CONSTRUCTION CONSTRUCTION CONTRACTS CONTRACTS

DOCUEMENTSDOCUEMENTS

APPLIED CIVIL ENGINEERING DEPTAPPLIED CIVIL ENGINEERING DEPT

BY

LECTURERMaha Muhaisen

CONSTRUCTION CONSTRUCTION DOCUMENTSDOCUMENTS

Contract documents (graphic and written) describe the Contract documents (graphic and written) describe the

proposed construction (the ‘Work’) that results from proposed construction (the ‘Work’) that results from

performing services, furnishing labor, and supplying and performing services, furnishing labor, and supplying and

incorporating materials and equipment into the constructionincorporating materials and equipment into the construction

A.A. Contract FormsContract Forms

B.B. Conditions of the ContractConditions of the Contract

C.C. Specifications & BOQSpecifications & BOQ

D.D. DrawingsDrawings

E.E. AddendaAddenda

F.F. Change OrdersChange Orders

CONSTRUCTION CONSTRUCTION DOCUMENTSDOCUMENTS

A. CONTRACT FORMSA. CONTRACT FORMS CONTRACT FORMSCONTRACT FORMS

Acceptance Letter Acceptance Letter

Agreement Agreement

Performance Bond Performance Bond

Payment Bond Payment Bond

Certificates Certificates

B.CONDITIONS OF CONTRACTB.CONDITIONS OF CONTRACTCONDITIONS OF CONTRACTCONDITIONS OF CONTRACT

Define basic rights, responsibilities, and relationships of the parties involved Define basic rights, responsibilities, and relationships of the parties involved

in the construction project.in the construction project.

2 types: General Conditions and Supplementary Conditions2 types: General Conditions and Supplementary Conditions

GENERAL CONDITIONSGENERAL CONDITIONS

General clauses that establish how the project is to be administered. General clauses that establish how the project is to be administered.

Contain basic expressions of rights, duties, and limitations of the entities Contain basic expressions of rights, duties, and limitations of the entities

involved.involved.

Usually in the form of published standard documents that include principles Usually in the form of published standard documents that include principles

common to most construction Contracts.common to most construction Contracts.

SUPPLEMENTARY CONDITIONSSUPPLEMENTARY CONDITIONS

Modify or supplement general conditions as need to provide for Modify or supplement general conditions as need to provide for

requirements specific to a project. They are not standardized documents requirements specific to a project. They are not standardized documents

and are prepared for specific project needs.and are prepared for specific project needs.

A.1 AgreementA.1 AgreementThe written document signed by the owner and the contractor The written document signed by the owner and the contractor

that is the legal instrument binding the parties to the contract.that is the legal instrument binding the parties to the contract.

Defines the relationship and obligations between owner and Defines the relationship and obligations between owner and

contractor.contractor.

The agreement is quite brief and appears to consist mostly of The agreement is quite brief and appears to consist mostly of statements of fact, whereas the general conditions section statements of fact, whereas the general conditions section deals primarily with matters that pertain generally to be deals primarily with matters that pertain generally to be construction work and the persons involved. construction work and the persons involved.

In other words, the agreement appears to consist of In other words, the agreement appears to consist of statements and the general conditions appear to be terms, or statements and the general conditions appear to be terms, or conditions.conditions.

Acceptance letterAcceptance letter Sent to contractor before the signing the contractSent to contractor before the signing the contract Mention to the contractor offer, and assure the commitment of the Mention to the contractor offer, and assure the commitment of the

contractorcontractor The owner express his acceptance to the contractor offer as it was The owner express his acceptance to the contractor offer as it was

in the form of bid offer, and ask the contractor to start preparation of in the form of bid offer, and ask the contractor to start preparation of the legal and technical steps as it is stipulated in the contract.the legal and technical steps as it is stipulated in the contract.

Signing the authorized signatory and then the contractor is invited to Signing the authorized signatory and then the contractor is invited to submit performance security and signing the contract.submit performance security and signing the contract.

See example of acceptance letterSee example of acceptance letter

AGREEMENTAGREEMENT The agreement should contain:The agreement should contain: The names of contracting parties The names of contracting parties A brief description of the workA brief description of the work A list of contract documents, including agreement, general A list of contract documents, including agreement, general

conditions, drawings, and specifications.conditions, drawings, and specifications. The contract sum, or amount (lump-sum contract)The contract sum, or amount (lump-sum contract) The procedures for paymentThe procedures for payment The contract time, or dates for start and completionThe contract time, or dates for start and completion The signatures of contracting parties and witnessesThe signatures of contracting parties and witnesses International construction documents are also often based International construction documents are also often based

on industry-prepared standard forms.on industry-prepared standard forms.

AGREEMENT FORMAGREEMENT FORM A number of organizations prepare recommended standard A number of organizations prepare recommended standard

general conditions and associated forms. Such as:general conditions and associated forms. Such as: ENAA (Engineering Advancement Association of Japan)ENAA (Engineering Advancement Association of Japan) FIDIC (International Federation of Consulting Engineers)FIDIC (International Federation of Consulting Engineers) ICE (Institute of Civil Engineers, United Kingdom)ICE (Institute of Civil Engineers, United Kingdom) JCT (Joint Contracts Tribunal) JCT (Joint Contracts Tribunal)

SEE ATTACHED WORD FILE FOR SEE ATTACHED WORD FILE FOR EXAMPLESEXAMPLES

A.2 .A.2 .Bonds / Guarantees FORMSBonds / Guarantees FORMS

1-1- PERFORMANCE BOND / securityPERFORMANCE BOND / security

The Contractor, upon receiving the Letter of Acceptance, shall obtain and provide to the The Contractor, upon receiving the Letter of Acceptance, shall obtain and provide to the

Employer before signing the Contract, the Performance Guarantee in the value of ten Employer before signing the Contract, the Performance Guarantee in the value of ten

percent of the Contract Sum, as a guarantee of the proper execution of the Works in percent of the Contract Sum, as a guarantee of the proper execution of the Works in

accordance with the Contract. This guarantee shall be issued by a licensed bank or accordance with the Contract. This guarantee shall be issued by a licensed bank or

financial institution acceptable to the Employer. The guarantee shall be prepared in the financial institution acceptable to the Employer. The guarantee shall be prepared in the

form included in part B of these conditions. The obtaining of such guarantee shall in all form included in part B of these conditions. The obtaining of such guarantee shall in all

respects be at the expense of the Contractor.respects be at the expense of the Contractor.The Performance Security shall be The Performance Security shall be

provided to the Employer no later than the date specified in the Letter of Acceptance and provided to the Employer no later than the date specified in the Letter of Acceptance and

shall be issued in an amount specified in the PCC (particular conditions of contract), by a shall be issued in an amount specified in the PCC (particular conditions of contract), by a

bank or surety acceptable to the Employer, and denominated in the types and bank or surety acceptable to the Employer, and denominated in the types and

proportions of the currencies in which the Contract Price is payable. proportions of the currencies in which the Contract Price is payable.

The Performance Security shall be valid until a date 28 days from the date of issue of the The Performance Security shall be valid until a date 28 days from the date of issue of the

Certificate of Completion in the case of a Bank Guarantee, and until one year from the Certificate of Completion in the case of a Bank Guarantee, and until one year from the

date of issue of the Completion Certificate in the case of a Performance Bond. date of issue of the Completion Certificate in the case of a Performance Bond.

Advanced PAYMENT BONDAdvanced PAYMENT BOND Provide a guarantee that subcontractor, material suppliers, and Provide a guarantee that subcontractor, material suppliers, and

others providing labor, material goods, and services to the project others providing labor, material goods, and services to the project will be paid.will be paid.

• The Employer shall make advance payment to the The Employer shall make advance payment to the Contractor of the amounts stated in the PCC by the date Contractor of the amounts stated in the PCC by the date stated in the PCC, against provision by the Contractor of an stated in the PCC, against provision by the Contractor of an Unconditional Bank Guarantee in a form and by a bank Unconditional Bank Guarantee in a form and by a bank acceptable to the Employer in amounts and currencies equal acceptable to the Employer in amounts and currencies equal to the advance payment. The Guarantee shall remain to the advance payment. The Guarantee shall remain effective until the advance payment has been repaid, but the effective until the advance payment has been repaid, but the amount of the Guarantee shall be progressively reduced by amount of the Guarantee shall be progressively reduced by the amounts repaid by the Contractor. Interest shall not be the amounts repaid by the Contractor. Interest shall not be charged on the advance payment.charged on the advance payment.

• The Contractor is to use the advance payment only to pay for The Contractor is to use the advance payment only to pay for Equipment, Plant, Materials, and mobilization expenses Equipment, Plant, Materials, and mobilization expenses required specifically for execution of the Contract. The required specifically for execution of the Contract. The Contractor shall demonstrate that advance payment has Contractor shall demonstrate that advance payment has been used in this way by supplying copies of invoices or been used in this way by supplying copies of invoices or other documents to the Project Manager.other documents to the Project Manager.

The advance payment shall be repaid by deducting The advance payment shall be repaid by deducting proportionate amounts from payments otherwise due to the proportionate amounts from payments otherwise due to the Contractor, following the schedule of completed percentages of Contractor, following the schedule of completed percentages of the Works on a payment basis. No account shall be taken of the the Works on a payment basis. No account shall be taken of the advance payment or its repayment in assessing valuations of advance payment or its repayment in assessing valuations of work done, Variations, price adjustments, Compensation Events, work done, Variations, price adjustments, Compensation Events, Bonuses, or Liquidated Damages.Bonuses, or Liquidated Damages.

Defect liability SecurityDefect liability Security After primary taking over, 5% guarantee is After primary taking over, 5% guarantee is

submitted to employer for defect liability, submitted to employer for defect liability, valid for 365 days or as stipulated in PCC. valid for 365 days or as stipulated in PCC.

INSURANCE CertificatesINSURANCE Certificates Insurance for Works and Contractor’s Equipment, Insurance for Works and Contractor’s Equipment, Insurance against Injury to Persons and Damage to Insurance against Injury to Persons and Damage to

Property , Property , Insurance for Contractor’s PersonnelInsurance for Contractor’s Personnel

Lecture (6), (7), (8)Lecture (6), (7), (8) Conditions of the contractConditions of the contract

General Conditions of contractGeneral Conditions of contract The conditions are intended to govern and The conditions are intended to govern and

regulate the obligation of formal contract.regulate the obligation of formal contract.

Although the headings and topics included Although the headings and topics included within different sets of GCC vary, there is a within different sets of GCC vary, there is a certain similarity of subject mattercertain similarity of subject matter

Contents of GCCContents of GCC DefinitionsDefinitions Contract documentsContract documents Rights and responsibilities of ownerRights and responsibilities of owner Duties and authorities of engineerDuties and authorities of engineer Rights and responsibilities of contractorRights and responsibilities of contractor Sub-contractor, Separate contractorsSub-contractor, Separate contractors TimeTime Payments and completionsPayments and completions Changes in the workChanges in the work Protection of persons and propertyProtection of persons and property Insurance and bondInsurance and bond DisputesDisputes Termination of contractTermination of contract Miscellaneous provisionsMiscellaneous provisions

FIDIC , AN INTRODUCTIONFIDIC , AN INTRODUCTION

Founded in 1913Founded in 1913 Expanded in 1945 to include 40 national associationsExpanded in 1945 to include 40 national associations Published first Conditions of Contract in 1957Published first Conditions of Contract in 1957 In 2004 has 64 member associationsIn 2004 has 64 member associations Headquarters in SwitzerlandHeadquarters in Switzerland Web Site : www.fidic.orgWeb Site : www.fidic.org

FIDIC , AN INTRODUCTIONFIDIC , AN INTRODUCTION

Pre 1957 – no internationally recognised Pre 1957 – no internationally recognised contract conditionscontract conditions

First “red book” based on UK ICE First “red book” based on UK ICE conditions conditions

FIDIC has international committees to FIDIC has international committees to improve contracts improve contracts

Contract Documents 1999Contract Documents 1999 Conditions of Contract for Construction Conditions of Contract for Construction

(Red Book)(Red Book) Conditions of Contract for Plant & Design Conditions of Contract for Plant & Design

Build (Yellow Book)Build (Yellow Book) Conditions of Contract for EPC Turnkey Conditions of Contract for EPC Turnkey

Projects (Silver Book)Projects (Silver Book) Short Form of Contracts (Green Book)Short Form of Contracts (Green Book)

FIDIC Document UsageFIDIC Document UsageConditions of Contract for Conditions of Contract for

ConstructionConstruction

Works designed by Employer or EngineerWorks designed by Employer or Engineer Contractor Constructs in accordance with Contractor Constructs in accordance with

designs provideddesigns provided May include some design elementsMay include some design elements

FIDIC Document UsageFIDIC Document UsageConditions of Contract for, Plant & Design Conditions of Contract for, Plant & Design

BuildBuild

Electrical & Mechanical PlantElectrical & Mechanical Plant May include building and engineeringMay include building and engineering Design & Execution of worksDesign & Execution of works Contractor designs and constructs in Contractor designs and constructs in

accordance with Employer’s Requirementsaccordance with Employer’s Requirements Engineer AdministersEngineer Administers

FIDIC Document UsageFIDIC Document UsageShort Form of ContractShort Form of Contract

Small capital value projectsSmall capital value projects Simple contentSimple content Contractor constructs to Employer’s Contractor constructs to Employer’s

designsdesigns No “Particular Conditions”No “Particular Conditions” No “Impartial” EngineerNo “Impartial” Engineer

Typical sequence of Principal Typical sequence of Principal Events during ContractsEvents during Contracts

Typical sequence of Payment Events Typical sequence of Payment Events envisaged in Clause 14(contract price envisaged in Clause 14(contract price

and payment)and payment)14.3 ContractorsubmitsStatement to theEmployer

14.6 Employergives Contractornotice of amountconsidered due

14.7 Employermakes thepayment to theContractor

<56d

<28d

Employer verifies the draft final statement, Contractor submits information

14.11 Contractor submits draft final statement to the Employer

14.11 Contractor submits Final Statement and the 14.12 discharge

14.7 employer makes payment

<42d

Each of the monthly (or otherwise) interim payments

The final payment

Typical sequence of Dispute Typical sequence of Dispute Events envisaged in Clause Events envisaged in Clause

2020Party gives notice of intention to refer a dispute to a DAB

20.2 Parties appoint the DAB

20.4 A Party refers a dispute to the DAB

20.4 A Party mayissue a “notice of dissatisfaction”

20.6 A Party may initiate arbitration

Parties present submissions to the DAB

Amicable settlement

<28d <84d <28d <56d

DAB gives its decision

Arbitrator/s appointed

Party gives notice of intention to refer a dispute to a DAB

20.2 Parties appoint the DAB

20.4 A Party refers a dispute to the DAB

20.4 A Party mayissue a “notice of dissatisfaction”

20.6 A Party may initiate arbitration

Parties present submissions to the DAB

Amicable settlement

<28d <84d <28d <56d

DAB gives its decision

Arbitrator/s appointed

DAB: the persons so named in the contract or other persons appointed under sub-clause (appointment of the dispute adjudication board)

FIDIC conditions of contract FIDIC conditions of contract 1 GENERAL PROVISIONS1 GENERAL PROVISIONS

2 THE EMPLOYER .2 THE EMPLOYER .

3 THE ENGINEER3 THE ENGINEER

4 THE CONTRACTOR4 THE CONTRACTOR

5 NOMINATED SUBCONTRACTORS5 NOMINATED SUBCONTRACTORS

6 STAFF AND LABOUR6 STAFF AND LABOUR

7 PLANT, MATERIALS AND WORKMANSHIP7 PLANT, MATERIALS AND WORKMANSHIP

8 COMMENCEMENT, DELAYS AND SUSPENSION8 COMMENCEMENT, DELAYS AND SUSPENSION

9 TESTS ON COMPLETION9 TESTS ON COMPLETION

10 EMPLOYER’S TAKING OVER .10 EMPLOYER’S TAKING OVER .

11 DEFECTS LIABILITY11 DEFECTS LIABILITY

12 MEASUREMENT AND EVALUATION12 MEASUREMENT AND EVALUATION

FIDIC conditions of contract FIDIC conditions of contract (cont’d)(cont’d)

13 VARIATIONS AND ADJUSTMENTS13 VARIATIONS AND ADJUSTMENTS

14 CONTRACT PRICE AND PAYMENT14 CONTRACT PRICE AND PAYMENT

15 TERMINATION BY EMPLOYER15 TERMINATION BY EMPLOYER

16 SUSPENSION AND TERMINATION BY CONTRACTOR16 SUSPENSION AND TERMINATION BY CONTRACTOR

17 RISK AND RESPONSIBILITY17 RISK AND RESPONSIBILITY

18 INSURANCE18 INSURANCE

19 FORCE MAJEURE19 FORCE MAJEURE

20 CLAIMS, DISPUTES AND ARBITRATION20 CLAIMS, DISPUTES AND ARBITRATION

FIDIC conditions of contract FIDIC conditions of contract 1 GENERAL PROVISIONS 1 GENERAL PROVISIONS

1.1 Definitions1.1 Definitions

1.2 Interpretation1.2 Interpretation

1.3 Communications1.3 Communications

1.4 Law and Language1.4 Law and Language

1.5 Priority of Documents1.5 Priority of Documents

1.6 Contract Agreement1.6 Contract Agreement

1.7 Assignment1.7 Assignment

1.8 Care and Supply of Documents1.8 Care and Supply of Documents

1.9 Delayed Drawings or Instructions1.9 Delayed Drawings or Instructions

1.10 Employer’s Use of Contractor’s Documents1.10 Employer’s Use of Contractor’s Documents

1.11 Contractor’s Use of Employer’s Documents1.11 Contractor’s Use of Employer’s Documents

1.12 Confidential Details1.12 Confidential Details

1.13 Compliance with Laws1.13 Compliance with Laws

1.14 Joint and Several Liability1.14 Joint and Several Liability

2 THE EMPLOYER .2 THE EMPLOYER .

2.1 Right of Access to the Site2.1 Right of Access to the Site

2.2 Permits, Licenses or Approvals2.2 Permits, Licenses or Approvals

2.3 Employer’s Personnel2.3 Employer’s Personnel

2.4 Employer’s Financial Arrangements2.4 Employer’s Financial Arrangements

2.5 Employer’s Claims2.5 Employer’s Claims

3 THE ENGINEER3 THE ENGINEER

3.1 Engineer’s Duties and Authority3.1 Engineer’s Duties and Authority

3.2 Delegation by the Engineer3.2 Delegation by the Engineer

3.3 Instructions of the Engineer3.3 Instructions of the Engineer

3.4 Replacement of the Engineer3.4 Replacement of the Engineer

3.5 Determinations3.5 Determinations

FIDIC conditions of contract cont’d FIDIC conditions of contract cont’d

4 THE CONTRACTOR 4 THE CONTRACTOR

4.1 Contractor’s General Obligations4.1 Contractor’s General Obligations

4.2 Performance Security4.2 Performance Security

4.3 Contractor’s Representative4.3 Contractor’s Representative

4.4 Subcontractors4.4 Subcontractors

4.5 Assignment of Benefit of Subcontract4.5 Assignment of Benefit of Subcontract

4.6 Co-operation4.6 Co-operation

4.7 Setting Out4.7 Setting Out

4.8 Safety Procedures4.8 Safety Procedures

4.9 Quality Assurance4.9 Quality Assurance

4.10 Site Data4.10 Site Data

4.11 Sufficiency of the Accepted Contract Amount4.11 Sufficiency of the Accepted Contract Amount

4.12 Unforeseeable Physical Conditions4.12 Unforeseeable Physical Conditions

4.13 Rights of Way and Facilities4.13 Rights of Way and Facilities

FIDIC conditions of contract cont’d FIDIC conditions of contract cont’d

4.14 Avoidance of Interference4.14 Avoidance of Interference

4.15 Access Route4.15 Access Route

4.16 Transport of Goods4.16 Transport of Goods

4.17 Contractor’s Equipment4.17 Contractor’s Equipment

4.18 Protection of the Environment4.18 Protection of the Environment

4.19 Electricity, Water and Gas4.19 Electricity, Water and Gas

4.20 Employer’s Equipment and Free-Issue Material4.20 Employer’s Equipment and Free-Issue Material

4.21 Progress Reports4.21 Progress Reports

4.22 Security of the Site4.22 Security of the Site

4.23 Contractor’s Operations on Site4.23 Contractor’s Operations on Site

4.24 Fossils4.24 Fossils

5 NOMINATED SUBCONTRACTORS 5 NOMINATED SUBCONTRACTORS

5.1 Definition of “nominated Subcontractor”5.1 Definition of “nominated Subcontractor”

5.2 Objection to Nomination5.2 Objection to Nomination

5.3 Payments to nominated Subcontractors5.3 Payments to nominated Subcontractors

5.4 Evidence of Payments5.4 Evidence of Payments

6 STAFF AND LABOUR 6 STAFF AND LABOUR

6.1 Engagement of Staff and Labour6.1 Engagement of Staff and Labour

6.2 Rates of Wages and Conditions of Labour6.2 Rates of Wages and Conditions of Labour

6.3 Persons in the Service of Employer6.3 Persons in the Service of Employer

6.4 Labour Laws6.4 Labour Laws

6.5 Working Hours6.5 Working Hours

6.6 Facilities for Staff and Labour6.6 Facilities for Staff and Labour

6.7 Health and Safety6.7 Health and Safety

6.8 Contractor’s Superintendence6.8 Contractor’s Superintendence

6.9 Contractor’s Personnel6.9 Contractor’s Personnel

6.10 Records of Contractor’s Personnel and Equipment6.10 Records of Contractor’s Personnel and Equipment

6.11 Disorderly Conduct6.11 Disorderly Conduct

6.12 Foreign Personnel6.12 Foreign Personnel

6.13 Supply of Foodstuffs6.13 Supply of Foodstuffs

6.14 Supply of Water6.14 Supply of Water

6.15 Measures against Insect and Pest Nuisance6.15 Measures against Insect and Pest Nuisance

6.16 Alcoholic Liquor or Drugs6.16 Alcoholic Liquor or Drugs

6.17 Arms and Ammunition6.17 Arms and Ammunition

6.18 Festival and Religious Customs6.18 Festival and Religious Customs

6.19 Funeral Arrangements6.19 Funeral Arrangements

6.20 Prohibition of Forced or Compulsory Labor6.20 Prohibition of Forced or Compulsory Labor

6.21 Prohibition of Harmful Child Labour6.21 Prohibition of Harmful Child Labour

6.22 Employment Records of Workers6.22 Employment Records of Workers

7 PLANT, MATERIALS AND WORKMANSHIP 7 PLANT, MATERIALS AND WORKMANSHIP

7.1 Manner of Execution7.1 Manner of Execution

7.2 Samples7.2 Samples

7.3 Inspection7.3 Inspection

7.4 Testing7.4 Testing

7.5 Rejection7.5 Rejection

7.6 Remedial Work7.6 Remedial Work

7.7 Ownership of Plant and Materials7.7 Ownership of Plant and Materials

7.8 Royalties7.8 Royalties

8 COMMENCEMENT, DELAYS AND SUSPENSION8 COMMENCEMENT, DELAYS AND SUSPENSION

8.1 Commencement of Works8.1 Commencement of Works

8.2 Time for Completion8.2 Time for Completion

8.3 Programme8.3 Programme

8.4 Extension of Time for Completion8.4 Extension of Time for Completion

8.5 Delays Caused by Authorities8.5 Delays Caused by Authorities

8.6 Rate of Progress8.6 Rate of Progress

8.7 Delay Damages8.7 Delay Damages

8.8 Suspension of Work8.8 Suspension of Work

8.9 Consequences of Suspension8.9 Consequences of Suspension

8.10 Payment for Plant and Materials in Event of Suspension8.10 Payment for Plant and Materials in Event of Suspension

8.11 Prolonged Suspension8.11 Prolonged Suspension

8.12 Resumption of Work8.12 Resumption of Work

9 TESTS ON COMPLETION9 TESTS ON COMPLETION

9.1 Contractor’s Obligations9.1 Contractor’s Obligations

9.2 Delayed Tests9.2 Delayed Tests

9.3 Retesting9.3 Retesting

9.4 Failure to Pass Tests on Completion9.4 Failure to Pass Tests on Completion

10 EMPLOYER’S TAKING OVER 10 EMPLOYER’S TAKING OVER

10.1 Taking Over of the Works and Sections10.1 Taking Over of the Works and Sections

10.2 Taking Over of Parts of the Works10.2 Taking Over of Parts of the Works

10.3 Interference with Tests on Completion10.3 Interference with Tests on Completion

10.4 Surfaces Requiring Reinstatement10.4 Surfaces Requiring Reinstatement

11 DEFECTS LIABILITY11 DEFECTS LIABILITY

11.1 Completion of Outstanding Work and Remedying Defects11.1 Completion of Outstanding Work and Remedying Defects

11.2 Cost of Remedying Defects11.2 Cost of Remedying Defects

11.3 Extension of Defects Notification Period11.3 Extension of Defects Notification Period

11.4 Failure to Remedy Defects11.4 Failure to Remedy Defects

11.5 Removal of Defective Work11.5 Removal of Defective Work

11.6 Further Tests11.6 Further Tests

11.7 Right of Access11.7 Right of Access

11.8 Contractor to Search11.8 Contractor to Search

11.9 Performance Certificate11.9 Performance Certificate

11.10 Unfulfilled Obligations11.10 Unfulfilled Obligations

11.11 Clearance of Site11.11 Clearance of Site

12 MEASUREMENT AND EVALUATION . 12 MEASUREMENT AND EVALUATION . 12.1 Works to be Measured12.1 Works to be Measured 12.2 Method of Measurement12.2 Method of Measurement 12.3 Evaluation12.3 Evaluation 12.4 Omissions12.4 Omissions 13 VARIATIONS AND ADJUSTMENTS13 VARIATIONS AND ADJUSTMENTS 13.1 Right to Vary13.1 Right to Vary 13.2 Value Engineering13.2 Value Engineering 13.3 Variation Procedure13.3 Variation Procedure 13.4 Payment in Applicable Currencies13.4 Payment in Applicable Currencies 13.5 Provisional Sums13.5 Provisional Sums 13.6 Daywork13.6 Daywork 13.7 Adjustments for Changes in Legislation13.7 Adjustments for Changes in Legislation 13.8 Adjustments for Changes in Cost13.8 Adjustments for Changes in Cost

14 CONTRACT PRICE AND PAYMENT14 CONTRACT PRICE AND PAYMENT

14.1 The Contract Price14.1 The Contract Price

14.2 Advance Payment14.2 Advance Payment

14.3 Application for Interim Payment Certificates14.3 Application for Interim Payment Certificates

14.4 Schedule of Payments14.4 Schedule of Payments

14.5 Plant and Materials intended for the Works14.5 Plant and Materials intended for the Works

14.6 Issue of Interim Payment Certificates14.6 Issue of Interim Payment Certificates

14.7 Payment14.7 Payment

14.8 Delayed Payment14.8 Delayed Payment

14.9 Payment of Retention Money14.9 Payment of Retention Money

14.10 Statement at Completion14.10 Statement at Completion

14.11 Application for Final Payment Certificate14.11 Application for Final Payment Certificate

14.12 Discharge14.12 Discharge

14.13 Issue of Final Payment Certificate14.13 Issue of Final Payment Certificate

14.14 Cessation of Employer’s Liability14.14 Cessation of Employer’s Liability

14.15 Currencies of Payment14.15 Currencies of Payment

15 TERMINATION BY EMPLOYER15 TERMINATION BY EMPLOYER

15.1 Notice to Correct15.1 Notice to Correct

15.2 Termination by Employer15.2 Termination by Employer

15.3 Valuation at Date of Termination15.3 Valuation at Date of Termination

15.4 Payment after Termination15.4 Payment after Termination

15.5 Employer’s Entitlement to Termination for Convenience15.5 Employer’s Entitlement to Termination for Convenience

15.6 Corrupt or Fraudulent Practices15.6 Corrupt or Fraudulent Practices

16 SUSPENSION AND TERMINATION BY CONTRACTOR16 SUSPENSION AND TERMINATION BY CONTRACTOR

16.1 Contractor’s Entitlement to Suspend Work16.1 Contractor’s Entitlement to Suspend Work

16.2 Termination by Contractor16.2 Termination by Contractor

16.3 Cessation of Work and Removal of Contractor’s Equipment16.3 Cessation of Work and Removal of Contractor’s Equipment

16.4 Payment on Termination16.4 Payment on Termination

17 RISK AND RESPONSIBILITY17 RISK AND RESPONSIBILITY

17.1 Indemnities17.1 Indemnities

17.2 Contractor’s Care of the Works17.2 Contractor’s Care of the Works

17.3 Employer’s Risks17.3 Employer’s Risks

17.4 Consequences of Employer’s Risks17.4 Consequences of Employer’s Risks

17.5 Intellectual and Industrial Property Rights17.5 Intellectual and Industrial Property Rights

17.6 Limitation of Liability17.6 Limitation of Liability

17.7 Use of Employer’s Accommodation/Facilities17.7 Use of Employer’s Accommodation/Facilities

18 INSURANCE18 INSURANCE

18.1 General Requirements for Insurances18.1 General Requirements for Insurances

18.2 Insurance for Works and Contractor’s Equipment18.2 Insurance for Works and Contractor’s Equipment

18.3 Insurance against Injury to Persons and Damage to Property18.3 Insurance against Injury to Persons and Damage to Property

18.4 Insurance for Contractor’s Personnel18.4 Insurance for Contractor’s Personnel

19 FORCE MAJEURE19 FORCE MAJEURE

19.1 Definition of Force Majeure19.1 Definition of Force Majeure

19.2 Notice of Force Majeure19.2 Notice of Force Majeure

19.3 Duty to Minimize Delay19.3 Duty to Minimize Delay

19.4 Consequences of Force Majeure19.4 Consequences of Force Majeure

19.5 Force Majeure Affecting Subcontractor19.5 Force Majeure Affecting Subcontractor

19.6 Optional Termination, Payment and Release19.6 Optional Termination, Payment and Release

19.7 Release from Performance19.7 Release from Performance

20 CLAIMS, DISPUTES AND ARBITRATION20 CLAIMS, DISPUTES AND ARBITRATION

20.1 Contractor’s Claims20.1 Contractor’s Claims

20.2 Appointment of the Dispute Board20.2 Appointment of the Dispute Board

20.3 Failure to Agree on the Composition of the Dispute Board20.3 Failure to Agree on the Composition of the Dispute Board

20.4 Obtaining Dispute Board’s Decision20.4 Obtaining Dispute Board’s Decision

20.5 Amicable Settlement20.5 Amicable Settlement

20.6 Arbitration20.6 Arbitration

20.7 Failure to Comply with Dispute Board’s Decision20.7 Failure to Comply with Dispute Board’s Decision

20.8 Expiry of Dispute Board’s Appointment20.8 Expiry of Dispute Board’s Appointment

1.11.1 DefinitionsDefinitions 1.1.1. Contract : include contract agreement, letter of acceptance, 1.1.1. Contract : include contract agreement, letter of acceptance,

letter of tender, specifications, drawings, schedules, tender, letter of tender, specifications, drawings, schedules, tender, appendix to tender, bill of quantities.appendix to tender, bill of quantities.

1.1.2 parties and persons : party, employer, contractor, engineer, 1.1.2 parties and persons : party, employer, contractor, engineer, contractor representative, employers' personnel, contractors contractor representative, employers' personnel, contractors personnel, sub- contractor, DAB (dispute adjudication board), Fidic.personnel, sub- contractor, DAB (dispute adjudication board), Fidic.

1.1.3 Dates , tests, periods and completion include base date, 1.1.3 Dates , tests, periods and completion include base date, commencement date, time of completion, test on completion, taking commencement date, time of completion, test on completion, taking over certificate, defects notification period, performance certificate, over certificate, defects notification period, performance certificate, dayday

1.1.4 money and payement: acceted contract amount, contract 1.1.4 money and payement: acceted contract amount, contract price, cost, final , interim payement certificate, currency, provisional price, cost, final , interim payement certificate, currency, provisional sum, retension money, sum, retension money,

General conditionsGeneral conditions

The following are main items that include The following are main items that include in the general conditions for the tender ( or in the general conditions for the tender ( or the construction contract.the construction contract.

11 : : definitionsdefinitions The main definitions that are included in and repeated in the articles The main definitions that are included in and repeated in the articles

of general conditions, are:of general conditions, are: Employer : "Employer" The party named in the Contract as the Employer : "Employer" The party named in the Contract as the

"FIRST PARTY" who will enter into contract with the Contractor for "FIRST PARTY" who will enter into contract with the Contractor for the execution of the Works covered by the Contract, or any other the execution of the Works covered by the Contract, or any other party authorized by the Employer to exercise the powers and party authorized by the Employer to exercise the powers and obligations of the First Party, provided that the Contractor will be obligations of the First Party, provided that the Contractor will be informed accordingly in writing .informed accordingly in writing .

Contractor : "Contractor" - The person, company or joint venture Contractor : "Contractor" - The person, company or joint venture named as Second Party in the Contract whose Tender has been named as Second Party in the Contract whose Tender has been accepted by the Employer and with whom the Employer has entered accepted by the Employer and with whom the Employer has entered into Contract, and includes the Contractors personal agents and his into Contract, and includes the Contractors personal agents and his legal successors legal successors

Engineer" - The Consulting office, or Engineering office or Engineer Engineer" - The Consulting office, or Engineering office or Engineer or any other technical body appointed from time to time by the or any other technical body appointed from time to time by the Employer to exercise in whole or in part the powers of the Engineer Employer to exercise in whole or in part the powers of the Engineer in accordance with the Conditions of the Contract provided that the in accordance with the Conditions of the Contract provided that the Contractor shall be accordingly notified in writing.Contractor shall be accordingly notified in writing.

Article 1 : definitionsArticle 1 : definitions "Engineers Representative" - Any resident engineer, or clerk of works "Engineers Representative" - Any resident engineer, or clerk of works

appointed by the Engineer from time to time appointed by the Engineer from time to time "Contract" - The documents constituting these Conditions (Parts I and II), the "Contract" - The documents constituting these Conditions (Parts I and II), the

Specification, the Drawings, the Bill of Quantities, the Tender, the Letter of Specification, the Drawings, the Bill of Quantities, the Tender, the Letter of Acceptance, the Contract Agreement, and such further documents as may Acceptance, the Contract Agreement, and such further documents as may be expressly incorporated in the Letter of Acceptance or Contract be expressly incorporated in the Letter of Acceptance or Contract Agreement (if completed).Agreement (if completed).

"Contract Sum" - The sum stated in the Letter of Acceptance as payable to "Contract Sum" - The sum stated in the Letter of Acceptance as payable to the Contractor for the execution and completion of the Works and the the Contractor for the execution and completion of the Works and the remedying of any defects therein in accordance with the provisions of the remedying of any defects therein in accordance with the provisions of the Contract, subject to such additions thereto or deductions therefrom as may Contract, subject to such additions thereto or deductions therefrom as may be made under the provisions of the Contract.be made under the provisions of the Contract.

Equipment is the Contractor’s machinery and vehicles brought temporarily to Equipment is the Contractor’s machinery and vehicles brought temporarily to the Site to construct the Works.the Site to construct the Works.

"Site" - The land and other places provided by the Employer or designated "Site" - The land and other places provided by the Employer or designated as such where the Works are to be executed, and any other places as such where the Works are to be executed, and any other places specifically designated in the Contract as forming part of the Site.specifically designated in the Contract as forming part of the Site.

approval (written approval)approval (written approval) time (calendar / working days)time (calendar / working days)

22 . .Engineer's Duties and Engineer's Duties and AuthorityAuthority

a)a) The Engineer shall carry out the duties specified in the Contract .The Engineer shall carry out the duties specified in the Contract . b)b) The Engineer shall exercise the authority specified in or The Engineer shall exercise the authority specified in or

necessarily to be implied from the Contract .necessarily to be implied from the Contract . Provided, that the Engineer shall obtain the specific approval of Provided, that the Engineer shall obtain the specific approval of

the Employer, in compliance with the terms of his appointment, and after the Employer, in compliance with the terms of his appointment, and after submitting his recommendations to the Employer in writing, in the submitting his recommendations to the Employer in writing, in the following matters :following matters :

(i)(i) "issuing variation orders";"issuing variation orders"; (ii)(ii) "deciding on the extension of Time for Completion and applying "deciding on the extension of Time for Completion and applying

the Liquidated Damages Clause";the Liquidated Damages Clause"; (iii)(iii) "approving the appointment of Subcontractors";"approving the appointment of Subcontractors"; (iv)(iv) "notifying the Contractor on suspension of Works";(and any "notifying the Contractor on suspension of Works";(and any

other matters as may be set out in Part II of these conditions).other matters as may be set out in Part II of these conditions). (c)(c) Except as expressly stated in the Contract, the Engineer shall Except as expressly stated in the Contract, the Engineer shall

have no authority to relieve the Contractor of any of his obligations under have no authority to relieve the Contractor of any of his obligations under the Contract the Contract

Engineer's RepresentativeEngineer's Representative The Engineer's Representative shall be The Engineer's Representative shall be

appointed by and be responsible to the Engineer appointed by and be responsible to the Engineer and shall carry out such duties of watching and and shall carry out such duties of watching and supervising the execution and workmanship of supervising the execution and workmanship of the Works and to test and examine any the Works and to test and examine any materials to be used or workshop employed in materials to be used or workshop employed in connection with the Works. He shall exercise connection with the Works. He shall exercise such authority as may be delegated to him by such authority as may be delegated to him by the Engineer the Engineer

Engineer's Authority to DelegateEngineer's Authority to Delegate The Engineer may from time to time delegate to the Engineer's The Engineer may from time to time delegate to the Engineer's

Representative any of the duties and authorities vested in the Engineer Representative any of the duties and authorities vested in the Engineer and he may at any time revoke such delegation. Any such delegation or and he may at any time revoke such delegation. Any such delegation or revocation shall be in writing and shall not take effect until a copy thereof revocation shall be in writing and shall not take effect until a copy thereof has been delivered to the Employer and the Contractor .has been delivered to the Employer and the Contractor .

Any communication given by the Engineer's Representative to the Any communication given by the Engineer's Representative to the Contractor in accordance with such delegation shall have the same effect Contractor in accordance with such delegation shall have the same effect as though it had been given by the Engineer as though it had been given by the Engineer

Provided that :Provided that : (a)(a) any failure of the Engineer's Representative to disapprove any any failure of the Engineer's Representative to disapprove any

work, materials or Plant shall not prejudice the authority of the Engineer work, materials or Plant shall not prejudice the authority of the Engineer to disapprove such work, material or Plant and to give instructions for the to disapprove such work, material or Plant and to give instructions for the rectification thereof;rectification thereof;

(b)(b) if the Contractor questions any communication of the Engineers if the Contractor questions any communication of the Engineers Representative, he may refer the matter to the Engineer who shall Representative, he may refer the matter to the Engineer who shall confirm, reverse or vary the contents of such communication .confirm, reverse or vary the contents of such communication .

33 . .Contractor’s GeneralContractor’s GeneralObligationsObligations

The Contractor shall design (to the extent specified in the The Contractor shall design (to the extent specified in the Contract), execute and complete the Works in accordance with Contract), execute and complete the Works in accordance with the Contract and with the Engineer’s instructions, and shall the Contract and with the Engineer’s instructions, and shall remedy any defects in the Works.remedy any defects in the Works.

The Contractor shall provide the Plant and Contractor’s The Contractor shall provide the Plant and Contractor’s Documents specified in the Contract, and all Contractor’s Documents specified in the Contract, and all Contractor’s Personnel, Goods, consumables and other things and services, Personnel, Goods, consumables and other things and services, whether of a temporary or permanent nature, required in and whether of a temporary or permanent nature, required in and for this design, execution, completion and remedying of defects.for this design, execution, completion and remedying of defects.

The Contractor shall be responsible for the adequacy, stability The Contractor shall be responsible for the adequacy, stability and safety of all Site operations and of all methods of and safety of all Site operations and of all methods of construction. Except to the extent specified in the Contract, the construction. Except to the extent specified in the Contract, the Contractor (i) shall be responsible for all Contractor’s Contractor (i) shall be responsible for all Contractor’s Documents, Temporary Works, and such design of each item of Documents, Temporary Works, and such design of each item of Plant and Materials as is required for the item to be in Plant and Materials as is required for the item to be in accordance with the Contract, and (ii) shall not otherwise be accordance with the Contract, and (ii) shall not otherwise be responsible for the design or specification of the Permanent responsible for the design or specification of the Permanent Works.Works.

Contractor’s GeneralContractor’s GeneralObligationsObligations

The Contractor shall, whenever required by the The Contractor shall, whenever required by the Engineer, submit details of the arrangements and Engineer, submit details of the arrangements and methods which the Contractor proposes to adopt for the methods which the Contractor proposes to adopt for the execution of the Works. No significant alteration to these execution of the Works. No significant alteration to these arrangements and methods shall be made without this arrangements and methods shall be made without this having previously been notified to the Engineer.having previously been notified to the Engineer.

If the Contract specifies that the Contractor shall design If the Contract specifies that the Contractor shall design any part of the Permanent Works, then unless otherwise any part of the Permanent Works, then unless otherwise stated in the Particular Conditions: stated in the Particular Conditions:

(a) the Contractor shall submit to the Engineer the (a) the Contractor shall submit to the Engineer the Contractor’s Documents for this part in accordance with Contractor’s Documents for this part in accordance with the procedures specified in the Contract;the procedures specified in the Contract;

(b) these Contractor’s Documents shall be in accordance (b) these Contractor’s Documents shall be in accordance with the Specification and Drawings, shall be written in with the Specification and Drawings, shall be written in the language for communicationsthe language for communications