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Insurance, Evidence and Terms ofInsuralce, Minimum Amounl ofInsurance of Works and Contractor's EquipmentInsurance, Remedy on Failure to InsureInsurarce, Responsibility for Amounts not RecoveredInsurarce, Scope of CoverInsurance, Third PafyInsurarce, WorkmenInterference with Traffìc and Adjoining hoperriesInterim Determination of ExtensionInterpretations

Labour, Engagement ofLangtage/s and LawLaw to which Confact SubjectLegislation, Subsequent

Lighting, Fencing, Watching, etc.

Liquidated Damages for DelayLiquidated Damages, Reduction ofLoss or Damage due to Employer's RisksLoss or Damage - Responsibility to RectifyLump Sum Items - Breakdown of

Materials a¡d Plant, Transport ofMaterials - Approval of, etc, not ImpliedMaterials, Improper - Removal ofMaterials, Quality ofMaterials, Supply ofMeasurement by Engineer

Measurement, Method ofMeasurement, Quantities Estimated OnlyMethods of Construction

Minimum Amount of Insu¡ance

Monthly Payments

Nominated Subcontractors, Certification of payments toNominated Subcontractors, DefìnitionNominated Subcontractors, Design byNominated SubconÍactors, Objection to NominationNominated Subcontracto¡s, Payment toNot Foreseeable Physical Obstructions or ConditionsNotice of ClaimsNotices and Fees, Paymenl ofNotices, Consents and ApprovalsNotice to ContractorNotice to Employer and Engineer

Objections to Conracro¡'s Employees

Obstructions or Conditions - Not Foreseeable physical

Omissions, Alterations and Additions' Openings, Uncovering and making

Operations, Inspection ofOrder of 'Work, Contraclor to Furnish programme

Other Contractors, Opportunities for

Patent Rights

Payment if Contract Terminated for Contractor's DefaultPayment if Contract Terminated for Employer,s DefaultPayment of Claims

Clause

25.1

23.221.1

25.321.321.223.1

24.229.1

44.31.3

34.1

5.1

5.170.219.r47.1

47.220.320.257.2

30.39.839.1

36.1

8.1

56.1

57.1

55.1

8.223.260.2

59.559.1

59.359.259.412.2

53.1

26.1

1.5

68.1

68.2

16.2't2.2

59.

æ.237.1

14.1

31.1

28.1

63.369.353.5

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Payment, Time forPerformance Security

Performance Security - Claims Under :

Performance Security - Period of ValidityPeriod of Defects LiabilityPermanent Works Designed by ContractorPhysical Obstructions or Conditions - Not Foreseeable

Physical Obstructions or Conditions - Engineer's DeterminationPlant and Materials, Transport ofPlant, Conditions of Hí¡ePlant, Customs Clea¡ance

Plant, Employer not Liable for damage to

Plant, etc. - Exclusive Use for the riy'orks

Plant, Quality ofPlant, Re-export ofPlant, Removal ofPolicy of Insurance - Compliance with Conditions

Possession of Site

Possession of Site, Failure to GivePower of Engineer to Fix Rates

Priority of Contract Documents

Programme to be Submitted

Progress - Disruption ofProgress - Rate ofP¡otection of Envi¡onment

Provision to bdemnify ContractorProvision to Indemnify Employer

Provisional Sums, Currencies of Payment

Provisional Sums, Defi nitionProvisional Sums, Production of Vouche¡s

Provisional Sums, Use of

Quality of Materials and Workmanship

Quantities

Rate of Progress

Rates of Exchangè

Rates, Power of Engineer to FixRectification of Loss or Damage

Reduction of Liquidated Damages

Re-export of Plant

Regulations, Statutes, etc., Compliance withRejection

Release from Performance

Remedies for Default of Contractor

Remedying of Defects

Remedying of Defects, Cost ofRemedy on Contractor's Failu¡e to Insure

Removal of Contractor's Employees

Removal of Cont¡acto¡'s EquipmentRemoval of Improper Work, Materials or Plant

Removal of Pla¡t, etc.

Responsibility to Rectify Loss or Damage

Responsibility Unaffected by ApprovalRestriction on Working HoursResumption of Wo¡kRetention Money, Payment ofReturns of Labour and Contractor's Equipment

O FID]C 1987

60.1010.1

10.310.249.1

7.212.212.330.39.554.354.254.1

36.154.439.12s.442.1

42.252.25.2

14.1

6.346.1

19.1

22.322.272.358.158.3æ.2

36.155.1

46.1

72.152.220.247.2æ.426.1

37.466.1

63.1

49.249.325.316.269.239.1

65.720.27-3

45.1

69.560.335.1

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Revised hogrammeRights of Way and Facilities

Risks, Employer's

Risks, Special

Roads, etc., - Damage by Extraordinary TrafficRoads, Interference with Access toRoyalties

Safefy, Securify and Protection of the EnvironmentSamples, Cost ofSecurity, Safety and Protection of the EnvironmentSening-Out

Singular a¡d Plura.l

Site, Clearance on CompletionSite, Contractor to Keep ClearSite, Inspection of by ContractorSite Operations and Methods of Construction

Site, Possession ofSpeciaJ Risks

Staff, Engagement ofStatement at CompletionStatement, FinalStatutes, Regulations, etc. - Compliance withSubcontracting

Subcontractors, Nominated

Subcontractors, Responsibiliry of the Cont¡actor fo¡ Acts and Default ofSubsequent Legislation

Substantial Completion of Sections or Parts

Sufhciency of Tender

Supply of Plant, Materials and LabourSurfaces Requiring Reinstatement

Suspension, Engineer's DeterminationSuspension lasting more than 84 days

Suspension of Work

Taking Over Certificate

Taking Over of Sections or Pa¡ts

Tender Documents

Tender, Sufficiency ofTermination of Contract by EmplolerTermination of Contract by Employer, Assignment of BenefitTerms of Insurance

Tests, Cost ofTests not Provided for - Cost ofThird Parry Insurance

Time for Completion

Time for Completion, Extension ofTime for Payment

Traffic, Exnaordinary

Traffi c, Interference with

Trafflc, Waterbome

Transport of Contractor's Equipment and Temporary WorksTransport of Mate¡ials and Plant

Uncovering Work and Making Openings

Unfulfilled Obligations

Urgent Remedial Work

Clause

14.242.320.465.30.1æ.12A.2

19.1

36.219.1

17.1

1.433_1

32.1

11.1

8.242.1

65.u.160.560.626.1

4.1

59.4.1

70-248.312.1

8.1

ß.440.240.340.1

48.1

48.211.1

12.1

63.1

63.425.1

36.336.4

23.1

43.1

M.160.1030.1

æ.130.430.230.3

38.262.2

64.1

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Valuation at Date of Termination by tbe EmployerVariations

Va¡iations, Daywork Basis

Variations, Exceeding l5 percentVariations, Inskuctions forVariations, Power of the Engineer to Fix RatesVariations, Valuation ofVouchers, P¡oduction of

War, Outbreak ofWatching and Lighting, etc.'Waterbome TrafficWork, Examination of Before Covering UpWork, Imprope¡ Removal ofWorking Hours, Restriction ofWorkmanship, Qualiry ofWorkmen, Accident or Injury toWorks, Care of'Works, Completion of (Defects Liability Certifrcate)Works, Commencement ofWorks, Insurance ofWorks, Remedying of Defects

Works, Time for Completion ofWorks to be Measured

Work, Suspension ofWork to be in Accordance with the Contract

Clause

63.251.152.452.3

51.252.251.358.3

n.4t9.t30.438.139.1¿15.1

36.124.120.1

62.1

41.1

21.1

49.24Ít.156.1æ.113.1

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TENDER

NAME OF CONTRACT: *

duly authorised to sign tenders for and on behalf of

(IN BLOCK CAPITALS)

Witness

Address

Occupation

(Note: All details marked * shall be inserted before issue of Tender documents.)

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Gentlemen,

Having examined the conditions of contract, Specihcation, Drawings, and Bill ofQuantities and Addenda Nos for the execution of the above-named works,we, the undersigned, offer to execute and complete such Works and remedy any defectsth_e1ein in conformity with the conditions of contract, Specification, Diawings, Billof Quantities and Addenda for the sum of

(

Dated this day of 19 _Signature in the capacity of

)

2.

