this document can be covered the ethiopian to administer the legal obligations of a construction contract. It is concerned with licensing and/or builders' registration and other legislative matters as appropriate and administering the systems through which the obligations of complying with legislation are fulfilled.

1. Building
Construction
Management Level V
EIS BCM5 01 1118
Administer Legal Obligations of Construction Contract
Instructor
Dereje J (MSc)

2. 2
Occupational Standard: Building Construction Management Level V
Unit Title Administer Legal Obligations of Construction Contract
Unit Code EIS BCM5 01 1118
Unit Descriptor This unit specifies the competence required to administer the legal obligations
of a construction contract. It is concerned with licensing and/or builders'
registration and other legislative matters as appropriate and administering the
systems through which the obligations of complying with legislation are
fulfilled.
Elements Performance Criteria
1. Comply with the
laws relating to
establishing and
licensing a
construction
contractor
1.1 Business registration of the organization is secured in accordance with
owner/operator preferences and legal requirements.
1.2 Approval of the licensing and/or registration as a contractor/supervisor
is sought from the appropriate government agency.
1.3 Responsibilities of operating a construction business in accordance with
legislation complied with by the contractor.
1.4 Legal documents and records are kept and carefully maintained.
2. Engage personnel
for the project
2.1 Relevant industrial awards are identified for the hiring of staff or labor.
2.2 Contracts of employment are determined on a case-to-case basis and the
principles and legalities of workplace agreements are implemented.
2.3 Equal opportunity principles are applied in all aspects of recruitment and
selection.
2.4 Procedures for employment termination and redundancy are explained
and followed.
2.5 Dispute resolution processes are established, documented and
implemented where necessary.
3. Administer the
regulations
relating to OHS,
welfare, workers
compensation,
noise abatement
and working hours
3.2 OHS and Welfare Act provisions are identified and complied with, on
and off the site.
3.3 OHS Authority is contacted to determine the necessary approvals or
permits prior to work commencement.
3.4 Provisions of the Workers Compensation Act are complied with and the
rights and responsibilities of workers are observed to ensure a safe
workplace.
3.5 Government laws and regulations including those relating to noise
abatement and working hours are adhered to.

3. 3
Variables Range
Licensing May include, but not limited to:
 Home Building Contracts Act Ethiopia
 Home Building Act and Regulations
 Construction Codes of Ethiopia
Laws and
regulations
Federal laws such as:
 Occupational Health and Safety regulation of Ethiopia
 Workplace Injury Management and Compensation in Ethiopia
 Workers Compensation and Rehabilitation in Ethiopia
Rehabilitation
arrangements
May include, but not limited to:
 light duties
 normal duties under shorter working hours
 suitable alternative duties
 cooperation with rehabilitation agencies
Taxation and
insurance
requirements
May include, but not limited to:
 Insurance Contracts Act of Ethiopia
 Income tax Assessment Act of Ethiopia
 Goods and Services Tax Act of Ethiopia
 Stamp duty
 Payroll tax
 Workers compensation
4. Implement
rehabilitation
arrangements
4.1 Rehabilitation arrangements for employees returning from injury or
illness are facilitated and implemented.
4.2 Workers returning to work after injury or illness are assisted to regain
full employment status as soon as practicable.
5. Comply with
taxation and
insurance
requirements of
government
5.1 Taxation payments are recorded, collected and made in compliance with
Ethiopian Taxation
5.2 Insurance policies are identified to provide appropriate cover for
personnel, property and the project works.
5.3 Mandatory superannuation provisions are made for employees.
6. Administer all
obligations and
observe fair
trading practice
6.1 Fair trading practice responsibilities are maintained effectively and
efficiently.
6.2 Best interests of clients are promoted and undertaken conscientiously in
accordance with the agreed contract.
7. Comply with
environmental
legislation and its
intent
7.1 Use of renewable materials is preferred over non-renewable materials.
7.2 Low energy materials are used in preference to high energy materials,
where practical.
7.3 Processes to ensure compliance with environmental protection
legislation are implemented.

