average rate for base lending prevailing as of the first day the payment becomes overdue. If an amount certified is increased in a later certificate or as a result of an award by an Arbitrator, the Contractor shall be paid interest upon the delayed payment as set out in this clause. Interest shall be calculated from the date upon which the increased amount would have been certified in the absence of dispute. of the Works for which no rate or price has been entered in will not be paid for by the Employer and shall be deemed covered by other rates and prices in the Contract. The Contract shall be stated in Kenya Shillings. All payments to the Contractor shall be made in Kenya Shillings and foreign currency in the proportion indicated in the tender, or agreed prior to the execution of the Contract Agreement and indicated therein. The rate of exchange for the calculation of the amount of foreign currency payment shall be the rate of exchange indicated in the Special Conditions of Contract. If the Contractor indicated foreign currencies for payment other than the currencies of the countries of origin of related goods and services the Employer reserves the right to pay the equivalent at the time of payment in the currencies of the countries of such goods and services. The Employer and the Project Manager shall be notified promptly by the Contractor of an changes in the expected foreign currency requirements of the Contractor during the execution of the Works as indicated in the Schedule of Foreign Currency Requirements and the foreign and local currency portions of the balance of the Contract Price shall then be amended by agreement between Employer and the Contractor in order to reflect appropriately such changes. In the that an advance payment is granted, the following shall apply:- On signature of the Contract, the Contractor shall at his request, and without furnishing proof of expenditure, be entitled to an advance of 10% (ten percent) of the original amount of the Contract. The advance shall not be subject to retention money. No advance payment may be made before the Contractor has submitted proof of the establishment of deposit or a directly liable guarantee satisfactory to the Employer in the amount of the advance payment. The guarantee shall be in the same currency as the advance. Reimbursement of the lump sum advance shall be made by deductions from the Interim payments and where applicable from the balance owing to the Contractor. Reimbursement shall begin when the amount of the sums due under the Contract reaches 20% of the original amount of the Contract. It shall have been completed by the time 80% of this amount is reached.
……………………………….. (Contractor’s full name and principal place of business) a duly registered entity according to the laws of..…… (state country) and of Post Office Box Number……………….(full address physical and postal of Contractor) in the Republic aforesaid, (hereinafter referred to as the “Contractor” of the other part; WHEREAS KPLC invited tenders for certain works, that is to say for ………………(KPLC insert description of works) under Tender Number…………….. (KPLC insert tender number) AND WHEREAS KPLC has accepted the Tender by the Contractor for the services in the sum of ……………………(KPLC specify the total amount in words which should include any payable taxes, duties and insurance where applicable e.g. Value Added Tax) (hereinafter called “the Contract Price”). NOW THIS AGREEMENT WITNESSETH AS FOLLOWS: - In this Agreement words and expressions shall have the same meanings as are respectively assigned to them in the Conditions of Contract and the Tender Document. Unless the context or express provision otherwise requires: - reference to “this Agreement” includes its recitals, any schedules and documents mentioned hereunder and any reference to this Agreement or to any other document includes a reference to the other document as varied supplemented and or replaced in any manner from time to time. any reference to any Act shall include any statutory extension, amendment, modification, re-amendment or replacement of such Act and any rule, regulation or order made thereunder. the Official Purchase Order shall also mean the Official Order or Local Purchase Order. words importing the masculine gender only, include the feminine gender or (as the case may be) the neutral gender. words importing the singular number only include the plural number and vice-versa and where there are two or more persons included in the expression the “Contractor” the covenants, agreements obligations expressed to be made or performed by the Contractor shall be deemed to be made or performed by such persons jointly and severally. where there are two or more persons included in the expression the “Contractor” any act default or omission by the Contractor be deemed to be an act default or omission by any one or more of such persons.