MEPO Contracting and

Management Service P.L.C

Mohammedia Village Project

(Contract Package CP02a-MP)
Addis Ababa, Ethiopia

Contractor’s Extension of Time

Claim No.02

May 2023
EOT No. 02: Mohammedia Village Project May 2023
Contract Package CP02a-MP:

Table of Contents

I. Project Information ....................................................................................................................... 3

A. Background ............................................................................................................................... 3

B. Location .................................................................................................................................... 3

C. Scope of Works......................................................................................................................... 4

D. Basic Contract Data .................................................................................................................. 5

II. Terms and Conditions of Contract - Sub-Clause 1.5 of the GCOC ............................................... 6

III. Work Programme.......................................................................................................................... 6

IV. Claim Heads of Extension of Time No. 02 Claim ......................................................................... 8

1. Delay due to Exceptional Adverse Climatic Condition ................................................................. 8

A. Causes of the Claim ...................................................................................................................... 8

B. Effect and Contractor’s Entitlement .............................................................................................. 9

2. Delay due to advance payments .................................................................................................. 13

A. Causes of the Claims ............................................................................................................... 13

B. Effect and Contractor’s Entitlement ........................................................................................ 13

3. Delay due to spoil area problem .................................................................................................. 14

A. Causes of the Claims ............................................................................................................... 14

B. Effect and Contractor’s Entitlement ........................................................................................ 14

4. SYNOPSIS ................................................................................................................................. 16

5. ANNEX - Contemporary Records and Detailed Particulars used as Substantiation .................... 17

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EOT No. 02: Mohammedia Village Project May 2023
Contract Package CP02a-MP:

I. Project Information

A. Background
The Contractor, MEPO Contracting and Management Service P.L.C, has entered into a
Contract Agreement with the HUDA REAL ESTATE P.L.C for the build of
Mohammedia Village Project (Contract Package CP02a-MP) wherein the Agreement had
been signed between the parties on 30 December 2022. The Contractor agreed to
construct the village project for an original contract amount of ETB 143,362,472.14
including VAT, in line with the requirement and standard set in the Employer’s
Requirement.

ZIAS Design International PLC is the Employer’s Representative assigned to design and
supervise the village project.

The project commenced on December 23, 2022 with original planned to have contract
duration of 52 days where as the revised-01 is 162 days, including mobilization plus 365
calendar days of Defects Liability Period.

B. Location
The project village is entirely located in the capital city of Addis Ababa, Ethiopia. And
the project specifically located is Nifas-silk Sub-city, Worde-01

The project location map is shown here below:

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Contract Package CP02a-MP:

Figure -1 Location Map

C. Scope of Works

The Works to be carried out under this contract comprises the construction of
Mohammedia Village Project, in this contract package particular targeted partial
excavation work of the village project.
The lists of the major components of the activities to be carried out are listed under

• Construction of partial excavation work including cart away

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D. Basic Contract Data

Project Name Mohammedia Village Project (Contract Package
CP02a-MP)

Employer HUDA REAL ESTATE P.L.C

Contractor MEPO Contracting and Management Service P.L.C

Consultant/Employer’s ZIAS Design International PLC

Representative

Type of Contract Cost-plus Contract and BBD

Project Type Village project

Date of Contract Signature December 30, 2022

Commencement Date December 23, 2022

Original Completion Date February 12, 2023

Original Contract amount ETB 143,362,472.14 including 15% VAT

Original Contract Duration 52 days

Revised Time -1 for Completion June 12, 2023 1

Liquidated damages for the 0.1% of the contract price per day, in the currencies and
Works proportion in which the contract price is payable

Limit of liquidated damages 10% of the contract price

Defect liability period 365 days

Retention Money 5% of the monthly Interim Payment Certificates, up to

a maximum of 5% of the Contract Price

Minimum amount of Interim ETB-----

Payment Certificate

Total Amount of Advance 20% of the Contract Price

Payment

1 Based on the Employer’s Representative determination

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II. Terms and Conditions of Contract - Sub-Clause 1.5 of the GCOC

The Contract Agreement signed between the Employer and the Contractor is based on the
FIDIC 2017 For Building and Engineering Works Designed by The Employer and consists of
various other documents. The priority of documents is as depicted in the contract and in case
of discrepancy it shall be read and interpreted in the order of precedence stated under Sub
Clause 1.5 of the Conditions of Particular Application and contract agreement as follows:

1. The Contract Agreement,

2. The Letter of Acceptance,
3. Addendum to the bidding document, Contractor’s Offer, Appendix to Bid, and
payment Schedule and etc.
4. The Conditions of Contract Part A-Contract Data,
5. The Conditions of Contract Part B-Special Provisions,
6. General Condition of Contract,
7. The technical Specification,
8. The Drawing,
9. The Bill of quantities, and
10. Tender any other document forming part of the contract

III. Work Programme

The subject Contract’s General Conditions of Contract is agreed to be FIDIC 2017 For
Building and Engineering Works Designed by The Employer; wherein a number of
provisions as Particular Conditions have been introduced to change, override or
supplement the provisions of the GCOC, under its Particular Conditions of Contract.

Among the Contract provisions, Clause 4.20 of the General Conditions of Contract
[GCOC] and the Particular Conditions [PC] stipulates the requirements of the Contract
regarding the work programme, wherein the General Conditions of this clause stipulates
“…The Contractor shall submit a programme to the Employer’s Representative, for
information, within the time stated in the Appendix to Tender…”. Under this provision,

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the Particular Conditions of the Contract stipulates the details requirements of the
Contract in relation to the contents and considerations of the work programme. In line
with the provisions of the Contract, the Contractor submitted his Original Work Program
timely that contains the Contractor’s method statements, the order of procedure and
description of the construction methods and arrangements how to carry out the works.
These are requested under Sub-clause 4.21 of the Special Conditions of the Contract,
specifically, to incorporate:

• Actual and planned progress of work

• Actual and planned costs related to planned and actual work progress

As stipulated, the Contractor submitted a work program detailing each construction

activity with the periods of construction, activity planned; the percentage completion
anticipated per activity

The Employer issued his approval to the first and second work programme (Master Work
Programme) via his letter Ref. No. HUDA-ZIAS dated March 01, 2022. From the
approved Master Work Programme, it is noted that:

• No rainy season with the schedule months (December 23, 2022 – June 6, 2023);
• These activities are some of the Critical Activities identified in the approved work
programme; wherein any delay on such activities affected the Contract
completion date of the project:
o Cut to Spoil,

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IV. Claim Heads of Extension of Time No. 02 Claim

For this particular claim submission, Extension of Time (EoT) claim No.2, the Extension
of Time request is associated with:
1. Delay due to Exceptional Adverse Climatic Condition
2. Delay due to advance payments
3. Delay due to spoil area

Accordingly, in the following sections, the Contractor presents each of the claim head
with detail causes, contractual grounds, and detail assessment of the requested Extension
of Time for the Employer’s Representative review and determination; wherein the
Contractor expects fair and impartial evaluation of this claim submission as to the
requirements of Sub-clause 3.7.2 of the General Conditions of the Contract.

1. Delay due to Exceptional Adverse Climatic Condition

A. Causes of the Claim

1.1. As recalled, the Contractor, wherein in this submission, the Contractor presents his
claim for the rainfall impact from December 23,2022 till end of May 2023.

1.2. As clearly notified to you, our intent of claim regarding the delay of the project's time
of completion due to exceptionally adverse climatic conditions was communicated via
letter Ref. No. MEPO/1008/05/006/23 on dated March 01, 2023. Boundless thanks for
your respond

1.3. Though rainy season and expected rainy days envisaged by the Contractor, using the
data base of national meteorology agency. on the envisaged dry season, unexpected
rainfall affects the progress of the project, which were exceptionally adverse and were
not foreseeable by the base date of national meteorology agency.

1.4. The Contractor expects to analyze the rainfall trend in the project area based on
rainfall data available at the time from National Metrological Service Agency for the
previous ten years, while unexpected weather condition affects the Contractor’s

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Contract Package CP02a-MP:

progress unlike to our original assumptions means unexpected rainfall compare to last
ten years.

1.5. Metrological data was requested from the Ethiopian National Metrological Service
Agency, in order to show the project’s history for a period from 2012 till 2021.

