SERVICE CONTRACT

CONTRACT TITLE: FEASIBILITY STUDY AND DESIGN OF TELEF SMALL SCALE

IRRIGATION SCHEME.

This contract is made and entered between the Lutheran World Federation
Ethiopia whose address is Addis Ababa, Arada Sub City, District 06, House
No. 910A, Tel No.0111550308, hereinafter referred to as the “Contracing
Authority”
and
Amare and Families Consulting Engineers PLC whose address is Addis Ababa,
CMC Michael, Guji Building, 7th floor, Room No. 701, Tel No. 0911-526266,
hereinafter referred to as the “Contractor”, have agreed as stipulated in the
attached document.

The contract is elaborated in English in 2 originals, one original being for the
Lutheran World Federation (Contracting Authority) and one original being for
Amare and Families Consulting Engineers PLC

For Lutheran World Federation For Amare and Families Consulting

Engineers PLC

Name: Sophia Gebreyes Name: Melkamu Amare

Title: Resident Representative Title: General Manager

Signature: Signature:

Date: 22 February 2025 Date: 22 February 2025

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 SERVICE CONTRACT

Special Conditions

A.1. Scope of Supply and Delivery

The subject of this Contract is to conduct feasibility studies and detail design for Telef small
scale irrigation scheme in Dibiko Kebele, Lasta Woreda, North Wolo Zone, Amhara National
Regional State.

A.2. Commencement and expiry date of the contract

The work shall commence upon signature of this Contract by both parties and to deliver
the final report on 7 March 2025.

A.3. Responsibilities of the Contractor (Consultant)

General:
a) Deploy the required technical persons-qualified professional Water supply Engineer with
experience in hydrology, Professional civil/structural Engineer and surveyor (as listed
below-section 4)

b) Mobilize standard tools and equipment for the survey work (as listed below-section 7,
except Total station which will be facilitated by LWF)

c) Air ticket to/from Lalibela to the staff to be deployed by the consultant

d) Covers all expenses for data collection, analysis and sampling.

e) Covers all expenses required for the study and for the deployed team (other than
stipulated under the LWF side, stated on 3.2)

A.3.1. Data collection

The consultant should collect, screen and analyse primary and secondary data. The data should
base on previous studies in the area, project document, users’ profile, command area,
hydrological, meteorological, topographic, maps, and geotechnical and soil data. It should also
include qualitative and quantitative data on the agronomic practices, possible risk factors and
mitigation measures, operation and maintenance practices of small scale irrigation facility and
future projections after the scheme development. All the available data should be analysed
with standard procedures and utilized for the construction of most feasible and efficient gravity
fed irrigation scheme development.

A.3.2. Hydrological Analysis

a) Undertake hydrological analyses such as rainfall-runoff modelling to estimate design
floods for hydraulic designs

b) Determine the flow duration curves to facilitate the design of hydraulic structures;

c) Adopt appropriate hydrological modelling techniques to derive the required design flows
and other hydrological information from the nearest available gauging stations and
rainfall records, where sufficient hydro-meteorological data are not available;

d) Assess the spatial and seasonal fluctuations of climatic variables on the hydrological
characteristics for the project options;

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 SERVICE CONTRACT
e) Assess the effects of the proposed irrigation diversion on existing uses; and

f) Undertake flood routing through the downstream channel and floodplain for design of
flood control measures.

A.3.3. Sediment Analysis

a) Assess the sediment regime and total sediment transport of the river system in the
proposed stream. This will include determination of the sediment (suspended and bed
load) yield.

b) Analyse the sediment transport for structural design of the irrigation scheme

A.3.4. Site Surveying:

a) Carry out topographic survey with appropriate contour intervals for use in planning and
capturing specific site features such as the proposed axis, energy dissipation area,
inundation extent, surface area-volume-depth relationship, river channel profiles, and
location of proposed intake for irrigation and water supply.

b) Conduct detailed topographic surveys of the command area and diversion weir site to
understand the terrain and identify any potential challenges for water distribution (e.g.,
slopes, obstacles).

c) Conduct a detailed topographic survey of the canal route to determine elevations,

slopes, and potential challenges in the terrain. This step will help in deciding the most
efficient canal alignment.

d) Profile and Cross-Section Analysis: Develop longitudinal profiles and cross-sections of

the proposed canal route, which are essential for understanding how the canal will
interact with the land and help to determine the required slope, canal depth, and width.

A.3.5 Irrigation Water Analysis

a) Determine the irrigation water demand for the entire area based on crop types,
climate, and soil properties, and compare this with available water from the weir.
b) Measure the discharge at the headwork/intake location, using appropriate methods.
c) Evaluation of potential crops and cropping patterns, soil, climate factors
d) Evaluation of irrigation water requirements;
e) Assess if the available water is sufficient for the proposed irrigation needs
throughout the year.
f) Conduct the water quality testing to determine irrigation standards. (e.g., salinity).

