FEKACONSTRUCTIONCOMPANY

EARTHWORKS
SUBCONTRACT
FAIZABADHEPPPROJECT

PREPAREDBY:AHMETAM
19.04.2017

Contents
1. PARTIES........................................................................................................................................3
2. LEGAL CONTRACT ADDRESSES OF THE PARTIES.........................................................3
3. PROJECT NAME & PROJECT AREA......................................................................................3
4. SCOPE of WORK.........................................................................................................................3
5. CONDITIONS OF THE CONTRACT.........................................................................................5
5.1. SUBCONTRACTORS RESPONSIBILITIES.......................................................................5
5.2. CONTRACTORS RESPONSIBILITIES................................................................................6
6. LIQUIDATION OF THE CONTRACT........................................................................................7
7. WORK SCHEDULE......................................................................................................................7
8. DELAY DAMAGES.......................................................................................................................8
9. PAYMENT......................................................................................................................................8
10. FORCE MAJEURE...................................................................................................................8
11. HEALTH & SAFETY AT WORK.............................................................................................9
12. DISPUTES AND ARBITRATION..........................................................................................10
13. ATTACHMENTS.....................................................................................................................10

CONTRACT AGREEMENT
Earthworks at Faizabad/ HEPP

1. PARTIES
This agreement was made on between FEKA Construction Company (hereinafter is
referred as Contractor) and .. Construction Company(hereinafter is referred as Sub-
Contractor).

2. LEGAL CONTRACT ADDRESSES OF THE PARTIES

CONTRACTOR : FEKA CONSTRUCTION CO.

Address: SHASH DARAK ST. 03, LANE HOUSE 95 KABUL/AFGHANISTAN
Phone No: +93 706 383 200
E-mail: feka@feka.com.tr

SUBCONTRACTOR : CONSTRUCTION COMPANY

Address:
Phone No:+93.
Email: xxxxx@xxxxx.com

ENGINEER : FICHTNER GmbH & Co. KG

EMPLOYER : MINISTRY OF ENERGY AND WATER

3. PROJECT NAME & PROJECT AREA

Construction of Faizabad Hydro Power Station, Shorabak District, Faizabad City, Badakshan
Province- AFGHANISTAN

4. SCOPE of WORK

a) Subcontractor has accepted the conditions of the construction site and acknowledges that all
related, adjacent or dependent work, services, utilities and materials are satisfactory to him
and waives any and all claims for damages or extras with respect to defects or failures
thereof. Subcontractor assumes responsibility for fully informing himself as to the work
required and for the accuracy of all lines, levels, measurements, property lines and reference
lines in connection with his work. No variation from specified lines, grades or dimensions shall
be made without the written consent of the Contractor.
b) Subcontractor shall be responsible for protecting his own work until final acceptance of the
Work and shall replace at his own expense any damaged work or material. Subcontractor

shall make good any damage which he may cause to other work and materials on the project,
or to structures or to adjacent property. Subcontractor shall further hold the Contractor
harmless from any and all loss or damage caused by his acts or those of his agents or
employees and shall pay to the Contractor all losses caused by his performance of this
contract.
c) The Sub-Contractor agrees in consideration of the mutual promises herein contained, that he
will to the satisfaction of the Contractor, excavate the areas shown in the drawings.
d) Within the scope of Work, Earthworks at Faizabad HEPP site will be undertaken and the
following services will be provided by the Subcontractor:
i. Site Mobilization
ii. Construction of access roads to the excavation site using excavation or blasting method.
Any excavation which is the out of contractual scope is under Subcontractor's
responsibility and will not be paid.
iii. Surface excavation works, rock excavation by blasting and/or by ripping to be
implemented at left bank gravity dam,right bank gravity dam, spillway, bottom outlet,
powerhouse, powerintake, trailraceareas in accordance with approved project, excavation
drawings and as per instructions of the Contractor'ssite representative.
iv. Transportation of excavated material from the site to the designated disposal areas within
the site or outside of the site.
v. Implementation of rock blasting works, provision of necessary equipment, explosive
material including all permits & certificates, and site blasting team.
vi. Provision of all necessary excavation machinery and equipment as per attached minimum
required machinery list.

