Oromia Insurance Company S.

C
And
Oromia Coffee Farmers Cooperative Union Ltd

Head Quarter Building Construction Project

Local bid for Construction of Fence

and Foundation Stone

July, 2016

Finfinne

Head Quarter Building Construction Project Proposal

Contents
Notice of Invitation for Bid.................................................................................. 2
Chapter 2 Instructions to Bidders..................................................................................... 3
C. Preparation of Bids..................................................................................... 4
D. Submission of Bids..................................................................................... 5
E. Bid Opening and Evaluation.......................................................................5
F. Award of Contract....................................................................................... 7
Bidding Data.......................................................................................................... 1
2. Bidding Data....................................................................................................... 1
Chapter 3.................................................................................................................. 2
Chapter 4 General Conditions of Contract..........................................................................2
1......................................................................................................................... 3
2. FORM OF AGREEMENT...................................................................................... 3

Bidding Documents
Notice of Invitation for Bid
Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

1. Oromia Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Ltd.
have budgeted the cost for Construction of fence, and Foundation Stone intends to
apply part of the proceeds to eligible payments for the construction works.
2. The site is located at Addis Ababa, usually known as Mexico Square, which is at
North Eastern boundary of Mexico Square; in front of Wabi Shebele Hotel. The area
is bounded by the roads North: from Sengatera to Mexico Square, West: from
Shebele Hotel left turn to Qera, Genet Hotel, crossing the railway, South: the railway
to Legahar and East: a Building usually known as Coffee Building and Micro and
Small Enterprises offices.
3. The works under this contract consists of the construction of Construction fence,
Foundation Stone. The period of construction is 15 calendar days, including
mobilization period.
4. Oromia Insurance Company now invites eligible bidders, which fulfill the following
requirements, to submit sealed bids for the construction of the projects mentioned in
item (2):a) The bidders shall have a certificate of registration from Ministry of Works and Urban
Development or regional bureau renewed for 2008 E.C. and other appropriate
documentary evidences demonstrating the bidders compliance which shall include:
(i) Its trading license renewed for 2008 E.C;
(ii) Its tax clearance certificate valid at least at bid submission date that
permits the bidder to participate in any public tender, and VAT registration
certificate.
5. Bidding will be conducted through the Local Competitive Bidding (LCB) procedure,
specified in the bidding documents, and is open to all eligible bidders.
Short listed eligible bidders may obtain further information and inspect the bidding
documents which include drawing, Bill of Quantity, Technical Specification at the
Oromia Insurance Company S.C, at the address given below, from 8:30 to 11:30 am and
1:30 to 4:30 pm from Monday to Friday and 8:30 to 11:30 am and Saturday from
8:30 am to 11:00 local time. A complete set of the bidding documents in English may be
purchased by interested bidders on submission of a written application and presentation of
the documents mentioned under item (3) above to the address below and upon payment of
a nonrefundable fee of ETB 100.00 effective as of July 4, 2016 to 9 July 2016. The
method of payment shall be in cash on 6th floor Finance & Investment Department.
Address:
Oromia Insurance Company S.c,
Bole Road OIB Building next to Getu Commercial Center
6 the floor, HR& Facility Management Department
Tel: +251 11 5572129

Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

6. Bidders shall submit one envelope, Technical Financial documents & Bid Security
sealed in an outer envelope.
7. Evaluation is to be carried out in two stages, technical application first and Bids of
qualified Bidders next.
8. Bids must be submitted to the address below before April 06, 2015 2:00 p.m. All bids
must be accompanied by a CPO of 2% of Total Bid amount with bank CPO. Late
bids will be rejected. Qualification information and Bid security of the bidders will be
opened in the presence of bidders representatives who chose to attend at Oromia
Insurance Company S.Cs Conference Room 7th floor, on the final date and time of
bid submission as stated above.
Oromia Insurance Company S.C, Africa Venue, OIB Building next Getu Commercial
Center, P. O. Box 10090, Addis Ababa, Ethiopia, Tel.: +251-11-5572129, Fax; +251-115572122
9. The Oromia Insurance Company S.C reserves the right to accept any or reject any or
all bids.

