This agreement made on the day of between

SUBCONTRACT AGREEMENT

(LABOUR ONLY)

BETWEEN

AND

FLOOR SCREED

SUBCONTRACT AGREEMENT (LABOUR ONLY) NO.....

January, 2015

SUBCONTRACT AGREEMENT (LABOUR ONLY) NO....

This Agreement made on the 10th January 2015 between

.............................of P.O Box ............ Kigali (Hereinafter referred to as the Employer/Main-Contractor) represented by their........................... on one part

and

.. of P.O. Box . Kigali, TIN NO..............., represented by their Managing Director,..................................RE of ID no. ............................., telephone no. ........................ (Hereinafter referred to as the Sub-Contractor) on the other part

The two parties have hereby agreed as follows;

Article 1:- Purpose of the agreement

The Main-Contractor shall engage and pay after carrying out all the works, the Sub-Contractor who shall accept and agree the Main-Contractors offer for labour only to carry out works on behalf of the Main-Contractor for the excavation of foundation pits and trenches, fabrication of timber formwork, reinforcement steel cutting bending and fixing, and casting of concrete in the construction of ............................. at ...................... as per the attached quotations and on the following terms and conditions in respect of the works.

The Sub-Contractor shall accept and agree engagement and payment by the Main-Contractor, an amount shown in the Bills of Quantities totalling to Rwf....................... only (excluding VAT) for providing labour only to carry out all the works to completion on behalf of the Main-Contractor for the excavation of foundation pits and trenches, fabrication of timber formwork, reinforcement steel cutting bending and fixing, and casting of concrete in the construction of ........................................ Kigali Rwanda as per the attached quotations and on the following terms and conditions in respect of the works.

Article 2:- Sub-Contract Amount

The amount agreed upon is Rwf. ................. only (excluding VAT) and is firm and definitive except in case of necessary modifications of the works to be carried out and approved by the Main-Contractor.

Article 3:- Scope of Works

The works shall be executed as per drawings attached to this contract. The works shall conform to specifications, drawings and attached quotations and to the general and specific building rules and regulations in Rwanda.

Article 4:- Payment Terms

All works shall be valued and invoices presented for payment every 15 (fifteen) days after assessment is made and certified by the project Manager of the Main-Contractor, and shall conform to the acceptable engineering, or any other technical descriptions depending on the trade of the Sub-Contractor and as applied to the general and specific Building Rules and Regulations in Rwanda.

Payment will only be released within 5 (five) working days from the date of submission of certified invoices.

All invoices must reflect an invoice number, the date, the employers name, the trade, the TIN NUMBER of the payment beneficiary, FULL ADDRESS OF THE SUB-CONTRACTOR, SIGNATURE AND STAMP.

Article 5:- Sub-Contractors Liability

The Sub-Contractor shall be fully responsible for the payment of his/her (Sub-Contractors) employees wages and other statutory obligation and shall protect the Main-Contractor against any such claims or legal action for non-payment of such remuneration. The Main-Contractor shall not be responsible or liable for any disputes that may arise between the Sub-Contractor and his/her workers. Proof of payment of Sub-Contractors workers must be submitted to the Main-Contractor as soon as the payment of their wages is done and failure to do so would be a material breach of this contract of which shall lead to its termination without prior notice by the Main-Contractor notwithstanding other legal remedies that may be taken by the main contractor plus damages.

The Sub-Contractor shall protect the Main-Contractor against all losses/wastage/theft of the materials and any other hazard that may result from wilful act or negligence of his employees. For example:

a) While executing his/her assignment, the Sub-Contractor shall ensure all utilities already in place are not damaged. Therefore, if the Sub-Contractors employees damage any of the utilities, then he/she shall be held fully responsible, at his/her own cost, for any replacement/repair required to restore the utilities to their original state.b) If the workers of the Sub-Contractor get involved in theft, damage or misuse of materials/equipments, the Sub-Contractor shall be held responsible.c) If the works executed is of poor quality because of workmanship, and the client/consultant rejects to approve the works and asks for the works to be corrected, then the Sub-Contractor shall have to correct the works at his own cost and shall also have to pay for the materials supplied by the Main-Contractor for the execution of the correction.

Article 8:- Construction Period

The Sub-Contractor shall execute and accomplish all the works described within the days agreed upon by both parties from the date of commencement. The work programme is as per the attached Annexure IV document (detailed program of works).

A Statement of Methodology for the works from the date of commencement of the work on site shall be submitted to the Main-Contractor, detailing how the Sub-Contractor intends to execute the Works and a resource plan showing the number of resources and personnel to be deployed.

The Sub-Contractor shall be expected to cooperate and share the available space and resources at site with other contractors, public authorities, utilities service providers, and the Main-Contractor between the dates given in the Schedule of Other Contractors.

Article 9:- Liquidated Damages

If the Sub-Contractor fails to complete the job as per the agreed completion period, Liquidated Damages shall be assessed at half of One thousandth (1/1000) of the value of the incomplete works for each day of delay. The maximum Liquidated Damages is Five Percent (5%) of the subcontract price. The Main-Contractor shall deduct any amount of the Liquidated Damages assessed from any payments due to the Sub-Contractor.

