FIDIC EPC-Silverbook

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Presented by

Prof. Ajit Patwardhan

AN INTRODUCTION TO

FIDIC CONDITIONS OF

FIDIC CONDITIONS OF CONTRACT

CONTRACT

PART (I)

FOR

E.P.C. / TURNKEY

PROJECTS

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INTRODUCTORY INTRODUCTORY

FIDIC’s

FIDIC’s Red and Yellow Books have been in widespread use for several decades, and have been recognisedRed and Yellow Books have been in widespread use for several decades, and have been recognised for their principles of balanced

for their principles of balanced risk sharing between the Employer and risk sharing between the Employer and the Contractor. The employer signing athe Contractor. The employer signing a contract at a lower price and the Contractor avoiding pricing such

contract at a lower price and the Contractor avoiding pricing such risks which are not easy risks which are not easy to evaluate.to evaluate.

During recent years it has been noticed that much of the construction market required a form of contract During recent years it has been noticed that much of the construction market required a form of contract where certainty of final price, are of extreme importance. Employers on such turnkey projects are willing to pay where certainty of final price, are of extreme importance. Employers on such turnkey projects are willing to pay more. Among such projects can be found many projects financed by private funds.

more. Among such projects can be found many projects financed by private funds.

For such projects it is necessary for the Contractor to assume responsibility for a wider range of risks than For such projects it is necessary for the Contractor to assume responsibility for a wider range of risks than under the traditional Red and Yellow Books. If the Contractor is to carry such risks, the Employer must also under the traditional Red and Yellow Books. If the Contractor is to carry such risks, the Employer must also realize that asking responsible contractors to price such risks will increase the

realize that asking responsible contractors to price such risks will increase the construction cost.construction cost.

Even under such contracts the Employer does carry risks of war, terrorism and the other risks of Force Even under such contracts the Employer does carry risks of war, terrorism and the other risks of Force Majeure. In the case of BOT (Build-Operate-Transfer) type projects, the allocation of risk provided for in the Majeure. In the case of BOT (Build-Operate-Transfer) type projects, the allocation of risk provided for in the turnkey construction Contract may need to be adjusted in order to make into account the final allocation of all turnkey construction Contract may need to be adjusted in order to make into account the final allocation of all risks.

risks.

Apart from the privately financed projects demanding contract terms ensuring

Apart from the privately financed projects demanding contract terms ensuring increased certainty of price, timeincreased certainty of price, time and performance, the public sector, in a wide range of countries have demanded similar contract terms, at and performance, the public sector, in a wide range of countries have demanded similar contract terms, at least for turnkey contracts. By providing a standard FIDIC form for use in such contracts, the

least for turnkey contracts. By providing a standard FIDIC form for use in such contracts, the Employer’sEmployer’s requirements for more risk to be taken by the Contractor are clearly stated. Clearly the Contractor will rightly requirements for more risk to be taken by the Contractor are clearly stated. Clearly the Contractor will rightly increase his tender price to account for such extra

increase his tender price to account for such extra risks.risks.

This form EPC/Turnkey Projects is thus intended to be suitable for EPC Contracts within a BOT or similar type This form EPC/Turnkey Projects is thus intended to be suitable for EPC Contracts within a BOT or similar type venture.

venture.

Employers using this must realise

Employers using this must realise “Employer’s“Employer’s Requirements”Requirements” should describe the principle and basic designshould describe the principle and basic design of the plant on a

of the plant on a functional basis. The Tenderer shall also carry out any functional basis. The Tenderer shall also carry out any necessary design and detailing of thenecessary design and detailing of the specific equipment and plant he is offering. Therefore the tendering procedure has to permit discussions specific equipment and plant he is offering. Therefore the tendering procedure has to permit discussions between the Tenderer and the

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FOREWORD FOREWORD

The Federation international des ingenieurs-Conseils (FIDIC) published, in 1999, First Editions of four new The Federation international des ingenieurs-Conseils (FIDIC) published, in 1999, First Editions of four new standard forms of Contract

standard forms of Contract

:-CONDITIONS OF CONTRACT FOR

CONDITIONS OF CONTRACT FOR CONSTRUCTIONCONSTRUCTION Which are recommended for building or

Which are recommended for building or engineering works designed by the engineering works designed by the Employer or by his Employer or by his representativrepresentative,e, the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works in the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer. However, the works may include some elements of accordance with a design provided by the Employer. However, the works may include some elements of Contractor

Contractor – – designed civil, mechanical, electrical and / designed civil, mechanical, electrical and / or construction works.or construction works. CONDITIONS OF CONTRACT FOR

CONDITIONS OF CONTRACT FOR PLANT AND DESIGN-BUILDPLANT AND DESIGN-BUILD

Which are recommended for the provision of electrical and / or mechanical plant, and for the design and Which are recommended for the provision of electrical and / or mechanical plant, and for the design and execution of building or engineering works. Under the usual arrangements for this type of contract, the execution of building or engineering works. Under the usual arrangements for this type of contract, the Contractor designs and provides, in accordance with the

Contractor designs and provides, in accordance with the Employer’sEmployer’s requirements, plant and / or other works;requirements, plant and / or other works; which may include any

which may include any combination of Civil, Mechanical, Electrical and/or construction works.combination of Civil, Mechanical, Electrical and/or construction works. CONDITIONS OF CONTRACT FOR EPC / TURNKEY PROJECTS

CONDITIONS OF CONTRACT FOR EPC / TURNKEY PROJECTS

Which may be suitable for the provision on a turnkey basis of process or power plant, of a factory or similar Which may be suitable for the provision on a turnkey basis of process or power plant, of a factory or similar facility, or of an infrastructure project or other type of development, where (I) a higher degree of certainty of facility, or of an infrastructure project or other type of development, where (I) a higher degree of certainty of final price and time is required, and (ii) the

final price and time is required, and (ii) the Contractor takes total responsibilitContractor takes total responsibility for the design and execution of y for the design and execution of the project, with little involvement of the Employer. Under the usual arrangements for turnkey projects, the the project, with little involvement of the Employer. Under the usual arrangements for turnkey projects, the Contractor carries out all the engineering, Procurement and Construction (EPC) : providing a fully equipped Contractor carries out all the engineering, Procurement and Construction (EPC) : providing a fully equipped facility, ready for operation (at the

facility, ready for operation (at the “turn“turn of theof the key”)key”).. SHORT FORM OF CONTRACT

SHORT FORM OF CONTRACT

Which is recommended for building or engineering works of relatively small capital value. Which is recommended for building or engineering works of relatively small capital value.

These forms are recommended for general use where tenders are invited on an international basis. These forms are recommended for general use where tenders are invited on an international basis. Modifications may be required in some jurisdictions, particularly if the Conditions are to be used on domestic Modifications may be required in some jurisdictions, particularly if the Conditions are to be used on domestic contracts. FIDIC considers the official and authentic texts to be the versions in the

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Thereafter the Contractor should be given freedom to carry out the work in his chosen manner,

provided the end result meets the performance criteria specified by the Employer. Consequently,

the Employer should only exercise limited control and should in general not interfere with the

Contractor’s

Contractor’s work. A feature of this type of contract is that the Contractor has to prove the

work. A feature of this type of contract is that the Contractor has to prove the

reliability and performance of his plant and equipment.

FIDIC recognizes the privately-financed projects are usually subject to more negotiation than

publicly-financed ones and that therefore changes are likely to have to be made in any standard

form of contract proposed for projects within a BOT or similar type venture.

These Conditions of Contract for EPC/Turnkey Projects are not suitable for



If there is insufficient time or information for tenderers to scrutinize and

check the

check the Employer’s

Employer’s Requirements to carry out their designs and risk

Requirements to carry out their designs and risk

assessment studies.