Instructions to Bidders
1. Clarification of
Bid Documents
1.1 A prospective bidder requiring any clarification of the bidding documents

may notify the Employer in writing or by cable (hereinafter, the term cable is
deemed to include telex and facsimile at the address to request any clarification
as indicated in the Bidding Data. The Employer will respond to any request
for clarification that he receives earlier than 2 days prior to the deadline for
submission of bids. Copies of the Employers response will be forwarded to
all purchasers of the bidding documents, including a description of the inquiry
but without identifying its source.
2. Amendment of 2.1
Bidding
Documents
2.2

At any time prior to the deadline for submission of bids, the Employer may
amend the bidding documents by issuing Addenda.

2.3

To give prospective bidders reasonable time in which to take an Addendum

into account in preparing their bids, the Employer may extend as necessary the
deadline for submission of bids.

Any Addendum thus issued shall be part of the bidding documents shall be
communicated in writing or by cable to all purchasers of the bidding
documents. Prospective bidders shall promptly acknowledge receipt of each
Addendum by cable to the Employer.

Preparation of Bids
3. Language of
Bid

3.1

The bid, and all correspondence and documents related to the bid exchanged
by the bidder and the Employer shall be written in the bid language stipulated
in the Bidding Data and Conditions of Particular Application. Supporting
documents and printed literature furnished by the bidder may be in other

Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

language.
4. Documents
Comprising
the Bid

4.1 The bid submitted by the bidder shall comprise the following: duly filled-in
Form of Bid, Bid Security, priced Bill of Quantities, Qualification
Information, and any information or other materials required be completing.

5. Bid Prices

5.1

Unless stated otherwise in the bidding documents, the Contract shall be for the
whole Works based on the unit rates and prices in the Bill of Quantities
submitted by the bidder.

5.2

The bidder shall fill in rates and prices for all items of the Works described in
the Bill of Quantities. Items against which no rate or price is entered by the
bidder will not be paid for by the Employer when executed and shall be
deemed to be covered by the rates for other items and prices in the Bill of
Quantities.

6.1

Bids shall remain valid for the period stipulated in the Bidding Data after the
deadline for bid submission.

6. Bid Validity

7. Bid Security

7.1

If required in the Bidding Data, the bidder shall furnish, as part of its bid, a
bid security in the amount stipulated in the Bidding Data.

7.2

Any bid not accompanied by an acceptable bid security shall be rejected by

the Employer as non-responsive.

7.3 The bid securities of unsuccessful bidders will be returned as promptly as

possible.
7.4

The bid security of the successful bidder will be returned when the bidder has
signed the Agreement and furnished the required performance security.

7.5

The bid security may be forfeited

(a)

if the bidder withdraws its bid, except as provided in bidding document

(b)

in the case of a successful bidder, if he fails within the specified time

limit to
(i)
sign the Agreement, or
(ii) Furnish the required performance security.
(iii) accept arithmetic correction made by the Employer

8. Format and
Signing of Bid

8.1 The bidder shall prepare one original for each of Qualification Information, Bid
Security and Financial Bid and clearly marked each of them as Original.
In the event of discrepancy between the copies and the original, the original
shall prevail.
8.2 The original and all copies of the bid shall be typed or written in indelible ink (in
the case of copies, photocopies are also acceptable) and shall be signed by a
person or persons duly authorized to sign on behalf of the bidder. All pages of
the bid and where entries or amendments have been made shall be initialed
by the person or persons signing the bid.
8.3 The bid shall contain no alterations, omissions, or additions, unless
corrections are initialed by the person or persons signing the bid.

Bid Document for Construction fence and Foundation Stone.

such

Page

Head Quarter Building Construction Project Proposal

Submission of Bids
9. Sealing and
Marking of
Bids

9.1 The bidder shall seal each copy of his Bid, in one envelope, the first marked:
Qualification Information and Bid security shall contain:

I.
II.
III.
IV.
V.
9.2

The Qualification Information,

The Bid Security
The Form of Bid and its Appendices and
The Priced Bill of Quantities
The two envelopes shall then be sealed in an outer envelope.
The inner and outer envelopes shall
(a) be addressed to the Employer at the address provided in the Bidding
Data;
(b) Provide a warning not to open before the time and date for bid opening,
as specified in the Bidding Data.

10. Deadline for

Submission of
Bids

10.1 Bids must be received by the Employer at the address specified no later than
the time and date stipulated in the Bidding Data.