e) Sub-Contract work shall be performed in a good and workmanlike manner according to the
best trade practices, in accordance with applicable codes and requirements of the governing
authority, and technical specifications.

f) Quantity of excavation will be calculated according to the excavation drawings. Exact

excavation locations will be determined and marked by Contractors topographic survey crew
with Subcontractor's surveyor.
g) The works shall be done according to the BOQ items & time schedule & technical
specificationsand attached documents (Sub-Contractors Price Offer & MOS).
h) Subcontractor agrees to furnish all labour, materials, installation supplies, equipment,
services, machinery, tools, sales taxes, use taxes and any other facilities of every kind and
description, including proper supervision at all times, all as required for the prompt and
efficient performance of said work, and all work incidental thereto.
i) Subcontractor agrees to commence construction upon the notice of Contractor, and in any
case within two (2) days after notice from the Contractor to proceed, and to complete each

part of his work expeditiously and in time to avoid delaying any other work at the job site.
Should the Subcontractor fail, be unable, or refuse to supply sufficient manpower to the job,
for any reason whatsoever, it shall be a material breach of this subcontract. Subcontractor
shall strictly comply with any time schedule, set by the Contractor at any time, and the
instructions of the Contractor's representative. If the Subcontractor is delayed in the judgment
of the Contractor by any dispute (whether or not the dispute is with the Subcontractor), the
Contractor shall have the right to immediately replace the Subcontractor, in which case the
Subcontractor shall vacate the job and be paid (after completion of the replacement
subcontractor's work) the amount for the Works he did hereof, less the cost incurred by the
Contractor for the replacement subcontractor's charges in completing the work. The work
required herein is in any event to be completed in accordance with the current construction
schedule.

5. CONDITIONS OF THE CONTRACT

5.1. SUBCONTRACTORS RESPONSIBILITIES
a) The Subcontractor will be fully responsible to accomplish the excavationand excavation
related works (clearance of excavation area, surface excavation, excavation by blasting &
ripping, transportation of excavated material) at FHEPP site in accordance with approved
excavation drawings, and by the instructions of Contractorsrepresentative.
b) Subcontractor will start the works with sufficient number of employees (surveyor, skilled labor,
engineers, blasting crew, etc.), machinery-equipment, and material &tools(water-resistant /
emulsion blasting material) as indicated on the minimum required list of machinery and make
necessary increases/decreases upon the notice of Contractor.
c) Subcontractor will provide the qualified construction team and this team will be active and
available at site during the works.
d) It is Subcontractor's responsibility to acquire all necessary permits for blasting works, storage,
dispatch of explosives to the site, and transportation of explosives within the site in safe and
secure manner.
e) Subcontractor is required to provide all necessary equipment (water-resistant / emulsion
blasting material), tools, and machinery and take necessary safety & security precautions for
blasting works.
f) The Subcontractor is responsible for payment of salaries and all taxes, premium cost for all of
his employees regularly and is required to declare that there is no payable debt remaining to
any of the employees from the past before submission of the invoice. The Contractor may
request from the Subcontractor a signed documentation regarding no payable amount
remaining to the employees as of date of invoice.
g) The works will be carried out in conformity with the project drawings and technical
specifications and with the quality that will be accepted by the Contractor.
h) Subcontractor will construct all determined service/access roads. Upon completion of the
works, the disposal/storage area will be leveled and arranged by the Subcontractor.