1.6. In relation to the delay due to exceptional adverse condition; please draw your
attention to:

1.7. In addition, Sub-Clause 8.5 of the General Conditions of the Contract states The
Contractor may apply for an extension of the Time for Completion by any of the
following causes:
1.8. (c) exceptionally adverse climatic conditions, which for the purpose of these
Conditions shall mean adverse climatic conditions at the Site which are Unforeseeable
having regard to climatic data made available by the Employer under Sub-Clause 2.5
[Site Data and Items of Reference] and/or climatic data published in the Country for
the geographical location of the Site;

1.9. Thus, for this claim head, the cause of the claim is exceptionally adverse climatic
condition experienced in the project, which is one of the delay events that entitle the
Contractor to an Extension of Time in accordance with Clause 8.5 (c) of the General
Conditions of the Contract.

B. Effect and Contractor’s Entitlement

2.1. Sub-clause 8.5 (d) of the General Conditions of Contract allows Extension of Time for
the claim event of “exceptionally adverse climatic condition” and as discussed above,
the project suffer delay from this event.

2.2. In evaluating the delay, with the same principle with what you have adopted in your
determination, the Contractor has reviewed the official average rainfall intensity for

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the area provided by the National Metrological Service Agency, and made a
comparison with actual number of rainy days for the claimed duration.

2.3. If the actual number of rainy days is greater than the ten years average monthly
number of days of rainfall, those days are considered as exceptionally adverse rainfall;
and the contractor considers rainfall with intensity of above 5mm normally affects
construction activities for the rainy day leading to a loss of one working day.

2.4. Further, the knock-on effect; i.e., rainfall with intensity of 13mm or above was strong
enough to saturate the soil and adversely affect the normal execution of works during
the rainy day and the following day, resulting in a loss of at least two working days in
total and the Contractor considers one additional day as knock-on effect day.

2.5. The Contractor considers the following methodology and data

 All rainy days are considered as rainy days affecting construction activities with
an intensity of 5mm and above.
 The ten years average numbers of rainy days have been calculated for each
month over the period 2012 to 2021; collected from the National Metrology
Agency;
 The ten years average rainy days have been deducted for each month from
actual number of rainy days (with intensity of 5mm and above) of the respective
months in the years 2022 and 2023. The resultant delays have been indicated in
rows, which have been considered as “exceptionally adverse and unforeseeable
rainy days.
 The knock-on effects are considered as two days more for the rainfall intensity
greater than 13mm, (which is the next two days) in view of the fact that the
building foundation area is susceptible for a small rainfall intensity due to the
nature of the soil, depth of excavation and movability of site and access of spoil
are.
 The project duration rainfall data for the claimed duration is used from the
National Metrological Service Agency recorded data (December 2022 till end of
May 2023)

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Contract Package CP02a-MP:

Month
Jan. Feb. Mar. Apr. May June July Aug. Sept Oct. Nov. Dec.
Year
2012 - - 2 6 3 8
17 - - -

2013
1 - 6 10 8 10 14 5 1 -
2014
- 1 2 1 5 6 9 1 1 -
2015
- - - - 9 9 4 2 2 -
2016
2 1 4 5 13 9 8 1 - -
2017
- 1 2 2 9 5 20 4 - -

Rainy Season
2018 5 1 2 -
- 2 2 1 7 27
2019 19 1 - 1
- 1 2 3 7 19
2020 14 1 - 1
- - 5 9 9 17
2021 16 1 - -
- 4 1 7 4 9
No. Rainfall in
10 9 4 2
ten years 2 6 9 9 10 10
Total Rainfall
126 17 6 2
days 3 10 26 44 74 119

Monthly2 Avg
No. of Days 2 2 3 5 7 12 13 2 2 1
Rain

2.6. The Contractor compares the project duration rainfall data for the claimed months of
the average number of rainy days for each month, and calculated the additional days
above the average as the claimed days; wherein the details are shown in the following
table:

2 The average is calculated based on the number of years of recorded monthly data

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Month Jan Feb Ma Apr May Jun July Aug. Sep Oct Nov Dec.

2012 - 2021 Average data from NMSA

Monthly

Total
Average No.
2 2 3 5 7 12 13 2 2 1
of Rainy
Days
2022 2022
No. of days
rains & 0
interrupted
No. of days
Project No
interrupted
Project No Awarded Duration Awarded
greater than 0 0

Rainy Season
Duration
ten years
average
Knock on
0 0
effects
2023 2023
No. of days
rains & 0 0 13 8 12
interrupted Will
No. of days be
interrupted request Will be request in the
greater than 0 0 10 3 5 in the next claim 18
ten years next
average claim
Knock on
0 0 4 5 6 15
effects
Total 33

2.7. Therefore, as to the above calculation, the total exceptionally adverse climatic days of
33 Calendar days .and we hereby request that an interim extension of time of 33
calendar days is due to us pursuant to Sub-clause 8.5(d) of the Conditions of the
Contract on account of the delays suffered due to exceptionally adverse and
unforeseeable climatic conditions for the duration from December 2022 till end of May
2023.

