0

CONTENTS Clause 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 Definitions 34 57 8 8 89 9 910 1011 11 1112 12 1213 1314 1415 1516 16 1617 17 17 17 1718 1819 19 20

ArticlesofAgreement

GeneralobligationsoftheEmployer

GeneralobligationsoftheContractor GeneralobligationsoftheArchitect

GeneralobligationsoftheQuantitySurveyor Contractdocuments

Contractbillsandcontractprice

Contractor'ssiteagentandotherstaff ClerkofWorks

Liabilityagainstinjurytopersonandproperty Insuranceagainstinjurytopersonsandproperty InsuranceoftheWorks(Contractor'sliability) InsuranceoftheWorks(Employer'sliability)

InsuranceoftheWorks(worksofalterationetc..) Performancebond

Compliancewithregulations,notices,etc.. ProgrammeofWorks AccesstotheWorks

PossessionofsiteandcommencementofWorks Levellingandsettingout Architect'sInstructions

Specificationsofgoods,materialsandworkmanship Samplesandtests

 25.0 26.0 27.0 28.0 29.0 30.0 31.0 32.0 33.0 34.0 35.0 36.0 37.0 38.0 39.0 40.0 41.0 42.0 43.0 44.0 45.0 Royaltiesandpatentrights Assignment Subletting 20 20. 2021 21 2122 2224 2428 2829 29 3034 3435 3537 3739 3941 4143 4344 4445 4546 4647 47 4748 49 50 51

SuspensionoftheWorksbytheArchitect SuspensionoftheWorksbytheContractor Variations

Nominatedsubcontractors Nominatedsuppliers

WorkbyotherpersonsengagedbytheEmployer Payments Fluctuations

Extensionoftime

LossandexpensecausedbydisturbanceofregularprogressoftheWorks TerminationofthecontractbytheEmployer

TerminationofthecontractbytheContractor Terminationofthecontractbyeitherparty Practicalcompletionanddefectsliability Sectionalcompletion

Damagesfordelayincompletion

Antiquitiesandotherobjectsofvalue Settlementofdisputes Appendix

FormofperformancebondbytheContractor FormofpaymentbondbytheEmployer

1.0DEFINITIONS 1.1 Architect'sinstructionsMeansinstructionsissuedbytheArchitecttotheContractorin accordancewiththeseconditionsandincludeinstructionsissuedbyotheragentsofthe Employerappointedunderarticle2.13oftheagreement. BillsofquantitiesorcontractbillsMeansthedocumentdrawnupbytheQuantitySurveyor andpricedbytheContractortoarriveatthecontractprice. CertificateofpracticalcompletionMeansacertificateissuedbytheArchitecttothe Contractortosignifyastateofcompletionwhere,intheopinionoftheArchitect,theWorks aresubstantiallycompleteandcaneffectivelyandconvenientlybeusedfortheintended purposes. FinalcertificateMeansacertificateissuedbytheArchitecttotheContractorsignifyingthat theWorkshavebeencarriedoutandcompletedinaccordancewiththetermsofthis contractandthatalladjustmentstothecontractpricehavebeenmadeinaccordance therewith. ContractperiodMeanstheperiodagreedfortheconstructionoftheWorksandstatedin theappendixtotheseconditionsorextendedinaccordancetherewith. ContractpriceMeansthepricefortheWorksasstatedinarticle2.5oftheagreementoras adjustedinaccordancewiththecontract. ContractorMeansthepersonorfirmnamedinthearticlesofagreementwithwhomthe Employerhasenteredintocontractandincludesthelegalsuccessorsintitleandpermitted assigns. Contractor'sequipmentMeansallmachinery,vehicles,tools,apparatusandotherthings requiredforthecarryingoutandcompletionoftheWorksandtheremedyingofany defects. EmployerMeansthepersonorfirmnamedinthearticlesofagreementwithwhomthe Contractorhasenteredintocontractandincludesthelegalsuccessorsintitleandpermitted assigns. DefectMeansanyaspectoftheWorkswhichisnotinaccordancewiththecontractorto thereasonablesatisfactionoftheArchitect. ForceMajeuremeansanevent,occurrenceorcircumstancewhich; 1.11.1 isbeyondaparty'scontrol, 1.11.2 suchpartycouldnotreasonablyhaveforeseenbeforeenteringintocontract, 1.11.3 havingarisen,suchpartycouldnotreasonablyhaveavoidedorovercome, 1.11.4 andisnotsubstantiallyattributabletoeitherparty. 1.12 PatentdefectMeansadefectwhichareasonableinspectionbytheArchitectwould disclose.