If construction will involve substantial work underground or work tenderers

cannot inspect.



If the Employer intends to supervise closely or control the

If the Employer intends to supervise closely or control the Contractor’s

Contractor’s

work.



If the amount of each interim payment is to be determined by an official or

other intemediary.

FIDIC recommends that the Conditions of Contract for Plant and Design-Build be used in the

above circumstances for works designed by (or on behalf of) the Contractor.

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GENERAL CONDITION GENERAL CONDITION 1.0 General Provision 1.0 General Provision 1.1.1 THE CONTRACT 1.1.1 THE CONTRACT “Employer’s

“Employer’s Requirements”Requirements” means the document entitledmeans the document entitled employer’semployer’s requirements, as included in therequirements, as included in the Contract.

Contract. 1.1.2

1.1.2 PARTIES PARTIES AND PEAND PERSONRSON “DAB”

“DAB” means the person or three persons so names in the Contract, under Sub-Clause 20.2means the person or three persons so names in the Contract, under Sub-Clause 20.2 (Appointment of the Dispute

(Appointment of the Dispute Adjudication Board)Adjudication Board) “FIDIC”

“FIDIC” means Federation international des ingenieurs-Conseils.means Federation international des ingenieurs-Conseils. 1.1.3

1.1.3 DATES, TESTS, DATES, TESTS, PERIODS AND CPERIODS AND COMPLETIONSOMPLETIONS “BASE

“BASE DATE”DATE” the date 28 days prior to the date 28 days prior to the latest date for submission of the tender the latest date for submission of the tender “COMMENCEMENT

“COMMENCEMENT DATE”DATE” means (Commencement of Works) means the time for completing themeans (Commencement of Works) means the time for completing the works (with any extension)

works (with any extension) “TESTS

“TESTS ONON COMPLETION”COMPLETION” means the tests which are specified in the Contractmeans the tests which are specified in the Contract “TAKING

“TAKING-OVER-OVER CERTIFICATE”CERTIFICATE” (Employer’s(Employer’s Taking Over)Taking Over) “DEFECTS

“DEFECTS NOTIFICATIONNOTIFICATION PERIOD”PERIOD” means the period for notifying defects in the Works calculatedmeans the period for notifying defects in the Works calculated from the date on which is works

from the date on which is works or section is completed as certified.or section is completed as certified. 1.1.4

1.1.4 MONEY MONEY AND PAYMAND PAYMENTSENTS “COST”

“COST” means all expenditure reasonably incurred including overhead and similar charges means all expenditure reasonably incurred including overhead and similar charges but does notbut does not include profit.

include profit. “STATEMENT”

“STATEMENT” means an application for payment.means an application for payment. 1.1.5

1.1.5 WORKS WORKS AND AND GOODSGOODS CONTRACTOR’S

CONTRACTOR’S EQUIPMENT excludes Temporary WorksEQUIPMENT excludes Temporary Works “PLANT”

“PLANT” means intended to form or means intended to form or forming part of the Permanent Worksforming part of the Permanent Works “TEMPORARY

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1.1.6 OTHER DEFINITIONS

“CONTRACTOR’S

“CONTRACTOR’S DOCUMENTS”

DOCUMENTS” means the calculations, computer programs and other

means the calculations, computer programs and other

software, drawings, manuals, models and other documents supplied by the Contractor

1.2 INTERPRETATION

The marginal words and other headings shall not be taken into consideration in the

interpretation of these Conditions.

1.3 COMMUNICATIONS

Communications shall be

a.

a. In

In writing and

writing and delivered (against receipt)

delivered (against receipt)

b.

b. Delivered, sent or

Delivered, sent or transmitt

transmitted to

ed to the address

the address

1.4 1.4 LAW

LAW AND

AND LANGUAGE

LANGUAGE

The Contract shall be governed by the law of the country. The ruling language stated in the

Particular Conditions shall prevail.

1.5 1.5 PRIORITY

PRIORITY OF

OF DOCUMENTS

DOCUMENTS

*

* the

the Contract

Contract Agreement

Agreement

*

* the

the Particular

Particular Conditions

Conditions

*

* these

these General

General Conditions

Conditions

* the

* the Employer’s

Employer’s Requirements

Requirements

*

* the tender and

the tender and any other do

any other documents forming part of

cuments forming part of the Contract.

the Contract.

1.6 1.6 CONTRACT

CONTRACT ARRANGEMENT

ARRANGEMENT

The Contract shall come into full force on the date stated in the Contract Agreement.

1.7 ASSIGNMENT

Neither party will assign without express consent

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1.8

1.8 CARE CARE AND SUPAND SUPPLY OF PLY OF DOCUMENTSDOCUMENTS *

* Employer will have Employer will have access to all taccess to all the Contracthe Contract *

* The Contractor shall keep, The Contractor shall keep, on the Site, a copy of thon the Site, a copy of the Contract ande Contract and other communications given under the Contract. The

other communications given under the Contract. The Employer’sEmployer’s Personnel shall have the right of access to

Personnel shall have the right of access to documents at site on alldocuments at site on all reasonable times

reasonable times 1.9 CONFIDENTIALITY 1.9 CONFIDENTIALITY

Both Parties shall treat the details of the Contract as private and confidential Both Parties shall treat the details of the Contract as private and confidential 1.10

1.10EMPLOYER’SEMPLOYER’S USE OFUSE OF CONTRACTOR’SCONTRACTOR’S DOCUMENTSDOCUMENTS Contractor shall retain the copyright and

Contractor shall retain the copyright and other intellectual property rightsother intellectual property rights 1.11

1.11CONTRACTOR’SCONTRACTOR’S USE OFUSE OF EMPLOYER’SEMPLOYER’S DOCUMENTSDOCUMENTS

Employer shall retain the copyright and other intellectual property rights in the

Employer shall retain the copyright and other intellectual property rights in the employer’semployer’s requirementrequirement documents

documents 1.12 CONFIDE

1.12 CONFIDENTIAL NTIAL DETAILSDETAILS

The Contractor shall not be required to disclose any information which Contractor has described in the The Contractor shall not be required to disclose any information which Contractor has described in the Tender as being confidential

Tender as being confidential 1.13

1.13 COMPLIANCE WITH COMPLIANCE WITH LAWSLAWS The Contractor shall, in

The Contractor shall, in performing the Contract, comply with applicable Laws.performing the Contract, comply with applicable Laws. The Employer shall obtain permission for

The Employer shall obtain permission for the Permanent Works.the Permanent Works. The Contractor shall give all notices, pay all

The Contractor shall give all notices, pay all taxes duties and obtain all permits and approvals.taxes duties and obtain all permits and approvals. Contractor shall indemnify and hold the

Contractor shall indemnify and hold the Employer harmless.Employer harmless. 1.14

1.14 JOINT AND JOINT AND SEVERAL LIABILITYSEVERAL LIABILITY

If the Contractor constitutes joint venture, consortium these person shall be deemed to be jointly and If the Contractor constitutes joint venture, consortium these person shall be deemed to be jointly and severally liable to the Employer for the performance of the Contract.

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2.0

2.0 The The Employer Employer 2.1

2.1 RIGHT TO RIGHT TO ACCESS ACCESS TO THE TO THE SITESITE

The Employer shall give the Contractor right of access to and possession of

The Employer shall give the Contractor right of access to and possession of all parts of the Site within theall parts of the Site within the time stated in the Particular Conditions. However, Employer may withhold any such right until the time stated in the Particular Conditions. However, Employer may withhold any such right until the Performance Security has been received.

