Labour Contract Agreement for Construction

131512

LABOUR CONTRACT AGREEMENT FOR CONSTRUCTIONThis Labour Contract Agreement for Construction (the Agreement) is made this ..day of .. 2015, by and between

Sarah and Dan Watasa of ........, Uganda and telephone ................ (the Owners)

And

Mr. John Mwesigwa of P. O. Box ........Kampala and telephone number .................. (The Labour Contractor)(The Owners and the Labour Contractor will each hereinafter be referred to as a Party and collectively as the Parties).WHEREAS;

1. The Owners seek the services of a Labour Contractor for a construction of a new home on Plot...., Block.......in Mpigi, (the Project) described in detail under Schedule A;

2. The Labour Contractor has given undertakings as to qualifications, expertise and availability for the Project;

3. The Owners have selected the Labour Contractor for this Project;

4. The Parties are willing to and hereby enter into this Agreement; and

5. The Owners intend to, or have engaged, one or more Professionals to perform Architectural and/or Engineering services for the Project.

In consideration of the above, the Parties hereby agree as follows:ARTICLE 1: GENERAL DESCRIPTION OF SERVICES

1.1 The Services: The Labour Contractor agrees to provide labour for construction of the new home and see to completion in an excellent and substantial manner. He shall furnish pre-construction and construction labour services required for completion of the Project. The Labour Contractor guarantees that in providing the services he is thoroughly familiar with and understands the requirements of the Project scope and he is experienced in the construction of building Projects of the type and scope contemplated by the Owners. The Labour Contractor represents that he has all necessary education, skill, knowledge and experience required for the Project.

1.1.1 The Labour Contractor specifically represents that his performance of duties under the Agreement bears no conflict of interest. He shall not under the terms of the Agreement undertake any work that may cause a conflict of interest with his duties under this Agreement.1.2 Project Schedule/Time of the Essence: The Labour Contractor has provided the Owners with a preliminary schedule covering the pre-construction and construction of the Project as indicated in Schedule B. This preliminary schedule shall serve as the framework for the subsequent development of all detailed construction schedules required to complete the Project. The Labour Contractor shall at all times carry out his duties as expeditiously as possible and in accordance with the Project schedule, subject to delays in the schedule that are not the result of any act or omission, or circumstance within the control of the Labour Contractor or selected sub-contractors. Time is of the essence in the performance of this Agreement.1.3 Preparation of Site: The Labour Contractor shall, among other duties under this Agreement;

a) Visit and thoroughly inspect the Project Site and any structures;

b) Familiarize himself with the survey, including the location of all existing buildings, utilities, conditions, streets, components and other attributes having or likely to have an impact on the Project;

c) Familiarize himself with the Owners layout and design requirements, conceptual design, objectives and budget for the Project;

d) Familiarise himself with the pertinent Project dates and programming needs, including the Project schedule;

e) Review and analyze all Project geotechnical, Hazardous Substances, structural, chemical, electrical, mechanical and construction material tests, investigations and recommendations; and

f) Gather any other information necessary for a thorough understanding of the Project.

ARTICLE 2: OWNERS DUTIES, OBLIGATIONS AND RESPONSIBILITIES2.1Project Information: The Labour Contractor acknowledges that the Owners have provided him with information regarding the Owners requirements for the Project. 2.2 Owners Budget: The Owners shall establish and update a budget for the Project, including the amount allocated for construction, the Owners other costs, and reasonable contingencies related to these costs as appropriate.

2.3Time for Performance: The Owners shall review and approve or take appropriate action on all design submittals within timeframes set forth in Schedule B.

2.4Purpose of Owners Review: No review, inspection, or approval by the Owners of work or documents shall relieve the Labour Contractor of responsibility of performance of his obligations under this Agreement. Payment by the Owners pursuant to this Agreement shall not constitute a waiver of any of the Owners rights under the Agreement or at law, and the Labour Contractor expressly accepts the risk that defects, if any, in his performance may not be discovered until after payment, including final payment, is made by the Owners. Notwithstanding the foregoing, prompt written notice shall be given to the Labour Contractor if the Owners become aware of any failure or defect in the Project or non-compliance with this Agreement.2.5Status of the Owners: The Owners shall not have control or charge of construction means, methods, techniques, sequences or procedure, or for the safety precautions and programs in connection with the work, nor shall the Labour Contractor, for any of the foregoing purposes, be deemed the agent of the Owners.