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1.10

1.11

 1.13 LatentdefectMeansadefectwhichareasonableinspectionbytheArchitectwouldnot disclose. FinalaccountMeansthedocumentpreparedbytheQuantitySurveyorcontainingallthe adjustmentstothecontractpriceinaccordancewiththeconditionsofcontractandwhichin hisopinionisthetotalvalueoftheWorksatfinalcompletion. MaterialsandgoodsMeansthingsofallkindsandallsuppliesdeliveredbytheContractor, subcontractors,suppliersorbyothersforincorporationintheWorkswhetherstoredon siteorelsewherebutnotyetincorporatedintheWorks.

1.14

1.15

1.16 PrimecostsumMeansasumincludedinthecontractbillsforworksorservicestobe executedbyanominatedsubcontractor,statutoryorotherauthorityorformaterialsor goodstobeobtainedfromanominatedsupplier. 1.17 ProvisionalsumMeansasumincludedinthecontractbillsfortheexecutionofworkwhich cannotbeentirelyforeseen,definedordetailedatthetimethetenderdocumentsare issued. SiteMeanstheplaceorplaceswherethepermanentWorksaretobecarriedoutandto whichmaterialsandgoodsaretobedeliveredandincludesworkshopsorotherplaces wherematerials,goodsorworkarebeingpreparedforincorporationintheWorkseitherby theContractor.subcontractorsorbyothers. WorksMeansthepermanentworksdesignedfortheEmployerbytheArchitectorother agentsforexecutionbytheContractorandasdescribedinthecontractdocuments.Itshall includeworkofallsubcontractorsandsuppliersaswellasmaterialsandgoodssuppliedfor incorporationintheWorks. Allreferencetodaysshallmeancalendardaysof24hoursdurationandshallincludenon workingdaysunlessotherwisestated. Unlessinconsistentwiththecontext,themasculineincludesthefeminine,thesingular includesthepluralandviceversa,andpersonsshallincludebodiescorporate. Titlesandheadingsareforreferencepurposesonlyanddonotformpartofthese conditions.Theyshallnotbetakenintoconsiderationintheinterpretationofthese conditionsorthecontract.

1.18

1.19

1.20

1.21

1.22

Original

Counterpart Embossedstamp

Embossedstamp 2.0ARTICLESOFAGREEMENT 2.1

Thisagreementismadeonthe..................................dayof....

BETWEEN of(orwhoseregisteredofficeissituatedat).. ................................................................................................................................................................. (hereinaftercalled"theEmployer")oftheonepart AND.............................................................................................................................................................. of(orwhoseregisteredofficeissituatedat)......... (hereinaftercalled"theContractor")oftheotherpart. 2.2 WHEREAStheEmployerisdesirousof...........................................................................................

hereinaftercalled"theWorks"at............................................................................................................... onLandReferenceNo......................................................................................................................andhas causeddrawings,billsofquantitiesandspecificationsshowinganddescribingtheworktobedonetobe preparedbyorunderthedirectionsofanArchitect. 2.3ANDWHEREAStheContractorhassuppliedtheEmployerwithapricedcopyofthesaidbillsofquantities (whichcopyishereinafterreferredtoas"thecontractbills")ANDWHEREASthesaiddrawingsnumbered: ....................................................................................................................................................................... ........................................................................................................................................................................ (hereinafter referredtoas"thecontractdrawings")thecontractbillsandthespecificationshavebeensignedbyoron behalfofthepartieshereto.