Performance Security has been received. Delay in handling over Site by

Delay in handling over Site by Employer may result in claims by Contractor for time and cost.Employer may result in claims by Contractor for time and cost. 2.2

2.2 PERMITS, PERMITS, LICENCES LICENCES OR APPROOR APPROVALSVALS

The Employer shall provide reasonable assistance to the Contractor for clearance through customs, and The Employer shall provide reasonable assistance to the Contractor for clearance through customs, and for the export of

for the export of Contractor’sContractor’s Equipment at the end.Equipment at the end. 2.3

2.3 EMPLOYER’SEMPLOYER’S PERSONNELPERSONNEL Employer’s

Employer’s Personnel to co-operate with thePersonnel to co-operate with the Contractor’sContractor’s efforts.efforts. 2.4

2.4 EMPLOYER’SEMPLOYER’S FINANCIAL ARRANGEMENTSFINANCIAL ARRANGEMENTS

The Employer shall submit, within 28 days after receiving request from the Contractor, reasonable The Employer shall submit, within 28 days after receiving request from the Contractor, reasonable evidence that financial arrangements have been made to pay the Contract Price. If the Employer intends evidence that financial arrangements have been made to pay the Contract Price. If the Employer intends to make any change to financial arrangements, the Employer shall give notice to the Contractor.

to make any change to financial arrangements, the Employer shall give notice to the Contractor. 2.4

2.4 EMPLOYER’SEMPLOYER’S CLAIMSCLAIMS

Employer will give notice to Contractor, when any claims or extension to defects notification is sought by Employer will give notice to Contractor, when any claims or extension to defects notification is sought by him, except for payments under 4.19.

him, except for payments under 4.19.

The notice to specify the clauses or basis for claims and substantiation of amount and extent of The notice to specify the clauses or basis for claims and substantiation of amount and extent of extension.

extension. 3.0 The

3.0 The Employer’sEmployer’s AdministrationAdministration 3.1 THE

3.1 THE EMPLOYER’SEMPLOYER’S REPRESENTATIVEREPRESENTATIVE The Employer may appoint an

The Employer may appoint an Employer’sEmployer’s Representative. This Representative shall be deemed Representative. This Representative shall be deemed to haveto have the full authority of the

the full authority of the Employer under the Contract.Employer under the Contract. 3.2 OTHER

3.2 OTHER EMPLOYER’SEMPLOYER’S PERSONNELPERSONNEL The Employer or the

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3.3

3.3 DELEGATED DELEGATED PERSONSPERSONS

All these persons shall only be authorised to issue

All these persons shall only be authorised to issue instructions to the Contractor to the extent defined.instructions to the Contractor to the extent defined. Any failure to disapprove any work, Plan or Materials shall not

Any failure to disapprove any work, Plan or Materials shall not constitute approval.constitute approval. 3.4 INSTRUCTIONS

3.4 INSTRUCTIONS

The Contractor shall take i

The Contractor shall take instructions from the Employer or from thenstructions from the Employer or from the Employer’sEmployer’s Representative.Representative. 3.5 DETERMINATIONS

3.5 DETERMINATIONS

The Employer shall give notice to the Contractor of each agreement or determination. Either Party may The Employer shall give notice to the Contractor of each agreement or determination. Either Party may refer the dispute to the DAB in

refer the dispute to the DAB in accordance with Sub Clause 20.4 (obtaining Dispute Adjudicationaccordance with Sub Clause 20.4 (obtaining Dispute Adjudication Board’sBoard’s Decision).

Decision). 4.0

4.0 The The Contractor Contractor 4.1

4.1 CONTRACTOR’SCONTRACTOR’S GENERAL OBLIGATIONSGENERAL OBLIGATIONS

The Contractor shall design, execute and complete the works in accordance with the Contract. The Contractor shall design, execute and complete the works in accordance with the Contract. The Contractor shall be responsible for the adequacy, stability and safety of all site

The Contractor shall be responsible for the adequacy, stability and safety of all site operations.operations. The Contractor whenever required by Employer to

The Contractor whenever required by Employer to prepare and get approved Methods Statement.prepare and get approved Methods Statement. 4.2

4.2 CONTRACTOR’SCONTRACTOR’S GENERAL OBLIGATIONSGENERAL OBLIGATIONS The Contractor shall obtain a

The Contractor shall obtain a Performance Security for proper performance of Contract.Performance Security for proper performance of Contract.

The Contractor shall deliver the Performance Security to the Employer within 28 days after the Contract The Contractor shall deliver the Performance Security to the Employer within 28 days after the Contract Agreement. The Perform

Agreement. The Performance Security shall be issued by an ance Security shall be issued by an entity / bank approved by the Employer.entity / bank approved by the Employer. Performance Security is to be extended if the Performance Certificate is not obtained by expiry date of Performance Security is to be extended if the Performance Certificate is not obtained by expiry date of the Contract.

the Contract. *

* failure by the Contracfailure by the Contractor to extend the vtor to extend the validity of the Perforalidity of the Performancemance Security as the Employer may claim the full amount;

Security as the Employer may claim the full amount; *

* failure by the Contracfailure by the Contractor to remedy a defautor to remedy a default within 42 days aftlt within 42 days after er receiving the

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*

* Circumstances which entiCircumstances which entitle the Employer tle the Employer to termination under to termination under sub- sub-clause 15.2 (Termination by Employer).

clause 15.2 (Termination by Employer).

The Employer shall return the Performance Security to the Contractor within 21 days after the The Employer shall return the Performance Security to the Contractor within 21 days after the Contractor has become entitled to receive

Contractor has become entitled to receive the Performance Certificate back.the Performance Certificate back. 4.3

4.3 CONTRACTOR’SCONTRACTOR’S REPRESENTATIVEREPRESENTATIVE

Contractor shall submit to the Employer for consent, particulars of the person the Contractor proposes Contractor shall submit to the Employer for consent, particulars of the person the Contractor proposes to appoint as

to appoint as Contractor’sContractor’s Representative.Representative. 4.4 SUBCONTRACTORS

4.4 SUBCONTRACTORS

The Contractor shall not subcontract the whole of the works. The Contractor shall not subcontract the whole of the works. Contractor shall give the Employer not less than

Contractor shall give the Employer not less than 2828 days’days’ notice of the intended appointment of the Sub-notice of the intended appointment of the Sub-Contractor with detailed particulars.

Contractor with detailed particulars. 4.5

4.5 NOMINATED NOMINATED SUBCONTRACTORSSUBCONTRACTORS

Nominated Subcontractor means a Subcontractor whom the Employer under Clause 13 instructs the Nominated Subcontractor means a Subcontractor whom the Employer under Clause 13 instructs the Contractor to employ as a

Contractor to employ as a Subcontractor.Subcontractor.

Nominated Subcontractor can be opposed by Contractor with

Nominated Subcontractor can be opposed by Contractor with particulars supporting his contentions.particulars supporting his contentions. 4.6 CO-OPERATION

4.6 CO-OPERATION

The Contractor shall allow

The Contractor shall allow appropriate opportunities for carrying out work toappropriate opportunities for carrying out work to * the

* the employer’semployer’s Personnel;Personnel; *

* any other Contany other Contractors employed ractors employed by the Empby the Employer;loyer; *

* the personnel of any legally the personnel of any legally constituted public autconstituted public authoritieshorities

Above request may constitute a variation to the extent it causes the Contractor to incur cost which was Above request may constitute a variation to the extent it causes the Contractor to incur cost which was

not reasonably roreseeable at the time of Tendering. not reasonably roreseeable at the time of Tendering. 4.7

4.7 SETTING SETTING OUTOUT

The Contractor shall set out the works in relation to original points, lines and levels of reference The Contractor shall set out the works in relation to original points, lines and levels of reference specified in the Contract.

