THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

ETHIOPIAN ROADS AUTHORITY

KOFELE –KORE - BEKOJI AND ARSI NEGELLE – BILALLO JUNCTION
DESIGN AND BUILD ROAD PROJECT
(89.9 km)

For Procurement of Works

For International Competitive Bidding (ICB)

Procurement Reference No. __________________________

FINAL BIDDING DOCUMENT

VOLUME 1
Contents of Volume 1
Section I: Invitation for Bids
Section II: Instructions to Bidders (ITB)
Section III: Particular Information to Instruction to Bidders
Section IV: Conditions of Contract (COC), Part I
Section V: Conditions of Contract (COC), Part II
Section VII: Form of Bid, Appendix to Bid, Payment Schedule, and Form of Bid Security
Section VIII: Bill of Quantities (Not Applicable)
Section IX: Contract Forms and Schedules
Section XII: Dispute Settlement Procedures

November, 2021
Addis Ababa
 NOTICE OF INVITATION FOR BIDS
1. The Federal Democratic Republic of Ethiopia (FDRE) has allocated budget towards the cost
of the following Road Construction Projects and intends to apply part of this budget to
payments under these projects.

Estimated Project
Item Pavement Contract Procurement
Project Name Length Duration
No. Type Delivery Type
(Km) (Years)

Construction works of Kofele –

1. Kore – Bekoji and Arsi Negelle – 89.9 AC 3.0 DB ICB
Bilallo Juction Road Project

Note: - DBB = Design, Bid and Build; DB = Design and Build; ICB = International Competitive
Bidding; AC = Asphalt Concrete
2. The Ethiopian Roads Authority now invites bidders to submit sealed bids for providing the
necessary labor, material and equipment for construction works of the above road projects.
3. Interested bidders shall submit the following evidence:
a. In the case of Ethiopian bidders, Certificate of Registration from Ministry of
Construction with the relevant Categories as specified in item 4 of tables below
renewed for 2013 EFY and other appropriate documentary evidences demonstrating
the bidder’s compliance, which shall include:
i) Trading License renewed for 2013 EFY;
ii) Tax Clearance Certificate, which states that the bidder can participate in any
public tender, valid at bid submission date;
iii) VAT Registration Certificate; and
iv) Registration as Supplier in the list of the mandated public body, i.e. public
Procurement and Property Administration Agency (PPPAA).
b. In case of bidders other than Ethiopians;
i) Business organization registration certificate or Trade License issued by the
country of establishment.
ii) Tax Clearance Certificate issued from the Tax Authority (Inland Revenue
Authority) which allows the bidder to participate in public tenders at the date of
the deadline for bid submission if the foreign bidder already has on-going or
completed projects in the Country; Ethiopia.
4. Bidding will be conducted through International Competitive Bidding (ICB) procedures as
specified on the tables above and is open to all eligible bidders as specified and defined in
the Bidding Documents. The minimum Annual Construction Turnover, Cash Flow, General
and Specific Construction Experience for each of the project is as shown below:

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 4.1 Qualification and Evaluation Criteria of the Road Projects
4.1.1 Construction works of Kofele – Kore – Bekoji and Arsi Negelle – Bilallo Junction
Design and Build project
Item/ Qualification Minimum Requirement
No Criteria Local Bidders Foreign Bidders
Annual Construction ETB 522 million (Peak) ETB 1.645 billion (Average)
1 Turnover for the Last The annual construction Turnover (ACT) requirement for a Joint Venture
Five Years (JV) of Local and Foreign Firms is ETB 1.234 billion (Average).
Liquid Asset /Cash
2 ETB 154 million ETB 205 million
Flow Requirement
2 Years Firm Experience under 5 Years Firm Experience under
General Construction Contracts in the role of Construction Contracts in the role
3 Construction Prime Contractor, Joint Venture of Prime Contractor, Joint Venture
Experience Partner, Management Contractor or Partner, Management Contractor or
Sub-Contractor. Sub-Contractor.
A Minimum of One (1) any type of A Minimum of Two (2) Asphalt
asphalt (DBST, TST or AC) road Concrete (AC) road construction
construction or upgrading or or upgrading or rehabilitation
rehabilitation Project with a value of projects each with a value of at
ETB 1.535 billion; least ETB 1.755 billion Within the
OR last ten (10) years that has been
successfully and substantially
A Minimum of Two (2) any type of
completed (80% Completed).
asphalt (DBST, TST or AC road
construction or upgrading or
Specific rehabilitation projects each with a value
Construction of ETB 767 million;
4
Project Experience
OR
A Minimum of Three (3) any type of
asphalt (DBST, TST or AC) road
construction or upgrading or
rehabilitation projects each with a value
of ETB 511 million;
In all cases, the experiences shall be
within the last ten (10) years that has
been successfully and substantially
completed (70% Completed).
5 Grade RC - 1 or GC - 1

5. If a bidder is awarded and /or recommended for award of any two works contracts by ERA
Six months prior to the bid submission date of the subject projects and until the award
of the subject projects, the qualification criteria for the construction turnover will be the
aggregate of the criteria of the subject projects; and that of the awarded contracts and/or
those recommended to be awarded. A detailed qualification criterion is stated in the
respective bidding documents.
6. Interested eligible bidders may obtain further information from and inspect the bidding
documents at the address given below from 8:30 a.m. to 12:30 a.m. and 1:30 p.m. to 5:30
p.m. local time from Monday to Thursday, and from 8:30 to 11:30 a.m. and 1:30 p.m. to 5:30
p.m. local time on Friday.

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A complete set of bidding documents prepared in English language may be purchased by
interested bidders on the submission of a written application to the address below and a
nonrefundable fee of ETB 1,000 or USD 40 for each project, effective as of November 28,
2021. The method of payment shall be in cash or direct deposit to ERA’s account in the
Commercial Bank of Ethiopia - Sengatera Branch through Account No. 01715-33144600.
Address: Ethiopian Roads Authority, New Building Block B, Engineering Procurement
Directorate, 1st Floor, Office No. 102, Tel: +251-11-515-03-52/ 515-30-15.
7. Bidders can apply for one or for all or for any number of projects from the above listed
projects under the packages and shall submit their bid separately for each project they are
interested to apply for. However, bidders may be awarded on the projects under a package
subjected to fulfilling of the Qualification Criteria for individual and multiple projects
specified in the respective bidding documents based on the Employer’s best economical
advantage.
8. Bidders shall submit their Bids in two envelopes, the first envelop labeled as “Qualification
Information and Bid Security” and the second envelope “Financial Bid”, separate sealed and
the two envelopes sealed in on another outer envelope.
9. Evaluation is to be carried out in two stages, Qualification Information first and Financial
Bids of qualified Bidders next.
10. Bids must be delivered to the address, time and date specified below. Each bid must be
accompanied by a bid security of ETB 500,000.00 for each project in a format acceptable to
the employer. Late bids will be rejected. One Original and five Copies of the bids have to be
submitted. The Qualification information and Bid Security will be opened immediately after
the submission deadline in the presence of bidders’ representatives who choose to attend, at
the address below.
11. The value of total certified payments received in each year shall be adjusted for inflation of
Birr value through multiplying by Cn/Co factor, where Cn is value of 1 US Dollar in Birr on
the 28 day prior to bid submission date and Co is the value of 1 US Dollar in Birr computed
using the selling exchange rate prevailing on the last date of the respective fiscal year.
12. For the Specific construction projects experience requirement, the Contract value of projects
referenced by the bidder shall be adjusted to reflect the current purchasing power of
Ethiopian Birr by multiplying with Cn/Co factor, where Cn is the current selling exchange
rate of 1 US Dollar to Ethiopian Birr which is taken at the 28th days prior to bid submission
date and Co is the selling exchange rate of 1 US Dollar to Ethiopian Birr at the date of
signing the contract.
13. Bids must be delivered to the address below on or before August 31, 2021 at 2:30 P.M.
Director General
2nd Floor, Conference Room
Ethiopian Roads Authority
Ras Abebe Aregay Street
P. O. Box 1770
Addis Ababa, Ethiopia
Tel. +251-11-551 71 70/79
Fax. +251-11-5514866

14. The Ethiopian Roads Authority reserves the right to accept or reject any or all bids.

ETHIOPIAN ROADS AUTHORITY

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 Ethiopian Roads Authority
Bidding Document

Table of Clause

A. General ....................................................................................................................... 1
1. Scope of Bid ............................................................................................................ 1
2. Source of Funds ...................................................................................................... 1
3. Eligibility and Qualification Requirements ............................................................ 1
4. Cost of Bidding ........................................................................................................ 2
5. Site Visit, method Statement and Material Investigation .................................... 2

B. Bidding Documents ...................................................................................................2

6. Content of Bidding Documents ............................................................................. 2
7. Clarification of Bidding Documents .......................................................................3
8. Amendment of Bidding Documents ..................................................................... 4

C. Preparation of Bids .................................................................................................. 4

9. Language of Bid ..................................................................................................... 4
10. Documents Comprising the Bid ............................................................................ 4
11. Bid Prices, Currencies of Bid and Payment ........................................................... 6
12. Bid Validity ............................................................................................................... 7
13. Bid Security............................................................................................................. 8
14. Variations in Bidding Conditions ........................................................................... 9
15. Format and Signing of Bid ..................................................................................... 9

D. Submission of Bids .................................................................................................. 10

16. Sealing and Marking of Qualification Applications and Bids .............................. 10
17. Deadline for Submission of Bids ........................................................................... 11
18. Late Bids ................................................................................................................. 11
19. Modification and Withdrawal of Bids ................................................................... 11

E. Bid Opening and Evaluation ................................................................................... 12

20. Bid Opening ........................................................................................................... 12
21. Process to be Confidential ................................................................................... 12
22. Clarification of Bids ............................................................................................... 12
23. Determination of Responsiveness ....................................................................... 13
24. Correction of Errors .............................................................................................. 14
25. Evaluation and Comparison of Bids ..................................................................... 15
26. Preference for Domestic Bidders......................................................................... 16

F. Award of Contract ................................................................................................... 17

27. Award Criteria ....................................................................................................... 17
28. Employer’s Right to Accept Any Bid and to Reject Any or All Bids .................... 17
28. Notification of Award ........................................................................................... 17
30. Performance Security ........................................................................................... 18
31. Signing of Contract Agreement ........................................................................... 19
32. Dispute Review Method ........................................................................................ 19
33. Corrupt & Fraudulent Practices ...........................................................................20
34. Warranty Bond ...................................................................................................... 21

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Bidding Document

Instructions to Bidders
A. General
1. Scope of Bid 1.1 The Employer, as defined in the Particular Information to
Instruction to Bidders, hereinafter “the Employer” wishes to
receive bids for the Design and Build works, as described in this
Bidding Document, hereinafter referred to as “the works”.

1.2 The successful bidder will be expected to complete the works

within the period stated in the Particular Information to
Instruction to Bidders from the date of commencement of the
works.

1.3 Throughout these bidding documents, the terms “bid” and

“tender” and their derivatives (bidder/tenderer; bid/tender,
bidding/tendering etc.) are synonymous. Singular also means
plural.
2. Source of 2.1 The source of fund is as indicated in Particular Information to
Funds Instruction to Bidders
3. Eligibility A bidder shall:
3.1 Have the legal capacity to enter into a contract;
3.1.1 Not be insolvent, in receivership, bankrupt or being wound
up, not have had their business activities suspended and not be
the subject of legal proceedings for any of the foregoing; and
3.1.2 Have fulfilled their obligations to pay taxes according to
the laws of the Federal Democratic Republic of Ethiopia.
3.2 Bidding is open to all bidders from eligible countries as defined in
Section IX, Forms and Schedules. Any materials, equipment and
services to be used in the performance of the Contract shall have
their origin in an eligible country, as defined in Section IX, Forms
and Schedules.
3.3 For purposes of Sub-Clause 3.2 above, “origin” means the place
where the materials, Plant, equipment, and other supplies are
mined, grown, produced, manufactured, or assembled and from
which the services are supplied.
3.4 All bidders shall provide, a statement that the Bidder (including all
members of a joint venture and sub-contractors) is not associated,
nor has been associated in the past, directly or indirectly, with the
consultant or any other entity that has prepared the design,
specifications, and other documents for the Project or being
proposed as Engineer for the Contract. A firm that has been
engaged by the Employer to provide consulting services for the
preparation or supervision of the Works, and any of its affiliates,
shall not be eligible to bid.

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3.5 Government-owned enterprises in the Federal Democratic

Republic of Ethiopia may only participate if they are legally and
financially autonomous, operate under commercial law, and are
not a dependent agency to the Employer.
3.6 A Bidder that has been debarred from participating in public
procurement in accordance with this ITB, at the date of the
deadline for bid submission or thereafter, shall be disqualified.
3.7 A Bidder shall not have a conflict of interest. All Bidders found to
have a conflict of interest shall be disqualified. Bidders having at
least one controlling partner in common may be considered to
have a conflict of interest.
4. Cost of 4.1 The Bidder shall bear all the costs associated with the preparation
Bidding of his bid. The Employer will in no case be responsible or liable for
these costs, regardless of the conduct or outcome of the bidding
process.
5. Site Visit, 5.1 It is required to visit the site of works and fill in the site visit form
method prescribed in Section IX, Forms and Schedules of the Bidding
Statement Document and obtain for himself on his own responsibility all
and Material information that may be necessary for preparing the bid and
Investigation entering into a contract. The costs of visiting the site shall be at
bidder’s own expense.

5.2 The bidder and any of his personnel or agents will be granted
permission by the Employer to enter upon his premises and lands
for the purpose of such inspection, but only upon the express
condition that the bidder, his personnel or agent, will release and
indemnify the Employer and his personnel and agents from and
against all liabilities in respect thereof and will be responsible for
personal property and any other loss, damage, costs and expenses
however caused, which, but for the exercise of such permission
would not have arisen.
5.3 As this contract is different from the traditional BOQ based contract,
the bidders are required to conduct preliminary reconnaissance to
project road and investigate material availability, alignment,
drainage Structures, Pavement, etc, get familiar with the
Employer’s requirements including of ERA manuals, ERA Standard
Specifications. etc. and address their clear understanding of the
works in their methodology of their proposal.
B. Bidding Documents
6. Content of 6.1 The set of Bidding Documents issued for the purpose of bidding
Bidding includes the number of copies and contents listed below together
Documents with any Addenda thereto issued in accordance with Clause 8 of
Instructions to Bidders.

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VOLUME I
Section I: Invitation to Bid
Section II: Instructions to Bidders
Section III: Particular Information to Instruction to Bidders
Section IV: General Conditions of Contract - Conditions of
Contract For Design-Build and Turnkey, First Edition 1995
Section V: Conditions of Particular Application
Section VII: Form of Bid, Appendix to Bid, Payment Schedule and
Form of Bid Security
Section VIII: Bill of Quantities (Not Applicable)
Section IX: Contract Forms and schedules
Section X: Drawing (if Applicable)
Section XII: Dispute Resolution Procedure
VOLUME II
Section VI: Employer’s Requirements
VOLUME III
Section XI: Post Qualification Document

6.2 The bidder is expected to examine all instructions, conditions, forms,

terms, specifications and employer’s requirements in the Bidding
Documents. Failure to comply with the requirements of bid
submission will be at the bidder’s own risk. Pursuant to Clause 23,
bids that are not substantially responsive to the requirements of
the Bidding Documents will be rejected
7. Clarification 7.1 A prospective bidder requiring any clarification of the Bidding
of Bidding Documents may request clarification in writing at the address
Documents indicated in the particular information and the bidder or his official
representative is invited to attend a pre-bid meeting which will
take place at the venue, time and date specified in the Particular
Information to Instructions to Bidders.

7.2 The Bidder should likewise notify the above in writing of any
contradictions, ambiguities and omissions in the Bidding
Documents if clarification on these is necessary for the clear
understanding of the document and for the preparation of the Bid.
Such inquiries must reach the above named address not later than
20 days prior to deadline for submitting of bids. Written copies of
the Employer’s response will be sent to all prospective bidders who
have purchased the bidding documents.

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8. Amendment 8.1 At any time prior to the deadline for submission of bids, the
of Bidding Employer may, for any reason, whether at his own initiative or in
Documents response to a clarification requested by a prospective bidder,
modify the Bidding Documents by the issuance of an Addendum.

8.2 The Addendum will be sent in writing to all prospective bidders

who have purchased the Bidding Documents and shall be part of
the bidding document pursuant to sub clause 6.1. Prospective
bidders shall promptly acknowledge receipt thereof in writing to
the Employer.

8.3 In order to afford prospective bidders reasonable time in which to

take an addendum into account in preparing their bids, the
Employer may, at his own discretion, extend the deadline for the
submission of bids in accordance with clause 17.

C. Preparation of Bids
9. Language of 9.1 The bid prepared by the bidder and all correspondence and
Bid documents relating to the bid exchanged by the bidder and the
Employer shall be written in the English Language. Supporting
documents and printed literature furnished by the Bidder may be
in another language provided they are accompanied by an accurate
translation of the relevant passages in the above stated language,
in which case, for purposes of interpretation of the bid, the
translation shall prevail.
10. Documents 10.1 The Bid submission to be prepared by the bidder shall comprise
Comprising the following:
the Bid
With the Post Qualification Application Envelope, the bidder shall
submit the following eligibility and qualification requirements:
(a) Copies of original documents defining the constitution or
legal status, place of registration and principal place of
business;
(b) The Information on eligibility
(c) Banker’s statement to access to lines of credit
(d) The Bid Security
(e) Signed Qualification application submission form by the
authorized person
(f) Power of attorney for signatory of the document
(g) Joint venture agreement or a letter of intent to form a
joint venture if the bid is submitted as JV.
(h) Total annual turnover in the civil Works construction
business expressed as the sum of payments certified for
work performed in each of the last five years.

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(i) Performance as prime Contractor, management

Contractor, or proportionately as member of a joint
venture or Subcontractor, on Works of a similar nature
and complexity over the last Ten years, and details of
other Works in hand and present contractual
commitments.
(j) Major items of Contractor’s Equipment proposed for
carrying out the Contract.
(k) The qualifications and experience of key personnel
proposed for administration and execution of the
Contract, both on and off site.
(l) Any proposal for Subcontracting elements of the Works
where the total value to be Subcontracted is at least 10
percent of the Bid Price.
(m) Detailed proposals for proposed Subcontracting of any
highly specialized elements of the Works to named
specialist Subcontractors.
(n) Reports on the financial standing of the Bidder including
profit and loss statements, balance sheets and auditor’s
reports for the past five years.
(o) Authority to seek references from the Bidder’s bankers.
(p) Information regarding any litigation or arbitration
resulting from Contracts executed by the Bidder in the
last five years or currently under execution. The
information shall include the names of the parties
concerned, the disputed amount, cause of litigation, and
matter in dispute; and present status of the dispute
resolution.
(q) The Contractor’s work program and method statement
and work schedule (for both design & construction
works)
(r) Signed Anti-Bribery Pledge Form.
(s) Any other requirements as indicated in Section III:
Particular Information to Instruction to Bidders and
Section XI Qualification Questionnaire (Post
Qualification Document).
Note: The qualification application document shall not contain any
financial information of the bid; otherwise, will result in
rejection of the bid.
With the Bid Envelope, the Bidder shall submit:
 The dully filled in form of Bid and Appendix there to
Alternative offers where invited and any other materials
required to be completed and submitted in accordance with the
Instructions to Bidders embodied in these Bidding Documents.

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Bidding Document

10.2 Bids submitted individually, as a partner in a Joint Venture or as

group as the case may be, must comply with the qualification
requirements set in the Bidding Document, Qualification
Questionnaires. Moreover, the Joint Venture shall satisfy the
following:
(a) The bid, and in case of a successful bid, the Form of
Agreement, shall be signed so as to be legally binding
on all partners;
(b) One of the partners shall be nominated as being in
charge and shall be responsible on behalf of all the
partners to the Joint Venture, and this authorization
shall be evidenced by submitting a power of attorney
signed by legally authorized signatories of all the
partners;
(c) The partner in charge shall be authorized to incur
liabilities and receive instructions for and on behalf of
any and all partners of the joint venture, and the entire
execution of the Contract, including payment, shall be
done exclusively with the partner in charge;
(d) All partners of the joint venture shall be liable jointly and
severally for the execution of the Contract in
accordance with the Contract terms, and a statement to
this effect shall be included in the authorization
mentioned under (c) above, as well as in the Form of Bid
and in the Form of Agreement (in case of a successful
Bid); and
(e) A copy of the Joint Venture Agreement entered into by
all partners shall be submitted with the Qualification
Information. Alternatively, a Letter of Intent to execute
a Joint Venture Agreement in the event of a successful
Bid shall be signed by all partners and submitted with
the bid, with a copy of the proposed Agreement.
10.3 The forms, and schedules provided in the Bidding Documents shall
be used without exception (subject to extensions of the schedules
in the same format and to the provisions of Sub-Clause 13.2
regarding the alternative forms of bid security).
10.4 If indicated in the Bidding Data, Bidders bidding for this Contract,
together with other Contracts to form a package will so indicate in
the bid, together with any discounts offered for the award of more
than one Contract.
11. Bid Prices, 11.1 Unless stated otherwise in the Bidding Document, the contract
Currencies of shall be for the whole works as described in Clause 1 of these
Bid and Instructions to Bidders, based on lump sum basis.
Payment

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11.2 The Bidder shall fill total lump sum amount for the construction of
all the works including survey, design and material investigation
costs.
11.3 All duties, taxes except VAT and other levies payable by the
Contractor under the Contract, or for any other cause, as of the
date 28 days prior to the closing date for submission of bids, shall
be included in the rates and prices and total bid price submitted by
the bidder. VAT shall be included in the contract and has to be
indicated separately.
11.4 The total contract amount quoted by the bidder shall be fixed for
the duration of the Contract and shall not be subjected to
adjustment on any account except as otherwise provided in the
conditions of contract.
11.5 The currency (ies) of the bid shall be as specified in Sub-Clause11.6
of the Particular Information to Instruction to Bidders.
11.6 The rates and the prices shall be quoted by the bidder entirely in
the currency of the Employer’s country specified in the Bidding
Data. A bidder expecting to incur expenditures in other currencies
for inputs to the Works supplied from outside the Employer’s
country (referred to as “the foreign currency requirements”) shall
indicate in the Appendix to Bid the percentage(s) of the Bid Price
(excluding Provisional Sums) needed by him for the payment of
such foreign currency requirements, limited to no more than three
freely convertible foreign currencies.
11.7 The rates of exchange to be used by the bidder in arriving at the
local currency equivalent and the percentage(s) mentioned in Sub-
Clause 11.6 above shall be specified by the bidder in the Appendix
to Bid, and shall apply for all payments under the Contract so that
no exchange risk will be borne by the successful bidder.
11.8 Bidders shall indicate their expected foreign currency
requirements in the Appendix to Bid.
11.9 Bidders may be required by the Employer to clarify their local and
foreign currency requirements, and to substantiate that the
amounts included in the rates and prices and shown in the
Appendix to Bid are reasonable and responsive to Sub-Clause 11.6,
in which case a detailed breakdown of its foreign currency
requirements shall be provided by the bidder.
12. Bid Validity 12.1 Bids shall remain valid and open for acceptance for a period
stipulated in the Particular Information to Instruction to Bidders
after the date of bid opening prescribed in Clause 20.