i) Subcontractor will provide a safe working environment for all employees as per the technical
specifications indicated on the main contract and take necessary safety precautions as per
Contractors or Engineers (FICHTNER) instructions.
j) The subcontractor will be held responsible for the damages that might occur on the machinery
and equipment provided by the Contractor and entrusted to the subcontractor due to
inappropriate usage. All damages that may occur will be recorded to official report and the
cost for damages will be deducted from the subcontractors invoice.
k) Subcontractor is responsible for ordering necessary equipment in such a manner that will not
cause delay on works.
l) Subcontractor shall not employ any other subcontractors, or any teams under the name of
different company, organizations, or any local groups.
m) Until acceptance of the works by the Engineer, the Subcontractor will be responsible for any
damages or delays on the works.
n) Any delay occurred on works caused by the Subcontractors site activities will be punishable
as per delay penalty indicated on this contract.
o) Subcontractor commits to examine the work site to foresee all possible difficulties regarding
geological conditions, transportation, and working environment, and pledges that all direct &
indirect cost and profit are included in the total contract price.
p) If the Subcontractors personnel incur detriments, bodily injury, serious injury, or death during
implementation of the works, Contractor shall not be liable and Subcontractorhas no right to
claim for compensation.
q) Subcontractor undertakes to recompense all damagesand losses occurred to the Contractor
or any third party, or organization resulting from Subcontractors site crews actions during
implementation of the works.
r) In case of increase or decrease in excavation amount, Subcontractor shall not claim any
increase in unit price.
s) During the works, Contractor may claim from the Subcontractor for similar additional works
within the scope of project or claim for interruption/cancellation of the remaining works at any
time.
t) All employees of the Subcontractor shall obey the site rules.
u) Contractor can ask to subcontractor replacement of any personnel or labor at any time stating
with or without any reason and subcontractor shall take immediate action for replacement.

5.2. CONTRACTORS RESPONSIBILITIES

a) Contractor will be legally responsible to make available each and every one indispensable
assistance such as site handover, specifications and intended location of the excavation
works.

b) The Contractor and Engineer will be available on the work site for supervision and acceptance
of the works to avoid any delay on the progress and conflict.
c) The Contractor will provide food (regular meals) and accommodation to the Subcontractors
site staff.
d) Contractor shall make a payment of executed works in accordance with approved payment
certificates.
e) If found necessary by Contractor, he may assign his own personnel & machinery or employ
another subcontractor(s) to complete the works. In this case, the Subcontractor has no right
for objection to the Contractors decision and shall not produce anyfinancial claim from the
Contractor.

6. LIQUIDATION OF THE CONTRACT

Contractor shall have right to cancel, liquidate, or suspend this contract under the following conditions:

a) Subcontractors inability to carry out the works in an acceptable manner and/or meet the
projectswork schedule milestones/requirements within the designated time period and
therefore unable to complete the works by the subcontractorby the pre-determined completion
date.
b) For any reason, if Contractor finds unnecessary to proceed the works or unable to undertake
the conditions or responsibilities as indicated under this contract.
c) Determination of any major incidents, or difficulties by the Contractor that will lead impossible
to carry out the works.
d) Upon cancellation/liquidation/suspension of the contract, the Subcontractor will be paid for all
acceptable works based on the unit prices listed on the BOQ list.
e) In case of cancellation/liquidation/suspension of the contract, the Subcontractor hereby
pledges and accepts not to demandany financial claim from the Contractor

7. WORK SCHEDULE

Subcontractor shall proceed the works in accordance with the Work Schedule. In case of any
probable future events or circumstances which may affect the works adversely or cause delay the
implementation of Works, subcontractor shall immediately give notice to Contractor.
If the Contractor gives notice to the Subcontractor that Work Schedule fails to comply with the
contract, or to be consistent with actual progress, Subcontractor shall take actions to compensate
delays which may require increases in the working hours and/or in the numbers of machineries and
labors at the risk and cost of Subcontractor.

8. DELAY DAMAGES
If the Subcontractor fails to comply with Work Schedule, the Subcontractor shall subject to pay delay
damages to the Contractor for this default. These delay damages shall be paid for every day as 5000
USD (five-thousand-United-States of American Dollars) which shall elapse between the relevant time
for completion. These delay damage shall be the only damages due to from Subcontractor for such
default. These damages shall not relieve the Subcontractor from his obligation to complete the Works
of from any other duties, obligation or responsibilities. Total amount of delay damages shall not
exceed %10 of the final contract amount.