A.3.6. Design of Weir and Diversion Structure

a) Weir Design:
Design the weir structure to ensure proper diversion of water from the source into the
irrigation system. The weir should be able to handle seasonal fluctuations in water flow
while minimizing sediment build-up. Carry out structural and hydraulic designs of the
weir components including foundations and abutments, energy dissipating works,
retaining walls, river diversion works, intake, bottom outlet and gates, outlet works, and
components considering both structural and hydraulic safety;

b) Diversion System:
Design the diversion structure to manage the flow from the weir to the canal,
incorporating elements such as intakes, settling basins, and screens to remove debris.

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 SERVICE CONTRACT
c) Control Structures:
Design structures like head regulators, flow control gates, turnouts, and check
structures to regulate and control water flow throughout the system.

d) Canal:
Design of appropriate cross section for canal including crossing structures and
associated structures.

e) Axillary Buildings:
Design for temporary warehouse. The Consultant shall prepare the layouts and drawings
of the different project components using AutoCAD software.

A.3.7. Geological and Geotechnical Assessment:

Geological investigations will be based on geological map of the area, test pit and geological
data and/or geophysical assessment available from previous structures on the stream. Based
on this, Geotechnical Assessment: Assess the soil types and stability along the head work to
analyse the bearing capacity of the foundation and canal route, as well as the potential for
erosion or sediment deposition, which will inform the structural design of the canal.

a) Determine the geological conditions of the weir foundation, abatements to

b) Analyse the characteristics of the foundation soils/rocks and the bearing capacity.

c) Conditions such as faults that may influence design, construction, and long-term
operation;

d) Suggest on the availability and type of construction materials on site-hard core, stone
and sand.

A.3.8. Soil condition:

Assess soil characteristics within the command area to understand water retention, drainage,
and suitability for irrigation methods:

a) Preparation of Bill of Quantity (BOQ) and Cost Estimation

I. Prepare specifications for all components, works and sections of the scheme

II. Prepare the Bill of Quantities with standard templates

III. Prepare Cost estimation with standard unit rate analysis and in consideration
with the actual market prices and standard construction practices.

A.3.9. Construction Schedule

a) Prepare work methodology and work schedule for the construction of the small-scale
Irrigation

b) Suggest the labour, material and equipment scheduling.

A.3.10. Risk Assessment and Mitigation Plan

a) Identify potential risks associated with the project, such as water scarcity, flooding, or
construction delays.

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 SERVICE CONTRACT
b) Propose measures to minimize risks and ensure the project is completed successfully
and sustainably.

A.3.11.Operation and Maintenance Plan

Operation Guidelines: Outline the operational aspects of the system, including water
scheduling, monitoring, and control of the distribution system. Maintenance Procedures: Detail
maintenance activities such as canal cleaning, equipment repair, monitoring of water quality,
and structural inspections.

A.3.12 Design Report

The Consultant will prepare and submit the design report (as indicated on section A.11 below)

A.3.13. Responsibilities of Contracting Authority (Lutheran World Federation)

a) Deploy the necessary daily labours for surveying work (peg holders, instrument
mobilizers…) including local materials (peg, ink…)
b) Facilitate surveying Instrument (Total station) at Field level.
c) Deploy labours for trial pits excavation to assess surface conditions and field tests.
d) Facilitate transportation service from Lalibela Airport to Lalibela town and vise versa.
LWF will deploy a vehicle for the entire work on the specific site.
e) Supervise the work in collaboration with Woreda stakeholders and local
administrations for necessary support required.
f) Provide the available hydrology data- (maximum and minimum temperature, rainfall,
wind speed, humidity)
g) Facilitate per diem for the governmental stakeholder and daily labors who can assist
the surveying work
h) Social and Environmental Impact Assessment for the proposed irrigation scheme
development.

A.4. Price and Payment

The Contracting Authority shall pay a total of ETB 542,196.25 (Five Hundred Forty-Two
Thousand One Hundred Ninety-Six and Twenty Five cents) inclusive of 15% V.A.T which covers
all obligations of the Contractor under the Contract.

Mode of payments: The payment will be made in two instalments:

 The first 30% will be made after signing of this contract agreement
 50% second payment will be made upon submission of the draft final report including all
the required documents listed on A.11 above. The payment is released based on the
review and approval of LWF Program unit.
 The final 20% will be made up on submission of the final report in both soft and hard
copies to the satisfaction and acceptance of LWF.

A.5. Delay in Implementation

No extenstion of the completion deadline shall be granted under any circumstances.The
consultant is subjected to 0.5% of the contract amont liquidation for dalay to the contractor
and the maximum limit for liquidation will not exceed 10% of the total contract price.

