administracÃo acional de stradas (ane) - eurocid · republic of mozambique direcÇÃo de projectos...

REPUBLIC OF MOZAMBIQUE DIRECÇÃO DE PROJECTOS EUROPEAN UNION

THE REPUBLIC OF MOZAMBIQUE

ADMINISTRACÃO NACIONAL DE ESTRADAS (ANE)

INTEGRATED DEVELOPMENT OF MILANGE – MOCUBA CORRIDOR – PHASE II

TENDER DOSSIER FOR WORKS

EuropeAid/134356/D/WKS/MZ

(ANE Contract No …………)

VOLUME 2

The Head of Delegation , European Union - Republic of Mozambique Avenida Julius Nyerere nº 2820 P. O. Box 1306 MAPUTO, MOZAMBIQUE.

The Government of the Republic of Mozambique The National Authorising Officer European Development Fund Avenida Julius Nyerere nº 1 A MAPUTO, MOZAMBIQUE.

JUNE 2013

Integrated Development of Milange – Mocuba Corridor, Zambezi Province – Phase II Tender Document: Volume 2

Based on EU January 2013 Page 1

TABLE OF CONTENTS OF TENDER DOSSIER

Volume 3: Section 1: Standard Technical Specifications Section 2: Special Technical Specifications Section 3: Environmental and Social Management Plan

Volume 4: Section 1. Introduction Section 2: Bill of Quantities Section 3: Price Schedules Section 4: Daily Work Schedules Section 5: Detailed breakdown of Prices

Volume 5: Drawings (Design Details)

Volume 6: Soils and Materials Report (provided for information, only)

Volume 1 Section 1: Instructions to Tenderers Section 2: Tender Form & Appendix Section 3: Tender Guarantees Section 4: Questionnaire Section 5: Administrative Compliance and Evaluation Grid

Volume 2: Section 1: Contract Form Section 2: General Conditions Section 3: Special Conditions Section 4: Specimen Performance Guarantee Section 5: Specimen Pre-financing Guarantee Section 6: Specimen Retention Guarantee Section 7: Tax and Customs Arrangements



SECTION 1: CONTRACT FORM



SECTION 1: CONTRACT FORM

WORKS CONTRACT FOR EUROPEAN UNION EXTERNAL ACTIONS

FINANCED FROM EDF

The National Authorising Officer of the European Development Fund in Mozambique Ministry of Foreign Affairs and Cooperation Avenida Julius Nyerere nº 1 A MAPUTO MOZAMBIQUE ("The Contracting Authority"), of the one part, and <Full official Name of Contractor> [Legal status/title]1 [Official registration number] 2 [Full official address] [VAT number]3, (“the Contractor”)

of the other part, have agreed as follows:

PROJECT: INTEGRATED DEVELOPMENT OF MILANGE – MOCUBA CORRIDOR – PHASE II

CONTRACT TITLE: WORKS CONTRACT FOR INTEGRATED DEVELOPMENT OF MILANGE –

MOCUBA CORRIDOR – PHASE II, LOT 1 / LOT 2 (delete LOT as required)

Identification number: ……………………. Whereas the Contracting Authority would like the Contractor to carry out the following work:

Construction of

INTEGRATED DEVELOPMENT OF MILANGE – MOCUBA CORRIDOR – PHASE II, LOT 1 / LOT 2

(delete LOT as required)

and has accepted a tender by the Contractor for the execution and completion of such works and the remedying of any defects therein.

It is hereby agreed as follows:

1. In this Contract words and expressions shall have the meanings assi gned to them in the contractual conditions set out below.

2. The following documents shall be deemed to form and be read and construed as part of this c ontract, in the following order of precedence:

1 Where the contracting party is an individual. 2 Where applicable. 3 Except where the contracting party is not VAT registered.



(a) the Contract, (b) the Special Conditions, (c) the General Conditions, (d) the Technical Specifications, (e) the Design Documentation (drawings) (f) the Bill of Quantities (after arithmetical corrections)/breakdown, (g) the tender with appendix (h) any other documents forming part of the contract

The various documents making up the contract shall be deemed to be mutually explanatory; in cases of ambiguity or divergence, they shall prevail in the order in which they appear above. Addenda shall have the order of precedence of the document they are amending.

3. In consideration of the payments to be made by the Contracting Authority to the Contractor as

hereinafter mentioned, the Contractor undertakes to execute and complete the works and rem edy defects therein in full compliance with the provisions of the contract.

4. The Contracting Authority hereby agrees to pay the Contractor in consideration of the execution and

completion of the works and remedying of defects therein the amount of: 93.63 % of the Total Contract Price (excluding VAT/other taxes) from EDF:

………………………………………………………………………………………………………………………Euro 6.37 % of the Total Contract Price (compensation for VAT/other taxes) from Government of Mozambique:

……………………………………………………………………………… ……………………..…………….. Euro Total Contract price (including VAT/other taxes):

………………………………………………………….……………………………….……… ………………….Euro

Total Contract price in words:

………………………………….………………………………………………………………………….….……Euro or such other sum as may become payable under the provisions of the contract at the times and in the manner prescribed by the contract. VAT shall be paid in compliance with the binding regulations, national law and international agreements concerning the execution of the project . VAT and other taxes shall not be paid on the funds originating from EU funds. In witness whereof the parties hereto have signed the Contract. This Contract shall take effect on the date on which it is signed by the last party, namely the Contractor.



Done in English in three originals, one original for the Contracting Authority, one original for the European Commission, and one original for the Contractor.