9. PAYMENT

Any quantities which is set out in the Bill of Quantities are estimated quantities and are not to be taken
as the actual and correct quantities of the Works which the Contractor is required to execute. The
Works shall be measured, and valued with contract unit prices for payment All taxes related to the
proposed works is included in the contract amount and no additional payment will be done by the
Contractor. There will be no additional payment due to level or depth of excavation. Payment of all
excavation works with all depths and location are subjected to specified BoQ items.

Payment Statements shall be prepared monthly by Subcontractor and submit for approval to the
Contractor. Contractor will check and revise or approve the statements and issue certified amount.
Payment shall be paid within the 45 days after the issuing of Payment Certificate. Any certified
payment amount less than 200.000,00 Euro(Two-Hundred-Thousand Euro) will not paid until the
reaching this amount.

Retention

While preparing a Payment certificate, amount to be deducted for retention. calculated by applying the
percentage of retention as 5% to the total of the above amounts.

Payment of Retention

When the contractual work has been completed, Contractor will issue the completion certificate.
Retention Money shall be paid by the Contractor to the subcontractor after 15 days from the
completion certificate.

10. FORCE MAJEURE

a) Force Majeure means an exceptional event or circumstance:
i. which is beyond a Partys control,
ii. which such Party could not reasonably have provided against before entering into
the Contract,

iii. which, having arisen, such Party could not reasonably have avoided or overcome,
and
iv. which is not substantially attributable to the other Party.

b) Force Majeure may include, but is not limited to, exceptional events or circumstances of the
kind listed below, so long as conditions (a) to (d) above are satisfied:
i. war, hostilities (whether war be declared or not), invasion, act of foreign enemies,
ii. rebellion, terrorism, sabotage by persons other than the subcontractors Personnel,
revolution, insurrection, military or usurped power, or civil war,
iii. riot, commotion, disorder, strike or lockout by persons other than the
subcontractors Personnel,
iv. munitions of war, explosive materials, ionizing radiation or contamination by radio-
activity, except as may be attributable to the subcontractors use of such munitions,
explosives, radiation or radio-activity,
v. natural catastrophes such as earthquake and

c) If a Party is or will be prevented from performing its substantial obligations under the Contract
by Force Majeure, then it shall give notice to the other Party of the event or circumstances
constituting the Force Majeure and shall specify the obligations, the performance of which is
or will be prevented. The notice shall be given within 14 days after the Party became aware, or
should have become aware, of the relevant event or circumstance constituting Force Majeure.
The Party shall, having given notice, be excused performance of its obligations for so long as
such Force Majeure prevents it from performing them. Notwithstanding any other provision of
this Clause, Force Majeure shall not apply to obligations of either Party to make payments to
the other Party under the Contract

d) Each Party shall at all times use all reasonable endeavours to minimize any delay in the
performance of the Contract as a result of Force Majeure. A Party shall give notice to the other
Party when it ceases to be affected by the Force Majeure.

e) If the subcontractor is prevented from performing any of his obligations under the Contract by
Force Majeure and suffers delay by reason of such Force Majeure, the Force Majeure shall be
treated as a Compensation Event and shall be entitled for extension of time. Any payment
shall not be done due to Force Majeure.

11. HEALTH & SAFETY AT WORK

The Subcontractor shall comply with local rules of Health & Safety.
i. QA & QC

ii. FZA/FD/00/RP/GEN/007 _ Potential Environmental Impacts &Mitigation Measures During

Construction"
iii. Site Security Precautions (Rules)

12. DISPUTES AND ARBITRATION

Any controversy or claim arising out of or in connection with the contract or any breach thereof, shall,
unless it is settled amicably in direct negotiations , be referred to arbitration. Each party to contract
shall appoint a single arbitrator, who in turn will jointly appoint a third arbitrator, who shall become a
chairman of the arbitration panel. The arbitration panel shall decide in any case of an un-resolvable
dispute. If the parties have an dissatisfaction of the decision taken by arbitration panel, Afghanistan
Courts decision will be the final and both parties shall be bound by that decision.