A.6. Performance garentee

The Performance Guarantee shall be held against payment to the Contracting Authority for any
loss resulting from the Consultants failure to perform his contractual obligation fully and
properly. The Performance Guarantee shall be issued in the form of a banker's draft, a certified
cheque. The amount the Guarantee shall be 10% of the total contract amount that is of ETB
54,219.25(Fifty four thousand one hundred nity six and 25/100 cents)

A.7. Tax

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 SERVICE CONTRACT
The Contracting Authority shall have no obligation or responsibility in connection with taxes or
levies payable by the Contractor in its country of establishment or in the beneficiary country
with its performance of this contract.

A.8. Entry into force and duration

The contract shall enter into force and will be effective after signature of this service contract
by both parties and the contract shall remain into force until end of March 7, 2025.

A.9. Language of the contract

The language of the contract and all written communications between the Contractor and the
Contracting Authority shall be English.

A.10. Order of precedence of contract documents

The Contract is made up of the following documents in order of precedence:
1. This Contract
2. The ToR
3. General terms and conditions for service contract Ver.2 2012
4. The Code of Conduct for Contractors

The various documents making up the Contract shall be deemed to be mutually explanatory; in
case of ambiguity or divergence they should be read in the order in which they appear above.

A.11. Presentation:
The Final Report
The consultant shall document the study and detail design in a report, both in soft and hard
copies. The principal features of the feasibility study and detail design shall include the
objectives and background of the work and the consultant has to make sure that the following
parts are incorporated in the final report.
1. Executive Summary
2. Details of the methodology and tools applied
3. Feasibility study-summary of site condition, water availability and project viability
4. Hydrology Study report-rainfall, runoff, analysis, flood frequency and design flood
analysis
5. Geological and geotechnical report-soil and rock conditions, foundation stability and
seepage risks
6. Engineering Design reports:
 Weir Design report-design flow, structure dimension, stability analysis and
material/type selection.
 Canal and distribution design report-alignment, cross-section, profile and hydraulic
calculations
7. Structural design report-analysis for weir, guide wall, stilling basin, retaining wall, canal
structures, crossing structures and others

8. Drawing and plans:

 General layout and plan(showing the weir, canal route and command area)
 Weir structure drawing(plan, elevation, section, reinforcement details)
 Canal alignment and cross sections (longitudinal profile and typical cross-sections at
key structural sections.
 Hydraulic Structures drawing: head regulators, sluice gates, drop structures and
crossings
9. Bill off quantities and Cost Estimates:
 Detail Bill of Quantities
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 SERVICE CONTRACT
 Engineering cost Estimate
10. Work schedule and Implementation plan:
 Construction schedule(Work breakdown structure and timeline)
 Implementation plan(Construction methodology, quality control measures and safety
guidelines)
11. Operational and Maintenance system
12. Risk assessment and mitigation measures
13. Conclusion and recommendation
14. Annex:
 Topographic survey data, Data tables, charts and modeling and work sheets and
assumptions applied for all designs, Working drawings, detail data-hydrology,
geotechnical, sediment analysis, irrigation water analysis, soil condition, water
quality, crop pattern, and other testing and sampling records.
 All drawings shall be submitted in A3 printings-three copies for each design drawings

