CONSTRUCTION
CONTRACT
NO: 2019.PT.008.008
Between
Mr. KHUY ON
And 
Mr. NGUYEN HUU DUNG
CONSTRUCTION    : KPS 18 STORIES PROJECT
ITEM                         : SUPPLY AND INSTALLATION OF POST TENSIONING         
                                      MATERIAL
                              
ADDRESS                  : SHIHANOUK
VILLE, CAMBODIA
                                         
August 2019
CONTENT OF CONTRACT
Article 1 Contract Provisions
Article 2 Obligations of PARTY B
Article 3 Materials Quality Guarantee
Article 4 Payment
Article 5 Change and Arising term
Article 6 Suspension, Delay and Termination of Contract
Article 7 Completion of contract and Implementation provisions.
Article 8 Working Platform on Construction Site
Article 9 Equipment of PARTY B
Article 10 Equipment of Main Contractor Party A
Article 11 Test
Article 12 The Scope of Law
Article 13 Safety and Security at Site
Article 14 Solution to Dispute
Article 15   Insurance
Article 16   Warrantee
Article 17 Force Majeure
Article 18   Construction progress & Arising by Extension of construction progress
Article 19 Change of Material s Origin
Article 20 Contract Value
Article 21   Implementation provisions and
Validity of the contract
Appendix:
A. Contract value and Term of Payment
B. Scope of work
C. Post Tensioning Slab Area
CONTENT OF CONTRACT
Today,
../08/2019, Phnom Penh, Cambodia, we are:
I.      THE PARTIES OF THE CONTRACT
1.    
Party A
            Name                 :
Khuy On
            Address              :
House #24&25, St 88,  Sangkat Wat
Phnom, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia. 
Telephone :(+855) 12 977 030
Khmer identity card number : 010305868 (01)
2.    
The contractor (Party B)
            Name                 :
Mr. Nguyen Huu Dung
Address : Room 302, House #147E, Street 63, Sangkat Chaktomok, Khan Doun Penh, Phnom Penh, Cambodia.
Telephone : (+855) 886 72 88 99
Passport number : C3781138
Bank Account Name : NGUYEN HUU DUNG
Bank Account Number : 0010003998059
Bank : CANADIA BANK PLC.
Now therefore, in consideration of the mutual covenants and agreement herein contained, the parties hereto sign contract for project "KPS 3 Stories Apartment " for Phase V as follows:
Article 1  Contract provisions
The hereafter documents are integral parts of this contract and are delivered from Party A to the Contractor.
- This Construction Contract;
- Design drawings (contracting drawings), amended design drawings (if any) after approval;
- Technical specifications documents;
- Contract appendix (Appendix A, Appendix B, Appendix C)
- Minutes of meetings between the parties (if any)
Article 2 - Obligations of PARTY B
2.1 PARTY B shall be responsible for supplying post tensioning materials and implementation on site as agreement, Party A shall implement the payment for PARTY B as per Article A of this Contract.
2.2 PARTY B will try its utmost to finish the contract, follow all technical drawings specifications, Party A s requirements and rationalize every working step in order to reduce any cause of construction progress disruption.
2.3 PARTY B must understand the progress planned by Party A as well as the nature of work and site s condition.
2.4 PARTY B must comply with the common progress planned by Party A and any recommendations for changes must be informed to Party A.
2.5 PARTY B must appoint authorized representatives, authorized person to receive instruction on behalf of PARTY B.
2.6 All of tax for import and export post tensioning materials for this project are the responsibility of Party B.
Article 3 - Material Quality Guarantee
3.1 PARTY B guarantees the material quality as stated in the quotation documents (Strand 12.7mm; origin: Thailand, anchorage origin Thailand, Duct origin Thailand (dimension 20x60 mm for 3-strand tendon, 20x70mm for 4-strand tendon,20x75mm for 5-strand tendon).
PARTY B shall supply Party A with certified copy of main material document as below:
o For imported material: Certificate of Quality (CQ), Certificate of Origin (CO).
o For domestic material: Certificate of Quality from manufacturer.
3.2 In case of being requested for replacement or reparation (if have), Party A must send fax to PARTY B and later confirm by written notice. Within 30 days since sending fax, PARTY B takes responsibility to implement the material replacement by delivering new material and bear all related cost.
Article 4 - Payment
4.1 The currency unit used in transactions is US Dollar.
4.2 Unit price for payment is USD / m2 of Slab
4.3 The Quantity for determining payment is the quantity of the work item of PARTY B, which is determined in m2of slab.
4.4 The payment value is determined by unit prices specified in the Contract (Appendix A: Contract Value & Term of Payment) multiplied by total area of slab which are checked and accepted.