NOWITISHEREBYAGREEDASFOLLOWS 2.4 Fortheconsiderationhereinafterstated,theContractorshalluponandsubjecttotheconditions annexedheretocarryoutandcompletetheWorksshownuponthecontractdrawingsanddescribed byorreferredtointhecontractbills,thespecificationsandintheconditionsofcontract. TheEmployershallpaytotheContractorthesumofKshs.(inwords)... .(KSH .)(hereinafter referredtoas"thecontractprice")orsuchsumasshallbecomepayablehereinafteratthetimesand inthemannerspecifiedinthesaidconditions. TheEmployershallappointarepresentativewhosenameshallbecommunicatedinwritingtothe Contractor,theArchitectandtheQuantitySurveyor.Thepowersanddutiesoftherepresentative shallbedeemedtobethesameasthoseoftheEmployerunlessotherwisestatedinwriting. Theterm"theArchitect"intheseconditionsshallmean of andintheeventofhisceasingtobetheArchitectforthepurposesofthiscontract,theEmployer shallappointanotherpersonforthatpurpose.Suchapersonshallnotbeapersonagainstwhomthe ContractorshallobjectforreasonsconsideredtobesufficientbyanArbitratorappointedin accordancewithclause45.0oftheseconditions. 2.8 NopersonsubsequentlyappointedtobetheArchitectunderthiscontractshallbeentitledto disregardoroverruleanycertificate,opinion,decision,approvalorinstructiongivenorexpressedby thepreviousArchitect. TheArchitectshallappointarepresentativewhosenameshallbecommunicatedinwritingtothe Contractor,theEmployerandtheQuantitySurveyor.Thepowersanddutiesoftherepresentative shallbedeemedtobethesameasthoseoftheArchitectunlessotherwisestatedinwriting. Theterm"theQuantitySurveyor"intheseconditionsshallmean .of .andin theeventofhisceasingtobetheQuantitySurveyorforthepurposesofthiscontract,suchother personastheEmployershallappointforthatpurpose.Suchapersonshallnotbeapersonagainst whomtheContractorshallobjectforreasonsconsideredtobesufficientbyanArbitratorappointed inaccordancewithclause45.0oftheseconditions. NopersonsubsequentlyappointedtobetheQuantitySurveyorunderthiscontractshallbeentitled todisregardoroverruleanyvaluation,opinion,orassessmentgivenorexpressedbytheprevious QuantitySurveyor. TheQuantitySurveyorshallappointarepresentativewhosenameshallbecommunicatedinwriting totheContractor,theEmployerandtheArchitect.The powersanddutiesoftherepresentativeshallbedeemedtobethesameasthoseoftheQuantity Surveyorunlessotherwisestatedinwriting. 6

2.5

2.6

2.7

2.9

2.10

2.11

2.12

2.13

TheEmployermayappointEngineers,specialistsandotherconsultantstorenderprofessional servicesunderthecontract.Wheresoappointed,suchEngineers,specialistsandotherconsultants shallbedeemed,forthepurposesofthiscontract,toberenderingsuchservicesunderthe delegatedauthorityoftheArchitect. IntheeventoftheneedtoappointareplacementArchitect,QuantitySurveyor,Engineerorother specialist(whethernamedinthisagreementornot)theEmployershallmakesuchappointmentas soonaspracticableaftertheneedforsuchappointmentarises. Wherethecontractdoesnotincorporatebillsofquantities,theterms"contractbills"and"billsof quantities"whereverappearingshallbedeemeddeletedandreplacedwiththeterm"scheduleof rates"asapplicable.

2.14

2.15

2.16 ASWITNESSthehandsofthesaidparties;Signedby thesaid: ......................................................................................................................................................(Employer) Inthepresenceof Name:. Address.............. Signedbythesaid: (Contractor)In thepresenceof: Name:.......................................................................................................................................................... Address.......................................................................................................................................................... 2.17 CAUTION Thewords'Architect,''QuantitySurveyor'and'Engineer'areprescribedandprotectedbystatutefor theuseofpersonsregisteredassuchundertherelevantlaws.Ifthisdocumentisusedbyotherthan sucharegisteredperson,thereferencesappropriatetheretomustbedeletedoramended. 2.18 NOTE Thecontractshallbeunderseal; 2.18.1 Whenthearticlesofassociationofalimitedcompanywhichisapartytothecontractso require,or 2.18.2 Wheneitherpartyisanontradingcorporationsuchasahospitalorschoolboard. 2.18.3 Ifthecontractistobeexecutedundersealdelete"aswitnessthehandsof'andinsert "signedandsealedby".

CONDITIONSOFCONTRACT
3.0 GENERALOBLIGATIONSOFTHEEMPLOYER TheEmployershallupontheexecutionoftheagreement; 3.1 3.2 ClearlyidentifythesiteuponwhichtheWorkswillbecarriedoutandtheaccessthereto. Confirmthatthesaidsiteisinhislegalpossessionandthatitisfreefromallmaterial encumbrances. AscertainandconfirmtotheContractorthattheproposedWorkscomplywithallstatutory requirements,localauthorityplanninganddesignbylawsorregulationsasthecasemaybe. MakeadequatefinancialarrangementstoensurethatallpaymentstotheContractorunder theseconditionsaremadewithintheperiodsandinthemannerstipulatedinthecontract andshallprovidesuchevidencetotheContractoronrequest.