ANNEX 1
GENERAL TERMS AND CONDITIONS FOR SERVICE CONTRACTS – VER2 2012
1. DEFINITIONS instrumental in the achievement of the contract
In these general terms and conditions: objectives;
a) “Contract” is the agreement entered into by the d) “Beneficiary country” is the country where the services
Contracting Authority and the Contractor for the are to be performed, or where the project to which the
performance of the services described in the terms of services relate is located.
reference, to which these general terms and conditions
are made applicable; the contract is constituted of the 2. RELATIONS BETWEEN THE PARTIES
documents listed in the Service Contract. Nothing contained in the contract shall be construed as
b) The Contracting Authority’s “partners” are the establishing a relation of master and servant or of agent and
organisations to which the Contracting Authority is principal as between the Contracting Authority and the
associated or linked; Contractor. Except if otherwise provided in the contract, the
c) “personnel” is any person assigned by the Contractor to Contractor shall under no circumstances act as the
the performance of the services or any part hereof, representative of the Contracting Authority or give the
whether through employment, sub-contracting or any impression that the Contractor has been given such authority.
other agreement; and “key experts” are those members of The Contractor has complete charge of the personnel and
the personnel whose involvement is considered shall be fully responsible for the services performed by them.
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 SERVICE CONTRACT
The Contractor further warrants that no official of the
3. SCOPE OF SERVICES Contracting Authority and/or their partner has received or will
The scope of the services including the methods and means be offered by the Contractor any direct or indirect benefit
to be used by the Contractor, the results to be achieved by arising from this Contract.
him and the verifiable indicators are specified in the Terms
of Reference. The Contractor shall be responsible for 9. JOINT VENTURE OR CONSORTIUM
everything which is required for the performance of the If the Contractor is a joint venture or a consortium of two or
services in accordance with what is specified in the contract, more legal persons, all such persons shall be jointly and
or which must otherwise be regarded as forming part of the severally bound to fulfil the terms of the contract. The person
services. designated by the joint venture or consortium to act on its
behalf for the purposes of this contract shall have the authority
4. COMPLIANCE WITH LAWS AND RESPECT OF to bind the joint venture or consortium.
TRADITIONS
The Contractor shall respect and abide by all laws and For the purposes of performance of the contract, the joint
regulations in force in the beneficiary country and shall ensure venture or consortium shall act as, and be considered, a single
that its personnel, their dependants, and its local employees person and, in particular, shall have bank account opened in
also respect and abide by all such laws and regulations. The its name, shall submit to the Contracting Authority single
Contractor shall indemnify the Contracting Authority against guarantees if required, and shall submit single invoices and
any claims and proceedings arising from any infringement by single reports.
the Contractor, its personnel and their dependants of such
laws and regulations. The composition of the joint venture or a consortium shall not
be altered without the prior written consent of the Contracting
The Contractor, its personnel and their dependents shall Authority.
respect human rights and undertake not to offend the political,
cultural and religious practices prevailing in the beneficiary 10. INFORMATION
country. The Contractor shall furnish the Contracting Authority or any
person authorised by the Contracting Authority with any
5. CODE OF CONDUCT information relating to the services and the project as the
The Contractor shall at all-time act loyally and impartially and Contracting Authority may at any time request.
as a faithful adviser to the Contracting Authority and shall
perform the services with due care, efficiency and diligence, in 11. CONTRACTOR’S PERSONNEL
accordance with the best professional practice. 11.1. The Contractor shall employ and provide such qualified
and experienced personnel as are required to carry out the
6. DISCRETION AND CONFIDENTIALITY services, and the Contractor shall be responsible for the quality
The Contractor shall treat all documents and information of the personnel.
received in connection with the contract as private and
confidential, and shall not, save in so far as may be necessary 11.2. No changes shall be made in the personnel without the
for the purposes of the performance thereof, publish or prior consent of the Contracting Authority. The Contractor shall
disclose any particulars of the contract without the prior provide a replacement with at least equivalent qualifications
consent in writing of the Contracting Authority. It shall, in and experience and acceptable to the Contracting Authority.
particular, refrain from making any public statements
concerning the project or the services without the prior 12. INSURANCE
approval of the Contracting Authority, The Contractor shall assign vehicle which has comprehensive
motor insurance and registered for the required business. The
7. CONFLICT OF INTEREST contractor has to submit copy insurance document that
The Contractor shall refrain from engaging in any activity which confirms the vehicle insurance renewal to the Contracting
conflicts with his obligations towards the Contracting Authority Authority.
under the contract.
13. RECORDS
8. CORRUPT PRACTICES The Contractor shall keep accurate logbook records on day-to-
The Contractor and the personnel shall refrain from day basis that must be approved by the Contracting Authority
performing, condoning or tolerating any corrupt, fraudulent, or any person authorised and having seal by the Contracting
collusive or coercive practices, whether such practices are in Authority on a monthly basis. A signature verified by a
relation with the performance of the contract or not. “Corrupt signature and seal of the Project Coordination Office at a
practice” means the offering, giving, receiving, or soliciting, monthly basis to effect payments for the service rendered in
directly or indirectly, of anything of value as an inducement or the project sites.
reward for doing or forbearing to do any act in relation to the
contract or any other contract with the Contracting Authority, or 14. CONTRACT PRICE AND PAYMENTS
for showing favour or disfavour to any person in relation to the Contracts are either “global price” or “fee-based”.
contract or any other contract with the Contracting Authority. 20.1. Fee-based contract
The Contracting Authority shall make payments to the
The payments to the Contractor under the contract shall Contractor as per the specified prices mentioned in the
constitute the only income or benefit it may derive in contract, based on the number of days the contractor
connection with the contract and neither it nor its personnel performed the required service on the project.
shall accept any commission, discount, allowance, indirect
payment or other consideration in connection with, or in 15. BREACH OF CONTRACT
relation to, or in discharge of, its obligations under the contract. Either party commits a breach of contract where it fails to
discharge any of its obligations under the contract. Where a
The execution of the contract shall not give rise to unusual breach of contract occurs, the party injured by the breach shall
commercial expenses. Unusual commercial expenses are be entitled to the following remedies:
commissions not mentioned in the contract or not stemming a) Liquidated damages; and/or
from a properly concluded contract referring to the contract, b) Termination of the contract.
commissions not paid in return for any actual and legitimate
service, commissions remitted to a tax haven, commissions In any case where the Contracting Authority is entitled to
paid to a recipient who is not clearly identified or commission damages, it may deduct such damages from any sums due to
paid to a company which has every appearance of being a the Contractor or call on the appropriate guarantee.
front company.

