Section IV. General Conditions of Contract




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Section IV.

General Conditions of Contract




TABLE OF CONTENTS

1.Definitions 4

.1.1.Interpretation 6

.1.4.Governing Language and Law 6

.1.7.Communications 6

.1.8.Possession of Site 7

.1.13.The Contractor’s Obligations 7

.1.24.Performance Security 8

.1.32.Subcontracting 9

.1.36.Liquidated Damages 9

.1.39.Site Investigation Reports 10

.1.40.The Procuring Entity, Licenses and Permits 10

.1.41.Contractor’s Risk and Warranty Security 10

.1.50.Liability of the Contractor 12

.1.51.Procuring Entity’s Risk 12

.1.53.Insurance 13

.1.60.Termination for Default of Contractor 14

.1.66.Termination for Default of Procuring Entity 15

.1.68.Termination for Other Causes 15

.1.75.Procedures for Termination of Contracts 17

.1.78.Force Majeure, Release From Performance 19

.1.84.Resolution of Disputes 20

.1.88.Suspension of Loan, Credit, Grant, or Appropriation 20

.1.89.Procuring Entity’s Representative’s Decisions 21

.1.92.Approval of Drawings and Temporary Works by the Procuring Entity’s Representative 21

.1.97.Acceleration and Delays Ordered by the Procuring Entity’s Representative 21

.1.100.Extension of the Intended Completion Date 21

.1.103.Right to Vary 22

.1.106.Contractors Right to Claim 22

.1.107.Dayworks 22

.1.111.Early Warning 22

.1.114.Program of Work 23

.1.121.Management Conferences 23

.1.124.Bill of Quantities 24

.1.129.Instructions, Inspections and Audits 24

.1.133.Identifying Defects 24

.1.134.Cost of Repairs 25

.1.135.Correction of Defects 25

.1.140.Uncorrected Defects 25

.1.143.Advance Payment 25

.1.149.Progress Payments 26

.1.155.Payment Certificates 27

.1.160.Retention 27

.1.165.Variation Orders 28

.1.171.Contract Completion 29

.1.172.Suspension of Work 29

.1.176.Payment on Termination 30

.1.181.Extension of Contract Time 31

.1.187.Price Adjustment 32

.1.188.Completion 32

.1.189.Taking Over 32

.1.190.Operating and Maintenance Manuals 32



    1. Definitions

        For purposes of this Clause, boldface type is used to identify defined terms.


      1. The Arbiter is the person appointed jointly by the Procuring Entity and the Contractor to resolve disputes in the first instance, as provided for in GCC Clause .

      2. Bill of Quantities refers to a list of the specific items of the Work and their corresponding unit prices, lump sums, and/or provisional sums.

      3. The Completion Date is the date of completion of the Works as certified by the Procuring Entity’s Representative, in accordance with GCC Clause .

      4. The Contract is the contract between the Procuring Entity and the Contractor to execute, complete, and maintain the Works.

      5. The Contract Price is the price stated in the Letter of Acceptance and thereafter to be paid by the Procuring Entity to the Contractor for the execution of the Works in accordance with this Contract.

      6. Contract Time Extension is the allowable period for the Contractor to complete the Works in addition to the original Completion Date stated in this Contract.

      7. The Contractor is the juridical entity whose proposal has been accepted by the Procuring Entity and to whom the Contract to execute the Work was awarded.

      8. The Contractor’s Bid is the signed offer or proposal submitted by the Contractor to the Procuring Entity in response to the Bidding Documents.

      9. Days are calendar days; months are calendar months.

      10. Dayworks are varied work inputs subject to payment on a time basis for the Contractor’s employees and Equipment, in addition to payments for associated Materials and Plant.

      11. A Defect is any part of the Works not completed in accordance with the Contract.

      12. The Defects Liability Certificate is the certificate issued by Procuring Entity’s Representative upon correction of defects by the Contractor.

      13. The Defects Liability Period is the one year period between project completion and final acceptance within which the Contractor assumes the responsibility to undertake the repair of any damage to the Works at his own expense.

      14. Drawings are graphical presentations of the Works. They include all supplementary details, shop drawings, calculations, and other information provided or approved for the execution of this Contract.

      15. Equipment refers to all facilities, supplies, appliances, materials or things required for the execution and completion of the Work provided by the Contractor and which shall not form or are not intended to form part of the Permanent Works.

      16. The Intended Completion Date refers to the date specified in the SCC when the Contractor is expected to have completed the Works. The Intended Completion Date may be revised only by the Procuring Entity’s Representative by issuing an extension of time or an acceleration order.

      17. Materials are all supplies, including consumables, used by the Contractor for incorporation in the Works.

      18. The Notice to Proceed is a written notice issued by the Procuring Entity or the Procuring Entity’s Representative to the Contractor requiring the latter to begin the commencement of the work not later than a specified or determinable date.

      19. Permanent Works all permanent structures and all other project features and facilities required to be constructed and completed in accordance with this Contract which shall be delivered to the Procuring Entity and which shall remain at the Site after the removal of all Temporary Works.

      20. Plant refers to the machinery, apparatus, and the like intended to form an integral part of the Permanent Works.

      21. The Procuring Entity is the party who employs the Contractor to carry out the Works stated in the SCC.

      22. The Procuring Entity’s Representative refers to the Head of the Procuring Entity or his duly authorized representative, identified in the SCC, who shall be responsible for supervising the execution of the Works and administering this Contract.

      23. The Site is the place provided by the Procuring Entity where the Works shall be executed and any other place or places which may be designated in the SCC, or notified to the Contractor by the Procuring Entity’s Representative as forming part of the Site.

      24. Site Investigation Reports are those that were included in the Bidding Documents and are factual and interpretative reports about the surface and subsurface conditions at the Site.

      25. Slippage is a delay in work execution occurring when actual accomplishment falls below the target as measured by the difference between the scheduled and actual accomplishment of the Work by the Contractor as established from the work schedule. This is actually described as a percentage of the whole Works.

      26. Specifications means the description of Works to be done and the qualities of materials to be used, the equipment to be installed and the mode of construction.

      27. The Start Date, as specified in the SCC, is the date when the Contractor is obliged to commence execution of the Works. It does not necessarily coincide with any of the Site Possession Dates.

      28. A Subcontractor is any person or organization to whom a part of the Works has been subcontracted by the Contractor, as allowed by the Procuring Entity, but not any assignee of such person.

      29. Temporary Works are works designed, constructed, installed, and removed by the Contractor that are needed for construction or installation of the Permanent Works.

      30. Work(s) refer to the Permanent Works and Temporary Works to be executed by the Contractor in accordance with this Contract, including (i) the furnishing of all labor, materials, equipment and others incidental, necessary or convenient to the complete execution of the Works; (ii) the passing of any tests before acceptance by the Procuring Entity’s Representative; (iii) and the carrying out of all duties and obligations of the Contractor imposed by this Contract as described in the SCC.
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