3.3

3.4

4.0

GENERALOBLIGATIONSOFTHECONTRACTOR TheContractorshallupontheexecutionoftheagreement; 4.1 Carryout,superintenduponandcompletetheWorksandrectifyanydefectsappearing thereininaccordancewiththecontractandtothereasonable,satisfactionoftheArchitect, unlessitislegallyorphysicallyimpossibletodoso. GiveawrittennoticetotheArchitectspecifyinganydiscrepancy,ambiguityordivergencein theseconditions,thecontractdrawings,thecontractbillsorspecificationsimmediatelysuch discrepancyordivergenceisdetected.TheArchitectshallthereuponissueinstructionsin regardtheretoassoonasispracticable. NotwithstandinganyobligationoftheArchitecttotheEmployerandwhetherornotthe EmployerappointsaClerkofWorks,theContractorshallremainwhollyresponsiblefor carryingoutandcompletingtheWorksinallrespectsinaccordancewiththecontractand whetherornottheArchitectortheClerkofWorks,ifappointed,atanytimegoesontothe Worksortoanyworkshoporotherplaceswhereworkisbeingpreparedtoinspector approvethesameorotherwise:

4.2

4.3

5.0

GENERALOBLIGATIONSOFTHEARCHITECT TheArchitectshallupontheexecutionoftheagreement; 5.1 Issuecomprehensivedrawingsandallnecessarydetailsandotherinformationrequiredby theContractorforthepropercarryingoutoftheWorks. Expeditiouslysupplyinformation,instructionsandinterpretationsrequiredorrequestedby theContractortoensurethetimelycarryingoutoftheWorks. Issueallnecessaryapprovalsandcertificatesandtakeotherrequiredactionassoonas practicable.

5.2

5.3

5.4

WheretheArchitectisrequiredunderthecontracttoexercisehisdiscretionbygivinghis decision,opinion,consentorapprovalorbytakinganyotheractionwhichmayaffectthe rightsandobligationsoftheEmployerortheContractor,heshallexercisesuchdiscretion impartiallywithinthetermsofthecontract.

6.0

GENERALOBLIGATIONSOFTHEQUANTITYSURVEYOR TheQuantitySurveyorshall,upontheexecutionoftheagreement; 6.1 Expeditiouslyprovidethenecessaryadvice,opinion,assessment,measurements, computations,orvaluationsasthecasemaybeofanymatterrequiredofhimunderthese conditions.Whilegivingadvice,opinion,assesment,measurements,computationsor valuations,heshallcarryoutthetaskimpartiallywithinthetermsofthecontract.

7.0

CONTRACTDOCUMENTS 7.1 ThecontractdocumentsforuseinthecarryingoutoftheWorksshallbe: 7.1.1 7.1.2 7.1.3 7.1.4 7.2 Theagreementandtheseconditions Contractdrawingsaslistedinthearticlesofagreement. Contractbillsofquantitiesorscheduleofratesasapplicable. Specificationsasseparatelysuppliedorascontainedinthecontractbills.

AlltheoriginalcontractdocumentsshallremaininthecustodyoftheArchitectorthe QuantitySurveyorduringtheconstructionperiod.Theyshallbeavailableatallreasonable timesfortheinspectionoftheEmployerortheContractor.Upontheissueofthefinal certificate,theoriginalcontractdocumentsshallbehandedovertotheEmployer. Upontheexecutionofthecontract,theEmployershallregistertheagreementwiththe relevantstatutoryauthorityandpayallfees,charges,taxes,dutiesandallcostsarising therefrom. Immediatelyaftertheexecutionofthecontract,theArchitectortheQuantitySurveyorshall furnishtheEmployerwithonecertifiedsetofallcontractdocuments. TheArchitectandtheQuantitySurveyorshall,withoutchargetotheContractor,furnishhim with: 7.5.1 7.5.2 7.5.3 7.5.4 Aregisteredcounterpartoftheagreementandtheseconditions. Onecertifiedcopyofthecontractbills,whereapplicable. Threecertifiedcopiesofallcontractdrawings. Twocertifiedcopiesoftheunpricedbillsofquantitieswhereapplicable.

