CLIENT- PROJECT MANAGER AGREEMENT

Entered into between

LYIMBAI INVESTMENTS
Hereafter called
the Client

AND

LMC ARCHI- PROJECTS CC

Hereafter called
the Project Manager

FOR

PROPOSED KATIMA MULILO HOTEL

SITUATED IN KATIMA MULILO
Hereafter called
the project

DATED: ……./ ……./ 20……

AGREEMENT REFERNCE NUMBER: LMC AP PM14-002 IN

FINANCE PRE- APPROVAL SERVICES

1. PROPOSED PROJECT

Proposed 4 Star Hotel in Katima Mulilo for Lyimbai Investments situated at Katima Mulilo, plot no: to
be verified by the client.

2. PRINCIPAL PARTIES

The following parties shall constitute the principal parties of this agreement.

2.1 Client: Lyimbai Investments

P.O. Box 41049 Auspannplatz, Windhoek,
thereafter to be referred to as the client.

Client’s representative(s): Mr. Tofirei Dube in the capacity of Co- Director

(and/ or any other member appointed by the client)
thereafter to be referred to as the client’s representative

And/ Or: ………………………………………………………………………….

…………………………………………………………………………..

2.2 Project Manager: LMC Archi-Projects CC

P.O. Box 27324 Windhoek,
thereafter to be referred to as the Project Manager.

Project manager’s representative(s): Mr. Lucky Maphosa in the capacity of Managing Member
(and/ or any other member appointed by the Project manager)
thereafter to be referred to as the Project Manager’s
representative

And/ Or: ………………………………………………………………………….

…………………………………………………………………………..

3. CLIENT’S BRIEF

3.1 Proposed 4 Star Hotel in Katima for Lyimbai Investments to be situated at Katima Mulilo, plot
no: to be verified by the client.
3.2 Hotel to have state of the art facilities and provisions
3.3 Outline of full client’s brief to be discussed and finalized after signing of this agreement

4. ANTICIPATED PROJECT COST RANGE

4.1 For the purposes of calculation of fees and preliminary determination of the project size it will
be assumed that the project cost will be between N$56, 320, 001-00 and N$112, 640, 000-00
(including VAT) excluding all professional fees, disbursements and other related amounts.
4.2 The project is to be taken as a complex building as defined by the Namibia Institute of
Architects.

5. SERVICES FROM PROJECT MANAGER

The services to be rendered and provided to the client by the Project Manager in his capacity and/
or his employed consultants for as long as they are working under him, shall be as follows:

5.1 Finance Pre- approval stage

5.1.1 Project definition and appraisal (Stage 1: equivalent to 5% of total project services)
5.1.2 Preliminary design concept (Stage 2: equivalent to 15% of total project services)

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6. CONDITIONS OF SERVICES FROM PROJECT MANAGER
6.1 For Finance Pre-approval stage chargeable fees will be as outlined on Table F1 below subject
to adherence to all conditions stated herein on chapter 6.
6.2 Fees charged on Table F1 are only valid if the client guarantees and undertakes to employ
the Project Manager for all the services stated on item 6.2.1 (at the Fee rates defined by the
relevant bodies of Namibia) should the proposed project secure funding from any financing
institution approached by the client.
6.2.1 Finance Post- approval stage services shall be:
a) Project management services from Design Development to Construction
supervision (Stage 3 to 5: equivalent to remaining 80% of Project services). Full
fees for the Project Manager shall be 2.0% of the Project cost.
b) Architectural services from Design Development to Construction final completion
certification (Stage 3 to 5: equivalent to remaining 80% of Project services) with
fees as defined by the Namibia Council of Architects and Quantity Surveyors
c) Quantity surveying services from Design Development to Construction Final
completion (Stage 3 to 5: equivalent to remaining 90% of Project services) with
fees as defined by the Namibia Council of Architects and Quantity Surveyors
d) Civil/ Structural engineering services from Design Development to Construction
supervision (Stage 1 to 5: equivalent to 100% of Project services) with fees as
defined by the Engineering Council of Namibia
e) Mechanical/ Electrical engineering services from Design Development to
Construction supervision (Stage 1 to 5: equivalent to 100% of Project services)
with fees as defined by the Engineering Council of Namibia
f) Land surveying and geo-technical assessments shall be carried out only when
necessary and shall be the responsibility of the client