For the Contractor For the Contracting Authority

Name: Name:

Title: Title:

Signature Signature:

Date: Date:

Endorsed for financing by the European Union

Name:

Title:

Signature:

Date:



SECTION 2: GENERAL CONDITIONS FOR WORKS CONTRACTS FINANCED BY THE

EUROPEAN DEVELOPMENT FUND (EDF) OR THE EUROPEAN UNION



SECTION 3: SPECIAL CONDITIONS OF CONTRACT



VOLUME 2

SECTION 3

SPECIAL CONDITIONS

CONTENTS Article 2: Language of the contract ...................................................................................... 10 Article 4: Communications ................................................................................................... 10 Article 5: Supervisor and Supervisor's representative ........................................................ 11 Article 7: Sub-Contracting .................................................................................................... 11 Article 8: Documents to be provided .................................................................................... 11 Article 9: Access to the site .................................................................................................. 11 Article 12: General Obligations .............................................................................................. 12 Article 15: Performance guarantee ......................................................................................... 12 Article 16: Insurance ............................................................................................................... 13 Article 17: Programme of implementation of tasks ............................................................... 13 Article 18: Detailed breakdown of prices ............................................................................... 13 Article 19: Contractor’s drawings and execution studies ..................................................... 13 Article 24: Interference with traffic ......................................................................................... 14 Article 29 Temporary works .................................................................................................. 14 Article 30: Soil Studies............................................................................................................ 14 Article 34: Commencement orders ......................................................................................... 15 Article 34: Period of implementation of tasks ........................................................................ 15 Article 35: Extension of Period of implementation of tasks .................................................. 16 Article 36: Delays in implementation of tasks. ...................................................................... 16 Article 39: Work register ......................................................................................................... 17 Article 40: Origin and Quality of works and materials ........................................................... 17 Article 41: Inspection and testing ........................................................................................... 18 Article 43: Ownership of plant and materials ......................................................................... 18 Article 44: General principles ................................................................................................. 18 Article 46: Pre financing ......................................................................................................... 18 Article 47: Retention monies .................................................................................................. 19 Article 48: Price revision ......................................................................................................... 19 Article 49: Measurement ......................................................................................................... 21 Article 50: Interim payments ................................................................................................... 21 Article 51: Final statement of Account ................................................................................... 22 Article 59: Partial acceptance ................................................................................................. 22 Article 61: Defects liability ...................................................................................................... 22 Article 68: Dispute settlement ................................................................................................ 22



VOLUME 2

SECTION 3 SPECIAL CONDITIONS

CONTENTS

These conditions amplify and supplement the General Conditions governing the Contract. Unless the Special Conditions provide otherwise, the General Conditions remain fully applicable. The numbering of the Articles of the Special Conditions is not consecutive but follows the numbering of the General Conditions. Other Special Conditions should be indicated afterwards. Article 2: Language of the contract 1. The language used shall be English. Article 4: Communications 4.1 The addresses for notices and written communications between the Contracting Authority,

Supervisor and Contractor are as follows:

For the Contracting Authority: The National Authorising Officer of the European Development Fund in Mozambique

Ministry of Foreign Affairs and Cooperation Avenida Julius Nyerere nº 1 A MAPUTO

MOZAMBIQUE Fax +258 21 49 27 01 email [email protected]

For the Supervisor: Administração Nacional de Estradas – Gabinete do Director General

Avenida de Moçambique, No 1225 Caixa Postal 403 MAPUTO

MOZAMBIQUE Fax: +258 21 475862 / +258 21 275867

For the Contractor: __________________________ __________________________ _____________________ _____ __________________________ The Contractor shall provide and maintain suitable office accommodation for himself or his

representative on the Site, which shall be open at all reasonable hours to receive instructions, notices, or other communications.

Correspondence under the Contract delivered by hand to the Contractor’s office or to a duly appointed representative of the Contractor shall be acknowledged by signature of a nominated



member of the Contractor’s staff in accordance with the provisions of Article 4.3 of the General Conditions and be deemed to be valid under the Contract.

Article 5: Supervisor and Supervisor's representative 5.2 The Contracting Authority will engage a Supervisor’s Representative which will consist of a team o f

independent suitably qualified engineers and technicians. Facilities to be provided through this works contract for the use of the Supervisor’s Representative are detailed in the Special Specifications hereunder.

5.3 The Supervisor’s Representative shal l carry out the necessary duties for the supervision and

checking of the works and the testing and examination of the materials used and the quality of construction. The Supervisor’s Representative shall have no authority to relieve the Contractor of any of his obligations under the Contract. He shall have authority to issue Administrative Orders about the nature or amount of any works within the scope of the day -to-day management of the Works. He shall have no authority to agree any claim from the Contr actor.

5.4 Instructions given by the Supervisor shall be in writing, provided that if, for any reason, the

Supervisor considers it necessary to give any such instructions orally the Contractor shall comply with such instruction. Confirmation in writing of such oral instruction given by the Supervisor, whether before or after the carrying out of the instruction, shall be deemed an instruction within the meaning of this article. The provisions of this paragraph shall equally apply to instructions given by the Supervisor’s representative and any assistants of the Supervisor or the Supervisor’s representative.

Article 7: Sub-Contracting 7.3 In the selection of subcontractors, the Contractor will give preference to natural persons, companies

or firms of ACP States capable of implementing the tasks required on similar terms. Article 8: Documents to be provided 8.1. Within 30 days of the establishment of the performance guarantee provided for in Article 15, the

Supervisor shall provide to the Contractor, f ree of charge, the following documents:

§ one electronic set of the original project drawings (those included in Volume 5) in AutoCAD format;

§ one copy of the Technical Specifications and others contract documents; § one copy of the project cross -section drawings in A3 size on paper; § one copy of the listing of computation of the geometrical design of the project (horizontal and

vertical alignment, cross -section, earthworks and pavement, mass haul diagram);

Those documents relate to the original detailed design , as prepared by the Consultant in 2008 and reviewed in 2012. However, such documents will be updated following comments received during tender stage and last minute developments of the site conditions. The Contractor shall be responsible for preparing hi s own construction drawings as per Article 19 of the General and Special Conditions of the present Contract.

Article 9: Access to the site 9.1 The Contractor is reminded that there is a Head of Delegation of the European Commission in the

state of the Contracting Authority. The Contractor is obliged to give the Head of Delegation free access to its sites, factories, workshops, etc., and generally assist the Head of Delegation, like the project Supervisor, in the performance of his duties. The same provis ions also apply to the appointed representatives of the Head of Delegation.