12.2 In exceptional circumstances, prior to expiry of the original bid

validity period, the Employer may request the bidders for a

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specified extension in the period of validity. The request and the

responses thereto shall be made in writing. A bidder may refuse
the request without forfeiting his bid security. A bidder agreeing
to the request will not be required nor permitted to modify his bid,
but will be required to extend the validity of his bid security
correspondingly. The provisions of Clause 13 regarding discharge
and forfeiture of bid security shall continue to apply during the
extended period of bid validity.
13. Bid Security 13.1 The bidder shall furnish, as part of his bid, a bid security in the
amount stated in the Particular information to Instruction to
Bidders.
13.2 If required, the bid security shall:
(a) at the Bidder’s option, be in the form of either a letter of credit,
or a bank guarantee from a banking institution, or a bond issued by
an insurance or bonding institution;
(b) be issued by a reputable institution selected by the Bidder and
located in any eligible country. If the institution issuing the bond is
located outside the Employer’s Country, it shall have a
correspondent financial institution located in the Employer’s
country to make it enforceable.
(c) be substantially in accordance with one of the forms of bid
security included in Section VII or other form approved by the
Employer prior to bid submission;
(d) be payable promptly upon written demand by the Employer in
case any of the conditions listed in Sub-Clause 13.7 are invoked;
(e) be submitted in its original form; copies will not be accepted;
(f) remain valid for a period of 28 days beyond the original validity
period of bids, or beyond any period of extension subsequently
requested under Sub-Clause 12.2.
13.3 The bid security of a joint venture shall be issued so as to commit
fully all partners to the proposed joint venture.
13.4 Any bid not accompanied by an acceptable bid security will be
rejected by the Employer as non-responsive.
13.5 The bid securities of unsuccessful bidders will be returned as
promptly as possible, but not later than 28 days after the
expiration of the period of bid validity prescribed by the Employer.
13.6 The bid security of the successful Bidder will be returned when the
Bidder has signed the Agreement and furnished the required
performance security.
13.5 The bid security may be for feited:-

a) If the bidder withdraws his bid during the period of bid

validity;

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b) If the bidder refuses to accept the correction of errors in his

bid or
c) If the bidder, having being notified of the acceptance of
his bid by the Employer during the period of bid validity
refuses within the specified time limit to:-
(i) Sign the contract Agreement, or
(ii) Furnish the required performance security.

14. Variations in 14.1 If Variations are permitted in Particular Information to Instruction to

Bidding Bidders, A bidder may select his preference within the range of
Conditions conditions indicated, and shall state the basis of his offer in the
Appendix to the Bid.
14.2 Bidders wishing to qualify their bids or otherwise to deviate from
the requirements of the bidding documents on items of a
financial/administrative nature other than those provided for in the
above paragraph on Sub-Clause 14.1 above shall present such
qualifications or deviations in the form of alternative offers to the
basic bidding requirements. The attention of bidders is drawn to
the provisions of Clause 23 regarding the rejection of bids, which
are not substantially responsive to the requirements of the bidding
documents. Each alternative to the requirements of the bidding
documents shall be accompanied by a detailed description and
price breakdown indicating the bidder’s estimate of the cost
implications to the Employer in accordance with Clause 25 if the
alternative offer were to be accepted by the Employer and
incorporated in the contract. Bids containing qualifications and
deviations which are not so detailed and priced as alternative
offers may be rejected. After evaluation in accordance with Clause
25, the Employer reserves the rights to accept or reject any
alternative offer submitted pursuant to this Sub - Clause.
14.3 Offers are not invited from bidders for technical alternatives to the
Employer’s Requirement included in the Bidding Documents.

15. Format and 15.1 The bidder shall prepare one original and copies in the number
Signing of Bid specified in the Particular Information to Instruction to Bidders of
the documents comprising the bid as described in sub-clause 10.1
of these Instructions to Bidders, bound with the volume
containing the bid proposals, and clearly marked “ORIGINAL” and
“COPY” as appropriate. In the event of any discrepancy between
them, the original shall prevail.

15.2 The original bid shall be typed or written in legible ink and shall be
signed by a person or persons duly authorized to bind the bidder
to the contract. Proof of authorization shall be furnished in the
form of a written power-of-attorney which shall accompany the

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bid. Any entries or amendment shall be made on the original Bid

before producing the copies. All pages of the bid where entries or
amendments have been made shall be initialed by the person or
persons signing the bid. No amendment is allowed to be made on
photocopies. Copies of the Bid shall be exact photocopies of the
original document. Submitting of hand written copies will result in
rejection of the Bid.
The complete bid shall be without alterations, erasures, or
interlineations except those to accord with instructions issued by
the Employer, or as necessary to correct errors made by the
bidder, in which case such corrections shall be initialed by the
person or persons signing the bid.
15.3 Only one bid may be submitted by each bidder. No bidder may
participate in the bid of another for the same contract in any
relation whatsoever
D. Submission of Bids
16. Sealing and 16.1 The bidder shall seal each copy of the post qualification, bid
Marking of security and the bid; in accordance with Clause 15 in separate
Qualification envelopes, duly marking the envelopes as “application for Post
Applications qualification”, “Bid” and “Bid security” The three envelopes shall
and Bids then be sealed in an outer envelope.
16.2 The inner and outer envelopes shall
(a) be addressed to the Employer at the address provided in the
Particular instruction to information to Bidders;
(b) bear the name and identification number of the Contract as
defined in the Particular instruction to information to
Bidders; and
(c) Provide a warning not to open before the time and date for
bid opening, as specified in clause 17.
The envelope marked “Financial Bid” shall provide a further
warning on the cover stating:
“Not to open until advised by the Employer in accordance with
ITB Sub-clause 20.5.”

16.3 In addition to the identification required in Sub-Clause 16.2, the

inner envelopes shall indicate the name and address of the bidder
to enable the bid to be returned unopened in case it is declared
“late” pursuant to Clause 18, or to return the Bid unopened of the
Bidder’s who doesn’t satisfy the qualification requirement set in
Volume III, Qualification Questionnaire, of the Bidding document
and for matching purposes under Clause 19.
16.4 If the outer envelope is not sealed and marked as above, the
Employer will assume no responsibility for the misplacement or
premature opening of the bid. If the outer envelope discloses the
bidder’s identity, the Employer will not guarantee the anonymity of

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the bid submission, but this shall not constitute grounds for
rejection of the bid.

17. Deadline for 17.1 The Employer must receive bids at or before the time specified in
Submission of Sub-clause 17.1 of the Particular Information to Instruction to
Bids Bidders.

17.2 The Employer may, at his discretion, extend the deadline for
submission of the bids by issuing an amendment in accordance
with Clause 8, in which case all rights and obligations of the
Employer and the bidders previously subject to the original
deadline shall thereafter be subject to the new deadline as
extended.

18. Late Bids 18.1 Any bid received by the Employer after the deadline for submission
of bids prescribed by the Employer in accordance with clause 17 will
be returned unopened to the bidder.

19. Modification 19.1 The Bidder may modify or withdraw his bid after bid submission,
and provided that the modification or notice of withdrawal is received
Withdrawal of in writing by the Employer prior to the prescribed deadline for
Bids submission of bids.

19.2 The bidder’s modification or notice of withdrawal shall be

prepared, sealed, marked and delivered in accordance with the
provisions of clause 16 for the submission of bids, with the inner
envelopes additionally marked “MODIFICATION” or
“WITHDRAWAL” as appropriate.

Modifications should be submitted separately for “Qualification

Information and Bid security” and “Financial Bid” and the
envelopes shall be correspondingly marked as “Modifications-
Qualification Information and Bid security” and “Modifications-
Financial Bid”

19.3 Subject to Clause 22, no bid may be modified subsequent to the

deadline for submission of bids.

19.4 Withdrawal of a bid during the interval between the deadline for
submission of bids and the expiration of the period of bid validity
specified by the bidder in the form of bid may result in the
forfeiture of the bid security pursuant to clause 13.

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E. Bid Opening and Evaluation

20. Bid Opening 20.1 The Employer will open the Qualification application including
withdrawals and modification made pursuant to Clause 19 and the
Bid Security, in the presence of bidders’ designated
representatives who choose to attend, at the time, date and
location stipulated in the Particular Information to instruction to
Bidders by a committee of officials. The remaining envelope
containing the Financial bid will remain sealed signed by the
committee and deposited with the chairman of the contract Award
Committee or independent authority until they are opened
publicly. The bidders’ representatives who are present shall sign a
register evidencing their attendance.
20.2 Envelopes marked “Withdrawal” shall be opened first, and the
name of the bidder shall be read out. Bids for which an acceptable
notice of withdrawal has been submitted pursuant to Clause 19
shall not be opened. Subsequently Qualification document
submissions will be opened and initialed by the Contract Award
Committee members. No bid shall be rejected at bid opening
except for late bids pursuant to Clause 18.
20.3 Bidders shall not contact the Client on any matter relating to the bid
from the time of submission of the bid to the time the Contract is
awarded except as stipulated in causes 21 and 22.
20.4 The Employer will notify in writing the bidders that passed the
Qualification requirements informing them to attend the bid
opening ceremony and indicate the date, time, and address. The
opening date will not be sooner than five working days after the
notification date. The notification may be sent by registered letter,
cable, telex or facsimile. The employer will simultaneously notify
the unsuccessful applicants the result of the evaluation of the
applications.
20.5 The envelope containing the Financial Bid of the firms that have
passed qualification requirement shall be opened.
20.6 The Employer shall prepare minutes of the bid opening, including
the information disclosed during the bid opening, to those present
in accordance with Sub-Clause 20.4.
20.7 Bids not opened and read out at bid opening shall not be
considered further for evaluation, irrespective of the
circumstances.
21. Process to be 21.1 Any effort by a bidder to influence the Employer in the process of
Confidential examination, clarification, evaluation and comparison of bids and
recommendations, and in the decisions concerning award of
contract, may result in the rejection of the bidder’s bid.
22. Clarification 22.1 To assist in the examination evaluation and comparison of bids, the
of Bids Employer may ask bidders individually for clarification of their bids,
including breakdowns of unit rates divided into direct and indirect
costs. The request for clarification and the response shall be in

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writing, but no change in the price or substance of the bid shall be

sought, offered or permitted except as required to confirm the
correction of arithmetic errors discovered by the Employer during
the evaluation of the bids in accordance with Clause 24.
23.Examination of 23.1 Prior to the detailed evaluation of bids, the Employer will
Bids and determine whether each bid is substantially responsive to the
Determination requirements of the Bidding Documents which includes that the
of bid;
Responsiveness (a) meets the eligibility criteria of Volume I of Section IX and
Qualification criteria set in Volume III of Section XI of the Bidding
Document;
(b) has been properly signed;
(c) is accompanied by the required securities;
(d) is substantially responsive to the requirements of the Bidding
Document as set out in the Bidding Document; and
23.2 A substantially responsive bid is one that conforms to all the terms,
conditions, and specifications of the Bidding Document without
material deviation, reservation or omission. A material deviation,
reservation, or omission is one that,
(a) if accepted, would
(i) affects in any substantial way the scope, quality, or
performance of the Works specified in the proposed
Contract; or
(ii) limits in any substantial way, inconsistent with the
Bidding Document, the Employer’s rights or the Bidder’s
obligations under the proposed Contract; or

(b) if rectified, would unfairly affect the competitive position

of other Bidders presenting substantially responsive bids.
23.3 The Employer shall examine the qualification application of each
Bidder to confirm that it has complied with all the must meet
requirements of the bidding document. A bid that has failed to
meet any of the must meet requirements may be rejected from
further evaluation.
23.4 If a Bid is not substantially responsive to the requirements of the
Bidding Documents, it will be rejected by the Employer, and may
not subsequently be made responsive by the bidder having
corrected or withdrawn non-conforming deviation or
reservation.
23.5 Provided that a bid is substantially responsive, the Employer may
waive any non-conformity in the bid that do not constitute a
material deviation, reservation or omission.
23.6 Provided that a bid is substantially responsive, the Employer may
request that the Bidder submit the necessary information, within

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a reasonable period of time to rectify nonmaterial

nonconformities in the bid related to documentation
requirements. Requesting information or documentation on such
nonconformities shall not be related to any aspect of the price of
the bid. Failure by the Bidder to comply with the request may
result in the rejection of its bid.
23.7 Provided that a bid is substantially responsive, the Employer shall
rectify nonmaterial nonconformities related to the Bid Price. To
this effect, the Bid Price shall be adjusted, for comparison
purposes only, by the highest price quoted in this bidding process
to reflect the price of the missing or non-conforming item or
component
23.8 During the evaluation of bids, the following definitions apply:
(a) “Deviations” is a departure from the requirements
specified in the Bidding Document.
(b) “Reservations” is the setting of limiting conditions or
withholding from complete acceptance of the
requirements specified in the Bidding Document; and
(c) “Omissions” is the failure to submit part or all of the
information or documentation required in the Bidding
Document.
24. Correction of 24.1 Bids determined to be substantially responsive will be checked by
Errors the Employer for any arithmetic errors in the computation and
summation. Errors will be corrected by the Employer as follows:-
Where there is a discrepancy between amounts in figures and in
words, the amount in words will govern.

24.2 The amount stated in the Bid Document will be adjusted by the
Employer in accordance with the above procedure for the
correction of errors and with the concurrence of the bidder, shall
be considered as binding upon the bidder. If the bidder does not
accept the corrected amount of bid, his bid will be rejected and the
bid security will be forfeited.

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25. Evaluation 25.1 The Employer will evaluate and compare only Bids determined to
and be substantially responsive to the requirements of the Bidding
Comparison Documents in accordance with Clause 23.
of Bids
25.2 In evaluating bids, the Employer will determine for each bid the
evaluated Bid Price by adjusting the Bid price as follows:

a) Making any correction for errors pursuant to Clause 24.

b) Excluding Provisional Sums and, if any, for Contingencies.
c) Making an appropriate adjustment for any other
acceptable quantifiable variations, deviations, omission
or alternative offers not reflected in the Bid Price or in the
above mentioned other adjustments.

25.3 For comparison of bids, the Bid Price, corrected pursuant to

Clause 24, shall first be broken down into the respective amounts
payable in various currencies by using the exchange rates
specified by the bidder in accordance with Sub-Clause 11.7.

25.4 In the second step, the Employer will convert the amounts in
various currencies in which the Bid Price is payable (excluding
Provisional Sums but including Day works where priced
competitively) to the currency of the Employer’s country at the
selling rates established for similar transactions by the authority
specified in the Particular information to Instruction to Bidders
on the date stipulated in the Particular information to Instruction
to Bidders;

25.5 After identifying the successful Bidder by evaluating the bid

documents against the criteria set forth in this Bidding Document,
the Employer may conduct qualification evaluation to establish
the current qualification of the successful Bidder where it feels
that it has to be ascertained.

25.6 Such qualification evaluation of the successful Bidder may relate

to submission of the documentary evidence specified in ITB Clause
3 and Section XI, Qualification Questionnaire, unless satisfactory
documents are already included in the bid, concerning its legal,
professional, technical and financial standing and conformity to
the requirements stated in this Bidding Document.

25.7 If the successful Bidder fails to provide this documentary proof

within 7 calendar days following the Employer’s request or if the
successful Bidder is found to have provided false information, its
bid shall be disqualified in which event the Employer shall proceed
to the next lowest evaluated bid to make a similar determination
of that Bidder’s capabilities to perform satisfactorily.

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26. Preference 26.1 If so indicated in the Particular information to Instruction to

for Domestic Bidders, domestic bidders may receive a margin of preference in
Bidders bid evaluation for which this clause shall apply.

26.2 Domestic bidders shall provide all evidence necessary to establish

that they meet the following criteria to be eligible for a 7½ percent
margin of preference in the comparison of their bids with those of
bidders who do not qualify for the preference.

26.3 A domestic bidder is one that meets the following criteria:

(a) for an individual firm:
(i) is registered in the country of the Employer;
(ii) has more than 50 percent ownership by nationals of the
country of the Employer;
(iii) does not subcontract more than 10 percent of the
Contract Price, excluding Provisional Sums, to foreign
contractors.

(b) for a joint venture (JV) of domestic firms:

(i) individual member firms shall satisfy Sub-Paragraphs
26.3 (a) (i) and (a) (ii) above;
(ii) the JV shall be registered in the country of the Employer;
(iii) the JV shall not subcontract more than 10 percent of the
Contract Price, excluding Provisional Sums, to foreign
firms.

26.4 The following procedure will be used to apply the margin of

preference:
(a) After bids have been converted to a single currency in
accordance with the provisions of Paragraphs 31.2 (c) above,
responsive bids will be classified into the following groups:

(i) Group A: bids offered by domestic bidders and joint

ventures meeting the criteria set out in the above Sub-
Clause 26.3; and

(ii) Group B: all other bids.

(b) For the purpose of further evaluation and comparison of bids

only, an amount equal to 7½ percent of the evaluated Bid
Price determined in accordance with the provisions of
Paragraphs 25.2 (a), (b) and (c), will be added to all bids
classified in Group B.

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26.5 Alternative offers, where solicited or permitted, will be evaluated

separately, in accordance with the provisions of Clause 18, and shall
be subject to the margin of preference in accordance with Sub-
Clause 26.4.

F. Award of Contract

27. Award 27.1 It is the interest of the Employer to observe the highest standard
Criteria of ethics during the execution of such contracts. The Employer
will reject any proposal if it determines that the firm
recommended for award has engaged in corrupt, fraudulent,
Collusive or Coercive practice in competing for the contract in
question in accordance with Clause 33. The Employer requires
the bidders to submit Anti-Bribery pledge Form signed by an
authorized representative of the firm as per the format attached
in section IX.
Therefore, the Employer requires the bidders to submit Anti
Bribery Pledge Form signed by an authorized representative of
the firm as per the format attached in section IX.
27.2 Subject to Clause 28, the Employer will award the contract to the
bidder whose bid has been determined to be substantially
responsive to the bidding documents and who has offered the
lowest evaluated bid price pursuant to Clause 25, provided
further that the Bidder has the capability and resources to carry
out the Contract effectively (Ref. Clause 3).
27.3 If, pursuant to Sub-Clause 10.4, this Contract is being let on a “slice
and package” basis, the lowest evaluated Bid Price will be
determined when evaluating this Contract in conjunction with
other Contracts to be awarded concurrently, taking into account
any discounts offered by the Bidders for the award of more than
one Contract.
28. Employer’s 28.1 Notwithstanding Clause 27, the Employer reserves the right to
Right to accept or reject any bid and to annul the bidding process and
Accept Any reject all bids, at any time prior to award of contract, without
Bid and to thereby incurring any liability to the affected bidder or bidders or
Reject Any or any obligation to inform the affected bidder or bidders of the
All Bids grounds for the Employer’s action.
28.2 The Employer may, at his own discretion before awarding of the
contract increase the percentage of the performance security
after having seen the amount of the bid price, reserving his right
as mentioned in clause 28.1, if there is a non-acceptance by the
bidder of such increase.
29. Notification 29.1 The Employer shall notify the evaluation result to all the bidders
of Award after completion and approval of evaluation of bids.

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If any unsuccessful Bidder believes that it has been unfairly

treated during evaluation, he may lodge a complaint to the
Director General (DG) of ERA within five working days of his
receipt of notifications for being unsuccessful. The Director
General will respond within ten working days. If the firm is
dissatisfied with ERA’s responses, he may take up the matter to
the Federal Democratic Republic of Ethiopia Ministry of finance
Public Procurement and Property Administration Agency, whose
decision will be final, within five working days with a copy to the
Director General of ERA.
Otherwise, if the bidder does not lodge his complaint in the
specified dates, it shall be considered that the bidder has
accepted the evaluation result and ERA’s response.
29.2 Prior to the expiration of the period of bid validity prescribed by
the Employer, the Employer will notify the successful bidder in
writing by registered letter that his bid has been accepted. This
letter (hereinafter and in the Conditions of Contract called “Letter
of Acceptance”) shall name the sum which the Employer will pay
to the Contractor in consideration of the execution, completion
and maintenance of the works by the Contractor as prescribed by
the Contract (hereinafter and in the Conditions of Contract called
“the Contract Price”)
29.3 The issuance of the Notification of award (Letter of Acceptance)
will not constitute the formation of the Contract between the
successful Bidder and the Employer. In accordance with article
46.2 of Proclamation No.649/2009, the existence of a Contract
shall be confirmed through the signature of a Contract Document
incorporating all agreements between the parties.
30. Performance 30.1 Within28 days of receipt of the notification of award from the
Security Employer, the successful bidder shall furnish a performance
security in the form provided in Section IX of the Bidding
Document. This form must be used unless another form proposed
by the Bidder is approved by the Employer in an amount of ten (10)
percent of the contract price in accordance with the conditions of
Contract.
30.2 If it is stipulated in the Particular Information to Instruction to
Bidders that the performance security is to be provided by the
successful Bidder in the form of a bank guarantee, it shall be issued
either at the Bidder’s option, by a bank located in the country of
the Employer or by a foreign bank through a correspondent bank
located in the country of the Employer.
30.3 If it is stipulated in the Particular Information to Instruction to
Bidders that the performance security may also be provided by the
successful Bidder in the form of a bond, it shall be issued by a
bonding or insurance company that has been determined by the
successful Bidder to be acceptable to the Employer. A foreign

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institution providing a bond shall have a correspondent financial

institution located in the Employer’s Country.
30.4 Upon the furnishing by the successful bidder of a performance
security in accordance with the provisions of Clause 30, the
Employer will promptly notify the unsuccessful bidders that their
bids have been unsuccessful and their Bid Securities will be
returned for all bidders pursuant to ITB Clause 13.4.
30.5 Failure of the successful bidder to comply with the requirements
of Clause 30 shall constitute sufficient grounds for the annulment
of the award and forfeiture of the bid security and any such other
remedy the Employer may take under the Contract, and the
Employer may resort to awarding the Contract to the next ranked
Bidder.
31. Signing of 31.1 At the same time that the Employer notified the successful bidder
Contract that his bid has been accepted, the Employer will send the bidder
Agreement the form of Agreement provided in the Bidding Documents,
incorporating all agreements between the parties.
31.2 Within 28 days of receipt of the Letter of Acceptance, the successful
Bidder shall sign the Agreement and return it to the Employer,
together with the required performance security.
32. Dispute 32.1 The dispute review method (i.e. The Dispute Review Board or the
Review Dispute Review Expert) is indicated in the Particular information
Method to Instruction to Bidders. The Employer and the Successful Bidder
will select Dispute Review Board members or the Disputes Review
Expert, as the case may be, according to the procedures set forth
in clause 20 of the Conditions of Particular application.