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4.8

4.8 SAFETY SAFETY PROCEDURESPROCEDURES

The Contractor shall comply with Safety Regulations and create safety environment for workers and The Contractor shall comply with Safety Regulations and create safety environment for workers and public.

public. 4.9

4.9 QUALITY QUALITY ASSURANCEASSURANCE

The Contractor shall institute a quality assurance system to demonstrate compliance with the The Contractor shall institute a quality assurance system to demonstrate compliance with the requirements of the Contract. The Employer shall be entitled to audit any aspect of the system.

requirements of the Contract. The Employer shall be entitled to audit any aspect of the system. 4.10

4.10 SITE SITE DATADATA

The Employer shall have made available to the Contractor prior to the Base Date, all relevant data on The Employer shall have made available to the Contractor prior to the Base Date, all relevant data on subsurface and hydrological conditions at the Site.

subsurface and hydrological conditions at the Site.

The Contractor shall be responsible for verifying and interpreting all such data. The Employer shall have The Contractor shall be responsible for verifying and interpreting all such data. The Employer shall have no responsibility for the accuracy, sufficiency or completeness of such data.

no responsibility for the accuracy, sufficiency or completeness of such data. 4.11

4.11 SUFFICIENCY SUFFICIENCY OF THOF THE E CONTRACT CONTRACT PRICEPRICE

The Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the The Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the Contract Price.

Contract Price. 4.12

4.12 UNFORESEEABLE UNFORESEEABLE DIFFICULITESDIFFICULITES

The Contractor shall be deemed to have obtained all necessary information as to risks, contingencies The Contractor shall be deemed to have obtained all necessary information as to risks, contingencies and other circumstances which may

and other circumstances which may influence or affect the Works.influence or affect the Works. 4.13

4.13 RIGHTS RIGHTS OF OF WAY WAY AND AND FACILITIESFACILITIES

The Contractor shall bear all costs for rights-of-way, including those for access to the The Contractor shall bear all costs for rights-of-way, including those for access to the site.site. 4.14

4.14 AVOIDANCE AVOIDANCE OF OF INTERFERENCEINTERFERENCE

The Contractor shall not interfere unnecessarily or improperly with the convenience of the public. The Contractor shall not interfere unnecessarily or improperly with the convenience of the public. 4.15

4.15 ACCESS ACCESS ROUTEROUTE

The Contractor shall be responsible for any maintenance which may be required for his use of access The Contractor shall be responsible for any maintenance which may be required for his use of access routes.

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4.16

4.16 TRANSORT TRANSORT OF OF GOODSGOODS

Contractor shall give the Employer not less than

Contractor shall give the Employer not less than 2121 days’days’ notice of the date on which any plant or a major item of notice of the date on which any plant or a major item of other Goods will be delivered to the Site.

other Goods will be delivered to the Site. 4.17

4.17 CONTRACTOR’SCONTRACTOR’S EQUIPMENTEQUIPMENT When brought to the Site,

When brought to the Site, Contractor’sContractor’s Equipment shall be deemed to be exclusively intended for Equipment shall be deemed to be exclusively intended for the execution of the execution of the Works.

the Works. 4.18

4.18 PROTECTION PROTECTION OF OF THE THE ENVIRONMENTENVIRONMENT

The Contractor shall take all reasonable steps to protect the environment. The Contractor shall take all reasonable steps to protect the environment. 4.19

4.19 ELECTRICITY, ELECTRICITY, WATER WATER AND AND GASGAS

The Contractor shall be responsible for the provision of all

The Contractor shall be responsible for the provision of all power, water and other services he may require.power, water and other services he may require. The Contractor will pay for the same if

The Contractor will pay for the same if provided by the Employer.provided by the Employer. 4.20

4.20 EMPLOYER’SEMPLOYER’S EQUIPMENT AND FREE-ISSUE MATERIALEQUIPMENT AND FREE-ISSUE MATERIAL Employer’s

Employer’s equipment can be used by Contractor and pay for it equipment can be used by Contractor and pay for it along with proper care and responsibility.along with proper care and responsibility.

The Employer shall, at his risk and cost, provide free issue materials at the time and place specified in the The Employer shall, at his risk and cost, provide free issue materials at the time and place specified in the Contract.

Contract.

After visual inspection, the free-issue materials shall

After visual inspection, the free-issue materials shall come under the care, custody come under the care, custody and control of the and control of the Contractor.Contractor. 4.21

4.21 PROGRESS PROGRESS REPORTREPORT

Contractor to submit Monthly Progress Report. Contractor to submit Monthly Progress Report. *

* Each report Each report shall include shall include :: *

* Charts and detailed Charts and detailed descriptions of descriptions of progress;progress; *

* Photographs shPhotographs showing progress on owing progress on the site;the site; *

* Report on major equipmReport on major equipment and materient and materials arrivals;als arrivals; *

* Records Records of of Contractor’sContractor’s Personnel and Equipment;Personnel and Equipment; *

* Copies of Copies of quality assurance quality assurance documents;documents; *

* List List of of Variations;Variations; *

* Safety Safety Statistics;Statistics; *

* Comparisons of actuaComparisons of actual and planned progress l and planned progress and the measuresand the measures being adopted to overcome delays.

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4.22

4.22 SECURITY SECURITY OF OF THE THE SITESITE The Contractor shall be

The Contractor shall be responsible for keeping unauthorised persons the site,responsible for keeping unauthorised persons the site, 4.23

4.23 CONTRACTOR’SCONTRACTOR’S OPERATIONS ON SITEOPERATIONS ON SITE

The Contractor shall confine his operations to the Site, and to any additional areas agreed by the The Contractor shall confine his operations to the Site, and to any additional areas agreed by the Employer as working areas.

Employer as working areas. Contractor shall keep the Site

Contractor shall keep the Site free from all unnecessary free from all unnecessary obstruction,obstruction,

Upon Taking-Over Certificate, the Contractor shall clear away and remove all Equipment, surplus Upon Taking-Over Certificate, the Contractor shall clear away and remove all Equipment, surplus material, rubbish and Temporary Works.

material, rubbish and Temporary Works. 4.24 FOSSILS

4.24 FOSSILS

All fossils, coins, articles of value or antiquity, found on the Site shall be placed under the care and All fossils, coins, articles of value or antiquity, found on the Site shall be placed under the care and

authority of the Employer. authority of the Employer.

Any delays and costs due to handling of above issues, as per

Any delays and costs due to handling of above issues, as per Employer’sEmployer’s Instruction will be under Instruction will be under contractor’s

contractor’s Claims.Claims. 5.0 Design

5.0 Design 5.1

5.1 GENERAL GENERAL DESIGN DESIGN OBLIGATIONSOBLIGATIONS

The Contractor shall be deemed to have scrutinised,

The Contractor shall be deemed to have scrutinised, Employer’sEmployer’s Requirements.Requirements.

Any data or information received by the Contractor, from the Employer shall not relieve the Contractor Any data or information received by the Contractor, from the Employer shall not relieve the Contractor

from his responsibility for the design. from his responsibility for the design.

