Resource Allocation by alicejenny




          Maha Muhaisen

 General Conditions of contract
 Theconditions are intended to govern and
 regulate the obligation of formal contract.

 Although  the headings and topics included
 within different sets of GCC vary, there is
 a certain similarity of subject matter
                  Contents of GCC
   Definitions
   Contract documents
   Rights and responsibilities of owner
   Duties and authorities of engineer
   Rights and responsibilities of contractor
   Sub-contractor, Separate contractors
   Time
   Payments and completions
   Changes in the work
   Protection of persons and property
   Insurance and bond
   Disputes
   Termination of contract
   Miscellaneous provisions

 Founded in 1913
 Expanded in 1945 to include 40 national associations
 Published first Conditions of Contract in 1957
 In 2004 has 64 member associations
 Headquarters in Switzerland
 Web Site :

 Pre  1957 – no internationally recognised
  contract conditions
 First “red book” based on UK ICE
 FIDIC has international committees to
  improve contracts
   Contract Documents 1999
 Conditions  of Contract for Construction
  (Red Book)
 Conditions of Contract for Plant & Design
  Build (Yellow Book)
 Conditions of Contract for EPC Turnkey
  Projects (Silver Book)
 Short Form of Contracts (Green Book)
     FIDIC Document Usage
      Conditions of Contract for

 Works designed by Employer or Engineer
 Contractor Constructs in accordance with
  designs provided
 May include some design elements
         FIDIC Document Usage
Conditions of Contract for, Plant & Design

           & Mechanical Plant
 Electrical
 May include building and engineering
 Design & Execution of works
 Contractor designs and constructs in
  accordance with Employer’s Requirements
 Engineer Administers
     FIDIC Document Usage
          Short Form of Contract

 Small capital value projects
 Simple content
 Contractor constructs to Employer’s
 No “Particular Conditions”
 No “Impartial” Engineer
Typical sequence of Principal
  Events during Contracts
     Typical sequence of Payment Events
     envisaged in Clause 14(contract price
                and payment)
              14.3 Contractor           14.6 Employer               14.7 Employer
              submits                   gives Contractor            makes the
              Statement to the          notice of amount            payment to the
              Employer                  considered due              Contractor

Each of the
monthly (or
interim                 <28d

The final       Employer verifies the draft final statement, Contractor
payment                          submits information

              14.11 Contractor submits                                    14.11 Contractor            14.7 employer
              draft final statement to the                                submits Final Statement     makes payment
              Employer                                                    and the 14.12 discharge
Events envisaged in Clause

  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
    FIDIC conditions of contract
1.1 Definitions
1.2 Interpretation
1.3 Communications
1.4 Law and Language
1.5 Priority of Documents
1.6 Contract Agreement
1.7 Assignment
1.8 Care and Supply of Documents
1.9 Delayed Drawings or Instructions
1.10 Employer’s Use of Contractor’s Documents
1.11 Contractor’s Use of Employer’s Documents
1.12 Confidential Details
1.13 Compliance with Laws
    FIDIC conditions of contract cont’d
2.1 Right of Access to the Site
2.2 Permits, Licenses or Approvals
2.3 Employer’s Personnel
2.4 Employer’s Financial Arrangements
2.5 Employer’s Claims