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33. Corrupt & 33.1 The Employer requires that its officials as well as
Fraudulent bidders/suppliers/contractors under this and similar contracts,
Practices observe the highest standard of ethics during the procurement
and execution of such contracts. In pursuance of this, the
Employer:
(a) Defines, for the purposes of this provision, the terms set
forth below as follows:
(i) “Corrupt practice” means the offering, giving,
receiving, or soliciting of anything of value to influence
the action of a public official in the procurement
process or in contract execution; and
(ii) “Fraudulent practice” means a misrepresentation of
facts in order to influence a procurement process or
the execution of a contract to the detriment of the
Employer, and includes collusive practice among
bidders (prior to or after bid submission) designed to
establish bid prices at artificial noncompetitive levels
and to deprive the Employer of the benefits of free and
open competition;
(iii) “Collusive practice” means a scheme or arrangement
between two or more bidders, with or without the
knowledge of the Employer, designed to establish bid
prices at artificial, noncompetitive levels; and
(iv) “Coercive practice” means harming or threatening to
harm, directly or indirectly, persons or their property to
influence their participation in the procurement
process or affect the execution of a contract;
(v) "Obstructive Practices" is
(aa) deliberately destroying, falsifying, altering or
concealing of evidence material to the
investigation or making false statements to
investigators in order to materially impede a
Employer's investigation in to allegations or a
corrupt, fraudulent, coercive or collusive
practice; and/or threatening, harassing or
intimidating any part to prevent it from disclosing
its knowledge matters relevant to the
investigation or from pursuing the investigation,
or
(bb) acts intended to materially impede the exercise
of the Employer's inspection and audit rights.
(b) Will reject a proposal for award if it determines that the
Bidder recommended for award has, directly or through an
agent, engaged in corrupt, fraudulent, collusive or coercive
practices in competing for the Contract in question;

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(c) Will sanction a firm or individual through the Government’s

Procurement Agency, including declaring them ineligible,
either indefinitely or for a stated period of time, to be
awarded a Government-financed contract if it at any time
determines that they have, directly or through an agent,
engaged, in corrupt, fraudulent, collusive or coercive
practices in competing for, or in executing, a Government-
financed contract; and

33.2 Furthermore, bidders shall be aware of the provision stated in Sub-

Clause 15.5 of the Conditions of Contract, Part II-Conditions of
Particular Application.
34. Warranty 34.1 The warranty bond shall be submitted to the Employer prior to
Bond issuance of any taking over certificate under the contract for any
section or the entire project road as the case may be in the
condition and amount as stated in the Particular Information to
Instruction to Bidders.

34.2 The Warranty Bond to be provided by the Contractor shall be issued

by a Local Bank, Insurance Company or Financial Institution
registered at the National Bank of Ethiopia in a format acceptable
to the Employer.

34.3 Upon the furnishing by the Contractor of a Warranty Bond in

accordance with the provisions of Clause 21 of the Conditions of
Contract, Part II-Conditions of Particular Application, the Employer
will issue a taking over certificate for any section or the entire
project road as the case may be.

34.4 Failure of the Contractor (Design-Builder) to provide the Warranty

bond with the requirements of Clause 21 of the Conditions of
Contract, Part II - Conditions of Particular Application shall
constitute sufficient grounds for the forfeiture of the Performance
Bond.

34.5 If the Contractor (Design-Builder) fails or refuses to provide the

Warranty remedy described under the Employer’s Requirement,
notwithstanding a valid request by the Employer, the Design-
Builder shall be liable for the cost of performance of the Warranty
work by others. The Employer may also call the warranty
performance bond

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Kofele- kore-Bekoji and Arsi Negelle-Bilallo Junction Ethiopian Roads Authority
Design and Build Road Project Bidding Document

SECTION III
PARTICULAR INFORMATION TO INSTRUCTIONS TO BIDDERS
Whenever there is a conflict, the provisions herein shall prevail over those in the Instructions
to Bidders.

ITB Clause
Particular Information
Reference
1.1 Ethiopian Roads Authority
Ras Abebe Aregay Street
P.O. Box 1770
Tel. +251-11-515 66 03/ 71 70/79
Fax. +251 11 5514866/51 00 82
Addis Ababa, Ethiopia Summary of the Works:
Name of Project: Construction of Kofele –Kore – Bekoji and Arsi Negelle
– Bilallo Junction Design and Build Road Project
Description of the Works:
The work of the above project comprises Design and Construction of
road. The project road is located in the Central part of the country, and lies
entirely in the Oromia National Regional State of the Federal Democratic
Republic of Ethiopia specifically in West Arsi and Arsi Zone. The project
road is multi-segment road as described here under.

- The Kofele – Kore – Bekoji(Koji Katara) road project starts from

Kofele town (X=476254 Y=782137), which is located from
shashemene about 25km and from addis ababa about 260km and
the project end at Koji Katara(X=515294 Y=829671), 15km from
Bekoji on Gobesa - Bekoji - Kersa road design project based on the
final route selection assessments. The total project length of this
project is approximately 69.3 km. The project road mainly passes
through farm land of Aris plane land of rolling and flat terrain
except some section which is mountainous at the end of the
project section and some settlements. The first road section from
Kofele to Shire has 5-6m all weathered road and the section from
Shire to Koji Katara is not fully accessible road due to big rivers
which could not be crossed during rainy season
- Arsi Negele – Bilalo Junction (Goljota) road project has a total
length of 20.6 km which starts from Aris Negele town
center(X=464073, Y=812829),which is 235km far from Addis Ababa
and end at (Goljota) (X=479722, Y=820408)a new woreda seat of
Heben Arsi Woreda after traveling through a farm land and
settlements. This road has 5-6m roadway width and dry weathered
road due to big rivers which could not be crossed during rainy
season

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ITB Clause
Particular Information
Reference
The works under this contract consists of design and Construction of 89.9
km road to DC5 (as per ERA’s 2013 Geometric Design Standard) with
Asphalt Concrete surfacing. The works also include the Design and
Construction of minor and major drainage structures, town sections,
junctions etc.

ERA intends to construct the project through a Design and Build contract
delivery strategy.
1.2 Time of completion of the project is 1095 Calendar Days including 120
Calendar Days of mobilization.
The Contract Period/ Duration also includes 365 Calendar Days of Defects
Liability Period plus four (4) years warranty period after the End of the
Defect liability Period.
1.3 Add the following to Sub-Clause 1.3:
Throughout these bidding documents, the terms “Contractor” and
“Design-Builder” are synonyms and they are used interchangeably in
these bidding documents.
2.1 1.0 Source of Fund:
The Government of Federal Democratic Republic of Ethiopia
3.8 Add the following new Sub-Clause 3.8 under Clause 3 - Eligibility
Requirements:
Bidders as part their bid shall submit a firm’s Article of Association,
Written power of attorney authorizing the signatory of the bid to commit
the Bidder. If the power of attorney is given to other than the owner of
the company mentioned on the trade license or the one authorized by the
firm’s Article of Association, it should be authenticated by the authorized
body for local Bidder and by the Ministry of Foreign Affairs for foreign
Bidders.
Note: - The Power of Attorney format attached in the Bidding Document is
only a sample and not intended for mandatory use by the Bidder.
3.9 Add the following new Sub-Clause 3.9 under Clause 3 - Eligibility
Requirements:
Joint Venture Requirements:
(a) The Joint Venture Agreement shall, as a minimum, show a joint
and several liabilities Clause, the proposed administrative
arrangements for the management and execution of the project,
the duties, responsibilities and share of each partner, the
authorized representative of the joint venture shall also be
included.

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ITB Clause
Particular Information
Reference
(b) A Contract Agreement to be entered with a successful Joint
Venture Bidder shall be signed by the Authorized Delegates of
each member firms of the Joint Venture.
5.1 Site visit is required to participate and bidders are advised to visit and
examine the site of works and its surrounding and obtain for itself on its
own responsibility all information that may be necessary for preparing the
bid and entering into contract for the design and construction of the
work.

7.1 “Employer’s Address to Request for Any Clarification:

Zekarias G/Giorgis
Engineering Procurement Directorate, Director
ERA Head Office, New Building, 1st Floor
Tel: +251-115-15-04-19/ 15-10-87
Email: [email protected]/ [email protected]
Addis Ababa, Ethiopia
A Pre-Bid Meeting/Conference “Shall Not be Held”.
However, bidders may forward the scanned copy of their official
quarries in a letter via the following email addresses before the deadline
for the submission of such request for clarification as indicated above. ”

7.2 In line 6, Delete “20 days” and replace by “10 Days”

8.4 Add the following new Sub-Clause 8.4 under Clause 8 - Amendment of
Bidding Documents
“ERA’s web site will also be official channel to issue clarification and
addenda. Responses through ERA web site will be considered as official.
Bidders are required to strictly follow ERA website for notifications
related to the subject project, and it will be assumed that the information
contained in the amendment will have been taken in to account by the
Consultant in its Bid Proposal.”
Furthermore, the Scanned Copy of ERA’s Official Letters of Clarifications,
Addenda, Notification and other Letters along with the corresponding
attachment, if any, will issued to all Bidders via the Procurement Team
Email Address indicated in the Bid Data Sheet. Hence, Contractors are
required/ strictly advised to follow ERA Website and their Email Accounts
for Notifications related to the Subject Project.”
10.1 Documentary Evidences such Audited Financial Statements, Specific
Experiences, Articles of Association and the other Relevant Company
Establishment Documents as well as the Power of Attorney of the firm

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ITB Clause
Particular Information
Reference
that are emanated outside the country of the Employer shall be
authenticated by the Ministry of Foreign Affairs, otherwise, will result in
rejection of the bid.
11.1 The Contract shall be for the whole works as described in Clause 1 of
these Instructions to Bidders, based on a total lump sum contract
amount.
11.6 Delete and replace Sub-Clause 11.6 to read as follows:
A. Foreign bidders shall quote entirely in the currency of the Employer’s
country but may specify the percentages, within the maximum
permissible limit of 15%) of the Bid Price (excluding Provisional Sums
and VAT) of freely convertible of foreign currency or currencies (up to
three) they require in accordance with Clause 11.
B. Local bidders are not allowed to quote foreign currency requirement,
i.e. they shall quote their offer fully in Ethiopian Birr and payment will
also be made in Ethiopian Birr only.”
12.1 Delete 12.1 of ITB, and replace it with the following:
The period of Bid Validity shall be 120 days from the latest date for
submission of bids, extended, if applicable, in accordance with the
provisions of Sub-Clause 17.2 of the Instructions to Bidders.
13.1
The Bid Security shall be a minimum of ETB Five Hundred Thousand (ETB
500,000.00).
13.2 (a)
ITB Sub-Clause 13.2 (a) is amended as follows:
Bid shall include a Bid Security (CPO or bank guarantee or bid bond) using
the form for bid security included in Section VII.
The Bid Security must be enclosed in the "Qualification Information and
Bid Security" envelope and will be opened only during the opening of the
"Qualification Information and Bid Security.
However, Conditional Bid Security (Bid Bond) is allowed only for local
Bidders. Conditional Bid Security is allowed for local bidders only.
13.2 (b)
ITB Sub-Clause 13.2 (b) is amended as follows:
Bid Securities shall be issued by a reputable institution selected by the
Bidder and located in any eligible country. If the institution or bank
issuing the guarantee is located outside the Employer’s Country, the Bid
Security shall be counter-guaranteed by an Ethiopian Bank.
13.2 (f) The Bid Security shall be valid for 148 days from the latest deadline for the
submission of bids.

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ITB Clause
Particular Information
Reference

13.3 Amend Clause 13.3 as follows:

The bid security of a Joint Venture Association (JVA) shall be in the name
of the JVA that submits the bid. If the JVA has not been legally
constituted at the time of bidding, the Bid Security shall be in the names
of all future partners as named in the letter of intent. Failure to meet this
requirement will result in rejection of bids.
14 Alternative offers and Variations in bidding document are not permitted
and submission/ inclusion of alternative offers and variations will lead to
rejection of the bid.

15.1 Number of copies shall be as follows:

1) ONE ORIGINAL plus THREE COPIES of Qualification Document
clearly marked as “Original” and “Copy” and
2) One Original plus THREE COPIES Financial Bid clearly marked as
“Original” and “Copy”. Each Copy (3 Copies) and One Original
Financial bid shall be sealed separately (4 seals) and all envelopes
containing the original and the copies shall be sealed in another
outer envelope.
16.2 The outer envelope shall bear:
Name and address of the Employer:
Director General Office
Ethiopian Roads Authority
Ras Abebe Aregay Street
ERA Head Office, New Building
2nd Floor, Conference Room
P.O. Box 1770
Tel. +251-11-515 66 03
Addis Ababa, Ethiopia

 Post Qualification, Bid and Bid Security for Construction Works of

Kofele- Kore – Bekoji and Aris Negelle – Bilallo junction Design
and Build Road Project
 Contract Identification No. __________________
 Provide a warning:
“Not to be opened before the time and date for bid opening”
The inner envelopes shall bear:
Envelope 1
 “Application for Post qualification” for Construction Works of

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ITB Clause
Particular Information
Reference
Kofele- Kore – Bekoji and Aris Negelle – Bilallo junction
Design and Build Road Project

 Contract Identification No. _________________

 Name and address of the Applicant

____________________________________
____________________________________
Envelope 2
 Submission of Bid for Construction Works of Kofele- Kore –
Bekoji and Aris Negelle – Bilallo junction Design and Build
Road Project
 Contract Identification No. ___________________

 Name and address of the Bidder

____________________________________
____________________________________
Envelope 3
 Bid Security for Construction Works Kofele- Kore – Bekoji and
Aris Negelle – Bilallo junction Design and Build Road Project
 Contract Identification No. ___________________

 Name and address of the Bidder

__________________________________
____________________________________

17.1 Deadline for submission of bids is:

 Date: _______________________
 Time: 2:30 P.M.

20.1 Venue, time, and date of bid opening are:

Venue
Ethiopian Roads Authority
Ras Abebe Aregay Street
ERA Head Office, New Building
2nd Floor, Conference Room
P.O. Box 1770

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ITB Clause
Particular Information
Reference
Tel. +251-11-515 04 19
Addis Ababa, Ethiopia

Date: ____________________
Time: 2:30 P.M
25.8 Add the following new Sub-Clause 25.8 under Clause 25 - Evaluation and
Comparison of Bids:
“Source of Exchange Rate: National Bank of Ethiopia
“Exchange Rate Date: The exchange rate date shall be 28 days prior to
the latest date for submission of Bids.”
26.1 Domestic bidders shall receive a 7 ½ percent of margin of preference.
Add new Sub-Clause 27.4:
Sub-Clause 27.4
The tender for the project is floated concurrently in a package together with the
following projects:

Estimated Project
Item Pavement Contract Procureme
Project Name Length Duration
No. Type Delivery nt Type
(Km) (Years)
Construction
works of Kofele –
Kore- Bekoji and
1. 89.9 AC 3.0 DB ICB
Arsi Negelle –
Bilallo Junction
Road Projecg
Sub Clause 28.3 Add new Sub-Clause 28.3 as follows;
If the bid, which results in the lowest evaluated bid price, is seriously
lower than the engineer’s estimate of the items of work to be performed
under the contract, the Employer may require the bidder to produce
detailed price analyses for any or all items of the work including design
assumptions and analyses.
30.2 The Performance Security shall be provided in the form of a Bank
Guarantee in the case of foreign firms.

If the institution issuing the Performance Security is located outside the

Employer’s Country, the security shall be counter-guaranteed by an
Ethiopian Bank.
30.3 The Performance Security may be provided in the form of an Insurance
Bond only in the case of local firms.
32 Dispute Review Method:
Dispute Review Expert, as defined in Section XII of the Bidding

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ITB Clause
Particular Information
Reference
Documents.
34.1 In ITB Sub clause 34.1, delete the word “taking over certificate” and
replace it with “performance certificate”.

The Warranty bond shall be in the form of an Unconditional

Guarantee/bond from a Bank in an amount of ten (10) percent of the
contract price for any section or the entire project road as the case may
be in accordance with the clause 21 Particular Conditions of Contract and
Employer’s Requirement.
34.3 In ITB Sub clause 34.3, delete the word “taking over certificate” and
replace it with “performance certificate”.

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to Bidders
 Ethiopian Roads Authority
Bidding Document

Section IV: Conditions of Contract

Part I - General Conditions

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Part I: General Conditions of Contract
 Ethiopian Roads Authority
Bidding Document

Section IV - Part I: General Conditions of Contract

Employer: Ethiopian Roads Authority

Name of Contract: Kofele –Kore – Bekoji and Arsi Negelle – Bilallo Junction Design and
Build Road Project

CONDITIONS OF CONTRACT

PART I: GENERAL CONDITIONS

The Conditions of Contract, Part I: General Conditions shall be those forming Part I of the
“Conditions of Contract for Design-Build and Turnkey,” first edition 1995, prepared by the
Fédération Internationale des Ingénieurs-Conseils (FIDIC). These Conditions are subject to the
variations and additions set out in Part II hereof entitled “Conditions of Particular Application.”

Copies of the FIDIC Conditions of Contract can be obtained from:

FIDIC Secretariat
P.O. Box 86
1000 Lausanne 12
Switzerland

Facsimile: 41 21 653 5432

Telephone: 41 21 653 5003

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Part I: General Conditions of Contract
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SECTION V - CONDITIONS OF CONTRACT, PART II: CONDITIONS OF PARTICULAR

APPLICATION

1. The Contract

Sub-Clause 1.1 Delete Sub-Clause 1.1.1-Documents and replace it with the

Definition following:

1.1.1.1 “Contract’ means these conditions of contract (Parts I and II), the
completed contract agreement and the following agreed
documents:
 The Employer’s Requirements
 The Contractor’s Offer
 The Letter of Acceptance
 Further documents as may be expressly incorporated in
the Letter of Acceptance
1.1.1.2 “Employer’s Requirements” means the agreed description of the
scope, standard, specifications, design criteria and programme of
work as included in the contract, and any alternations and
modifications there to in accordance with the Contract.

1.1.1.3 “Offer” means the Contractor’s prices submitted to the Employer

for the Works as accepted by the Letter of Acceptance and replace
the word “Tender” with “Offer” wherever it occurs in this
contract.

1.1.1.4 “Appendix to offer” means the completed appendix comprised in

the “Offer” and replaces the word “Appendix to Tender” by
“Appendix to Offer”.

1.1.1.5 “Contractor’s Proposal” means the discussed preliminary design

(Scope design) as included in the Contract.

1.1.1.6 “Schedules” means the agreed information and data submitted

with the Offer as included in the Contract.

1.1.1.7 “Schedule of Payments” means the schedule designated as such

(if any) referred in Sub-Clause 13.4.

1.1.1.8 “Letter of Acceptance” means the formal acceptance of the Offer

by the Employer”

1.1.1.9 “Contract Agreement” means the completed contract agreement

referred to in Sub-Clause 1.5

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1.1.1.10 “Minutes of Pre Contract Award Discussion” means the Minutes

signed by the Employer and the Contractor in which mutual
agreement is reached on the Employer’s Requirements, the Offer,
the Contractor’s proposal, and the schedules and other documents
deemed necessary for the proper execution of the design and
subsequently the works.

1.1.1.11
i. “Exceptionally adverse weather”: – A monthly metrological
weather record beyond the peak of the past 10 years monthly
metrological data at a place specified in the appendix to bid. The
average of daily records of each month will be considered as
monthly metrological data of the specified place for the past 10
years.
ii. “Adverse weather”: – a peak monthly metrological weather
record of the past ten years at a place specified in the appendix to
bid. The average of daily records of each month will be considered
as monthly metrological weather record of the specified place for
the past 10 years.
The words “weather” and “climate” have been used
interchangeably in this Conditions of Contract.
1.1.1.12 “Mandatory Subcontracting Requirement”: refers to the
Contractor's mandatory obligation to subcontract part of the main
works as per the requirement of the Contract.
1.1.2 1.1.2.1 The Employer is: the party stipulated in the “Appendix to
Bid”
1.1.2.2 The Contractor is: the party stipulated in the “Appendix to
Bid”
1.1.2.3 The Employer’s Representative is: An independent
consulting firm which shall be appointed by the Employer and
notified to the Contractor
1.1.2.4 The Contractor’s representative is: The Contractor’s Project
Manager at site
1.1.2.6 Replace the phrase “Adjudication Board” by the phrase
“Dispute Review Expert”.

1.1.3 1.1.3.1 The Base Date could be defined as a particular calendar

date
1.1.3.4 “Time for completion” means the time for completing the
works and passing the Tests on Completion. It is 36months from
the commencement Date or as extended under Sub-Clause 8.3 and
12.3 plus 365 days of defects liability period.

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1.1.3.7 “Warranty Period” means a period of four (4) years

excluding 365 days of Defects Liability Period after the issuance of
Performance certificate. The detailed condition of the warranty is
as stipulated the Employer’s Requirement.
1.1.1.13 “Definition of Contract Price” : the lump amount stated in
the Contract Agreement/ Letter of Acceptance which the
Employer will pay to the Contractor in consideration of the
design, execution, completion and maintenance of the works by
the Contractor.

Sub Clause 1.1.6 Please add Sub-Clause 1.1.6.10 as follows:

Other Definitions “1.1.6.10 “In addition to the Site, as defined in Clause 1.1.6.10, the
Employer will provide to the Contractor, free of charge, such land
as the Contractor may reasonably require for road reserve,
camps, workshops, diversion roads, borrow pits and quarries.
However, the Contractor shall be liable for all payments or
compensation in connection with acquisition of land for spoil area
and dumping of spoil materials. The Contractor shall give to the
Employer’s Representative with a copy to the Employer, not less
than four months prior notice of his requirement for the above-
mentioned land requirement for road reserve in rural section,
detour, borrow pits, quarry, stockpiling area and Six months for
road reserve in urban (town) section. Identification of land
required for the works shall ensure environmental, safeguards
and operational health safety requirements of ERA’s
Environmental and Social Management Manual and as well as the
National Government Environmental Policies and Guidelines. The
contractor shall propose quarry, spoil areas and borrow sites
away from settlement and environmentally sensitive areas (water
bodies, national parks, reserved areas, controlled hunting areas,
Archeological and cultural significant sites). Perennial River beds
and forested area shall not be selected for quarrying, spoil area
and borrow pits. The Contractor shall prepare environmental plan
of quarry, spoil areas and borrow sites as part of the Employer’s
Requirement for Environmental Management Plan. The final
selection should be approved, considering the proposed land
ensures environmental, safeguards and operational health safety
requirements, by the Local Administrations, the Engineer and
Environmentalists from the ERA.
The Employer shall be responsible for all negotiations and
compensation to property owners. To that end, the Employer
requires up to 4 months for the acquisition of land in rural areas
and up to 6 months for acquisition of land in urban areas; and the
contractors work program and request for acquisition of land
should take in to account this lead time. The contractor shall not
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enter property outside the road reserve without written

confirmation from the Engineer/Employer that the necessary
negotiations with the property owner have been satisfactorily
concluded.”
Sub-Clause 1.6 Amend the priority of documents list as follows:
Priority of 1) The Contract Agreement;
Documents
2) The Letter of Acceptance;
3) Minutes of Pre-contract award discussion;
4) Addendum to the bidding document, Contractor’s Offer,
Appendix to Bid/Offer and Payment Schedules;
5) The Conditions of Contract, Part II
6) The Conditions of Contract, Part I (Conditions of Contract
for Design-Build and Turnkey; First Edition 1995; FIDIC);
7) Employer’s Requirement;
8) Anti-Bribery Pledge Form;
9) Performance Security;
10) Forms of Advance Payment; and Form of Advance
payment Utilization Agreement;
11) Disputes Settlement Procedure; and
12) Form of Warranty Bond.

