CONTRACT AGREMENT

This agreement is made on 8th day of September, 2010 between the Safeena Sugar Mills Lalian through its General Manager (hereinafter called “The Owner” of the first part and Professional Construction Services (Pvt) Ltd, Lahore through its Chief Executive (hereinafter called “The Contractor” of the second part. WHERE AS the owner is desirous of construction of of Houses, roads, Water supply, sewerage in the colony at Safeena Sugar Mills and has accepted the price offered by the contractor for construction, completion and maintenance of such work. NOW, THEREFORE, it is hereby agreed as follows:- The owner is hereby covenant to pay to the contractors in consideration of the construction, completion and maintenance of the works in the manner prescribed in the contract agreement and the contractors hereby covenant in consideration of payment made by the owner for construction, completion and maintenance of the works in the conformity with the provision of this contract. The works will be carried out by the contractor on the drawings prepared by the owner, on the BOQ provided by the owner or his authorized officer. However, the contractor has quoted item rates price including all materials, labour, shuttering, scaffoldings etc. and all T&P required for the construction, completion and maintenance of all development works. The work will be executed as per drawings supplied by the owner. The responsibility for the adequacy and accuracy of the drawings shall rest with the owner. The civil works shall be shall be designed by the contractor on ACI, British Standard Code of Practice. 1 The prices have been submitted for item rates contact on the basis of BOQ given by the Owner. The Terms and conditions already floated along the BOQ are also part of the Agreement. 2 That the owner will allow the contractor to work day and night shifts and will also arrange the supervision during night hours. 3 That 10% security will be deducted from each running bill to be released after nine months from the completion date of work. If the work not completed within stipulated period security/retention money will be forfeited. 4 That the Owner shall supply the following materials at site at the following fixing rate and the increase or decease in rates will be on owner’s account, the cost of material so supplied shall be recovered from each running bill proportionately according to the consumption at site, Sales Tax (if any) shall be paid by the contractor on actual basis. OPC Cement, S.R & White cement Rs. 300/- Per Bag delivered at site. Deformed Steel 60 grade. Rs. 65000/- Per Ton delivered at site. 5 If any clause of this contract the contractor is in beach and has therefore, rendered himself liable to pay compensation amounting to whole of his security deposit, the owner or his authorized officer shall have to power to adopt any one of the following courses. a) To rescind the contract of which recession in writing to the contractor under the hand of the owner or his authorized officer shall be conclusive and in which case the security deposit of contractor shall stand forfeited and shall be absolutely at the disposal of the owner or his authorized officer. a) To get the work executed through other sources and if any amount exceeds Than it would have been carried out by other contractor the excessive amount thus incurred will be recovered from original contractor. b) In the event of any above courses being adopted by the owner the contractor shall have no claim to compensation for any loss sustained by him by reason of his having purchased or procured any material or entered into any agreements or made any advances or account of or with a view to the execution of the work or the performance of the contract. 6 Without prejudice to the right of the owner under any clause hereinafter contain on completion of the work the owner or his authorized officer shall furnish the contractor with a certificate of completion but neither such certificate shall be given nor shall be work considered completed until the contractor shall have removed from the premises on which the work shall be executed all scaffolding, surplus material and rubbish and cleared all wood work, door, windows, walls, floors or other parts of any building in upon or about which the work is to be executed or of which he may have had possession for the purpose of execution thereof and measurement in the said certificate shall be building and conclusive against the contractor. 7 The contractor shall execute the whole and every part of the work in the most substantial and workman like manners and in strict in accordance with the specifications. 8 The owner or his authorized officer shall have full power at all time to object to the employment of any workman or other employee on the works by the contractor and if the contractor shall receive notice in written from the owner (or his authorized officer ) asking for removal of any workman or other employee on the works by the contractor the shall comply with same forthwith. No such person, workman, foreman or other employee after his removal from the work at desired the owner ( or his authorized officer ) shall be re-employed or reinstated on the work by the contractor at any time excepted with prior approval in writing of owner ( or his authorized officer ). The contractor shall not be entitled to demand the reason from the owner ( or his authorized officer ) for requiring the removal of any such employee in this regard. 