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 SERVICE CONTRACT
The Contracting Authority shall be entitled to compensation for b) The period of suspension of the performance of the
any damage which comes to light after the contract is contract under article 23 has exceeded six months;
completed in accordance with the law governing the contract. c) The Contracting Authority is in material breach of its
obligations under the Contract and has not taken any
16. SUSPENSION OF PERFORMANCE actions to remedy the same within 30 days following the
The Contractor shall, on the request of the Contracting receipt by the Contracting Authority of the Contractor’s
Authority, suspend the performance of the services or any part notice specifying such breach. If the Contractor is a natural
thereof for such time and in such manner as the Contracting person, the contract shall be automatically terminated if
Authority may consider necessary. that person dies.

In such event of suspension, the Contractor shall take 21. RIGHTS AND OBLIGATIONS UPON TERMINATION
immediate action to reduce the costs incident to the 21.1. Upon termination of the contract by notice of either party
suspension to a minimum. During the period of suspension, to the other, the Contractor shall take immediate steps to bring
and except where the suspension is due to any default of the the services to a close in a prompt and orderly manner and in
Contractor, the Contractor shall be reimbursed for additional such a way as to keep costs to a minimum.
costs reasonably and necessarily incurred by it as a result of
the suspension. 21.2. If the Contracting Authority terminates the contract in
accordance with article 19.1 it may, thereafter, complete the
17. AMENDMENT OF THE CONTRACT services itself, or conclude any other contract with a third party,
Substantial modifications to the contract, including at the Contractor’s expense.
modifications to the total contract amount, must be made by
means of an addendum. The Contracting Authority shall, as soon as possible after
termination, certify the value of the services and all sums due
18. COMPLETION CERTIFICATE to the Contractor as at the date of termination. It shall, subject
Upon completion of the services, and once (a) the Contracting to article 28.1 and 28.3, make the following payments to the
Authority has approved the Contractor’s completion report, (b) Contractor:
the Contracting Authority has approved the Contractor’s final (a) Remuneration pursuant to the contract for services
invoice and final audited statement, the Contracting Authority satisfactorily performed prior to the effective date of
shall deliver a completion certificate to the Contractor. termination;
(b) Reimbursable costs (if fee-based contract) for costs
19. TERMINATION BY THE CONTRACTING AUTHORITY actually incurred prior to the effective date of termination;
19.1 The Contracting Authority may terminate the contract (c) Except in the case of termination pursuant to article 26.1
after giving a 7 days' notice to the Contractor in any of the reimbursement of any reasonable cost incident to the
following cases: prompt and orderly termination of the contract;
a) The Contractor is in breach of its obligations under the (d) in case of termination under article 26.2 and 27,
contract and/or fails to carry out the services substantially reimbursement for the actual and reasonable costs
in accordance with the contract; incurred by the Contractor as a direct result of such
b) The Contractor fails to comply within a reasonable time termination and which could not be avoided or reduced by
with the notice given by the Contracting Authority appropriate mitigation measures. The Contractor shall not
requiring it to make good the neglect or failure to perform be entitled to claim, in addition to the above sums,
its obligations under the contract which seriously affects compensation for any loss or injury suffered.
the proper and timely performance of the services;
c) The Contractor refuses or neglects to carry out 21.3. In case of termination of the contract for any reason
instructions given by the Contracting Authority; whatsoever, any pre-financing guarantee which might have
d) The Contractor’s declarations in respect if its eligibility been granted to the Contracting Authority under article 20.4,
(article 33) and/or in respect of article 31 and article 32, may be invoked forthwith by the Contracting Authority in order
appear to have been untrue, or cease to be true; to repay any balance still owed to the Contracting Authority by
e) The Contractor takes some action without requesting or the Contractor, and the guarantor shall not delay payment or
obtaining the prior consent of the Contracting Authority in raise objection for any reason whatever.
any case where such consent is required under the
contract; 21.4. If the Contracting Authority terminates the contract under
f) Any of the key experts is no longer available, and the article 19.1, it shall be entitled to recover from the Contractor
Contractor fails to propose a replacement satisfactory to any loss it has suffered up to that part of the contract value
the Contracting Authority; which corresponds to that part of the services which has not,
g) Any organisational modification occurs involving a change by reason of the Contractor’s default, been satisfactorily