2. The Employer
Sub-Clause 2.2b Delete the phrase “Plus reasonable profit”

Sub-Clause 2.4 In the last sentence Replace “six years” with “six months”
Employer’s
Entitlement to
Terminate
3. The Employer’s Representative

Sub-Clause 3.1 The Employer’s Representative shall obtain the specific approval
Employer’s of the Employer before taking any of the following actions
Representative’s specified in Part I:
Duties and (a) Consenting to the sub-letting of any part of the works;
Authority (b) Certifying additional cost;
(c) Awarding an extension of time;
(d) Issuing any variation in any single occurrence, which
exceeds ETB 500,000.00(five hundred thousand Ethiopian
Birr);
(e) Issuing any variation, if the sum of all variations issued has

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exceeded 1% of the contract Price;

(f) Certifying payment if the contract price will be exceeded;
(g) Issuing any taking-over certificate;
(h) Authorising the use of provisional sums in excess of the
monetary limit for variations; and
(i) Issuing a Defects Liability Certificate.
(j) Ordering suspension of work;

Notwithstanding the obligation, as set out above, to obtain

approval, if in the opinion of the Employer’s Representative, an
emergency occurs affecting the safety of life or the works or of
adjoining property, he may, without relieving the Contractor of any
of his duties and responsibilities under the contract, instruct the
Contractor to execute all such works or to do all such things as
may, in the opinion of the Employer’s Representative, be
necessary to abate or reduce the risk. The Contractor shall
forthwith comply, despite the absence of approval of the
Employer, with any such instruction of the Employer’s
Representative. The Employer’s Representative shall determine in
addition to the Contract price, and shall notify the Contractor
accordingly, with a copy to the Employer.

Sub-Clause 3.5 Add the following paragraph at the end of Sub-Clause 3.5:
Employer’s “Reference shall be made to this Clause whenever these
Representative to conditions provide that the Employer’s Representative shall
Attempt consult with each party in an endeavour to reach agreement
Agreement within 56 days after receipt of notice. If agreement is not achieved,
the Employer’s Representative shall make a fair determination in
accordance with the Contract, taking due regard of all relevant
circumstances. The Employer’s Representative shall give notice to
both parties of each agreement or determination with supporting
particulars.”

4. The Contractor
Sub-Clause 4.2 Replace the text of Sub-Clause 4.2 with the following:
Performance
Security The Contractor shall provide security for his proper performance
of the Contract to the Employer within twenty-eight (28) days
after receipt of the Letter of Acceptance. The performance
security shall be in the form of a bank/insurance guarantee in the
amount and form, as stipulated by the Employer in the Appendix
to Bid and Conditional Performance security is allowed only for

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local bidders. The performance security shall be in the types and

proportions of currencies in which the Contract Price is payable.
The Contractor shall notify the Engineer when providing the
performance security to the Employer.

The performance security shall be issued by a bank located in the

country of the Employer. If the institution or bank issuing the
Performance Security is located outside the Employer’s Country,
the security shall be counter-guaranteed by an Ethiopian bank.

Without limitation to the provision of the preceding paragraph,

whenever the Employer’s Representative determine to the
Contract Price as a result of a change in cost and/or legislation or
the result of a variation amounting to more than 25 percent of
the portion of Contract Price payable, the Contractor, at the
Employer’s representative’s written request, shall promptly
increase the value of the performance security by an equal
percentage at his own cost. The performance security of a joint
venture shall be in the name of the joint venture.

The performance security shall be valid until a date 28 days from

the date of issue of Final Taking-Over Certificate or Defect
Liability Certificate. It shall be returned to the Contractor within
14 days of the issue of the Performance Certificate and after the
Contractor’s submission of acceptable Warranty Bond.

“The Contractor shall extend the validity of the performance

security following any extension of time that may be granted to
the Contractor. If the Contractor fails to maintain the validity of
the performance security during the execution of the project, the
Employer may have the performance security renewed/extended
and pay any premiums as necessary for that purpose after giving
prior notice and reasonable period to the Contractor to renew
the same. The Employer/Employer’s Representative will deduct
the corresponding amount effected for such premiums from the
Contractor’s outstanding/upcoming payments. The security shall
be returned to the Contractor within 14 days of expiration.”
Sub-Clause 4.3 In the first paragraph replace “effective date” by “Letter of
Contractor’s Acceptance”
Representative Add the following sentence at the end of Sub-Clause 4.3:
If the Contractor’s Representative is not fluent in the English
language, the Contractor shall make a competent interpreter
available during all working hours.

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Sub-Clause 4.5 Amend Sub clause 4.5(b) as follows:

Subcontractors “The prior consent of the Employer’s Representative and the
Employer shall be Obtained to other Proposed subcontractors;”

Sub-Clause 4.5 Add the following Sub-Clauses (Sub-Clauses 4.5(e) to 4.5q)

Subcontractors under Clause 4.5:

Sub-Clause 4.5 (e) Subcontracting shall be confined to the minimum and maximum
Limit of value, type of the works and minimum number of domestic
Subcontracting Subcontractors set out in the Appendix to Bid.

Sub-Clause 4.5 (f) Subcontractors employment shall be carried out as per the
Subcontracting evaluation criteria and procedures set out in the Appendix to Bid.
Selection
Procedure The Engineer shall evaluate and give consent to all subcontracts
except for the Subcontractors which are already approved and
listed in the main contract.

Selection of all subcontracts with a subcontract amount above 5%

of the main Contract Price shall obtain approval from the
Employer.

Sub-Clause 4.5 (g) The Contractor shall use standard Conditions of Subcontract and
Subcontract procedures set out in the Appendix to Bid when entering into a
Agreement Contract with the Subcontractors. To this end, the Contractor
shall submit for the Engineer's consent the draft subcontract
agreement of all subcontracts. The draft subcontract document
of all subcontracts with a subcontract amount above 5% for the
main Contract Price shall obtain approval from the Employer.

Sub-Clause 4.5(h) The Contractor shall pay to the Subcontractor when paid by the
Payment to Employer for the works executed by the Subcontractor that are
Subcontractor measured and certified by the Engineer. Alternatively, the parties
(the Contractor and Subcontractor) may agree that the
Subcontractor to collect the payment directly from the Employer
with submission of written agreement to the Employer.

In the case of payment to the Subcontractor by the Contractor;

before issuing, under Clause 13, any certificate, the Engineer shall
be entitled to demand from the Contractor reasonable proof that
all payments, less retentions, included in previous certificates in
respect of the work such Subcontractors have been paid or
discharged by the Contractor. If the Contractor fails to provide
such proof then, unless the Contractor satisfies the Engineer in
writing that he has reasonable cause for withholding or refusing
to make such payments as per the subcontract agreements, the
Employer shall be entitled to pay such Subcontractors direct,

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upon the certificate of the Engineer, all payment, less retentions,

provided for in the Subcontractors, which the Contractor has
failed to make to such Subcontractors and to deduct by way of
sett-off the amount so paid by the Employer from any sums due
or to become due from the Employer to the Contractor.

Provided that, where the Engineer has certified and the Employer
has to pay direct as aforesaid, the Engineer shall, in issuing any
further certificate in favor of the Contractor, deduct from the
amount thereof the amount so to be paid, direct as aforesaid,
but shall not withhold or delay the issue of the certificate itself
when due to be issued under the terms of the contract.
Sub-Clause 4.5(i) Subcontractors named in the Contract shall comply with the
Eligibility of eligibility rules and requirements of the Government financed
Subcontractors Projects and the Contractor shall be required to ensure that their
contracts include all the conditions applicable to the main
contract.

Sub-Clause 4.5(j) The Contractor, from time to time, shall evaluate the
Performance of performance of its sub-Contractors based on pre-determined key
Subcontractors performance indicator.

Sub-Clause 4.5(k) The Contractor shall only be entitled to terminate the

Termination and Subcontract agreement based on Subcontract agreement
Replacement of termination procedure.
Subcontractors The Contractor shall notify the Engineer any termination of
subcontract agreements. If the terminated Subcontractor is a
Subcontractor engaged as Mandatory Requirement, the
Contractor shall replace same following the Subcontractors
selection procedure stipulated in this contract

Sub-Clause 4.5(l) The Contractor shall provide to the Sub-Contractor such portion
Provision of Quarry of the quarry and borrow areas whereby the Sub-Contractor shall
Sites and Borrow produce, process and stock pile materials required for the Sub-
Areas to the Contract Works in such manner as the Sub-Contractor is able to
Subcontractors achieve the production required in accordance with the Sub-
Contract Work Programme

Sub-Clause 4.5(m) The Contractor shall allow the Subcontractors to use the
Sharing of Contractor's laboratory and the laboratory technicians for the
Laboratory with subcontract works.
the Subcontractors

Sub-Clause 4.5(n) The Subcontractor shall be deemed to have full knowledge of the
Subcontractors’ provisions of the Main Contract and the Main Contractor shall

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Knowledge of the provide the Sub-Contractor with a true copy of the Main
Main Contract Contract. (Other than the details of the Contractor's prices as the
case may be)

Sub-Clause 4.5(o) The Main Contractor shall from time to time make available to
Access of the the Sub-Contractor such part or part of the Site and such means
Subcontractor to of access thereto within the site as shall be necessary to enable
the Site the Sub-Contractor or execute and complete the Sub-contract
Works in accordance with the Subcontract agreement.

Sub-Clause 4.5(p) The Master Work Programme shall be established and forwarded
Construction to the Sub-Contractor by the Main Contractor when approved by
Programme for the Employer’s Representative/the Engineer. The Master Work
Sub-Contract Programme shall be the basis for production of the Sub-Contract
Works Work Programme. The subcontract programme shall be
submitted for the Engineer's information.

Sub-Clause 4.5(q) The Contractor shall be considered as non-performing for

Engagement of upcoming tender if the Contractor couldn’t propose and engage
Mandatory the mandatory Subcontractor until 50% of the original contact
Subcontractor period is elapsed.”

Sub-Clause 4.9 Amend the first paragraph as follows:

Site Data “The Contractor shall be responsible for collecting and
interpreting all data on hydrology and sub-surface condition of
the site and studies on environmental impact. Any data made
available by the Employer shall not absolve the Contractor from
his obligations under the contract.”

Sub-Clause 4.11 Delete sub clause 4.11 in its entirety

Unforeseeable
subsurface
condition
Sub-Clause 4.14 Delete Sub-Clause (a) to (d) and replace by:
Programme The Programme shall be submitted in two copies in the form of a
Critical Path Method Network (CPM Network) showing the order
of procedure and description of the construction methods and
arrangements by which he proposes to carry out the Works. In
addition, the aforesaid critical path programme should be
supplemented by:
(i) Provision of the carrying out the road design (which shall
not exceed Six (6) months from commencement) and
Employer’s Representative’s Site facilities including adequate
transport facilities, complete with all services, fully furnished and
equipped and functional in all respects, to the Employer
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Representative’s satisfaction;
(ii) A Gantt/time-bar chart detailing each construction
activity, showing for each construction activity; the periods of
construction activity planned; the percentage completion
anticipated per month; the total estimated quantity of work; the
average monthly production planned;
(iii) A detailed work method statement in respect of each
construction activity. It should also be supplemented by a time-
bar chart of the same programme. The Programme shall be co-
ordinated with climatic, groundwater and other conditions to
provide for the completion of the works in the order and by the
time specified. The Programme shall be revised at least on
quarterly intervals and should include a chart of the principal
quantities of the forecast for execution monthly; and
(iv) Provision of the detail plan for Right of Way clearance
request and the detail plan for setting out after the relevant
Right of Way is cleared and handed over.
(v) The Contractor shall take into consideration under its
Programme the expected delay caused by adverse weather
condition as defined under Sub-Clause 1.1.1.11 of the particular
conditions of contract. The 10 years’ historical weather record
shall be attached with the work programme.
The programme shall detail the equipment and labour resources
to be allocated to each and every construction operation, and
shall aggregate, on a weekly basis, all equipment and labour, to
show the total numbers of each category of equipment and
labour required at any given time in order to allow the
Contractor to adhere to the programme.
The Contractor shall prepare his work program by prioritizing
obstructions free sections along the project length. In this
regard, the Contractor shall allow in his Programme reasonable
consideration in respect to time for the operations and execution
works in towns and/or villages to enable the Employer to provide
possession of site and relocation of utilities. Extension of time
should not be granted unless the Contractor completes the
possessed free sections in sequential manner at least up to sub-
base level. The Contractor shall prepare Time space diagram
along with his work programme that clearly shows and specify
which section of the work and when is to be executed. The
Employer shall be entitled to rely upon the Work programme
consistent with actual progress when planning its activities of
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Possession of Site and will not be bound by Contractor’s Original

program.
The programme shall detail the Contractor’s intentions for
mobilization at the Site, clearly stating deadlines for completion
and delivery dates, as appropriate, and shall include but shall not
be limited to provision of the Contractor’s establishment,
including offices, accommodation, workshops, secure stores,
complete and, in the Employer Representative’s opinion,
adequately serviced, furnished and equipped and functional in all
respects.
The detailed work method statement of each particular
construction activity shall be listed by category/type and quantity
the labour, skilled labour, supervisors, plant, equipment and
materials to be employed on the particular construction activity;
together with: the estimated average daily production
anticipated; the estimated equipment availability and utilization
factor anticipated; and a detailed step description of the way in
which resources are to be utilized to achieve the construction.
The Contractor shall submit to the Employer’s Representative a
general description of his proposed arrangements and methods
for the execution of the Works, including, inter alias, temporary
offices, buildings, access roads, construction equipment and its
intended production output, working shift arrangements, labour
strength, skilled and unskilled, and supervision arrangements,
power supply arrangements, supply of materials including a
materials utilization programme, stone crushing, aggregate
production and storage, cement handling, concrete mixing and
handling, methods of excavation, dealing with water, testing
methods and facilities.
The program shall be coordinated with climatic, groundwater
and other conditions to provide for the completion of the Works
in the order and by the time specified. The program shall be
revised at quarterly intervals and should include a separate chart
of the principal quantities of work forecast for execution
monthly, for the subsequent quarter.
The Contractor’s attention is particularly drawn to the need to
familiarize himself with customs procedures in connection with
importation, and to allow sufficient time in its programme for
these to be completed.
The Employer’s Representative shall give his comment within 14
days of receipt of the Contractor’s work program and the
Contractor shall re-submit the corrected work program after
addressing the Employer's Representative's comment. Following
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this, the Employer’s Representative and the Contractor shall

make a presentation of the assumption and the details analysis
of the corrected work program to the Employer. The same shall
be consented by Employer/ Employer's Representative within 2
months of Commencement of the Works.
The Contractor shall promptly give notice to the Employer’s
Representative of specific probable future events or
circumstances which may adversely affect the work increase the
Contract Price or delay the execution of the Works.
If, at any time, the Employer’s Representative gives notice to the
Contractor that a programme fails (to the extent stated) to
comply with the Contract or to be consistent with actual
progress and the Contractor’s stated intentions, the Contractor
shall submit a revised programme to the Employer’s
Representative in accordance with this Sub-Clause.
The Contractor shall not be allowed to commence permanent
work until work program is consented as indicated above.
If details of the Contractor’s proposals for Temporary Works are
required by the Employer’s Representative for his own
information the Contractor shall submit such detail within
fourteen days of being requested to do so.
The various operations pertaining to the Works shall be carried
out in such a progressive sequence so as to achieve a continuous
and consecutive output of fully completed road works inclusive
of bridge works and culverts within the time limits specified in
the Contract.
“The Contractor shall, wherever required by the Employer’s
Representative, also provided in writing for information a
detailed description of the arrangements and methods which the
Contractor proposes to adopt for the execution of any particular
part of the Works as directed by the Employer’s Representative.
Progress reporting by the Contractor should be supported on a
monthly basis with an up-to-date analysis of the progress
including a statement on items which are or are about to become
critical to the Progress of Works, along with proposals on how
the Contractor intends to address the situation.
Notwithstanding the above, in addition to the programme of
pure construction activities, the Contractor shall prepare and
submit the following environmental and social safeguard plans
within one month after commencement of the works for review
and approval of the Employer’s Representative. Each plan shall

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be separate and independent and at a minimum shall meet the

requirements or recommendations shown in the Technical
Specifications and the relevant guidelines and laws:
 Site Environmental and Social Management Plan
(SESMP) as specified in Clauses 1603 to 1612 the
Technical Specifications;
 Traffic Management Plan as specified in Division 1500 the
Technical Specifications;
 Health and Safety Plan as specified in Clause 1613 the
Technical Specifications;
 Plan for the implementation of an HIV/AIDS alleviation
programme in line with Clause 1614 the Technical
Specifications;
For each component, the programme shall include performance
monitoring checklist and indicators separately as well as the
detail the resources to be provided or utilized and any related
sub-contracting proposed.
“The plan shall be approved by the Employer’s Representative
within two month of Commencement of the Works.”
Supplementary Programme
The Contractor shall submit supplementary programmes to the
Employer’s Representative. The supplementary programme shall
be consistent in all respects with the time and order-of-work
requirements of the Contract and based upon the portions of the
Works already completed at the submission thereof.
Supplementary programmes shall not be requested at less than
monthly intervals.
Public Holidays
The Contractor shall allow in his Programme for the following
public holidays per calendar year as observed in the Federal
Democratic Republic of Ethiopia and upon which days the
Contractor shall not be permitted to work:
Ethiopian Christmas Day
Ethiopian Epiphany
Victory of Adwa Commemoration Day
Eid-Al-Fatir (Ramadan)
Ethiopian Good Friday
Labour Day
Eid-Al-Adha (Arafa)

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Birthday of Prophet Mohammed(Maulid)

Ethiopian New Year
The finding of the True Cross (Meskel)
Ethiopian Easter
Down fall of the Dergue
Ethiopian Patriots Victory Commemoration Day
The Contractor shall also allow per calendar year for a further
two unspecified public holidays, which may be announced by the
Federal Democratic Republic of Ethiopia with no prior
notification, and upon which days he shall not be permitted to
work.
The Employer shall have the right to withhold payment in the
amount indicated in the Appendix to Bid if the Contractor fails to
submit the master work programme or revised construction
programme. The amount thus withheld will be eligible for
reimbursement in the Interim Payment Certificate for the month
following the month of submittal of the Programme.
Sub-Clause 4.15 Replace “14 days” by “five days”
Progress Reports

Sub-Clause 4.18 Delete the contents of Sub-Clause 4.18 entirely and replace them
Protection of the by:
Environment “The Contractor shall, throughout the execution and completion
of the Works and the remedying of any defects therein:
a) have full regard for the safety of all persons entitled to be
upon the Site and keep the Site (so far as the same is under
his control) and the Works (so far as the same are not
completed or occupied by the Employer) in an orderly state
appropriate to the avoidance of danger to such persons,
b) provide and maintain at his own cost all lights, guards,
fencing, warning signs and watching, when and where
necessary or required by the Employer’s Representative or by
any duly constituted authority, for the protection of the
Works or for the safety and convenience of the public or
others,
c) take all reasonable steps to protect the environment on and
off the Site and to avoid damage or nuisance to persons or to
property of the public or others resulting from pollution,
noise or other causes arising as a consequence of his methods
of operation.

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d) Notwithstanding the Contractor’s obligation under sub-

paragraphs (a), (b) and (c) of this Sub-Clause, the Contractor
shall carry out, without limitation, the following measures
with a view to reducing or eliminating adverse environmental
effects of the Works:
(i) all quarries, borrow pits, diversions and detours shall
be filled and landscaped, as far as practical, to their
original condition after extraction of construction
material.
(ii) soil erosion due to surface runoff or water from
culverts or other drainage structures should be
avoided by putting in place proper erosion control
measures.
(iii) long traffic diversion roads shall be avoided so as to
minimise the effect of dust on the surrounding
environment. In any case, all diversions shall be kept
damp to reduce dust.
(iv) haulage routes shall be kept as short as possible,
and watered as necessary.
(v) spillage of oil, fuel, and lubricants shall be avoided. If
spilt, they shall be collected and disposed of in such
a way as not to adversely affect the natural
environment.
(vi) rock-blasting near settlement areas shall be properly
coordinated with the relevant officers of the
Employer’s government in an attempt to minimize
levels of noise pollution and community
interference.
e) The formulation and enforcement of an adequate safety
programme shall be the obligation of the Contractor with
respect to all the works under this Contract, regardless of
whether performed by the Contractor or his Sub-Contractors.
The Contractor shall, within 14 days after commencement of
the Works, meet the Employer’s Representative to present
and discuss his plan for the establishment of such safety
measures as may be necessary to provide against accidents,
unsafe acts, and so forth. Within 28 days after
commencement of the Works, the Contractor shall submit a
written safety, security and environmental protection
programmes to the Employer’s Representative covering the
overall works and based on the laws and regulations of
Ethiopia. In addition, he shall prepare special safety

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programmes for blasting and handling of explosives as may

be stipulated in the Employer’s Requirement.
f) The Contractor shall take all due precaution to avoid soil and
water contamination by spillage of oil, grease, fuel and paint
in the equipment yard, workshop or site of work.
g) The Contractor shall install pollution control device in his
plants.
h) The Contractor shall implement re-plantation and grading of
steep slopes in quarries and borrow pits to prevent
disfiguration of landscape.
i) The Contractor shall implement compensatory afforestation
plan to counteract destruction of vegetation when required
to do so by the Employer’s representative. The Contractor
shall pay proper attention to the aspect of borrow pit
drainage to prevent formation of stagnant pools of water and
incidence of mosquito vectors. All borrow pits will be
provided with efficient drains which shall be connected to the
natural outfalls.
j) Notwithstanding implementation of any other provision
contained in the Conditions of Contract, the failure on the
part of the Contractor or his staff in the cases listed below will
be considered default on the part of the Contractor.
 Poor sanitation and solid waste in the worker’s camp
 Possible transmission of communicable diseases
between local people and the Contractor’s workers,
including HIV/AIDS
 Poaching by the Contractor’s workers
 Illegal invasion of indigenous people by Contractor’s
labour.
k) All lights provided by the Contractor shall be screened so as
not to interfere with any traffic or signal lights of any local or
other authority.
l) The Contractor shall be deemed to be in possession of and
ensure that the Contractor’s personnel are fully aware of
relevant safety regulations.
m) The Contractor shall ensure that all equipment, tools and
other items used in accomplishing the Works, whether
purchased, rented or otherwise provided by the Contractor
are in safe, sound and good condition for performing the
intending function.

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n) The Contractor shall throughout the contract (excluding the

Defects Liability Period):
(i) conduct information, Education and Consultation (IEC)
campaign, at least every other month, addressed to all the
Site staff and labour (including all Contractor’s Employees,
all Subcontractors and Consultant’s employees, and all
truck drivers and crew marketing deliveries to Site) and to
the immediate local communities, concerning the dangers
and impact of Sexually Transmitted Diseases (STD) in
general and HIV/AIDS in particular;
(ii) provide male or female condoms for all Site staff and
labour as appropriate; and
(iii) provide for STD and HIV/AIDS professional screening,
diagnosis, counselling and full treatment (except that in
the case of HIV/AIDS cases treatment shall be limited to
referral to a dedicated national or regional HIV/AIDS
program) of all Site staff and labour.
Measures against Insect and Pest Nuisance

The Contractor shall at all times take the necessary precautions

to protect all staff and labour employed on the Site from insect
nuisance, rats, and other pests and reduce the dangers to health
and the general nuisance caused by the same. The Contractor
shall provide his staff and labour with suitable prophylactics for
the prevention of malaria, and shall take steps to prevent the
formation of stagnant pools of water. He shall comply with all
the regulations of the local health authorities in these respects
and shall in particular arrange to spray thoroughly with approved
insecticide all buildings erected on the Site. Such treatment shall
be carried out at least once a year or as instructed by the
Employer’s representative. The Contractor shall warn his staff
and labour of the dangers of bilharzias and wild animals.
95% of the payment that are related to site clearance and
earthworks shall be incorporated in the payment certificate
before the application of retention money, when the contractor
fulfils all the required works that are stipulated under the
relevant Clauses/ Specification/Quantities/Drawings of the
contract. Whereas, the remaining 5% of the withheld amount that
is related to the abovementioned pay items will be released,
when the Contractor executes all the necessary environmental
reinstatement and impact management plan as per the relevant
provisions of the contract document. In cases where the

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Contractor maintains his negligence of undertaking the

necessary reinstatement and environmental protection works,
after two instances of warning, the Employer is at liberty to
utilize the withheld amount for any activities related to the
reinstatement works either by assigning another Contractor to
execute the work and/ or to remedy any damage emanated as a
result of the Contractor’s failure to timely rectification that are
not covered by the surety and/ or to execute the work by other
means. Nevertheless, the implementation of the
abovementioned mechanism does not jeopardize the Employer’s
remedial rights that are stipulated under different sections of the
Contract, in cases where the Contractor becomes in default of
the reinstatement works.
Furthermore, the Contractor shall submit his reinstatement
methodology for the specifically requested site while submitting
possession of site requests for quarries and borrow sites.
Accordingly, possession of site requests that are not
accompanied with such methodologies or methods that are
deficient, in the opinion of the Employer’s Representative will
automatically be rejected. In addition, the Contractor shall
undertake the reinstatement works in strict adherence to the
captioned methodology and based on the applicable clauses of
the Contract document.
Final Payment to the Contractor will not be released unless
submission of clearance certificate is provided by ERA for the
Reinstatements of all the Construction sites.

