Sitewide Phase 3 Infrastructure Works – Contract CGP01V050: Comprehensive Notes

Parties & Contract Overview

Employer (First Party): Capital Group Properties for Real Estate Development S.A.E.
- Registered office: Cairo Festival City, Taha Hussein St., Fifth Settlement, New Cairo, Plot 14B-1, Bldg A, 4th Floor
- Signatories: H.E. Saeed Al Ghafli (Chairperson), Mr. Ahmed Aref (CEO)
Contractor (Second Party): Global Energy S.A.E.
- Registered office: Unit 664 El Geish Rd intersecting Rd 45, Al Muntazah, Alexandria
- Commercial Reg. No.: 72111
- Signatory: Mr. Alsafy Gomaa Fathy Abdelmoaty (CEO)
Project: “Alburouj Project” – Sitewide Phase 3 Infrastructure Works Construction Package
- Location: Km 42 South Cairo-Ismailia Road
- Contract Ref.: CGP01V050
Contract Price: $EGP\ 445{,}382{,}045$ (incl. VAT & all taxes) on a re-measured basis
Time for Completion: $480\ \text{calendar days}$ from Commencement Date
Defects Notification Period (DNP): $365\ \text{days}$
Performance Security: $10\%$ of Contract Price (bank guarantee)
Advance Payment: $10\%$ of Accepted Contract Amount (repaid at $10\%$ of each IPC)
Delay Penalties: $EGP\ 600{,}000\,/\text{day}$ per Section, capped at $10\%$ of Contract Price

Contract Documents & Priority (Clause 1.5)

Contract Agreement
Letter of Acceptance (if any)
Appendix to Tender
Particular Conditions of Contract
General Conditions (FIDIC Red Book 1999)
Technical Clarifications / Addenda
Specifications & General Requirements
Drawings
Pricing Preambles
BOQ & Method of Measurement
Annexes A1–A3 (Scope, Schedule & Milestones, Masterplan) and B1–B5 (Guarantee forms, OCIP, etc.)

Documents are mutually explanatory; conflicts referred to Engineer; Contractor must notify ambiguities within 14 days or lose entitlement.

Scope Highlights (Annex A1 & Employer Nomination Rights)

Employer may direct-procure / nominate specified suppliers for:
- Buildings: lighting fixtures, A/C units, sanitary ware, elevators, flooring, etc.
- Infrastructure: interlock, cables, fiber optics, transformers, security, etc.
- Landscape: lighting, play equipment, furniture, signage, security
- Fences & Gates: precast concrete fence
Contractor’s price includes all coordination & potential resequencing with other contractors.

Contractor Key Obligations (Particular Conditions)

Design (where specified), execute, complete, test, commission & remedy defects strictly per Contract, Laws of Egypt, best international practice.
Provide new, lien-free materials; no deleterious substances.
Provide Arabic translation of Contract & BOQ within 28 days of signing; failure ⇒ 5 % withholding from 1st IPC.
Full site security for own materials until hand-over.
Performance Security to be issued within 14 days; must be unconditional, irrevocable, Egyptian bank.
Maintain insurances per Clause 18; OCIP supplied by Employer, deductibles on Contractor.
Programme: detailed baseline within 14 days; bi-weekly updates; daily & weekly look-ahead reports; float is for project, not solely Contractor; Time Impact Analysis (SCL 2017) required for EOT claims.
Quality: QA/QC plan, commissioning team, mock-ups, samples, shop-drawings; Engineer replies within 10 working days (RFIs 10 days, IRs 2 days).
HSE: safety plan 7 days pre-Commencement; dedicated safety officer; compliance with Egyptian Law 4/1994; fines & suspension for breaches.
Social insurance compliance; up to 10 % withholding if certificates not provided.
Subcontracting: prior written consent; pre-qualification ≥5 yrs experience; collateral warranty (Annex B4) within 10 days of appointment; max 15 % nomination fee.
Confidentiality: no disclosure, photos, or publicity without Employer consent.
Prohibited: assignment without Employer approval; use of deleterious materials; removal of Plant/Materials without consent.