3.

or such other sum as may be ascertained in accordance with the said Conditions

We acknowledge that the Appendix forms part of our Tender.

we undertake, if our Tender is accepted, to commence the works as soon as isreasonably possible after the receipt of the Engineer's notice to commence, and tocomplete the whole of the V/orks comprised in the Contract within the time stated inthe Appendix to Tende¡.

we agree to abide by this Tende¡ for the period of +_ days from the date hxed forreceiving the same and rf shall remain binding upon us and mãy be accepted at any timebefore the expiration of that period.

Unless and until a formal Agreement is prepared and executed this Tender, togetherwith your written acceptance thereof, shall constitute a binding contract between us.'we understand that you are not bound to accept the lowest or any tender you mayreceive.

4.

5.

6.

Address

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Appendix

Sub-Clause

Amount of security (if any) 10.1

Minimum amount of third party insurance 23.2

Time for issue of notice to commence 41.r

Time for Completion 43.r

Amount of liquidated damages

per centof the Contract Price

peroccurrence, with the numberof occurrences unlimited

days

days

47.7 per day

I-imit of liquidated damages 47.1

Defects Liability Period 49.r days

Percentage for adjustment of Provisional Sums 59.4(c) percent

Percentage of invoice value of listed materialsandPlant 60.1 (c) percent

Percentage of Retention 60.2 percent

Limit of Retention Money 60.2

Minimum Amount of InterimPayment Certificates 60.2

Rate of interest upon unpaid sums 60.10 per cent per annum

rnitials of Signatory of Tender

(Notes: All details in the list above, other than percentage figure against Sub-Clause 59.4,shall be inserted before issue of Tender documents. Where a number of days is to beinsefed, it is desirable, for consistency with the Conditions, that the number should be amultiple of seven.

Additional entries are necessary where provision is included in the Contract for:

(a) completion of Sections (Sub-Clauses 43.1 and 48.2(a))

(b) liquidated damages for Sections (Sub-Clause 47.1)

(c) a bonus (Sub-Clause 47.3 - PaÍ II)

(d) payment for materials on Site (Sub-Clause 60.1(c))

(e) payment in foreign currencies (Clause 60 - Part II)

(Ð an advance payment (Clause 60 - Part II)

(g) adjustments to the Contract Price on account of Specified Materials(Sub-Clause 10.1 - Part II)

(h) rates of exchange (Sub-Clause 72.2 - Part II))

Yoro

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r Agreement

This Agreement made the day of 19

Between-

of

(hereinafter called "the Employer") of the one part and

of(hereinafter called "the Cont¡actor") of the other part

Whereas the Employer is desi¡ous that certain Works should be executed by the

Contractor, viz

and has accepted a Tender by the Contractor for the execution and completion of such'Works

and the remedying of any defects therein

Now this Agreement witnesseth as follows:

1. In this Agreement words and expressions shall have the same meanings as arerespectively assigned to them in the Conditions of Cont¡act hereinafter refe¡¡ed to.

2. The following documents shall be deemed to form and be read and construed as partof this Agreement, viz:

(a) The Letter of Acceptance;

(b) The said Tender;

(c) The Conditions of Conrracr (Parts I and II);

(d) The Specification;

(e) The Drawings; and

(Ð The Bill of Quantities.

3' In consideration of the payments to be made by the Employer to the Contractor ashereinafter mentioned the cont¡actor hereby covenants with the Employer to executeand complete the Works and remedy any defects therein in conformìty in all respectswith the provisions of the Contract.

4. The Employer hereby covenants to pay the Cont¡actor in consideration of theexecution and completion of the works and the remedying of defects therein theContract Price or such other sum as may become payable unde¡ the provisions of theContract at the times and in the manner prescribed by the Contract.

In Witness whereof the parties hereto have caused this Agreement to be executed theday and year first before written in accordance with their respective laws.

The Common Seal of

was hereunto affixed in the presence of:-

Signed Sealed and Delivered by rhe

saidin the presence of:

o FIDIC 1987

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Foreword

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Page 11

Page 15

Page 20

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29

30

35

38

EDITORIAL AMENDMENTS IN 1988

Following publication of the Fourth Edition in 1987 of the Conditions of Contractfor Works of Civil Engineering Construction, a number of editorial amendmentswere agreed by FIDIC. The amendments we¡e incorporated during a 1988 reprintingand the list below clarifies the differences betryeen the 1988 reprinf andthe original document.

The last sentence of the flrst paragraph previously read "The Conditions a¡eequally suitable for use on domestic contracts. "

Sub-Clause 10.1. A comma has been insefed after the word "Contract" in thesecond line.The third sentence previously read "Such security shall be in such form as may beagreed between the Employer and the Contractor."

Sub-Clause 22.1 (b) was previously one complete paragraph, ie there was nospace between the words " . . . other than the Works), " and the remainder of theSub-Clause.

Sub-Clause 31.2 (c) was previously one complete paragraph, ie there was no spacebetween the words "... nature for any such," and the remainder of theSub-Clause.

Sub-Clause M.3. The penultimate sentence was previously, "In both such casesthe Engineer shall notify the Contractor accordingly, with a copy to theEmployer. "

Sub-Clause 49.1 (a). The word "substantial" has been deleted.

Sub-Clause 60.3 (b) was previously two paragraphs, the second beginning withthe words "Provided also that if at such time . . ."

Sub-Clause 60.5. The word "The" has been inserted at the beginning of the hnalparagraph.

Sub-Clause 67 .7.In the eighth line of the third paragraph, a comma has been insertedafter the word "provided". In the second line of the fourth paragraph, the word "notice"replaces the word "notification".

Reference to Part II. In the third line, the words "and (iv)" have been inserted afterparagraph (a) (i).

Tender

Item

Agreement

Line

Line

Line

Line

Line

Last lines

3. The word "-Works" has been capitalised.

4 Inverted commas have been inserted following the words "the Employer."

6 Inverted commas have been inserted before the word "the" instead of befo¡e theword "Contractor."

I The word "Contractor" has been capitalised.

I The words "Tender by the Contractor" were previously "Tender by Contractor. "

11 The word "Agreement" has been capitalised.

The Agreement previously ended with the wo¡ds "Binding Signature of Employer"and "Binding Signature of Contractor".

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FOREWOBD

FURTHER AMENDMENTS IN 1992

The following amendments have been made to the 1988 Reprint of the Fourth Editionof the Conditions of Contract for Works of Civil Engineering Construction. Theamendments of the 1988 Reprint are shown on the previous page. In addition, somemilor changes in the use of punctuation marks (commas, semicolons, colons ardstops), as well as the use of the words "or" and "and" have been int¡oduced to attainuniformity in the style of all Clauses. These minor changes which improve the style,but which have no effect on the meaning of Clauses, have not been listed below.

The eighth paragraph previously referred to the anticipated publication of the "Guideto the Use of FIDIC Conditions of Contract for Works of Civil EngineeringConstruction".

Sub-Clause 1.1, sub-para (e). Defìnitions (iii) "Interim Payment Certificate" and (iv)"Final Payment Certificate" have been added.

Sub-Clause 8.1. Second paragraph has been added.

sub-clause 72.2.Marginal note. The word "Adverse" has been changed to read "NotForeseeablqÌ' (also amended in the Contents and the Index).

Sub-Clause 13.1. Last sentence has been shortened by deleting the words "or, subjectto the provisions of clause 2,from the Engineer's Representative.", and adding thewords "(or his delegate).".

Sub-Clause 15. I , para 1 . Last sentence has been shortened by placing a full stop afterthe word "Engineer", deleting the words " or subject to the provisions of Claus ez,theEngineer's Representative. "

Sub-Clause 21.1, sub-para (a). The words "(the term "cost" in this context shall includeprofit)" have been added.

Sub-Clause 2 l .4, sub-para (a). The word "where" has been cor¡ected to read "whether".

Sub-Clause 40.3. The word "written" has been deleted at the end of the first line.