11. Late Bids

11.1 Any bid received by the Employer after the deadline for submission of bids
will be returned unopened to the bidder.

10.2 The Employer may, in exceptional circumstances and at its discretion, extend
the deadline for submission of bids by issuing an in which case all rights and
obligations of the Employer and the bidders previously subject to the original
deadline will thereafter be subject to the deadline as extended.

Bid Opening and Evaluation

13. Bid
Opening

13.1 The Employer will open the Qualification Information and Bid Security
envelope, in the presence of bidders designated representatives who
choose to attend, at the time, date and location stipulated in the Bidding
Data by a committee of employer. The bidders representatives who are
present shall sign a register evidencing their attendance.
13.2Bidders 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.

13.3The Employer shall prepare minutes of the bid opening, including the
information disclosed during the bid opening.
14.
Clarification of
Bids and
Contacting the

14.1 To assist in the examination, evaluation, and comparison of bids, the

Employer may, at its discretion, ask any bidder for clarification of its bid,
including breakdowns of unit rates. The request for clarification and the
response shall be in writing or by cable, but no change in the price or
substance of the bid shall be sought, offered, or permitted except as

Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

Employer

required to confirm the correction of arithmetic errors discovered by the

Employer in the evaluation of the bids.
14.2 From the time of bid opening to the time of Contract award, if any bidder
wishes to contact the Employer on any matter related to the bid, it should
do so in writing.
14.3 Any effort by the bidder to influence the Employer in the Employers bid
evaluation, bid comparison, or Contract award decisions may result in the
rejection of the bidders bid.

15.
Examination of
Bids and
Determination
of
Responsiveness

15.1 Prior to the detailed evaluation of bids, the Employer will determine
whether each bid
(a) meets the eligibility criteria
Bidding Document

and Qualification criteria set in the

(b) has been properly signed;

(c) is accompanied by the required securities;
(d) is substantially responsive to the requirements of the bidding
documents as set out in the Bidding Documents; and
(e) Provides any clarification and/or substantiation that the Employer may
require to determine responsiveness.
15.2 A substantially responsive bid is one that conforms to all the terms,
conditions, and specifications of the bidding documents without material
deviation or reservation. A material deviation or reservation is one
(a) that affects in any substantial way the scope, quality, or performance of
the Works;
(b) that limits in any substantial way, inconsistent with the bidding
documents, the Employers rights or the bidders obligations under the
contract; or
(c) Whose rectification would affect unfairly the competitive position of
other bidders presenting substantially responsive bids.
15.3If a bid is not substantially responsive, it will be rejected by the Employer
and may not subsequently be made responsive by correction or withdrawal
of the nonconforming deviation or reservation.

16. Correction
of Errors

16.1 Bid determined to be substantially responsive will be checked by the

Employer for any arithmetic errors. Errors will be corrected by the
Employer as follows:
(a)

where there is a discrepancy between the amounts in figures and in

words, the amount in words will govern; and

(b)

where there is a discrepancy between the unit rate and the line item
total resulting from multiplying the unit rate by the quantity, the unit
rate as quoted will govern, unless in the opinion of the Employer
there is an obviously gross misplacement of the decimal point in the

Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

unit rate, in which case the line item total as quoted will govern and
the unit rate will be corrected.
16.2 The amount stated in the bid 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, its bid
will be rejected.

Award of Contract

17. Award

17.1 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

18.Employers
Right to Accept
Any Bid and to
Reject Any or All
Bids

18..1 The Employer reserves the right to accept or reject any bid, and to annul the
bidding process and reject all bids, at any time prior to award of Contract,
without thereby incurring any liability to the affected bidder or bidders or any
obligation to inform the affected bidder or bidders of the grounds for the
Employers action.

19. Notification
of Award

19.1 The employer shall notify the evaluation result to all the bidders within five
days of completion and approval of evaluation of the bids.
19.2 Prior to expiration of the period of bid validity prescribed by the Employer,
the Employer will notify the successful bidder in writing that its bid has
been accepted. This letter (hereinafter and in the Conditions of Contract
called the Letter of Acceptance) shall specify the sum that the Employer
will pay the Contractor in consideration of the execution and completion of
the Works and the remedying of any defects therein by the Contractor as
prescribed by the Contract (hereinafter and in the Conditions of Contract
called the Contract Price).
19.3The notification of award will constitute the formation of the Contract.
19.4Upon the successful bidders furnishing of the performance security the
Employer will promptly notify the name of the winning bidder to each
unsuccessful bidder and will discharge the bid security of the unsuccessful
bidders.