Employer Rights & Powers

May assign/novate Contract to affiliate without Contractor objection.
Engineer requires Employer approval before key determinations (payments, variations, EOTs, suspension, termination, etc.).
May withhold payments for: missing documents, safety issues, insurance lapses, slow progress.
Can de-scope works (Clause 40) or procure materials (Clause 41); Contractor bears cost & no loss-of-profit.
Step-in rights under Sub-contractor Collateral Warranty; can take over Subcontract upon Contractor default.

Variations & Adjustments (Clause 13)

Written instruction mandatory; Contractor to proceed even if price unresolved.
Omitted work ≠ entitlement to loss of profit.
Overhead & profit on new-rate variations capped at $20\%$ of direct cost.
Value Engineering sharing: Contractor receives $30\%$ of documented savings.
Price adjustment limited:
- Diesel escalation formula: $V<em>2=V</em>1\times0.01\times\big(\tfrac{\text{New Rate}}{10}-1\big)\times(1-\text{AP\%})$
- Steel rebar & cement fluctuation mechanisms detailed.
- Foreign currency clause: adjustment triggered if USD/EGP moves outside $42–48$ range, using: $V<em>2=V</em>1\times0.15\times\big(\tfrac{\text{USD New}}{30.95}-1\big)$

Payment Provisions (Clause 14)

Currency: Egyptian Pound only.
IPC frequency: monthly; Engineer may certify only if ≥35 % of forecast; cap at 115 % of cash-flow forecast.
Retention: $5\%$ , released 50 % at Taking-Over, 50 % at Final Certificate.
Financing charges for late payment: Corridor Rate of CBE, payable after 28 days from notice; no EOT or suspension due to late payment.
Plant/Materials on site: up to 40 % of BOQ rate (65 % for specified big-ticket items) after delivery & approval.

Delays & EOT (Clauses 8 & 20)

EOT causes limited; notice within 7 days; fully detailed claim within 28 days; fail ⇒ forfeiture.
Float first consumed; no EOT unless delay pushes critical path below zero.
Delay penalties accrue daily; reaching 10 % cap allows Employer to terminate.

Suspension & Termination (Clauses 8.8, 15, 16)

Employer may suspend for Contractor default, HSE, etc.; Contractor bears cost if attributable.
Employer automatic termination triggers: insolvency, failure to provide guarantees/insurance, delay penalties maxed, breach of law, etc.
Contractor has no right to terminate; Clause 16 declared “Not Used”.

Risk, Liability & Insurance (Clauses 17 & 18)

Contractor 10-year decennial liability per Egyptian Civil Code.
Employer’s risks narrowed (war, radioactivity, etc. limited to Egypt).
Total Contractor liability capped at Accepted Contract Amount, except for fraud/gross negligence.
OCIP in force; Contractor pays deductibles; must comply with policy notifications.

Dispute Resolution (Clause 20)

Disputes → Engineer decision within 56 days.
If dissatisfied: 56 days amicable settlement → CRCICA arbitration, Cairo, Egyptian Law; three arbitrators (Employer, Contractor, and chair by CRCICA if no agreement).

Appendix to Tender Key Data

Working hours: per Egyptian Labour Law; extended hours require approval & supervision costs.
Retention limit: $5\%$ of Contract Price.
Insurance deductibles: To Be Determined; Contractor’s equipment insured at 150 % of value.
Electronic communication: email permitted only in emergency; hard copy follow-up within 2 working days.

Forms & Annexes

B1 Performance Security Form (unconditional, payable on first demand; expires 60 days post Performance Certificate).
B2 Advance Payment Security Form (reduces as repayments made).
B3 Discharge & Release of Lien.
B4 Sub-contractor Collateral Warranty (step-in, IP rights, assignment).
B5 OCIP details.

Additional Particular Conditions (Clauses 21-42)

Change of Contractor constitution requires Employer approval.
Mandatory liaison with authorities; Contractor absorbs regulatory changes unless due to Employer.
Extensive Site facilities: temporary storage, fencing, first aid, fire prevention, welfare, etc.
Proof of payment to suppliers & subcontractors required with each IPC.
Duty to mitigate delays & costs; evidence within 14 days of Employer request.

These bullet-point notes capture the full structure, obligations, risk allocation, financial terms, and procedural requirements of the “Sitewide Phase 3 Infrastructure Works Construction Package” Contract (CGP01V050) between Capital Group Properties and Global Energy, incorporating all Particular Conditions and Appendix data.