3.1 Engineer’s Duties and Authority
3.2 Delegation by the Engineer
3.3 Instructions of the Engineer
3.4 Replacement of the Engineer
3.5 Determinations
    FIDIC conditions of contract cont’d
4.1 Contractor’s General Obligations
4.2 Performance Security
4.3 Contractor’s Representative
4.4 Subcontractors
4.5 Assignment of Benefit of Subcontract
4.6 Co-operation
4.7 Setting Out
4.8 Safety Procedures
4.9 Quality Assurance
4.10 Site Data
4.11 Sufficiency of the Accepted Contract Amount
4.12 Unforeseeable Physical Conditions
4.13 Rights of Way and Facilities
4.14 Avoidance of Interference
4.15 Access Route
4.16 Transport of Goods
4.17 Contractor’s Equipment
4.18 Protection of the Environment
4.19 Electricity, Water and Gas
4.20 Employer’s Equipment and Free-Issue Material
4.21 Progress Reports
4.22 Security of the Site
4.23 Contractor’s Operations on Site
4.24 Fossils
5.1 Definition of “nominated Subcontractor”
5.2 Objection to Nomination
5.3 Payments to nominated Subcontractors
5.4 Evidence of Payments
6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of Labour
6.3 Persons in the Service of Employer
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6.7 Health and Safety
6.8 Contractor’s Superintendence
6.9 Contractor’s Personnel
6.10 Records of Contractor’s Personnel and Equipment
6.11 Disorderly Conduct
6.12 Foreign Personnel
6.13 Supply of Foodstuffs
6.14 Supply of Water
6.15 Measures against Insect and Pest Nuisance
6.16 Alcoholic Liquor or Drugs
6.17 Arms and Ammunition
6.18 Festival and Religious Customs
6.19 Funeral Arrangements
6.20 Prohibition of Forced or Compulsory Labor
6.21 Prohibition of Harmful Child Labour
6.22 Employment Records of Workers
7.1 Manner of Execution
7.2 Samples
7.3 Inspection
7.4 Testing
7.5 Rejection
7.6 Remedial Work
7.7 Ownership of Plant and Materials
7.8 Royalties
8.1 Commencement of Works
8.2 Time for Completion
8.3 Programme
8.4 Extension of Time for Completion
8.5 Delays Caused by Authorities
8.6 Rate of Progress
8.7 Delay Damages
8.8 Suspension of Work
8.9 Consequences of Suspension
8.10 Payment for Plant and Materials in Event of Suspension
8.11 Prolonged Suspension
8.12 Resumption of Work
9.1 Contractor’s Obligations
9.2 Delayed Tests
9.3 Retesting
9.4 Failure to Pass Tests on Completion
10.1 Taking Over of the Works and Sections
10.2 Taking Over of Parts of the Works
10.3 Interference with Tests on Completion
10.4 Surfaces Requiring Reinstatement
11.1 Completion of Outstanding Work and Remedying Defects
11.2 Cost of Remedying Defects
11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects
11.5 Removal of Defective Work
11.6 Further Tests
11.7 Right of Access
11.8 Contractor to Search
11.9 Performance Certificate
11.10 Unfulfilled Obligations
11.11 Clearance of Site
   12.1 Works to be Measured
   12.2 Method of Measurement
   12.3 Evaluation
   12.4 Omissions
   13.1 Right to Vary
   13.2 Value Engineering
   13.3 Variation Procedure
   13.4 Payment in Applicable Currencies
   13.5 Provisional Sums
   13.6 Daywork
   13.7 Adjustments for Changes in Legislation
   13.8 Adjustments for Changes in Cost
14.1 The Contract Price
14.2 Advance Payment
14.3 Application for Interim Payment Certificates
14.4 Schedule of Payments
14.5 Plant and Materials intended for the Works
14.6 Issue of Interim Payment Certificates
14.7 Payment
14.8 Delayed Payment
14.9 Payment of Retention Money
14.10 Statement at Completion
14.11 Application for Final Payment Certificate
14.12 Discharge
14.13 Issue of Final Payment Certificate
14.14 Cessation of Employer’s Liability
14.15 Currencies of Payment
15.1 Notice to Correct
15.2 Termination by Employer
15.3 Valuation at Date of Termination
15.4 Payment after Termination
15.5 Employer’s Entitlement to Termination for Convenience
15.6 Corrupt or Fraudulent Practices
16.1 Contractor’s Entitlement to Suspend Work
16.2 Termination by Contractor
16.3 Cessation of Work and Removal of Contractor’s Equipment
16.4 Payment on Termination
17.1 Indemnities
17.2 Contractor’s Care of the Works
17.3 Employer’s Risks
17.4 Consequences of Employer’s Risks
17.5 Intellectual and Industrial Property Rights
17.6 Limitation of Liability
17.7 Use of Employer’s Accommodation/Facilities
18.1 General Requirements for Insurances
18.2 Insurance for Works and Contractor’s Equipment
18.3 Insurance against Injury to Persons and Damage to Property
18.4 Insurance for Contractor’s Personnel
19.1 Definition of Force Majeure
19.2 Notice of Force Majeure
19.3 Duty to Minimize Delay
19.4 Consequences of Force Majeure
19.5 Force Majeure Affecting Subcontractor
19.6 Optional Termination, Payment and Release
19.7 Release from Performance
20.1 Contractor’s Claims
20.2 Appointment of the Dispute Board
20.3 Failure to Agree on the Composition of the Dispute Board
20.4 Obtaining Dispute Board’s Decision
20.5 Amicable Settlement
20.6 Arbitration
20.7 Failure to Comply with Dispute Board’s Decision
20.8 Expiry of Dispute Board’s Appointment
        General conditions

