VARIATION WORK CONSTRUCTION AGREEMENT-1

This Agreement is made the ________ day of ___________________ Between HAWASSA

CITY ADMINISTRATION URBAN DEVELOPMENT & CONSTRUCTION
DEPARTMENT. (Here in after called & the employer). On the one part and TESFAYE
TSEGAYE GENERAL CONTRACTOR. (Here in after called & the contractor) of the other
part.
Whereas the Employer is desirous that contractor should execute that certain works, Via
VARIATION WORK indicated in Bill of quantities (Here in after called & the works). At
HAWASSA CITY ADMINISTRATION and has called drawing and speciation describing the
work to be done and Bill of quantities to be Prepared by SIDAMA NATIONAL REGIONAL
STATE HAWASSA CITY ADMINSTRATION CONSTRUCTION AUTHORITY . (Here
in after called & the Consulting Engineer) who is appointed to administer the contract in
accordance with stand Conditions of contract for the construction of civil works project.
Where as the contractor has agreed to undertake the construction works as per the terms and
conditions of the contract document enumerated in clause 2 below.
Now therefore, the parties agree as follows:

1. GENERAL PROVISIONS
A. In this Agreement words and expressions shall have the same meanings are respectively
assigned to them in STANDARD CONDITONS OF CONTRACT
respectively assigned in clause 2.below:

B. For the Consideration hereinafter mentioned the contractor will upon and subject to the
condition here to annex executes and completes the work shown up on the said drawings
and described or referred to in the said Bills of Quantities specification and the said
conditions.
2. CONTRACT DOCUMENTS
a. This agreement:
b. The Letter of Acceptance;
c. The Tender proposal of the contractor;
d. The said Tender;
e. The drawings;
f. Technical Specifications & Methods of Measurement, 1991;
g. Condition of contract;
h. Contract Date;
i. The Bill of Quantities;
j. The standard conditions of contract for the construction of civil works project
k. This instruction to bidders and special conditions;
l. Appendix to constrictions agreement Clause;
m. Schedule II & III of plant and labors;
Shall be known asThe Contract documents and represent the agreement between the Employer
and the contract and that there is no other agreement or another document relating to or in way
affecting this agreement at this stage and that the documents supersede all other agreements and
drawings prior to date hereof.

3. AGREEMENT CONSIDERATION
In consideration of the payment to be made by the EMPLOYER the CONTRACTOR here by
covenants with the EMPLOYER to execute and complete the works within 180 calendar days
and remedy any effects there in conformity in all respects with the provision of the contract and
the Employer here by covenants to pay the CONTRACTOR in consideration of execution and
completion of the works and remedy of defects there in the total contract price including value
added tax (VAT) of Birr 13,946,610.30 (Thirteen Million Nine Hundred Forty Six
Thousand Six Hundred Ten Birr & 30/100) at the terms and the manner prescribed by the
contract documents.
4. CONTRACT ADMINISTRATION
The Consulting Engineer who shall be dully delegated by the SIDAMA NATIONAL
REGIONAL STATE HAWASSA CITY ADMINSTRATION CONSTRUCTION
AUTHORITY shall be responsible for interpreting and administering the contract documents
Specified in article 2 here above and witnessed this agreement as hereunder.

5 .STATUS OF CONTRACT
It is agreed and understood that the said contract document shall be interpreted
according the Ethiopian Law and this agreement is deemed to be ADMINISTRATIVE
CONTRACT in accordance with Article 3132 of the civil code of ETHIOPIAN, 1996,
6. LANGUAGE OF CONTRACT
The language of contract is the English Language.
7. COME INTO FORCE
This Contract shall enter into force when the contractor submits the performance bond.
In WITNESS where of the parties here to have caused this Agreement to be executed the day and
year first above written.

________________________ ______________________
For the EMPLOYER For the CONTRACTOR

_______________________ _____________________
Authorized signatures Authorized signatures

Witnesses
Name Signature

1._______________________________ _______________
2. ______________________________ _______________
3. ______________________________ _______________
 APPENDIX TO THE CONSTRUCTION AGREEMMENT CLAUSE
Conditions of
Subject contract sub clause Clarification

Bid amount Birr

Definitions 1(1 ) The employer is HCAUDCD
Definitions 1( c ) The Engineer is SIDAMA NATIONAL
REGIONAL STATE HAWASSA CITY
ADMINSTRATION CONSTRUCTION
AUTHORITY.
Performance Security 58 The performance security will be in the from of
unconditional bank/ insurance guarantee in the
amount of ten (10%) of the contract price.
Power of the Engineer to 15.1 Conditions of Contract
make variations

Time for completion 72.2 90 calendar days (Only for this contract)

Limit for Liquidated 27.1 1/10000 per day (0.01% per day)
Damages.

Defects Liability period 88.7 As per the main contract

Percentage of retentions 61.1 5 percent of the Interim payment certificate

Amount of Advance 60(2) 30 Percent of the contract price (As per the client
request)