20. Signing of
Agreement

20.1 At the same time that the Employer notifies the successful bidder that its
bid has been accepted, the Employer will send the bidder the Agreement
in the form provided in the bidding documents, incorporating all
agreements between the parties.
20.2 Within 2(two) 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.
20.3 The Employer will promptly notify the other bidders that their bids have
been unsuccessful and their bid security will be returned as promptly as
possible.

21. Performance
Security

21.1 Within 2(two) days of receipt of the Letter of Acceptance from the
Employer, the successful bidder shall furnish to the Employer a
performance security in the form provided in the bidding documents. This

Bid Document for Construction fence and Foundation Stone.

Page

Head Quarter Building Construction Project Proposal

form must be used unless another form proposed by the Bidder is

approved by the Employer.
21.2If it is stipulated in the Bidding Data that the performance security is to be
provided by the successful bidder in the form of insurance guarantee bond.

Bid Document for Construction fence and Foundation Stone.

Page

1.Bidding

Data

Whenever there is a conflict, the provisions herein shall prevail over those in the Instructions
to Bidders.
Instruction to
Bidders Clause
Reference
1.1

2.Bidding Data

Name and address of the Employer: Oromia Insurance Company S.c, Bole Road
P.O.Box 100090, Tel. +251-11-5572129, Fax. +251 11 5572122
Addis Ababa, Ethiopia

1.2

Summary of the Works: Construction of Fence and Foundation Stone

1.3

Time of completion of the project is 15 (Fifteen) Calendar days including mobilization

1.4
1.5

The Source of Fund: Oromia Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Ltd
ddress to request any clarification:
Ato Alemayehu Kelbessa
Facility management Officer
OIB 6th floor
Tel. +251-11-5572129
Fax. +251 11 5572122
Addis Ababa
Ethiopi

1.6

Bid Language is: English

1.7

Currency of the bid shall be the Ethiopian Birr

1.8

Period of bid validity.

The period of Bid Validity shall be 40 calendar days from the latest date for submission of bids, extended,
if applicable, in accordance with the provisions of the Instructions to Bidders.

1.9

Bid shall include a Bid Security (CPO) or bank guarantee using the form for bid security included. The
Bid Security shall be 2% of total bid and it should be valid for 30 days from the latest deadline for the
submission of bids. The Bid Security must be enclosed in the envelope containing the Qualification
information and Bid Security.

1.10

Alternative time of completion: Not Applicable

1.11

Number of copies of bid to be completed and returned.

ONE ORIGINAL Plus ONE COPY

Bid Document for Construction fence and Foundation Stone.

1.12

Employers address for the purpose of bid submission is: Oromia Insurance Company S.C.
Bole Road, P.O.Box 10090, OIB Building 6th floor,
Tel. +251-11-5572129, Fax. +251 11 5572122, Addis Ababa, Ethiopia

1.13

Construction of Fence and Foundation Stone

1.15

Deadline for submission of bid is: Date: July 9, 2016 , Time: 10:00 a.m. (morning)

1.16

Venue, time, and date of bid opening are: Venue; Oromia Insurance Company S.C, Bole Road
P.O.Box 10090, OIB Building 7th floor , Tel. +251-11-5572129, Fax. +251 11 5572122
Addis Ababa, Ethiopia
Date: July 9, 2016, Time: 10:30 a.m. (morning)

General Conditions of Contract

The Conditions of Contract, Part I: General Conditions shall be those forming Part I
of the Conditions of Contract for Works of Construction, These Conditions are
subject to the variations and additions set out in Part II hereof entitled Conditions of
Particular Application.

1.the Contract Agreement

2.the Letter of Acceptance and its annexes;
3.Addendum , the Bid and the Appendix to Bid;
4.the Conditions of Contract, Part II;
5.the Conditions of Contract, Part I;
6.Special Provisions to Technical Specifications;
7.the Drawings;
8.the priced Bills of Quantities
9. Other documents as listed in the Appendix to Bid.