However, the Employer shall be responsible for the correctness of the following. However, the Employer shall be responsible for the correctness of the following. a.

a. Data and informatData and information stated in the Conion stated in the Contractor as being immtractor as being immutable.utable. b.

b. Definitions of Definitions of intended purposeintended purposes of the Ws of the Works.orks. c.

c. Criteria for Criteria for the testing the testing and performancand performance.e. d.

d. Data and informatData and information which cannot be veion which cannot be verified by the Contractorrified by the Contractor.. 5.2

5.2 CONTRACTOR’SCONTRACTOR’S DOCUMENTSDOCUMENTS The Contractor shall prepare all

The Contractor shall prepare all Contractor’sContractor’s Documents for submission.Documents for submission. The

The Contractor’sContractor’s Documents which are to be submitted to the Employer for review shall be submittedDocuments which are to be submitted to the Employer for review shall be submitted accordingly. Each review period shall not exceed 21 days.

(14)

The Employer may, give notice to the Contractor that a

The Employer may, give notice to the Contractor that a Contractor’sContractor’s Document fails (to the extentDocument fails (to the extent stated) to comply with the contract. It shall be rectified and submitted.

stated) to comply with the contract. It shall be rectified and submitted.

Any review shall not relieve the Contractor from any obligation or responsibility. Any review shall not relieve the Contractor from any obligation or responsibility. 5.3

5.3 CONTRACTOR’SCONTRACTOR’S UNDERTAKINGUNDERTAKING

The Contractor undertakes that the design and the completed works will be in accordance with The Contractor undertakes that the design and the completed works will be in accordance with a.

a. Laws in Laws in the Countthe Countryry b.

b. The documents The documents forming the forming the ContractContract 5.4

5.4 TECHNICAL TECHNICAL STANDARDS STANDARDS AND AND REGULATIONSREGULATIONS The design shall comply with the

The design shall comply with the Country’sCountry’s technical standards, Building, Construction andtechnical standards, Building, Construction and Environmental Laws. References in the Contract for published standards shall be understood to be Environmental Laws. References in the Contract for published standards shall be understood to be references to edition applicable on the Base Date.

references to edition applicable on the Base Date.

If changed or applicable standards come in to force in the Country after the Base Date, then the If changed or applicable standards come in to force in the Country after the Base Date, then the Employer shall initiate a variation in accordance with Clause 13.

Employer shall initiate a variation in accordance with Clause 13. 5.5 TRAINING

5.5 TRAINING

The Contractor shall carry out the training of

The Contractor shall carry out the training of Employer’sEmployer’s Personnel in the operation and maintenance of Personnel in the operation and maintenance of the Works to the extent specified.

the Works to the extent specified. 5.6

5.6 AS-BUILT AS-BUILT DOCUMENTSDOCUMENTS Contractor shall supply to the

Contractor shall supply to the Employer operation and maintenance manuals.Employer operation and maintenance manuals. 5.8

5.8 DESIGN DESIGN ERRORERROR

If errors, omissions, or other defects are

If errors, omissions, or other defects are found in thefound in the Contractor’sContractor’s Documents, they shall be corrected atDocuments, they shall be corrected at the

(15)

6.0

6.0 Staff Staff and and Labour Labour 6.1

6.1 ENGAGEMENT ENGAGEMENT OF OF STAFF STAFF AND AND LABOURLABOUR

Contractor shall make arrangements for the engagement or all staff and labour, for their salary, housing, Contractor shall make arrangements for the engagement or all staff and labour, for their salary, housing, feeding and transport.

feeding and transport. 6.2

6.2 RATES RATES OF OF WAGES WAGES AND AND CONDITIONS CONDITIONS OF OF LABOURLABOUR

Contractor shall pay rates of wages and observe conditions which are not lower than general level of Contractor shall pay rates of wages and observe conditions which are not lower than general level of wages and conditions.

wages and conditions. 6.3

6.3 PERSONS PERSONS IN IN THE THE SERVICE SERVICE OF OF OTHERSOTHERS

The Contractor shall not recruit staff and Labour amongst the

The Contractor shall not recruit staff and Labour amongst the Employer’sEmployer’s Personnel.Personnel. 6.4

6.4 LABOUR LABOUR LAWSLAWS

The Contractor shall comply with all the relevant labour Laws of the country including health, safety, The Contractor shall comply with all the relevant labour Laws of the country including health, safety, welfare and immigration.

welfare and immigration. 6.5

6.5 WORKING WORKING HOURSHOURS

The Contractor shall keep normal working hours, unless The Contractor shall keep normal working hours, unless a.

a. Otherwise statOtherwise stated in the ed in the Contract;Contract; b.

b. Employer Employer gives gives consent;consent; c.

c. For the For the safety of safety of the Works.the Works. 6.6

6.6 FACILITIES FACILITIES FOR FOR STAFF STAFF AND AND LABOURLABOUR Contractor shall provide and maintain all

Contractor shall provide and maintain all necessary welfare facilities.necessary welfare facilities. 6.7

6.7 HEALTH HEALTH AND AND SAFETYSAFETY

The Contractor shall maintain the health and safety of the

The Contractor shall maintain the health and safety of the Contractor’sContractor’s personnel.personnel. The Contractor shall appoint an accident prevention officer at the Site.

The Contractor shall appoint an accident prevention officer at the Site. The Contractor shall send to

The Contractor shall send to the Employer, any accident reports and details concerning health, safety andthe Employer, any accident reports and details concerning health, safety and welfare.

welfare. 6.8

6.8 CONTRACTOR’SCONTRACTOR’S SUPERINTENDENCESUPERINTENDENCE Contractor shall provide all necessary

(16)

6.9

6.9 CONTRACTOR’SCONTRACTOR’S PERSONNELPERSONNEL The

The Contractor’sContractor’s Personnel shall be appropriately qualified, skilled and experienced. The Employer mayPersonnel shall be appropriately qualified, skilled and experienced. The Employer may require Contractor to remove any person employed on the Site or Works, including the

require Contractor to remove any person employed on the Site or Works, including the Contractor’sContractor’s Representative, if applicable, who is incompetent and fails to conform to contract and safety of works.

Representative, if applicable, who is incompetent and fails to conform to contract and safety of works. 6.10

6.10 RECORDS RECORDS OFOF CONTRACTOR’SCONTRACTOR’S PERSONNEL AND EQUIPMENTPERSONNEL AND EQUIPMENT

The Contractor shall submit to the Employer, details of personnel and type of equipment on the Site. The Contractor shall submit to the Employer, details of personnel and type of equipment on the Site. 6.11

6.11 DISORDELY DISORDELY CONDUCTCONDUCT

The Contractor shall prevent any unlawful, riotous or disorderly conduct and preserve peace. The Contractor shall prevent any unlawful, riotous or disorderly conduct and preserve peace. 7.0

7.0 Plant, Plant, Materials Materials and and WorkmanshipWorkmanship 7.1

7.1 MANNER MANNER OF OF EXECUTIONEXECUTION

The Contractor shall execute the work in proper workmanlike manner and as per

The Contractor shall execute the work in proper workmanlike manner and as per contract.contract. 7.2 SAMPLES

7.2 SAMPLES

The Contractor shall submit samples to the Employer, for review in accordance with the procedures. The Contractor shall submit samples to the Employer, for review in accordance with the procedures. 7.3 INSPECTION

7.3 INSPECTION The

The Employer’sEmployer’s Personnel shall have full access to all parts of the Site during production, manufacture andPersonnel shall have full access to all parts of the Site during production, manufacture and construction.

construction.

The Contractor shall give notice when ready for Inspection and Employer shall carry it out without The Contractor shall give notice when ready for Inspection and Employer shall carry it out without unreasonable delay.

unreasonable delay. 7.4 TESTING

7.4 TESTING

The Sub-Clause shall apply to all tests other than the

The Sub-Clause shall apply to all tests other than the tests after Completion (if any).tests after Completion (if any). The Contractor shall provide all assistance to carry out the

The Contractor shall provide all assistance to carry out the specified tests efficiently.specified tests efficiently.