4.5 The contract value payment can be divided into phases for Party A to pay for PARTY B according to the completion of items stated in Appendix A.
4.6 All payments are transferred to PARTY B by cheques or in cash.
Article 5 - Change and Arising Term
Party A can issue the guidelines for changes and PARTY B shall comply with those directions to supplement the work regulated in the Contract and Party A will adjust the price according to proportion and value of the Contract.
Any arising quantity is only accepted if during the construction process, Party A requests to add new items to the project compared to the approved design, which increases the quantity (change of design from the approved design, detailed design, construction methods). Any change of design must be approved by Party A based on recommendation of the Design Consultancy and Project Management Department, as the following cases:
5.1 Add; adjust the price for the arising quantity of work item in this Contract.
To determine the value of the item, arising work will be priced and stated in the quotation. PARTY B will implement the arising work when PARTY B and Party A sign the Appendix.
5.2 Add; adjust the unit price for the arising work items and work which are not included the Contract. The arising items which are not stated in the contract with unit price, PARTY B must submit the separated quotation of this item, implementation is only after approval by Party A.
Article 6 - Termination, Suspension and Delay
of the Contract
6.1          
Each
party has the right to suspend contract:
As per section 6.1.1 and 6.1.2 in this Contract, each party has the right to suspend the Contract.
6.1.1 PARTY B suspends the
work:
PARTY B has the right to suspend providing the work based on any reason below:
(a) If Party A doesn t comply with the obligations in this contract within fourteen (14) days after PARTY B sends notification of request to implement to Party A;
(b) In case of Force Majeure events as per Article 23 in the Contract.
(c)       If Party A doesn't demonstrate the legitimate
reasons to explain or respond within seven (07) days after receiving
statement letter from PARTY B. PARTY B reserves the right to suspend the work
after notifying to Party A in written notice, including the reason for
suspension.
6.1.2 Party A suspends the contract.
Party A has the right to wholly or partly suspend any work items in document declaring the reason for PARTY B s mistakes, or any conditions beyond control of Party A. The notification for suspending contract must be sent fourteen (14) days prior to the suspension comes to effect.
6.1.3    Payment for the cost of suspending contract.
(a) In case of suspending contract, under any faults of Party A, Party A must pay for all related work/service that PARTY B finishes and refund all related cost calculated till the date of suspending contract, and all reasonable cost for starting over the contract.
(b) Under any faults of Party B s work or not fulfilling obligations. Party B must compensate all the cost including materials and labor.
6.2 Contract termination: Party A or PARTY B can notify in written notice to the other party to inform the suspension or termination of the obligations in the Contract.
(c) If one Party violates any obligations in the contract and the breach of contract is not corrected within seven (07) days (or longer period of time if accepted by the other party) after notifying in written notice regarding the breaching party to specify the breach scope and request for the correction; or
(d) If the Project is terminated, this contract can be terminated when one party request other party in written notice to terminate the contract on the date stated in the notification not less than thirty (30) days after sending notification.
(e) Bankrupt or insolvent, closed, managed assets, negotiate with creditors or continue the business under the supervision of authorized persons or property manager, or action will be taken existing or events occurring (according to the applicable law) which has a similar effect to the activity or event.
6.3 Party A will not be allowed to terminate the contract under this clause for self-construction or arrange to appoint another contractor if PARTY B does not violate the contract obligations.
6.4 Termination of this Agreement does not affect the rights related to the violation or foul earlier:
The termination of this Agreement will not affect any payment that each party may request the other party, in relation to the violation of the terms of the Agreement, which occur before the date of termination of this Agreement.
Article 7 - Completion of contract and
Implementation provisions