9 The owner or his authorized officer shall have power to make any alternation, addition to or substitution for the original specifications, drawings, designs and instructions that may appear to him necessary or advisable during the progress of work and contractor shall be bound to carry out the work in signed by the authorized officer and such alternations, omissions, additions or substitution shall not invalidate the contract, the extra shall be paid separately at the agreed rates. For Non BOQ Items , the rate analysis of extra items should be approved from the competent authority before executing at site. 10 All works under or in course of execution or executed in pursuance of the contract at all times be opened to the inspection and supervision of the owner’s authorized officer and his subordinates and the contract shall, all times during the usual working hours and at all other times of which reasonable notice of intention of the authorized officer and subordinate to visit the works shall have been given to the contractor, the letter shall either himself be presented at site or some responsible agent shall be considered to have the same force as if they had been given to the contractors himself. 11 The contractor shall give not less than five days notice in writing to the authorized officer or his subordinate in charge of the work before covering up or otherwise placing beyond the reach of measurement any work in order that the same shall be uncovered at the contractor’s expense and in default thereof, no payment or allowance shall be made for such work or the material with which the same was executed. 12 If the contractor, his agents, employees or workmen shall deface injure or destroy any part of building in which they may be working or any building, road, fence enclosure or grass land, cultivated ground contagious to the premises in which the work or any part of it is being executed or, if any damage shall happen to the work while in progress from, any cause whatever or any imperfection appears in it within twelve months after final certificates or otherwise of its completion shall have been given by the authorized officer as aforesaid the contractor shall make good the same at his own expense or in default the authorized officer may cause the same to be made good by other workmen and deduct the expenses ( of which the certificate of the authorized officer shall be final ) from any sums that may be then or at any time therefore may become due to the contractor or from his security deposit. 13 The contractor shall also provide all necessary fencing and lights required to protect the public from accident and shall bound to bear the expenses of defense or every suit action or other proceeding at law that may be brought by any person for injury sustained owning to neglect of the above precautions and to pay away damage and costs which may with the consent of the contractor be paid to compromise any claim by any such person 14 No person below the age of 18 years shall be employed on the works as a labourer. 15 The contractor shall pay his labourers not less than the wages paid for similar work in the neighborhood. 16 The contractor will be responsible for the payment of EOBI & social security contribution 17 In every case in which by virtue of the provision of section 1 sub section (1) of the workmen’s compensation Act, 1923 owner is obliged to pay compensation to a workmen employed by the contractor or in execution of the works, the owner may, without prejudice to his rights make payment and shall be at liberty to recover such amount or any part thereof by deducting it from the security deposit or from any sum due by the owner to the contractor whether under this contract or otherwise the owner shall not be bound to contest any claim made against it under section 12, sub section (1) of the said act except the written request of the contractor and upon his giving to owner full security for all costs for contesting such claim. 18 The contractor shall not be assigned or sublet without the written approval of the owner or his authorized officer and if the contractor shall assign or sublet his contractor or attempt so to do or become insolvent or commence any insolvency proceeding to make any compromise with his creditors or attempt to do so, or if any bride gratuity, gift loan, perquisites, reward or advantage, pecuniary or otherwise, shell either directly or indirectly be given promise or offered by the contractor or any his servant or agents to any officer of the owner or person in the employment of owner in any way relating to his office or employment or if any such of officer or person shall become in anyway directly or indirectly interested in the contract, the owner may be there upon by notice in writing rescind the contact and the security deposit of the contractor shall there upon stand forfeited and he absolutely at the disposal of owner and the same consequences shall ensure as if the contract had been rescinded under clause 5 thereof and in addition the contractor shall not be entitled to recover or paid for any work thereof actually performed under the contract. 