7.3

7.4

7.5

7.5.5 7.6

Twocertifiedcopiesofthecontractspecifications,ifnotincludedin7.5.4above.

Sosoonasispracticableaftertheexecutionofthiscontract,theArchitectshallwithout chargetotheContractor,furnishhim(unlessheshallhavebeenpreviousfurnished)with threecopiesofthedescriptiveschedulesorotherlikedocumentsnecessaryforusein carryingouttheWorks.Providedthatnothingcontainedinthesaiddescriptiveschedulesor otherdocumentsshallimposeanyobligationbeyondthoseimposedbythecontract documents. AsandwhennecessarytheArchitect,withoutchargetotheContractor,shallfurnishhim withthreecopiesofsuchfurtherdrawingsordetailsasarereasonablynecessaryeitherto explainoramplifythecontractdrawings,ortoenabletheContractortocarryoutand completetheWorksinaccordancewiththeseconditions. TheContractorshallkeeponecopyofthecontractdrawings,acopyoftheunpricedbillsof quantities,onecopyofthespecificationsdescriptiveschedulesorotherlikedocuments referredtoinsubclause7.5ofthiscondition,andonecopyofthedrawings,detailsand descriptiveschedulesreferredtoinsubclauses7.6and7.7ofthisconditionupontheWorks soastobeavailabletotheArchitectorhisrepresentativesatallreasonabletimes. Uponfinalpaymentunderclause34.0oftheseconditions,theContractorshall,ifrequested bytheArchitect,forthwithreturntotheArchitectalldrawings,detailspecifications, descriptiveschedulesandotherdocumentsofalikenaturewhichbetheArchitect'sname. Thecontractdocumentsaretobetakenasmutuallyexplanatoryofoneanother.Forthe purposesofinterpretation,thepriorityofthedocumentsshallbeinaccordancewiththe followingsequence; 7.10.1 Theletterofawardofcontract 7.10.2 Theagreementandtheseconditions 7.10.3 Thebillsofquantities 7.10.4 Thespecifications 7.10.5 Thedrawings 7.10.6 Theschedulesandotherdocumentsformingpartofthecontract.

7.7

7.8

7.9

7.10

7.11

NoneofthedocumentshereinbeforementionedshallbeusedbytheContractororthe EmployerforanypurposeotherthanthiscontractandneithertheEmployer,theArchitect northeQuantitySurveyorshalldivulgeoruseanyofthepricesinthecontractbillsexcept forthepurposesofthiscontract.

8.0

CONTRACTBILLSANDCONTRACTPRICE 8.1 TheEmployershallbedeemedtohaveprovidedtotheContractorbeforethesubmissionof tenderallavailabledataconcerningthesiteanditssurroundings.TheContractorshallbe responsibleforinterpretingsuchdata.

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8.2

Notwithstandingtheabove,theContractorshallbedeemedtohaveobtainedallnecessary informationwhichmayaffectthetenderortheWorksandtohavesatisfiedhimselfastothe correctnessandsufficiencyofhistenderforthecarryingoutoftheWorks. Thequalityandquantityoftheworkincludedinthecontractpriceshallbedeemedtobe thatwhichissetoutinthecontractbills.Thebills,unlessotherwiseexpresslystatedtherein, shallbedeemedtohavebeenpreparedinaccordancewiththeprinciplesofthelatest editionoftheStandardMethodofMeasurementofBuildingWorksforEastAfrica. Anyerrorindescriptionorinquantityoranyomissionofitemsfromthecontractbillsor specificationsshallnotvitiatethiscontractbutshallbecorrectedanddeemedtobea variationrequiredbytheArchitect. Thecontractpriceshallnotbeadjustedoralteredinanywaywhatsoeverotherwisethanin accordancewiththeexpressprovisionsoftheseconditions. Subjecttosubclause8.4ofthiscondition,anyerrorwhetherarithmeticalornotinthe computationofthecontractpriceshallbedeemedtohavebeenacceptedbytheparties hereto.