Sub-Clause 4.19 Amend the Text of this Sub-Clause to read:

Electricity, Water The Contractor shall use his own arrangements for electricity,
and Gas water, gas and other services as may be available on the Site and
of which details are given in the Employer’s Requirements. The
Contractor shall, at his risk and cost provides any apparatus
necessary for his use of these services. The Contractor shall also
provide Electricity, Water and Gas to the Employer’s
Representative as quantified in the Employer’s Requirements.
The quantities consumed by the Employer’s Representative shall
be covered in the Contract.
Clause 4.25 Add to Clause 4, the following new Sub-Clause 4.25:
General
Requirements (a) Materials available on the site or materials made available or
supplied by the Employer shall be used solely for the
execution of the Works;

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(b) The Contractor shall minimise the pollution of and

disturbance of lands, roads and other places on and around
the Site. No trees or other vegetation shall be removed
except to the extent necessary for the works;
(c) The Contractor shall comply with the current Government
regulations with regard to the transport, storage and use of
explosives and radio-active materials and radio
communication equipment;
(d) The Contractor shall take all reasonable precautions:
(i) in connection with any rivers, streams, waterways,
drains, water courses, lakes and the like to prevent as a
consequence of the works, silting, erosion of beds and
banks and pollution of the water so as to affect
adversely the quality or appearance thereof or cause
injury or death to human, animal or plant life;
(ii) in connection with underground water resources
(including percolating water) to prevent any
interference as a consequence of the work with the
supply to or abstraction from such sources and to
prevent pollution of water so as to affect adversely the
quality thereof.
(e) The Contractor shall provide, maintain and remove on
completion of the Works, settling lagoons and other facilities
to minimise pollution due to the Contractor’s operations
including but not limited to quarrying, aggregate washing,
concrete mixing and grouting.
(f) The Contractor shall provide, maintain and remove on
completion of the Works, fencing around the site
installations including housing, camps, offices and
laboratories and provide appropriate security measures on
access roads thereto, but without prejudice to his obligations
including maintenance of free access for the Employer, the
Employer’s Representative, other Contractors and any other
persons entitled to such access.
(g) All buildings erected by the Contractor upon the site and
camp sites, and the layout of the buildings and the sites, shall
comply with the Laws of the Federal Democratic Republic of
Ethiopia and all local By-laws in so far as they are applicable;
(h) The Contractor shall be absolutely and solely responsible for
the safety and security of Temporary Works including (but
not limited to) all work yards, pilings, staging, dams, coffer
dams, trenches, fencing or other works and for the Plant and

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Contractor’s Equipment in connection therewith which may

be erected or provided for the carrying out of the Contract
and for the execution of the Works.
This provision shall be applicable to all temporary Works, Plant
and Contractor’s Equipment whenever provided and erected by
the Contractor or his Sub-Contractors for the purpose of or in
connection with the Works.
“Examination by the Employer’s Representative of the
Contractor’s or his Sub-Contractors’ Temporary Works or the
drawings connected therewith shall not absolve the Contractor
from any liability imposed upon him by the provisions of the
Contract.

Sub-Clause 4.26 Add the following new Sub-Clause 4.26 to the Clause:
Non - Compliance The Employer’s Representative/Employer shall have the right to
to Safety, Security withhold the amount indicated in the Appendix to Bid if the
and Protection of Contractor fails to comply with any of his obligation under the
the Environment Contract in connection with Safety, Security and Protection of
the Environment and obtain the Employer’s approval. The
amount thus withheld will be eligible for reimbursement in the
Interim Payment Certificate for the month following the month
of compliance of the provision which is to be approved by the
Employer’s Representative.

6. Staff and Labour

Add the following Sub-Clauses 6.11 to 6.21

Sub-Clause 6.11 The Contractor and his Sub-Contractors shall, at all times, during
Compliance with the continuance of the Contract abide fully by the governing laws
Regulations and regulations.

Sub-Clause 6.12 In the event of any outbreak of illness of an epidemic nature, the
Epidemics Contractor shall comply with and carry out such regulations,
orders, and requirements as may be made by the Government or
medical or sanitary authorities for the purpose of dealing with and
overcoming the same.

Sub-Clause 6.13 The Contractor shall be responsible, to the extent required by the
Burial of the Dead local regulations, for making any arrangements with regard to
burial of any of his employees who may die while engaged upon
the Works.
Sub-Clause 6.14 The Contractor shall arrange for the provision of a sufficient supply
Supply of of suitable food at reasonable prices for all his staff, labour, for the
Foodstuffs purposes of or in connection with the Contract.

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Sub-Clause 6.15 The Contractor shall, so far as is reasonably practicable, having

Supply of Water regard to local conditions, provide on the Site an adequate supply
of drinking and other water for the use of the Employer's
Representative and his staff, the Contractor's staff and labour.

Sub-Clause 6.16 The Contractor shall, in all dealings with his staff and labour, have
Festivals and due regard to all recognised festivals, days of rest, and religious
Religious Customs and other customs.

Sub-Clause 6.17 The Contractor shall in accordance with the Workman's

Compensation for Compensation Act of the Laws of the Country and any other
Injury Regulations in force from time to time in the Country, pay
compensation for loss or damage suffered in consequence of any
accident or injury or disease resulting from his work to any
workman or other person in the employment of the Contractor or
any Sub-Contractor.

Sub-Clause 6.18 The Contractor shall keep proper wages books, in English, showing
Records of the time worked and wages paid to all employees in and about the
Labour execution of the Works, together with such other records as are
required by any Statute, Ordinance, Law, Regulation or Bye-Law in
force in the Country of the Employer governing the employment of
labour. He shall be bound, whenever required, to produce such
wages books and other records for the inspection of any persons
authorized by the Employer’s Representative.

Sub-Clause 6.19 The Contractor shall recognize the freedom of his employees to be
members of trade unions.
Trade Unions

Sub-Clause 6.20 The foregoing provisions of this Clause 6 shall apply to all labour
and personnel employed by the Contractor and his Sub-
Costs, etc.
Contractors and all costs, charges and expenses whatsoever that
may be incurred by the Contractor and all risks involved in giving
effect to the provisions of this Clause 6, including all insurance,
customs duties, pension contribution, medical or other fees,
subsistence, leave and all other matters, are deemed to be
included in and covered by the sums inserted by the Contractor.

Sub-Clause 6.21 The Contractor shall keep in close contact with the Police, Labour
Officers and all other officials as appropriate regarding their
Liaison with
requirements for the control of workmen, restricted area permits,
Police, Labour
passage through townships, or other matters and shall provide all
Officers, etc.
assistance and facilities which may be required by such officials in
the execution of their duties.

Sub-Clause 6.22 The employment of Expatriate personnel is only allowed for

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Employment of managerial positions and where the work cannot be covered by

Expatriate local personnel.
Personnel

7. Plant, Materials and Workmanship

Sub-Clause 7.3 Add the following paragraph at the end of Sub-Clause 7.3
Inspections The Contractor shall permit the Employer and/or persons appointed
by the Employer (Auditors/ Individual Experts) to inspect the Site
and/or records relating to the performance of the Contract
including verification of payment and quality of works, and to have
such accounts and records audited by auditors/Individual Experts
appointed by Employer if required.

Sub-Clause 7.4 In addition to Testing defined in Sub-Clause 7.4, the Employer’s

Testing Representative and the Contractor shall carryout all the necessary
tests at every stage of the construction. Whenever it is deemed
necessary that the tests shall be executed outside the project; the
Employer’s Representative shall fix the place and time of execution
of the tests.

8. Commencement, Delays and Suspension

Sub-Clause 8.3 Delete Sub-Clause 8.3 (d) and replace it with the following:
Extension of time (d) Physical conditions or circumstances on the Site, which are
for completion exceptionally adverse and were not (by the Base Date) foreseeable
by an experienced contractor. Notwithstanding to the occurrence
of an exceptionally adverse climatic condition as defined under
Sub-Clause 1.1.1.11 of the particular conditions of contract, the
following conditions shall be met to entitle the Contractor an
extension of time:
(i) The weather shall affect the progress of the works; and there
shall be an activity affected by the weather,
(ii) The affected activity shall be on the critical path otherwise;
the Contractor shall substantiate that the activity affects the
critical path; and,
(iii) The exceptional weather condition should be recorded at a
place specified in the appendix to bid.
The computation will be done on monthly basis and the difference
between the weather measurement as adverse weather condition
and the exceptionally adverse weather conditions as defined
under Sub-Clause1.1 of the special conditions of Contract is taken
into account in assessing the compensation event.
Delete the second and third paragraphs after Item 8.3(e) in their

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entirety and replace them by:

If the Contractor considers himself to be entitled to any extension
of the Time for Completion, under any Clause of these Conditions or
otherwise in connection with the Contract, the Contractor shall give
notice to the Employer’s Representative, describing the event or
circumstance giving rise to the claim. The notice shall be given as
soon as practicable, and not later than 28 days after the Contractor
became aware, or should have become aware, of the event or
circumstance.
If the Contractor fails to give notice of a claim within such period of
28 days, the Time for Completion shall not be extended; the
Employer shall be discharged from all liability in connection with the
claim. Otherwise, the following provisions of this Sub-Clause shall
apply.
The Contractor shall also submit any other notices which are
required by the Contract, and supporting particulars for the claim,
all as relevant to such event or circumstance. The Contractor shall
keep such contemporary records as may be necessary to
substantiate any claim, either on the Site or at another location
acceptable to the Employer’s Representative. Without admitting
the Employer’s liability, the Employer’s Representative may, after
receiving any notice under this Sub-Clause, monitor the record-
keeping and/or instruct the Contractor to keep further
contemporary records. The Contractor shall permit the Employer’s
Representative to inspect all these records, and shall (if instructed)
submit copies to the Employer’s Representative.
Within 42 days after the Contractor became aware (or should have
become aware) of the event or circumstance giving rise to the
claim, or within such other period as maybe proposed by the
Contractor and approved by the Employer’s Representative, the
Contractor shall send to the Employer’s Representative a fully
detailed claim which includes full supporting particulars of the basis
of the claim and of the extension of time.
Provided also that where an event has a continuing effect such that
it is not practicable for the Contractor to submit detailed particulars
within the period of 42 days, he shall nevertheless be entitled to
receive a response on the principles of his claim within 42 days after
submitting the interim particulars and final particulars (within 42
days of the end of the effects resulting from the event). On receipt
of such interim particulars, the Employer’s Representative shall,
without undue delay, make an interim determination of extension

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of time and, on receipt of the final particulars, the Employer’s

Representative shall review all the circumstances and shall
determine an overall extension of time in regard to the event. In
both such cases the Employer’s Representative shall make his
determination after due consultation with the Employer and the
Contractor and shall notify the Contractor of the determination,
with a copy to the Employer. No final review shall result in a
decrease of any extension of time already determined by the
Employer’s Representative.
Without limitation to the provision of the requirement under
respective sub-clauses, whenever the Employer’s Representative
determines extension of time for completion, the Contractor, at the
Employer’s representative’s written request, shall promptly extend
the validity of the performance security and advance guarantee to
be up to the revised completion date of the project.

Sub-Clause 10.1 Add the following at the end of Sub-Clause 10.1(a)

Taking-over The Contract should not be considered as “Substantially
certificate completed” unless it is fully serviceable and the following portions
of the works are completed according to the specification:
1. Works up to and including bituminous surfacing;
2. All drains and drainage structures including bridge
structures;
3. Construction of the road shoulder;
4. Finishing of medians and slopes of cuts and fills; and
5. Ancillary works such as, guardrails, guide posts, road
marking and traffic signs etc.
The Works shall be deemed to be “Substantially completed” when
the Employer’s Representative determined that the Employer has
full and unrestricted use and benefits of the facility, and only
removal of temporary facilities, shall remain for the physical
completion of the works.
The Contractor is required to submit as-built drawings within one-
month time after the taking over of the works. In this regard, the
Contractor shall submit an acceptable project close out program as
a condition precedent in order to conduct inspection for taking
over of the Works.
In case the Contractor failed to comply the submitted project close
out program and/or the Employer bears additional supervision cost
as a result of the same, the Employer is at liberty to recover the
additional cost incurred from any money due to the Contractor.

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Sub-Clause 10.3 Delete the phrase “plus reasonable profit” from the Sub - Clause.
Interference with
Tests on
Completion
Sub-Clause 12.8 Delete “plus reasonable profit” from the Sub-Clause.
Contractor to
Search
Sub – Clause 13.1
Delete sub clause 13.1 of the GCC in its entirety and replace it with
The Contract the following;
Price
a) Payment for the works executed by the Contractor shall be
effected based on the total lump sum amount, which is the
governing contract amount.
b) The amounts certified in each payment certificate, before
deducting for advance repayment, shall be adjusted by
applying the respective price adjustment factor to the
payment amounts due:

Pn = A+ bLn+ cMn + dEn + etc

Lo Mo Eo
Where:
Pn is a price adjustment factor to be applied to the amount for the
payment of the work carried out in each month excluding Design
and Employer’s Representative’s Facilities;
A is a constant, specified in the Contractor’s Bid, representing the
nonadjustable portion in contractual payments;
b,c,d etc., are weightings or coefficients representing the
estimated proportion of each cost element (labour, materials,
equipment usage, etc.) in the Works or sections thereof, as
specified in the Contractor’s Bid; the sum of A,b,c,d etc., shall be
one;
L0,M0,E0 etc., are the base cost indices or reference prices of the
cost elements at the date 28 days prior to the deadline for bid
submission; and
Ln,Mn,En etc. are the current cost indices or reference prices
corresponding to the above cost elements at the date 28 days prior
to the last day of the period to which a particular month is related.
If a price adjustment factor is applied to payment made in a
currency other than the currency of the source of the index for a
particular indexed input, a correction factor Zo/Zn will be applied to
the respective component factor of Pn for the formula of the
relevant currency. Zo is the number of units of currency of the

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currency of the index, equivalent to one unit of the currency of

payment on the date of the base index, and Zn is the corresponding
number of such currency units on the date of the currency index.
The formula for price adjustment will not include the labour factor.
The Contractor is therefore advised to take this into account when
preparing his bid.
The weighting for price adjustment shall be as shown in the
Appendix to Bid.
The Contractor shall also consider the following:
i. The sources of indices/ quotation shall be obtained from a
reliable and renowned local producer or foreign institution
which is easily accessible and acceptable by the Employer and
approved by the Engineer. Indices shall be appropriate for their
purpose and shall relate to the Contractor’s proposed source of
supply of inputs on the basis of which his Contract Price has
been computed. As the proposed basis for price adjustment,
the Contractor shall have submitted with his bid the tabulation
of Weightings and Source of Indices in the Appendix to Bid,
which shall be subject to approval by the Employer’s
Representative.
The Contractor shall not sign the agreement before he submits
base indices from the approved sources.
If the Contractor desires to order materials from a supplier other
than from whom he obtained his original quotations or indices
because the original supplier ceases to exist, the Employer’s
Representative will look into trend of increment/decrement of the
material cost of the new supplier and compare it with the trend of
the original supplier, and determine a cost with a trend which
could fairly represent the original increment/decrement trend.
However, if the original supplier exists and the Contractor proposes
a new supplier for any reason, the Employer’s Representative will
look into the current quotations or indices of the original supplier
and the newly proposed supplier, and will use the quotations or
indices favorable to the Employer.
ii. The base cost indices or prices shall be those prevailing on the
day 28 days prior to the latest date for submission of bids.
Current indices or prices shall be those prevailing on the day 28
days prior to the last day of the period to which a particular
Interim Payment Certificate is related. If at any time the current
indices are not available, provisional indices as determined by
the Employer’s Representative will be used, subject to
subsequent correction of the amounts paid to the Contractor
when the current indices become available.

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iii. If the Contractor fails to complete the Works within the time for
completion prescribed under Appendix to Tender, adjustment of
prices thereafter until the date of completion of the Works shall
be made using either the indices or prices relating to the
prescribed time for completion, or the current indices or prices,
whichever is more favorable to the Employer, provided that if an
extension of time is granted pursuant to Clause 8, the above
provision shall apply only to adjustments made after the expiry
of such extension of time.
iv. The weightings for each of the factors of cost given in the
Appendix to Bid shall be adjusted if, in the opinion of the
Employer’s Representative, they have been rendered
unreasonable, unbalanced or inapplicable as a result of varied or
additional work already executed or instructed under Clause 14
or for any other reason.
v. If, after the date 28 days prior to the latest date for submission
of bids for the Contract, there occur in the country in which the
Works are being or are to be executed changes to any National
or State Statute, Ordinance, Decree, or other Law or any
regulation or by-law of any local or other duly constituted
authority, or the introduction of any such State Statute,
Ordinance, Decree, Law, regulation or by-law which causes
additional or reduced cost to the Contractor, other than under
the preceding sub-clauses of this clause, in the execution of the
Contract, such additional or reduced cost shall, after due
consultation with the Employer and the Contractor, be
determined by the Employer’s Representative and shall be
added to or deducted from the Contract Price and the
Employer’s Representative shall notify the Contractor
accordingly, with a copy to the Employer. Notwithstanding the
foregoing, such additional or reduced cost shall not be
separately paid or credited if the same shall already have been
taken into account in the indexing of any inputs to the Price
Adjustment Formulae in accordance with the provisions of the
above conditions of this clause.
vi. The cumulative total price adjustment amount which is going to
be due to the Contractor for the rise in the cost of the adjustable
labour, contractor’s equipment, plant, materials inputs shall not
be more than 20% of the revised Contract Price (excluding
Provisional Sums, Day works and Price Adjustment Amount). To
this end, it is envisaged that the Contractor considers
appropriate allowance in his offer for such risks in cases where
the price adjustment CAP surpasses as it will merely be the
obligation of the Contractor to absorb such risks.
vii. The amounts payable to the Contractor shall be adjusted in
respect of the rise or fall in the cost of labour, Contractor’s
Equipment, materials, and other inputs to the Works, by
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applying to such amounts the formulae prescribed in this Clause

and this Price Adjustment to the amount payable to the
Contractor shall be applicable after twelve (12) months from
contract signature, and there will be no price adjustment for a
period of twelve (12) months from contract signature”
Sub-Clause 13.2 Delete sub clause 13.2 entirely and replace with the following:
Advance
The Employer will make an interest-free advance payment to the
Payments Contractor exclusively for the costs of mobilization in respect of
the Works in an amount named in the Letter of Acceptance, but in
no event exceeding the amount stated in the Appendix to Bid.
Payment of such advance amount will be due under separate
certification by the Engineer after:
(a) execution of the Form of Agreement by the parties hereto;
(b) provision by the Contractor of the performance security in
accordance with Sub-Clause 4.2; and
(c) provision by the Contractor of an unconditional bank
guarantee or conditional insurance guarantee in a form
acceptable to the Employer as stipulated by the Employer
in the Appendix to Bid in amounts equal to the advance
payment. Such bank guarantee shall remain effective until
the advance payment has been repaid pursuant to the
paragraph below, but the amount thereof shall be
progressively reduced by the amount repaid by the
Contractor as indicated in Interim Payment Certificates
issued in accordance with this Clause.
The advance payment shall be repaid through percentage
deductions from the interim payments certified by the Engineer in
accordance with this Clause. Deductions shall commence in the
next Interim Payment Certificate following that in which the total
of all interim payments certified to the Contractor has reached the
percentage of the Contract Price stipulated in the Appendix to Bid
less Provisional Sums, and shall be made at the rate stated in the
Appendix to Bid of the amount of all Interim Payment Certificates
of the advance payment until such time as the advance payment
has been repaid; always provided that the advance payment shall
be completely repaid prior to the time when 80 percent of the
Contract Price has been certified for payment.
The advance payment shall not be subject to retention nor subject
to any interest for late payment.
If the provided Advance Guarantee is conditional, then the
Contractor should fill a separate Advance payment Disbursement
Agreement Form Provided in the Contract and the advance
payment shall be effected to the Contractor according to the
Advance payment Disbursement Schedule to be prepared by the
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Contractor and agreed by the Employer in the form provided in the

Contract.
The schedule shall also be in line with the provision indicated in the
Appendix to Bid which set the payment mechanisms.
Whereas, if the provided Advance Guarantee is Bank Guarantee or
Unconditional, the advance payment will be paid to the Contractor
into two equal installments and the first installment (half of the
advance payment) will be released after the submission of
acceptable guarantee and acceptable Disbursement Schedule. The
remaining half of advance payment (50%) will be released after
substantiation of proper utilization of the first installment as per
the approved Disbursement Schedule submitting documentary
evidences to the satisfaction of the Engineer. To this end, the
Contractor is at liberty to submit two separate unconditional bank
guarantees for each installment.
Submission of Insurance of Works and Contractor’s Equipment is a
prerequisite to collect the second 50% of the advance payment for
Contractors submitting Unconditional Advance Security. Unless
the Contractor submitted Insurance of Works and Contractor’s
Equipment the Employer shall not be required to release the
second 50% of the advance payment.
The premium for any of the insurances required under the Contract
including the Contractor’s All Risk Insurance shall be part of the
first Advance Payments installment. In this regard, unless the
insurance policy is in place after having the consent of the
Employer on the same, the second installment will not be due to
the Contractor.
Besides, the Contractor shall submit the Mobilization Schedule and
an acceptable work programme as per sub-clause 4.14 of the
Conditions of Contract. If the Contractor fails to submit an
acceptable work programme in strict adherence to the
requirements of the Contract Document which is in harmony with
the Mobilization Schedule, the Engineer may not process the
Advance Payment request. Withstanding to this, if the Contractor
is far behind the approved Work Programme and if in the opinion
of the Employer the Contractor could not complete the works on
the remaining revised/ original Contract duration, it is construed
that the Contractor has defaulted his performance obligation and
the Employer is at liberty to terminate the Contract.
If the advance payments have not been repaid prior to issue of the
Taking Over Certificate for the works or prior to termination under
Clause 15, 16 or 19 (as the case may be), the whole of the balance
then outstanding shall immediately become due and payable by
the Contractor to the Employer.

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Sub-Clause 13.4 Payment Schedule specifying the instalments in which the contract
Schedule of price shall be paid is attached in Section VII (Form of Bid, Form of
Payments Bid Security, Appendix to Tender and Payment Schedule).