All correspondence between the Contractor and the Contracting Authority or project Supervisor must be copied, for information, to the Head of Delegation of the European Commissi on at the following official address

European Union Delegation to the Republic of Mozambique

Av. Julius Nyerere, N° 2820 C.P. 1306 Maputo, Mozambique Article 12: General Obligations 12.11 For the purpose of the contract and to monitor adherence of the contractor to the general and

specific Obligations of the Contractor, the following 3 Milestones are defined:

Milestone 1 will require the following achievements within two Months of the date of the Administrative Order to Commence issued under sub-Article 33.1: 1. Performance Guarantee provided and approved; 2. Progress Reports submitted and approved; 3. Traffic Management Plan submitted and appro ved in accordance with Contract; 4. Programme submit ted in accordance with Contract; 5. Breakdown of Bill of Quantities provided in accordance with Contract; 6. Details of all insurance required and evidence of payment of premiums provi ded in

accordance with Contract; 7. Quality Assurance Management System submitted and approved by the Supervisor; 8. Supervisor’s Vehicles and housi ng supplied in accordance with Contract; 9. Project Identification Sign Boards approved and erected i n accordance with specification; 10. Setting out data of existing benchmarks provided to the Supervisor in accordance with the

specification.

Milestone 2 will require the following achievements within 4 Months of the date of the Administrative Order to Commence issued under sub -Article 33.1:

1. All Contractor equipment mobilised to site in accordance with approved programme 2. All Progress Reports submitted and approved 3. Supervisor’s and Contractor’s Main Offices completely installed and fully working. 4. Contractor’s Laboratory completely installed and fully functioning and equipped. 5. Contractor’s Concrete Batching Plant installed and fully commissioned and approved by the

Supervisor. 6. Contractor’s Site Survey completed, approved and agreed with Supervisor. 7. Works commenced on site in accordance with accepted programme. 8. Contractors crushing plant/s installed and commissioning commenced. Milestone 3 will require that the Contr actor maintains to the minimum its initial detailed cash flow estimate as submitted under sub-Article 18.2. Achievement of this Milestone 3 will be measured quarterly.

Article 15: Performance guarantee 15.1 The amount of the performance guarantee shal l be 10% of the amount of the Contract and any

addenda thereto.



Article 16: Insurance 16.4 The amount of insurance covering liability with regard to risks and civil liability insurance will be for a

minimum amount of Euro 1,000 ,000 per event with the number of occurrences unlimited. Article 17: Programme of implementation of tasks 17.1 Notwithstanding the work programme given as part of the tender, the Contractor shall within 30 days

after the commencement date provide the project S upervisor with a programme of implementation of tasks broken down by activity and by month and including the following documents in addition to the provisions in the GC:

§ The sequence, by month and by nature, in which the Contractor proposes to carry out the

works, in particular showing the critical path and forecasts of manpower and deliveries of working drawings, equipment, materials, water, etc.

§ A general description of the methods which the Contractor proposes to adopt for carrying out the works.

§ A procurement schedule for all materials brought to site § The rate of progress and resources planned for each operation on the critical path of the

programme. § The programme is to be supplemented by weekly programmes and progress returns and

plant and labour returns.

Article 18: Detailed breakdown of prices 18.1 Supervisor’s request is deemed to be issued at receipt of Contract award. The Contractor’s detailed

breakdown of its rate and price shall indicate the synthesis of the rates and prices including materials, labour, equipment, supervision, overheads and profit .

18.2 Within 30 days of notification of the award of contract, the Contractor shall provide to the Supervisor

a detailed cash flow estimate, in quarterly periods, of all payments which may be due to the Contractor under the contract. The Contractor shall subsequently supply revised cash flow estimates at quarterly intervals. The communication shall not impose any liability whatsoever on the Contracting Authority or the Supervisor. The initial detailed cash fl ow estimate submitted at contract inception will be used to measure adherence to requirements defined under Milestone 3, as defined in Article 12.

Article 19: Contractor’s drawings and execution studies 19.1 As work progresses, the Contractor shall dr aw up and submit to the Supervisor for his approva l the

documents described below:

• For reinforced concrete structures, the Contractor shall undertake required soils investigation (if any) before starting work on the foundations. The results of these tests and the calculations concerning the foundations shall be submitted to the Supervisor in triplicate more than 30 days prior to the beginning of the construction of the structures to which they relate.

• The detailed drawings and any other documents or materi als test results specified in the Contract or test results that are necessary for the successful performance of the Contract, shall be prepared by the Contractor at his own expense. The detailed drawings for construction and reinforcement, the correspondi ng structural calculations and any other document, test result or materials to be supplied by the Contractor shall be submitted in triplicate to the Supervisor for approval more than 30 days before the construction to which they relate will commence.

• Manufacturers’ specifications and certificates of all materials and equipment to be used on the Works shall be submitted to the Supervisor for his approval prior to use.



The above submissions shall be returned to the Contractor within 15 days of receipt, endors ed as approved or together with the Supervisor’s comments. The Contractor shall correct the submission and resubmit to the Supervisor for his approval. The Supervisor’s approval shall not relieve the Contractor from his obligations.

The Contractor shall prepare construction and as-built drawings in A3 format of the following items:

• Plans and profiles of the project road, at the same scales as the drawings supplied under article 8;

• Foot bridges, retaining walls and box culvert structures, various scales;

• Plans of junctions, scale 1:500.

• Any other items that have been modified or have been added to as compared with the drawings forming part of the tender documents;

• Any other drawing which may be required, in the opinion of the Supervisor, to achieve the Works according to international standards.

Drafts of the as-built drawings and maintenance manuals shall be submitted to the Supervisor for approval in two copies not later than 30 days prior to the provisional acceptance of the Works.

19.7 All documents to be provided by the Contractor must be in the language of the Contract Article 24: Interference with traffic 24.1 The Contractor shall plan his construction works to ensure as little disruption to the public traffic as

possible. Minimum requirements to accommodation of traffic are specified in Section 1500 of the special Technical Specifications included in these tender dossiers in Volume 3.