7.1 PARTY B must start the construction work immediately upon receipt of written notice from the Party A and must complete according to the schedule agreed with Party A.
7.2 Prerequisite condition to allow an extension of time to perform the contract is PARTY B must notify Party A immediately when the risk of completion delay of the work appears.
7.3 PARTY B must always comply with all laws and regulations binding the items related to construction of Party A.
7.4 PARTY B should be responsible for cleaning up the work site of the construction in the scope of work of PARTY B and during construction, this provision remains unchanged in the construction area designated on site until the completion of the construction work, the waste generated during the construction process, the equipment must be cleaned by PARTY B.
Article
8 - Working Platform on Construction Site
8.1 Party A conducting the infrastructure construction allows PARTY B to use corridor safe operation and construction working platform for stressing strand.
8.2 Party A will support working space and remove of obstructions, equipment and materials of Party A so that PARTY B s work can be carried out without hindrance.
Article
9   Equipment of PARTY B
PARTY B s strand stressing equipment is tested by an independent testing agency. PARTY B must provide a copy of the Certificate of inspection to Party A before construction implementation and the original for comparison.
Article
10   Equipment of Party A
Party A will support PARTY B on working site to allocate warehouse, temporary office during the construction. Party A permits PARTY B to use free of charge the equipment such as cranes, pulleys to transport post tensioning materials, construction equipment, PARTY B s personnel and utilities within the construction site for purpose of working.
Article 11 - Tests  
Tests shall be carried out with the followings cases:
- Strand test: Strand shall be tested for each 20 tons for one sample with 3 strands taken from nominated strand coil by Consultant/ Owner; in accordance with standard ASTM A416, Grade 270 Ksi.
- Grout test: Test for comprehensive strength of grout in accordance with standard EN447:2007. For each post tensioning slab, one sample with 3 cube of grout shall be prepared for test.
- Expense for any other test, except for these tests mentioned above shall not be Party B's responsibility.
- In case Party A find out a lab to test strand in Cambodia, Party B shall use that lab to test the strand in the presence of Party A. Otherwise, Party B shall submit the testing result in Vietnam in accordance ASTM A416, Grade 270 Ksi.
Article 12 - The Scope of Law
The contract shall be interpreted and applied in accordance with domestic law of the Kingdom of Cambodia and any disputes under this contract should be submitted to arbitration.
Article 13 - Work site Security and Safety.
13.1 Safety & Security Regulations at construction site will be proposed by Party A to ensure that the construction work is implemented safely. PARTY B is required to carry out the construction work under the Contract in accordance with the above regulations.
13.2 During the construction process PARTY B must think highly of health issues and the safety of all workers at the site as well as the impact on residential neighborhoods.
Article 14 - Solution to Dispute
In case of a dispute the parties to the contract must be resolved by amicable agreement in a spirit of cooperation within 60 days since notified by one party. If during this time the dispute is not resolved, the matter will be referred to an arbitration commission at the Council of Kingdom of Cambodia. And any judgment of this Court is a final decision binding on both parties. The offending party shall bear all costs of disputes as well as all associated costs.
Article 15   Insurance
PARTY B is responsible for accident insurance for all employees that are hired by PARTY B to work on site. The different types of insurance for construction site are not the responsibility of PARTY B.
Article 16   Warrantee
The warranty period is 01 years from the completion of the grouting work for post tensioning tendon of the last slab. Warranty obligations are secured by bank guarantees equivalent to 5% of the contract value. After 12 months since the date of the warranty in effect, the amount of this warranty is refunded for PARTY B.
During the warranty period, any incident occurring are the responsibility of PARTY B, PARTY B will be notified by Party A and is obliged to submit plan for reparation within three (03) working days.
Article 17 Force Majeure
"Force majeure event" is a case in any of the followings: To be prohibited or delayed by law or by any competent public authority, rebellion, war, national emergency Date (whether declared or undeclared), terrorism, sanctions, epidemics, fires, floods, earthquakes, hurricanes and other natural disasters circumstances beyond the reasonable control of the people.