Sub-Clause 13.5 Delete Sub-Clause 13.5 entirely and replace by the following:
Plant and Interim Payment Certificates shall include
Materials for the
Permanent Works (i) an additional amount for Plant and Materials which have been
brought to the Site for incorporation in the Permanent Works,
and
(ii) a deduction when they have been incorporated in the
Permanent Works.
The Employer’s Representative shall determine each addition and
deduction in accordance with the following provisions:
(a) No credit shall be given unless the following conditions have
been met to the satisfaction of the Employer’s
Representative.
(i) the materials are in accordance with the Specifications
for the Works;
(ii) the materials have been delivered to the Site and are
properly stored and protected against loss, damage, or
deterioration;
(iii) the Contractor’s records of the requirements, orders,
receipts, and use of materials are kept in a form
approved by the Employer’s Representative, and such
records are available for inspection by the Employer’s
Representative;
(iv) the Contractor has submitted a statement of his cost of
acquiring and delivering the materials to the Site,
together with such documents as may be required for
the purpose of evidencing such cost;
(v) the materials are to be used within a reasonable time;
and
(vi) Ownership of such materials shall be deemed to be
vested in the Employer.
(vii) The Contractor has submitted the necessary insurance
coverage for the materials in accordance with the
provisions of Sub-Clause 18.2 of the conditions of the

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contract.
(b) the amount to be credited to the Contractor shall be up to 50
present of the C.I.F. price of imported materials, or ex-factory
or ex-warehouse price for locally manufactured materials.
Besides, the Employer’s Representative shall rectify any error
or falsification in the receipts and the vouchers brought by
the Contractor before certify payment.
(c) the amount to be debited to the Contractor for any material
and plant incorporated into the Permanent Works shall be
equivalent to the credit previously granted to the Contractor
for such material and plant pursuant to Sub-Clause (b) above,
as determined by the Employer’s Representative;
(d) It is strictly prohibited to use the materials to another project
or for any other purpose other than the project that are
delivered to the captioned project.
Sub-Clause 13.7 Delete Sub-Clause 13.7 entirely and replace it with the following:
Payment a) in the case of Interim Payment Certificates, within 56 days
after the Contractor’s monthly statement has been submitted
to the Employer’s Representative for certification, pursuant
to Sub-Clause 13.3, provided that if the Contractor’s Interim
Payment Certificate has not yet been issued within said 56
days, the Employer shall pay the amount shown in the
Contractor’s monthly statement and that any discrepancy
shall be added to, or deducted from, the next payment to the
Contractor; and
b) in the case of the Final Payment Certificate pursuant to Sub-
Clause 13.11, within 84 days after the Final Statement and
written discharge have been submitted to the Employer’s
Representative for certification.
“Payments shall be made into a bank account, nominated by the
Contractor, in the payment country named as such in the Contract.
If payments are to be made in more than one currency, separate
bank accounts may be nominated by the Contractor for each
currency and payments shall be made by the Employer
accordingly.”
Sub-Clause 13.8 In the event of the failure of the Employer to make payment
Delayed Payment except the advance payment within the times stated, the
Employer shall pay to the Contractor interest compounded
monthly at the rate(s) stated in the Appendix to Bid upon all sums
unpaid from the date upon which the same should have been paid,
in the currencies in which the payments are due. The provisions of
this Sub-Clause are without prejudice to the Contractor’s
entitlement under Clause 16 of the Conditions of Contract or

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otherwise.
No interest payment will be effected for delayed Advance
Payment, if any.

Sub Clause 13.9 Insert the phrase, “upon a written request by the Contractor”
Payment of before the phrase “the percentage of the first half of the
Retention Money Retention Money…”
Add the following at the end of the sub clause:
“ the second half of the retention money may be replaced by
unconditional Bank Guarantee of an equal amount upon a written
request by the Contractor”
Sub-Clause 15.2 amend sub paragraph (f) as follows:
has contravened Sub-Clause 4.5(b) and Sub-Clause 4.5(e)
Add other additional conditions for termination after sub
paragraph (f) as follows:
(g) If the Contractor is far behind the approved work programme
and if in the opinion of the Employer the Contractor could not
complete the works on the remaining revised/original contract
duration as stated in sub-clause 1.1.3.4 above
(h) fails to comply with Sub-Clause 4.2 in furnishing acceptable
performance security
Sub-Clause 15.5 Add the following to Sub-Clause 15.5:
Bribes
The Government of Federal Democratic Republic of Ethiopia
requires the Employers and Contractors under Government
financed Contract, observe the highest standard of ethics during
the execution of such contracts, in pursuance of this policy , the
Government:
(a) Defines, for the purposes of this provision, the terms set forth
below as follows:
(i) “Corrupt practice” means the offering, giving, receiving,
or soliciting of anything of value to influence the action of
a public official in the procurement process or in contract
execution; and
(ii) “Fraudulent practice” means a misrepresentation of facts
in order to influence a procurement process or the
execution of a contract.
(iii) “Coercive practice” means harming or threatening to
harm, directly or indirectly, persons or their property to
influence their participation in the procurement process or
affect the execution of a contract;

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(iv) “obstructive practices”

i. deliberately destroying, falsifying, altering or concealing
of evidence material to the investigation or making false
statements to the investigation in order to materially
impede Employer investigation in to allegations of a
corrupt fraudulent coercive or collusive practice; and/or
threatening, harassing or intimidating any party to prevent
it from disclosing its knowledge of matters relevant to the
investigation or
ii. Acts intended to materially impede the exercise of the
Employer’s inspection and audit rights.
(b) if the Contractor is found participating in any of the practices
defined in (a) above; the Employer may, after having given 14
days’ notice to the Contractor, terminate the Contract and
expel him from the Site.
Sub-Clause 16.1 Delete the phrase which reads “21 days” and replace it with “56
Contractor’s days”
Entitlement to Delete the phrase, “and to terminate under Sub-Clause 16.2.” from
Suspend Work the end of the first paragraph.
Delete the phrase “plus reasonable profit” from the Sub – Clause.
Sub-Clause 16.4 Delete “including loss of profit” from the Sub – Clause.
Payment on
Termination
Sub-Clause 17.3 Replace the phrase “The Employer’s risks are:” in the Sub-Clause
Employer’s Risks with the following phrase:
“The Employer’s risks, in so far as they directly affect the
execution of the Works in the Country where the Permanent
Works are to be executed are:”
Sub-Clause 18.5 Add the following above the last paragraph in Sub-Clause 18.5:
General “Each policy of insurance effected by the Contractor for purpose
Requirements of the Contract shall be in compliance with the provision of the
for Insurances Contract and renewable and shall include a provision to the effect
that the insurer shall have a duty to give notice in writing to the
Contractor and Employer of the date when a premium becomes
payable not more than thirty (30) days before that date and the
policy shall remain in force until thirty (30) days after the giving of
such notice.”
“If the Contractor fails to renew insurances before 21 days of the
expiration date, the Employer may directly pay the renewal fees to
the insurance company, and may deduct the amount paid by the
Employer from any monies due, or to become due, to the
Contractor.”
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Add the following at the end of the last paragraph in Sub-Clause

18.5:
“Authentication of insurances and guarantees, indicated in this
contract is mandatory. All securities furnished by foreign bidders
from a bank outside of Ethiopia shall to be certified or counter
guaranteed by local banks/financial institutions.”
Sub-Clause 20.1 Delete Sub-clause 20.1 in its entirely and replace it with the
Procedure for following:
Claims If the Contractor considers himself to be entitled to any additional
payment, under any Clause of these Conditions or otherwise in
connection with the Contract, the Contractor shall give notice to
the Employer’s Representative, describing the event or
circumstance giving rise to the claim. The notice shall be given as
soon as practicable, and not later than 28 days after the Contractor
became aware, or should have become aware, of the event or
circumstance.
“If the Contractor fails to give notice of a claim within such period
of 28 days, the Contractor shall not be entitled to additional
payment, and the Employer shall be discharged from all liability in
connection with the claim. Otherwise, the following provisions of
this Sub-Clause shall apply.
The Contractor shall also submit any other notices which are
required by the Contract, and supporting particulars for the
claim, all as relevant to such event or circumstance.
“The Contractor shall keep such contemporary records as may be
necessary to substantiate any claim, either on the Site or at
another location acceptable to the Employer’s Representative.
Without admitting the Employer’s liability, the Employer’s
Representative may, after receiving any notice under this Sub-
Clause, monitor the record-keeping and/or instruct the Contractor
to keep further contemporary records. The Contractor shall permit
the Employer’s Representative to inspect all these records, and
shall (if instructed) submit copies to the Employer’s
Representative.
Within 42 days after the Contractor became aware (or should have
become aware) of the event or circumstance giving rise to the
claim, or within such other period as maybe proposed by the
Contractor and approved by the Employer’s Representative, the
Contractor shall send to the Employer’s Representative a fully
detailed claim which includes full supporting particulars of the
basis of the claim and the additional payment claimed.
Within 42 days of giving notice or within such other period as may

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be proposed by the Contractor and approved by the Employer’s

Representative, the Contractor shall send to the Employer’s
Representative a fully detailed claim which includes full supporting
particulars of the basis of the claim and of the additional payment
claimed. Where the event giving rise to the claim has a continuing
effect, such fully detailed claim shall be considered as interim and
the Contractor shall send further interim claims at monthly
intervals, giving the accumulated amount claimed and such further
particulars as the Employer’s Representative may reasonably
require. The Contractor shall send a final claim within 42 days after
the end of the effects resulting from the event or circumstance, or
within such other period as may be proposed by the Contractor
and approved by the Employer’s Representative.
The Contractor shall, copy to the Employer all notices and claims
sent to the Employer’s Representative pursuant to this Sub-Clause.

Clause 20 Delete Sub-Clauses 20.3 and 20.4 from the Clause and replace them
by the following paragraphs without a change in the numbering of
Claims, Disputes
the other Sub-Clauses of this Clause 20.
and Arbitration
“If any dispute arises between the Employer and the Contractor in
connection with, or arising out of, the Contract or the execution of
the works, whether during the execution of the works or after
their completion and whether before or after the repudiation or
other termination of the Contract, including any disagreement by
either party with any action, inaction, opinion, instruction,
determination, certificate, or valuation of the Employer’s
Requirement, the matter in dispute shall, in the first place, be
referred to the Disputes Review Expert (DRE).
“The DRE shall take up his functions after having signed a DRE’s
Declaration of Acceptance as required by the DRE’s Rules and
Procedures (which, along with the Declaration of Acceptance, are
attached to these Conditions of Particular application).
“The DRE shall be a person experienced with the type of
construction involved in the works and with the interpretation of
contractual documents and shall be selected by agreement
between the Employer and the Contractor. If the DRE is not
selected within 28 days of the date of the Letter of Acceptance,
then upon the request of either or both parties the DRE shall be
selected as soon as practicable by an agreement of both parties or
by the Appointing Authority specified in the Appendix to bid if an
agreement could not be reached.
“In the event of death, disability, or resignation of the DRE, the
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latter shall be replaced by agreement between the Employer and

the Contractor. Any replacement made by the parties shall be
completed within 28 days after the event giving rise to the need
for a replacement, failing which the replacement shall be made by
the same Appointing Authority as above.
“Either the Employer or the Contractor may refer a dispute to the
DRE in accordance with the provisions of the DRE’s Rules and
Procedures, attached to these Conditions of Particular Application.
“The Recommendation of the DRE shall be binding on both
parties, who shall promptly give effect to it unless and until the
same shall be revised, as hereinafter provided, in an arbitral award.
Unless the Contract has already been repudiated or terminated,
the Contractor shall continue to proceed with the Works in
accordance with the Contract.
“If either the Employer or the Contractor is dissatisfied with any
Recommendation of the DRE, or if the DRE fails to issue his
Recommendation within 56 days after he has received the written
Request for Recommendation, then either the Employer or the
Contractor may, within 14 days after his receipt of the
Recommendation, or within 14 days after the expiry of the said 56-
days period, as the case may be, give notice to the other party,
with a copy for information to the Employer’s Representative, of
his intention to commence arbitration, as hereinafter provided, as
to the matter in dispute. Such notice shall establish the
entitlement of the party giving the same to commence arbitration,
as hereinafter provided, as to such dispute and, subject to Sub-
Clause 20.7, no arbitration in respect thereof may be commenced
unless such notice is given.
“If the DRE has issued a Recommendation to the Employer and the
Contractor within the said 56 days and no notice of intention to
commence arbitration as to such dispute has been given by either
the Employer or the Contractor within 14 days after the parties
received such Recommendation from the DRE, the
Recommendation shall become final and binding upon the
Employer and the Contractor.
“Whether or not it has become final and binding upon the
Employer and the Contractor, a Recommendation shall be
admissible as evidence in any subsequent dispute resolution
procedure, including any arbitration or litigation having any
relation to the dispute to which the Recommendation relates.
“All Recommendations that have become final and binding shall be
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implemented by the parties forthwith, such implementation to

include any relevant action of the Employer’s Representative.”

Sub-Clause 20.5 Sub-Clause 20.5 is deleted without a change in the numbering of

other Sub-Clauses of this Clause 20.
Amicable
Settlement

Sub-Clause 20.6 Sub-Clause 20.6 is deleted and replaced by the following Sub-
Clauses 20.6.1 and 20.6.2.
Arbitration
“20.6.1 Arbitration Proceedings
“Any dispute in respect of which the recommendation, if any, of
the DRE has not become final and binding shall be finally settled by
arbitration in accordance with the rules of procedure designated in
Sub-Clause 20.6.2 below. The arbitral tribunal shall have full power
to open up, review, and revise any decision, opinion, instruction,
determination, certificate, or valuation of the Employer’s
Representative and any Recommendation(s) of the DRE related to
the dispute.
“Neither party shall be limited in the proceedings before such
tribunal to the evidence or arguments put before the DRE for the
purpose of obtaining his Recommendation(s) pursuant to Sub-
Clause 20.4 No Recommendation shall disqualify the DRE from
being called as a witness and giving evidence before the
arbitrator(s) on any matter whatsoever relevant to the dispute.
“Arbitration may be commenced prior to or after completion of
the Works, provided that the obligations of the Employer, the
Employer’s Representative, the Contractor, and the DRE shall not
be altered by reason of the arbitration being conducted during the
progress of the Works.
“20.6.2 Rules of Procedure:
“The rules of procedure for Arbitration shall be as indicated in the
Appendix to Bid.”

Sub-Clause 20.7 Delete the texts of Sub-Clause 20.7 entirely and replace them with
Failure to Comply the following:
with Dispute “Where neither the Employer nor the Contractor has given notice
Adjudication of intention to commence arbitration of a dispute within the
Board's Decision period stated in Clause 20 and the related Recommendation has
become final and binding, either party may, if the other party fails
to comply with such Recommendation and without prejudice to
any other right it may have, refer the failure to arbitration in

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accordance with Sub-Clause 20.6. The provisions of Clause 20 shall

not apply to any such reference.”

Clause 21 Add the following new Clause as Clause 21 at the end of Clause 20:
Warranty “Clause 21: Warranty
21.1 The Contractor shall provide Warranty for the Works and
Design as stated in the Employer’s requirement. The
warranty bond shall be submitted to the Employer prior to
issuance of any Final Acceptance (Performance Certificate)
under the contract for any section or the entire project road
as the case may be.
21.2 The Warranty Bond to be provided by the Contractor shall be
issued by a Local Bank, Insurance Company or Financial
Institution registered at the National Bank of Ethiopia.
21.3 Upon the furnishing by the Contractor of an acceptable
Warranty Bond in accordance with the provisions of this
Clause 21, the Employer will issue a Performance Certificate
for any section or the entire project road, as the case may be.
21.4 Failure of the Contractor to provide the Warranty bond with
the requirements of this Clause 21 shall constitute sufficient
grounds for the forfeiture of the Performance Bond.
21.5 General Warranty - Performance Responsibility
The Contractor retains responsibility for all Work performed on the
Project, including all Work of Subcontractors and all Materials and
Equipment provided by suppliers, vendors and/or manufacturers.
Upon receipt from the Employer of notice of a failure of any of the
Work, the Contractor shall be responsible for enforcing or
performing any Warranty, guarantee, or obligation, in addition to
the Contractor’s other obligations hereunder. The Employer’s
rights under this Section shall commence at the time such
representation; Warranty, guarantee, or obligation is furnished
and shall continue until the expiration of the Contractor’s relevant
Warranty (including extensions for redone Work). Until such
expiration, the cost of any Equipment, Material, labor (including re-
engineering), and/or shipping shall be for the account of the
Contractor if such cost is covered by such a Warranty, and the
Contractor shall be required to replace or repair defective
Equipment, Material, or workmanship furnished by
Subcontractors.

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21.6 General Warranty – Extension of General Warranty

The Contractor’s Warranties shall apply to all Work re-done
pursuant to the terms of this Contract. The Contractor’s Warranty
for repaired or replaced elements of the Work shall extend beyond
the original Warranty period if necessary to provide a four-year
Warranty period following acceptance for any repaired or replaced
Work.
21.7 General Warranty – No Limitations of Liability
The foregoing Warranties are in addition to all rights and remedies
available under the Contract Documents or applicable law, and
shall not limit the Contractor’s liability or responsibility imposed by
the Contract Documents or applicable law with respect to the
Work, including liability for design defects, latent construction
defects, strict liability negligence, or fraud provided.
21.8 Damages for Breach of Warranty
In addition to all rights and remedies available under the Contract
Documents or applicable law, if the Contractor fails or refuses to
provide the Warranty remedy described under the Employer’s
Requirement, notwithstanding a valid request by the Employer,
the Contractor shall be liable for the cost of performance of the
Warranty work by others. The Employer may also call the warranty
bond.
21.10 Warranty Bond - Amount and Term
The Contractor must furnish a single - term warranty bond
(unconditional guaranty) in the amount of 10 percent of the
contract price. The effective starting date of the warranty bond
must be the date of issuance of Performance Certificate for any
section or the entire project road as the case may be. Percentage
of the warranty bond will be released at the end of the warranty
period or after the warranted work has been completed and the
required service level or threshold limit is met for the respective
warranted item of work, whichever is latest. (1st instalment of 20%
of the warranty bond shall be released at the end of the 1st year of
the warranty period, 2nd instalment of 20% shall be released at the
end of the 2nd year and 20% shall be released at the end of the 3rd
year and the 4th remaining instalment 40% shall be released at the
end of the warranty period).
21.11 Disputes
Any disagreement between the Employer and the Contractor
relating to items with many causes for failure, and may be difficult
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to determine a precise cause shall be evaluated by a conflict

resolution team (CRT) to be established for the purpose; the CRT
will consist of two Contractor representatives, two Employer
representatives, and one from independent third party which is
selected by the mutual agreement of both the Employer and
Contractor. The cost of the third party will be equally shared
between the Employer and the Contractor. The team members will
be identified in writing prior to the start of identifying the causes
for failures, which are subjected to dispute.”

Clause 22 Add the following new Clause as Clause 22:

Royalties
Royalties in respect of the extraction of material from borrow pits
and quarries for use in connection with the works shall be paid by
the Employer.
However, the Contractor shall be liable for compensation and all
payments, if any, in connection with the acquisition of land for
dumping of materials and spoil areas; and also responsible for
expropriation of land required for temporary and permanent
spoiling of waste material. This includes sites required for the
disposal of material from demolitions and excavations and of other
surplus material (whether natural or man-made).

Moreover, the Contractor shall be liable to reimburse the Employer

of such compensations if the Contractor fails to utilise the
intended source after compensation has been effected due to his
inappropriate recommendation and/or inadequate prior
investigation.

The Employer shall be responsible for the assessment and

payment of compensation in respect of land to be appropriated
and incorporated in the works within the site together with all
buildings, crops, trees and any other properties so defined from
the land.

The Employer shall be responsible for the negotiation, agreement

and payment of compensation of all royalties’ (except specified
above) required for the works, after the proposal to be made by
the Contractor and subsequent approval by the Engineer, land
temporarily occupied, soil area, working areas, borrow areas, road
diversions and sites for Contractors’ and Engineer’s
accommodation and natural Materials obtained from outside the
Site. However, the Employer may assist the Contractor in carrying
out the required negotiation and agreement with property owners
and local administration for lands required for dumping of
materials and spoil areas.

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Identification of land required for the works shall ensure

environmental, safeguards and operational health safety
requirements of ERAs Environmental and Social Management
Manual and the EIA report of the project as well as the National
Government Environmental Policies and Guidelines. The Contractor
shall propose quarry, spoil areas and borrow sites away from
settlement and environmentally sensitive areas (water, bodies,
national parks, reserved areas. Controlled hunting areas,
Archeological and cultural significant sites). Perennial Riverbeds
and forested area shall not be selected for quarrying, spoil area
and borrow pits). The Contractor shall prepare environmental plan
for quarry, spoil areas and borrow sites as per the Contract and
specifications (in particular as per Site Environmental and Social
Management plan) of the Contract Document. The final selection
should be approved considering the proposed land ensures
environmental, safeguards and operational health safety
requirements, by the Local Administrations, the Engineer and
Environmentalists from the ERA. The Contractor shall provide legal
document from the local authority for acquiring the spoil area
before the start of dumping activity of the spoil material at the
proposed spoil area. The Contractor shall also provide clearance
documents from the local authority for compliance of
environmental issues regarding the spoil area during handing over
of the project to the Employer.

The Employer requires at least 4 months’ prior notice for the

acquisition of land in rural areas and at least 6 months’ prior notice
for the acquisition of land in urban areas; and the Contractors
work programme and request for acquisition of land should take
into account this lead time; and the Contractors work programme
and request for acquisition of land should take into account this
lead time. The Contractor shall not enter property outside the road
reserve without written confirmation from the Engineer /
Employer that the necessary negotiations with the property owner
have been satisfactorily concluded.”

Clause 23 The Contractor shall co-operate with the universities and/or

Industry Linkage educational institute as part of industry linkage and take the
responsibility towards trainee students that would be sent to the
project site for training purpose. The Contractor will be responsible
for the provision of all accommodation and any other necessary
assistants to the trainees until such time they have finalized the
training duration arranged by the universities and/or educational
institutions. The assignment of these trainees will be twice a year
with a minimum number of 5 students per a semester (per five
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months interval).

Clause 24 The Contractor shall consider the length indicated in the Appendix
Trial Section for to Bid for trial road section along with the provision of the
Research association construction equipment to carryout pilot tests for
research projects to be conducted by the Employer’s Road
Research Center as a means of supporting the road sector through
the provision of independent, innovative and effective knowledge
based solutions and efficient Ethiopian Road Network.

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FORM OF BID/TENDER

Name of Contract: _________________ [insert name of project] Design and Build Road
Project
To: Ethiopian Roads Authority
P.O.Box 1770
Ras Abebe Aregay Street
Addis Ababa
Gentlemen:
1. Having examined the Conditions of Contract, Employer’s requirement, Form of
Contracts and Addenda No.’s. [Insert Addenda No.’s.] for the Design and execution
of the above-named Works, we, the undersigned, offer to execute and complete
such Works and remedy any defects therein in conformity with the Conditions of
Contract, Employer’s requirement, and Addenda with:
Total Lump Sum cost of [insert amount in figures and words] including a VAT amount
of [insert amounts in numbers and words].
2. We acknowledge that the Appendix forms part of our Bid.
3. We attach our Bid Security in the sum of [Insert amount], taken out with [Insert
name and address of Bank or Insurance company].
4. We undertake, if our Bid is accepted, to commence the Works as soon as is
reasonably possible after the receipt of the Employer’s Representative’s notice to
commence, and to complete the whole of the Works comprised in the Contract
within the time stated in the Appendix to Bid.
5. We undertake, if our Bid is accepted, to deploy two Subcontractors with a minimum
of 10 % of the contract price for each or one Subcontractor with a minimum of 20 %
of the Contract Price for Subcontracting works stated in the Appendix to Bid sub
clause 4.5.
6. We agree to abide by this Bid until the date 120 days from date of bid submission
specified in the Bidding Data and it shall remain binding upon us and may be
accepted at any time before that date.
7. Unless and until a formal Agreement is prepared and executed, this Bid, together
with your written acceptance thereof, shall constitute a binding Contract between
us.
8. We understand that you are not bound to accept the lowest or any bid you may
receive.