24.2 The Contractor shall ensure that all public traffic on existing roads or tracks is not interrupted for an y

significant period. Where necessary, by -passes or diversions shall be erected or provided by the Contractor before existing bridges or culverts or roads are demolished. The costs for the ensuring that public traffic is not interrupted shall be considere d included in the Contractor’s tender price. The Contractor shall take all possible precautions to ensure safe travel on bypass or diversion roads, for example by limiting the length of diversions, watering the surface, frequent grading etc. Any portions of existing road placed at the disposal of the Contractor in accordance with article 9 shall immediately be improved by the Contractor to a reasonably motorable condition and so maintained, to the satisfaction of the Supervisor. The accommodation of traffi c is further detailed in the Drawings and clause 1500 of the General Specifications, as supplemented by the Special Specifications for this contract. The costs of diversion roads and of the management of traffic will be paid as provided through relevant pay items in the Bill of Quantities.

Article 29 Temporary works 29.2 The design of temporary works will be the responsibility of the Contractor subject to approval by the

Supervisor. Article 30: Soil Studies 30.1 The “Soils and Materials Report” and t he Cross Sections provided to Tenderers are not contract

documents. The Soils and Materials Report presents the results of soils, pavement and construction materials investigations carried out as part of the original detailed design, as prepared by the Consultant in 2008 and reviewed in detail in 2012. They are issued along with the Tender Dossier in order to provide Tenderers with technical data about the project, but it does not engage the



responsibility of the Contracting Authority . The correctness or otherwise of its contents should be verified by the Tenderer in accordance with article 30 of these Special Conditions.

The information provided are strictly factual and any interpretation or conclusion made on basis of the information provided are on the bidders own account. The Contractor shall be responsible under the Contract for having satisfied himself that the natur al materials identified in the Soils and Materials Report are available where so indicated. Any differences observed between the data pre sented in the report and the test results and investigation data obtained during the construction period will not entitle the Contractor to additional payment.

The contractor is expected to supplement provided information by his own investigations which he considers necessary for preparing a realistic tender for the construction works. The Contractor shall in due course prior to submission of bid inspect and examine the site and its surroundings. The Contractor is deemed to have familiarised himself with the data provided and other available information and to have satisfied himself as to all relevant matters, including but not limited to:

• The form and nature of the site, including sub -surface conditions; • The hydrological and climate conditions; and • The extent of the nature of the work.

The Contractor shall be deemed responsible for having located sufficient quantities of materials on

or near the site complying in full and without compromise with the technical specifications and suitable for incorporation in the works. The Contracting Authority shall not be responsible for any assessments made nor for any conclusion that the Contractor may draw from the information provided including any estimation of quantities stated in the Soils and Materials report.

The Contractor shall also be deemed to have allowed in his tender for everything necessary for the

excavation, transportation, levelling, compacting, preparing, depositing, protecting, and testing of the materials under weather conditions prevailing on or in the vicinity of the site.

The Contractor shall, at his own cost, provide the personnel required and equipment necessary to carry out any soil survey and testing which the Supervisor might consider necessary to successfully complete the Works.

The Contractor is also deemed to have allowed in his tender for the costs of all quarry or borrow pit restoration measures. These will include, but are not necessarily limited to, remodelling the quarry area to avoid the creation of any dangerous area or lakes (or if this is not possible, of carrying out the necessary protection works), the spreading of topsoil and planting of robust vegetation, or any other action deemed necessary for the reduction of the environmental impact of material extraction or as shown on the drawings and/or detailed in the technical specifications.

Article 34: Commencement orders 33.3 Award and commencement order for a conditional part of the works will be given no later than 12

months after the start date of the period of implement ation of tasks. Article 34: Period of implementation of tasks 34.1 The contractual period of implementation of tasks shall be twenty four (24) months including

mobilisation period from the date specified by the Contracting Authority in the notification of award of contract.

Public holidays and “Ad -hoc” public holidays as declared by the Council of Ministers will not be

considered as reasons for extensions of time as per Article 35. The following days are notified public holidays in Mozambique:



1 January 3 February 7 April 1 May 25 June 7 September 25 September 4 October 24 December (half day) 25 December 31 December (half day) Good Friday (half day) Idd (half day)

If a notified public holiday occurs on a Sunday then the holiday shall be taken forward to the following Monday. Good Friday and Idd are religious holidays and it is customary to allow Christians or Muslims respectively a half a day off (after 12:00 hours) to perform their religious duties. The Contractor shall program his works to take accou nt of these public holidays.

34.2 The conditional parts of the works, if awarded, shall be executed within the overall period of

implementation of tasks of twenty four (24) months. Article 35: Extension of Period of implementation of tasks 35.1(a) Extensions to the period of implementation of tasks arising from exceptional weather conditions

shall be determined in accordance with the General Conditions for Works Contracts financed by the EDF and with clause 1215 of the SATCC “Standard Specifications f or Road and Bridge Works” of September 1998 (updated in July 2001). Adjustments shall be made according to sub -clause 1215 (a) Rainfall formula. No financial compensation whatsoever shall be payable to the Contractor in respect of such extensions, save the payment of any time-based items for the Supervisor’s Representative’s facilities.

35.3 All Extensions to the period of implementation of tasks will be related to the Article 17, programme of

works. Delays in providing the contract insurances (as per Article 16), the programme of implementation of tasks (as per Article 17) and the cashflow estimates (as per Article 18) will be considered delays caused by the Contractor for the purpose of calculating extensions to the period of implementation of tasks and involved costs.

Article 36: Delays in implementation of tasks. 36.1 The rate of liquidated damages for delays in the completion of works shall be 0.05 % of the contract

price for every day or part thereof which elapses between the end of the period of implementation of tasks and the actual date of completion, up to a maximum amount of 10% of the contract price.