A party that cannot carry out their duty according to the contract because of force majeure shall immediately notify the other party in written detailed notice about the above causes. Construction time is expected to be extended for a period equal to the time delayed caused by the above reasons.
Article 18  Construction progress and Arising
because of extension of construction progress.
PARTY A have to inform date finished flat slab and boundary forms work
to PARTY B 
PARTY A provide construction within 3 days to PARTY B in detail below: 
If PARTY B construction does not guarantee the schedules as required schedule by Party A as following:
1. Process and install PC strands
2. Process and install live end anchorages
3. Process and install dead end anchorages
4. Process and installation tendons, including
bearings fitted to the strand
5. Stretch all PC strands following design
specifications
6. Inspect alignment and distribution of tendons following design specifications
PARTY B have to completed, Stressing and Grouting injected within the
days as below,       The detail plan as
below:
      - MC Finished casting
concrete floor slab at day 1ST
      - MC finished removing
formwork at concrete slab edge at day 2ND
      - Namcong finished remove
recess former and install anchor-block at day 3RD
      - TDC should test concrete
at day 3.5RD 
      - Namcong shall start
stressing work at day 4TH (If concrete reach its strength for               stressing work ) and finish stressing work at
day 5TH
      - Namcong finished cutting
extruding strand and fill mortar at day 6TH
      - Namcong shall finish
grouting work at day 7TH AND 8TH
PARTY B have to submit all documents and working reports after 1 day
PARTY
B shall pay a penalty of 0.20% of Contract Value (USD)/ calendar day (for 1
delayed
day IF THIS AFFECT TO GENERAL SCHEDULE), and the total value for this
penalty
does not exceed 10% of the total contract value.
Master
Schedule Casting Concrete Timeline as below :
Master
schedule shall be prepare by Main constructor ( MC) and provide to Party B
(Site
team)
for all floor.
Detail
schedule of each floor (next floor) shall be prepare by MC and provide to Party
B
after
finished casting concrete this floor at day 4th.
Note : This schedule must be complied
by all parties, if there is any case or changing schedule by 
          MC or other Parties .It may affect to the
site scheduled, PARTY B is not responsible for 
          penalty.
Article
19  Change of material's origin
PARTY B will provide materials with has origin strictly complying with the contract. In case Party A requests to change the origin of the materials as agreed in the contract, the contract value shall be adjusted. PARTY B will submit for contract adjustment for Party A to review and approve. Changes of origin of the materials shall be made only after approval by Party A for contract modification.
Party A must implement extra payment for PARTY B the amount of 10% of the value of the materials as required in the contract, If there is any changes of material origin after delivered.
Article
20  Contract Value
Contract
value: 
Estimated value of contracts
that Party A pays to PARTY B for PARTY B s work in this project is 165,019.04USD (In words: One hundred sixty five thousand nineteen
US Dollars and four cents).
This Contract value is the value of implementation post tensioning slab for this construction, with the estimated area of slab 9,594.13 (m2).
Value of each payment and the contract value is based on the actual area on site for 10 floors slab. Fixed unit price is applied for the entire progress.
When arise any other works beyond 10 slabs of the construction, the arising value shall be agreed between Party A and PARTY B and an appendix shall be made before PARTY B conducts the arising work.
Article
21  Term of Implementation and Contract Validity
Contracts are conducted when PARTY B receives the advanced payment as per this contract.
The period of time for PARTY B to deliver post tensioning material (strand, anchorage, and duct) to the site is expected to be within 30days after the contract signed.
Any modification, change in the contract must be made in writing document and signed by both parties to have legitimacy.
This contract was made into 02 copies, which have the same legitimacy, each party keeps 01 copy.
FOR AND ON BEHALF OF PARTY B      FOR AND ON BEHALF OF PARTY A
                              Mr.                                                                 Mr.                                                                                   
                                                                  