6.3 For Finance Pre- Approval stage to commence and be carried out by the Project Manager, the
client shall pay the Project Manager a Primary Charge equivalent to 1.5% of the Project
Manager’s full fees.
6.4 After securing funding for the project, the client shall pay through funding or self the full fees
stated on item 6.5.
6.5 The full fees for Finance Pre- Approval stage shall be 2.05% (Two comma zero five percent)
of the project cost at the time of finalizing the cost estimate of the project during Financing
Pre- approval stage.
6.6 Should the client wish not to and/ or fail to appoint the Project Manager as stated on 6.2 and
6.3 after securing funding for the project by means of appointing another consultant(s)or
similar manner within three years of securing the funding, then the client shall pay to the
Project Manager a compensation fee equivalent to the full fees (plus lending rate plus 2.5% to
the Interest) that ought to have been paid to the Project Manager for all work done to that
stage less the monies already paid (which shall not include the Primary Charge)
6.7 Should the client fail to secure funding for the project for 3 (three) years after the Financing
Pre- approval stage completion, then the Project Manager shall regard the project as
terminated and at such time only the Primary Charge should have been paid to the Project
Manager and no other fees will be due to him.
6.8 If however, the client decides to seize the project soon after completion of the Financing Pre-
approval stage completion, then the client undertakes not to employ any other consultant
except for the same project Manager for as long as this is still within the three years stated on
6.7 and the full Primary Charge must be paid to the Project Manager
6.9 The Project Manager shall reimburse the client of all monies paid to date on work still not
done but paid for, if he decides to terminate his services within Finance Pre- Approval stage
for as long as he gives a 14 calendar day written notice to the client.
6.10 The Project Manager will not be responsible nor liable and does not guarantee the successful
securing of funding for the project and no claims emanating thereof shall be laid on him by the
client or his related parties.
6.11 The Project Manager may choose not to continue with the project after Finance Pre- Approval
stage as long as he gives at least 14 Calendar day written prior notice to the client. Such
action by the Project Manager shall not attract any penalty or reimbursement on the part of
the Project Manager as a result of such termination of services.
6.12 Should the client decide to seize the project after commencing with Financing Pre- approval
stage but before its completion, then the client must pay the Project Manager for all work done
to such time plus 2.5% interest on the amount due.

3
 6.13 The Project Manager undertakes to consult the client until agreement is reached on the
designs, costing and project viability before any final documents are submitted to the client, of
course subject to all conditions of this agreement.
6.14 The Project Manager shall have the right to withhold the final documentation from the client if
by the time of their finalization the client still has not paid the full Primary Charge.
6.15 The project Manage undertakes to supply services for Financing Post Approval stage with
lawfully registered entities as per the laws of the Republic of Namibia.
6.16 The client undertakes to comply with all the terms listed on this document.
6.17 Banking details for both parties are to be corresponded to each party after signing of this
agreement.
6.18 Any changes, additions and omissions to this agreement will only be valid if agreed to and
signed for by both principal parties.
6.19 This agreement is deemed to be valid only when signed by both parties’ representatives, at
least two of each parties’ witnesses and a revenue stamp. All pages of the agreement must
be signed by all parties’ representatives

7. PROPOSED FEES

TABLE: F1

PROJECT: PROPOSED 4 STAR HOTEL AT KATIMA MULILO FOR LYIMBAI INVESTMENTS

FINANCE PRE- APPROVAL STAGE FEE STRUCTURE

Estimated Project Cost: N$56. 320, 001-00 to N$112, 640, 000-00

1.0: PRIMARY CHARGE

# Description of work Rate QTY Sub Total
1.1 Project Manger’s Primary Charge 2.0% 0.015 33, 792-00
1.2 TOTAL PRIMARY CHARGE (excl. VAT) N$33, 972-00

2.0: FINANCE PRE- APPROVAL FULL FEES

# Description of work Rate QTY Sub Total
2.1 Project Manager’s services 2.0% 0.2 0.4% of Project Cost
2.2 Architectural services 6.25% 0.2 1.25% of Project Cost
2.3 Quantity Surveying services 4.0% 0.1 0.4% of Project Cost
2.4 TOTAL FINANCE PRE- APPROVAL 2.05% OF PROJECT COST
FEES

Terms and conditions for Finance Pre- Approval Stage

A All amounts stated in Namibia Dollars only.
B This Quotation is valid for only 30 Calendar days from Date of issue.
C The client must pay an Initial Deposit of at least 50% of the Primary charge for to be work be
commenced by the Project Manager.
D The outstanding fees must be paid on or before final submission of the documents by the Project
Manager to the client
E All fees charged herein exclude any and all fees that may be chargeable by any local authority or
such other body including services engineers.
F All terms herein subject to Chapter 6 prescriptions.

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8. PARTIES’ ENDORSEMENTS

Below are signatures marking the endorsement of this agreement by both principal parties subject
to all relevant conditions of the agreement.

8.1 Client:

Client’s representative

………………………… …………………….. ………………………… ………………………………..

Name and Surname ID No: / Other Capacity Signature

…………………………………… …………………………… ………………………………..

Witness 1 (Name and Surname) ID No:/ Other Signature

…………………………………… …………………………… …………………………………

Witness 2 (Name and Surname) ID No: / Other Signature

REVENUE
STAMP

PROJECT MANAGER:

Project Manager’s representative

………………………… …………………….. ………………………… ………………………………..

Name and Surname ID No: / Other Capacity Signature

…………………………… …………………………… …………………………………

Witness 1 (Name and Surname) ID No: / Other Signature

…………………………… …………………………… …………………………………

Witness 2 (Name and Surname) ID No: / Other Signature