36.3 Add “Notice to Correct: If for any reason, which does not entitle the Contractor to an extension of

time, the rate of progress of the Works or any Section is at any time, in the opinion of the Supervisor, too slow to comply with the Time for Completion, the Supervisor shall so notify the Contractor who shall thereupon take such steps as are necessary, subject to the consent of the Superv isor, to expedite progress so as to comply with the Time for Completion. The Contractor shall not be entitled to any additional payment for taking such steps. If, as a result of any notice given by the Supervisor under this Clause, the Contractor considers that it is necessary to do any work at night or on locally recognized days of rest, he shall be entitled to seek the consent of the Supervisor so to do. Provided that if any steps, taken by the Contractor in meeting his obligations under this Clause, invo lve the Supervisor in additional supervision costs, such costs shall, after due consultation with the Contractor, be determined by the Supervisor and shall be recoverable from the Contractor by the Supervisor, and may be deducted by the Supervisor from any monies due or to become due to the Contractor and the Supervisor shall notify the Contractor accordingly.



Article 39: Work register 39.1 The format of the works register will be determined by the Supervisor after the Contractor’s

submission of the det ailed programme of implementation of tasks for the works. The Supervisor may revise the format from time to time. The work register shall contain at least the information on the subjects specified in article 39.1 of the GC.

39.2 The detailed statements of the quantitative elements of the work done shall be incorporated in the

works register, but shall not be indicated as approved until the corresponding detailed statements of the qualitative elements are to the satisfaction of the Supervisor.

Article 40: Origin and Quality of works and materials 40.1 All goods purchased under the Contract must originate in any eligible source country as defined in

the EDF programme. For these purposes, ‘origin’ means the place where the goods are mined, grown, produced or manufactured and/or from which services are provided. The origin of the goods must be determined according to the EU Customs Code or the applicable international agreement.

Goods originating in the EU include goods originating in the Overse as Countries and Territories. When importing goods, any change in the specified origin must have been pointed out to the project

supervisor and approved by him. 40.2 The works and the objects, appliances, equipment or materials used in their constructi on must

comply with the Technical Specification and the Drawings contained in the contract document .

The standards, requirements and regulations referred to in the documents contained in the Technical Specifications shall be the minimum criteria to be ap plied for the acceptance of the completed work. Not more than thirty (30) days after the award date the Contractor shall submit a detailed Quality Assurance Management System in accordance with the scheme UNI EN ISO 9001:2000 for review and approval by the Supervisor. The System shall cover the quality assurance of all aspects of the Works, and contain, as a minimum, the following items: • Organisation chart for quality control

• List of Contractor`s staff to be engaged in quality control and materials testin g together with details of their relevant experience

• List of materials and facilities which will be inspected and tested by the Contractor at stages during implementation of the Works as part of his quality control, together with inspection procedures and test types

• Certificates of materials

• Documentation of surface treatment (corrosion protection)

• Relevant certificates on supplied materials.

• Detailed checklist for all works. The checklist shall be for the Contractors own use, documenting the Contractors own quality control of all works.

The plan may be supplemented with additional items from time to time as requested by the Supervisor. The approved Quality Assurance Management System shall be followed throughout the performance of the Contract, unless the S upervisor to the contrary issues specific approvals or instructions. Any approvals of the Supervisor shall not relieve the Contractor of his obligation to ensure that the Works comply with the requirements of the Contract.



Quality assurance records, test certificates, reports and daily records of on -site testing and inspection shall be kept on site during the works, and the results shall be certified by the responsible member of the Contractor 's staff.

40.3 The Contractor shall seek from the Supervisor th e preliminary technical acceptance for the type, design and incorporation of the weighbridge and related works. Such request shall be submitted at least 1 month before ordering such specific equipment.

Article 41: Inspection and testing

41.1 The Contractor is responsible for his own testing and quality control as specified in the General and

Special Technical Specifications included in Volume 3 of these tender dossiers. The Supervisor will at regular interval inspect and test materials and completed work for compliance with the specified requirements, and, where applicable the various specified judgement plans, will be applied. The testing frequencies and sample and lot sizes for routine testing shall be at the Supervisors discretion. All sections of completed work shall be submitted to the Supervisor for routine inspection and testing, and the Contractor shall not cover up or construct any work on top of sections of completed work before being advised by the Supervisor of the outcome of his tests and ins pection. The Contractor shall arrange the submission of work for testing in a manner as will afford the Supervisor reasonable opportunity for inspecting and testing.

Article 43: Ownership of plant and materials 43.2 All equipment, temporary works, plant and materials in Mozambique for the purposes of the contract,

owned by the Contractor or by any company in which the Contractor has a controlling interest shall, for the duration of the execution of the Works, be vested in the Contracting Authority.

Article 44: General principles 44.1 Payments shall be made in EURO. 44.2. The Contractor shall submit all applications for payment to the Supervisor’s Representative in one

original and five copies in a format approved by the Supervisor. The request for pa yment must be accompanied by a Commercial Invoice. A copy of the cover letter of the application for payment shall be sent to the Head of Delegation of the European Union in Mozambique.

Article 46: Pre financing 46.1 At the request of the contractor pre-financing may be granted to the contractor in accordance with

Article 46 of General Condition of Contract. 46.2. The lump-sum advance in respect of article 46.1(a) shall not exceed 10% of the original contract

price. The pre-financing in respect of Article 46.1(b) shall not exceed 20% of the original contract price. 46.8 Repayments shall take the form of deductions based on monthly claims

a) The lump-sum advance (maximum of 10 %) shall be repaid by means of deductions from instalments and, if necessary, the balance due to the Contractor. This repayment shall begin with the first instalment and be completed, at the very latest, by the time 80 % of the amount of the Contract has been paid unless the milestones set in article 12.11 have not been achieved. If achievement can not be certified by the Supervisor, then the relevant percentages to recover the lump-sum advance will be 70% (Milestone 1) and 60% (Milestone 2).

Repayment shall be made in the same currency as the pre -financing. The amount to be deducted from each instalment shall be calculated using the following formula:



R = Va × D where: Vt × 0.8 R = the amount to be repaid Va = the total amount of the advance Vt = the initial contract amount D = the amount of the instalment.

b) The pre-financing for plant, machinery and tools — and the pre-financing for other major prior

outlays (20 % maximum) — shall be repaid by means of deductions from instalments and, if necessary, the balance due to the Contractor. Repayment shall begin with the first instalment and end, at the very latest, by the time 90 % of the amount of the Contract has been paid unless the milestones set in article 12.11 have not been achieved. If achievement can not be certified by the Supervisor, then the relevant percentages to recover th is pre-financing will be 80% (Milestone 1) and 70% (Milestone 2). The amount to be deducted from each instalment shall be calculated using the following formula:

R = Va × D where: Vt × 0.9 R = the amount to be repaid Va = the total amount of the advance Vt = the initial contract amount D = the amount of the instalment.