The Employer may instruct the Contractor carry out additional tests. If materials or workmanship is not in The Employer may instruct the Contractor carry out additional tests. If materials or workmanship is not in accordance with the Contract, cost of carrying out Variation shall be borne by the

accordance with the Contract, cost of carrying out Variation shall be borne by the Contractor.Contractor.

If the Employer does not attend the test at the time and placed agreed, Contractor may proceed with the If the Employer does not attend the test at the time and placed agreed, Contractor may proceed with the tests shall then be deemed to have been made in

(17)

If the Employer does not attend the

If the Employer does not attend the test at the time and test at the time and placed agreed, Contractor may proceed with theplaced agreed, Contractor may proceed with the tests shall then be deemed to have been made in

tests shall then be deemed to have been made in thethe Employer’sEmployer’s Presence.Presence.

If the Contractor suffers delay and / or incurs cost as a result of a delay for which the Employer is If the Contractor suffers delay and / or incurs cost as a result of a delay for which the Employer is responsible, the Contractor shall give notice to the Employer subject to Sub-Clause 20.1

responsible, the Contractor shall give notice to the Employer subject to Sub-Clause 20.1 (Contractor’s(Contractor’s Claims).

Claims). 7.5 REJECTION 7.5 REJECTION

If as a result of an examination of materials, design or workmanship if found to be defective the If as a result of an examination of materials, design or workmanship if found to be defective the Employer may reject the Plant. The

Employer may reject the Plant. The Contractor shall then promptly make good the Contractor shall then promptly make good the defects.defects.

If the Employer requires this Plant to be retested if the rejection and retesting cause the Employer to If the Employer requires this Plant to be retested if the rejection and retesting cause the Employer to incur additional costs the Contractor shall pay these costs to the Employer.

incur additional costs the Contractor shall pay these costs to the Employer. 7.6

7.6 REMEDIAL REMEDIAL WORKWORK

The Employer may instruct the Contractor to : The Employer may instruct the Contractor to :

Remove from the Site and replace any Plant or Materials which is

Remove from the Site and replace any Plant or Materials which is not in accordance with the Contract.not in accordance with the Contract. If the Contractor fails to comply the Employer shall be entitled to employ and pay other persons to If the Contractor fails to comply the Employer shall be entitled to employ and pay other persons to carrycarry out the work.

out the work. 7.7

7.7 OWNERSHIP OWNERSHIP OF OF PLANT PLANT AND AND MATERIALSMATERIALS

Each item of Plant and Materials shall become the property of the Employer when it is delivered to the Each item of Plant and Materials shall become the property of the Employer when it is delivered to the Site; subject to payment for plant

Site; subject to payment for plant and materials.and materials. 7.8 ROYALTIES

7.8 ROYALTIES

Contractor shall pay all royalties, rents for Contractor shall pay all royalties, rents for natural Materials obtained from outside the Site. natural Materials obtained from outside the Site.

(18)

8.0

8.0 Commencement, Commencement, Delays Delays and and SuspensionSuspension 8.1

8.1 COMMENCEMCOMMENCEMENT ENT OF OF WORKSWORKS a.

a. The Employer shall give CThe Employer shall give Contractor not less than ontractor not less than 77 day’sday’s notice of notice of the Commencement Date; and

the Commencement Date; and b.

b. The Commencement The Commencement Date shall be within 42 days Date shall be within 42 days after the date onafter the date on which the contract comes into full force.

which the contract comes into full force. 8.2

8.2 TIME TIME FOR FOR COMPLETIONCOMPLETION

The Contractor shall complete the whole of the Works, and

The Contractor shall complete the whole of the Works, and each Section within the Time for Completioneach Section within the Time for Completion for the Works or Section including :

for the Works or Section including : a.

a. The passing of The passing of the Tests on the Tests on Completion , Completion , andand b.

b. Completing all work wCompleting all work which is stated in the Contrahich is stated in the Contract.ct. 8.3 PROGRAMME

8.3 PROGRAMME

The Contractor shall submit a time program to the Employer within 28 days after the Commencement The Contractor shall submit a time program to the Employer within 28 days after the Commencement Date. Including methods for major stages of work and details of equipment and type and nos. of Date. Including methods for major stages of work and details of equipment and type and nos. of personnel.

personnel.

Employer to comment within 21 days or accept the programme as it is. Employer to comment within 21 days or accept the programme as it is.

Contractor to advise employer about probable delays and to resubmit revised schedule to the employer. Contractor to advise employer about probable delays and to resubmit revised schedule to the employer. 8.4

8.4 EXTENTION EXTENTION OF OF TIME TIME FOR FOR COMPLETIONCOMPLETION

The Contractor shall be entitled to an extension of the Time for Completion if delayed by any of the The Contractor shall be entitled to an extension of the Time for Completion if delayed by any of the following causes :

following causes : a.

a. A variation under Sub-A variation under Sub-Clause 13.3 (VariatClause 13.3 (Variation Procedure)ion Procedure) b.

b. A cause of delay under a SA cause of delay under a Sub-Clause of these Conub-Clause of these Conditionsditions c.

c. Any delay atAny delay attributable to tributable to the Employer the Employer 8.5

8.5 DELAYS DELAYS CAUSED CAUSED BY BY AUTHORITIESAUTHORITIES

If Contractor follows conditions of public authorities, but authorities delay his work, then extension of If Contractor follows conditions of public authorities, but authorities delay his work, then extension of time for completion under sub-clause 9.4 is applicable.

time for completion under sub-clause 9.4 is applicable. 8.6

8.6 RATE RATE OF OF PROGRESSPROGRESS

Actual progress is too show to complete within the Time for

(19)

Employer may instruct the Contractor to submit a revised program to expedite progress and complete Employer may instruct the Contractor to submit a revised program to expedite progress and complete within the Time for Completion.

within the Time for Completion.

The Contractor shall adopt these revised methods at the risk and cost of

The Contractor shall adopt these revised methods at the risk and cost of the Contractor.the Contractor. 8.7

8.7 DELAY DELAY DAMAGESDAMAGES

If the Contractor fails to copy with time for completion, the Contractor shall pay delay damages to the If the Contractor fails to copy with time for completion, the Contractor shall pay delay damages to the Employer. These delay damages shall be the sum

Employer. These delay damages shall be the sum stated in the Particular Conditions per day. However,stated in the Particular Conditions per day. However, the total amount due shall not exceed the maximum amount of delay damages.

the total amount due shall not exceed the maximum amount of delay damages.

These damages shall not relieve the Contractor from his obligation to complete the Works. These damages shall not relieve the Contractor from his obligation to complete the Works. 8.8

8.8 SUSPENSION SUSPENSION OF OF WORKWORK

The Employer may at any time instruct the Contractor to suspend progress of part or all of the Works. The Employer may at any time instruct the Contractor to suspend progress of part or all of the Works. During such suspension, the Contractor shall protect, store and secure the Works against any During such suspension, the Contractor shall protect, store and secure the Works against any deterioration, loss or damage.

deterioration, loss or damage. 8.9

8.9 CONSEQUENCES CONSEQUENCES OF OF SUSPENSIONSUSPENSION

If the Contractor suffers delay and/or incurs Cost, the

If the Contractor suffers delay and/or incurs Cost, the Contractor shall give notice to the Contractor shall give notice to the Employer for anEmployer for an extension of time for any such delay and payment of any

extension of time for any such delay and payment of any such Cost.such Cost. 8.10

8.10 PAYMENT PAYMENT FOR PLANT AFOR PLANT AND MATERIALS ND MATERIALS IN EVENT IN EVENT OF SUSPENSIOF SUSPENSIONON

The Contractor shall be entitled to payment of the value of Plant and/or Materials, if the work has been The Contractor shall be entitled to payment of the value of Plant and/or Materials, if the work has been suspended for more than 28 days; and the Contractor has marked the Plant and/or Materials as suspended for more than 28 days; and the Contractor has marked the Plant and/or Materials as Employer’s

Employer’s property.property. 8.11

8.11 PROLONGED PROLONGED SUSPENSIONSUSPENSION

If the suspension has continued for more than 84 days, Contractor may request the

If the suspension has continued for more than 84 days, Contractor may request the Employer’sEmployer’s permission to proceed. If the Employer does not

permission to proceed. If the Employer does not give permission within 28 days, the Contractor may, bygive permission within 28 days, the Contractor may, by giving notice to the Employer, treat the suspension as an omission.

giving notice to the Employer, treat the suspension as an omission.

