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Returns of Labour and Equipment

In document Fidic variation.pdf (Page 120-124)

This clause, which is taken with minor amendments from the 3rd Edition requirest h e C o n t r a c t o r t o m a i n t a i n a r e c o r d i n a p r e s c r i b e d f o r m o f h i s l a b o u r a n d equipment.

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T h i s i s t h e f i r s t o f a n u m b e r o f c l a u s e s r e q u i r i n g t h e

C o n t r a c t o r t o m a i n t a i n records. The others are:-- c l a u s e 4 4 . 3 ( I n t e r i m d e t e r m i n a t i o n o f e x t e n s i o n ) : i n t e r i m p a r t i c u l a r s o f delays having continuing effect;-

c l a u s e 5 2 . 4 ( D a y w o r k ) : l i s t s o f w o r k m e n a n d r e c e i p t s a n d v o u c h e r s proving payment;- c l a u s e 5 3 . 2 ( T e m p o r a r y r e c o r d s ) : i n s u p p o r t o f c l a i m s ; - c l a u s e 5 8 . 3 ( V o u c h e r s ) : a l l d o c u m e n t a t i o n

s h o w i n g e x p e n d i t u r e i n relation to provisional sums;- c l a u s e 5 9 . 5 ( C e r t i f i c a t i o n o f p a y m e n t t o n o m i n a t e d S u b c o n t r a c t o r s ) ; - c l a u s e 6 0 . 1 ( M o n t h l y s t a t e m e n t ) : s h o w i n g m o n t h l y v a l u a t i o n ; a n d - c l a u s e 6 0 . 6 ( F i n a l s t a t e m e n t ) : t o i n c l u d e s u p p o r t i n g d o c u m e n t s . A p a r t f r o m t h e E n g i n e e r ' s g e n e r a l i n v o l v e m e n t i n a n d c o n t r o l o v e r t h e Contractor's operations, the relevance of this information is primarily in relation tof l u c t u a t i o n s i n t h e e v e n t t h a t c l a u s e 7 0 . 1 ( I n c r e a s e o r d e c r e a s e o f c o s t s ) i s o p e r a t i n g . T h i s c l a u s e a l s o p r o v i d e s a m e t h o d o f p o l i c i n g t h e p r o h i b i t i o n

i n c l a u s e 5 4 . 1 ( C o n t r a c t o r ' s E q u i p m e n t ) w h i c h p r e v e n t s t h e C o n t r a c t o r f r o m removing equipment from the site without the consent of the Engineer.Part II provides optional additional clauses for record-keeping in

relation to healthand safety and the reporting of accidents. CLAUSE 36 : Facilities for Testing

A l l m a t e r i a l s , p l a n t a n d w o r k m a n s h i p m u s t b e s t r i c t l y i n

a c c o r d a n c e w i t h t h e contract and any Engineer's instructions and tested as the Engineer may requirei n a c c o r d a n c e w i t h t h e c o n t r a c t . T h e

C o n t r a c t o r w i l l p r o v i d e a l l f a c i l i t i e s f o r t e s t i n g a n d s h a l l s u p p l y s a m p l e s f o r m a t e r i a l s f o r t e s t i n g a s r e q u i r e d b y t h e Engineer.The Contractor will supply samples at his own cost if such supply is envisaged bythe contract.The Contractor will bear the cost of all tests envisaged by the contract and, in thecase of load tests and tests on executed work, where such tests are described insufficient detail to allow a price in the tender.The Contractor will bear the cost of all other tests if the work or materials fail to satisfy the Engineer.

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O t h e r w i s e , t h e E n g i n e e r w i l l a w a r d t h e C o n t r a c t o r a n e x t e n s i o n o f t i m e a n d costs.This clause is virtually unchanged from the 3rd Edition save that sub-clause 36.5has been added to provide machinery for the payment of the Contractor's costs of the extra tests and also to provide expressly for extension of time. Previously,the Contractor would have been obliged to

demonstrate that the extra tests were"extra or additional work" within clause 44.1 (Extension of time for completion).The broad scheme of the contract is that the Contractor will be paid for any testsfor which he has allowed or should have allowed in his contract price but the costof any other tests will be allocated according to the result of the test. This "loser pays" formula is to be found in clause 38.2 (Uncovering and making openings), clause 49.3 (Cost of remedying defects) and clause 50.1 (Contractor to search).This arrangement is bound to raise the suspicion that materials etc. will be ruledas having failed their tests in circumstances where another result would mean additional cost to the Employer and the inference of a mistake by the member of t h e E n g i n e e r ' s t e a m w h o o r d e r e d t h e t e s t . T h i s s u s p i c i o n w i l l

b e p a r t i c u l a r l y r e i n f o r c e d w h e r e t h e E n g i n e e r s u s b e q u e n t l y a g r e e s t o a c c e p t t h e m a t e r i a l s tested despite such failure. For a comment comparing the treatment of the aboveclauses, see under sub-clause 36.5 below.3 6 . 1 " ( a ) . . . d e s c r i b e d i n t h e C o n t r a c t a n d i n

a c c o r d a n c e w i t h t h e E n g i n e e r ' s instructions". If the Engineer's instructions are inconsistent with the contract,then, to the extent that they impose a higher standard than that specified, the Contractor should be entitled to a variation under clause 51.1 (Variations). If theinstruction suggests a lower standard than that prescribed, a problem arises in relation to clause 2.1 (Engineer's duties and authority) item (c) which states thatt h e E n g i n e e r " s h a l l h a v e n o a u t h o r i t y t o r e l i e v e t h e C o n t r a c t o r o f a n y o f h i s obligations under the Contract". The Contractor will be in the difficulty that clause7 . 1 ( S u p p l e m e n t a r y d r a w i n g s a n d i n s t r u c t i o n s ) a n d c l a u s e 1 3 ( W o r k t o b e i n accordance with the contract) both insist that th e Contractor strictly obeys the E n g i n e e r ' s i n s t r u c t i o n s . T h e a n s w e r m a y b e t h a t t h e E n g i n e e r ' s a u t h o r i t y t o instruct a change in the quality of work is expressed in clause 51.1(c) so that thiswould override the limitation within clause 2.1. Thus, clause 36.1(a) may bereconciled as the

description in the contract would effectively be altered by the instructions.In English law, there will be implied into a construction contract a strict duty tosupply good and proper materials, irrespective of fault on the