Article 47: Retention monies 47.1 The amount of retention money on interim pa yments by way of guarantee that the Contractor’s

obligations will be met during the defects liability period is ten per cent (10%) of each interim payment.

Article 48: Price revision 48.1 Prices contained in the Contractor's tender (Volume 4) shall be deemed to have been established at

the economic conditions in force 30 days prior the latest date fixed for the submission of the tenders (reference date). If there is a variation in the economic conditions during the works, the monthly interim certificate of payment will be adjusted by applying the revision formulas in accordance with article 48.2.

48.2 The revision of prices must be calculated by combining the application of (a) a formula for bitumen related items and (b) a formula for non-bitumen related items as follows:

a) The revision of prices for bitumen related items shall be calculated by applying the following formula to bill items for bitumen related works:

D1n = M1n * { [a• + b1* (Z0/Zn)*(Ln / L0) + c•*(Z0/Zn)*(PEn / PE0) + d•*(Z0/Zn)* (FLn / FL0 ) + g•*(Z0/Zn)* (BIn / BI0)] – 1}

b) The revision of prices for all other items shall be calculated by applying the following formula to bill items for non-bitumen related works:

D2n = M2n * {[ a2 + b2*(Z0/Zn)* ( Ln / L0) + c2*(Z0/Zn)*(PEn / PE0) + d2*(Z0/Zn)* (FLn / FL0 ) +

e2*(Z0/Zn)* (CEn / CE0) + f2*(Z0/Zn)* (RSn / RS0)] – 1}

Where:

D1n= Amount (increase or decrease) to be paid due to revision of prices for bitumen related works during the month "n".



M1n = Amount due for the quantity of bitume n related works carried out during the month "n" , as determined in accordance with Article 44, as listed in Bills no. 4 - Asphalt Pavement and Seals. Provisional Sums within such bills are excluded.

D2n= Amount (iincrease or decrease) to be paid due to rev ision of for non-bitumen related works prices during the month "n".

M2n = Amount due for the quantity of non -bitumen works carried out during the month "n" , as determined in accordance with Article 44, involving works listed in Bills n° 1 - General, 2 - Drainage, 3 – Earthworks and Gravel, 5 – Ancillary works, 6 – Structures. Provisional Sums within such bills are excluded.

Z0 = Exchange rate between the currency of contract payment and the currency of the country of origin of the relevant index at the ref erence date, as published on the InforEuro web site , http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm .

Zn= Exchange rate between the currency of contract payment and the currency of the country of origin of the relevant index at the month "n", as published on the InforEuro web site , http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_en.cfm .

L0= Official monthly index for minimum labour wage rate in Mozambique, at the reference date, as published by Mozambique Government in “Diploma Ministerial”.

Ln= Official monthly index for minimum labour wage rate in Mozambique, at the month "n", as published by Mozambique Government in “Diploma Ministerial”.

PE0 = “Civil Engineering Plant” index, at the reference date, as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

PEn = “Civil Engineering Plant” index, at the month "n", as published by the Statistic al Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

FL0 = Official diesel price for mega projects, construction firms and public works , in force at the reference date, as published by the Ministry of Energy of Mozambique.

FLn = Official diesel price for mega projects, construction firms and public works , in force at the month "n", as published by the Ministry of Energy of Mozambique.

BI0= "Bitumen" index , at the reference date, as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

BIn= "Bitumen" index , at the month "n", as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

CE0= "Cement Retail" index , at the reference date, as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

CEn= " Cement Retail" index , at the month "n", as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

RS0= "Reinforcing Steel" index , at the reference date, as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

RSn= "Reinforcing Steel" index , at the month "n", as published by the Statistical Agency of South Africa in Statistics Release P0142.1, Table 12 on www.satssa.co.za.

a1 and a2 are constants, specified in the Appendi x to Tender Form, representing the maximum of non-adjustable portion of contractual payments granted at contract inception in the form of pre -financing.

b1, c1, d1, etc., and b2, c2, d2 etc., are weightings or coefficients representing the estimated proportion of each cost element (labour, materials, equi pment, etc.) in the works or sections thereof, net of Provisional Sums, as specified in the Appendi x to Tender Form by the tenderer. The coefficients



shall be set by the Contractor on the basis of the detailed breakdown of prices as submitted in its tenders. The Contractor will have to provide clear arithmetical calculations for the proposed coefficients. The total of the coefficients must be equal to 1.

The coefficients for each of the factors of cost given in the Appendix to Tender Form shall be adjusted if, in the opinion of the Supervisor’s Representative, they have been rendered unreasonable, unbalanced, or inapplicable as a result of varied or additional work already executed or instructed under Article 37 or for any other reason.

If at any point in time the specified indices for the month "n" are not available, provisional indices as determined by the Supervisor' Representative will be used. This provision shall be subject to subsequent correction of the amounts paid to the contractor when the specifie d indices become available.

Payments for materials on site shall not be subjected to the application of the revision of price formula.

To the extent that full compensation for any changes in economic conditions is not covered by the provisions of this or other clauses in the Contract, the unit rates and prices included in the Contract shall be deemed to include amounts to cover the contingency of such changes.

Article 49: Measurement 49.1 This contract is a “unit price” contract. Article 50: Interim payments 50.1 The minimum amount of interim payment shall be Euro 500,000.00. The Contractor shall in addition

to the invoice for the interim payment mentioned under Article 44. 3, also submit a soft copy version. Any spread sheets which the Contractor may wish to include in his invoice for interim payment shall be in a format where formulas are readable.

50.2 The provisions regarding plant and materials intended for but not yet incorporated in the works

include only the following:

§ Bitumen and bitumen products; § Cement; § Road lime; § Culvert and drainage pipes; § Paint for metal structures and for road markings; § Structural steel and reinforcing steel; § Guardrails; § Geotextiles; § Gabion mesh boxes; § Road lighting materials; § Road signs § Road studs.