Sub-clause 42.3.The word "wayleaves" has been changed to read "rights of way" inthe text and marginal note (also amended in the Contents and the Index).

sub-clause 60.1, sub-para (e). The words "or otherwise" have been added at the end

sub-clause 60.2.The wo¡ds "certify to the Employer" have been changed to read"deliver to the Employer an Interim Payment Certificate stating", the word "thereof'has been changed to read "of such statement" and the word "he" has been changed toread "the Engineer", sub-para (b). The words "Interim certificates" have beenchanged to read "Interim Payment Certificates".

sub-clause 60.3, sub-para (b). In the eighth line, the word "ordered" has been changedto read "instructed".

Sub-Clause 60.4. The words "interim certificate" in the first and fourth lines, and theword "certificate" in the second line, have been changed to read "Interim paymentCertificate".

Page 2

Page

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Page 10

6

7

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Page

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18

19

Page 29

Page 30 Sub-Clause 60.5.In the second line, after the word "Engineer", the words "six copiesof'have been added.

Sub-Clause 60.6. In the second line, after the word "consideration", the words "sixcopies ofl'have been added. Sub-para (b). The words "or otherwise" have been addedat the end. At the end of the sub-clause, the linal paragraph has been âdded.

Sub-Clause 60.7 and Sub-Clause 60.8 (text and marginal note). The words "FinalCertificate" have been changed to read "Final Payment Certificate" (also amended inthe Contents and the Index).

Sub-Clause 60.8 (a). The words "or otherwise" have been added. Sub-Clause 60.8 (b).The words "under the Contract other than Clause 47" have been changed to read "otherthan under Clause 47".Sub-Clause 60.10.In thefirst and fourth lines, the wo¡ds "interim certificate" have

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been changcd to read "Interinl Payrnent Certíficate". In the fiiÌh and sixth lines, thewords "Final Certificate" have been changed fo read "Final payment certificate',. Thewords "or otherwise" have been added at the end.

sub-clause 65.6. In the ninth line, the words "and to the operation of clause 6J,, havebeen changed to read "and Clause 67,,.

Sub-Clause 66. 1 . ln the second line the word "party" has been changed to read ,,or bothparties", in the third line between the words "his" and "contractual', the words ,,ortheir" have been added. In the fourth line after the word ,,then,,,

the words ,'the partiesshall be discharged from the Contract, except as fo thei¡ rights under this Clause andClause 67 and withoutprejudice to the rights ôf eitherpartyiirespect of any antecedentb¡each ofthe Cont¡act, and " have been added.

Sub-Clause 61.2. The words "arbitrafion of such dispute shall not be commencedunless an attempt has fi¡st been made by the parties to settle such dispute amicably,'have been changed to read " the pafies shalãttempt to settle such diipute amicabiybefo¡e the commencement of arbitration." The wo.ãs "whethe¡ or not any attempt atamicable settlement thereof has been made" have been changed to read ,,even if noattempt at amicable settlement thereof has been made"

sub-clause 69.1, sub-para (d). The words "unforseen reasons, due to economicdislocation" have been changed to read "unforseen economic."urorrr,,.

sub-clause 69.4.|n the second line of the second paragraph, the word,.cost,,has beenchanged to read "costs".

REFERENCE To PART II. In the third rine, the words ,,5 .1 part, have been changedto ¡ead "5.1 (part)".

TENDER

Appendix

EDITORIALAMENDMENTS

Paragraph 1. In the last line, the word "sums" has been changed to read ,,sum,,.

In the ninth line, the wo¡ds "and plant', have been added.In the twelth line, the word "Payment" has been added.In the thirteenth line, the words "per annum" have been added.

For page 35' after the wo¡ds "Sub-Clause 6J.7" thefirst sentence has been inserted.

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ffiEÐE€ FEDERATION INl ERNAT IONALE DES INGENIEURS-CONSEILS

PART II CONIDITIOI.{S OF PARTICIJLARAPPLICATIONI WITH GI]IDELINES F'OR

PREPARATION OF PART II CLAIJSES

FOURTH EDITION 1987Reprinted 19BB with editorial amendments

Reprinted 1992 with further amendments

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ICONTENTS

PART ll: GONDITIONS OF PARTICULARAPPLICATION

Introduction (including special reference to Dredging andReclamation Work)

Page

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1 Definitions2 Engineer's Duties5 Language/s and Law and Documents9 Contract Agreement

10 Performance Security11 Inspection of Site12 Not Fo¡eseeable Physical Obstructions or Conditions14 Programme and Cash Flow Estimate15 Contractor's Superintendence16 Contractor's Employees18 Boreholes and Exploratory Excavation19 Safety, Security and Protection of the Envi¡onment21 Insurance of Works and Cont¡actor's Equipment

21,23&25 Insurances Ananged by Employer

28 Royalties31 Opportunities for Other ContractorsU Labour35 Records and Reports40 Suspension43 Time for Completion45 Restriction on Working Hou¡s47 Bonuses48 Prevention from Testing49 Defects Liability50 Contractor to Search51 Variations52 Payment in Foreign Currency54 Vesting of Contractor's Equipment60 Certificates and Payments67 Settlement of Disputes68 Notices69 Default of Employer70 Changes in Cost and Legislation72 Currency Proportions73 Additional Clauses

INDEXEDITORIAL AMENDMENTS IN 1988FURTHER AMENDMENTS IN 1992

3

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901

10

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INTRODUCTION

The terms of the Fourth Edition of the Conditions of Conrracr for Wo¡ks of CivilEngineering Construction have been prepared by the Fédération Internationaledes Ingénieurs conseils (FIDIC) and are ¡ecommended for general use for thepurpose of construction of such works where tenders are invited on aninternational basis. The Conditions, subject to minor modifications, are alsosuitable for use on domestic contracls.

The ve¡sion in English of the Conditions is considered by FIDIC as the officialand authentic text for the purpose of translation.

The clauses of general appÌication have been grouped together in a separatelybound document and are referred to as part I--seneral Conditions. Thèy havêbeen printed in a form which will facilitate thei¡ inclusion, as printed, in thecontract documents normally prepared.

In the preparation of the Conditions it was recognised that while there arenumerous Clauses which will be generally applicable the¡e are some Clauseswhich must necessarily vary to take account of the circumstances and locality ofthe Works.

Part I - General Conditions and Part II - Conditions of Parricular Applicationtogether comprise the conditions governing the rights and obligationi of thepartles.

For this reason a Pa¡t II standard form has not been produced. It will benecessary to prepare a Part II document for each individual contract and theGuidelines are intended to aid in this task by giving options fo¡ various clauseswhere appropriate.

Part II clauses may arise for one or more reasons, of which the following areexamples:

(i) Where the wording in Part I specifically requires that furthe¡ information isto be included in Part II and the Conditions would not be complete withoutthat information, namely in Sub-clauses 1.1 paragraphs (a) (i)

^-a lin¡, s.t

(pa¡t), 74.7, 14.3, 68.2 and 10.1

(ii) where the wording in Pa¡t I indicates that supplementary information maybe included in Part II, but the conditions would siill be complere without anysuch information, namely in sub-clauses 2.1 paragraph (u), s.l (part),2r.1paragraph (b) md72.2.

(iii) where the type, circumstances o¡ locality of the works necessitatesadditional Clauses or Sub-Clauses.

(iv) Where the law of the country or exceptional circumstances necessitate analteration in Part I. Such alterations should be effected by stating in part IIthat a particular clause, or part of a clause, in part I is deleted anã giving thesubstitute Clause, or part, as applicable.

As far as possible, in the clauses that are mentioned hereunder, example wordingis provided. In the case of some clauses, however, only an aide-memoire for thepreparation is given. Before inco¡poratin g any example wording it must bechecked to ensure that it is wholly suitable for the particular circumstances and, ifnot, it must be va¡ied. whe¡e example wording is varied and in all cases whereadditional material is included in part II, care must be taken that no ambiguity iscreated with Part I o¡ between the Clauses in part II.

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Dredging and Reclamation Work

Special consideration must be given to Part II where dredging and certain types ofreclamation work are involved. Dredgers are considerably more expensivé thanmost items of Contractor's Equipment and the capital value of a dredger canoften exceed the value of the Contract on which it is used.