 The following are main items that include
 in the general conditions for the tender ( or
 the construction contract.
Main definitions related to :
 Contract : include contract agreement, letter of acceptance, letter of
  tender, specifications, drawings, schedules, tender, appendix to
  tender, bill of quantities.
 parties and persons : party, employer, contractor, engineer,
  contractor representative, employers' personnel, contractors
  personnel, sub- contractor, DAB (dispute adjudication board), Fidic.
 Dates , tests, periods and completion include base date,
  commencement date, time of completion, test on completion, taking
  over certificate, defects notification period, performance certificate,
 Money and payment: accepted contract amount, contract price,
  cost, final , interim payment certificate, currency, provisional sum,
  retention money,
The main definitions that are included in and repeated in the articles
  of general conditions, are:
 Employer : The party named in the Contract as the "FIRST
  PARTY" who 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 exercise the powers and
  obligations of the First Party, provided that the Contractor will be
  informed accordingly in writing .
 Contractor : The person, company or joint venture named as
  Second Party in the Contract whose Tender has been accepted
  by the Employer and with whom the Employer has entered into
  Contract, and includes the Contractors personal agents and his
  legal successors
 Engineer: The Consulting office, or Engineering office or
  Engineer or any other technical body appointed from time to time
  by the Employer to exercise in whole or in part the powers of the
  Engineer in accordance with the Conditions of the Contract
  provided that the Contractor shall be accordingly notified in
                       Definitions, Cont’d
   Engineers Representative - Any resident engineer, or clerk of works
    appointed by the Engineer from time to time
   Contract - The documents constituting these Conditions (Parts I
    and II), the Specification, the Drawings, the Bill of Quantities, the
    Tender, the Letter of Acceptance, the Contract Agreement, and
    such further documents as may be expressly incorporated in the
    Letter of Acceptance or Contract Agreement (if completed).
   Contract Sum - The sum stated in the Letter of Acceptance as
    payable to the Contractor for the execution and completion of the
    Works and the remedying of 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 provisions of the
   Equipment is the Contractor’s machinery and vehicles brought
    temporarily to the Site to construct the Works.
   Site - The land and other places provided by the Employer or
    designated as such where the Works are to be executed, and any
    other places specifically designated in the Contract as forming part
    of the Site.
   approval (written approval)
   time (calendar / working days)
         Engineer's Duties and Authority

 a) The Engineer shall carry out the duties specified in the
  Contract .
 b) The Engineer shall exercise the authority specified in or
  necessarily to be implied from the Contract .
      Provided, that the Engineer shall obtain the specific
  approval of the Employer, in compliance with the terms of his
  appointment, and after submitting his recommendations to the
  Employer in writing, in the following matters :
    issuing variation orders;

    deciding on the extension of Time for Completion and
     applying the Liquidated Damages Clause;
    approving the appointment of Subcontractors;

    notifying the Contractor on suspension of Works; and any
     other matters as may be set out in Part II of these
 (c) Except as expressly stated in the Contract, the Engineer
  shall have no authority to relieve the Contractor of any of his
  obligations under the Contract
Engineer's Representative