8.3

8.4

8.5

8.6

9.0

CONTRACTOR'SSITEAGENTANDOTHERSTAFF 9.1

TheContractorshallconstantlykeepupontheWorksacompetentsiteagentwhoisableto understandandinterpretthecontractdocumentsandtosuperintendupontheWorks. ThesiteagentshallbeliterateintheEnglishlanguage.Any instructionsgiventohimbytheArchitectshallbedeemedtohavebeenissuedtothe Contractor. TheContractorshallmakehisownarrangementsfortheengagementofalllabourandother workmen,bothlocalorotherwise,requiredfortheWorksandshallcomplywithstatutory, industrialorotherrulesandregulationsgoverningtheemploymentandworkingtermsand conditionsoflabour. TheContractorshallberesponsiblefortheobservance,byallsubcontractors(whether nominatedornot)ofalltheforegoingprovisions. TheArchitectmay(butnotunreasonablyorvexatiously)issueinstructionsrequiringthe dismissalfromtheWorksofanypersonemployedthereon.

9.2

9.3

9.4

10.0

CLERKOFWORKS 10.1 TheEmployershallbeentitledtoappointaClerkofWorkswhoseprimarydutyshallbeto actasinspectoroftheWorksonbehalfoftheEmployerunderthedirectionoftheArchitect. TheContractorshallaffordeveryreasonablefacilityfortheperformanceofthatduty. WhereaClerkofWorksisappointed,theEmployermayalsoappointotherpersonstoassist theClerkofWorksintheexerciseofhisfunctions.Directionsgivenbytheassistantsshallbe deemedtobethoseoftheClerkofWorksunlessotherwisestatedinwriting.

10.2

11

10.3

TheemploymentofaClerkofWorksshallnotrelievetheContractorfromanyofhisduties andobligationsunderthecontract. DirectionsgivenbytheClerkofWorksinwritingtotheContractorortohissiteagentshall bedeemedtobeArchitect'sinstructionsinrespectof; 10.4.1 TheinterpretationofArchitect'sinstructions,drawings,specificationsorbillsof quantities. 10.4.2 Theremovalfromthesiteofanywork,materialsorgoodswhicharenotin accordancewiththecontract. 10.4.3 Mattersofurgencyinvolvingthesafetyorprotectionofpersonsorproperty,and 10.4.4 AnyothermattersinrespectofwhichtheArchitectisexpresslyempoweredby theseconditionstoissueinstructionsandonwhichtheArchitecthasauthorizedin writingtheClerkofWorkssotoact.

10.4

10.5

AnyotherdirectionsgivenbytheClerkofWorkstotheContractororthesiteagentshallbe ofnoeffect.

11.0

LIABILITYAGAINSTINJURYTOPERSONSANDPROPERTY 11.1 TheContractorshallbeliableforandshallindemnifytheEmployeragainstanyexpenses, liability,loss,claimorproceedingswhatsoeverarisingunderanystatuteoratcommonlaw inrespectofpersonalinjurytoorthedeathofanypersonarisingoutoforinthecourseof orcausedbythecarryingoutoftheWorks,unlesstheinjuryordeathisduetoanyactor neglectoftheEmployerorofanypersonforwhomtheEmployerisresponsible. ExceptforsuchlossordamageasisattheriskofEmployerunderclause14.0orclause15.0 oftheseconditions(ifapplicable),theContractorshallbeliableforandshallindemnifythe Employeragainstanyexpense,liability,loss,claimorproceedingsinrespectofanyinjuryor damagewhatsoevertoanypropertyrealorpersonalinsofarassuchinjuryordamagearises outoforinthecourseoforbyreasonofthecarryingoutoftheWorks.Providedalwaysthat theinjuryordamageisduetoanynegligence,omissionordefaultoftheContractorhis servantsoragentsorofanysubcontractorhisservantsoragents.

11.2

12.0

INSURANCEAGAINSTINJURYTOPERSONSANDPROPERTY 12.1 WithoutprejudicetohisliabilitytoindemnifytheEmployerunderclause11.0ofthese conditions,theContractorshallmaintainandshallcauseanysubcontractortomaintain; 12.1.1 SuchinsurancesasarenecessarytocovertheliabilityoftheContractororasthe casemaybe,ofsuchsubcontractor,inrespectofpersonalinjuriesordeathsarising outoforinthecourseoforcausedbythecarryingoutoftheWorks,and 12.1.2 SuchinsurancesasarenecessarytocovertheliabilityoftheContractororasthe casemaybe,ofsuchsubcontractor,inrespectofinjuryordamageto