in the legal personality, nature or control of the Contractor completed.
or the joint venture or consortium, unless such
modification is recorded in an addendum to the contract; 22. FORCE MAJEURE
h) The Contractor fails to provide the required guarantees or Neither party shall be considered to be in breach of its
insurance, or the person providing the underlying obligations under the contract if the performance of such
guarantee or insurance is not able to abide by its obligations is prevented by any circumstances of force majeure
commitments. which arise after the date of signature of the contract by both
parties.
19.2 Termination by Contracting Authority for convenience
The Contracting Authority may terminate the contract in whole The term "force majeure", as used herein shall mean acts of
or in part for its convenience, upon not less than 14 days’ God, strikes, lock-outs or other industrial disturbances, acts of
notice. The Contracting Authority shall not use this right of the public enemy, wars, whether declared or not, blockades,
termination in order to arrange for the services to be executed insurrection, riots, epidemics, landslides, earthquakes, storms,
by another contractor, or to avoid a termination of the contract lightning, floods, washouts, civil disturbances, explosions, and
by the Contractor. any other similar unforeseeable events, beyond the control of
either party and which by the exercise of due diligence neither
20. TERMINATION BY THE CONTRACTOR party is able to overcome.
The Contractor may terminate the contract after giving a 7 A party affected by an event of force majeure shall take all
days’ notice to the Contracting Authority in any of the following reasonable measures to remove such party's inability to fulfil
cases: its obligations hereunder with a minimum of delay.
a) The Contractor has not received payment of that part of If either party considers that any circumstances of force
any invoice which is not contested by the Contracting majeure have occurred which may affect performance of its
Authority, within 90 days of the due payment date, obligations it shall notify the other party immediately giving
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details of the nature, the probable duration and likely effect of business activities, are the subject of proceedings
the circumstances. Unless otherwise directed by the concerning house matters, or are in any analogous
Contracting Authority in writing, situation arising from a similar procedure provided
The Contractor shall continue to perform its obligations under for in national legislation or regulations;
the contract as far as is reasonably practicable, and shall seek (b) They have been convicted of an offence concerning
all reasonable alternative means for performance of its their professional conduct by a judgement that has
obligations which are not prevented by the force majeure the force of res judicata;
event. The Contractor shall not put into effect such alternative (c) They have been guilty of grave professional
means unless directed so to do by the Contracting Authority. misconduct proven by any means that the
Contracting Authority can justify;
23. APPLICABLE LAW AND DISPUTES (d) They have not fulfilled obligations relating to the
Any dispute or breach of contract arising under this contract payment of social security contributions or payment
shall be solved amicably if at all possible. If not possible and of taxes in accordance with the legal provisions of
unless provided in the Service Contract, it shall be settled the country in which they are established or with
finally by court decision, which shall be held under the those of the country of the Contracting Authority or
Ethiopian law. those of the country where the contract is to be
performed;
24. CHILD LABOUR AND FORCED LABOUR (e) They have been the subject of a judgement that has
The Contractor (and each member of a joint venture or a the force of res judicata for fraud, corruption,
consortium) warrants that it and its affiliates comply with the involvement in a criminal organisation or any other
UN Convention on the Rights of the Child - UNGA Doc illegal activity detrimental to the Contracting
A/RES/44/25 (12 December 1989) with Annex – and that it or Authority or the European Community’s financial
its affiliates has not made or will not make use of forced or interests;
compulsory labour as described in the Forced labour (f) Following another procurement procedure or grant
Convention and in the Abolition of Forced Labour Convention award procedure financed by the European
105 of the International Labour Organization. Furthermore, the Community budget or following another procurement
Contractor warrants that it, and its affiliates, respect and procedure carried out by the Contracting Authority or
uphold basic social rights and working conditions for its one of their partners, they have been declared to be
employees. in serious breach of contract for failure to comply
Any breach of this representation and warranty, in the past or with their contractual obligations.
during the performance of the contract, shall entitle the
Contracting Authority to terminate this contract immediately
upon notice to the Contractor, at no cost or liability for the
Contracting Authority.