2.6Owners Utilities: The Labour Contractor shall be responsible to provide and pay for consumption of, and connection to, utilities for temporary service and construction.

ARTICLE 3: LABOUR CONTRACTORS SERVICES

3.1The Labour Contractors services under this Agreement include General, Pre-Construction and Construction Services.

3.2Upon execution of this Agreement and confirmation of Notice to Proceed by the Owners, the Labour Contractor shall commence performance of Pre-Construction Services. Upon execution of Schedule D and confirmation of Notice of Proceed by the Owners, the Labour Contractor shall commence the performance of the Construction Services. 3.3General Services:-

a) Provide all labour services required to professionally complete the work in an expeditious and economical manner consistent with this Agreement and the best interests of the Owners.

b) Endeavor to develop, implement and maintain, in consultation with the Owners, Suppliers and Subcontractors, a spirit of cooperation, collegiality, and open communication among the parties so that the goals and objectives of each are clearly understood, potential problems are resolved promptly, and upon completion, the Project is deemed a success by all parties.c) Perform his services in accordance with the schedule requirements.

d) Participate in, and cooperate with design phase, construction phase, and post occupancy commissioning, validation, and other quality assurance and quality control processes.

3.4Pre-Construction:-

a) Actively and jointly participate with the Owners in the formation of the final Project design. b)Submit for Owners review within 30 (thirty) calendar days of the Owners execution of this Agreement:

i) Project reporting proceedings;

ii) Quality Control and Testing Program;

iii) Safety Program.

c)At each phase of design, in keeping with the Owners goals, the Labour Contractor shall familiarize himself with the design documents and provide the Owners with a report detailing construction issues and concerns relating to the design, with detail appropriate to the phase of the design. Each report shall;

i) include an estimate of labour construction cost, with the contingency associated with the work;

ii)Identify conceptual decisions necessary to prepare accurate cost reports with the fewest assumptions, qualifications and exclusions;

iii)Include an analysis and evaluation of jobsite management, site logistics and schedule considerations;

iv)Include an analysis and evaluation of the constructability of the design concepts, narratives, or drawings;

v)include an analysis and evaluation of the design concepts, narratives, or drawings in regard to conflicts or overlaps in the divisions of the work, design details affecting construction including, without limitation, unusual or custom materials, value analysis, identification of long-lead materials affecting the construction schedule, availability of labour and other factors affecting construction;

vi)Address problems, conflicts, defects or deficiencies in the design concepts and offer resolutions of the same; andvii)Address any other issues which the Labour Contractor reasonably believes may have a negative impact on the Project schedule, budget or performance.

3.5 The Labour Contractor understands and acknowledges the Owners intent that the Project will be completed within the budget set by the Owners for the project. Accordingly, throughout the Pre-Construction Services phase, the Labour Contractor shall keep the Owners informed if he believes that the Project may not be completed within the Owners budget, the reasons why it cannot be, and the Labour Contractors solutions therefor.

ARTICLE 4: COMPENSATION OF LABOUR CONTRACTOR4.1The Owners shall pay and the Labour Contractor shall accept, as full and complete payment for the Services, only the sum of the following items;a) The compensation for the Labour Contractors services (Labour Contractors Staffing Costs);

b) The aggregate net cost of the Labour Contractors General Conditions (General Conditions Cost);c)Labour Contractors overhead and Profit.

4.1.1Staffing Costs include and are limited to actual expenditures or negotiated amounts in the Cost for Labour Estimate;4.1.2General Conditions Cost include and are limited to actual expenditures or negotiated in the cost for Labour estimate proposal approved by the Owners;

4.1.3Construction Managers Overhead and Profit is a fixed percentage of the Guaranteed Maximum Cost, Guaranteed Contingency, Guaranteed Maximum Staffing Costs and Guaranteed Maximum General Conditions Cost. This shall cover expenses such as telephone service and long distance zone telephone charges and similar expenses.ARTICLE 5: AUDIT RIGHTS

5.1 N/A5.2 N/AARTICLE 6: MISCELLANEOUS PROVISIONS6.1Assignment: The provisions of this Agreement shall be binding on and endure to the benefit of the successors of each Party. Neither Party may agree to assign, transfer, charge or otherwise dispose of or subcontract any of its rights or obligations hereunder without the prior written consent of the other Party.