        NGUYEN HUU DUNG                                           KHUY
ON
                                          
APPENDIX
A
Contract value and Term of payment
- Contract value:
 
-     
Volume                                   :
9,594.13 total Area (m2)
-     
Total Amount                         :
165,019.04USD
In words                                  : One hundred sixty five thousand nineteen US Dollars 
                                                   and four cents.
-     
Detailed
quotation      
| 
   Items  | 
  
   Unit Price    | 
  
   Total Area of slab (m2)  | 
  
   Total Amount   | 
 
| 
   - Main materials  | 
  
   9.3  | 
  
   9,594.13  | 
  
         89,225.41  | 
 
| 
   + PC Strand   Origin Thailand  | 
 |||
| 
   + Live End Anchorage    Origin Thailand (For strand 12.7 mm, following BSEN
  13391)  | 
 |||
| 
   +Dead End Anchorage Holding (H).  | 
 |||
| 
   + Duct   Origin Thailand + Delivery cost  | 
 |||
| 
   Service:  | 
  
   7.9  | 
  
   9,594.13  | 
  
         75,793.63  | 
 
| 
   Total :  | 
  
   165,019.04  | 
 ||
*Notes:- The total value is based on the total area in Appendix C
            Term of payment:
2.1       Advance payment:
Within 07-10days from the contract is signed, Party A shall implement the advance payment of 20% contract value for PARTY B equivalent to the amount: 33,003.81 USD (In words: Thirty three thousand three US Dollars and eighty one cents.)
Payment document:
Application of payment
2.2           
Process
payment:
After
completed stressing work for each floor of the project, Party A will pay 8% of contract
value within 7days.
Note
: The payment for each floors must follow the area of final
structural drawing and according to actual work at construction site.
      Payment document:
Application of payment.
Checking and transferring document for completion of installation work of each floor requesting for payment.
Table of completed works (approved by Board of site managers from Party A)
     3.    Warranty
Terms:
A guarantee letter shall be submitted upon project completion of PARTY B, which is secured by bond warranty equivalent to 5% of contract value and in the duration If warranty is 01 year from the date of Post Tension work completion.
APPENDIX
B
SCOPE OF WORK
| 
   | 
  
   SCOPE
  OF WORK  | 
  
   Implementation  | 
 ||
| 
   MC  | 
  
   PTC  | 
  
   Investor  | 
 ||
| 
   | 
  
   1 SUPPLY   | 
  
   | 
  
   | 
 |
| 
   1.a  | 
  
   Provide construction materials
  including strands and grouting equipment. Transportation of materials and
  equipment to construction site.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   1.b  | 
  
   Handle and storage of post tensioning materials on construction site.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   | 
  
   2 INSTALLATION  | 
  
   | 
  
   | 
  
   | 
 
| 
   2.a  | 
  
   Process and install PC strands.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.b  | 
  
   Process and install live end
  anchorages.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.c  | 
  
   Process and install dead end anchorages.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.d  | 
  
   Process and installation tendons, including bearings fitted to the strand.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.e  | 
  
   Inspect alignment and distribution of tendons following design specifications.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.f  | 
  
   To be provided process and installation service of
  steel reinforcement, bottom and top reinforcement of reinforced steel
  anchorage and non-pre-stressed steel.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.g  | 
  
   Stretch all PC strands following design specifications.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.h  | 
  
   Grout all tendons following design specification.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.i  | 
  
   Provide technical staff and construction workers for post tensioning installation.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   2.j  | 
  