For this reason, it is in the interests of both the Employer and the Contractor that adredger is operated intensively in the most economic fashion, subject to the quality ofwork and any other over-riding factors. With this end in view, it is customaryto aliowthe Contractor to execute dredging work continuously by day and by night seven daysa week. Another difference f¡om most civil engineering is that on dredging work theContractor is not normally held responsible for the remedying of defectJafter the dateof completion as certified under Clause 48. Part II contains explanations and examplewording to cover the above points and others relating to dredgìng. Clauses lr, l2,ig,19 ,28, 40,45 ,49 ,50 and 51 are those which most often require attention in Pa¡t II whendredging work is involved and reference is included under each of these Clauses. OtherClauses may also need additions in Part II in certain circumstances. Reclamation workvaries greatly in character and each instance must be considered before decidinglvhether it is appropriate to introduce in Part II changes similar to those adopted foidredging, ot to use the standa¡d civil engineering form unaltered.

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PART II CONDITIONS OF PARTIGULAR APPLICATION

Clause 1

Sub-Clause 1.1 - Definitions i

(a) (i) The Employer is (insert name)

(a) (iv) The Engineer is (insert name)

If further definitions a¡e essential, additions shourd be made to the list.

Clause 2Sub-Clause 2.1- Engineer's Duties

EXAMPLEThe Engineer shall obtain the specific approval of the Employer beþre carryingout his duties in accordance with the foilowíng clauses of part I :(a) Clause (insert applicable number)

(b) Clause (insert applicable number)

(c) Clause (insert applicable number)

This list should be extended or reduced as necessary.

In some cases the obligation to obtain the approval of rhe Employer may apply to onlyone Sub-Clause out of seve¡al in a Clause or approval may only Ue necesìãry beyondcefain limits, monetary or otherwise. Where this is so, the example wording -uit b"varied.

If the obligation to obtain the approval of the Employer could lead to the Engineer beingunable to take action in an emergency, where matters of safety are involved, an additionalparagraph may be necessary.

EXAMPLENotwithstanding the obligation, as set out above, to obtain approval, if, in theopinion of the Engineer, an emergency occurs affecting the safeiy of tife-or of thewglk or of adjoiníng property, he may, without rerieving the coitràcø, o¡ onyof his duties and responsibilíties under the Contract, initruct the Contractor toexecute all such work or to do all such things os may, in the opinion of theEngineer, be necessary to abate or reduce the risk. The Contra1or ;hatl lorthwithcomply, despite the absence of approval of the Employer, with àny suchinstruction of the Engineer. The Engineer shall determine an addition to theContract Price, in respect of such instruction, in accordance with Clause 52 andshall notifi the Contractor accordingly, with a copy to the Employer.

Clause 5Sub-Clause 5.1 - Language/s and Law

(a)The language is (insert as applicable)

(b)The law is that inforce in (insert name of country)

Ifnecessary (a) above should be varied to read:

The languages are (insert as applicable)

and there should be added

The Ruling Language is (insert as applicabte)

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ISub-Clause 5.2 - Priority of Contract Documents

Where it is decided that an order of precedence of all documents should be included, thisSub-Clause may be va¡ied as follows:

EXAMPLEDelete the documents listed I - 6 and substitute:

(J ) the Contract Agreement (if completed);

(2 ) the Letter of Acceptance ;

(3) the Tender;

(4) the Conditions of Contract part II;(5) the Conditions of Contract part I;(6) the Specification;

(7) the Drawings; and

(B) the priced Bill of QuantiÍies

or

Where it is decided that no order of precedence of documents should be included, thisSub-Clause may be va¡ied as follows:

EXAMPLEDelete the text of the Sub-Clause and substitute:

The several documents forming lhe Contract are to be taken as mutually explonatoryof one another,but in the case of ambiguities or discrepancies the priority sia¡ be thataccorded by law. If, in the opinion of the Engineer, such ambiguiiies or âíscrepanciesmake it necessary to issue any instruction to the Contralþr in explanátion oradjustment, the Engineer shall have authority to issue such instntction'.

Clause 9Whereitis decided thata ContractAgreement shouldbeenteredinto andexecuted theformmustbe annexed to these Conditions as stated in Sub-Clause 9.1 of Pa¡t I of these Conditions.

A suitable form is annexed to Part I - General Conditions.

Clause 10

Sub-Clause 10.1 - Performance Security

Where it is decided that a performance security should be obtained by the Contractor, theform must be annexed to these Conditions as stated in Sub-Clause lO.t of pa¡t I of theseConditions.

Two example forms of performance security are given on pages 7, 8 and 9. The Clauseand wording of the example forms may have to be varied to comply with the law of theContract which may require the forms to be executed under seal.

Where there is provision in the Contract for payments to the Contractor to be made inforeign currency, sub-clause 10.1 of Part I of these conditions may be varied.

EXAMPLEAfter the f;rst sentence , insert the following sentence:

The security shall be denominated in the types and proportions of currenciesstated in the Appendix to Tender.

Where the source of the perfornance security is to be restricted, an additional Sub-Clausemay be added.

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Source of 10.4Performance

Security

or

Source of 10.4Pertormance

Securíty

.Áccess 11.2to Data

EXAMPLE SUB-CLAUSESThe performance security, submitted by the contractor in accordance withSub-Clause l0-1, shall be furnished by an institntion registered in (insert thecountry where the Works are 1o be executed) or licensed io do business in suchcoutlû'J.

where the petforntance securíty is in rhe form of a battk guarantee, it shall beissued by:

(a) a bank located in the counttl of the Entployer, or(b) a foreign bank through a correspondent bank located in the coutttry of theEmployer.

Clause 11'Where the bulk or complexity of the data, or reasons of security enfo¡ced by the countrywhere the 'Works

are to be executed, makes it impracticable for the Employer to make alldata available with the Tende¡ Documents and inspection of some data by the Contractorat an office is therefore expected, it would be advisable to make the circumstances clear.

EXAMPLE SUB-CLAUSEData made available by the Employer in accordance with Sub-Clause I LI shattbe deemed to include data listed elsewhere in the Contract as open for inspectionat (insert particulars of the office or ffices where such data ts stàrei¡

Sub-Clause 11.1 - Inspection of Site

For a Contract comprising dredging and reclamation work the Clause may be varied asfollows:

EXAMPLEIn the first paragraph, delete rhe words "hydrologícal and sub-sudace,' andsubstitute "hydrographic and sub-seabed,, .

In the second paragraph, under (a) detete the word "sub-surface" and substitute"sub-seabed" and under (b) derete the word "hydrologiîal,' and substitute"hydrographíc " .

Clause 12

sub-clause 12.2 - Not Foreseeable obstructions or conditionsFor a Contract. comprising dredging and some types of reclamation work the Sub-Clausemay require to be varied.

EXAMPLEDelete the words " , other than crimatic conditions on the site, ,'

.

Clause 14

Sub-Clause 14.l - Programme to be Submitted

The time wíthin which the prograntme shall be submirted shall be (insert number)days.

Sub-Clause 14.3 - Cash Florv Estimate to be Submitted

The time within which the detailed cash flow estimate shatt be subntitted shalt be(insert number) days.

In both examples given above it is desirable fo¡ consistency with the rest of the Conditionsthat the number of days inserted should be a multiple of sevãn.

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EXAMPLE PERFORMANCE GUARANTEE

By this guarantee We

whose registered ffic':e is at

(hereinafter called "the Contractor" ) and

whose regislered ffice is at

(ltereinafter called "the Guarantor" ) are held andfirmly bound unto

(hereínafter called "the Employer" )

the Conlraclor and the Guarantor bind themselves, their successors and assignsjointly and severally by these presents.

whereas the contractor by an Agreement made between the Employer of the onepart and the Contractor of the other parf has entered into a CoitraLt (hereinoftercalled "the said contract " ) to execute and complete certain works and remedyany defects therein as therein mentioned in conformity with the provisions of th'esaid Contract.