The entitled sum is 80% of the on-site value of the materials, which includes any transportation and local duties and taxes.

50.2(f) Time related items will be paid in the ratio of actual cash flow with article 18 cash flow in

accordance with Milestone No 3. This will be adjusted quarterly. 50.5 The Supervisor shall inform the Contractor of the amount to be paid and the Contractor will submit a

commercial invoice for th is amount to the Supervisor . The commercial invoice will be attached to the interim payment certificate referred to under Article 50.5 b) . The payment period referred to in Article 44.3 will be calculated from the day on which the commercial invoice and certificate are jointly delivered to the Contracting Authority .



Article 51: Final statement of Account 51.1 The Contractor shall, submit to the Supervisor the draft final statement of account when it applies for

the provisional acceptance certificate. In order to enable the Supervisor to prepare the final statement of account, the draft final statement of account is submitted with supporting documents showing in detail the value of the work done in accordance with the contract and all further sums which the Contractor considers to be due to it under the contract.

51.2 Within 30 days from issuing the certi ficate of final acceptance referred to in article 62, the Supervisor

shall prepare and sign the final statement of account. Article 59: Partial acceptance 59.2 The Contractor may request partial provisional acceptance certificates for Works completed o n a

section of the road over 30 km long. Article 61: Defects liability 61.1 The defects liability period is defined as the period commencing on the date of provisional

acceptance, during which the Contractor is required to make good any effect in, or da mage to, any part of the work which may appear or occur during this period as notify by the Supervisor or the Contracting Authority. The rights and obligations of the parties with regard to this defects liability period are laid down in Article 61 of the G eneral Conditions.

61.7 The duration of the defects liability period is one year (365 days) commencing on the date of each

partial provisional acceptance as defined in Article 59 and 60 of the GCC. Article 68: Dispute settlement 68.4 Any dispute arising out of or relating to this Contract which cannot be settled otherwise shall

(a) in the case of a national contract, be settled in accordance with the national legislation of the state of the Contracting Authority; and

(b) in the case of a transnational contra ct, be settled either: (i) if the parties to the contract so agree, in accordance with the national legislation of the beneficiary

country or its established international practices; or (ii) by arbitration in accordance with the Procedural rules on conci liation and arbitration of contracts

financed by the European Development Fund, adopted by Decision No 3/90 of the ACP -EEC Council of Ministers of 29 March 1990 (Official Journal No L 382, 31.12.1990). (Annex A12 of the Practical Guide to contract procedur es for EU external action)]

THIS PAGE COMPLETES THE SPECIAL CONDITIONS OF THE WORKS CONTRACT



SECTION 4: SPECIMEN PERFORMANCE GUARANTEE



SECTION 4: SPECIMEN PERFORMANCE GUARANTEE

(To be completed on paper bear ing the letterhead of the financial institution)

For the attention of

(Name and address of the Contracting Authority) referred to below as the “Contracting Authority”

Subject: Guarantee No…

Performance Guarantee for the full and proper execution of contr act (contract number and title) (please quote number and title in all correspondence)

We, the undersigned, [name, and address of financial institution], hereby irrevocably declare that we guarantee, as primary obligor, and not merely as a surety on behal f of [Contractor's name and address], hereinafter referred to as “the Contractor”, payment to the Contracting Authority of [amount of the performance guarantee], representing the performance guarantee mentioned in Article 15 of the Special Conditions of the contract (contract number and title) concluded between the Contractor and the Contracting Authority, hereinafter referred to as “the Contract”.

Payment shall be made without objection or legal proceedings of any kind, upon receipt of your first written claim (sent by registered letter with confirmation of receipt) stating that the Contractor has failed to perform its contractual obligations fully and properly or that the Contract has been terminated. We shall not delay the payment, nor shall we oppose it for any reason whatsoever. We shall inform you in writing as soon as payment has been made.

We accept notably that no amendment to the terms of the Contract can release us from our obligation under this guarantee. We waive the right to be informed of any c hange, addition or amendment to the Contract.

We note that the guarantee will be released in accordance with article 15.8 of the General Conditions to the Contract [and in any case at the latest on (at the expiry of 18 months after the implementation peri od of the Contract)]4.

Any request to pay under the terms of the guarantee must be countersigned by the Head of Delegation of the European Union. In case of a temporary substitution of the Contracting Authority by the Commission, any request to pay will on ly be signed by the representative of the Commission, namely whether the Head of Delegation, or the authorised person at headquarters' level.

The law applicable to this guarantee will be that of the country of the Contracting Authority or the country in which the financial institution issuing the guarantee is established. Any dispute arising out of or in connection with this guarantee will be referred to the courts of the country of the Contracting Authority.

The guarantee shall enter into force and take effect upon its signature. Done at ………….., ../../.. Name and first name: …………………………… On behalf of: ………………… Signature: …………….. [stamp of the body providing the guarantee]

4 This mention has to be inserted only where required, for example where the law applicable to the guarantee imposes

a precise expiry date



SECTION 5: SPECIMEN PRE-FINANCING PAYMENT GUARANTEE



SECTION 5: SPECIMEN PRE-FINANCING PAYMENT GUARANTEE

(To be completed on paper bearing the letterhead of the financial institution)

For the attention of

(Name and address of the Contracting Authority) Referred to below as the “Contracting Authority”

Subject: Guarantee No…

Financing Guarantee for the repayment of pre -financing payable under contract (Contract number and title) (please quote number and title in all correspondence)

We the undersigned, [name, and address of financial institut ion], hereby irrevocably declare that we guarantee as primary obligor, and not merely as surety on behalf of [Contractor's name and address], hereinafter referred to as “the Contractor”, the payment to the Contracting Authority of [indicate the amount of the pre-financing], corresponding to the pre -financing as mentioned in Article 46 of the Special Conditions of the contract (Contract number and title) concluded between the Contractor and the Contracting Authority, hereinafter referred to as “the Contrac t”.