      The Engineer's Representative shall be
    appointed by and be responsible to the
    Engineer and shall carry out such duties of
    watching and supervising the execution and
    workmanship of the Works and to test and
    examine any materials to be used or
    workshop employed in connection with the
    Works. He shall exercise such authority as
    may be delegated to him by the Engineer
Engineer's Authority to Delegate
 The Engineer may from time to time delegate to the
  Engineer's Representative any of the duties and authorities
  vested in the Engineer and he may at any time revoke such
  delegation. Any such delegation or revocation shall be in
  writing and shall not take effect until a copy thereof has
  been delivered to the Employer and the Contractor .
 Any communication given by the Engineer's Representative
  to the Contractor in accordance with such delegation shall
  have the same effect as though it had been given by the
      Provided that :
      (a)       any failure of the Engineer's Representative to disapprove
       any work, materials or Plant shall not prejudice the authority of the
       Engineer to disapprove such work, material or Plant and to give
       instructions for the rectification thereof;
      (b)       if the Contractor questions any communication of the
       Engineers Representative, he may refer the matter to the Engineer
       who shall confirm, reverse or vary the contents of such
       communication .
                   Contractor’s General Obligations

 The Contractor shall design (to the extent specified in the
  Contract), execute and complete the Works in accordance
  with the Contract and with the Engineer’s instructions, and
  shall remedy any defects in the Works.
 The Contractor shall provide the Plant and Contractor’s
  Documents specified in the Contract, and all Contractor’s
  Personnel, Goods, consumables and other things and
  services, whether of a temporary or permanent nature,
  required in and for this design, execution, completion and
  remedying of defects.
 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 specified in the Contract, the
  Contractor :
       shall be responsible for all Contractor’s Documents, Temporary Works,
        and such design of each item of Plant and Materials as is required for
        the item to be in accordance with the Contract, and
       shall not otherwise be responsible for the design or specification of the
        Permanent Works.
     Contractor’s General Obligations,
   The Contractor shall, whenever required by the
    Engineer, submit details of the arrangements and
    methods which the Contractor proposes to adopt for
    the execution of the Works. No significant alteration to
    these arrangements and methods shall be made
    without this having previously been notified to the
   If the Contract specifies that the Contractor shall
    design any part of the Permanent Works, then unless
    otherwise stated in the Particular Conditions:

      A.   the Contractor shall submit to the Engineer the Contractor’s
           Documents for this part in accordance with the procedures
           specified in the Contract;
      B.   these Contractor’s Documents shall be in accordance with the
           Specification and Drawings, shall be written in the language for
 Assignment of Contract
The Contractor shall not, without the prior consent of the Employer, assign the
  Contract or any part thereof, or benefit or interest therein or thereunder,
  otherwise than by :
       a charge in favor of the Contractor's bankers of any moneys due or to become
        due under the Contract, or
       assignment to the Contractor's insurers of the Contractor's right to obtain relief
        against any other party liable.

 Subcontracting
  The Contractor shall not subcontract the whole of the Works. Except where
  otherwise provided by the Contract, the Contractor shall not subcontract any
  part of the Works without the prior consent of the Engineer, (subject to
  approval required by Sub-Clause 2.1). Any such consent shall not relieve
  the Contractor from any liability or obligation under the Contract and he
  shall be responsible for the acts, defaults and neglects of any
  Subcontractor, his agents, servants or workmen as fully as if they were the
  acts, defaults or neglects of the Contractor, his agents, servants or
       Provided that the Contractor shall not be required to obtain such
  consent for :
       (a)       the provision of labour, or
       (b)       the subcontracting of any part of the Works for which the
        Subcontractor is named in the Contract.
   Assignment of Subcontractor's Obligations
    In the event of a Subcontractor having undertaken
    towards the Contractor in respect of the work
    executed, or the goods, materials, Plant or services
    supplied by such Subcontractor, any continuing
    obligation extending for a period exceeding that of
    the Defects Liability Period under the Contract, the
    Contractor shall at any time, after the expiration of
    such Period, assign to the Employer, at the
    Employer's request and cost, the benefit of such
    obligation for the unexpired duration thereof.
       Language and Law
 a)Arabic language shall be the ruling
 language of the Contract Documents
 unless stated otherwise in these
 conditions, and consequently all
 correspondence, payment statements, and
 take-over certificates shall be drawn in this
          Priority of Contract Documents