If suspension affects whole of work, notice of termination under Sub-Clause 16.2 may be given. If suspension affects whole of work, notice of termination under Sub-Clause 16.2 may be given.

(20)

8.12

8.12 RESUMPTION RESUMPTION OF OF WORKWORK

On resumption, both sides to examine the work and the Contractor to make good any

On resumption, both sides to examine the work and the Contractor to make good any deterioration.deterioration. 9.0

9.0 Tests Tests on on CompletionCompletion 9.1

9.1 CONTRACTOR’SCONTRACTOR’S OBLIGATIONSOBLIGATIONS

The Contractor shall give to the Employer not less than 21

The Contractor shall give to the Employer not less than 21 days’days’ notice to carry out each of the Tests onnotice to carry out each of the Tests on completion. Tests on Completion shall be carried out within 14 days after this date.

completion. Tests on Completion shall be carried out within 14 days after this date. Tests on Completion shall be carried out in

Tests on Completion shall be carried out in the following sequence.the following sequence. a.

a. Pre-commissioning Pre-commissioning tests to demonstrattests to demonstrate that each itee that each item of Plantm of Plant can safely undertake the next stage;

can safely undertake the next stage; b.

b. Commissioning tCommissioning tests to demonstratests to demonstrate that the Worke that the Works or Section cans or Section can be operated safely and as specified;

be operated safely and as specified; c.

c. Trial operation which sTrial operation which shall demonstrate thall demonstrate that the Works of Secthat the Works of Sectionion perform reliably.

perform reliably.

During trial operation, the Contractor shall give notice to the Employer that the Works are ready for any During trial operation, the Contractor shall give notice to the Employer that the Works are ready for any other Tests on

other Tests on Completion, including performance tests to demonstrate PerformCompletion, including performance tests to demonstrate Performance Guarantees.ance Guarantees. 9.2

9.2 DELAYED DELAYED TESTSTESTS

If the Tests on Completion delayed by Contractor, Employer to give notice of 28 days to Contractor to If the Tests on Completion delayed by Contractor, Employer to give notice of 28 days to Contractor to conduct Test otherwise Employer carry on with Testing at risk and

conduct Test otherwise Employer carry on with Testing at risk and cost to the Contractor.cost to the Contractor. 9.3 RETESTING

9.3 RETESTING

If the Works or a Section fail to pass the Tests on Completion, Tests to be repeated under the same If the Works or a Section fail to pass the Tests on Completion, Tests to be repeated under the same terms and conditions.

terms and conditions. 9.4

9.4 FAILURE FAILURE TO TO PASS PASS TESTS TESTS ON ON COMPLETIONCOMPLETION If the Works or a

If the Works or a Section fail to pass Tests on Section fail to pass Tests on Completion,Completion, a.

a. Order furtOrder further repetition her repetition of Tests;of Tests; b.

b. Reject thReject the Works e Works or Section;or Section; c.

c. Issue a Taking-Over CertIssue a Taking-Over Certificate subject to reducificate subject to reduced value of ed value of Contract based on agreement with contractor about reduced Contract based on agreement with contractor about reduced

lowered specification lowered specification

(21)

10.0

10.0 Employer’sEmployer’sTaking Over Taking Over 10.1

10.1 TAKING TAKING OVER OF OVER OF THE WORTHE WORKS AND KS AND SECTIONSSECTIONS

The Works shall be taken over by the Employer when the Works have been completed in accordance The Works shall be taken over by the Employer when the Works have been completed in accordance with the Contract.

with the Contract.

The Contractor may apply by notice to the Employer for a

The Contractor may apply by notice to the Employer for a Taking-Over Certificate within 14 days.Taking-Over Certificate within 14 days. The Employer shall, within 28 days after receiving the

The Employer shall, within 28 days after receiving the Contractor’sContractor’s applicationapplication – – a.

a. Issue the Taking-Over CIssue the Taking-Over Certificate to the Certificate to the Contractor;ontractor; b.

b. Reject the application, Reject the application, giving reasons and specifgiving reasons and specifying the workying the work required to be done by the Contractor.

required to be done by the Contractor.

If Employer fails to take-over within 28 days of properly completed works, it is deemed to have been If Employer fails to take-over within 28 days of properly completed works, it is deemed to have been taken over.

taken over. 10.2

10.2 TAKING TAKING OVER OF OVER OF PARTS PARTS OF THE OF THE WORKSWORKS No taking-over of part of the Works unless

No taking-over of part of the Works unless stated in Contract or agreed by both the parties.stated in Contract or agreed by both the parties. 10.3

10.3 INTERFERENCE INTERFERENCE WITH WITH TESTS TESTS ON ON COMPLETIONCOMPLETION

If the Contractor is prevented, for more than 14 days, from carrying out the Tests for which the If the Contractor is prevented, for more than 14 days, from carrying out the Tests for which the Employer is responsible, the Contractor shall carry out the Tests.

Employer is responsible, the Contractor shall carry out the Tests.

If Contractor suffers delay and incurs cost due to delay extension of time and

If Contractor suffers delay and incurs cost due to delay extension of time and contractor’scontractor’s claim will beclaim will be applicable.

applicable. 11.0

11.0 Defects Defects LiabilityLiability 11.1

11.1 COMPLETION COMPLETION OF OUTSTANDIOF OUTSTANDING WORKS NG WORKS AND REMEAND REMEDYING DEDYING DEFECTSFECTS a.

a. Contractor shall comContractor shall complete any work which is outsplete any work which is outstanding withintanding within reasonable time as is instructed by the Employer;

reasonable time as is instructed by the Employer; b.

b. And execute all work reqAnd execute all work required to remedy defuired to remedy defects on or before thects on or before thee expiry date of the

expiry date of the Defects Notification period.Defects Notification period. 11.2

11.2 COST COST OF OF REMEDYING REMEDYING DEFECTSDEFECTS

All work referred to in Sub-Clause 11.1 shall be

(22)

11.3

11.3 EXTENSION EXTENSION OF DEOF DEFECTS FECTS NOTIFICATION NOTIFICATION PERIOPERIO

The Employer shall be entitled to an extension of the Defects Notification period for the Works or a The Employer shall be entitled to an extension of the Defects Notification period for the Works or a Section if it cannot be used for the

Section if it cannot be used for the purposes for which they are intended however, a Defects Notificationpurposes for which they are intended however, a Defects Notification period shall not be extended by more than two years after excluding any delays due to suspension of period shall not be extended by more than two years after excluding any delays due to suspension of Work by the Employer.