19 All sums payable by way of compensation under any of these conditions shall be considered as reasonable compensation to be applied to the use of owner subject to the actual loss or damage sustained and not beyond the same. 20 Any excess payment made to the contractor inadvertently or otherwise under this contract or any other sum found to be due to the owner by the contractor in respect of this contract or work, on any, account whatsoever may be deducted from any sum whatsoever payable by the owner to the contractor in respect of this contract. 21 All work to be executed under the contract shall be executed under the direction and subject to the approval in all respects of the owner or his authorized officer for the time being who shall be entitled to direct at what point or points and in what manner they are to be commenced and for what time to be carried on. 22 No claim for payments of an extra ordinary nature such a claims for bonus, for extra labour, employed in completing the work before the contractual period or claims for compensation where work has been temporarily brought to a standstill through no fault of the contractor shall be allowed unless and to the extent that the same shall have been expressly sanction by the Chief Executive of Safeena. If a dispute arises between the authorized officer and the contractor, the case will be referred to the Chief Executive of Safeena, whose decision will be final and binding on the parties. 23 The expression “work” or “works” where used in these conditions shall, unless there by the something either in the subject or contract repugnant to such constructions be contracted and taken to mean the work by or by virtue of this contract contracted to be executed whether temporary or permanent and whether original—altered substituted or additional 24 The amount payable or deduct-able in respect of item No. 4 shall be calculated on the basis of the quantity of the item actually consumed on the works during the fortnight. 25 No escalation /price variation shall be allowed to the contractor 26 If during the course of execution of this civil work, any dispute arises between the parties / signatories of this agreement, then the decision of Chief Executive of The Safeena Sugar lalian would be final and binding on both the parties. 27 The contractor will give an undertaking for the best workmanship and the quality construction. If any thing goes wrong due to bad workmanship, same value shall be deducted from the contractor account. 28 The terms & condition of his agreement have been explained to me / we and I/we clearly undersigned the same, the rates quoted by the contractor shall be for complete job. a) Royalty, compensation, Octroi, Toll Terminal, sale and account. b) Fluctuation of prices in material and labour due to any cause. c) The contractor will make his own arrangements of plant and machinery required for the execution of work. If he intends to use plant and machinery belonging to the owner, he shall have to pay hire-charges of plants and machinery thus issue from the Godown to site of work and return thereof to Godown in good running conditions. So long the plant and machinery remain with the contractor he shall be responsible for the payment on account of oil/lubricants / fuel wood and all establishment required for its running. d) Recovery of outstanding dues from the contractor shall be affected through civil authorities if the contractor does not make good or escape recovery. 29 The scope of work can be increased or decreased according to the requirements and this would not invalidate the contract but contractor price shall stand increased / decreased proportionately and decision of Executive Director of Safeena Sugar Mills Lalian shall be final and binding on contractor 30 That 5% Mobilization Advance will be given against the Bank Guarantee which will be recovered @ 5% of the gross amount of each running bill. 31 The BOQ , General Terms and Conditions and specifications are also part of the Agreement. In witness whereof the parties have set their hands in this 8th day of September, 2010 and their respect seals. _____________________ _____________________ Engr.M.Sadiq Qammar General Manager, Chief Executive, Safina Sugar Mills, Lalian ProfessionalConstruction Services (Pvt) Ltd, Kalma Chowk Lahore. Witnesses: 1._______________________ 2._______________________ To, Professional Construction Services (Pvt) Ltd , 8-Groud Floor, Akbar Market,Kalma Chowk, 2-L Gulberg-III Lahore. Subject:- CONSTRUCTION OF HOUSES, ROADS, WATER SUPPLY, SEWERAGE IN THE COLONY AT SAFEENA SUGAR MILLS LALIAN. It is informed that your competitive bid to Rs.4,30,00,000.(forty three million) for the work cited in the subject is accepted . Please treat this letter as intent to place order upon you to commence the work with in 03 days after receipt of this letter of intent. If the work is not started by the stipulated period, the work order will be automatically treated as cancelled. The time period for the completion of this work is 9 months only. You are advised to mobilize to the site of work with necessary labour, material and tool and plant to start the work under intimation to this office. This letter of intent with you acceptance of the same and your tender shall form an integral part of contract. Necessary construction drawings may please be collected from this office. Please contact this office for taking over the site. Please sign the copy of the letter enclosed herewith as a token of acceptance of this letter of intent and return to this office for record. General Manager, Safina Sugar Mills, Lalian Signature____________________________ M/S__________________________________