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

   The Contractor, upon receiving the Letter of Acceptance,
    shall obtain and provide to the Employer before signing
    the Contract, the Performance Guarantee in the value of
    ten percent of the Contract Sum, as a guarantee of the
    proper execution of the Works in accordance with the
    Contract. This guarantee shall be issued by a licensed
    bank or financial institution acceptable to the Employer.
    The guarantee shall be prepared in the form included in
    part B of these conditions. The obtaining of such
    guarantee shall in all respects be at the expense of the
                        Inspection of Site
   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 conditions as have been obtained by or on behalf of the
    Employer from investigations undertaken relevant to the Works but the
    Contractor shall be responsible for his own interpretation thereof.

   The Contractor shall be deemed to have inspected and examined the Site
    and its surroundings and information available in connection therewith and
    to have satisfied himself (so far as time is practicable), before submitting
    his Tender, as to :
     (a) the form and nature thereof, including the sub - surface conditions,
     (b) the hydrological and climate conditions,
     (c) the extent and nature of work and materials necessary for the execution and
        completion of the Works and the remedying of any defects therein, and
     (d) the means of access to the Site and the accommodation he may require and,
        in general, shall be deemed to have obtained all necessary information,
        subject as above mentioned, as to risks, contingencies and all other
        circumstances which may influence or affect his Tender.
   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 aforementioned.
            Sufficiency of Tender

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

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

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

 The  contractor shall within time stated in
  Part II provide a detailed cash flow
  estimate, in quarterly period, for all
  payments to which the contractor will be
  entitled under the contract (to the
  engineer) and the contractor shall
  subsequently supply revised cash flow
  estimates at quarterly intervals, if
  required to do so by the engineer.
 Such cash flow statements do not relieve
  the contractor of any of this duties or
       The contractor is needed to provide all necessary superintendence
  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.
       If the approval of Contractor’s representative is withdrawn by the
  Engineer then Contractor shall replace him by any other representative
  approved by the Engineer.
       The contractor shall provide on the site only skilled and experienced
  technical assistants and foremen to provide proper superintendence to
  skilled, semiskilled and unskilled labour as is necessary.
       The Client’s engineer having objection on the contractor’s worker
  when they misconduct themselves, or are incompetent or              negligent in
  the proper performance of his duties. Such workers should be replaced
  as soon as possible.
       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 connection with the foregoing           responsibilities.
       The contractor shall rectify any error if caused regarding setting out
  unless it was caused due to incorrect data provided by Engineer in

   The Contractor shall insure the following
       The full replacement cost for the plant and
        materials to be incorporated in the works
        plus 15 percent of the full replacement cost
        in addition to be insured for the additional
        costs like rectification of loss or damage,
        Professional fees, Demolishing cost and
        removing the debris from the work.
       The Contractor’s Equipment and other things
        brought to the site for a sum sufficient for its
      For the cases mentioned the insurance will be in the
  joint names of the contractor and the employer, and shall
       (a)       the employer and the contractor against all loss or
       damage other than force Majeure causes stated in 21.4 from
       start of work till take over by Employer.
       (b)       the contractor during Defects Liability Period for loss or
       damage caused prior to beginning of Defects Liability Period.

     There shall be no obligation of insurance under
  clause 21.1 to cover force Mejure issues such as
      War, Hostilities, Invasion, Act of Foreign enemies.
      Rebellion, Revolution, Insurrection, Military or usurped power or
       civil war.
      ionizing radiation, Contamination by radioactivity
      Pressure waves from aircraft or other aerial devices
       The Contractor indemnifies and holds harmless, the Employer on
    following issues.
    a)   Death of or Injury to any person or
    b)   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

       The exceptions referred above are
a)   The permanent use or occupation of land by the works.
b)   The right of employer to execute the works over under or through the land.
c)   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 Contract.
d)   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 employed by the contractor.
The Employer shall indemnify the Contractor against all claims arising out of
     exceptions provided in the contract.