Now the Condilíon of the above-written Guarantee is such that if the Contractorshall duly perþrm and observe ail the terms provisions conditions andstipulations of the said contract on the conÍroctor; s part to be perþrmed andobserved according to the true purport intent and meaning th'eriof or íf ondefault by the Contractor the Guarantor shall satisfy and disiharge tie damagessustained by the Employer thereby up to the amount of the above-wriienGuarantee then this obligation shall be null and void but oiherwise shall be andremain in full force and ffict but no alteration in terms of the said Contract or inthe exlent or noÍure of the Works to be executed, comp[eted and defects thereinremedied rhereunder and no allowance of time by the'Employer o, ihe Engineerunder the soid contract nor any forbearance or forgirrr"ri in or in respect"o¡ orymatter or thing concerning the said contracÍ on the part of the Employer or th'esaid Engineer shall in any way release the Guarantoi ¡ro^-any tiability under theabove-written Guarantee. provided always that the oiow obíigation ofGuarantor to satisfy and discharge the damages sustained by the Empioyer shaitarise only

(a) on wriîten notice from both the Emptoyer and the contractor that theEmployer ond the contractor have mutually agreed rhat rhe amount of damagesconcerned is payable to the Employer or

(b) on receipt by the Guarantor of a legaily certified copy of an award issued ínarbitration proceeding carried out in conþrtnity wit'h' tie terms of the saidcontract that the amowú of the damages is payable to rhe Employer.

in the sum of for the payment of which sum

Signed on Signed on

on behalf of on behatf ofby

in the capacity of

by

ín the capacity ofin the presence of in tlte presence of

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EXAMPLE SURETY BOND FOR PERFORMANCE

Know all Men by these Presents tlnt (name and address of contractor)

as Principal (hereinafte r called "the Contractor'l ) and (name, legal title and

as surety (hereinafter called "the surety" ), are held and firmly bound unto

address of Surety)

(name and address of Employer)

i:,i:l'::""Í'i:;::;f :î;'i:f,and truly to be made, the contractor anã the sireîy bind themselves, theirsuccessors and assigns, jointly and severally,firmly by thbse presents.

Whereas the Contractor has entered inlo o written conlract agreement with theEmployer dated the day of lg_for(name ofWorks)in accordance with the plansextent herein provided for, arereferred to as the Contract.

and specijìcations and amendments thereto, to theby reference made part hereof and are hereinafter

Now, thereþre, the condition of this obtigation is such that, if the conrractorshall promptly and faithfutty perform-the said contrait (including anyamendments thereto) then thís obligation shall be null and void; otherwise it shattremain infull force and effect.

Whenever Contractor shall be, and decl underthe Contract, the Employer havin ailonsthereunder, the Surety may promptly r(I ) complete Íhe contract in accordance with its rerms and conditions; or(2) Obtain a bid or bids for submissiContract in accordance with its terms anEmployer and Surety of the lowestbetween such bidder and Employer athough there should be a defautt or a succession of defaults under the contract or

Employer to Contractor; or

(3) Pay the Employer the amount required by Employer to contplete the contractin accordance with its terms and. cond.itions ony' amount ip to a total notexceeding the amount of this Bond.

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The surety shall not be liable for a greater sum than the specified penalty of thisBond.

Any snit under this Bond must be instituted before the issue of the DefectsLiabilíty Certificare.

No right of action shall accrue on this Bond to or for the use of any person orcorporalion other than the Employer named herein or the heirs, executors,administrators or successors of the Employer.

Signed on Signed on

on behalf of on behalf ofÀvby

in the capacity

in the presence

in the capacíty

in the presence

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Language Ability 15.2of Contractor'sRepresentatíve

ot

lnterpreterto be 15.2Made Available

Language Abilíty 16.3of Superintending

Staff

elause 15

Where the language in which the Contract documents have been drawn up is not thelanguage of the country in which the Works are to be executed, or where for any otherreason it is necessary to stipulate that the Contractor's authorised representative shall befluent in a particular language, an additional Sub-Clause may be added.

EXAMPLE SUB_CLAUSESThe Contractor's authorised representative shall be fluent in (insert name oflanguage).

If the Contractor's authorised representative ís not, in the opinion of theEngineer, fluent in (insert name of language), the contractor shall have availableon Site at all tintes a competenl inlerpreter to ensure the proper transmission o¡finsÍ r u c I i o ns a nd i nþrmat ion.

Clause 16'Where the language in which the Contract documents have been drawn up is not thelanguage of the country in which the V/orks are to be executed, or where for any otherreason it is necessary to stipulate that members of the Contractor's superintending staffshall be fluent in a paficular language, an additional Sub-Clause may be added.

EXAMPLE SUB-CLAUSEA reasonable proportion of the Contractor's superintending staff shall have aworking knowledge of (insert name of language) or the Contractor shall haveavailable on Site at all times a sfficient number of competent interpreters toensure the proper transmission of instructions and information.

Employment of 16.4Local Personnel

Where there is a desire, but not a legal requirement, that the Contractor makes reasonableuse of mate¡ials from or persons resident in the country in which the Works are to beexecuted, an additional Sub-Clause may be added.

EXAMPLE SUB-CLAUSEThe contractor is encouraged, to the extent practicable and reasonable, toemploy staff and labour from sources within (insert name of country).

Clause 1B

Sub-Clause 18.1- Boreholes and Exploratory Excavation

Fo¡ a Contract comprising dredging and reclamation work the Sub-Clause may require tobe varied.

EXAMPLEAdd second sentence as follows:

Such exploraîory excavation shall be deemed to include dredging.

Glause 19

Sub-Clause 19.1 - Safet¡', Security and Protection of the Environment

Where a Contract includes dredging the possibility of pollution should be given particularattention and additional wording may be required. For example, where fishing andrecreation areas might be influenced, the Contractor should be required to plan andexecute the dredging so that the effect is kept to a minimum. Where there is a risk ofchemical pollution from soluble sediments in the dredging area, for instance in a ha¡bour,it is important that sufficient information is provided with the Tender documents-Responsibilities should be clearly defined.

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sub-clause 27.7 - rnsurance of works ånd contractor's Equipment

lhere there is provision in the Confract for payments to the Contractor to be made inforeign cunency, fhis Sub-Clause may be varied.

EXAMPLEAdd final sentence as follows :

The insurance in paragraphs (a) and (b) shall provide for compensatiott to bepayable in the types and proportions of currenciàs requiied to rictify the loss ordamage incurred.

Where it is decided to state the cleductible limits for the Employer's Risks, thisSub-Clause may be varied.

EXAMPLEAdd to paragraph (a) as follows:and with deductible limits for the Emptoyer's Risks not exceeding (insertamounls)

Clause 21

EXAMPLE

Clause 21

Delete rlte text of the Clause and substitute the fottowing re-numberedSub-Clauses:

clauses 21,23 and 2S.lnsurances Arranged by EmployerIn certaín circumstances, such as where a number of separate contractors are employedon a single project, or phased take-over is involved, it may be preferable for the Emiloyerto arrange insurance of the Works, and Third Party insúrance. In such case, it must beclea¡ in the Contract that the Contractor is not preðluded from taking out any additionalinsurance, should he desi¡e to do so, over and above that to be arrangãa uy tné Employer.Tenderers must be provided at the Tender stage with details of the insurance to bearranged by the Employer, in order to assess what provision to make in their ¡ates andprices for any additional insurance, and for the amount of policy deductibles which theywill be required to bear. Such details shall form part ôr *," Contract berween theEmployer and the Contractor.

Example wording to allow for the arrangement of insurance by the Employer is asfollows:

lnsurance 21.1of Works

lnsurance of 21.2Contractor's

Equipment

Without limiting his or the Contractor's obligations and responsibilities underClause 20, the Employer will insure;

(a) the Works, together wiÍh ntaterials and Plant for incorporation tlterein, to thefull replacement cost (the term "cost" in this context shalt iictude profit), and(b) an additional sum to cover any addÌtional costs of and incidental to therectificatiort of loss or damage inctuding professional fees and the cost ofdemolishing and rentovit'tg any part of ttte works ana å¡ removing debris ofwhatsoever nature.

The Contractor shall, without limiting his obtigations and responsibilities underclause 20, insure the c-onrractor's Equipment ànd other things brought onto thesite by the contractor,for a sum sfficient to provide for theií reptacáment at theSite.

The insurance in sub-clause 2I.l shall be in the joint no.mes of the contractorand the En'Lployer and shall coyer:

0

Scope of Cover 2l.S

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ßesponsib ility for 21.4Amounts not

Recovered

(a) the Employer and the contt'actor against loss or dannge as provided in thedetails of insurance annexed to these Conditions, fi'om the start of work at theSite ttntil the date of issue of the relevant Taking-Over Certificate ín respect of theWorks or any Section or part thereof as the case may be, and

(b) the Contractor for his liability:(i) during the Defects Liability Periodfor loss,or damage arising fronl a causeoccurring pt ior to rhe commencement of the'Defects Liability period, or

(ii) occasiorted by lhe Contractor in the course of any operations carried out byhim for the purpose of complying with his obligations under Clauses 49 and 50.

