Contract for Development
Article 1
Purpose of Contract
The subject matter of this
Contract is part of the JARO architectural complex consisting of 4 residential
buildings with 100 apartments, Building A as non-dwelling space - stores and
other service establishments for residents in the complex, and Building B as
sports facilities.
Article 2
Parties
DEVELOPMENT SPRING, a.s., IČ (identification no.): .........,
seated at .........
represented by the Chairman
of the Board of Directors ............, and the Member of the Board of Directors .........
on the first part
(hereinafter referred to as Client")
and
KINCL a spol., v.o.s., IČ: .........,
seated at .........
represented by .........
on the second part
(hereinafter referred to as Contractor")
Persons authorized to
represent Client in technical matters:
........., competent for
supervising compliance with the project;
........., construction
supervisor;
........., coordinator of the
JARO architectonical complex.
Person authorized to
represent Contractor in technical matters:
........., site manager.
Article 3
Subject Matter
1. Contractor shall perform all and any construction works related
to development of Building A of the JARO architectonical complex according to
the approved project documentation enclosed as Appendix 1 hereto and forming an
integral part hereof (including an approved budget).
2. Upon termination of works hereunder, Contractor shall deliver
to Client a set of record drawings in four copies, that are in compliance with
requirements of applicable technical regulations and needs of Client and in
correspondence with the purpose of this Contract.
3. Client shall accept the work hereunder and pay the agreed price
therefor.
4. An effective zoning and planning decision and building permit
are enclosed as Appendices 2 and 3 hereto and form integral parts hereof.
Article 4
Place of Performance
The place of performance is
a part of plot 234 (as marked in the layout plan included in the project
documentation enclosed as Appendix 1 hereto) in the cadastral area of Horní
Dubá, registered in the Land and Property Register on Ownership Certificate ......
for the same cadastral area. Client is specified in the Ownership Certificate
as the sole owner.
Article 5
Term of Performance
1. Contractor shall finish and deliver the work hereunder to
Client no later than within 13 months of the delivery date of building site.
2. The building site for performance of the work shall be
delivered by Client to Contractor no later than April 16, 1999, and such
delivery shall be entered into the Building Log. If Client fails to comply with
the term of delivery of the building site, then Contractor's obligation as
regards the term of performance is postponed by the same number of days as was
Client's delay. If Client is in delay with delivering the building site for
over 45 days, Contractor has the right to terminate this Contract.
Article 6
Price of Work
The price of work hereunder
was agreed upon by the Parties at CZK 11,000,000 (in words: eleven million
Czech Crowns), plus VAT at the applicable rate as of the date of taxable
performance. This amount is final and shall remain unaffected by any change in
prices of construction materials as of the execution date hereof. The
above-specified price includes all and any reasonable costs and additional
works, not included in the project documentation, approved by both Parties up
to max. amount of 3% of budgeted costs. Should the volume of additional works
be higher, a price therefor shall be agreed upon in an amendment hereto. Should
Client disagree with such increase in the price for this reason, Contractor
shall not be obliged to perform such additional works.
Article 7
Payment Conditions
1. The price specified in Article 6 hereof is due in advance
payments as follows:
1st advance payment in the amount of 10% of the
agreed price within 7 days of the execution date hereof;
2nd advance payment in the amount of 10% of the
agreed price within 7 days of finishing excavation works;
3rd advance payment in the amount of 30% of the
agreed price within 7 days of finishing carcass works;
4th advance payment in the amount of 20% of the
agreed price within 7 days of finishing all works except for façade;
5th advance payment in the mount of 20% of the
agreed price within 7 days of delivering the work.
2. Client shall pay advance payments on the basis of invoices for
advance payments issued by Contractor and delivered to Client no later than 10
days before the agreed due date. Invoices for advance payments shall be
accompanied by supporting documents that prove Contractor's entitlement to a
given advance payment, or a reference to an entry in the Building Log shall be
specified therein.
3. The price for the entire work, including VAT, shall be charged
by Contractor, reduced by the advance payments made, within 10 days of Client's
acceptance of the work, and is due within 7 days of the delivery date. Should
there be any removable defects observed at the time of acceptance of the work,
Client has the right to withhold 10% of the total price of work as a retention
for removing the defects observed at the time of acceptance.
4. Any additional works in excess of 3% under Article 6 hereof
shall be billed separately under an agreement specified in an amendment hereto.
Article 8
Cooperation of Client
1. Client shall ensure that the sidewalk and loading and unloading
space are acquired on the public communication, and Client shall deliver a
relevant authorization no later than 3 days before starting excavation works.
2. Client shall enable Contractor to connect to the distribution
systems of electricity and water that are accessible at the building site,
provided that Contractor shall procure an electricity and water rate meter for
metering the consumption of electricity and water rate.
Article 9
Building Site
1. An entry about delivery and acceptance of the building site,
signed by both Parties, shall be made in the Building Log.
2. As of the acceptance date of the building site, Contractor is
liable for ensuring order not only at the building site but also in the area of
communications used by Contractor, for guarding the building site and ensuring
safety therein, all that until it is delivered back to Client.
3. Client…