Contract for Construction of a Two Storey Building - Assignment Example

2.3 The Contractor will provide the necessary tools and materials for the completion of the required work. 2.4 The Contractor is responsible for providing transport for people, materials, and tools to and from the location. 2.5 The Contractor must keep all necessary related technical documents on the execution of the works up to date. 2.6 The Contractor is required to hire a minimum of 10% of unskilled labor from the village where the project is being completed. 2.7 The Contractor will install materials as described per the technical assessment carried out by MERCY CORP Engineers. 2.8 From the beginning of the execution of the works to the handing over of the works to MERCY CORPS, the Contractor is liable to insure and protect the executed works, equipment, and material against damages, decay, removal, and/or destruction. 2.9 The Contractor must allow MERCY CORPS complete access to the contracted location for monitoring and supervision of contracted works, at all times.

III TERMS FOR COMPLETION OF WORKS Article 3 3.1 The deadline for completion of all work in this job according to this Contract, is 1095 days after signing this Contract. 3.2 The Contractor may prolong the contract period in the case of Force Majeure. As used for his Contract, Force Majeure shall be considered acts of God, war (declared or not), invasion, revolution, uprising, and/or other events of a similar nature. 3.3 In the event of, and soon as possible after the occurrence of any event constituting Force Majeure, the Contractor shall give notice and full particulars of such occurrence in writing to MERCY CORPS.

On receipt of the notice required under this Article, MERCY CORPS shall take such action as, in its sole discretion; it considers appropriate or necessary in the circumstances, including the granting to the Contractor of a reasonable extension of time in which to perform its obligations hereunder. 3.4 If the Contractor is prevented permanently, wholly or in part, because of Force Majeure, to perform its obligations and meet its responsibilities hereunder, MERCY CORPS shall have the right to suspend or terminate the Contract by giving a three days notice. 3.5 The Work milestones will be completed as the following schedule: Materials (90 days) Construction work (2.5 years) Construction/ handicraft work (21/2years) Installation work (23/4 years) Restoration/clean-up of project site (After 3 years) Other work (After 3 years) IV.

PRICE AND PAYMENT SCHEDULE FOR CONTRACTED WORKS Article 4 4.1 The total price of the completed works is 3,125,000 (price in long-hand) USD. Number LOCATION Contracted Amount for Material USD Contracted Amount for Labor USD Total contracted Amount USD MCR/156td/8/2012 North Carolina 1,625,000 1,500,000 3,125,000 4.2 Payment, which will take place only upon presentation of valid project documentation for contracted works and approval by MERCY CORPS, will be made according to the following schedule: a.

20 (twenty) % of the contracted value within 1 (one) day of signing the contract b. 30 (thirty) % of contracted value upon 50 (fifty) % of contracted works c. 40 (forty) % of the contracted value after handing over of object. d. 10 (ten) % of contracted value three months after handing over of object. 4.3 All invoices shall bear the following references: a. The Contract Number b. Bank Wire Information c. Full Address of the Contractor d. An Invoice Number. 4.5 The invoice will be certified by the MERCY CORPS, to the effect that work has been completed in a timely and satisfactory manner. 4.6 The final payment for completed works will be made by MERCY CORPS to the contractor with the specifications and works specified after MERCY CORPS accepts the completed works.

The works are to be in accordance attached technical documentation and detailed in the contractor’s work diary. The payment will be made within 90 days after the contractor provided MERCY CORPS with a final invoice. 4.7 Agreements for work costs will be made in USD. The Contractor will be paid in USD using a bank transfer, or by the information provided by the Contractor. The Contractor is liable for all incurred bank transfer duties. V. VALIDITY OF THE CONTRACT Article 5 5.

1 This contract is valid on and from the date it is signed and stamped by MERCY CORPS and the Contractor. 5.2 Changes or modifications to this Contract can be made only by written agreement between the authorized representatives of the Contractor and MECY CORPS. VI. ACCEPTANCE OF CONTRACTED WORK Article 6 6.1 All works and materials are to be of quality/class satisfactory to MERCY CORPS and must be by all accepted/relevant standards. MERCY CORPS will monitor and supervise the contracted work. 6.2 Following the completion of the specified works, MERCY CORPS will accept the completed works from the Contractor. 6.3 During acceptance of completed works, MERCY CORPS is entitled to deposit a complaint.

If the Contractor does not eliminate the defects stated in the complaint, MERCY CORPS is entitled to keep back a proportional part of the total payment required for the elimination of the defects covered by the complaint. The amount shall be determined by MERCY CORPS. 6.4 Contract Security: Contractor shall furnish bonds covering the faithful performance of the Contract and the payment of all obligations related thereto and as required in the instructions to bidders or elsewhere in this Contract.

The amount of the bond should be 100% of the original contract price. Contractor shall grant to Owner a mortgage on certain property in North Carolina as set forth in Exhibit The mortgage shall secure the performance by the Contractor of all of the Contractor's obligations under this agreement including, but not limited to, completion of the work for the Contract's price; indemnification of Owner from claims as outlined in this agreement; Contractor's general guarantee of materials and workmanship, and any special or consequential damages to which Owner may be entitled as a result of a breach of this Contract by Contractor.

The mortgage shall further secure the payment of any award to the Owner under arbitration as provided herein. The contractor acknowledges that this mortgage is being accepted by the Owner instead of a conventional performance and payment bond with a commercial surety, as well as the Owner's agreement not to require retainage during construction. The contractor further acknowledges that the Owner has a limited ability to complete the Contract on its own in the event of the Contractor's default and that the Owner may freely assign the mortgage and any interests it may have as mortgagee.