If the Sub-Contractor or his/her workers causes any unlawful industrial action, riot, illegal strike, or any other disturbances at the site or if the Sub-Contractor fails to pay his/her workers on time and such action causes any unlawful industrial action, riot, illegal strike, or any other disturbances at the site which in turn causes the works to delay, then the Sub-Contractor shall be liable to Liquidated damages to the full extent of the delay and the Main-Contractor shall deduct any amount of the Liquidated Damages assessed, as described above, from any payments due to the Sub-Contractor.

Article 10:- Termination

Either party may terminate this contract agreement without any notice if one or the other party causes a breach of the contract. Breach of contract shall include but not limited to;

The Sub-Contractor stops work for 10 days and the stoppage has not been authorised by the Main-Contractor; The Main-Contractor or the Sub-Contractor is made bankrupt or goes into liquidation other than for reconstruction or amalgamation; A payment for certified invoice is not paid by the Main-Contractor to the Sub-Contractor within 30 days from the date of submission of the invoice; The Main-Contractor gives notice that failure to correct a particular defect is fundamental breach of the agreement and the Sub-Contractor fails to correct within a reasonable period of six days; The Sub-Contractor has delayed the completion of a section of the works by more than 7 days from the Sub-Contractors program; If the Sub-Contractor, in the judgement of the Main-Contractor has engaged in corrupt or fraudulent practices in competing for or executing the contract; Negligence and misbehaviour of Sub-Contractor; If the progress and the quality of work is not as per the schedule and Sub-Contractor is not giving effort to complete the job as per the agreed schedule; Abandons the Works or otherwise plainly demonstrates the intention not to continue with the performance of his obligations under the Contract; Subcontracts the whole of the Works or assigns the whole sub-contract without the written consent of the Main-Contractor. If the Sub-Contractor or his/her workers cause any unlawful industrial action, riot, illegal strike, or any other disturbances at the site. Sub-Contractor fails to pay his/her workers on time and submit the proof of payment of their wages to the Main-Contractor.

The Main-Contractors decision to terminate the Sub-contract shall not prejudice any other rights of the Main-Contractor, under the Contract or otherwise.

The Sub-Contractor shall then be asked to handover, any required materials, all Main-Contractors documents, and any other design documents made by or for him/her in his/her possession to the Main-Contractor and leave the site.

The Sub-Contractor shall to the best of his/her ability comply immediately with any reasonable instructions included in the notice for: (i) the assignment of any sub-contract, and (ii) the protection of life and/or property, or the safety of the Works.

Article 11:- Retention and Defects Liability Period

The Main-Contractor shall retain 10% (ten Percent) of the total value of completed works, according to the terms stipulated in Article 4 of this contract, as retention for the defects liability of works carried out by the Sub-Contractor. Final retention shall be released in relation to the Main-Contractors defects liability which is 12(twelve) months from the date of Provisional Acceptance of the works. During the defects liability period the Sub-Contractor shall attend to the defects within 48 hours from the time of reporting the defects.

Article 12:- Tools and Machinery

The Sub-Contractor shall arrange for all the tools and machines needed for the execution of the project as per the works requirements and as detailed in his/her Methodology Statement [Article 8].

Article 13:- Safety

The Sub-Contractor shall provide his work force with basic safety equipment i.e. helmets, boots etc at his own cost.

Article 14:- Amendment

No variation in or modification of the terms of this Contract shall be made except by written amendment signed by all parties hereto.

Article 15:- Governing law

The sub contract agreement shall be governed and interpreted in accordance with the laws of the republic of Rwanda.

Article 16: Dispute resolution

Disputes arising out of the performance or interpretation of this contract shall be settled amicably.Where the parties fail to settle the dispute amicably, any party has the right to institute legal proceedings in competent courts of law of the republic of Rwanda.

Article 17:- Commencement

This sub-contract agreement shall enter into force on the date of signing by both parties.

Article 18:- Quality Control

18.1:- Identifying Defects

The Main-Contractor shall check the Sub-Contractors work and notify the Sub-Contractor of any defects that may be found. Such checking shall not affect the Sub-Contractors responsibilities. The Main-Contractor may instruct the Sub-Contractor to search for defects and to uncover and test any work that the Main-Contractor considers may have defects.

18.2:- Tests

If the Main-Contractor instructs the Sub-Contractor to carry out a test not specified in the Specification to check whether any work has a defect and the test shows that it does, the Sub-Contractor shall pay for the test and any samples. If there is no defect, the test shall be a Compensation Event.

18.3:- Correction of Defects

The Main-Contractor shall give notice to the Sub-Contractor of any defects before the end of the Defects Liability Period which begins at the provisional acceptance of the works. The Defects Liability Period shall be extended for as long as Defects remain to be corrected.

Every time a notice of a Defect is given, the Sub-Contractor shall correct the notified defect within the length of time specified by the Main-Contractors notice.

18.4:- Uncorrected Defects

If the Sub-Contractor has not corrected a defect within the time specified in the Main-Contractors notice, the Main-Contractor shall assess the cost of having the defect corrected, get someone else to correct the works and charge the Sub-Contractor the costs of correcting the works.

Article 19:- Annexure (Contract Documents)

Documents forming part of this contract are as follows where applicable;I. ANNEXURE A - Bills of Quantities;II. This agreement;III. DrawingsIV. Approved quotation (dated);V. Sub-contractors detailed program of works and method statement;

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