25. INELIGIBILITY
By signing the purchase order, the Contractor (or, if a joint
venture or a consortium, any member thereof) certifies that
they are NOT in one of the situations listed below:
(a) They are bankrupt or being wound up, are having
their affairs administrated by courts, have entered
into an agreement with creditors, have suspended

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ANNEX 2
SERVICE CONTRACT
GENERAL TERMS AND CONDITIONS FOR SERVICE CONTRACTS
VER 2 2012

DEFINITIONS

By this Code of Conduct, the Contracting Authority applies and security of the person. Contractors must not flaunt
ethics to procurement. We expect our contractors to act their responsibility to uphold and promote the Human
socially and environmentally responsible and actively work for Rights toward employees and the community in which
the implementation of the standards and principles in this Code they operate.
of Conduct. The Code of Conduct is applicable for all our
contractors who supply goods, services and works to our  Non exploitation of Child Labour (UN Child Convention
operations and projects. on the Rights of the Child, and ILO Convention C138 &
C182)
This Code of Conduct and its related principles and standards
Contractors must not engage in the exploitation of child
are based on recommendations from the Danish Initiative for
labour4 and contractors must take the necessary steps to
Ethical Trade (DIEH)1, the UN Global Compact principles 2 and
prevent the employment of child labour. A child is
ECHO’s Humanitarian Aid Guidelines for Procurement 20113.
defined as a person under the age of 18 and children
shall not be engaged in labour that compromise their
General Conditions
health, safety, mental and social development, and
The Code of Conduct defines the ethical requirements and
schooling. Children under the age of 15 (in developing
standards for our contractors, whom we expect to sign and
countries 14) may not be engaged in regular work, but
respect the Code of Conduct, and work actively towards the
children above the age of 13 (in developing countries 12)
implementation hereof. By signing the Code of Conduct
can be engaged in light work if it does not interfere with
contractors agree to place ethics central to their business
compulsory schooling and is not harmful to their health
activities.
and development.
The provision of the ethical standards constitutes minimum
 Employment is freely chosen (ILO Convention C29 &
rather than maximum standards. International and national
laws shall be complied with, and where the provisions of law C105)
and the Contracting Authority’s standards address the same Contractors must not make use of forced or bonded
subject, the highest standard shall apply. labour and must respect workers freedom to leave their
It is the responsibility of the contractor to assure that their employer.
contractors and subcontractors comply with the ethical
requirements and standards set forth in this Code of Conduct.  Freedom of association and the right to collective
bargaining (ILO Convention C87 & C98)
The Contracting Authority acknowledge that implementing Contractors must recognise workers right to join or form
ethical standards and ensuring ethical behaviour in our supply trade unions and bargain collectively, and should adopt
chain is a continuous process and a long-term commitment for an open attitude towards the activities of trade unions
which we also have a responsibility. In order to achieve high (even if this is restricted under national law).
ethical standards for procurement we are willing to engage in
dialogue and collaboration with our contractors. In addition, we  Living wages are paid (ILO convention C131)
expect our contractors to be open and willing to engage in As a minimum, national minimum wage standards or ILO
dialogue with us to implement ethical standards for their wage standards must be met by contractors.
businesses. Additionally, a living wage must be provided. A living
wage is contextual, but must always meet basic needs
Unwillingness to co-operate or serious violations of the Code such as food, shelter, clothing, health care and schooling
of Conduct will lead to termination of contracts. and provide a discretionary income5 - which is not always
the case with a formal minimum wage.
Human Rights and Labour Rights
Contractors must at all times protect and promote human- and  No discrimination in employment (ILO Convention C100
labour rights and work actively to address issues of concern. & C111 and the UN Convention on Discrimination
As a minimum they are obliged to comply with the following
against Women)
ethical standards:
Contractors must not practice discrimination in hiring,
 Respect for Human Rights (UN Universal Declaration of salaries, job termination, retiring, and access to training
or promotion - based on race, national origin, caste,
Human Rights)
gender, sexual orientation, political affiliation, disability,
The basic principles of the Universal Human Rights are marital status, or HIV/AIDS status.
that all human beings are born free and equal in dignity
and in rights, and everyone has the right to life, liberty
4
1 The definition of Child Labor can be found at:
http://www.dieh.dk/etisk-handel/hvordan-etisk-handel/dieh-retningslinjer-for-etisk-
http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle5.html and
handel/dieh-guidelines/
http://www.ilo.org/ilolex/cgi-lex/convde.pl?C138
2
http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/
5
index.html Discretionary income is the amount of an individual's income that is left for
3 spending, investing, or saving after taxes and personal necessities (such as food,
http://ec.europa.eu/echo/partners/humanitarian_aid/procurement_guidelines_en.htm shelter, and clothing) have been paid.
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 SERVICE CONTRACT
 No harsh or inhumane treatment of employees promote transparency, contractors who are confronted with
The use of physical abuse, disciplinary punishment, corrupt practices are advised to file a complaint in the DCA
sexual abuse, the threat of sexual and physical abuse, Complaint Mechanism7.
and other forms of intimidation may never be practiced
by contractors. A contractor’s involvement in any form of corrupt practice
during any stage of a selection process, in relation to the
 Working conditions are safe and hygienic (ILO performance of a contract or in any other business context is
Convention C155) unacceptable and will lead to the rejection of bids or
termination of contracts.
Contractors must take adequate steps to provide safe
and hygienic working environments. Additionally,
List of International Conventions and Treaties covered by
workers safety must be a priority and adequate steps
this Code of Conduct for Contractors
must be taken to prevent accidents and injury to health
associated with or occurring in the course of work.
 UN Universal Declaration of Human Rights, 1948;
http://www.un.org/en/documents/udhr/index.shtml
 Working hours are not excessive (ILO Convention C1 &
C14)  Un Guiding Principles on Business and Human Rights,
Contractors must ensure that working hours comply with 2011;
national law and international standards. A working week http://www.ohchr.org/Documents/Publications/
of 7 days should not exceed 48 hours and employees GuidingPrinciplesBusinessHR_EN.pdf
must have one day off per week. Overtime shall be
compensated, limited and voluntary.  Geneva Conventions I-IV, 1949 and additional
Protocols;
 Regular employment is provided (ILO Convention C143) http://www.icrc.org/eng/war-and-law/treaties-
All Work performed must be on the basis of a recognised customary-law/geneva-conventions/index.jsp
employment relationship established through
international conventions and national law. Contractors  ILO Declaration on Fundamental Principles and Rights
must protect vulnerable group’s regular employment at Work, 1998;
under these laws and conventions and must provide http://www.ilo.org/declaration/lang--en/index.htm and
workers with a written contract. http://www.ilo.org/wcmsp5/groups/public/---
ed_norm/---declaration/documents/publication/
International Humanitarian Law wcms_095898.pdf
Contractors linked to armed conflicts or operating in armed
conflict settings shall respect civilian’s rights under  UN Child Convention on the Rights of the Child, 1990;
International Humanitarian Law and not be engaged in http://www2.ohchr.org/english/law/crc.htm
activities which directly or indirectly initiate, sustain, and/or
exacerbate armed conflicts and violations of International  C182, Worst Forms of Child Labour Convention, 1999;
Humanitarian Law6. Contractors are expected to take a ‘do no http://www.ilo.org/ilolex/cgi-lex/convde.pl?C182
harm’ approach to people affected by armed conflict.
Additionally, Contractors shall not be engaged in any other  C138, Minimum Age Convention, 1973;
illegal activity. http://www.ilo.org/ilolex/cgi-lex/convde.pl?C138