4. 4
 Appropriate business and project insurances
Evidence Guide
Critical Aspects of
Competence
Demonstrate knowledge and skills to:
 conforming to the legal and financial obligations of the organization
 establishing and maintaining good human relations within the
contractual arrangements with employees, sub-contractors and other
stakeholders
 managing organizational taxation and insurance obligations
successfully
 effectively advising appropriate authorities and gaining the
necessary approvals or responses
 promoting and working in the best interest of clients
Underpinning
Knowledge and
Attitudes
Demonstrate knowledge of:
 awards and agreements applying to employees and subcontractors
 OHS and rehabilitation requirements
 legislative requirements including taxation and insurance
requirements, Fair Trading legislation and environmental legislation
 licensing and builders' registration requirements
 local authority regulations
 relevant licensing arrangements applicable
Underpinning Skills Demonstrate skills to:
 attention to detail to manage compliance with a variety of legal
obligations and
 administer various awards and agreements
 managerial skills to effectively manage personnel
 negotiation and communication skills to enable successful resolution
of business and
 human resource disputes
Resource
Implications
The following resources should be made available:
 suitable work area appropriate to the process / tasks
 documents relevant to the tasks of assessment
 equipment appropriate to producing construction drawings
 realistic activities covering the mandatory task requirements
 specifications and work instructions
Method of
Assessment
Competence may be assessed through:
 Interview / Oral questioning / Written Test
 Observation/Demonstration

5. 5
Context of
Assessment
 Competence must be demonstrated over a period of time
reflecting the scope of the role and the practical requirements of
the workplace
 Assessment can be through simulated project-based activity and
must include evidence relating to each of the elements in this unit
 In cases where practical assessment is used it will be combined
with targeted questioning to assess the underpinning knowledge

6. 6
LEARNING OUT COME ONE
Administer: - manage and be responsible for the running of (a business, organization, etc.).
Legal: - is binding set of rules that govern the vision established in a policy.
Article 738 Legal rules mandatory: - The legal rules concerning the ascertainment of the father
and of the mother may not be derogated by agreement, except in the cases where the law expressly
authorises such agreements.
Obligations: -
Construction: -
Contract: - A contract is an agreement entered into between two or more people with the
intention of creating legally enforceable obligations.
Contract means the Conditions of Contract, Specifications, Methods of Measurement, Drawings,
priced Bill of Quantities, Schedule of Rates and Prices, the Letter of Acceptance, the Contract
Agreement, Addenda and other documents issued thereof
Law: - is a set of rules that are created and are enforceable by social or governmental institutions
to regulate behavior.
1.1 Comply with the laws relating to establishing and licensing a construction
contractor.
 Construction and contractor license and permits show prospective clients that your
company is qualified to handle the job and in compliance with local building regulations,
and they can keep you from getting fines that impact your bottom line.
 Contractor’s face some of the most challenging licensing requirements of any profession.
1.2. Approval of the licensing and/or registration as a contractor/supervisor is sought from
the appropriate government agency.
"Approved" means approved in writing, including subsequent written
confirmation of previous verbal approval.

7. 7
Register of Approved Contractors lists all of the organisations that have met the requirements for
the Approved Contractor Arrangement.
Approval of Licensed: - Company agrees that Licensor shall have the right,
in advance of work, to approve or disapprove, in good faith, the quality, style, colors,
appearance, material and/or workmanship of all Licensed work.
Business Information System (BIS)
 The Business ID Register.
 The Trade Register.
 The Register of Foundations.
 The Client Registers of the Tax Administration.
 The Employer Register.
 The VAT Register.
1.2 Responsibilities of operating a construction business in accordance with legislation
complied with by the contractor.
GENERAL OBLIGATIONS
Clause: - 8 Contractors General Responsibilities
1) The Contractor shall, subject to the provisions of the Contract, and with due care and
diligence, execute and maintain the Works and provide all labour, including the supervision
thereof, materials, constructional Plant and all other things, whether of a temporary or
permanent nature, required in and for such execution and maintenance, so far as the
necessity for providing the same is specified in or is reasonable to be inferred from the
contract.
2) The Contractor shall take full responsibility for the adequacy, stability and safety of all site
operations and methods of construction, provided that the Contractor shall not be
responsible, except as may be expressly provided in the Contract, for the design or
specification of the Permanent Works, or the design or specification of any Temporary
Works prepared by the Engineer.

8. 8
3) The Contractor shall promptly inform the Employer and Engineer of any error, omission,
fault and other defect in the design of or specifications for the works which are discovered
when reviewing the Contract documents or in the process of execution of the Works.
1.3 Legal documents and records are kept and carefully maintained.

9. 9
Contractor's Project Manager should establish procedures for the following:
1) Work breakdown, definition of authority and control of changes.
2) Planning and progress monitoring of site manpower needs.
3) Preparation and placing of contracts and other procurement
4) Cost estimating and monitoring
5) Equipment, materials ordering and delivery.
6) Documents records and control.

10. 10
ASSIGNMENT ONE
Instruction
1 Before write the assignment
1. Gathering the information from contract administration office.
2. Collecting the document from necessary office.
3. Ask interview about administer construction contract.
2 In the assignment preparations
1. As you write the assignment you should must be written core points.
2. Make sure checked your name, Id no etc. before submitted assignment.
3. You are submitting and presenting your assignment on the submission date.
4. Preparing the document by ppt.
5. Students should write their answers by neatness and clearly.
Questions
1) Please further discussion on how to administer construction contract and legal documents
used for administer of construction contract?
Submitted Date: -29/02/2023

11. 11
LEARNING OUT COME THREE
3 Administer the regulations relating to OHS, welfare, workers compensation, noise
abatement and working hours.
Administer: - manage and be responsible for the running of (a business, organization, etc.).
OHS: - occupational, health and safety
3.1 OHS and Welfare Act provisions are identified and complied with, on and off the
site.
construction manager" means a competent person responsible for the management of the
physical construction processes and the coordination, administration and management of
resources on a construction site;
"construction site" means a work place where construction work is being performed;
"construction supervisor" means a competent person responsible for supervising construction
activities on a construction site;
"construction vehicle" means a vehicle used as a means of conveyance for transporting
persons or material, or persons and material, on and off the construction site for the purposes of
performing construction work;
"Health and safety file" means a file, or other record containing the information in writing
required by these Regulations.
"Health and safety plan" means a site, activity or project specific documented plan in
accordance with the client's health and safety specification.
"Health and safety specification" means a site, activity or project specific document prepared
by the client pertaining to all health and safety requirements related to construction work;
 It encompasses the social, mental, and physical well-being of workers that is the “whole
person”
 OHS is discipline concerned with preserving and protecting human resources in the work
place.
 OHS deal with all aspects of the health and safety in the work place and has strong focus
on primary prevention of hazards.
3.2 OHS Authority is contacted to determine the necessary approvals or permits prior
to work commencement.
Referred this Art. 2548/civil code. Safety precautions to be taken by the employer
According to WHO (1995), occupational safety and health can be defined as a multidisciplinary
activity aiming at:

12. 12
 Protection and promotion of the health of workers by eliminating occupational factors
and conditions hazardous to health and safety at work.
 Development and promotion of sustainable work environments and work organizations.
Potential hazards for workers in construction include:
 Scaffold collapse
 Falls (from heights)
 Trench collapse
 Electric shock and arc flash/arc blast
 Failure to use proper personal protective equipment.
3.3 Provisions of the Workers Compensation Act are complied with and the rights and
responsibilities of workers are observed to ensure a safe workplace.
All worker has rights worker as well as employees and government, must ensure that these rights
are protected and foster decent condition of labors.
 Work should take place in a safe healthy environment
 Condition of work should be consistent with workers wellbeing and human self-esteem
 The promotion and maintenance of the highest degree of physical, mental social well-
being of workers in all occupation” and the WHO considers occupational health service
to be responsible for the total of worker and, if possible, his or her family.
 Highly education
 Highly skill and training
Work Environment
(Health and Safe)
Individual
(Physical, social and
psychological wellbeing)
Work Place
(Higher productivity)
3.4 Government laws and regulations including those relating to noise abatement and
working hours are adhered to.
Noise is defined as unwanted sound. Sound is any pressure variation or a stimulus
that produces a sensory response in the brain.
The compression and expansion of air created when an object vibrates.
While any worker can be at risk for noise-induced hearing loss in the workplace,
Noise and vibrations likely to injure the health of workers shall be reduced to
practicable levels in every workplace.
General Class of Noise Exposure
There are three general classes into which occupational noise exposure may be grouped.
1. Continuous noise: Normally defined as broadband noise of approximately constant level and
spectrum to which an employee is exposed for a period of eight hours per day or 40 hours a week.

13. 13
2. Intermittent Noise: This may be defined as exposure to a given broadband sound pressure
level several times during a normal working day
3. Impact (impulse) type Noise: is a sharp burst of sound. A sophisticated instrumentation is
necessary to determine the peak levels for this type of noise.
Prevention of noise exposure
OSHA requires a five-phase hearing conservation program for industry:
1. Noise Monitoring
2. Audiometric (Hearing) Testing
3. Employee Training
4. Hearing Protectors
5. Recordkeeping
Art. 1225/civil code. Abuse of ownership. - 1. Principle.
(1) The owner shall not cause noise/nuisance or damage to his neigh bour.
(2) He shall not cause smoke, unpleasant smells, noise or vibration in excess of good in excess of
good neighbourly behaviour.
(3) Regard shall be had to local custom, the position of the lands and
the nature thereof.
Article 42/FDRE. Rights of Labour
1. D women workers have the right to equal pay for equal work.
2. Workers have the right to reasonable limitation of working hours, to rest, to leisure, to
periodic leaves with pay, to remuneration for public holidays as well as healthy and safe
work environment.

14. 14
ASSIGNMENT two
1. List down the Principle of OHS in construction project?
2. What do you understand by occupation health and safety on construction project?
3. What are the main health effects of Noise?

15. 15
LEARNING OUT COME FOUR
4. Implement rehabilitation arrangements
4.1 Rehabilitation arrangements for employees returning from injury or illness are
facilitated and implemented.
Injury management: - is the process of restoring those who are ill or injured to their fullest
physical, psychological and vocational capability. Injury management aims to assist staff members
to return to meaningful and productive work at the highest possible level of functioning following
illness or injury.
The key objectives of Injury Management are:
 to foster and build a strong culture of
early intervention
 to establish a clear process for all
injured staff members once an injury
has been sustained
 to facilitate the safe and early return to
suitable duties for an injured staff
member through effective
communication with all relevant
stakeholders.
Clause 24
(1) Accident or Injury to Workmen
The Employer shall not be liable for or in respect of any damages or compensation payable at law
in respect or in consequence of any accident or injury to any workman or other person in the
employment of the Contractor or any Sub-contractor, save and except an accident or injury
resulting from any act or default of the Employer, his agents, or servants. The Contractor shall
indemnify and keep indemnified the Employer against all such damages and compensation, save

16. 16
and except as aforesaid, and against all claims, proceedings, costs, charges and expenses
whatsoever in respect thereof or in relation thereto.
Clause 30
(1) Extraordinary Traffic
The Contractor shall use every reasonable means to prevent any of the highways or bridges
communicating with or on routes to the Site from being damaged or injured by any traffic of the
Contractor or any of his sub-contractors and, in particular, shall select routes, choose and use
vehicles and restrict and distribute loads so that any such extraordinary traffic as will inevitably
arise from the moving of plant and material from and to the Site shall be limited, as far as
reasonably possible, and so that no unnecessary damage or injury may be occasioned to such
highways and bridges.
Clause 45
No Night or Sunday Work
Subject to any provision to the contrary contained in the Contract, none of the Permanent Works
shall save as hereinafter provided, be carried on during the night or on Sundays, if locally
recognized as days of rest, or their locally recognized equivalent without the permission in writing
of the Engineer's Representative, except when the work is unavoidable or absolutely necessary for
the saving of life or property or for the safety of the Works, in which case the Contractor shall
immediately advise the Engineer's Representative. Provided always that the provisions of this
Clause shall not be applicable in the case of any work which it is customary to carry out by rotary
or double shifts.
Clause 64
Urgent Remedial Work
If, by reason of any accident, or failure, or other event occurring to in or in connection with the
Works, or any part thereof, either during the execution of the Works, or during the period of
Maintenance, any remedial or other work or repair shall, in the opinion of the Engineer or the

17. 17
Engineer's Representative, be urgently necessary for the safety of the Works and the Contractor is
unable or unwilling at once to do such work or repair the Employer may employ and pay other
persons to carry out such work or repair as the Engineer or the Engineer's Representative may
consider necessary. If the Work or repair so done by the Employer is work which, in the opinion
of the Engineer, the Contractor was liable to do at his own expense under the Contract, all expenses
properly incurred by the Employer in so doing shall be recoverable from the Contractor by the
Employer, or may be deducted by the Employer from any monies due or which may become due
to the Contractor. Provided always that the Engineer or the Engineer's Representative, as the case
may be, shall, as soon after the occurrence of any such emergency as may be reasonably
practicable, notify the Contractor thereof in writing.
4.2 Workers returning to work after injury or illness are assisted to regain full
employment status as soon as practicable.
Injury Management Plan:- a specific plan developed by the Insurer for an Employee who has
suffered a Significant Injury. The Injury Management Plan details the treatment, rehabilitation and
retraining of an injured Employee, for the purpose of achieving a timely, safe and durable return
to work.
Recover at Work Plan: -plan prepared by UNSW Global for managing the process of
recovery and return to full pre-Injury work or as close to it as is possible once the Employee has
returned to work. return to work.
Workplace Injury Management Procedure
Category/Business Group
Responsible Officer Head of Human Resources
Contact Officer Return to Work Coordinator
Effective Date
Next Review
INJURED STAFF
Procedure Approval Responsible Officer

18. 18
Purpose
The purpose of this Procedure is to:
A) ensure that all Employees who suffer a workplace injury or illness are supported and
enabled to recover and return to pre-injury wellbeing;
B) ensure that all managers and Employees understand their obligations under Workplace
Health and Safety legislation and Workers Compensation legislation regarding workplace
injuries and illness. This Procedure should be read in conjunction with the Return-to-Work
Program Procedure.
5. ere
6.3 Fair trading practice responsibilities are maintained effectively and efficiently.

19. 19
LEARNING OUTCOME SIX
6. Administer all obligations and observe fair trading practice
6.1. Fair trading practice responsibilities are maintained effectively and
efficiently.
Fair Trade is a trading partnership, based on negotiation, transparency and respect, that
seeks greater equity in national and international trade.
It contributes to sustainable development by offering better trading conditions to, and
securing the rights of workers.
Fairtrade nationally and International’s Constitution lays out some important principles in
managing a global Fairtrade System:
• Equity – recognizing the rights and responsibilities of all Members towards furthering the
objectives of the Association.
• Fairness – recognizing the need for all Members to be treated reasonably and to have their
views heard in decision-making processes.
• Transparency – recognizing the need for Members to share information with each other and to
respect the confidence of such information shared by others.
• Non-discrimination – recognizing the need for rules to apply consistently to all Members.
• Mutual respect – recognizing that a diversity of opinions and experiences can strengthen the
ability of the Association to further its objectives.
• Justice – recognizing the responsibilities of all Members towards the prevention and
elimination of unfair trade practices affecting Fairtrade Producers.
Fair trading system are
1. Manage resources responsibly and ethically are
 Financial Management.
Fairtrade is committed to effective and accountable financial management, and transparency in
our financial operations.

20. 20
 Managing financial resources responsibly, accounting for all monies received and
expended
 Taking action to identify and reduce financial risk
 Ensuring financial management systems are legally
 Adopt best practices as relevant to their country/ies of operation.
 Maintaining Responsible Levels
Reserves are needed for working capital and to cover temporary shortfalls in income.
Unforeseen increases in expenditure so that Members can continue to operate at all times.
As part of any financial and risk management process, the governance bodies of each Member of
Fairtrade nationally and International are responsible for setting out a reserve policy as appropriate
to the size of the organization.
 Fraud and Corrupt Practices
The Fairtrade System recognizes its responsibility to safeguard resources in an economical and
ethical manner.
The Fairtrade System is committed to taking a robust and systematic approach to the prevention
and detection of fraud and other corrupt practices.
Maintaining a culture of honesty, integrity and opposition to fraud and corruption.
Fairtrade Members should adopt clear policies and control plans to prevent, detect and act on any
evidence presented of fraudulent or corrupt practices.
Every individual and organization contracted by Fairtrade should be made aware of their personal
responsibility.
 Value for Money
Committed to delivering value for money as an integral part of our organizational strategy and will
follow efficiency(productivity), effectiveness(success) and economy aligned with Fairtrade’s
ethics and values in order to deliver sustainable impact.
The responsibility for following value for money lies with the governance bodies of each Member.

21. 21
 Ethical Investment and Fundraising
Members are responsible for laying out clear policies for where and how they apply ethical criteria
to applications for, or acceptance.
 Trademark Protection
The name Fairtrade, the Fairtrade symbol and the registered FAIRTRADE certification and
brand trademarks.
Members of Fairtrade’s Association have the right to use the Mark.
2. Strive to be effective and deliver positive impact
 Global Strategy
The line with our vision, mission and values, Fairtrade sets out long term strategic plans over 3–
5-year horizons.
 Key Performance Indicators
Fairtrade is committed to establishing and monitoring its own performance and progress in
relation to the agreed Global Strategy.
Key performance indicators (KPIs) reflecting the specific agreed outcomes and impact of the
Global Strategy.
Reporting into the global system according to their assigned KPIs.
6.2. Best interests of clients are promoted and undertaken conscientiously in
accordance with the agreed contract.
A person whose to increase the sales of specific securities or specific types of securities within a
limited period of time and thus compromise the best interests of their retail customers.
GENERAL OBLIGATIONS
Clause 8 Contractors General Responsibilities
1. The Contractor shall, subject to the provisions of the Contract, and with due care and diligence,
execute and maintain the Works and provide all labour, including the supervision thereof,

22. 22
materials, constructional Plant and all other things, whether of a temporary or permanent
nature, required in and for such execution and maintenance, so far as the necessity for
providing the same is specified in or is reasonable to be inferred from the contract.
2. The Contractor shall take full responsibility for the adequacy, stability and safety of all site
operations and methods of construction, provided that the Contractor shall not be responsible,
except as may be expressly provided in the Contract, for the design or specification of the
Permanent Works, or the design or specification of any Temporary Works prepared by the
Engineer.
3. The Contractor shall promptly inform the Employer and Engineer of any
error, omission, fault and other defect in the design of or specifications for the
works which are discovered when reviewing the Contract documents or in the
process of execution of the Works.
Clause 9 Contract Agreement
The Contractor shall when called upon so to do enter into and execute a Contract Agreement, to
be prepared and completed at the cost of the Employer, in the form annexed with such modification
as may be necessary.

23. 23
LEARNING OUT COME SEVEN
7.1 Use of renewable materials is preferred over non-renewable materials.
 A renewable material is a material made of natural resources that can be replenished,
generation after generation.
 Renewable materials are sustainable materials.
 uses renewable energy resources to generate heat and electricity. Put these renewables in
order from largest to smallest contributors to electricity generation.
 Renewable energy is crucial for being able to reduce the amount of CO2 we are pumping
into the atmosphere and oceans to be able to mitigate dangerous levels of climate change.
 Climate change mitigation is a huge concern for governments around the world and with
an ever-increasing energy demand, especially in newly industrialized countries, we need to
look for different ways of producing energy that is sustainable for future generations.
 The construction sector is responsible for almost 40% of global carbon emissions.
Renewable materials can help improve the industry’s eco-friendliness, as the production of
traditional materials depends on finite resources.
 Renewable energy sources are those that can be replenished easily and are nonpolluting.
Solar power, wind, water, geothermal and biomass are examples of renewable energy
sources.
Non- renewable materials.
 Oil is a non-renewable material that is used in the manufacture of many kinds of energy
products, including gasoline and diesel fuel. Natural gas, which includes several types
of gas--including methane, propane and butane--is often produced as a by product of oil
wells.
 There are four major types of non-renewable resources: oil, natural gas, coal, and
nuclear energy. Oil, natural gas, and coal are collectively called fossil fuels.
7. Comply with
environmental
legislation and its
intent
7.1 Use of renewable materials is preferred over non-renewable materials.
7.2 Low energy materials are used in preference to high energy materials,
where practical.
7.3 Processes to ensure compliance with environmental protection legislation
are implemented.

24. 24
7.2 Low energy materials are used in preference to high energy materials, where practical.
Low energy materials are use
 An energy-efficient home is designed to keep out the wind and rain while reducing energy waste.
Modern homes are built with energy efficiency in mind and are now constructed from a variety of
different materials. They are no longer built using only bricks and mortar.
 Every homeowner should take advantage of the new eco-friendly technological advances in home
building because they're affordable, more efficient and greener.
 The energy efficiency of a building is the extent to which the energy consumption per
square metre of floor area of the building measures up to established energy consumption
benchmarks for that particular type of building under defined climatic conditions.
 Building energy consumption benchmarks are representative values for common building
types against which a building’s actual performance can be compared.
 Governments have a responsibility to ensure that there is secure supply of energy to ensure
economic growth. In many developing countries there is normally very little margin
between existing power supply and electricity demand. With increasing electricity use from
existing consumers and new connections, new generation needs to be brought on line to
meet increasing demand.
 Although renewable sources of electricity such as hydro, geothermal or wind provide
electricity at a much lower cost than electricity generation from petroleum, their capital
outlay is large.
Among the benefits likely to arise from energy efficiency investments in buildings are:
 Reducing energy use for space heating and/or cooling and water heating;
 Reduced electricity use for lighting, office machinery and domestic type appliances;
 Lower maintenance requirements;
 Improved comfort.
 Enhanced property value.

25. 25
7.3 Processes to ensure compliance with environmental protection legislation are
implemented
Constitution of the Federal Democratic Republic of Ethiopia
Article 44. Environmental Rights
1. All persons have the right to a clean and healthy environment.
2. All persons who have been displaced or whose livelihoods have been adversely affected as a
result of State programmes have the right to commensurate monetary or alternative means of
compensation, including relocation with adequate State assistance.
Article 92. environmental Objectives
1. Government shall endeavour to ensure that all Ethiopians live in a clean and healthy
environment.
2. The design and implementation of programmes and projects of development shall not damage
or destroy the environment.
3. People have the right to full consultation and to the expression of views in the planning and
implementation of environmental policies and projects that affect them directly.
4. Government and citizens shall have the duty to protect the environment.
These ‘environmental objectives’ are not merely pious or cosmetic constitutional declarations. Art
85(1) of the Constitution mandates all organs of the Federal and Regional Governments ‘to be
guided’ by these ‘objectives’ in implementing the Constitution, other laws and public policies. The
objectives, thus, do acquire the status of ‘guiding principles’ in the State Governance.
The EPC Proclamation
The EPC Proclamation, inter alia, prohibits a person from polluting or causing any other person to
pollute the environment in violation of the ‘environmental standards’ (hereinafter ESs) to be set

26. 26
by the EPA. Causing environmental pollution is an offence under the Proclamation.13 It authorizes
the EPA or the relevant Regional Environmental Agency (hereinafter the REA) to take an apt
administrative or legal measure, including the closure or relocation of an enterprise, against such
a person. A polluter is required to clean up or pay the cost of cleaning up the polluted environment
as determined by the EPA or the REA.14 For the purposes of preventing environmental pollution,
the Proclamation mandates the EPA to formulate practicable ESs. Art 6 (1) runs: In consultation
with competent agencies, the Authority shall formulate practicable environmental standards based
on scientific and environmental principles.
The sectors that require standards shall include at least the following:
(a) Standards for the discharge of effluents into water bodies and sewage systems.
(b) Air quality standards that specify the ambient air quality and give the allowable amounts of
emission for both stationary and mobile air pollution sources.
(c) Standards for the types and amounts of substances that can be applied to the soil or be disposed
of on or in it.
(d) Standards for noise providing for the maximum allowable noise level taking into account the
settlement patterns and the availability of scientific and technological capacity in the country.
(e) Waste management standards specifying the levels allowed and the methods to be used in the
generation, handling, storage, treatment, transport and disposal of the various types of waste.