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2. Delay due to advance payments

A. Causes of the Claims

2.1. According to Sub-clause 14.7 of the Special Condition of the Contract, the Contractor
must receive the full advance payment within seven days of the Contract's signature, or
by December 30, 2022.

2.2. At several meetings, we requested you to release the advance payment. Nonetheless, you
released our advance payment on March 24, 2023, rather than paying before January 7,
2023, as required by the aforementioned sub-clause. The related advance payment letter is
attached as an Annexure.
2.3. The advance payment enables the contractor to meet expenditures for start-up and for
purchasing or ordering material, equipment, plant, tools, and any other items required for
operationally connected with task implementation.

2.4. Please remember that Item 2.3 stresses the benefits of advance payment. The Contractor
to work the project according to the work program, collecting full advance payment is
critical and has a direct proportional impact on all actions, unless the schedule is
significantly missed and caused by a public body for which the contractor is not
accountable under Sub-clause 14.8 of the general condition of contract.
2.5. In this situation, the Contractor may request an extension of the scheduled completion
date under General Conditions of Contract Sub-clause 8.5.

B. Effect and Contractor’s Entitlement

2.6. According to Sub-clause 14.8 of the General Conditions of Contract, the Contractor must
compensate additional time for the delay of advance payment
2.7. The advance payment delay has direct proportional impact on all activity so the advance
payment back log or slow down the all-project progress by 33% percentage

2.8. As a result, the lag time displayed in March 24, 2023 mines January 07, 2022 = 76 days *
33% equals the delay owing to this claim head is 25 days. However, the exceptional
adverse climate days during the period is 4 days (or in month of March) as cited above,
So 25 – 4 = 21 days

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3. Delay due to spoil area problem

A. Causes of the Claims

3.1. According to Subclause 12.2 of the Special Condition of the Contract, any activity must
be paid using the cost-plus measurement method. This means that any costs that are
excessive or outside of the breakdown rate we provided must be disclosed to the client in
accordance with Subclause 20.2.1, and the contractor has presented the spoil area fees and
related issues with this every week during a meeting held in the client's presence at the
project site.

3.2. We are all aware of the problem of spoil areas; for a long time, there was a charge of
roughly 72 birr for one dump truck's dumping. On March 3, 2023, the local authority
wrote a letter to halt the use of the spoil area by reasoning their concern and in the
absence of other locations vs. Ref. No. ኮል/አጥ/02-27/04-233 dated February 24, 2015 E.C.

3.3. However, because the project is in the middle of the city, it is quite difficult. At our
weekly meeting, we all brainstormed and worked out a strategy to acquire a practically
free spoil area with the help of the local governor. The project suffers since this problem
is still not entirely resolved.

3.4. In this situation, the Contractor may request an extension of the scheduled completion
date under General Conditions of Contract Sub-clause 8.5.

B. Effect and Contractor’s Entitlement

3.5. According to Sub-clause 12.2 of the Special Conditions of Contract, the Contractor must
compensate additional time for the delay of spoil area problem

3.6. Because this package of contracts is primarily focused on excavation work, the spoil area
issue has a direct proportionate influence on all activities, affecting the backlog 100% and
all project progress by the same percentage.

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3.7. Weekly progress of cart away work before the local authority halted the spoil area (date
of interrupted: March 03, 2023)