Involvement in Weapon Activities  C87, Freedom of Association and Protection of the

The Contracting Authority advocates for the Ottawa Right to Organise Convention, 1948;
Convention against landmines and the Convention on Cluster http://www.ilo.org/ilolex/cgi-lex/convde.pl?C087
Munitions against cluster bombs. Contractors shall not engage
in any development, distribution, sale, or manufacturing of anti-  C98, Right to Organise and Collective Bargaining
personnel mines, cluster bombs, components, or any other Convention, 1949;
weapon which feed into violations of International http://www.ilo.org/ilolex/cgi-lex/convde.pl?C098
Humanitarian Law and Human Rights.
 C29, Forced Labour Convention, 1930;
Protection of the Environment http://www.ilo.org/ilolex/cgi-lex/convde.pl?C029
The Contracting Authority wishes to minimise the
environmental damages applied to nature via our procurement  C105, Abolition of Forced Labour Convention, 1957;
activities and we expect our suppliers and contractors to act in http://www.ilo.org/ilolex/cgi-lex/convde.pl?C105
an environmentally responsible manner. This involves
respecting applicable national and international environmental  C131, Minimum Wage Fixing Convention, 1970;
legislation and acting in accordance with the Rio Declaration. http://www.ilo.org/ilolex/cgi-lex/convde.pl?C131

As a minimum contractors should address issues related to  C100, Equal Remuneration Convention, 1951;
proper waste management, ensuring recycling, conservation of http://www.ilo.org/ilolex/cgi-lex/convde.pl?C100
scarce resources, and efficient energy use.
 C111, Discrimination (Employment and Occupation)
Anti-Corruption Convention, 1958;
Corruption is by the Contracting Authority defined as the http://www.ilo.org/ilolex/cgi-lex/convde.pl?C111
misuse of entrusted power for private gain and it includes
bribery, fraud, embezzlement and extortion. The Contracting  The UN Convention on the Elimination on All Forms of
Authority holds a great responsibility to avoid corruption and Discrimination against Women 1979;
ensure high standards of integrity, accountability, fairness and
http://www.un.org/womenwatch/daw/cedaw/text/econventi
professional conduct in our business relations. Contractors are
expected to have the same approach by undertaking good and on.htm
fair business ethics and practices, take action to prevent and
fight corruption, and abide by international conventions as well
as international and national laws. To fight corruption and
7
http://www.danchurchaid.org/about-us/quality-assurance/anti-corruption/
6 complaints
This includes pillage/looting which is the unlawful taking of private property for
personal or private gain based on force, threats, intimidation, pressure and through
a position of power accomplished due to the surrounding conflict.
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 SERVICE CONTRACT
 C1, Hours of Work (Industry) Convention, 1919;
http://www.ilo.org/ilolex/cgi-lex/convde.pl?C001

 C14, Weekly Rest (Industry) Convention, 1921;

http://www.ilo.org/ilolex/cgi-lex/convde.pl?C014

 C143, Migrant Workers (Supplementary Provisions)

convention, 1975;
http://www.ilo.org/ilolex/cgi-lex/convde.pl?C143

 C155, Occupational Safety and Health Convention,

1981; http://www.ilo.org/ilolex/cgi-lex/convde.pl?C155

 The Rio Declaration on Environment and Development, 1992;

http://www.unep.org/Documents.Multilingual/Default.asp?
DocumentID=78&ArticleID=1163&l=en

 The Ottawa Convention, 1997;

http://www.apminebanconvention.org/fileadmin/pdf/mbc/text_status
/Ottawa_Convention_English.pdf

 The Convention on Cluster Munitions, 2007;

http://www.clusterconvention.org/files/2011/01/Convention-
ENG1.pdf

 Arms Trade Treaty, 2013;

http://www.un.org/disarmament/ATT/

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