Any amounts not insured or not recovered from the insurers shall be borne by theEmployer or the Contractor in accordance with their responsíbilities underClause 20.

Clause 23

Third Party 23.1lnsurance(including

Employer'sProperty)

Delete the text of the Clause and substitute:

Without limíting his or the Contractor's obligations and responsíbilities underClause 22, the Employer will insure in the joint names of the Contractor and theEmployer, against liabilities for death of or injury to any person (other than asprovided in Clause 24) or loss of or damage to any property other than theWorks) arising out of the performance of the Contract, as provided in the detailsof insurance referred to in Sub-Clause 2l .3.

Evidence 25.1and Terms of

lnsurances

Adequacy of 25.2Insurances

Remedy on 25.3Employer's

Failure to lnsure

Compliance with 25.4Policy Conditions

Clause 25

Delete the text of the Clause and substitute:

The insurance policies îo be arranged by the Employer pursuant to Clauses 2l and23 shall be consistent with the general terms described in the Tender and copies ofsuch policies shall when required be supplied by the Employer to the Con[ractor-

The Employer shall noüfy the insurers of changes in the nature, extent orprogramme for execution of the works and ensure the adequacy of theinsurances at all times in accordance with the terms of the Contract and shall,when required, produce to the Contractor the insurance policies in force and thereceipts for payment of the premiums. No variations shall be made to theinsurances by the Employer without the prior approval of the Contractor.

If and so far as the Employer fails to ffict and keep in force any of the insurancesreferred to in sub-clause 25.1, then the contractor may ffict and keep in forceany such insurance and pay any premium as may be necessary for thàt purposeand add the amount so paid to any monies due or to become due to theContractor, or recoyer the same as a debt due fi-om the Employer.

In lhe event that the Contractor or the Employer faits to comply with conditionsimposed by the insurance policies effected pursuant to the Contt-act, each shallindemnify the other against all losses and claints arising from such faílure.

Clause 28

Sub-Clause 28.2 - Royalties

For a Contract comprising dredging and reclamation work and for any other Contractinvolving the dumping of materials the Sub-Clause may require to be varied.

EXAMPLEAdd second sentence asfollou,s:

The Contractor shall also be liable for all paynrents or conlpensatiott, ,f ary,let,ied in relation to the dumping of part or all of any such materials.

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rIt is sometimes the case on dredging contracts for the Employer to bear the costs oftonnage and othe¡ royalties, rent and other payments òr compensation. lf suchconditions are to apply, Sub-Clause 28.2 should bé va¡ied either by uaalng wording or bydeleting the existing wording and substituting new wording.

Clause 31

Where the particular requirements of other contractors are known within reasonablelimits at the time of preparation of the Contract documents, details must be stated. TheSpecification is usually the appropriate place to do so but, exceptionally, some referencemay be desirable in the Conditions. In that case, an additional Sub-Clauie o¡ Sub-Clausescould be added to rhis Clause.

Æafes of Wagesand Conditions

of Labour

Employment ofPersons in the

Service of Others

Repatriation of A.Labour

Housing for Labour 34.

Accident Prevention A.Officer; Accidents

Clause 34It will generally be necessary to add a number of Sub-Clauses, to take account of thecircumstances and locality of the Works, covering such matters as: permits andregistration of expatriate employees; repatriation to pìa"" of ¡ecruitment; þrovision oflempgrary housing for employees; requirements in respect of accommodation for staff ofEmployer and Engineer; standards of accommodation to be provided; provision ofaccess roads, hospital, school, power, water, drainage, fire services, ¡efuse collection,communal buildings, shops, telephones; hours and conditions of woriing; rates of pay;compliance with labour legislation; maintenance of records of safety and health. !

EXAMPLE SUB-CLAUSES ( to be numbered, as appropriate)34- The Contract.or shall pay rales of wages and observi cånditions of labour not less

favourable than those established for the trade or industry .hrry the work iscarried out- In the absence of any rates of wages o, ,oiditio,ts of labour soestablished, the Contractor shall pay rates of wâges and observe conditions oflabour which are not less favourable thai the general level of wages and.conditions observed by other employers whose genelat circumstancis in ihe trad.eor industry in which Íhe Contractor is engaged ire similar.

U. The Contractor shall not recruit or attempt to recruít his staff and labour fromamongst persons in the servíce of the Emptoyer or rhe Engineer.

The Contractor shall .be responsible for the return to the place where they wererecruited or to their domicile of alt such persons as he reciuited and employedforthe purposes of or in connection with the Contract and shall maíitain sichpersons as are to be so returned in a suitable manner until they shall have left theSíte or, in the case of persons who are not nationals of and iave been recruitedoutside (insert name of country), shall have left (insert name of country).

Save insofar as the Contract otherwise provides, the Contractor shall provide andmaintain such accommodation and amenitíes as he may consider neceisary for allhis staff and labour, employed for the purposes of or in connection with thecontract, including all fencing, water supply (both for drinking and otherpurposes), electricity supply, sanitation, cookhousàs, fire prevention andfire-fighting equipme.nt, air condítioning, cookers, refrigiratoís, furniture andother requirements in connection with such accommodátion or antenities. Oncompletion of the contract, unless otherwise agreed with the Employer, thetemporary campslhousíttg provided by the Contractor shatt be removed and the' site reinstated to its original condition, all to the approval of the Engineer.

The controctor shall .have on his staff at the site an fficer deating only with

questions regarding the..safety and protection against aõcidents o¡ ãtt sta¡ ana

labour. Thìs officer shall be qualified for this woik and shall have ine autnoí1ry toissue instructíons and shall take protective measures to prevent accidents.

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Health and Safety 34.

Measures against 34.lnsect and Pest

Nuisance

Epidemics 34.

Burial of the Dead 34.

Supply of 34,Foodstuffs

Supply of Water 34.

Alcoholic Liquor U.or Drugs

Arms and 34.Ammunition

Festivals and 34.Religious Cusfoms

Disorderly Conduct 34.

Due precautions shall be taken by the ContracÍor, and at hÌs own cost, to ensurethe safety of his staff and labour and, in collaboration with and to therequírements of the local health authorities, to ensure that medÌcat staffftrst aidequipntenl and stores, sick bay and suitable antbulance service are available at thecamps, housing and on the Site at all times tlroughout the period of the Contractand that suitable arrangements are made for the-preventioi of epidemics and forall necessary welfare and hygiene requirentents,

The Contractor shall at all times take the necessaty precautiorts to protect all stoffand labour employed on the site from insect nuisance, rets and àther pests aiâreduce the dangers to health and the general nuisance occasioned by'the same.The Contractor shall provìde his stafr and labour with suitable prophylactics forthe prevention of malaria and Íake steps to prevent the formàtion of stagiantpools of water. He shall comply with att the regularíois of the ticat ieatthauthorities in the,çe respects and shall in particular arrange to spray thoroughlywith approved insecticide all buíldings erected on the Site. Such treatment shall becarried out at least once o year or as instructed by rhe Engineer. The Contractorshall warn his staff and labour of the dangers of bilharz¡a aid wild animals.

In the event of any outbreak of illness of an epidemic nature, t'he Contractor shallcomply with and carry out such regulations, orders and requirements as may bemade by the Government, or the locar medical or sanitary authorities, foí thepurpose of dealing wíth and overcoming the same.

The Contractor shall make all necessary arrangements for the transport, to anyplace as required for burial, of any of his expatriarc àmployees or'members oftheÌr families who may die in (insert name of country). Tie Contractor shall alsobe responsible, to the extent required by the local'regulations,for making anyarrangements with re.gard to burial of any of his local employees who mãy diewhile engaged upon the Works.

The contractor shall orrange for the provision of a sufficient supply of suitablefood at reasonable prices for alt his staff, labour-ând subconíractors, forthe purposes of or in connection with the Contract.