Executed quantity from

Item Description Duration Unit submitted report
1 Week 07 (12/26/23 up to 1/1/23) m3 23,200.00
2 Week 09 (1/9/23 up to 1/15/23) m3 17,120.00
3 Week 11 (1/23/23 up to 1/29/23) m3 18,320.00
4 Cart away Week 12 (1/30/23 up to 2/5/23) m 3
19,446.00
5 Week 13 (2/6/23 up to 2/11/23) m3 15,072.00
6 Week 14 (2/12/23 up to 2/18/23) m 3
15,608.00
7 Week 15 (2/19/23 up to 2/25/23) m3 20,446.00
Average performance per week (A) is m3 18,458.86
3.8. Weekly progress of cart away work after the local authority halted the spoil area (date of
interrupted: March 03, 2023)
Executed quantity from
Item Description Duration Unit submitted report
1 Week 17 (3/12/23 up to 3/18/23) m3 5,040.00
2 Week 18 (3/19/23 up to 3/25/23) m3 8,820.00
3 Week 19 (3/26/23 up to 4/1/23) m3 8,820.00
4 Week 20 (4/2/23 up to 4/8/23) m3 7,056.00
5 Cart away Week 21 (4/9/23 up to 4/15/23) m3 7,056.00
6 Week 22 (4/16/23 up to 4/22/23) m3 8,064.00
7 Week 23 (4/23/23 up to 4/29/23) m3 7,056.00
8 Week 24 (4/30/23 up to 5/6/23) m3 7,056.00
9 Week 25 (5/7/23 up to 5/13/23) m3 13,608.00
Average performance per week (B) is m3 8,064.00
Percent of performance reduced due to spoil area problem (1-B/A*100)
is 56.31%
N.B. Affected days due to spoil area problem (May 30, 2023 - March 03,
2023 = 89 days and the exceptional adverse climate days during the
period is 33 as cited above. So, 89-33= 56 ) and affected days is 56 days
* 0.5631 = 32

3.9. Therefore, according to the above calculation, the total delay for spoil area problems is 32
days. and we hereby request that an extension of time of 32 days be granted to us
pursuant to Sub-clause 8.5(d) of the Conditions of the Contract on account of the delays
suffered due to spoil area problems for the duration from March 3, 2022, until the end of
May 2023.

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4. SYNOPSIS

Please draw your attention to the contract's requirements that if the Contractor is delayed,
an appropriate determination will be issued in accordance with Sub-Clause 3.7 to agree or
determine any extension of time to which the Contractor is allowed under Sub-Clause 8.5.
The table below summarizes the overall time computed in each of the claim heads as
detailed in the document:

Claimed
No. Claim Heads Remark
Days

Delay due to Exceptional Adverse In this EOT-2 proposal, we have taken

1 33
Climatic Condition concurrency into account.

2 Delay due to advance payments 21

3 Delay due to spoil area 32

Total (No=1+2+3) 86 days

Due to unanticipated delays, we hereby request the Employer Representative grant us an

extra 86 calendar days of time extension, with the revised completion date set to
September 6, 2023.

Because of this, the Contractor respectfully requests that the Employer's Representative
adhere to Subclause 3.7 and come to a decision or reach an agreement while taking all
relevant factors into account and adjusting the Time for Completion.

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5. ANNEX - Contemporary Records and Detailed Particulars used as Substantiation

Annex 1 –Bar chart from Approved Master Work Programme

Annex 2 – Ten Years rainfall data ((National Metrological Service

Agency)

Annex 3 – Project Duration Rainfall data (December 2022 till end

of May 2023) (National Metrological Service Agency)

Annex 4 – Correspondence
4.1 Correspondence Regarding Work Programme
4.2 Correspondence Regarding Intent of Claim
4.3 Corresponding Regarding Advance Payment
4.4 Corresponding Regarding Spoil Area with Local Authority

Annex 5 – Weekly performance report

Annex 6 – Remain work program

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ANNEX

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ANNEX 01- Bar chart from Approved Master

Work Programme

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ANNEX 02- TEN YEARS RAINFALL DATA

(NATIONAL METROLOGICAL SERVICE

AGENCY)

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ANNEX 03- PROJECT DURATION

RAINFALL DATA

(DECEMBER 2022 TILL END OF MAY 2023)

(NATIONAL METROLOGICAL SERVICE

AGENCY)

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ANNEX 4 – CORRESPONDENCE

4.1 CORRESPONDENCE REGARDING

WORK PROGRAMME

4.2 CORRESPONDENCE REGARDING

INTENT OF CLAIM

4.3 CORRESPONDING REGARDING

ADVANCE PAYMENT

4.4 CORRESPONDING REGARDING SPOIL

AREA WITH LOCAL AUTHORITY

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ANNEX 5 – WEEKLY PERFORMANCE

REPORT

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ANNEX 6 – REMAIN WORK PROGRAM

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