Payment shall be made without objection or legal proceedings of any kind, upon receipt of your first written claim (sent by registered letter with confirmation or receipt) stating that the Contractor has not repaid the pre-financing on request or that the Contract has been terminated. We shall not delay the payment, nor shall we oppose it for any reason whatsoever. We shall inform you in writing as soon as payment has been made.

We accept notably that no amendment to the terms of the Contract can releas e us from our obligation under this guarantee. We waive the right to be informed of any change, addition or amendment of the Contract.

We note that the guarantee will be released in accordance with the article 46.7 of the General Conditions. [and in any case at the latest on (at the expiry of 18 months after the implemen tation period of the Contract)]5.

Any request to pay under the terms of the guarantee must be countersigned by the Head of Delegation of the European Union. In case of a temporary substitut ion of the Contracting Authority by the Commission, any request to pay will only be signed by the representative of the Commission, namely whether the Head of Delegation, or the authorised person at headquarters' level.

The law applicable to this guarante e will be that of the country of the Contracting Authority or the country in which the financial institution issuing the guarantee is established. Any dispute arising out of or in connection with this guarantee will be referred to the courts of the countr y of the Contracting Authority .

The guarantee will enter into force and take effect on receipt of the pre -financing payment in the account designated by the Contractor to receive payments.

Done at ………….., ../../.. Name and first name: …………………………… On beh alf of: ………………… Signature: …………….. [Stamp of the body providing the guarantee]

5 This mention has to be inserted only where required, for example where the law applicable to the guarantee imposes

a precise expiry date.



SECTION 6: SPECIMEN RETENTION GUARANTEE



SECTION 6: SPECIMEN RETENTION GUARANTEE

(To be completed on paper bearing the lett erhead of the financial institution)

For the attention of (Name and address of the Contracting Authority) referred to below as the “Contracting Authority”

Subject: Guarantee No… Retention Guarantee for contract (contract number and title) (please quote n umber and title in all correspondence)

We, the undersigned, [name, and address of financial institution ], hereby irrevocably declare that we guarantee, as primary obligor, and not merely as a surety on behalf of [Contractor's name and address], hereinafter referred to as “the Contractor”, payment to the Contracting Authority of [amount of the retention guarantee], representing the retention guarantee mentioned in Article 47 of the Special Conditions of the contract (contract number and title) concluded between the Contractor and the Contracting Authority, hereinafter referred to as “the contract” Payment shall be made without objection or legal proceedings of any kind, upon receipt of your first written claim (sent by registered letter with confirmatio n of receipt) stating that the Contractor has failed to perform its contractual obligations fully and properly or that the Contract has been terminated. We shall not delay the payment, nor shall we oppose it for any reason whatsoever. We shall inform you i n writing as soon as payment has been made. We accept notably that no amendment to the terms of the Contract can release us from our obligation under this guarantee. We waive the right to be informed of any change, addition or amendment to the Contract. We note that the guarantee will be released in accordance with article 47.3 of the General Conditions to the Contract [and in any case at the latest on (at the expiry of 18 months after the implemen tation period of the Contract)]6. Any request to pay under the terms of the guarantee must be countersigned by the Head of Delegation of the European Union. In case of a temporary substitution of the Contracting Authority by the Commission, any request to pay will only be signed by the representative of the Com mission, namely whether the Head of Delegation, or the authorise d person at headquarters' level The law applicable to this guarantee will be that of the country of the Contracting Authority or the country in which the financial institution issuing the gua rantee is established. Any dispute arising out of or in connection with this guarantee will be referred to the courts of the country of the Contracting Authority. . The guarantee shall enter into force and take effect upon its signature. Done at ………….., ../../.. Name and first name: …………………………… On behalf of: ………………… Signature: …………….. [Stamp of the body providing the guarantee]

6 This mention has to be inserted only whe re required, for example where the law applicable to the guarantee imposes a precise expiry date



SECTION 7: TAX AND CUSTOMS ARRANGEMENTS



SECTION 7: TAX AND CUSTOMS ARRANGEMENTS

The Contractor is to show the arrangements he has made for taxes and customs. Article 31 from Annex IV to the Cotonou Agreement, signed on 23 rd June 2000 1. The ACP States shall apply to contracts financed by the Community tax and customs arrangements no less favourable than those applied by them to the most favoured States or international development organisations with which they have relations. For the purpose of determining the most -favoured-nation (MFN) treatment, account shall not be taken of arrangeme nts applied by the ACP State concerned to other ACP States, or to other developing countries. 2. Subject to the above provisions the following shall apply to contracts financed by the Community: (a) the contract shall not be subject in the benef iciary ACP State to stamp or registration duties or to fiscal charges having equivalent effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered in accordance with the laws in force in th e ACP State and a fee corresponding to the service rendered may be charged for it; (b) profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements of the ACP State concerned, provided that the natural or legal persons who realise such profit and/or income have a permanent place of business in that State, or that the performance of the contract takes longer than six months; (c) enterprises which must import professional equipment in order t o carry out works contracts shall, if they so request, benefit from the system of temporary admission as laid down by the national legislation of the beneficiary ACP State in respect of the said equipment; (d) professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the beneficiary ACP State or States in accordance with its national legislation free of fiscal, import and customs duties and of other charges having equivalent effect where these duties and charges do not constitute remuneration for services rendered; (e) imports under supply contracts shall be admitted into the beneficiary ACP State without customs duties, import duties, taxes or fiscal charges having equivalent effect. The contr act for supplies originating in the ACP State concerned shall be concluded on the basis of the ex -works price of the supplies to which may be added such internal fiscal charges as may be applicable to those supplies in the ACP State; (f) fuels, lubricants and hydrocarbon binders and, in general, all materials used in the performance of works contracts shall be deemed to have been purchased on the local market and shall be subject to fiscal rules applicable under the national legislation in force in the ben eficiary ACP State; and (g) personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes and other fiscal charges having equivalent effect, within the limit of the national legislation in force in the beneficiary ACP State. 3. Any matter not covered by the above provisions on tax and customs arrangements shall remain subject to the national legislation of the ACP State concerned.