      The Contractor shall insure in the joint names of the Employer and
    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 performance of contract. This insurance is not to cover
    the exceptions above
     The Contractor shall insure in the joint
  names of the Employer and 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 performance of
     The insurance made shall be for at
  least the amount specified in the appendix
  of the Tender.
   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
    manner as the Engineer may consider necessary and shall, during
    such suspension, properly protect and secure the Works or such part
    thereof so far as is necessary in opinion of the Engineer. Unless such
    suspension is :
a) otherwise provided for in the Contract, or
b) necessary by reason of some default of or breach of contract by the
    Contractor or for which he is responsible, or
(c) necessary by reason of climatic conditions on the Site, or
(d) 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 from any act or default by the Engineer or the Employer or from
    any of the risks defined in GCC), or
(e) by mutual agreement in writing by both parties to the Contract,
    provided that the Employer shall not suffer the expenses resulting from
    such suspension, provided always that the Contractor shall not be
    entitled to recover any such extra expenses unless he gives to the
    Engineer written notice of his intention to claim within (28) days of the
    Engineers order,
Engineer's Determination Following Suspension
  The engineer shall after consulting the contractor and the
  employer determine,
  -   Any extension of time
  -   The amount to be added to the contract price, due to
  If the progress of the work is suspended for more than 84
  days then the contractor can give a notice for resumption of
  work within 28 days of receipt of order. If permission for
  resumption is not given within the said period then the
  contractor can consider it as termination of contract.
                 Time for Completion

     The whole of the Works and, required to be
  completed within a particular time as stated in the
  Appendix to Tender, shall be completed,, within
  the time stated in the Appendix to Tender for the
  whole of the Works or the Section (as the case
  may be), calculated from the Commencement
  Date, or such extended time as may be allowed
  under next clauses.
     No mobilisation period will be allowed for as an
  extension of the Completion Time, as such period
  is considered to be included in it.
            Extension of Time for Completion

  In the event of :
(a)      the amount or nature of extra or additional work, or
(b)      any cause of delay referred to in these Conditions, or
(c)exceptionally adverse climatic condition (but no extension
   of time shall be granted for the anticipated climatic
   changes), or
(d)      any delay, impediment or prevention by the Employer,
(e)      other special circumstances which may occur, other
   than through a 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 extension of the Time
   for Completion of the Works, or any Section or part thereof,
   the Engineer shall, after due consultation with the Employer
   and the Contractor, determine the amount of such
   extension and shall notify the Contractor accordingly, with a
   copy to the Employer.
    Contractor to Provide Notification and Detailed

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

(a)     within 28 days after such event has first arisen
   notified the Engineer with a copy to the Employer, and
(b)     within 28 days, or such other reasonable time as
   may be agreed by the Engineer, after such notification
   submitted to the Engineer detailed particulars of any
   extension of time to which he may consider himself
   entitled in order that such submission may be
   investigated at the time.
          Interim Determination of Extension

       If it is impracticable for contractor to provide
    details of delay within 28 days, the extension shall still
    be granted, if contractor can provide interim details.
    But the full details of event need to be provided within
    28 days of the end of the effects resulting from
               Liquidated Damages for Delay
 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 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 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 relevant Section,
  subject to the applicable limit stated in the Appendix to Tender.
 The Employer may, without prejudice to any other method of
  recovery, 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 not relieve the Contractor from his obligation
  to complete the Works, or from any other of his obligations and
  liabilities under the Contract.
 The rate of liquidated damages stated in the Appendix to Tender is
  exclusive of any additional supervision costs in respect of the
  unjustified time lapse in completing the Works, and the Contractor
  shall bear such costs.
       Reduction of Liquidated Damages

   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 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
    any period of delay after the date stated in such Taking-
    Over Certificate, and in the absence of alternative
    provision in the 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 applicable.