The Contractor shall in accordance with the Workman's Compensation Act of the Laws of the Country and any other
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 Subcontractor.
The Contractor shall keep proper wages books, in the language stipulated in the Appendix to Bid, showing the time
worked and wages paid to all employees in and about the 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 labor. He shall be bound, whenever required, to produce such wages books and other records for the
inspection of any persons authorized by the Engineer.
The Contractor shall maintain such records and make such reports concerning safety, health, and welfare of persons and
damage to property as the Engineer may from time to time prescribe.
The Contractor shall report to the Engineer details of any accident as soon as possible after its occurrence. In the case of
Bid Document for Construction fence and Foundation Stone.

any fatality or serious accident, the Contractor shall, in addition, notify the Engineer immediately by the quickest available
means. The Contractor shall also notify the relevant authority whenever such report is required by the law of the country.

3.FORM OF AGREEMENT

This Agreement is made and entered into as effective on (day, month, and year)
between Oromia Insurance Company S.C of mailing address:
Oromia Insurance Company S.C
P.O.Box 10090
Tel. 011 5572129
Addis Ababa
Ethiopia
(Hereinafter called THE EMPLOYER) of the one part and (Name of
Contractor...) of (. Mailing Address of Contractor...) (Hereinafter called THE
CONTRACTOR) of the other part.
Whereas the Employer is desirous that certain works should be executed, viz.
(.Brief Description of Works) and has, by Letter of Acceptance dated (............
Date of Letter of Acceptance.) accepted a bid by the Contractor for the Agreement
witnesses as follows:
4.GENERAL PROVISION

In this Agreement words and expressions shall have the same meanings as are
respectively assigned to them in the General Conditions of Contract, Conditions of
Particular Application hereinafter referred to.
The aforesaid documents shall be taken as complementary and mutually explanatory
of one another, but in the case of ambiguities or discrepancies shall take precedence
in the order set out herein below.
In consideration of the payment to be made by the Employer to the Contractor as
hereinafter mentioned herein below, the Contractor hereby covenants with the
Employer to execute, complete and maintain the works in conformity in all respects
with the provision of the Contract.
5.The Contract Documents
The following documents shall be deemed to form, be read and construed as part of
this Contract Agreement namely, the
a) The Contract Agreement
b) Letter of Acceptance and its annexes
c) Addendum (if any), the Bid and Appendix to Bid
d) Conditions of Particular Application
e) General Conditions of Contract
f) Technical Specification of Particular Application
g) The Drawings
h) Priced Bill of Quantities
Bid Document for Construction fence and Foundation Stone.

Agreement Consideration
The Employer hereby covenants to pay the Contractor in consideration of the
execution and completion of the Works and the remedying of defects therein
(.Contract Price in figures and words) such other sum as may become payable
under the provisions of the Contract.
In witness whereof, the parties hereto have caused their respective common seals to
be here unto affixed and have hereunto set their respective hands and seals the day
and year first above written.
For and on behalf of Oromia Insurance Company S.C (Oromia Insurance Company
S.C
[Authorized Representative]
In the Presence of

In the Presence of

Name

__________________

Name

__________________

In the Capacity of

__________________

In the Capacity of __________________

Signature

__________________

Signature

__________________

For and on behalf of (Name of the

Contractor)________________________________________________
[Authorized Representative]
In the Presence of

In the Presence of
Name

__________________

Name

In the Capacity of

__________________

In the Capacity of __________________

Signature

Standard Form of Agreement

Bid Document for Construction fence and Foundation Stone.

__________________

__________________

This agreement made the DECEMBER 04 2012 between Oromia Coffee

Farmers Cooperative Union L.L( hereinafter called The Employer) and
LIBU KIFLE Building contractor (hereinafter called The Contractor) of the
other part.

Whereas the employer is desirous that the contractor execute Of Additional

Three Class Room for Genji Ilbu School at Jimma zone
Gomma Woreda (hereinafter called The Works) and employer has
accepted the bid by the contractor for the execution and completion of such works
and the remedying of any defects therein the total price of 1,147,267.05 and 15%
VAT 172,090.06 Total project cost with VAT 1,319,357.11 the terms and in the
manner prescribed by the contract documents.