13. ATTACHMENTS

Attachment-1: List of Minimum Required Machinery & Equipment

Attachment-2: Bill of Quantity
Attachment-3: List of Minimum Required Personnel
Attachment-4: Cost of Contractor's Machinery in case of requirement by Subcontractor
Attachment-5: Existing site surveying as a base of quantity measurement
Attachment-6: Excavation Plan and application drawings
Attachment-7: Estimated Rock Line
Attachment-8: Work Schedule
Attachment-9: Excavation Method of Statement
Attachment-10: Site Security Precautions (Rules)

This contract is consist of 13 clauses and prepared as two copies.

CONTRACTOR SUBCONTRACTOR
FEKA CONSTRUCTION COMPANY .

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ATTACHMENTS

Attachment-1: List of Minimum Required Machinery & Equipment

No Machinery & Equipment Minimum Requirements /Features Quantity

Type
1 Excavator 5 YEARS OLD 4
Excavator 5 YEARS OLD 2
(Crusher Function)
3 Jack Hammer 5 YEARS OLD 4
4 Tamrock (Rock Drilling 5 YEARS OLD 1
Machine)
5 Dump Trucks 5 YEARS OLD 20
6 Blasting Material / Sufficient amount, water-resistant / S
Explosives emulsion
7 Loader 5 YEARS OLD 1

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Attachment-2: Bill of Quantity

Attachment-2: Bill of Quantity

Item No. Item Description Details Unit Amount Unit Price() Total Price ()
1 Excavation of soft material through Prices include: Transportation of the excavated material, M3 198.860,15 2,50 497.150,38
excavator and loader and shifting up to leveling of the disposal areas, machinery & equipment, and
1KM workmanship costs.
2 Excavation of hard material through jack Prices include: Transportation of the excavated material, M3 6.437,87 4,25 27.360,94
hammer and bulldozerand shifting up to leveling of the disposal areas, machinery ,fuel& equipment,
1KM and workmanship costs.
3 Excavation with blasting in dry area and Prices include: Transportation of the excavated material, M3 6.437,87 12,00 77.254,42
shifting up to 1KM leveling of the disposal areas, machinery, fuel& equipment,
procurement of appropriate blasting material, and
workmanship costs.
4 Excavation with blasting in wet area and Prices include: Transportation of the excavated material, M3 19.313,60 12,00 231.763,25
shifting up to 1KM leveling of the disposal areas, machinery, fuel& equipment,
procurement of appropriate blasting material, and
workmanship costs.
5 Disposal and shifting of unsuitable OPTIONAL M3 0,38 0,00
materials per KM distance.
6 Arrangement of disposal area for OPTIONAL M3 0,19 0,00
unsuitable materials
TOTAL 833.528,98

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Attachment-3: List of Minimum Required Personnel

No Description Qualification Quantity
1 Surveyor 10 Years Experience 1
2 Supervisor 10Years Experience 2
3 Excavator Operator 5Years Experience 4
4 Loader Operator 5 Years Experience 1
5 Truck Driver 5 Years Experience 20
6 Skilled Labor (Blasting 10 Years Experience 8
Team )
7 Unskilled Labor(Traffic 4
management, other works
etc.)

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Attachment-4: Cost of Contractor's Machinery in case of requirement by Subcontractor

No Description Unit Unit Price (Euro)
1 Surveyor day 50
2 Excavator without fuel and month 7000
Operator
3 Loader without fuel and month 4000
Operator
4 Skilled Labor day 30
5 Unskilled Labor day 20

Attachment-5: Existing site surveying as a base of quantity measurement

Attachment-6: Excavation Plan and application drawings
Attachment-7: Estimated Rock Line
Attachment-8: Work Schedule
Attachment-9: Excavation Method of Statement
Attachment-10: Site Security Precautions (Rules)

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