   The provisions of this Clause shall only apply to the rate
    of liquidated damages and shall not affect the limit
                  Taking-Over Certificate
 When the whole of the Works have been substantially completed
  and have 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 to the Employer, accompanied by a
  written undertaking to finish with due expedition any outstanding
  work during the Defects Liability Period. Such 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
 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 either certify that the works have been properly
  completed or ready for 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 Contractor and to the
  Engineer's satisfaction, within a prescribed period of 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, 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 Taking-Over of the Works.
   The Employer shall, within ten days from receipt of the Engineer's report,
    form a "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 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 work.
   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 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 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 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 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 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.
   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 date of signing the memorandum. The Engineer,
    in such a case, shall study the objection and submit his findings to the

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
    Contractor to do so and the Contractor shall do any of the following:
    a) Increase or decrease the quantity of any work included in the
    b) Omit any such work (but not if the omitted work is to be carried
    out by the Employer or by      another contractor).
    c) Change the character or quality or kind of any such work.
    d) Change the levels, lines, position and dimensions of any part of
    the works.
    e) Execute additional work of any kind necessary for the
    completion of the works.
    f) Change sequence or timing of construction.
 The Contractor is not supposed to make any variation without an instruction of the
 Engineer. No instructions are required if work execution results into
 increase/decrease of quantities than those stated in the Bill of quantities.
 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
 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
 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-
 account payments to be included in certificates issued
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 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 clause of payment, 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 varied rates.
  If, on the issue of the Taking-Over Certificate for the Whole of the Works, it is found
  that as a result of:
  a)      All varied work valued under Sub-Clause 52.1 and 52.2 and
  b)      all adjustments upon measurement of the estimated quantities set out in the
  Bill Of Quantities, excluding Provisional Sums, day works and adjustments of price
  made under Clause of increase or decrease of the cost that the contract price has
  varied in 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 related to 15% excess level over contract price.
  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
  provided in the day work schedule.
DEFINITION       “Provisional Sum” means a sum (if
 any) which is specified in the contract as a
 provisional sum. Provisional Sum shall only be
 used in whole or in part, in accordance with the
 Engineers instructions and the Contract Price shall
 be adjusted accordingly.
  The engineer shall have authority to issue
  instruction for the execution of work or for supply of
 The contractor shall submit to the Engineer after the
 end of each month six copies of statements
 showing the amounts to which the contractor
 considers himself to be entitled up to the end of the
 month in respect of:
      a)The value of the permanent work.
      b)Any other item in the Bill of Quantities including those for
         contractor’s equipment.
      c) And plant delivery by the contractor on the sire for
         incorporation in the permanent works but not incorporated
         in such works.
      d)Adjustment under the clause 70.
      e)Any other sum to which the contractor may be entitled under
   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.
a) Firstly to retention of the amount calculated by applying the percentage of retention
   stated in the appendix to tender until the amount so retained reaches the limit or
   retention money stated in the         appendix to Tender.
b) Secondly to the deduction other than pursuant to clause 47 of any sums 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,          after the retention and deduction, would be less than the minimum
   Amount of interim payment certificate stated in the appendix to tender.
  a)    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 Contractor.
  b)    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 expression “expiration of the Defect Liability Period” shall for the
  purpose of the clause, be deemed to mean the expiration of        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 to clause 49 and 50 in respect of
  the works the Engineer shall be entitled to withhold certification until completion of
  such work.
  The Engineer May in any interim Payment Certificate carryout any correction or modification
  in any previous Interim Payment Certificate.
  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 showing in detail,
  a)     The final value of all work done
  b)     Any further sums which the contractor considerers to be due and
  c)     An estimate of amount which contractor considers will become due. The engineer
  shall certify payment
  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.
  a)     The value of all the work done in accordance with the contract
  b)     Any further sum which contractor consider to be due to him. If the Engineer disagree
  or cannot           verify any part of draft final statement, contractor shall submit any further
  information required.
  The Engineer shall deliver to the Employer an Interim Payment Certificate for those part of
  the draft final statement, which are not in dispute.
   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
   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.

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

   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 statement.

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

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