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Contract Ammendment #1 AASTU - Additional Advance

This amendment agreement modifies the original construction contract between Addis Ababa Science and Technology University and SATCON Construction PLC for the Administration Building Block project. It allows for an additional 10% advance payment to the contractor to address increased construction costs due to currency devaluation and inflation. The additional payment will be deposited in a joint bank account and used solely for the project. The contractor must provide an updated schedule demonstrating how the additional funds will improve progress.

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529 views4 pages

Contract Ammendment #1 AASTU - Additional Advance

This amendment agreement modifies the original construction contract between Addis Ababa Science and Technology University and SATCON Construction PLC for the Administration Building Block project. It allows for an additional 10% advance payment to the contractor to address increased construction costs due to currency devaluation and inflation. The additional payment will be deposited in a joint bank account and used solely for the project. The contractor must provide an updated schedule demonstrating how the additional funds will improve progress.

Uploaded by

Tamrat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Addis Ababa Science and Technology University

Administration Building Block Project

Contract Amendment No.1

(Additional Advance Payment)

Contractor: SATCON Construction PLC

Consultant: Acute Engineering PLC

Employer: Addis Ababa Science and Technology University

June, 2021
Contract Amendment No. 1
This Amendment Agreement (“Amended Agreement”) is made and entered into on 29th day
of June 2021, Addis Ababa on the basis of the Main Agreement made on 1st day of August
2018 by and between Addis Ababa Science and Technology University (hereafter referred to
as the ‘The EMPLOYER’) on one part whose address is Addis Ababa Science and Technology
University, Tel. 251 1-18959444/-1889899, P.O Box 16417, Addis Ababa, Ethiopia

AND

SATCON Construction & PLC (hereafter referred to as the ‘The CONTRACTOR’) on the other
part, whose address is: SATCON Construction PLC, Address: Nefas silk Lafto Sub City, Tel. 251-
113 72 78 22/ 911 43 91 92, P.O Box : 41781, Email : satcon@ethionet.et, Addis Ababa, Ethiopia

BACK GROUND
Addis Ababa Science and Technology University and SATCON Construction PLC are parties
to the Construction Contract Agreement for the Construction of Administration Building
Block at Addis Ababa Science Technology University Site dated on the 1st day of August 2018
(“Main Contract”),
Now therefore, Addis Ababa Science and Technology University and SATCON Construction
PLC want to amend the Main Contract and agree that these Amended Agreement terms and
conditions shall become a part of Contract entered into between the parties for construction
of Administration Building Block at Addis Ababa Science Technology University as more fully
described there and any other documents specifically referenced in such construction work.

WHEREAS
(a) Advance payment was not timely settled to the Contractor that affected the project
progress previously
(b) After the devaluation of local currency by the National Bank of Ethiopia, the cost of
construction materials especially imported industrial materials has been increasing
tremendously,
(c) The Contractor has currently completed basic structural works and the next coming
finishing works require cash injections to counter the increasing construction costs
(d) The Contractor has notified with letter ST1/510-AST/10/21 dated 18/06/2021 and in tri party
meetings that devaluation and inflation has significantly affected the progress of the
Works
(e) Tri-party meeting was held on June 14, 2021 as the project is lagging behind the schedule,
and the Contractor has agreed to improve the project progress significantly if the
Employer has provided him financial support.
NOW THEREFORE, the parties hereto agree on the Amendment Agreement as follows:

1. the following is hereby deleted and modified to the Main Contract and shall hereafter
be read as follows:
 SCC Clause 60.2, the amount of the advance payment shall be 20% of the total
contract price. An additional advance payment amounting 10% of the remaining
work may be issued to the Contractor at his written request in a time additional
finance is needed for project facilitation
 The Employer has agreed to pay for 10% of remaining works as an additional
advance payment to financially support the Project.
 SCC: GCC 60.9(b)An advance payment shall be made within 30 days by the Public
Body in equal installments against the statements for the first months of the
Works until the advance payment has been fully set off.
2. The Amendment Agreement No. 1 amends the Main Contract, and both must be read
together, and constitute one agreement
3. All references to the ‘Contract” in the Main Agreement and this agreement shall mean
the Main Contract and this Amended Agreement
4. All other obligations, terms and conditions contained in the Main Contract continue in
full force and effect until the termination of the Main Contract unless otherwise
specifically amended herein. Words and phrases appearing in this Agreement and
defined in the Main Contract shall have the same meaning for the purposes of this
Agreement as they have for the purposes of the Main Contract.
5. In the instance of a conflict between the terms of the Main Contract and this
Amendment Agreement, the terms of this Amendment Agreement prevail.
6. It is agreed for the provision to the Public Body by the Contractor of an advance
payment security in an amount equal to the additional advance payment they receive
in the form of an unconditional bank guarantee from a reputable bank.
7. It is also agreed the Additional Advance Payment to be effected to the Contractor will
be deposited in a joint account opened in the name of the Employer and the
Contractor and will be managed jointly for the execution of this specific project only
8. In case of failure of performance, the Employer has a right to withdraw all remaining
balance in the joint account to the university account at any time.
9. The Contractor shall clearly show the effect of the additional advance payment on the
progress of the project and shall demonstrate how the additional advance improves
the project progress by supplying revised crushed schedules before the additional
advance payment is effected.

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed in
accordance with conditions above and the main contract on the days, months and years
above written.

EMPLOYER CONTRACTOR
Signed by _________________ Signed By_________________

Name _____________________ Name _____________________

Position ___________________ Position __________________

WITENESS

1. _____________________________________ Signature _______________________

2. _____________________________________ Signature _______________________

3. _____________________________________ Signature _______________________

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