The contracîor shall, so far as is reasonably practicable, having regard to localconditions, provide on the site an adequa[e supply of drinkíng and other waterfor the use of his staff and labour.

The Contractor shall not, otherwise than in accordance with the Statutes,ordinances and Government Regulations or orders for the time being in force:,import, sell, give, barter or otherwise dispose of any àtcohotic liquor ol drigr, o,p_ermit or suffer any such importation, sare, gift, barter or disposal iy hisSubcontractors, agents, staff or labour.

The contractor shall not give, barter or otherwise dispose of to any person orpersons, anJ arms or ammunition of any kind or permit or suffer the some asaforesaíd.

The Contractor shall in all dealings with his staff and labour have due regard. toall recognised festivals , days of rest and rerigious or other customs.

The Contractor shall at all times take all reasonable precautions to prevent anyunlawful, riotous or disorderly conduct by or amongit his staff and labour andfor the preservation of peace and protection of plrrorc oid proprrty in theneighbourhood of the Works against the same.

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Records of Safetyand Health

Reportíng ofAccidents

Clause 35

Additional Sub-Clauses may be desi¡able to cover circumstances which require themaintenance of particular records or the provision of certain specific reports.

EXAMPLE SUB-CLAUSES (ro be numbered, as appropriare)35- The Conlractor shall mainrain such records and maie such reports concerning

safety, health and welfare of persons and damage to proper\) as the Engineerntay ft'om time to time prescribe.

35. The Contractor shall report to the Engineer details of any accident as soon aspossible after its occurrence. In the case of any fatality or serious accident, theContractor shall, ín addition, notily the Engineer imntediately by the quickestavailable means-

Clause 40

For a Contract comprising dredging and some types of reclamation work the Clause maybe varied.

Sub-Clause 40.1- Suspension of Work

EXAMPLEDelete paragraph (c) and renumber paragraph (d) as (c).

Sub-Clause 40.3 - Suspension Lasting more than 84 Days

EXAMPLEIn the first sentence delete rhe words " , (c) or (d)" and subsritute "or (c),' .

Clause 43

Sub-Clause 43.1- Time for Completion

Where completion is stated to be by a date and not within a period of time, theSub-Clause will require to be varied.

EXAMPLEDelete the words, "within the time... such extended time" and substitute "by thedate or dates stated in the Appendix to Tender for the whole of the Works or theSection (as the case may be) or such later date or dates', .

Clause 45

For a Contract located in an isolated alea, where environmental restrictions do not apply,or where a Contract comprises work, such as dredging and reclamation, that -uy t"quii"continuous working, the Clause may be varied.

EXAMPLEDelete Sub-Clause 45.1 and substitute:

Working Hours 45'1 Subject to any provision 1o the contrary contained in the Contract, theContractor shall have the option ro work continuously by day and by nighr andon locally recognised days of rest.

The Contractor's option may be further extended by substituting, in place of the lastth¡ee words:

holidays or days of rest.

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Clause 47where it is desired to make provision for the payment of a bonus o¡ bonuses for earlycompletion, an additional Sub-Clause may be added.

In the case where a bonus is provided for early completion of the whole of the Works:EXAMPLE SUB-CLAUSE

Bonus for 47.3Completion

the Works prior to the time prescribede Contractor a sum of (insert figure) for

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time prescribed ín Clause 43.

Prevention 48.5from Testing

or

In the case where bonuses are provided for early completion of Sections of the Works anddetails, other than the dates, are given in the spe¿ificatiòn:

Bonus ror 47-3 F;,töit:::;:rtåt:" the dates siven in the Appendix toCompletion Tender in order'that such ccupied and used by the Employer inadvance of the completion Works.

Details of the work required to be executed to entitle the Conîractor to bonuspayments and the amount of the bonuses are stated in the specification.

Issue of certiflcates by the Engineer that the sections were satisfactory andcomplete by the dates-given on the certificates shall, subject ro clause 60, entitlethe contractor to the bonus poy^rrt, calcutated i"n accordance with theSpecification.

Clause 48Where it can be fo¡eseen that, when the whole of the Works have been substantiallycompleted, the contractor may be prevented-by-reasons beyonà his control rro-

"urryingout the Tests on completion, an additional Sub-ôlause.nuy ú" added.

EXAMPLE SUB-CLAUSEIf the Contractor is prevented from ca the Tests by acause for which the Employer or the other con d bythe Employer are responsible, the Emp be deeme oyerthe Works on the date when the Tests'o wbut for such prevention. The Engine aaccordingly. Provided always that the ottaken over if they are not substunriaily in accordance with the contract.If the works are taken over under this sub-ctause the contractor shailnevertheless carry out the Tests on completion during the

-Defects Liabitity

Period. The Engineer shall require the Tests to be carrie"d out by giving I4 daysnotrce.

Any addítional costs to whìch îhe contractor may be put, in making the Tests onC^ompletiort duríng the Defects Liabilíty Period, shatt be added to the CortractPrice.

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Clause 49

For a Contract which includes a high proportion of Plant, an additional Sub-Clause maybe necessary.

EXAMPLE SUB-CLAUSEThe provisions of this Clause shall apply to all replacements or renewals of ptantcarried out by rhe contractor to remedy defects and damage as if thereplacements and renewals had been taken over orL the date they were contpleted.The Defects Liability Periodfor the Works shalt be extended by a period equat tothe period during which the works cannot be used by reason of a defect ordamage. If only part of the Works ìs affected the Defects Liabitity Period sholÌ beextended only for that part. In neither case shall the Defects Liabitity Periodexlend beyond 2 years from the date of taking over.

when progt'ess in respect of Plant has been suspended under clause 40, thecontractor's obligations under this clause shall not apply to any defectsoccurring more than 3 years after the Time for Completion establíshed on thedate of the Letter of Acceptance-

For a Contract comprising dredging work an additional Sub-Clause may be added.

EXAMPLE SUB-CLAUSENo Remedying 49.5 Notwithstanding Sub-Cla shall have no responsibitity forof Defects in the remedying of defects, tts in respect of dredging ,brtDredging Work after the date stated in the

after Completíon

Glause 50

For a ConÍact comprising dredging work and where the second Example Sub-Clause49.5 has been adopted, an additional Sub-Clause should be added.

Extension of 49.5Defects Liability

No Besponsibility 5O.2for Cost of

Searching ofDredging Work

EXAMPLE SUB-CLAUSENowithstanding Sub-Clause 50.1, the Contractor shall have no responsibility tobear the cost of searching for any defect, shrinkage or other fault in ,"tprrt o¡dredging work after the date stated in the Taking-Over Certificate.

Clause 51

Sub-Clause 51.1 - Variations

For a Contract comprising dredging and some types of reclamation work the Sub-Clausemay require to be varied.

EXAMPLEAddfinal sentence as follows:

Provided also that the Contractor shall be under no obligation to execute an)tvariation which cannol be executed by the Contractor's Equipment being used orto be used on the Works.

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Clause 52Where provision is made in the Contract for payment in foreign curency, this Clausemay be varied.

Sub-Clause 52.1- Valuation of Variations

EXAMPLEAdd final sentence as follows :

The agreement, frxing or deternination of any rates or prices as aforesaid shallinclude any foreign currency and the proportion thereof.

Sub-Clause 52.2 -Power of Engineer to Fix Rates

Add to flrst paragraphfinal sentence as follows:The agreement or fixing of any rates or prices as aþresaid shall include anyforeign currency and tlrc proportion thereof.

Sub-Clause 52.3 - Variations Exceeding 15 per cent

Addfinal sentence as follows:The adjustment or fixing of any sum as aforesaid shall have due regard to anyforeign currency included in the Effectíve Contract Price and the proportionthereof.

\ühere it is required to place some limitation on the range of items fo¡ which the rates andprices may be subject to review, the Clause may be varied.

Sub-Clause 52.2 - Poryer of Engineer to Fix Rates

EXAMPLEAt the end of the first paragraph add:

Provided further that no change ín the rate or price for any item contained in theContract shall be considered unless such item accounts for an anxounl more than2 per cent of the Contract Price, and the actual quantity of work executed underthe item exceeds or falls short of the quantity set out in the Bilt of Quantíties bymore than25 per cent.

Clause 54Where vesting of Contractor's Equipment, Temporary Works and mate¡ials in theEmployer is required, additional Sub-Clauses may be added.

