stone
wall work in full, as well as reinforcement filling and best soil work by subcontracting part of it. This way
of working has led to quality problems, especially in steel work, fine soil filling and reinforcement work.
Attached below are site images that indicate this.
5. Guarantee documents expected from the contractor
In the special agreement, Article GCC 51.1 (Advance payment an amount of 300,000.00 (three hundred
thousand) birr and will be paid to the contractor up on the submission of unconditional bank guarantee.)
which means that the contractor must provide a guarantee prepared on behalf of the church when
receiving advance payment. He mentions. In addition, Article 52 of the General Terms and Conditions
related to the Special Agreement. Securities
52.1. The Contract security shall be provided to the Employer no later than 15 days after receipt of the
Letter of Acceptance and shall be issued in the form of a Bank Guarantee, or for Ethiopian Contractors
only in the form of Performance Bond. The Contract Security shall be issued in the format specified in the
contract and in an amount specified in the Special Condition of Contract and by a bank or surety
acceptable to the Employer and denominated in Ethiopian birr. The Contract Security shall be valid until
a date 28 days from the date of issue of the Certificate of Completion in the case of Bank Guarantee and
until one year from the date of issue of the Certificate of Completion in the case of a Performance Bond.
Following this, he was asked in meetings and letters to confirm the submission of the guarantee document
called the contractor, but he could not fulfill it. According to the letter written from the consulting office
to the contractor regarding advance payment and performance guarantee, the contractor submitted a
performance guarantee from Africa Insurance and the said guarantee document was not issued by Africa
Insurance. On 17/12/2013, the contractor made an advance payment and performance guarantee from
Nile Insurance and submitted it to the consultant to change the one provided by Africa Insurance.
According to the letter that the church wrote to Africa Insurance regarding the work performance
guarantee given by Africa Insurance, Africa Insurance sent an explanation to the church on 26/08/2021
i.e. on 20/12/2013. Based on this explanation, the work performance guarantee was given, but the
contractor asked for a pre-payment guarantee in addition to the work performance guarantee, and when it
was revealed to him that this could not be given by the insurance company, the company gave up the
guarantee verbally saying that he would take out the guarantee from another insurance company. .
Following this, the church mentioned in a letter that it would be difficult to pay the contractor. Indeed, it
is true that it will be difficult to pay the contractor when the securities provided by the contractor are
questionable. The contractor obtained performance and advance payment guarantee from Abai Insurance
and submitted it to the consultant on 17/12/2013. The consultant received a confirmation letter from the
insurance company based on his request for a confirmation letter from the selling insurance company
regarding the collateral documents provided by Abai Insurance. This gap created in the guarantee
document has made the contractor not have confidence in the performance of the work.
Also attached are the warning letters issued by the consultant to the contractor at different times and the
church to take action against the contractor due to the unsatisfactory performance of the contractor.
 Summary
It can be understood that the contractor's procedural errors mentioned in detail above have their own
contribution to the quality and speed of the work. In addition to this, it was confirmed by the consultant
and the technical committee of the church that the work method the contractor intended to follow was not
suitable for the work. From the perspective of the complexity of the dome works that await us in the
future, the level of quality they require and the ability of experts to understand, it is an indication that the
lack of competence of the contractor will have its own negative impact on the work. The security
documents that have been submitted will put the consultant, the technical committee and all the parties
involved in the construction of this building into unnecessary failure, and the risk that it may cause to the
church is high. We suggest that the church should take into account the supporting evidence presented
above and consider other options for the future success of the work.