Contractor's part:see for example Young & Marten v McManus Childs (1969) 1 AC 454.3 6 . 2 T h e o b l i g a t i o n t o s u p p l y s a m p l e s i s

l i m i t e d t o m a t e r i a l s : p l a n t a n d workmanship are tested in other ways.

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3 6 . 3 " ( a ) c l e a r l y i n t e n d e d b y o r p r o v i d e d f o r i n t h e

C o n t r a c t " . T h i s p h r a s e , which occurs in clauses 36.2 and 36.3 and nowhere else in the contract, could give rise to some difficulty. As "provided for" deals with express requirements for t e s t s o r s a m p l e s , " c l e a r l y i n t e n d e d b y " a p p e a r s t o d e a l w i t h i m p l i c i t t e s t s o r samples. In clause 36.1, there is a clear requirement for samples of materials tobe supplied as selected and required by the Engineer. Presumably this is not aclear intention or provision or else clause 36.2 would make reference to clause 3 6 . 1 . I t a p p e a r s t h a t t h e d r a f t s m a n h a s t r i e d t o r e l i e v e

t h e E m p l o y e r a n d Engineer of setting out a requirement for every single sample and test and has l e f t i t t o b e i m p l i e d w h e r e s u c h

s a m p l e s a n d t e s t s w i l l b e n e e d e d . I t s e e m s inevitable that this short-cut will create

arguments.S i m i l a r l y , c l a u s e 3 6 . 3 ( b ) s e e m s d e s i g n e d t o r a i s e t h e i s s u e w h e t h e r t h e description of a test was sufficiently detailed to enable a Contractor to allow for iti n h i s t e n d e r . I t m a y w e l l n o t b e o b v i o u s f r o m t h e t e n d e r i t s e l f w h e t h e r a particular test was allowed for and thus an unscrupulous Contractor or Employer would be free to debate the sufficiency of detail.Materials etc. are to be subjected to testing "from time to time". This raises thequestion whether such tests may occur after the taking-over of the part of the w o r k s c o n c e r n e d . T h e t e s t i n g a n d i n s p e c t i o n i n c l a u s e 3 7 . 2 ( I n s p e c t i o n

a n d t e s t i n g ) o n l y t a k e s p l a c e " d u r i n g m a n u f a c t u r e , f a b r i c a t i o n o r p r e p a r a t i o n " o f materials etc. Under clause 50.1 (Contractor to search), it is only when a defecthas appeared in the works that a search may be undertaken during the defects liability period. Under clause 38.2 (Uncovering and making openings), the words"from time to time" recur and raise the same question. It is submitted that, oncethe works are taken over, the Engineer's powers under this clause are at an endsave in respect of any outstanding work completed during the defects liabilityperiod pursuant to clause 49.2 (Completion of outstanding work and remedyingdefects).Although the word "measuring" features in the list of items in respect of which theContractor is to provide assistance, labour etc. it is submitted that this is not an intentional reference to the measurement referred to in clause 56.1 (Works to bemeasured) whereby the Contractor is to provide only "a qualified representative"and certain particulars.36.4"In accordance with the provisions of the Contract to the satisfaction of theEngineer". See the commentary under clause 13.1 (W ork to be in accordance with contract) in relation to a very similar phrase. For other provisions permittingthe Engineer to test work, see clause 38.2

(Uncovering and making openings) and, where a defect has emerged, clause 50 (Contractor to search).3 6 . 5 A s c o m m e n t e d a b o v e , t h e r e a r e f o u r " l o s e r p a y s " p r o v i s i o n s w h e r e t h e Contractor is paid for work only if no fault is found for which he is responsible.There is a strange inconsistency between these clauses. Under this clause, theC o n t r a c t o r r e c e i v e s t i m e a n d h i s c o s t s ; u n d e r c l a u s e 3 8 . 2 ( U n c o v e r i n g a n d making openings) and cl ause 50 (Contractor to search), he receives costs only;

a n d u n d e r c l a u s e 4 9 . 3 ( C o s t o f r e m e d y i n g d e f e c t s ) , h e r e c e i v e s a v a l u a t i o n under clause 52 (Valuation of variations). Although the Contractor is probablyable to claim an extension for w ork executed pursuant to clauses 38.2 and 50, where appropriate, under clause 44.1 (Extension of time for completion) item (a)"the amount or nature of extra or additional work", the contract should make thematter clear.

An Employer could well argue, albeit wrongly, that

the comparisons h o w s t h a t t h e i n t e n t i o n w a s t o g i v e t i m e o n l y f o r e x t r a t e s t s . T h e r e i s a difference between the valuation for remedials under clause 49.3 and "costs" under the other clauses. The definition of "cost" at clause 1.1(g)(i) makes it clear that profit is excluded. A valuation has no such exclusion.There is no discernablepolicy distinguishing these clauses and the answer may be that there is none.

In document Fidic variation.pdf (Page 120-124)