CONTRACT FOR WORKS

The agreement is made between ........................................ (Herein called ‘the Client')of the one part and Value Engineering Construction (Herein called ‘the Contractor) represented by Adama Samba of the other part. WHEREAS The Client and the Contractor are desirous of entering into a contract regarding which the following agreement is hereinafter entered into.

NOW THIS AGREEMENT IS AS FOLLOWS:

CHAPTER 1 - GENERAL PROVISIONS

Article 1: Description of the contract

This contract is for the construction of a .............................................................................

Article 2: Location of Works

The works are located in ....................................................................................................

Article 3: Type of Contact

This contract is for a fixed, non-adjustable price of Euro ............................................

Article 4: Contract Documents

The following are the contract documents, in order of priority:

- the overall price breakdown, with reference to the schedule of unit prices and the bill of quantities;

- the special technical specifications;

- drawings and designs.

- timetable.

CHAPTER 11 - EXECUTION OF WORKS

Article 5: Commencement of works

The handing over of the site to the contractor shall consitute an implicit order to commence the works. The work shall commence on the ………... of ....................................... 

Article 6: Timetable and completion date

No later than 7 calendar days following signature of the contract, the contractor shall furnish to the Client a proposed timetable and a detailed works organization chart. The completion date shall be............ months (….........................................) following the commencement of works.

Article 7: (Extra) Documents

Any extra documents deemed relevant shall be made available to the contractor. All documents that are needed will be arranged by the contractor.

Article 8: Drawings

A full set of working drawings shall be provided by the contractor.

Article 9: Quality of Works

The works shall be of excellent quality, conforming in all aspects to acceptable standards, free from any defects, and in conformity with the plans and specifications. Guarantee for 1 year for floor, walls ceiling and roof and all windows doors and sanitary fittings.

Article 10: Orders

The Client or his representative ‘..........................................' shall alone be authorized to issue orders to the contractor.

Article 11: Labour

In its labour relations, the contractor shall be subject to the regulations in force in The Gambia at the time the works are performed, in particular the Labour Laws.

Article 12: Provisional Acceptance

The contractor shall notify the client at least 15 working days prior to the date on which the works are to be completed. The client shall then invite the contractor or his nominee to the acceptance proceedings, which should take place as soon as possible. The verifications performed shall determine whether the works are fully or only partially completed, and shall identify any defects or faults. The client shall prepare a certificate that he shall sign together with the contractor

Article 13: Defects Liability Period and Final Acceptance

The defects liability period shall run for 1 year or through the first rainy season from the date of provisional acceptance or till the end of one rainy season whichever is longer. During that period, the contractor shall be formally placed on notice by the client to execute the works required under guarantee. In the event of refusal or non-compliance, The client shall be automatically entitled to execute the work still to be done and to withhold from the contractor's guarantee all sums necessary for reimbursement of the expenses incurred. Final acceptance shall be declared at the end of the defects liability period in the form of an official report sent to the contractor.

CHAPTER 111 - FINANCIAL PROVISIONS

Article 14: Payment plan

The total amount of this contract is ..................................................

•  30 % on signing of the contract.

•  20% From ground floor lintel level to first floor lintel level.

•  20% Completion of roof level.

•  20% From completion of roof level.

• 8% Completion of building.

•  2% After 6 mont hs retention period.

CHAPTER IV - MISCELLANEOUS PROVISIONS

Article 16: Delays

In the event that, through the contractor's fault, items of work specified in the contract are not completed on schedule, the contractor shall be subject to a penalty of 0.001 % of the price of the works ordered per day of delay.

Article 17: Liability

The contractor shall be liable during execution of the works for all damage, harm or accidents of whatever nature to third parties caused by its personnel or equipment or resulting from the works.

Article 18: Disputes and Litigation

If, over the course of the works, problems should arise between the Client and the contractor to which no amicable solution can be found, the issue shall be brought before the competent courts in The Gambia.

Article 19: The contractor shall take responsibility of the property from the handing over of the contract to the completion of the works.

SPECIAL CONDITIONS OF CONTRACT

Article 20: Maximum Penalty for Delays

The Client shall be entitled to liquidated damages of 0.1% of the contract price for every day work up to a maximum amount of 5% of the contract price.

Article 21: To give over all the rights, when the contractor seriously fails to another contractor.

DONE IN BANJUL this .................day of ...............................2006