   To be provided electricity, water and lighting (no charge for NCPT).  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   2.k  | 
  
   To be provided cranes and hoists for the transportation of construction material.  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   2.l  | 
  
   To be provided floor operations (minimum width 1.2m.)  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   2.m  | 
  
   Make hole on the formworks on the side of the slabs  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   2.n  | 
  
   Provide and install reinforcement rebar at live end and dead end anchorage  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   2.o  | 
  
   Fill mortar for holes on the side of the slab after Party B cut off the strand, to prepare for grouting work. (MC will provide material)  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   | 
  
   3 TEMPORARY OFFICE  | 
  
   | 
  
   | 
  
   | 
 
| 
   3.a  | 
  
   Support in the storage of materials. Specifically, PARTY B to be allocated an area for storage space.  | 
  
   √  | 
  
   | 
  
   | 
 
| 
   3.b  | 
  
   Provide office machines, photocopiers, fax machines PARTY B use.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   3.c  | 
  
   Temporary accommodation for post
  tensioning construction staff  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   | 
  
   4 MATERIALS  | 
  
   | 
  
   | 
  
   | 
 
| 
   4.a  | 
  
   Provide post tensioning method statement for approval from engineering supervisors.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   4.b  | 
  
   Provide post tensioning design for approval from engineering supervisors.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   4.c  | 
  
   Provide Certificate of Quantity/Quality of PC Strands.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   4.d  | 
  
   Report the results of construction at the site including installation of strands and tendons, stressing the strands and Grouting.  | 
  
   | 
  
   √  | 
  
   | 
 
| 
   4.e  | 
  
   File a certificate of inspection.  | 
  
   | 
  
   √  | 
  
   | 
 
Note:               MC: Main
Contractor is the contractor for execution of steel and concrete 
                        PTC: Party
B (Post Tension Contractor) for post tensioning work
                        Investor:
Party A shall coordinate with MC to implement the scope of work as per this                      Appendix B
APPENDIX C
Table 1: Detailed of PT Slab Area
| 
   No.  | 
  
   Floor Name  | 
  
   Number of Floor  | 
  
   Area/Floor (m2)  | 
  
   Total Area  | 
 
| 
   1  | 
  
   Level 11  | 
  
   1  | 
  
   1,104.08  | 
  
   1,104.08  | 
 
| 
   2  | 
  
   Level 12  | 
  
   1  | 
  
   1,104.82  | 
  
   1,104.82  | 
 
| 
   3  | 
  
   Level 13  | 
  
   1  | 
  
   1,103.23  | 
  
   1,103.23  | 
 
| 
   4  | 
  
   Level 14  | 
  
   1  | 
  
   1,104.84  | 
  
   1,104.84  | 
 
| 
   5  | 
  
   Level 15  | 
  
   1  | 
  
   1,088.18  | 
  
   1,088.18  | 
 
| 
   6  | 
  
   Level 16  | 
  
   1  | 
  
   1,103.02  | 
  
   1,103.02  | 
 
| 
   7  | 
  
   Level 17  | 
  
   1  | 
  
   1,104.65  | 
  
   1,104.65  | 
 
| 
   8  | 
  
   Level 18  | 
  
   1  | 
  
   1,104.84  | 
  
   1,104.84  | 
 
| 
   9  | 
  
   Level Roof 1  | 
  
   1  | 
  
   394.54  | 
  
   394.54  | 
 
| 
   10  | 
  
   Level Roof 2  | 
  
   1  | 
  
   381.93  | 
  
   381.93  | 
 
| 
   TOTAL  | 
  
   10  | 
  
   | 
  
   9,594.13  | 
 |
Notes:    - Total area of Post-tensioning slab is calculated on the
final structure drawing.
               -
There is any arising work, both parties will discuss and make appendix for the
arising                value.
- Nominal diameter of the strand: 12.7 mm.
- Nominal weight of strand is 0.785 kg / m.