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9. We hereby certify that we have taken steps to ensure that no person acting for us
or on our behalf will engage in bribery.

Dated this ____________________ day of ___________ 20

Signature in the capacity of
Duly authorized to sign bids for and on behalf of
[in block capitals or typed]
Address:
Witness:
Address:
Occupation

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APPENDIX TO TENDER/BID
[Bidders must fill in all the appropriate blank spaces. Bidders are required to sign each page
of the Appendix to Bid.]
Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
Employer’s name 1.1.2.1 & 1.8 Name: Ethiopian Roads Authority
and address Address:
The Director General
Ethiopian Roads Authority
Ras Abebe Aregay Street
P.O.Box 1770
Tel: 251-11 515 6603
Fax: 251-11 551 48 66
Addis Ababa, Ethiopia
Contractor’s name 1.1.2.2 & 1.8 (To be inserted later)
and address
Name and address 1.1.2.3 & 1.8 (To be notified later)
of the Employer’s
Representative
Contract Period 1.1.3.4 1095 Calendar Days including 120 Calendar Days of
Mobilization period Plus 365 days of Defects Liability
Period and four (4) Years of warranty period after
the end of defect liability period.
Construction Period 1.1.3.5 1095 Calendar Days
Foreign 1.1.5.3 1 ____________
Currency/Currencies
2 ____________
3 ____________
Law of the Contract 1.4 The law of the Contract is the Law of the Federal
Democratic Republic of Ethiopia (FDRE).
Ruling language 1.4 English
Language for 1.4 English
communications
Electronic 1.8 N/A
transmission
systems
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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
Confidential details 1.12 (to be inserted by the Bidder)
Time for access to 2.2
Access to the site shall be granted to the Contractor
the Site along with the commencement letter. The Employer
will provide to the Contractor, free of charge, such
land as the Contractor may reasonably require for
road reserve, camps, workshops, diversion roads,
borrow pits and quarries. Possession of land for the
Engineer’s and Contractor’s establishment shall be
effected within 2 weeks after receipt of the
Contractor’s first written notice of requirement.
However, the Contractor shall give to the Engineer
with a copy to the Employer, not less than Four
months’ prior notice of his requirement for the above
mentioned land requirement for road reserve in rural
section, detour, borrow pits, quarry, stockpiling area
and Six months for road reserve in urban (town)
section.

Amount of 4.2 The performance security will be in the form of

performance bank/insurance guarantee in the amount of ten (10)
security percent of the Contract price. Conditional
performance security is allowed for local bidders
only.
Performance Security from foreign institutions shall
be counter-guaranteed by Ethiopian Bank.”
Limit of 4.5(e)  The percentage of subcontracting shall be
Subcontracting maximum 40% of the Contract price.
 The Contractors shall propose as Mandatory
Subcontracting two domestic Subcontractors
with a minimum of 10% of the contract price
for each subcontractor or one subcontractor
or with a minimum of 20% of the contract
price who have any kind of projects with ERA
within a maximum total amount ETB 1 Billion
Birr .The sub-contractor shall have a category
of GC-5/RC-5 to GC-1/RC-1 inclusive.

 The portion of Subcontract works to be

Subcontracted for mandatory Subcontracting
requirement shall be at least earthworks and
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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
sub-base or earthworks and road base or
earthworks and gravel wearing course or
earthworks and bituminous work
 The Subcontractor proposed for mandatory
Subcontract requirement shall not have a total
sum ETB 700 million Subcontracts on ERA
projects from the mandatory Subcontract.
The proposed domestic Subcontractors for the
mandatory Subcontract requirement shall fulfill the
definition of Domestic bidders as defined under
ERA’s Subcontract or Management Framework.
Sub-Clause 4.5(f) and The Contractor shall follow ERA’s Subcontract or
Subcontracting 4.5(g) Management Framework from the selection process
Selection Procedure until administration of the Subcontractors.
and Subcontract
Agreement
Time for submission 4.14 Within 28 (Twenty-Eight) days of Commencement of
of programme the Works.

ETB 1,000,000.00 per month where failure by the

Contractor to submit or update the work program as
required
Safety, Security and 4.26 ETB 500,000.00 per month if the Contractor fails to
Protection of the comply with any of his obligations under the
Environment Contract.

Normal working 6.5 As defined in the applicable labour law of the Federal
hours Democratic Republic of Ethiopia
Time for notice to 8.1 Within 28 (Twenty-Eight) Days of Contract Signature.
commence
Extension of time 8.3 Add the following provisions
for completion
Add the following provisions

“The places where whether to be recorded are Arsi

Negele, Kofele, Kore and Bekoji stations.

The weather data are the records of past weather

measurements for each calendar month which are
recorded at all above mentioned station (rainfall in
mm and Temperature in oC): - are available from
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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
National Metrological Agency.”

Liquidated damages 8.6 0.1% of the Contract price per day, if there is no
for the Works completed section already handed over to the
Employer; or
0.1% of the value of the remaining works per day (i.e.
value of remaining works equals final contract price
less the value of the completed sections already
handed over to the Employer).
Limit of liquidated 8.6 Ten (10) percent of the final Contract Price, if there is
damages for delay no completed section already handed over to the
Employer; or;
Ten (10) percent of the value of the remaining works
(i.e. value of remaining works equals final Contract
price less the value of the completed sections already
handed over to the Employer).
Taking-Over 10.1 Please add new Sub-Clause 10.1 as follows:
Certificate
“Definition of Sections: Any part of the permanent
works exceeding 35 km in length, which has been both
completed to satisfaction of the Engineer and,
otherwise as provided for in the Contract, occupied or
used by the Employer.“
If Clause 11 applies: 11.4 N/A
Liquidated damages
for failing Tests after
Completion
(details of test
failure)
The contract Price 13.1 Please delete and replace sub clause 13.1 as follows “
Refer the payment schedule attached with this
Appendix to Tender/Bid
Advance Payments 13.2 Maximum amount of advance payment shall be
twenty percent (20%) of the Contract Price which
shall be paid in the currencies and proportions the
accepted contract price is payable.
The advance payment guaranty will be in the form of
conditional/unconditional guaranty in the amount
equal to the amount of the advance payment

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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
including VAT. Advance Guarantee emanated from
foreign institutions shall be counter-guaranteed by
Ethiopian Bank.
Conditional Advance Payment guarantee is
acceptable for only local Contractors.
Local Contractors who submit Conditional Guarantee
shall fulfil the following:
a) The Contractor shall sign advance payment
disbursement agreement and submit detail of
advance payment disbursement schedule.
b) The Employer will pay fifty percent (50%) of the
advance payment, in a maximum of five
installments, directly to the supplier on behalf of
the Contractor for purchasing of equipment or
construction material depending on the
purchasing agreement made between the
Contractor and the supplier.
c) The Employer will pay the remaining fifty percent
(50%) of the advance payment in cash in four
equal installments.
The Employer will deduct and pay the VAT portion of
the Advance Payment directly to the Relevant
Governmental Authority on behalf of the Contractor.
Start repayment of 13.2(a) After certification of 30 (Thirty) percent of the
advance payment Contract Price less specified provisional sum and day
works.
Repayment 13.2(b) 40 (Forty) percent of the amount of monthly Interim
amortization of Payment Certificates.
advance payment The recovery of the advance payment from monthly
interim payment certificate shall also include price
adjustment, but excludes Material On Site Payment.

The advance payment shall be completely repaid

prior to the time when 80% of the Contract price has
been certified for payment.
Percentage of 13.3 5 (five) percent of Interim Payment Certificates, up to
retention and Limit a maximum of 5 (five) percent of the Contract Price
of Retention Money plus variations less VAT and Provisional Sums.
Plant and Materials 13.5 Equivalent of fifty percent (50%) of the cost of plant
for Payment when and materials delivered to the site for incorporation
delivered to the Site in to the works.
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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
Minimum amount of 13.6 ETB 5 million
Interim payment
Certificate
Rates of interest For Local Currency: 4 (Four) percent.
upon unpaid sums
For other currencies: the respective prevailing
London Inter-Bank On-Lending Rate (LIBOR) with
13.8 annual maturity period plus 2 percent and the
computation will be done on monthly basis. If the
currency quoted by the Contractor does not have a
corresponding LIBOR rate, the USD rate with annual
maturity period shall be used.
If there are 14.5(b) [To be inserted by the bidder in the Schedule of
provisional Sums: Quantities, if there exists]
Percentage for
adjustment of
Provisional sums
Amount of 18.1 The value of the Design in the Contract.
insurance for design
Amount of third 18.3 ETB: 2 million per occurrence, with the number of
party insurance occurrences unlimited.
Periods for 18.5 (a) & (b) both: as soon as practicable, but in any case
submission of prior to the start of the permanent work at site.
insurance:
(a) Evidence of
Insurance
(b) Relevant Policy
Number of 20.3 One Dispute Review Expert
members of Dispute
review Expert
The appointed 20.3 The appointing authority shall be:
person or  Addis Ababa Chamber of Commerce and
administration in Sectoral Associations Arbitration Institute
case of (AACCSAAI) for Local Contractors awarded
disagreement through National and International Competitive
Tenders;
 Addis Ababa Chamber of Commerce and
Sectoral Associations Arbitration Institute

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Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
(AACCSAAI) for Foreign Contractors awarded
through National Tenders; and
 The Chairman of the International Chamber of
Commerce, Paris for Foreign Contractors
awarded through International Competitive
Tenders.

Arbitration rules 20.6 Rules of Conciliation and Arbitration of Addis Ababa

Chamber of Commerce and Sectorial Associations
Arbitration Institution, Addis Ababa for local
Contractors and foreign contractors awarded
through National Tenders.
Rules of Conciliation and Arbitration of the Chairman
of the International Chamber of Commerce, Paris for
foreign Contractors awarded through International
Competitive Tenders.
Number of 20.6 One or three arbitrators as it will be agreed by the
arbitrators parties
Language and Place 20.6 Language: English
of arbitration Place:
Addis Ababa for local Contractors and foreign
contractors awarded through National Tenders
Paris for Foreign Contractors awarded through
International Competitive Tenders
Trial Section for 24 The Contractor shall consider a length of 300m for
Research trial section on which pilot tests of Research Projects
are to be conducted.

Currency Unit Percentage Rate of

payable in such exchange:
Currency number of Local
per unit of
Payments in Local and 1.1.5.3 & Foreign
Foreign Currencies 13.15 Local:
-----------------
-------- 1.0
[Name]
Foreign: ----------------- -----------------
--------

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[Name]
----------------- -----------------
-----------
[Name]

The items on the following pages are to be filled in by the bidder as part of his bid,
Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
“For Use with Table A of Sub- 13.3
[see Table A1 immediately below]
Clause 13.3 and 13.15 13.15

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A: SUMMARY OF CURRENCIES

Table A1: Summary of payment currencies of the Bid

A B C D
Name of payment Amount Rate of exchange Local Percentage of
currency of (local currency currency Net Bid Price
currency per unit of equivalent (NBP)
foreign) C=AxB 100xC
NBP
Local currency 1.00

Foreign currency #1**

Foreign currency #2**

Foreign currency #3**

Net Bid Price * 100

Specified Provisional
sums expressed in local 1.00
currency (if any)
15% VAT 1.00

BID PRICE 100

Note: The maximum allowed portion of the total foreign currency is 15%.
(*) The Net Bid Price is the total bid price, excluding VAT, specified provisional sums and
contingency.
(**) Not Applicable for National Competitive Tenders.

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Table A2: Rate of Interest upon Unpaid sums for Foreign Currencies
Currency (as per Sub-Clause _____) London Over-Night Inter-Bank On –
Lending Rate (LIBOR) plus two percent
(2%)
_________________________________
_________________________________
_________________________________
_________________________________

Note:
1. Local bidders are not allowed to quote foreign currency requirement; i.e. they shall
quote their offer fully in Ethiopian Birr and payment will be also made in Ethiopian Birr.
2. The Local currency portion shall include all taxes including VAT for the full bid offer.

Condition of
Title of Clause Amendments/Comments
Contract Sub-Clause
Approximate Weightings for
Price Adjustment 13.1: [See Table B immediately below]
Formulae

Table B: Weightings for Price Adjustment

Description of index % range of weighting

Fixed/Nonadjustable 30
Fuel 9.5-17
Bitumen 8-12
Steel Reinforcement Bar 2.5-5
Cement 4-6.5
Equipment 38-47
Total 100%

As guidance to bidders and for the purpose of checking their submissions, the Employer
has estimated and provided a range of acceptable weightings (of the total estimate) of
the allowed construction inputs for price variations.
Condition of
Title of Clause Contract Amendments/Comments
Sub-Clause
In the Tables immediately below, bidders shall (a)
indicate their amounts of payment; (b) indicate their
Weightings and
13.1 proposed source and base price /indices for the
Indices
different elements of cost. (c) Derive their proposed
weightings for local and foreign currency payment
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as indicated below and (d) list the exchange rates

used in the currency conversion.

Table C: Local Currency

Bidder's
Bidder's
Index Source of Base Value related
Index description proposed
Code index and date currency
weighting
amount
- Nonadjustable - - - A:
F Fuel b:
B Bitumen c:
S Reinforcement d:
C Cement e:
E Equipment f:
Total 100%

Table D: Foreign Currency 1 (FC1)a

Applicable for Bill No.-------,---------------(insert No. and name)

Index Code Index Source of Base value Bidder’s Bidder’s
Description Index and date related proposed
currency weighting
amount
Nonadjustable A: 30%
F Fuel - - - B:
B Bitumen - - - C:
S Steel D:
Reinforcement
bar
C Cement E:
E Equipment F:
Total 100%

If the bidder wishes to quote in more than one foreign currency (up to three), this table
should be repeated for each foreign currency

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SCHEDULE OF NAMED SPECIALIST SUB-CONTRACTORS a

Name and Statement of

Approximate
Item Element of work address of Sub- similar works
value
Contractor executed

a. The bidder shall enter in this schedule a list of the specialized works and approximate
value of the work for which he proposes to use specialist Sub-Contractors, together with
the names and addresses of the proposed Sub-Contractors.

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PAYMENT SCHEDULE
Measurement and Payment provisions of the construction specification shall be Lump Sum basis
and shall be paid upon completion of each of the work items indicated below as per the
percentage proportion provided herein.

I) The weighted average percentages of the contract price of each of the work items
for payment purposes are indicated below:
Item Series/ Percentage of
Work Type Description Code
No. Division Payment
1 Survey, Design Survey, Investigation and Design as 2% P1
Investigation and per the Employer’s Requirement;
Design Eighty percent (80%) of the amount
with respect to this work item shall
be released after approval of the
full design of the executed length
by the Employer’s Representative.
The remaining twenty (20%) shall be
released after the earthwork for
that particular length of the project
is fully completed. It is anticipated
that no redesign work will be
carried out after completion of
earthwork.
2 Provision of 1000/ Provision of Employer’s 4% P2
Facilities to the 1400 Representative facilities as per
Employer’s Employer’s Requirement, out of
Representative which 80% shall be released as per
the percentage completed of this
work item as approved by the
Employer’s Representative. The
remaining twenty percent (20%)
shall be released on monthly basis,
equally, in the original contract
duration excluding the first six
months”
3 Detour and 1000/ Undertake traffic management, 1% P3
Traffic 1500 execute construction and
Management maintenance of temporary traffic
diversions/haul and access roads,
barricades, signs, and the provision
of everything necessary for the
safe and easy passage of all public
and construction traffic during the
performance of the Contract
including the reinstatement of
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Item Series/ Percentage of

Work Type Description Code
No. Division Payment
traffic diversions, if any.
4 Site Clearance 2000/ Execute site clearance activities, 50% P4
and Earthwork 4000 earthworks and protect the
environment all in accordance with
the latest ERA Design Manuals and
Specifications.
5 Sub base and 5000 Execute sub base and base coarse P5
Base course works satisfying all the Contract
requirements.
5.1 Sub base 5100 Execute sub base works satisfying 4.0% P5.1
all the Contract requirements.
5.2 Base course 5200 Execute base coarse works 5.0% P5.2
satisfying all the Contract
requirements.
6 Bituminous 6000 Execute bituminous surface works 20.0% P6
Surface including satisfying all the Contract
shoulders requirements.
7 Bridges, Culverts 3000/ Execute drainage works; culverts, 12.0% P7
,Drainage and 8000/900 bridges, paved ditches and
protection works 0 drainage works satisfying all the
contract requirements.
Thirty percent (30%) of the amount
with respect to this work item shall
be released proportionally for the
construction of the bridge
substructure Works (any structure
below the bottom of the
superstructure). The remaining
Seventy percent (70%) shall be
released proportionally for the
construction of the bridge
superstructures and other
structural and drainage works.
8 Road Furniture & 1000/ Execute/provide road furniture, 2.0% P8
Environmental 2000/ road ancillary works, environmental
works (including 9000 protection and erosion control
reinstatement works satisfying all the Contract
and Social, requirements.
Health, Safety &
Environmental
Protection and
Mitigation
Measures)
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II) Each of the above work items shall be in compliance with ERA’s 2013 Standard
Technical Specifications and Methods of Measurement.
III) At the end of each month, the Contractor shall submit a statement, showing the
amounts to which the Contractor considers himself to be entitled on the bases of
the works mentioned in items 1, 2, 3, 4, 5, 6, 7 and 8 above. The estimated amount
of the monthly statement shall be the value of the works executed up to the end of
the month. The following formula will be used to calculate the amount of monthly
statement.
IPCn = [(Ac – Ap) + (Bc – Bp)*Pn] – Advance Repayment – Retention Money +
Material Advance – Material Recovery.
Where:
 IPCn is Interim Payment Certificate of the nth period or month
 A is the cumulative value of the work items 1 and 2 listed under Item No. I
above, for which A is calculated as follows:
A = {[((LE1/LT)*P1%*80%) + ((LE4a/LT)* P1%*20%)] + [((PC2* P2%*80%) +
(((ET-TF)/(CD-TF))* P2%*20%)]}*CA
 B is the cumulative value of the work items 3, 4, 5, 6, 7 and 8 listed under
Item No. I above, for which B is calculated as follows:
B = {[(LE3/LT) * P3%] + [(LE4/LT) * P4%] + [(LE5/LT) * P5 (1) %] +[(LE5/LT) *
P5(2) %] + [(LE6/LT) * P6%] + [(LE7/LT) * P7%] + [(LE8/LT) * P8%]} *CA
 PC: Percentage Completed of Employer’s Representative’s facility as
approved by the Employer’s Representative
 TF: Time given for provision of Temporary Facilities
 ET: Elapsed Contract time in months. ET shall not be entered less than TF
 CD: Construction Period in months
 LE: Completed length of each work item and it may vary from work item
to work item
 LT: The assumed total length of the project for payment purpose. For this
Contract, LT equals 89.9 km. This length is indicative only and the
total length is to be revised after the final design of the whole project
length and each payment certified to that date shall be revised
accordingly.
 CA: the contract amount
 Pn – Price Adjustment Factor
 P1-P8 inclusive: the payment percentages as assigned in the payment
schedule
 a: It is assumed that there would be no redesign work after earthwork
(work item 4) has been completed for a section and /or length and

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hence 20% of the remaining Design Payment would be released after

the completion of the earthwork for that particular length
 The subscript “c” and “p” under “A” and “B” indicates “current” and
“previous” periods respectively
Note: The subscript numbers from 1 to 8 in the formula for “A” and “B” correspond to
the numbers 1 to 8 of the work items listed under item No. I above.

 95% of the payment that are related to cut and borrow to fill and cut to spoil
shall be incorporated in the payment certificate before the application of
retention money, when the Contractor fulfills all the required works that are
stipulated under the relevant Clauses/Specifications/Quantities/Drawings of
the contract. Whereas, the remaining 5% of the withheld amount that are
related to the above mentioned pay item will be realized, when the contractor
executes all the necessary environmental reinstatement, and impact
management plan as per the relevant provisions of Contract documents. In
case where the Contractor maintains his negligence of undertaking the
necessary reinstatement and environmental protection works, after two
instance of warning, the Employer is at liberty to utilize the withheld amount of
any activities related to the reinstatement works either by assigning another
contractor to execute the work and/ or remedy damage emanated as a result
of the Contractor’s failure to timely rectification that are not covered by surety
and/or to execute the work by other means. Nevertheless, the implementation
of the abovementioned mechanism does not jeopardize the Employer’s
remedial rights that are stipulated under different sections of the Contract, in
cases where the Contractor becomes in default of the reinstatement works.
Furthermore, the Contractor shall submit his reinstatement methodology for
the specifically requested site while submitting possession of site requests for
quarries and borrow sites. Accordingly, possession of site requests that are not
accompanied with such methodologies or methods that are deficient, in the
opinion of the Engineer will automatically be rejected. In addition, the
Contractor shall make reinstatement works in strict adherence to the
captioned methodology and based on the applicable clause of the contract
document.

