Contractor’s agreement

City: Tbilisi 6.12.2023

(Place of concluding a contract) (Date of concluding contract)

The Parties

Client: Ucha Dzimistarishvili (ID Number: 01011087745)

Contractor: LTD “Chokoraia’s Builders” (C/N 123456789) representative director Konstantine

Chokoraia

The parties are guided by the powers granted by the Civil Code of Georgia and enter into the
Contractor’s Agreement accordingly.

1. Subject of the Agreement

1.1 Under the terms of the agreement, the parties undertake obligations. The customer
places an order, and the contractor takes responsibility for the construction of a
commercial space, which will be used as a fast-food restaurant. The construction of
the space will be carried out on the land plot owned by the customer: Tbilisi City,
Tskneti, Tamar Mefe Street 15. Plot area - 1500 sq/m.
1.2 The permit for construction on the said plot of land has been issued, and the project
has been approved.
1.3 The contractor must hand over the commercial premises to the customer in a white
frame condition, which means that at the time of handover, the customer will only
have to carry out an inventory.
1.4 The contractor also carries out veranda landscaping works.
1.5 The area of the commercial space to be built is 1200 sq/m.

2. The price of the contract and the method of payment

2.1 The cost of the services provided in the contract is 571,000 (five hundred and
seventy-one thousand) US dollars (equivalent in GEL) including VAT. The cost of
construction materials is also included in the mentioned amount.
2.2 The payment for the performed work will be divided into two parts after the
contractor submits an act confirming the work’s authenticity for the first payment
stage and the appropriateness of the expenses.
3. Rights and obligations of the parties
3.1 The rights and obligations of the parties are determined by the mentioned agreement
and the law of Georgia.
3.2 The parties undertake to comply with the legislation in force in Georgia, as well as
the conditions defined in the contract.
3.3 The contractor is obliged to:
3.3.1 Fulfill the obligations assigned to him under this agreement promptly, at the
agreed time, and within the term.
3.3.2 Inform the customer promptly in case of any technical faults.
3.3.3 Ensure the purchase and transportation of necessary materials for the performance
of work at his own expense.
3.3.4 Be responsible for the actions of the people who are under his authority, that is,
the people who carry out the construction procedures.
3.3.5 Compensate the damage caused to third parties if any object is damaged or delayed
during construction outside the construction area.
3.3.6 Provide information related to construction stages to the customer and his
representatives.
3.3.7 Carry out the construction in compliance with all construction standards, without
violating the provisions of the Labor Code of Georgia.
3.3.8 Hand over the work that is materially and legally perfect to the customer.
3.3.9 If the delivery of the object exceeds the set deadline, the contractor will be
charged a penalty - 0.7% of the compensation for each day that is overdue.
3.4 The contractor has the right to:
3.4.1 Request the customer to fulfill the obligation in full and on time.
3.5 The customer is obliged to:
3.5.1 Fulfill the obligations assigned to him under this agreement promptly, at the
agreed time, and within the term.
3.5.2 Pay compensation on time.
3.5.3 Provide the contractor with the necessary information for the work in
documentary form.
3.5.4 Take care to eliminate any technical faults promptly after receiving information
about them.
3.6 The customer has the right to:
3.6.1 At any time, check the construction process personally or through his
representative, give instructions, and if corrections are necessary, take appropriate
action promptly.
3.6.2 Demand timely and accurate performance.
4. The rule of receiving and handing over the construction
4.1 The constructor and the contractor confirm the completion of each specific amount of
work by signing the intermediate acceptance-handover act. After the completion of
the works, the final acceptance and handover act will be signed.

5. The duration of the contract and the conditions for its termination
5.1 The Agreement is effective from the moment of its signing and remains valid until
January 1, 2024.
5.2 The completed work must be submitted no later than December 31, 2023.
5.3 The parties have the option to terminate the agreement prematurely.
5.4 The customer can provide advance notice of termination to the other party, with the
notification given no later than one month prior. The reason for termination may be
the systematic violation of contractual obligations.
5.5 If the construction is suspended by the customer at any stage of the works for a period
extending to one month, the contractor may request an additional fee.
5.6 The contract may be terminated by written agreement of the parties.

6. Responsibilities of the parties

6.1 In the event of damage caused using materials of inappropriate quality by the
contractor, the responsibility for repairing the work is directly transferred to the
contractor.
6.2 The contractor bears responsibility even if the employee, worker, or other person
hired by them does not perform the work properly and conscientiously due to
insufficient qualifications.
6.3 The parties are obligated to compensate each other for losses caused by their non-
fulfillment or improper fulfillment of the agreement, as stipulated by the law,
agreement itself, and/or other related agreements.
6.4 If during the fulfillment of the agreement, the contractor causes damage to the
customer’s property, the customer can request payment of a fine equal to the market
value of the affected property or request the contractor to repair the damaged
property on their own expense.
 7. Force majeure
7.1 The parties are released from fulfilling their obligations in the event of
insurmountable force majeure circumstances, such as war, fire, epidemic, natural
disasters, or coup d'état, which prevent or make it impossible for the parties to
exercise their rights and obligations under the contract.
7.2 The parties are obliged to inform each other about the existence of force majeure
circumstances within 24 hours after their occurrence. The existence of force majeure
circumstances must be certified by the relevant competent authority.

8. Dispute resolution
8.1 Any disputes or disagreements arising between the parties within the framework of
the above-mentioned agreement shall be resolved based on mutual agreement.
8.2 If the parties can not reach an agreement within 10 (ten) calendar days, the dispute
will be referred to the court for review and final decision. The decision made by the
first instance will be binding for enforcement.

9. Final provisions
9.1 The contract is based on the law of Georgia. The legislation of Georgia applies to any
relations arising on its basis.
9.2 Verbal negotiations have no legal force.
9.3 The parties shall notify immediately of any technical, formal, or other changes.
9.4 The contract has two copies with equal legal force.
9.5 The obligations under the agreement apply to successors, trustees, and
representatives.

10. Requisites of parties

Customer: Ucha Dzimistarishvili (ID Number: 01011087745)

Signature:

Contractor: LTD “Chokoraia’s Builders” (C/N 123456789)

Director: Konstantine Chokoraia

Signature: