CONSTRUCTION CONSTRUCTION CONTRACTS CONTRACTS

DOCUEMENTSDOCUEMENTS

APPLIED CIVIL ENGINEERING DEPTAPPLIED CIVIL ENGINEERING DEPT

BY

LECTURERMaha Muhaisen

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

General conditionsGeneral conditions

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

DefinitionsDefinitions

Main definitions related to :Main definitions related to : Contract :Contract : include contract agreement, letter of acceptance, letter of include contract agreement, letter of acceptance, letter of

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

parties and personsparties and persons : : party, employer, contractor, engineer, 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.

Dates , tests, periods and completionDates , tests, periods and completion include base date, 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

Money and payment:Money and payment: accepted contract amount, contract price, accepted contract amount, contract price, cost, final , interim payment certificate, currency, provisional sum, cost, final , interim payment certificate, currency, provisional sum, retention money, retention money,

DefinitionsDefinitions The main definitions that are included in and repeated in the articles of The main definitions that are included in and repeated in the articles of

general conditions, are:general conditions, are: Employer :Employer : The party named in the Contract as the "FIRST PARTY" who The party named in the Contract as the "FIRST PARTY" who

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

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

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

Definitions, Cont’dDefinitions, Cont’d Engineers RepresentativeEngineers Representative - Any resident engineer, or clerk of works appointed by - Any resident engineer, or clerk of works appointed by

the Engineer from time to time the Engineer from time to time Contract -Contract - The documents constituting these Conditions (Parts I and II), the 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 be Acceptance, the Contract Agreement, and such further documents as may be expressly incorporated in the Letter of Acceptance or Contract Agreement (if expressly incorporated in the Letter of Acceptance or Contract Agreement (if completed).completed).

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

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

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

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

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 : issuing variation orders;issuing variation orders; deciding on the extension of Time for Completion and deciding on the extension of Time for Completion and

applying the Liquidated Damages Clause;applying the Liquidated Damages Clause; approving the appointment of Subcontractors;approving the appointment of Subcontractors; 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 other matters as may be set out in Part II of these conditions).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 and appointed by and be responsible to the Engineer and shall carry out such duties of watching and shall carry out such duties of watching and supervising the execution and workmanship of the supervising the execution and workmanship of the Works and to test and examine any materials to be Works and to test and examine any materials to be used or workshop employed in connection with the used or workshop employed in connection with the Works. He shall exercise such authority as may be Works. He shall exercise such authority as may be delegated to him by the Engineer delegated to him by 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 Representative any of the duties and authorities vested in the Engineer and he may at any time revoke such delegation. Any Engineer and he may at any time revoke such delegation. Any such delegation or revocation shall be in writing and shall not take such delegation or revocation shall be in writing and shall not take effect until a copy thereof has been delivered to the Employer and effect until a copy thereof has been delivered to the Employer and the Contractor .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 Contractor in accordance with such delegation shall have the same effect as though it had been given by the Engineer same effect 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 work, materials or Plant shall not prejudice the authority of the Engineer to disapprove such work, material or Plant and to give Engineer to disapprove such work, material or Plant and to give instructions for the rectification thereofinstructions for the 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 .

Contractor’s General ObligationsContractor’s General Obligations

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

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

The Contractor shall be responsible for the adequacy, stability and safety of The Contractor shall be responsible for the adequacy, stability and safety of all Site operations and of all methods of construction. Except to the extent all Site operations and of all methods of construction. Except to the extent specified in the Contract, the Contractor :specified in the Contract, the Contractor : shall be responsible for all Contractor’s Documents, shall be responsible for all Contractor’s Documents,

Temporary Works, and such design of each item of Plant and Temporary Works, and such design of each item of Plant and Materials as is required for the item to be in accordance with Materials as is required for the item to be in accordance with the Contract, and the Contract, and

shall not otherwise be responsible for the design or shall not otherwise be responsible for the design or specification of the Permanent Works.specification of the Permanent Works.

Contractor’s General Obligations, Contractor’s General Obligations,

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

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

A.A. the Contractor shall submit to the Engineer the Contractor’s the Contractor shall submit to the Engineer the Contractor’s Documents for this part in accordance with the procedures Documents for this part in accordance with the procedures specified in the Contract;specified in the Contract;

B.B. these Contractor’s Documents shall be in accordance with these Contractor’s Documents shall be in accordance with the Specification and Drawings, shall be written in the the Specification and Drawings, shall be written in the language for communicationslanguage for communications

ASSIGNMENT AND SUBCONTRACTINGASSIGNMENT AND ASSIGNMENT AND SUBCONTRACTINGASSIGNMENT AND SUBCONTRACTINGSUBCONTRACTING

Assignment of ContractAssignment of ContractThe Contractor shall not, without the prior consent of the Employer, assign The Contractor shall not, without the prior consent of the Employer, assign

the Contract or any part thereof, or benefit or interest therein or the Contract or any part thereof, or benefit or interest therein or thereunder, otherwise than by :thereunder, otherwise than by :

a charge in favor of the Contractor's bankers of any moneys due or a charge in favor of the Contractor's bankers of any moneys due or to become due under the Contract, orto become due under the Contract, or

assignment to the Contractor's insurers of the Contractor's right to assignment to the Contractor's insurers of the Contractor's right to obtain relief against any other party liable.obtain relief against any other party liable.

SubcontractingSubcontractingThe Contractor shall not subcontract the whole of the Works. Except The Contractor shall not subcontract the whole of the Works. Except where otherwise provided by the Contract, the Contractor shall not where otherwise provided by the Contract, the Contractor shall not subcontract any part of the Works without the prior consent of the subcontract any part of the Works without the prior consent of the Engineer. Any such consent shall not relieve the Contractor from any Engineer. Any such consent shall not relieve the Contractor from any liability or obligation under the Contract and he shall be responsible for liability or obligation under the Contract and he shall be responsible for the acts, defaults and neglects of any Subcontractor, his agents, the acts, defaults and neglects of any Subcontractor, his agents, servants or workmen as fully as if they were the acts, defaults or servants or workmen as fully as if they were the acts, defaults or neglects of the Contractor, his agents, servants or workmen.neglects of the Contractor, his agents, servants or workmen.

Provided thatProvided that the Contractor shall not be required to obtain the Contractor shall not be required to obtain such consent for :such consent for :

(a)(a) the provision of labor, orthe provision of labor, or (b)(b) the subcontracting of any part of the Works for which the the subcontracting of any part of the Works for which the

Subcontractor is named in the Contract.Subcontractor is named in the Contract.

Assignment of Subcontractor's ObligationsAssignment of Subcontractor's ObligationsIn the event of a Subcontractor having undertaken In the event of a Subcontractor having undertaken towards the Contractor in respect of the work towards the Contractor in respect of the work executed, or the goods, materials, Plant or services executed, or the goods, materials, Plant or services supplied by such Subcontractor, any continuing supplied by such Subcontractor, any continuing obligation extending for a period exceeding that of obligation extending for a period exceeding that of the Defects Liability Period under the Contract, the the Defects Liability Period under the Contract, the Contractor shall at any time, after the expiration of Contractor shall at any time, after the expiration of such Period, assign to the Employer, at the such Period, assign to the Employer, at the Employer's request and cost, the benefit of such Employer's request and cost, the benefit of such obligation for the unexpired duration thereof.obligation for the unexpired duration thereof.

Language and LawLanguage and Law

Arabic language shall be the ruling language of the Arabic language shall be the ruling language of the Contract Documents unless stated otherwise in Contract Documents unless stated otherwise in these conditions, and consequently all these conditions, and consequently all correspondence, payment statements, and take-correspondence, payment statements, and take-over certificates shall be drawn in this language.over certificates shall be drawn in this language.

Priority of Contract DocumentsPriority of Contract Documents The several documents forming the Contract are to be taken The several documents forming the Contract are to be taken

as mutually explanatory of one another, but in case of ambiguities or as mutually explanatory of one another, but in case of ambiguities or discrepancies the same shall be explained and adjusted by the discrepancies the same shall be explained and adjusted by the Engineer who shall thereupon issue to the Contractor instructions Engineer who shall thereupon issue to the Contractor instructions thereon and in such event, unless otherwise provided in the Contract, thereon and in such event, unless otherwise provided in the Contract, the priority of the documents forming the Contract shall be as follows:the priority of the documents forming the Contract shall be as follows:(1)(1) The Contract Agreement (if completed);The Contract Agreement (if completed);(2)(2) The Letter of Acceptance;The Letter of Acceptance;(3)(3) The Tender;The Tender;(4)(4) Part II of these Conditions;Part II of these Conditions;(5)(5) Part I of these Conditions; andPart I of these Conditions; and(6)(6) Any other document forming part of the Contract.Any other document forming part of the Contract.

Performance SecurityPerformance Security

The Contractor, upon receiving the Letter of Acceptance, The Contractor, upon receiving the Letter of Acceptance, shall obtain and provide to the Employer before signing the shall obtain and provide to the Employer before signing the Contract, the Performance Guarantee in the value of ten Contract, the Performance Guarantee in the value of ten percent of the Contract Sum, as a guarantee of the proper percent of the Contract Sum, as a guarantee of the proper execution of the Works in accordance with the Contract. execution of the Works in accordance with the Contract. This guarantee shall be issued by a licensed bank or This guarantee shall be issued by a licensed bank or financial institution acceptable to the Employer. The financial institution acceptable to the Employer. The guarantee shall be prepared in the form included in part B guarantee shall be prepared in the form included in part B of these conditions. The obtaining of such guarantee shall of these conditions. The obtaining of such guarantee shall in all respects be at the expense of the Contractor. in all respects be at the expense of the Contractor.

Inspection of SiteInspection of Site The Employer shall have made available to the Contractor, before the submission The Employer shall have made available to the Contractor, before the submission

by the Contractor of the Tender, such data on hydrological and sub - surface by the Contractor of the Tender, such data on hydrological and sub - surface conditions as have been obtained by or on behalf of the Employer from conditions as have been obtained by or on behalf of the Employer from investigations undertaken relevant to the Works but the Contractor shall be investigations undertaken relevant to the Works but the Contractor shall be responsible for his own interpretation thereof.responsible for his own interpretation thereof.The Contractor shall be deemed to have inspected and examined the Site and its The Contractor shall be deemed to have inspected and examined the Site and its surroundings and information available in connection therewith and to have surroundings and information available in connection therewith and to have satisfied himself (so far as time is practicable), before submitting his Tender, as to satisfied himself (so far as time is practicable), before submitting his Tender, as to ::(a)(a) the form and nature thereof, including the sub - surface conditions,the form and nature thereof, including the sub - surface conditions,(b)(b) the hydrological and climate conditions,the hydrological and climate conditions,(c)(c)the extent and nature of work and materials necessary for the execution and the extent and nature of work and materials necessary for the execution and

completion of the Works and the remedying of any defects therein, andcompletion of the Works and the remedying of any defects therein, and(d)(d) the means of access to the Site and the accommodation he may the means of access to the Site and the accommodation he may

require and, in general, shall be deemed to have obtained all necessary require and, in general, shall be deemed to have obtained all necessary information, subject as above mentioned, as to risks, contingencies and all information, subject as above mentioned, as to risks, contingencies and all other circumstances which may influence or affect his Tender.other circumstances which may influence or affect his Tender.

The Contractor shall be deemed to have based on his Tender, the data made The Contractor shall be deemed to have based on his Tender, the data made available by the Employer and on his own inspection and examination, all as available by the Employer and on his own inspection and examination, all as aforementioned. aforementioned.

Sufficiency of TenderSufficiency of Tender

The Contractor shall be deemed to have satisfied himself as to the The Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the Tender and of the rates and correctness and sufficiency of the Tender and of the rates and prices stated in the Bill of Quantities, all of which shall; except prices stated in the Bill of Quantities, all of which shall; except insofar as it is otherwise provided in the Contract, cover all his insofar as it is otherwise provided in the Contract, cover all his obligations under the Contract (including those in respect of the obligations under the Contract (including those in respect of the supply of goods, materials, Plant or services or of contingencies supply of goods, materials, Plant or services or of contingencies for which there is a Provisional Sum) and all matters and things for which there is a Provisional Sum) and all matters and things necessary for the proper execution and completion of the Works necessary for the proper execution and completion of the Works and the remedying of any defects therein.and the remedying of any defects therein.

PROGRAMME TO BE SUBMITTEDPROGRAMME TO BE SUBMITTED

Within a specified time (in days), after the date Within a specified time (in days), after the date of the Letter Of Acceptance, the contractor shall of the Letter Of Acceptance, the contractor shall submit a programme to the engineer for his consent submit a programme to the engineer for his consent in such a way and detail as the engineer shall in such a way and detail as the engineer shall reasonable prescribe for the execution of the works. reasonable prescribe for the execution of the works. It is also required that whenever the engineer It is also required that whenever the engineer requires, the contractor shall provide in writing, for his requires, the contractor shall provide in writing, for his information, a general description of the arrangement information, a general description of the arrangement and methods which the contractor proposes to adopt and methods which the contractor proposes to adopt for the for the execution of the works.execution of the works.

REVISED PROGRAMMEREVISED PROGRAMME

If it appears to the engineer, at any time, that the If it appears to the engineer, at any time, that the actual progress of the works does not conform to actual progress of the works does not conform to the progamme to which consent, is given; the the progamme to which consent, is given; the contractor at the request of the engineer, is required contractor at the request of the engineer, is required to produce a revised programme necessary to to produce a revised programme necessary to ensure completion of the works within the Time for ensure completion of the works within the Time for Completion.Completion.

CASHFLOW ESTIMATECASHFLOW ESTIMATE The contractor shall within time stated in Part II The contractor shall within time stated in Part II

provide a detailed cash flow estimate, in quarterly provide a detailed cash flow estimate, in quarterly period, for all payments to which the contractor will period, for all payments to which the contractor will be entitled under the contract (to the engineer) and be entitled under the contract (to the engineer) and the contractor shall subsequently supply revised the contractor shall subsequently supply revised cash flow estimates at quarterly cash flow estimates at quarterly intervals, if intervals, if required to do so by the engineer.required to do so by the engineer.

Such cash flow statements do not relieve the Such cash flow statements do not relieve the contractor of any of this duties or responsibilities contractor of any of this duties or responsibilities under the contract.under the contract.

CONTRACTOR’S SUPERINTENDENCECONTRACTOR’S SUPERINTENDENCE The contractor is needed to provide all necessary superintendence The contractor is needed to provide all necessary superintendence

during the execution of the work and thereafter, as long as the engineer consider it during the execution of the work and thereafter, as long as the engineer consider it necessary for proper fulfillment of the contractor’s obligations under the contract.necessary for proper fulfillment of the contractor’s obligations under the contract.

If the approval of Contractor’s representative is withdrawn by the If the approval of Contractor’s representative is withdrawn by the Engineer then Contractor shall replace him by any other representative approved Engineer then Contractor shall replace him by any other representative approved by the Engineer.by the Engineer.

CONTRACTOR’S EMPLOYEESCONTRACTOR’S EMPLOYEES The contractor shall provide on the site only skilled and experienced The contractor shall provide on the site only skilled and experienced

technical assistants and foremen to provide technical assistants and foremen to provide proper superintendence to skilled, proper superintendence to skilled, semiskilled and unskilled labour as is necessary.semiskilled and unskilled labour as is necessary.

ENGINEER AT LIBERTY TO OBJECTENGINEER AT LIBERTY TO OBJECT The Client’s engineer having objection on the contractor’s worker when The Client’s engineer having objection on the contractor’s worker when

they misconduct themselves, or are incompetent or they misconduct themselves, or are incompetent or negligent in the proper negligent in the proper performance of his duties. Such workers should be replaced as soon as possible.performance of his duties. Such workers should be replaced as soon as possible.

SETTING OUTSETTING OUT The contractor has to look after about the accurate setting out of the The contractor has to look after about the accurate setting out of the

works and the provision of all necessary instruments, appliances and labour in works and the provision of all necessary instruments, appliances and labour in connection with the foregoing responsibilities.connection with the foregoing responsibilities.

The contractor shall rectify any error if caused regarding setting out The contractor shall rectify any error if caused regarding setting out unless it was caused due to incorrect data provided by Engineer in writing.unless it was caused due to incorrect data provided by Engineer in writing.

INSURANCEINSURANCE

The Contractor shall insure the followingThe Contractor shall insure the following The full replacement cost for the plant and materials to The full replacement cost for the plant and materials to

be incorporated in the works be incorporated in the works plus 15 percentplus 15 percent of the full of the full replacement costreplacement cost

in addition to be insured for the additional costs like in addition to be insured for the additional costs like rectification of loss or damage, Professional fees, rectification of loss or damage, Professional fees, Demolishing cost and removing the debris from the Demolishing cost and removing the debris from the work.work.

The Contractor’s Equipment and other things brought The Contractor’s Equipment and other things brought to the site for a sum sufficient for its replacement.to the site for a sum sufficient for its replacement.

SCOPE OF COVERSCOPE OF COVER For the cases mentioned the insurance will be in the joint names of the For the cases mentioned the insurance will be in the joint names of the

contractor and the employer, and shall cover contractor and the employer, and shall cover

(a)(a) the employer and the contractor against all loss or damage the employer and the contractor against all loss or damage other than force Majeure causes other than force Majeure causes stated below from start of work stated below from start of work till take over by Employer.till take over by Employer.(b)(b) the contractor during Defects Liability Period for loss or the contractor during Defects Liability Period for loss or damage caused prior to damage caused prior to beginning of Defects Liability Period. beginning of Defects Liability Period.

EXCLUSIONSEXCLUSIONS There shall be no obligation of insurance to cover force Mejure issues There shall be no obligation of insurance to cover force Mejure issues

such as such as War, Hostilities, Invasion, Act of Foreign enemies.War, Hostilities, Invasion, Act of Foreign enemies. Rebellion, Revolution, Insurrection, Military or usurped power or Rebellion, Revolution, Insurrection, Military or usurped power or

civil war.civil war. ionizing radiation, Contamination by radioactivityionizing radiation, Contamination by radioactivity Pressure waves from aircraft or other aerial devicesPressure waves from aircraft or other aerial devices

DAMAGE TO PERSONS AND PROPERTYDAMAGE TO PERSONS AND PROPERTY The Contractor indemnifies and holds harmless, the Employer on The Contractor indemnifies and holds harmless, the Employer on

following issues.following issues.a)a) Death of or Injury to any person orDeath of or Injury to any person orLoss of or damage to any property other than Works which may arise out of execution Loss of or damage to any property other than Works which may arise out of execution

and completion of the works, subject to following exceptions and completion of the works, subject to following exceptions EXCEPTIONSEXCEPTIONS

The exceptions referred above areThe exceptions referred above area)a) The permanent use or occupation of land by the works.The permanent use or occupation of land by the works.b)b) The right of employer to execute the works over under or through the land.The right of employer to execute the works over under or through the land.c)c) Damage to the property during the execution of the work if the damage is Damage to the property during the execution of the work if the damage is

unavoidable in the process of execution and remedying the defects as per the unavoidable in the process of execution and remedying the defects as per the Contract.Contract.

d)d) Damage to property and persons who are either injured or dead because of any act Damage to property and persons who are either injured or dead because of any act or neglect of the Employer, his agents, other Contractors who are not directly or neglect of the Employer, his agents, other Contractors who are not directly employed by the contractor.employed by the contractor.

The Employer shall indemnify the Contractor against all claims arising out of exceptions The Employer shall indemnify the Contractor against all claims arising out of exceptions provided in the contract.provided in the contract.

THIRD PARTY INSURANCETHIRD PARTY INSURANCE The Contractor shall insure in the joint names of the Employer and The Contractor shall insure in the joint names of the Employer and

himself, without limiting his or Employer obligations and responsibilities, against himself, without limiting his or Employer obligations and responsibilities, against injury or death to any person, loss or damages to the property arising out of the injury or death to any person, loss or damages to the property arising out of the performance of contract. This insurance is not to cover the exceptions aboveperformance of contract. This insurance is not to cover the exceptions above

THIRD PARTY INSURANCETHIRD PARTY INSURANCE The Contractor shall insure in the joint names The Contractor shall insure in the joint names

of the Employer and himself, without limiting his or of the Employer and himself, without limiting his or Employer obligations and responsibilities, against Employer obligations and responsibilities, against injury or death to any person, loss or damages to injury or death to any person, loss or damages to the property arising out of the performance of the property arising out of the performance of contract. contract. MINIMUM AMOUNT OF INSURANCEMINIMUM AMOUNT OF INSURANCE

The insurance made shall be for at least the The insurance made shall be for at least the amount specified in the appendix of the Tender.amount specified in the appendix of the Tender.

SUSPENSIONSUSPENSION The Contractor shall, on the instructions of the Engineer, suspend the The Contractor shall, on the instructions of the Engineer, suspend the

progress of the Works or any part thereof for such time and in such progress of the Works or any part thereof for such time and in such manner as the Engineer may consider necessary and shall, during such manner as the Engineer may consider necessary and shall, during such suspension, properly protect and secure the Works or such part thereof suspension, properly protect and secure the Works or such part thereof so far as is necessary in opinion of the Engineer. Unless such so far as is necessary in opinion of the Engineer. Unless such suspension is :suspension is :

a)a) otherwise provided for in the Contract, orotherwise provided for in the Contract, orb)b) necessary by reason of some default of or breach of contract by the necessary by reason of some default of or breach of contract by the

Contractor or for which he is responsible, orContractor or for which he is responsible, or(c)(c) necessary by reason of climatic conditions on the Site, ornecessary by reason of climatic conditions on the Site, or(d)(d) necessary for the proper execution of the Works or for the safety of the necessary for the proper execution of the Works or for the safety of the

Works on any part thereof (save to the extent that such necessity arises Works on any part thereof (save to the extent that such necessity arises from any act or default by the Engineer or the Employer or from any of from any act or default by the Engineer or the Employer or from any of the risks defined in GCC), orthe risks defined in GCC), or

(e)(e) by mutual agreement in writing by both parties to the Contract, provided by mutual agreement in writing by both parties to the Contract, provided that the Employer shall not suffer the expenses resulting from such that the Employer shall not suffer the expenses resulting from such suspension, provided always that the Contractor shall not be entitled to suspension, provided always that the Contractor shall not be entitled to recover any such extra expenses unless he gives to the Engineer recover any such extra expenses unless he gives to the Engineer written notice of his intention to claim within (28) days of the Engineers written notice of his intention to claim within (28) days of the Engineers order, order,

Engineer's Determination Following SuspensionEngineer's Determination Following Suspension

The engineer shall after consulting the contractor and the The engineer shall after consulting the contractor and the employer determine,employer determine,-- Any extension of timeAny extension of time-- The amount to be added to the contract price, due to The amount to be added to the contract price, due to suspension.suspension.

Suspension Of Work For More Than 84 DaysSuspension Of Work For More Than 84 Days

If the progress of the work is suspended for more than 84 If the progress of the work is suspended for more than 84

days then the contractor can give a notice for resumption of days then the contractor can give a notice for resumption of

work within 28 days of receipt of order. If permission for work within 28 days of receipt of order. If permission for

resumption is not given within the said period then the resumption is not given within the said period then the

contractor can consider it as termination of contract.contractor can consider it as termination of contract.

Time for CompletionTime for Completion

The whole of the Works and, required to be The whole of the Works and, required to be completed within a particular time as stated in the completed within a particular time as stated in the Appendix to Tender, shall be completed,, within the Appendix to Tender, shall be completed,, within the time stated in the Appendix to Tender for the whole time stated in the Appendix to Tender for the whole of the Works or the Section (as the case may be), of the Works or the Section (as the case may be), calculated from the Commencement Date, or such calculated from the Commencement Date, or such extended time as may be allowed under next extended time as may be allowed under next clauses.clauses.

No mobilisation period will be allowed for as No mobilisation period will be allowed for as an extension of the Completion Time, as such an extension of the Completion Time, as such period is considered to be included in it.period is considered to be included in it.

Extension of Time for CompletionExtension of Time for Completion

In the event of :In the event of :(a)(a) the amount or nature of extra or additional work, orthe amount or nature of extra or additional work, or(b)(b) any cause of delay referred to in these Conditions, orany cause of delay referred to in these Conditions, or(c)(c) exceptionally adverse climatic condition (but no extension of time exceptionally adverse climatic condition (but no extension of time

shall be granted for the anticipated climatic changes), orshall be granted for the anticipated climatic changes), or(d)(d) any delay, impediment or prevention by the Employer, orany delay, impediment or prevention by the Employer, or(e)(e) other special circumstances which may occur, other than through a other special circumstances which may occur, other than through a

default of or breach of contract by the Contractor or for which he is default of or breach of contract by the Contractor or for which he is responsible, being such as fairly to entitle the Contractor to an responsible, being such as fairly to entitle the Contractor to an extension of the Time for Completion of the Works, or any Section or extension of the Time for Completion of the Works, or any Section or part thereof, the Engineer shall, after due consultation with the part thereof, the Engineer shall, after due consultation with the Employer and the Contractor, determine the amount of such Employer and the Contractor, determine the amount of such extension and shall notify the Contractor accordingly, with a copy to extension and shall notify the Contractor accordingly, with a copy to the Employer. the Employer.

Contractor to Provide Notification and Detailed Contractor to Provide Notification and Detailed ParticularsParticulars

The Engineer is not bound to make any determination unless The Engineer is not bound to make any determination unless the Contractor has :the Contractor has :

(a)(a) within 28 days after such event has first arisen notified within 28 days after such event has first arisen notified the Engineer with a copy to the Employer, andthe Engineer with a copy to the Employer, and

(b)(b) within 28 days, or such other reasonable time as may within 28 days, or such other reasonable time as may be agreed by the Engineer, after such notification submitted be agreed by the Engineer, after such notification submitted to the Engineer detailed particulars of any extension of time to the Engineer detailed particulars of any extension of time to which he may consider himself entitled in order that such to which he may consider himself entitled in order that such submission may be investigated at the time.submission may be investigated at the time.

Interim Determination of ExtensionInterim Determination of Extension

If it is impracticable for contractor to provide If it is impracticable for contractor to provide details of delay within 28 days, the extension shall details of delay within 28 days, the extension shall still be granted, if contractor can provide interim still be granted, if contractor can provide interim details. But the full details of event need to be details. But the full details of event need to be provided within 28 days of the end of the effects provided within 28 days of the end of the effects resulting from events.resulting from events.

Liquidated Damages for DelayLiquidated Damages for Delay

If the Contractor fails to comply with the Time for Completion, for the If the Contractor fails to comply with the Time for Completion, for the whole of the Works or, if applicable, then the Contractor shall pay to the whole of the Works or, if applicable, then the Contractor shall pay to the Employer the relevant sum stated in the Appendix to Tender as liquidated Employer the relevant sum stated in the Appendix to Tender as liquidated damages for such default and not as a penalty for every day or part of a damages for such default and not as a penalty for every day or part of a day which shall elapse between the relevant Time for Completion and the day which shall elapse between the relevant Time for Completion and the date stated in a Taking-Over Certificate of the whole of the Works or the date stated in a Taking-Over Certificate of the whole of the Works or the relevant Section, subject to the applicable limit stated in the Appendix to relevant Section, subject to the applicable limit stated in the Appendix to Tender.Tender.

The Employer may, without prejudice to any other method of recovery, The Employer may, without prejudice to any other method of recovery, deduct the amount of such damages from any moneys due or to become deduct the amount of such damages from any moneys due or to become due to the Contractor. The payment or deduction of such damages shall due to the Contractor. The payment or deduction of such damages shall not relieve the Contractor from his obligation to complete the Works, or not relieve the Contractor from his obligation to complete the Works, or from any other of his obligations and liabilities under the Contract.from any other of his obligations and liabilities under the Contract.

The rate of liquidated damages stated in the Appendix to Tender is The rate of liquidated damages stated in the Appendix to Tender is exclusive of any additional supervision costs in respect of the unjustified exclusive of any additional supervision costs in respect of the unjustified time lapse in completing the Works, and the Contractor shall bear such time lapse in completing the Works, and the Contractor shall bear such costs.costs.

Reduction of Liquidated DamagesReduction of Liquidated Damages

If, before the Time for Completion of the whole of the Works or, if If, before the Time for Completion of the whole of the Works or, if applicable, any Section, a Taking-Over Certificate has been issued for applicable, any Section, a Taking-Over Certificate has been issued for any part of Works or of a Section, the liquidated damages for delay in any part of Works or of a Section, the liquidated damages for delay in completion of the remainder of the Works or of that Section shall, for completion of the remainder of the Works or of that Section shall, for any period of delay after the date stated in such Taking-Over any period of delay after the date stated in such Taking-Over Certificate, and in the absence of alternative provision in the Certificate, and in the absence of alternative provision in the Contract, be reduced in the proportion which the value of the part so Contract, be reduced in the proportion which the value of the part so certified bears to the value of the whole of the Works or Section, as certified bears to the value of the whole of the Works or Section, as applicable.applicable.

The provisions of this Clause shall only apply to the rate of liquidated The provisions of this Clause shall only apply to the rate of liquidated damages and shall not affect the limit thereof.damages and shall not affect the limit thereof.

Taking-Over CertificateTaking-Over Certificate When the whole of the Works have been substantially completed and have When the whole of the Works have been substantially completed and have

satisfactorily passed any Tests on Completion prescribed by the Contract, satisfactorily passed any Tests on Completion prescribed by the Contract, the Contractor may give a notice to that effect to the Engineer, with a copy the Contractor may give a notice to that effect to the Engineer, with a copy to the Employer, accompanied by a written undertaking to finish with due to the Employer, accompanied by a written undertaking to finish with due expedition any outstanding work during the Defects Liability Period. Such expedition any outstanding work during the Defects Liability Period. Such notice and undertaking shall be deemed to be a request by the Contractor notice and undertaking shall be deemed to be a request by the Contractor for the Engineer to issue a Taking-Over Certificate in respect of the Works.for the Engineer to issue a Taking-Over Certificate in respect of the Works.

The Engineer shall conduct an inspection of the Works and report his The Engineer shall conduct an inspection of the Works and report his findings to the Employer with a copy to the Contractor. The Engineer may findings to the Employer with a copy to the Contractor. The Engineer may either certify that the works have been properly completed or ready for either certify that the works have been properly completed or ready for acceptance or give instructions in writing to the Contractor specify the acceptance or give instructions in writing to the Contractor specify the works which, in the opinion of the Engineer, require to be done by the works which, in the opinion of the Engineer, require to be done by the Contractor and to the Engineer's satisfaction, within a prescribed period of Contractor and to the Engineer's satisfaction, within a prescribed period of time before acceptance. If the contractor considers the Engineer's report to time before acceptance. If the contractor considers the Engineer's report to be incorrect, he may give a notice to that effect to the Employer, who shall, be incorrect, he may give a notice to that effect to the Employer, who shall, in the manner he deems suitable either investigate the situation to in the manner he deems suitable either investigate the situation to ascertain the validity of the Engineer's report or form a Committee for the ascertain the validity of the Engineer's report or form a Committee for the Taking-Over of the Works.Taking-Over of the Works.

The Employer shall, within The Employer shall, within ten daysten days from receipt of the Engineer's report, form a from receipt of the Engineer's report, form a "Taking-Over Committee", including the Engineer as one of its members, and notify "Taking-Over Committee", including the Engineer as one of its members, and notify the Contractor of the time and date fixed for carrying out an inspection of the Works. the Contractor of the time and date fixed for carrying out an inspection of the Works. The Engineer and the Contractor shall, in the meanwhile, prepare all necessary The Engineer and the Contractor shall, in the meanwhile, prepare all necessary schedules, data, bills and drawings as are necessary to facilitate the said Committee’s schedules, data, bills and drawings as are necessary to facilitate the said Committee’s work.work.

The Committee shall, within ten days from the date of being formed, conduct in the The Committee shall, within ten days from the date of being formed, conduct in the presence of the Contractor or his authorised agent an inspection of the Works, and presence of the Contractor or his authorised agent an inspection of the Works, and having done so, shall draw up a memorandum of certification of the Works which shall having done so, shall draw up a memorandum of certification of the Works which shall be signed by the Committee members as well as by the Contractor or his authorised be signed by the Committee members as well as by the Contractor or his authorised agent. Copies of the same shall be given to the Employer and the Contractor.agent. Copies of the same shall be given to the Employer and the Contractor.

The Engineer shall within seven days of the date of delivery of the memorandum of The Engineer shall within seven days of the date of delivery of the memorandum of the Taking-Over Committee to the Contractor, issue a Taking-Over Certificate in the Taking-Over Committee to the Contractor, issue a Taking-Over Certificate in respect of the Works, stating the date on which, in his opinion, the Works are respect of the Works, stating the date on which, in his opinion, the Works are considered to be substantially completed in accordance with the Contract and the date considered to be substantially completed in accordance with the Contract and the date of commencement of the Defects Liability Period. The Engineer shall enumerate in the of commencement of the Defects Liability Period. The Engineer shall enumerate in the Taking-Over Certificate all defects and faults to be remedied by the Contractor within a Taking-Over Certificate all defects and faults to be remedied by the Contractor within a prescribed time starting from the start of the Maintenance Period.prescribed time starting from the start of the Maintenance Period.

The Contractor is entitled to comment or object to the memorandum of the Taking-over The Contractor is entitled to comment or object to the memorandum of the Taking-over Committee in writing to the Engineer, provided he does so within (7) days from the Committee in writing to the Engineer, provided he does so within (7) days from the date of signing the memorandum. The Engineer, in such a case, shall study the date of signing the memorandum. The Engineer, in such a case, shall study the objection and submit his findings to the Employer.objection and submit his findings to the Employer.

VariationsVariations

If the Engineer feels the necessity to make any variations of the form, If the Engineer feels the necessity to make any variations of the form, quality or quantity of the Works he has the authority to instruct the quality or quantity of the Works he has the authority to instruct the Contractor to do so and the Contractor shall do any of the following:Contractor to do so and the Contractor shall do any of the following:a)a) Increase or decrease the quantity of any work included in the Increase or decrease the quantity of any work included in the contract.contract.b)b) Omit any such work (but not if the omitted work is to be carried Omit any such work (but not if the omitted work is to be carried out by the Employer or by out by the Employer or by another contractor).another contractor).c)c) Change the character or quality or kind of any such work.Change the character or quality or kind of any such work.d)d) Change the levels, lines, position and dimensions of any part of Change the levels, lines, position and dimensions of any part of the works.the works.e)e) Execute additional work of any kind necessary for the Execute additional work of any kind necessary for the completion of the works.completion of the works.f)f) Change sequence or timing of construction.Change sequence or timing of construction.

Note :Note :Max Allowable variation by Fidic is 15%, but in Palestinian Contracting Max Allowable variation by Fidic is 15%, but in Palestinian Contracting

contract is 20%.contract is 20%.

INSTRUCTIONS FOR VARIATIONSINSTRUCTIONS FOR VARIATIONS::The Contractor is not supposed to make any variation without an instruction of the The Contractor is not supposed to make any variation without an instruction of the Engineer. No instructions are required if work execution results into Engineer. No instructions are required if work execution results into increase/decrease of quantities than those stated in the Bill of quantities.increase/decrease of quantities than those stated in the Bill of quantities.

VALUATION OF VARIATIONSVALUATION OF VARIATIONS

All variations and any additions to the Contract Price shall be as per the rates and All variations and any additions to the Contract Price shall be as per the rates and price of variations present in the Contract. If the Contract does not contain any price of variations present in the Contract. If the Contract does not contain any rates or prices applicable to varied work, the rates and prices of the Contract shall rates or prices applicable to varied work, the rates and prices of the Contract shall be used as the basis for valuation. In the event of disagreement the Engineer shall be used as the basis for valuation. In the event of disagreement the Engineer shall notify the Contractor with a copy to the Employer. Till the time the rates are agreed notify the Contractor with a copy to the Employer. Till the time the rates are agreed or fixed, the Engineer shall determine provisional rates or prices to enable on-or fixed, the Engineer shall determine provisional rates or prices to enable on-account payments to be included in certificates issuedaccount payments to be included in certificates issued

POWER OF ENGINEER TO FIX RATESPOWER OF ENGINEER TO FIX RATESThe Engineer shall determine the rate for varied work if existing rates in the contract are The Engineer shall determine the rate for varied work if existing rates in the contract are

inappropriate, in consultation with Employer and Contractor. If agreement is not inappropriate, in consultation with Employer and Contractor. If agreement is not reached on the rates, the engineer shall fix provisional rates which are appropriate in reached on the rates, the engineer shall fix provisional rates which are appropriate in his opinion, to enable on account payment for payment certificates issued under his opinion, to enable on account payment for payment certificates issued under clause of paymentclause of payment, , until such time as rates or prices are agreed, provided Contractor until such time as rates or prices are agreed, provided Contractor or engineer has given notice of 14 days to each other about their intention to seek or engineer has given notice of 14 days to each other about their intention to seek varied rates.varied rates.

VARIATIONS EXCEEDING 15 PERCENTVARIATIONS EXCEEDING 15 PERCENTIf, on the issue of the Taking-Over Certificate for the Whole of the Works, it is found If, on the issue of the Taking-Over Certificate for the Whole of the Works, it is found that as a result of:that as a result of:a)a) All varied work valued All varied work valued (cases listed in the start of variation)(cases listed in the start of variation)b)b) all adjustments upon measurement of the estimated quantities set out in the all adjustments upon measurement of the estimated quantities set out in the Bill Of Quantities, excluding Provisional Sums, day works and adjustments of price Bill Of Quantities, excluding Provisional Sums, day works and adjustments of price made under made under Clause of increase or decrease of the costClause of increase or decrease of the cost (There shall be (There shall be increase/decrease in contract price based on rise and fall in cost of labor and material increase/decrease in contract price based on rise and fall in cost of labor and material as provided in the part II of these conditions) that the contract price has varied in as provided in the part II of these conditions) that the contract price has varied in excess of 15% then Engineer will decide increase/decrease to contract price having excess of 15% then Engineer will decide increase/decrease to contract price having regards to Contractor’s site and general overhead cost. This change if any shall be regards to Contractor’s site and general overhead cost. This change if any shall be related to 15% excess level over contract price.related to 15% excess level over contract price.

DAY WORKDAY WORKThe Engineer if he feels that it is necessary, can issue a instruction that any varied The Engineer if he feels that it is necessary, can issue a instruction that any varied work shall be executed on a day work basis according to the term’s and conditions work shall be executed on a day work basis according to the term’s and conditions provided in the day work schedule.provided in the day work schedule.

PROVISIONAL SUMPROVISIONAL SUMDEFINITIONDEFINITION “Provisional Sum” means a sum (if any) “Provisional Sum” means a sum (if any)

which is specified in the contract as a provisional which is specified in the contract as a provisional sum. Provisional Sum shall only be used in whole or sum. Provisional Sum shall only be used in whole or in part, in accordance with the Engineers instructions in part, in accordance with the Engineers instructions and the Contract Price shall be adjusted accordingly.and the Contract Price shall be adjusted accordingly.

USE OF PROVISIONAL SUMSUSE OF PROVISIONAL SUMS

The engineer shall have authority to issue instruction The engineer shall have authority to issue instruction for the execution of work or for supply of goods or for the execution of work or for supply of goods or services under provisional sum.services under provisional sum.

MONTHLY STATEMENTSMONTHLY STATEMENTS

The contractor shall submit to the Engineer after the end of each The contractor shall submit to the Engineer after the end of each month six copies of statements showing the amounts to which the month six copies of statements showing the amounts to which the contractor considers himself to be entitled up to the end of the month contractor considers himself to be entitled up to the end of the month in respect of:in respect of:

a)a)The value of the permanent work.The value of the permanent work.b)b)Any other item in the Bill of Quantities including those for Any other item in the Bill of Quantities including those for

contractor’s equipment.contractor’s equipment.c)c)And plant delivery by the contractor on the sire for And plant delivery by the contractor on the sire for

incorporation in the permanent works but not incorporation in the permanent works but not incorporated incorporated in such works.in such works.

d)d)Adjustment under the increase or decrease the cost.Adjustment under the increase or decrease the cost.e)e)Any other sum to which the contractor may be entitled under Any other sum to which the contractor may be entitled under

the contract.the contract.

MONTHLY PAYMENTSMONTHLY PAYMENTSThe Engineer shall, within 28 days of receiving such statement, deliver to the employer an The Engineer shall, within 28 days of receiving such statement, deliver to the employer an interim payment certificate stating the amount of payment due to the contractor subject. interim payment certificate stating the amount of payment due to the contractor subject.

a)a) Firstly to retention of the amount calculated by applying the percentage of retention stated Firstly to retention of the amount calculated by applying the percentage of retention stated in the in the appendix to tender until the amount so retained reaches the limit or retention appendix to tender until the amount so retained reaches the limit or retention money stated in the money stated in the appendix to Tender.appendix to Tender.

b)b) Secondly to the deduction other than pursuant to Secondly to the deduction other than pursuant to liquidated damages for delayliquidated damages for delay of any sums of any sums which may have become due and payable by the contractor to the Employer.which may have become due and payable by the contractor to the Employer.

Provided that the engineer shall not be bound to certify any payment in the net amount thereof, Provided that the engineer shall not be bound to certify any payment in the net amount thereof, after the retention and deduction, would be less than the minimum Amount of interim after the retention and deduction, would be less than the minimum Amount of interim payment certificate stated in the appendix to tender.payment certificate stated in the appendix to tender.

PAYMENT OF RETENTION MONEYPAYMENT OF RETENTION MONEYa)a) Upon the issue of the taking-Over Certificate with respect to the whole of the Upon the issue of the taking-Over Certificate with respect to the whole of the works, one half of the retention money, shall be certified by the Engineer for payment to the works, one half of the retention money, shall be certified by the Engineer for payment to the Contractor.Contractor.b)b) Upon the expiration of the Defect Liability Period for the work other half of the Upon the expiration of the Defect Liability Period for the work other half of the Retention Money shall be certified by the Engineer for payment to the contractor. The Retention Money shall be certified by the Engineer for payment to the contractor. The expression “expiration of the Defect Liability Period” shall for the purpose of the clause, be expression “expiration of the Defect Liability Period” shall for the purpose of the clause, be deemed to mean the expiration of deemed to mean the expiration of the latest of such periods provided also that if at the latest of such periods provided also that if at such time there shall remain to be executed by the contractor any work instructed, pursuant such time there shall remain to be executed by the contractor any work instructed, pursuant to clause 49 and 50 in respect of the works the to clause 49 and 50 in respect of the works the Engineer shall be entitled to withhold Engineer shall be entitled to withhold certification until completion of such work.certification until completion of such work.

CORRECTION OF CERTIFICATESCORRECTION OF CERTIFICATESThe Engineer May in any interim Payment Certificate carryout any correction or modification The Engineer May in any interim Payment Certificate carryout any correction or modification in any previous Interim Payment Certificate.in any previous Interim Payment Certificate.

STATEMENT AT COMPLETIONSTATEMENT AT COMPLETIONNot later than 84 days after the issue of the Taking-Over Certificate in respect of the whole of Not later than 84 days after the issue of the Taking-Over Certificate in respect of the whole of the works, the contractor shall submit to the Engineer six copies of Statement of completion the works, the contractor shall submit to the Engineer six copies of Statement of completion showing in detail, showing in detail, a)a) The final value of all work done The final value of all work done b)b) Any further sums which the contractor considerers to be due andAny further sums which the contractor considerers to be due andc)c) An estimate of amount which contractor considers will become due. The engineer An estimate of amount which contractor considers will become due. The engineer shall certify payment shall certify payment

FINAL STATEMENTFINAL STATEMENTNot later than 56 days after the issue of Defect Liability Certificate the contractor shall submit Not later than 56 days after the issue of Defect Liability Certificate the contractor shall submit to the Engineer for six copies of draft final statement showing in detail.to the Engineer for six copies of draft final statement showing in detail.a)a) The value of all the work done in accordance with the contractThe value of all the work done in accordance with the contractb)b) Any further sum which contractor consider to be due to him. If the Engineer Any further sum which contractor consider to be due to him. If the Engineer disagree or cannot disagree or cannot verify any part of draft final statement, contractor shall submit any verify any part of draft final statement, contractor shall submit any further information required. further information required. The Engineer shall deliver to the Employer an Interim Payment Certificate for those part of The Engineer shall deliver to the Employer an Interim Payment Certificate for those part of the draft final statement, which are not in dispute. the draft final statement, which are not in dispute.

DISCHARGEDISCHARGEUpon submission of final statement, the contractor shall give to the Employer, written discharge Upon submission of final statement, the contractor shall give to the Employer, written discharge confirming that the total of the final statement represent full and final settlement of all monies due to the confirming that the total of the final statement represent full and final settlement of all monies due to the contractor. Provided that such discharge become effective only after payment due under the final contractor. Provided that such discharge become effective only after payment due under the final payment certificate has been paid to the contractor and the performance security is returned.payment certificate has been paid to the contractor and the performance security is returned.

FINAL PAYMENT CERTIFICATEFINAL PAYMENT CERTIFICATEWithin 28 days after receipt of final statement, and written discharge the Engineer shall issue a final Within 28 days after receipt of final statement, and written discharge the Engineer shall issue a final payment certificate stating:payment certificate stating:a)a) The amount which is finally due under the contract .The amount which is finally due under the contract .b)b) After giving credit to Employer for all amount previously paid other than under clause 47 and After giving credit to Employer for all amount previously paid other than under clause 47 and all all sums to which Employer is entitled under the contract.sums to which Employer is entitled under the contract.

CESSATION OF EMPLOYER’S LIABILITYCESSATION OF EMPLOYER’S LIABILITYThe employer shall not be liable to the contractor connection with the contract or execution of The employer shall not be liable to the contractor connection with the contract or execution of the work unless the contractor shall have included a claim in respect thereof in his final the work unless the contractor shall have included a claim in respect thereof in his final statement.statement.

TIME OF PAYMENTTIME OF PAYMENTi.i. The amount due to the Contractor under any interim Certificate issued by the The amount due to the Contractor under any interim Certificate issued by the Engineer be paid Engineer be paid by Employer to the contractor within 56 days.by Employer to the contractor within 56 days.ii.ii. Final payment Certificate within 56 days after such Final Payment Certificate has Final payment Certificate within 56 days after such Final Payment Certificate has been delivered been delivered to the Employer. In the event of the failure of employer to make the to the Employer. In the event of the failure of employer to make the payment within the time payment within the time stated the Employer shall pay contractor interest at the rate stated the Employer shall pay contractor interest at the rate stated in appendix to tenderstated in appendix to tender