Work by the Employer. 11.4

11.4 FAILURE FAILURE TO TO REMEDY REMEDY DEFECTSDEFECTS

If the Contractor fails to remedy any defect or damage within a reasonable time, the Employer, If the Contractor fails to remedy any defect or damage within a reasonable time, the Employer, a.

a. Carry out the work himseCarry out the work himself or by other at thelf or by other at the Contractor’sContractor’s cost;cost; b.

b. Agree or determine Agree or determine a reasonable reductioa reasonable reduction in the Contract Prn in the Contract Price;ice; c.

c. Terminate the CTerminate the Contract as a whole to rontract as a whole to recover all sums paid for thecover all sums paid for thee Works plus financing costs and the cost of

Works plus financing costs and the cost of dismantling the same,dismantling the same, clearing the Site and returning Plant and Materials to the

clearing the Site and returning Plant and Materials to the Contractor.

Contractor. 11.5

11.5 REMOVAL REMOVAL OF OF DEFECTIVE DEFECTIVE WORKWORK

Contractor may remove Plant for repairs with

Contractor may remove Plant for repairs with Employer’sEmployer’s consent.consent. 11.6

11.6 FURTHER FURTHER TESTSTESTS

Remedied work may require further retests at the risk and cost of the Party liable, under Sub-Clause Remedied work may require further retests at the risk and cost of the Party liable, under Sub-Clause 11.2 (Cost of Remedying Defects).

11.2 (Cost of Remedying Defects). 11.7

11.7 RIGHT RIGHT OF OF ACCESSACCESS

Until the Performance Certificate has been issued, the Contractor shall have the right of access to all Until the Performance Certificate has been issued, the Contractor shall have the right of access to all parts of the works.

parts of the works. 11.8

11.8 CONTRACTOR CONTRACTOR TO TO SEARCHSEARCH

The Contractor shall search for the cause of

The Contractor shall search for the cause of any defect and cost of search may any defect and cost of search may have to be borne by have to be borne by thethe Employer unless it relates to Defect in

Employer unless it relates to Defect in Contractor’sContractor’s work.work. 11.9

11.9 PERFORMANCE PERFORMANCE CERTIFICATECERTIFICATE

The Employer shall issue the Performance Certificate within 28 days or as soon thereafter as the The Employer shall issue the Performance Certificate within 28 days or as soon thereafter as the Contractor has supplied

Contractor has supplied Contractor’sContractor’s documents and completed and tested all the Works, if thedocuments and completed and tested all the Works, if the Employer fails to issue the Performance Certificate, the Performance Certificate shall be deemed to Employer fails to issue the Performance Certificate, the Performance Certificate shall be deemed to have been issued.

(23)

11.10 UNFULFILLED OBLIGATIONS 11.10 UNFULFILLED OBLIGATIONS

Even after Performance Certificate, any obligation if unperformed, Contract shall be deemed to be in Even after Performance Certificate, any obligation if unperformed, Contract shall be deemed to be in force.

force.

11.11 CLEARANCE OF THE SITE 11.11 CLEARANCE OF THE SITE

Contractor to clear site on

Contractor to clear site on receiving Performance Certificreceiving Performance Certificate. If not cleared ate. If not cleared within 28 days, Employer willwithin 28 days, Employer will be free to dispose at cost, determined after sale proceeds if any being adjusted in favour of the be free to dispose at cost, determined after sale proceeds if any being adjusted in favour of the Contractor.

Contractor. 12.0

12.0 Tests Tests after after CompletionCompletion 12.1

12.1 PROCEDURE PROCEDURE FOR TEFOR TESTS STS AFTER AFTER COMPLETIONCOMPLETION If tests after completion are specified,

If tests after completion are specified, a.

a. The Employer shall provide The Employer shall provide all electricity, fueall electricity, fuel and materials;l and materials; b.

b. The Contractor shall proThe Contractor shall provide other plant, equvide other plant, equipment and suitipment and suitablyably qualified staff;

qualified staff; c.

c. The Contractor shall The Contractor shall carry out the Tests in the prcarry out the Tests in the presence of esence of Employer’s

Employer’s and/or and/or Contractor’sContractor’s personnelpersonnel 12.2

12.2 DELAYED DELAYED TESTSTESTS

If the Contractor incurs Cost as a result of any unreasonable delay by the Employer to the Tests after If the Contractor incurs Cost as a result of any unreasonable delay by the Employer to the Tests after Completion,

Completion, Contractor’sContractor’s claim as per Sub-Clause 20.1 will apply.claim as per Sub-Clause 20.1 will apply. If this Test is not conducted within Defects Liability Period, Works will

If this Test is not conducted within Defects Liability Period, Works will be deemed to have passed.be deemed to have passed. 12.3 RETESTING

12.3 RETESTING

If Re-Testing is necessary due to failed Tests, same to be repeated, under identical terms and If Re-Testing is necessary due to failed Tests, same to be repeated, under identical terms and conditions.

conditions. 12.4

12.4 FAILURE FAILURE TO PASTO PASS TES TESTS STS AFTER AFTER COMPLETIONCOMPLETION

If the Works fail to pass a Test after Completion and the Contractor proposes to make adjustments, If the Works fail to pass a Test after Completion and the Contractor proposes to make adjustments, modifications, the Contractor shall then remain liable to carry out the adjustments or modifications and modifications, the Contractor shall then remain liable to carry out the adjustments or modifications and to satisfy this test, within a reasonable period of receiving notice by

(24)

13.0

13.0 Variations Variations and and AdjustmentsAdjustments 13.1

13.1 RIGHT RIGHT TO TO VARYVARY

Variations may be initiated by the Employer at any time prior to issuing the Taking-Over Certificate for Variations may be initiated by the Employer at any time prior to issuing the Taking-Over Certificate for the Works.

the Works.

The Contractor shall execute and be bound by each variation, unless the Contractor has reasons, of The Contractor shall execute and be bound by each variation, unless the Contractor has reasons, of capability safety or performance concern.

capability safety or performance concern. 13.2

13.2 VALUE VALUE ENGINEERINGENGINEERING

Contractor may propose ideas to accelerate completion or reduce cost of works and operation (under Contractor may propose ideas to accelerate completion or reduce cost of works and operation (under S.L. 13.3) Employer shall respond at

S.L. 13.3) Employer shall respond at the request of Contractor.the request of Contractor. 13.3

13.3 VARIATION VARIATION PROCEDUREPROCEDURE

Contractor to propose value engineering based changes and indicate changes likely in

Contractor to propose value engineering based changes and indicate changes likely in design, programdesign, program and price. Employer to respond with approval or otherwise if approved time and cost impact to be and price. Employer to respond with approval or otherwise if approved time and cost impact to be determined.

determined. 13.4

13.4 PAYMENT PAYMENT IN IN APPLICABLE APPLICABLE CURRENCIESCURRENCIES

Any effect of above changes in Currency Component to be identified and agreed. Any effect of above changes in Currency Component to be identified and agreed. 13.5

13.5 PROVISION PROVISION SUMSSUMS

Each Provision Sum shall only be used in accordance with the

Each Provision Sum shall only be used in accordance with the Employer’sEmployer’s instructions for eachinstructions for each Provision Sum, the Employer may instruct.

Provision Sum, the Employer may instruct. a.

a. Work tWork to be o be executedexecuted b.

b. Plant and Materials Plant and Materials to be procured by the Cto be procured by the Contractor includingontractor including overheads and profits at agreed

overheads and profits at agreed rates.rates. 13.6 DAYWORK

13.6 DAYWORK

For minor works variation shall be executed on day

For minor works variation shall be executed on day work basis as per price schedule in work basis as per price schedule in the Contract.the Contract. The contractor shall then submit priced statement of these resources to the Employer, prior to their The contractor shall then submit priced statement of these resources to the Employer, prior to their inclusion in the next