6.2Expenses: The Owners shall pay all expenses incidental to the preparation of this Agreement and preparation for the Project contemplated hereunder, including all legal and other professional fees and disbursements.

6.3Entire Agreement and Amendment:

6.3.1 This agreement and other documents referred to herein or furnished pursuant hereto, constitute the entire agreement among the Parties hereto with respect to the Project, and supersede all prior oral or written agreements, commitments or understandings with respect to the matters provided for herein.

6.3.2 No modification, variation or amendment of this Agreement shall be effective unless made in writing and signed by all Parties to this Agreement.

6.4Severability: If any part of any provision of this Agreement or any other agreement or documents given pursuant to or in connection with this Agreement shall be invalid or unenforceable in any respect, such part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions of this agreement.

Should any provision of this Agreement be or become ineffective for reasons beyond the control of the Parties, the Parties shall use reasonable efforts to agree upon a new provision which shall as nearly as possible have the same commercial effect as the ineffective provision.

6.5Waiver: No delay or failure on the part of any Party hereto in exercising any right, power or privilege under this Agreement or under any other documents furnished in connection with or pursuant to this Agreement shall impair any such right, power or privilege or be construed as a waiver of any default or any acquiescence therein. No single or partial exercise of any such right, power or privilege shall preclude the further exercise of such right, power or privilege, or the exercise of any other right, power or privilege. No waiver shall be valid against any party hereto unless made in writing and signed by the party against whom enforcement of such waiver is sought and then only to the extent expressly specified therein.

6.6Governing Law and Arbitration

6.6.1This agreement shall be governed by and construed in accordance with the laws of Uganda and the High Court of Uganda, Commercial Division shall have exclusive jurisdiction.6.6.2All disputes that may arise in the interpretation and/or enforcement of this Agreement shall be resolved amicably failing which they are to be submitted to final and binding arbitration under the Arbitration and Conciliation Act (Cap 4) by a single arbitrator appointed jointly by the Parties.

IN WITNESS WHEREOF this Agreement has been duly executed by the Parties hereto the day and year first hereinbefore written.

THE OWNERS

SIGNED and DELIVERED by the

]

said SARAH WATASA

] Name:....

]

] Signature:.In the presence of:

SIGNED and DELIVERED by the

]

said DAN WATASA

] Name:....

]

] Signature:.In the presence of:

THE LABOUR CONTRACTORSIGNED and DELIVERED by the

]

said JOHN MWESIGWA

] Name:....

]

] Signature:.In the presence of:SCHEDULE A: Description of the Project.SCHEDULE B:Preliminary Construction ScheduleSCHEDULE C: Project TeamSCHEDULE D:Authorization to Proceed With Construction.Pursuant to the Labour Contract Agreement between Sarah and Dan Watasa (the Owners) and John Mwesigwa (the Labour Contractor) on the .day of 2015, for the construction of a house in Mpigi, the Owners and the Labour Contractor hereby execute this Authorization and further agree as set forth below.1. The Parties acknowledge that the construction shall be in the phases detailed in Schedule B to the Agreement;

2. The Parties additionally acknowledge that Phase One of the construction commenced prior to execution of this Authorization, and the Authorization ratifies the Labour Contractors work in Phase One.3. The projected date for completion is the day of .., 204. The Labour Contractors Guaranteed Maximum Price (GMP) proposal dated the .day of 2015 attached hereto is incorporated herein and accepted by the Owners.THE OWNERS

SIGNED and DELIVERED by the

]

said SARAH WATASA

] Name:....

]

] Signature:.In the presence of:

SIGNED and DELIVERED by the

]

said DAN WATASA

] Name:....

]

] Signature:.In the presence of:

THE LABOUR CONTRACTORSIGNED and DELIVERED by the

]

said JOHN MWESIGWA

] Name:....

]

] Signature:.In the presence of:11 | Page