Enterprise Extends Contract Period for TACON

The contract period for the headquarters was extended by half a year

The completion period for the stalled headquarters building of the Ethiopian Shipping & Logistics Services Enterprise has been extended for an additional six months.

The Enterprise and contractor Tekleberhan Ambaye Construction (TACON) have reached an agreement to extend the completion period. The construction that began a decade ago is only at 65pc completion, falling short of its end-date this past September.

During progress evaluation and contract performance conducted on September 21, 2018, the CEO of the Enterprise, Roba Megersa, said that the remaining finishing work, aluminium cladding and masonry, are minor and could not be cited as reasons for the delay.

According to Dereje Assefa, a project consultant, however, the provision of supplies such as generators, lifts, water and firefighting pumps are significant causes of delay, and the CEO of the enterprise stressed the supplies are issues the contractor should rectify.

Seifu Ambaye, CEO of Tekleberhan Ambaye Construction, a company established in 1993, requested the Enterprise extend the contract period. He said the delay is due to lack of foreign currency.

“Construction inputs are arriving at the Modjo Dry Port, so we will be able to complete it in due time,” Seifu said during the meeting with officials of the Enterprise.

If it takes more time, the Enterprise will be obliged to take legal action, Roba said.

Tekleberhan Ambaye Construction took the 490 million Br contract to complete the last two floors and overall finishing work of the building within 1,111 days of signing.

Construction of the two-basement, 18-storey building with a revolving restaurant at its apex, rests on 3,200Sqm of land. It is located near the Enterprise’s current headquarters in Legehar.

ZIAS Consulting Company has supervised the construction from the beginning. Established in 2006, it is a grade one consulting firm, which designed the Empire Realestate condos and the headquarters building of Dashen Bank.

The project’s original contractor was DMC Construction, which was established in 1996 and has participated in the construction of buildings, roads, bridges, airports, dry ports, stadiums and dams. Its contract was terminated after completing most of the structural work, except for the last two floors after what the Enterprise deemed was poor performance.

A civil engineer for more than a decade and a private consultant, Habtamu Hailemichael believes the source of delay in the construction industry is a lack of both contractors and clients using the contract document.

“If every move of the contractor synchronises with the contract document, and proper follow up is conducted, many conflicts would be avoided,” he said.

The Enterprise was formed during the tenure of Ahmed Tusa through the merger of the three giant state enterprises in the logistics sector – Ethiopian Shipping Lines, the Ethiopian Maritime Transit Services and the Ethiopian Dry Ports Enterprise.

Fortune’sattempt to reach Seifu by phone and text message bore no fruit.


Published on Oct 13,2018 [ Vol 19 ,No 963]



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