EXAMPLE WORDING AND SUB-CLAUSESSub-Clauses 54.2 and 54.3 shall be renumbered as 54.3 and 54.4 and Sub-Clauses54.4 to 54'8 shall be renumbered as 54.6 to 54.10. Add addítional Sub-Clauses asfollows:

Vesting 54.2 All Contractor's Equipntent, Temporary Works and materials owned by theContractor, or by any company in which the Contractor has a controltinginterest, shall, when on the Site, be deemed to be the property of the Employel.Provided always that the vesting of such property in the Emptoyer shall notprejudice the right of the Contractor to the sole use of the said- Contractor'sEquipment, TemporarT Works and materials for the purpose of the Works norshall ìt affect the Contractor's responsibility to operate and m-aintain the sameunder the provisíons of the Contract.

Revesting and 54.5Removal

upon the removal, wíth the consent of the Engineer under sub-clauses 54.1, ofany such Contractor's Equipment, Temporary Works or materials as have beendeemed to have become the property of the Employer under sub-clause 54.2, theproperty therein shall be deemed to revest in the contractor and, uponcompletíon of the works, the property in the rentainder of such Contracior'sEquipment, Tentporary works and materials shail, subject to clause 63, bedeented to revest in the Contractor.

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i'

Currencyof Accountand Rates

of Exchange

Payments toContractor

Payments toEmployer

Currency ofAccount

and Payments

Clause 60Additional Sub-Clauses may be necessary fo cover certain other matters relating topayments.

Where payments a¡e to be made in various cur¡encies in predetermined proportions andcalculated at fixed rates of exchange the following 3 Sub-Clauses, which should be takentogether, may be added:

60. umbered, as appropriate)

currency) and for theof currency) and orherin accordance with the

Table of Exchange Rates in the Appendix to Tender. Conversion between thecurrencies stated than the (insert natne of currency) shail bemade at rates of d by use of the retaivL raks oj exchangebetween such curr t name of citrrency) set out therein.

60. All payments to the contractor by the Emproyer shail be made :(a) in the case of payment(s) under Sub-Clause(s) 70.2 and (insert number of anyother applicable Clause), ín (insert name of currencylies);(b) in the case of payments for certain provisional sum ítems excluded from theAppendix to Tender, in the currencies ànd proportions appticabte to these itemsat \he time whe.n

.the Engineer gives instrictions for the work covered by these

items to be carried out; and

(c) in any other case, including Increase or Decrease of Cosrs under Sub-Clause70.1, in the curr,encies and proportions srated in thå Appendix ro Tender asapplicable to such_payment provided that the proportions'if currencies stated inthe Appendíx to Tender may from rime to tinte upon the apprication of eitherparty be varied as may be agreed.

60. All payments to the Employer by the contractor including paymenrs made byway of deduction or set-off shall be made :

(a) in the case of credit(s) under sub-clause(s) 70.2 and (insert nuntber of anyother applicable Clause) in (insert name of currencylies);(b) in the case of liquidated damages under Clause 47, in (insert name ofcurrencyl ies );(c) in the case of reimbursement of any sum previousry expended by theEmployer, in the currency in which the sum was expended by t-he nmpbyer; aíd(d) in any other case, in such currency as may be agreed.

If the part payable in a particular currency of any sum payable to the Contractoris wholly or partly insfficient to sadue to the Employer in that currenSub-Clause, then the Employer mset-off wholly or partly as the casein other currencies.

Where all payments are to be made in one cunency the following Sub-Clause may be added:

60. ,

-bered' as aPProPriate)

Appendix to Tender.

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where place of paymenf is to be defined the following sub-clause may be added:

EXAMPLE SUB-CLAUSE (to be numbered, as appropriate)Place of Payment 60. Payntents to the contractor by rhe Employer shall be made into a bank account

nontinated by the Contractor in the country of the currency of payment. Wherepaynlent is to be made in more lhan one currency separate bank accounts shall benominated by the Conlractor in lhe country of each curi ency and payments shallbe made by the Employer accordingly.

Where provision is to be included for an advance payment the following Sub-Clause maybe added:

EAdvance Payment 00. ce þth ofcea

terms approv.ed ll the Emproyer for the fuil varue of the advance payment, becertified by the Engineer for payment to the Contractor. Such Guaraióe shatt beprogressively reduced by the amount repaid by the Contractor as indicated inInterim Payment Certifícates of the Engineer issied in accordance with this Clause.The advance payment shallrepaid by way of reductioncerrifrcate issued after theother irems in the Bill of(insert figure) per cent ofof the reduction in each Intthe difference between the tthe Bill of Quantities (excin such Interim Payment CPayment Certificate until thupon the issue of a Takíng-happening of any of the evClauses 65' 66 or 69,.the whole of the balance îhen outsrand.ing sln¡ imntediatelybecome due and payable by the Contractor to the Employer.

Clause 67

Sub-Clauses 67.3 provisions with respect to theon and the language of arbit¡ation, the following

EXAMPLE

The arbitral tribunal shall consist of ...... (a sole or three) arbitrator(s).

The place of arbitration shall be ......(city and country).

The language of the arbitration shall be.......

It is.desi¡able that the place of arbit¡ation be situated in a state, other than that of the Employeror the Contractor, which has a modern and liberal arbit¡ation law and which has ratified abilateral or multilate¡al convention (such as the 1958 New York convention on the Recojnitionand Enforcement of Foreign Arbitral Awards), or both, that would facilitate the enforãementof an arbitral awa¡d in the states of the parties to the Contract.

In the absence of stipulations as to the three abovementioned matters, (number of arbitrators,place of arbitration and language of arbitration), theICC will decide on thenumbe¡of arbitrators(typically three in any substantial construction dispute) and on the place of arbitration. Thearbitral tribunal will decide on the language of the ãrbiiration if the f,arties cannor agree.

It may alsarbitration'While

rhiscase-by-caintemational use has yet been developed.

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Where it is decided that a settlement of dispute procedure, other than that of theIntemational Chamber of Commerce (ICC), shoulã be uied the Clause may be varied.Sub-CIause 67.3 - Arbitration

EXAMPLEFollowing paragraph (b), delete the words "shall be finalty seîrled... InternationolChamber of Commerce" and substitute "shall be fiiatly settled under rheUNCITRAL Arbinaion Rules as administered by (ins:ert name of adminisîeringauthority)" .

'Where altematives to the ICC a¡e considered care should be taken to establish that thefavoured altematíve is appropriate for the circumstances of the Contract and that thewording of Clause 67 is checked and amended as may be necessary to avoid anyambiguity with the alternative. Ca¡e should be taken to define exactly how thé a¡bitral tribunalis to be appointed and, where appropriate, an appointing authority should be designateã.

Clause 68

Sub-Clause 68,2 - Notice to Employer and Engineer

For the purposes ofthis sub-clause the respective addresses are(a) The Employer (insert address)

(b) The Engineer (insert address)

The addresses should be inserted when the documents are being prepared prior to invitingtenders.

Clause 69

Sub-Clause 69.1 -Default of Employer

lhere the Employer is a govemment it may be considered appropriate to vary theSub-Clause.

EXAMPLEDelete paragraph (c) and renumber paragraph (d) as (c).

Where the terms of the Sub-Clause, when read in conjunction with Sub-Clause 69.3, arein conflict with rhe law of the country the sub-claur" -äy require to be varied.

EXAMPLEDelete " or" at the end of paragraph (c) and delete paragraph (d).

Ciause 70

Three alternative methods of dealing with price adjustment are given below.The first alternative is suitabie where a confact is of short duration and no priceadjustment is to be made:

Sub-Clause 70.l-Increase or Decrease in Cost

EXAMPLEDelete the texî of the Sub-Clause and substitute

Sabiect to Sub-Clause 70.2, the Contract Price shall not be subject to any' adjustment in respect of rise or fall in the cost of labour, materials or any othermatters affecting the cost of execution of the Contiact.

Sub-Clause 70.2-Subsequent Legislation

EXAMPLEDelete the words ", other than under Sub_Clause 70.1 ,,, .

The second alternative is suitable rvhere price adjustment is to be made by establishing thedifference in cost between the basic price and the current price of local labour andspecified materials:

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