Now this Agreement witnessed as follows:

1. In this agreement, words and expressions shall have the same meanings as
are respectively assigned to them in the conditions of contract thereinafter
referred to, and they shall be deemed to form and be read and construed as
part of this agreement.
2. In consideration of the payment to be made by the employer to the
contractors as hereinafter mentioned, the contractor hereby covenants with
the employer to execute and complete the works and remedy and defects
therein in conformity in all respects with the provisions of the contract.
3. The employer hereby covenants to pay the contractor in consideration of
the execution and completion of the works and the remedying of defects
wherein the contract price or such other sum as may become payable
under the provisions of the contact at the times and in the manner
prescribed by the contract.
4. After period of construction date price fluctuation is no allowed.
5. If number of actual of quantities is more than 10% contractual agreement
quantities it needs new negotiation with employer.

Bid Document for Construction fence and Foundation Stone.

Applicable Law: The contract shall be interpreted in accordance with

Ethiopian Law.
Notices: Any notice given by one party to the other party under the
contract, shall be sent in writing and shall be effective when delivered,
or on the effective date stated in the notice, whichever is later.

IN WITNESS WHEREOF, the parties hereto have caused this contract

to be signed in their respective names as of the day and year first written
above.

_____________________________
___________________________
For the Employer
Contractor

For the

_____________________________
___________________________
Authorized Signature
Signature

Authorized

WITNESS
Name
Signature
1. _____________________________
_____________________
2. _____________________________
_____________________
3. _____________________________
_____________________

Bid Document for Construction fence and Foundation Stone.

APPENDIX OF THE CONSTRUCTION AGREEMENT CLAUSED

(As per January 2008)

Amount of performance bond

10 percent of the contract amount

Minimum amount of third party

23-2 occurrences with.

The number of occurrences unit

The number of occurrences unit,

Time of Commencement

5 days from Signature

Time of completion

15 days

Amount of liquidated damages

47-4

Limit of liquidated damages

price

47-4 1/1000 percent of the contract

Defect liability period

49 365

Power of the Engineer to make variation

52.1 As per MoWUD guideline

1/1000

Percent of adjustment of provisional sums

Percentage of retention money

60(4) 5% percent of the certificate amount

Limit of Retention Money

60(4) 2.5% percent of the certificate

amount

Foreign Currency (if any)

Advance Payment

None
11

30% insurance bond

N.B
Maximum amount of performance bond that a bidder can afford 10% of this offer.

Bid Document for Construction fence and Foundation Stone.

PERFORMANCE GUARANTEE
(Unconditional)
Oromia Insurance Company S.C
P.O.Box 10090
Tel. 011 5572129
Addis Ababa, Ethiopia
WHEREAS [name and address of contractor] (herein after called the contractor) has
undertaken, in pursuance of contract No. ____ dated ________to construct the Construction
of Fence and Foundation Stone (Hereinafter called the Contract);

AND WHEREAS it has been stipulated by you in the said Contract that the contractor
shall furnish you with a (Bank/Insurance) Guarantee by a recognized
(Bank/Insurance) for the sum specified therein as security for compliance with his
obligation in accordance with Contract;
AND WEHERAS we have agreed to give contractor such a (Bank/Insurance)
Guarantee;
NOW THERFORE we hereby affirm that we are the Guarantor and responsible to
you, on behalf of the contractor, up to a total of Birr -------------------------only], such
sum being payable in the types and proportions of currencies in which the Contract
Price is payable, and we undertake to pay you, upon your first written demand and
without cavil or argument, any sum or sums within the limits of [amount of
guarantee] as aforesaid without your needing to prove or to show grounds or reasons
for your demand for the sum specified therein.
We hereby waive the necessity of your demanding the said debt from the Contractor
before presenting us with the demand.
We further agree that no change or addition to other modification of the terms of the
contract or the works to be performed hereunder or any of the contract documents
which may be made between you and the Contractor shall in any way release us from
any liability under this guarantee and we hereby waive notice of any such change,
addition or modification.
This guarantee shall be valid until a date 60 days from the date of issue of the takingover Certificate.
SIGNATURE AND SEAL OF THE GUARANTOR
Name of (Bank/Insurance): ______________________________
Address:
Date:

______________________________
____________________________

8 | Bid Doc-Const ruction of Fence and Foundation

Stone