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FORM OF BID SECURITY (BANK GUARANTEE)

WHEREAS, ______________________  Name of Bidder (hereinafter Called the “Bidder”
has submitted his bid dated date ____________________ for the
________________________ [name of project] (herein after called “the Bid”)
KNOW ALL PEOPLE by these presents that
We ________________________________ Name of Bank having our office at
____________________ full Address] (hereinafter called “ the Bank”) are bound unto
the Ethiopian Roads Authority (hereinafter called “ the Employer”) in the sum of
_______________________________ for which payment well and truly to be made to the
said Employer the Bank binds himself, his successors and assigns by these presents.
SEALED WITH THE Common Seal of the said Bank this______ day of ________, 20__.
THE CONDITIONS OF this obligation are:
1. If the Bidder withdraws his bid during the period of bid validity specified in the
Form of bid
OR
2. If the Bidder refuses to accept the correction of errors in his Bid.
OR
3. If the Bidder having been notified of the acceptance of his Bid by the Employer
during the period of Bid validity:
(a) Fails or refuses to execute the Form of Agreement in accordance with the
Instruction to Bidders
(b) Fails or refuses to furnish the performance security in accordance with the
Instruction to Bidders.
We undertake to pay to the Employer up to the above amount upon receipt of his first
written demand, without the Employer having to substantiate his demand, provided that
in his demand the Employer will note that the amount claimed by him due to him is
owing to the occurrence of one or more of the above conditions, specifying the occurred
condition or conditions.
This Guarantee will remain in force up to and including the date 28 days after the date of
expiration of the bid validity, as stated in the Instruction to Bidders. Any demand in
respect of this Guarantee should reach the Bank not later than the above date.
Date____________________
SIGNATURE OF THE BANK ________________________
WITNESS _________________ SEAL ____________

(Signature, Name, and Address)

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FORM OF CONDITIONAL BID SECURITY FROM INSURANCE/BONDING INSTITUTION

Policy No: –––––––––––––––––––––––––

Date of Bid: ––––––––––––––––––––––––

Works:

Invitation to Bid:

Contractor:

Surety:

Bid Bond executed on:

Bond Amount:

Know all men by these presents that we, the principal and the surety, above named are
held and firmly bound unto Ethiopian Roads Authority (Hereinafter Called” The Client”)
in the bond amount stated above for the payment of which sum well and truly to be
made we bind ourselves, our heirs, executors, administrators, successors and assigns
jointly and severally by these presents.
At the request of the bidder, we ------------------------------ herby undertake to pay you any sum
or sums not exceeding in the total amount Birr -------------------- (----------------------) accompanied
by a written statement stating that the bidder is in breach of its obligation (s) under the
bid conditions because the bidder:-
a) has withdrawn its bid during the period of bid validity specified by the bidder in
the form of bid; or
b) having been notified of the acceptance of its bid by the Employer during the
period of bid validity, (i) fails or refuses to execute the contract form, if
required, or (ii) fails or refuses to furnish the performance security, in
accordance with the instructions to bidders, and (iii) refuses to accept the
Arithmetic correction of errors in his bid
This guarantee will expire: (a) if the bidder is the successful bidder, upon our receipt of
copies of the contract signed by the bidder and the performance security issued to you
upon the instruction of the bidder; or (b) if the bidder is not the successful bidder, upon
the earlier of (i) our receipt of a copy of your notification to the bidder of the name of
the successful bidder; (ii) twenty-eight (28) days after the expiration of the bidder’s bid.
Consequently, any demand for payment under the guarantee must be recovered by us at
the office on or before that date.
–––––––––––––––––––––– –––––––––––––––––––––
Principal Surety

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FORM OF UNCONDITIONAL LINE OF CREDIT

Ref. No.: - _______________

Date: - _________________

To: - Ethiopian Roads Authority

Subject: - Unconditional Credit Facility

Our customer [name and address of Contractor] in its letter dated [insert date of letter of
the Contractor request the Bank] has requested us letter of confirmation for their request
of credit facility for the [insert name of project] project for the amount of Birr [insert the
amount].

We hereby confirm that we will provide Unconditional and irrevocable line of credit
facility for the mentioned customer amounting Birr [insert the amount] valid for the
duration of Contract for the exclusive use of the aforementioned project if the customer
wins the project.

DATE____________________

SIGNATURE OF THE BANK ________________________

WITNESS 1 _________________ SEAL ____________

(Signature, Name, and Address)

WITNESS 2 _________________ SEAL ____________

(Signature, Name, and Address)

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Bidding Document

DISPUTES SETTLEMENT PROCEDURE

Agreement
A construction contract (the contract) for [insert name of project], has been signed
between Ethiopian Roads Authority (ERA) (the Employer) [insert name of contractor
and address], Ethiopia (the Contractor)

a) Clause 20 of the Conditions of the Contract provides for the selection of Dispute
Review Expert (DRE).

b) [Insert name of the DRE] has been selected to serve as the Dispute Review Expert
and has signed the Declaration of acceptance annexed as Annex 2 to this agreement.

General Conditions of Dispute Review Expert

1. Definitions

“Dispute Review Expert Agreement” is a tripartite agreement by and between:

(a) the “Employer”;

(b) the “Contractor”; and

(c) the “Expert” who is defined in the Dispute Review Expert Agreement as being
the Dispute Review Expert

The Employer and the Contractor have entered into a contract, which is called the
"Contract" and is defined in the Dispute Review Expert Agreement, which incorporates
this Appendix. In the Dispute Review Expert Agreement, words and expressions which
are not otherwise defined shall have the meanings assigned to them in the Contract.

2. General Provisions

a) The parties appoint the Dispute Review Expert in accordance with clause 20 of
the condition of the contract.
b) The Dispute Review Expert accepts this appointment and undertakes to carry out
the duties as described in the condition of contract clause 20.
This employment of the Dispute Review Expert is a personal appointment. At any time,
the Dispute Review Expert may give not less than 70 days’ notice of resignation to the
Employer and to the Contractor, and the Dispute Review Expert Agreement shall
terminate upon the expiry of this period.

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Dispute Settlement Procedure
 Ethiopian Roads Authority
Bidding Document

3. Warranties
The Dispute Review Expert warrants and agrees that he is and shall be impartial and
independent of the Employer, the Contractor and the Employer’s Representative. The
Dispute Review Expert shall promptly disclose any fact or circumstance which might appear
inconsistent with his/her warranty and agreement of impartiality and independence.

When appointing the Dispute Review Expert, the Employer and the Contractor relied
upon the Dispute Review Expert representations that he is:-
(a) Experienced in the work which the Contractor is to carry out under the Contract,
(b) Experienced in the interpretation of contract documentation, and
(c) Fluent in the language for communications defined in the Contract.
4. General Obligations of the Dispute Review Expert

The Dispute Review Expert shall:

(a) Have no financial interest or otherwise in the Employer, the Contractor or

Employer’s Representative, nor any financial interest in the Contract except for
payment for his services;
(b) Not previously have been employed as a consultant or otherwise by the Employer, the
Contractor or the Employer’s Representative or shall have no financial ties to these
parties, except in such circumstances as were disclosed in writing to the Employer and
the Contractor before they signed the Dispute Review Expert Agreement;
(c) Have disclosed in writing to the Employer, the Contractor before entering into the
Dispute Review Expert Agreement and to his best knowledge and recollection, any all
recent and close professional or personal relationships with any director, officer or
employee of the Employer, the Contractor or the Employer’s Representative, and any
and all previous involvement in the overall project of which the Contract forms part;
(d) Not, for the duration of the Dispute Review Expert Agreement, be employed as a
consultant or otherwise by the Employer, the Contractor or the Employer’s
Representative, except as a DRE, without the brier consent of the Employer and the
Contractor;
(e) Comply with the annexed procedural rules as Annex 1 to this Agreement and with
Sub-Clause 20 of the Conditions of Contract;

(f) Not give advice to the Employer, the Contractor, the Employer’s Personnel or the
Contractor’s Personnel concerning the conduct of the Contract, other than in
accordance with the annexed procedural rules;
(g) Not while serving as a DRE enter into discussions or make any agreement with the
Employer, the Contractor or the Employer’s Representative regarding employment
by any of them, whether as a consultant or otherwise, after ceasing to act under the
Dispute Review Expert Agreement;

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(h) Ensure his availability for all site visits and hearings as are necessary;

(i) Become conversant with the Contract and with the progress of the Works (and of
any other parts of the project of which the Contract forms part) by studying all
documents received which shall be maintained in a current working file;
(j) Treat the details of the Contract and all the DRE activities and hearings as private
and confidential, and not publish or disclose them without the prior written consent
of the Employer and the contractor.
(k) Be available to give advice and opinions, on any matter relevant to the Contract when
requested by both the Employer and the Contractor.

5. General Obligations of the Employer and the Contractor

a) The Employer, the Contractor, the Employer’s Personnel and the Contractor’s Personnel
shall not request advice from or consultation with the Dispute Review Expert regarding
the Contract; otherwise than in the normal course of the Dispute Review Expert’s
activities under the Contract and the Dispute Review Expert Agreement. The Employer
and the Contractor shall be responsible for compliance with this provision, by the
Employer’s Personnel and the Contractor’s Personnel respectively.

b) The Employer and the Contractor undertake to each other and to the Dispute Review
Expert that the Dispute Review Expert shall not, except as otherwise agreed in
writing by the Employer, the Contractor, and the Dispute Review Expert:

i) Be appointed as an arbitrator in any arbitration under the Contract;

ii) Be called as a witness to give evidence concerning any dispute before arbitrator(s)
appointed for any arbitration under the Contract; or
iii) Be liable for any claims for anything done or omitted in the discharge or purported
discharge of the Dispute Review Expert functions, unless the act or omission is
shown to have been in bad faith.
c) The Employer and the Contractor hereby jointly and severally indemnify and hold the
Dispute Review Expert harmless against and from claims from which he is relieved
from liability under the preceding paragraph.

d) Whenever the Employer or the Contractor refers a dispute to the Dispute Review
Expert DRE under Clause 20 of the Conditions of Contract, which will require the
Dispute Review Expert to make a site visit and attend a hearing, the Employer or the
Contractor shall provide appropriate security for a sum equivalent to the reasonable
expenses to be incurred by the Dispute Review Expert. No account shall be taken of
any other payments due or paid to the Dispute Review Expert.

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6. Payment

a) The Dispute Review Expert shall be paid a daily fee of [insert the daily rate of the
DRE]excluding VAT which shall be considered as payment in full for:

(i) Each day or part of a day up to a maximum of two days’ travel time in each
direction for the journey between the Dispute Review Expert’s home and the
site, or another location of a meeting or hearing as agreed by the Employer and
the contractor
(ii) Each working day on Site visits, hearings, analysing any dispute referral or
preparing any recommendations or decisions; and

(iii) Each day spent reading the parties’ submissions in preparation for a hearing.

b) All reasonable expenses including necessary travel expenses (air fare in economic
class, hotel and subsistence and other direct travel expenses) incurred in connection
with the Expert’s duties, as well as the cost of telephone calls, courier charges, faxes
and telexes: receipts for all expenses in excess of ETB 200.00 (Ethiopian Birr: Two
Hundred) shall be provided.

c) Any taxes properly levied in the Country on payments made to the DRE under Clause
6 shall be paid by the DRE to the appropriate body (tax Authority). However, the
Employer will transfer the 15% VAT amount directly to the Tax Authority as
appropriate.
d) The Dispute Review Expert shall submit invoices for payment of the air fares
quarterly in advance. Invoices for other expenses and for daily fees shall be submitted
following the conclusion of a site visit or hearing. All invoices shall be accompanied
by a brief description of activities performed during the relevant period and shall be
addressed to the Contractor.

e) The Contractor shall pay each of the Dispute Review Expert’s invoices in full within 30
calendar days after receiving each invoice and shall apply to the Employer (in the
Statements under the Contract) for reimbursement of one-half of the amounts of these
invoices. The Employer shall then pay the Contractor in accordance with the Contract.

f) If the Contractor fails to pay to the Dispute Review Expert the amount to which he is
entitled under the Dispute Review Expert Agreement, the Employer shall pay the
amount due to the Dispute Review Expert and any other amount which may be
required to maintain the operation of the Dispute Review Expert; and without
prejudice to the Employer’s rights or remedies. In addition to all other rights arising
from this default, the Employer shall be entitled to reimbursement of all sums paid in
excess of one-half of these payments, plus all costs of recovering these sums and
financing charges calculated at the rate specified in the Conditions of Contract.

g) If the Dispute Review Expert does not receive payment of the amount due within 70
days after submitting a valid invoice, the Dispute Review Expert may (i) suspend his
services (without notice) until the payment is received, and/or (ii) resign his
appointment by giving notice under Clause 7.
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7. Termination

a) At any time: (i) the Employer and the Contractor may jointly terminate the Dispute
Review Expert Agreement by giving 42 days’ notice to the Dispute Review Expert;
or (ii) the Dispute Review Expert may resign as provided in Clause 2.

b) If the Dispute Review Expert fails to comply with the Dispute Review Expert
Agreement, the Employer and the Contractor may, without prejudice to their
other rights, terminate it by notice to the Dispute Review Expert. The notice shall
take effect when received by the Dispute Review Expert.

c) If the Employer or the Contractor fails to comply with the Dispute Review Expert
Agreement, the Dispute Review Expert may, without prejudice to his other rights,
terminate it by notice to the Employer and the Contractor. The notice shall take
effect when received by them both.

d) Any such notice, resignation and termination shall be final and binding on the
Employer, the Contractor and the Dispute Review Expert. However, a notice by
the Employer or the Contractor, but not by both, shall be of no effect.

8. Default of the DRE

a) If the DRE fails to comply with any of his obligations under Clause 4 (a) - (d)
above, he shall not be entitled to any fees or expenses hereunder and shall,
without prejudice to their other rights, reimburse each of the Employer and the
Contractor for any fees and expenses received by the Dispute Review Expert for
proceedings or decisions (if any) of the Dispute Review Expert which are
rendered void or ineffective by the said failure to comply.

b) If the Dispute Review Expert fails to comply with any of his obligations under
Clause 4 (e) - (k) above, he shall not be entitled to any fees or expenses hereunder
from the date and to the extent of the non-compliance and shall, without prejudice
to their other rights, reimburse each of the Employer and the Contractor for any
fees and expenses already received by the Dispute Review Expert, for
proceedings or decisions (if any) of the Dispute Review Expert which are
rendered void or ineffective by the said failure to comply.

9. Disputes

Any dispute or claim arising out of or in connection with this Dispute Review Expert,
or the breach, termination or invalidity thereof shall be finally settled by institutional
arbitration. If no other arbitration institute is agreed, the arbitration shall be conducted
under the Rules of Arbitration of the Addis Ababa Chamber of Commerce and
Sectorial Associations Arbitration Institute (AACCSAAI) by one arbitrator appointed
in accordance with these Rules of Arbitration.

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Signed jointly on behalf of the Parties by:

Name: ……………………………………..

Position: ……………………………………

Signature: ………………………………….

On behalf of the Ethiopian Roads Authority

And

Name: ………………………………………

Position: …………………………………….

Signature: ……………………………………

On behalf of [insert name of contractor]

And signed by the Dispute Review Expert

……………………
[Insert name of DRE]

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Annex 1

Disputes Settlement Procedure

Rules and Procedures for the Functions of the Disputes Review Expert (DRE)

(See Clause 20 of the Conditions of Contract)

1. Except for providing the services required hereunder, the DRE shall not give any
advice to either party or to the Employer’s Representative concerning conduct of
the Works. The DRE:

a) Shall have no financial interest in any party to the Contract, or the Employer’s
Representative, or a financial interest in the Contract, except for payment for
his services;

b) Shall have had no previous employment by, or financial ties to, any party to
the Contract, or the Employer’s Representative, except for fee-based
consulting services on other projects, all of which is declared as in the DRE’s
declaration of acceptance.

c) has disclosed in writing to both parties, any and all recent or close
professional or personal relationships with any director, officer, or employee
of any party to the Contract, or the Employer’s Representative, and any and
all prior involvement in the project to which the Contract relates;

d) Shall not, while serving as DRE, be employed whether as a consultant or

otherwise by either party to the Contract, or the Employer’s Representative,
except as a DRE, without the prior consent of the parties;

e) Shall not, while serving as DRE, engage in discussion or make any agreement
with any party to the Contract, or with the Employer’s Representative,
regarding employment whether as a consultant or otherwise either after the
Contract is completed or after service as DRE is completed;

f) Shall be and remain impartial and independent of the parties and shall disclose
in writing to the Employer, the Contractor and the Employer’s
Representative, any fact or circumstance which might be such as to cause
either the Employer or the Contractor to question the continued existence of
the impartiality and independence required of a DRE; and

g) Shall be fluent in the language of the contract.

2. Except for its participation in DRE’s activities as provided in the Contract and in
this Agreement, none of the Employer, the Contractor and or the Employer’s
Representative shall solicit advice or consultation from the DRE on matters dealing
with the conduct of the Works.

3. The Contractor shall:

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(a) Furnish to the DRE a copy of all documents which he may request including
Contract Documents, progress reports, variation orders, and other documents
pertinent to the performance of the Contract.
(b) In cooperation with the Employer, coordinate the Site visits of the DRE,
including conference facilities, and secretarial and copying services.

4. The DRE shall begin his activities following the signing of this dispute review
contract and the signing of the DRE’s Declaration of Acceptance, and he shall
terminate these activities as set forth below:

(a) The DRE shall terminate his regular activities when either (i) the Defects
Liability Period referred to in Sub-Clause 12.1 (or, if there are more than one, the
Defects Liability Period expiring last) has expired, or (ii) the Employer has
expelled the Contractor from the Site pursuant to Sub-Clause 15, and when, in
either case, the DRE has communicated to the parties and the Employer’s
Representative his Recommendations on all disputes previously referred to him.

(b) Once the DRE has terminated his regular activities as provided by the
previous paragraph, the DRE shall remain available to process any dispute
referred to him by either party. In case of such a referral, the DRE shall
receive payments as provided in paragraphs 9 (A) and (B).

5. The DRE shall not assign or subcontract any of his work under this agreement.
However, the DRE may in his discretion decide to seek independent expert advice on a
particular specialized issue to assist in reaching a recommendation and the cost of
obtaining any such expert opinion (s) shall be shared equally by the Employer and the
contractor in accordance with the procedure specified in paragraph 9(E) below.

6. The DRE is an independent individual Expert and not an employee or agent of

either the Employer or the Contractor.

7. The DRE will be paid as follows:

a) A daily fee the Employer and contractor may agree in writing which shall be
considered as payment in full for:

i) Each day or part of a day up to a maximum of two days travel time in each
direction for the journey between the DRE’s home and the site or other
location of a meeting or hearing as agreed by the Employer and the
Contractor; and

ii) Each working day spent on site visits, in hearings, analysing any dispute
referral or preparing any recommendation or decision; and

iii) Each day spent reading the Parties’ submissions in preparation for a hearing

b) Routine work such as preparing for regular site visits, recording and reviewing
documents which are sent to the DRE are absorbed in to the daily rate.

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c) Expenses: In addition to the above, all reasonable and necessary travel expenses
including Economic class air fare, subsistence and other direct travel expenses.
These costs shall be reimbursed in the same currency as that in which fees are
payable. Receipts shall be required for all expenses in excess of ETB 200.00 (Two
Hundred Ethiopian Birr) shall be provided.

d) The DRE shall pay any taxes that may be levied in the country on payment made to
the DRE pursuant to this clause.
e) Escalation. The DRE fees shall remain fixed for the period of the DRE’s term.

f) Payments to the DRE shall be shared equally by the Employer and the Contractor.
The Contractor shall pay the DRE’s invoices within 30 calendar days after receipt
of such invoices and shall invoice the Employer (through the monthly statements to
be submitted) for one-half of the amounts of such invoices. The Employer shall pay
such Contractor’s invoices within the time period specified in the Construction
Contract for other payments to the Contractor by the Employer.

g) Failure of either the Employer or the Contractor to make payment in accordance

with this Agreement shall constitute an event of default under the Contract, entitling
the non-defaulting party to take the measures set forth, respectively, in Clause 15 or
Clause 16.

h) Notwithstanding such event of default, and without waiver of rights there from, in
the event that either the Employer or the Contractor fails to make payment in
accordance with this agreement, the other party may pay whatever amount may be
required to finance the activities of the DRE. The party making such payments, in
addition to all other rights arising from such default shall be entitled to
reimbursement of all sums paid in excess of one-half of the amount required to
finance the activities of the DRE, plus all costs of obtaining such sums.

8. DRE Site Visits:

(a) The DRE shall visit the Site and meet with representatives of the Employer
and the Contractor and the Employer’s Representative at regular intervals, at
times of critical construction events, at the written request of either party, and
in any case not less than 2 times in any period of 12 months. The timing of
Site visits shall be as agreed among the Employer, the Contractor and the
DRE, but failing agreement shall be fixed by the DRE.

(b) Site visits shall include an informal discussion of the status of the construction
of the Works, an inspection of the Works, and the review of any Requests for
Recommendation made in accordance with paragraph 10 (d) below. Site visits
shall be attended by personnel from the Employer, the Contractor and the
Employer’s Representative.

(c) At the conclusion of each Site visit, the DRE shall prepare a report covering
his activities during the visit and shall send copies to the parties and to the
Employer’s Representative.

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9. Procedure for Dispute Referral to the DRE:

a) If either party objects to any action or inaction of the other party or the
Employer’s Representative, the objecting party may file a written Notice of
Dispute to the other party with a copy to the Employer’s Representative
stating that it is given pursuant to Clause 20 and stating clearly and in detail
the basis of the dispute.

b) The party receiving the Notice of Dispute will consider it and respond in
writing within 14 days after receipt.

c) This response shall be final and conclusive on the subject, unless a written
appeal to the response is filed by the objecting party within 7 days after
receiving the response. Both parties are encouraged to pursue the matter
further to attempt to settle the dispute.

d) When it appears that the dispute cannot be resolved without the assistance of
the DRE, or if the party receiving the Notice of Dispute fails to provide a
written response within 14 days after receipt of such Notice, either party
may refer the dispute to the DRE by written Request for Recommendation to
the DRE. The Request shall be addressed to the DRE, with copies to the
other party and the Employer’s Representative, and it shall state that it is
made pursuant to Clause 20.

e) The Request for Recommendation shall state clearly and in full detail the
specific issues of the dispute to be considered by the DRE.

f) When a dispute is referred to the DRE, and the DRE is satisfied that the
dispute requires his assistance, the DRE shall decide when to conduct a
hearing on the dispute. The DRE may request that written documentation
and arguments from both parties be submitted to him before the hearing
begins. The parties shall submit insofar as possible agreed statements of the
relevant facts.

g) During the hearing, the Contractor, the Employer and the Employer’s
Representative shall each have ample opportunity to be heard and to offer
evidence. The DRE’s Recommendations for resolution of the dispute will be
given in writing to the Employer, the Contractor and the Employer’s
Representative as soon as possible and in any event not more than 56 days
after receipt by the DRE of the written Request for Recommendation.

10. Conduct of Hearings:

(a) Normally hearings will be conducted at the Site, but any location that would
be more convenient and still provide all required facilities and access to
necessary documentation may be utilized by the DRE.
(b) The Employer, the Employer’s Representative and the Contractor shall be
given the opportunity to have representatives at all hearings.

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(c) During the hearings, the DRE shall not express any opinion concerning the
merit of the respective arguments of the parties.

(d) After the hearings are concluded, the DRE shall formulate his
Recommendations and shall submit them in writing, together with an
explanation of his reasoning, to both parties and to the Employer’s
Representative. The Recommendations shall be based on the pertinent
Contract provisions, applicable laws and regulations, and the facts and
circumstances involved in the dispute.

11. In all procedural matters, including the furnishing of written documents and
arguments relating to disputes, Site visits, and conduct of hearings, the DRE shall
have full and final authority.

12. The DRE has signed two copies of the declaration of acceptance annexed to this
agreement and has made available one copy of the declaration of acceptance each
to the Employer and to the Contractor.

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Annex 2

DISPUTES REVIEW EXPERT’S DECLARATION OF ACCEPTANCE

WHEREAS

(a) A Construction Contract (the Contract) for the [insert name of project] has been
signed on May 23, 2017 between The Ethiopian Roads Authority (the Employer),
The Director General, Ras Abebe Aregay Street, P.O. Box 1770, Addis Ababa,
Ethiopia (the Employer) and [insert name and address of the contractor], (the
contractor).

(b) Clause 20 of the Conditions of General Conditions of the Construction

Contract provide for the selection of a Dispute Review Expert (DRE)

(c) The undersigned has been selected to serve as the DRE;

Now therefore, the undersigned DRE hereby declares as follows:

1. I accept the selection as a DRE and agree to serve in this capacity and to be bound
by the provisions of Clause 20 of the General Conditions of the Contract and the
Dispute Review Expert’s Rules and Procedures attached to the Conditions of
Particular Application.

2. With respect to paragraph 1 of the Dispute Review Expert’s Rules and Procedures, I
declare

(a) That I have no financial interest of the kind referred to in subparagraph (a);

(b) That I have had no previous employment for the past five years nor financial
ties of the kind referred to in subparagraph (b); and

(c) That I have made to both parties any disclosures that may be required by sub-
paragraphs (b) and (c).

Dispute Review Experts

Date:

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