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propertyrealorpersonalarisingoutoforinthecourseoforbyreasonofthe carryingoutoftheWorksandcausedbyanynegligence,omissionordefaultofthe Contractor,hisservantsoragentsor,asthecasemaybe,ofsuchsubcontractor,his servantsoragents. 12.2 AsandwhenheisreasonablyrequiredtodosobytheArchitect,theContractorshall produceandshallcauseanysubcontractortoproduceforinspectionbytheEmployer, documentaryevidencethattheinsurancesrequiredbysubclause12.1.1and12.1.2are properlymaintainedbut,onoccasion,theEmployermayrequiretohaveproducedforhis inspection,thepolicyorpoliciesandthereceiptsinquestion. TheContractorshallmaintaininthejointnamesoftheEmployerandtheContractor, insurancesforsuchamountsofindemnityasmaybespecifiedbywayofprovisionalsum itemsinthecontractbillsinrespectofanyexpenses,liability,loss,claim,orproceedings whichtheEmployermayincurorsustainbyreasonofdamagetoanypropertyotherthan theWorkscausedbycollapse,subsidence,vibration,weakeningorremovalofsupportor loweringofgroundwaterarisingoutoforinthecourseoforbythecarryingoutofthe Works,exceptingdamage; 12.3.1 Causedbythenegligence,omissionordefaultoftheContractor,hisservantsor agentsoranysubcontractor,hisservantsoragents. 12.3.2 AttributabletoerrorsoromissionsinthedesigningoftheWorks. 12.3.3 Whichcanreasonablybeforeseentobeinevitablehavingregardtothenatureof theworktobeexecutedorthemannerofitsexecution. 12.3.4 WhichisattheriskoftheEmployerunderclause14.0orclause15.0ofthese conditions(ifapplicable). 12.3.5 Arisingfromanuclearriskorwarrisk. 12.4 TheinsurancesshallbeplacedwithinsurerstobeapprovedbytheEmployer.The ContractorshalldepositwiththeQuantitySurveyorthepolicyorpoliciesandthereceiptsin respectofpremiumspaid. ShouldtheContractororanysubcontractormakedefaultininsuringorincontinuingto insureasprovidedinsubclauses12.1.1,12.1.2and12.3oftheseconditions,theEmployer mayhimselfinsureagainstanyriskwithrespecttowhichthedefaultshallhaveoccurredand maydeductasumequivalenttotheamountpaidbyhimiiirespectofpremiumsfromany moneydueortobecomeduetotheContractor.

12.3

12.5

13.0

INSURANCEOFTHEWORKS(CONTRACTOR'SLIABILITY) 13.1 Intheerectionofnewbuildings,iftheContractorisrequiredbythecontracttoinsurethe Works,heshallbeforethecommencementoftheworks,procureinsurancesinthejoint namesoftheEmployerandtheContractoragainstlossanddamagebyfire,earthquake,fire followingearthquake,lightning,explosion,storm,tempest,flood,burstingoroverflowingof watertanks,apparatusorpipes,aircraftandotheraerialdevicesorarticlesdropped therefrom,riotandcivilcommotionforthefullvaluethereof(plusthepercentage,ifany namedintheappendixtotheseconditionstocoverprofessionalfees).Theinsurancesshall coverallworkexecutedandallunfixedmaterialsandgoodsdeliveredto,placedonor 13

adjacenttotheWorksandintendedthereforbutexcludingtemporarybuildingsand equipmentownedorhiredbytheContractororanysubcontractor.Heshallkeepsuch work,materialsandgoodssoinsureduntilpracticalcompletionoftheWorks. 13.2 SuchinsurancesshallbewithinsurersapprovedbytheEmployer.Thecontractorshall depositthepolicyorpoliciesandthereceiptsinrespectofpremiumspaidwiththe QuantitySurveyor.ShouldtheContractormakedefaultininsuringorcontinuingtoinsureas aforesaid,theEmployer'mayhimselfinsureagainstanyriskinrespectofwhichthedefault shallhaveoccurredanddeductasumequivalenttotheamountpaidbyhiminrespectof premiumsfromanymoneydueortobecomeduetotheContractor. ProvidedalwaysthatiftheContractorshallindependentlyofhisobligationsunderthis contractmaintainapolicyofinsurancewhichcovers(interalia)thesaidwork,materialsand goodsagainst,theaforesaidcontingenciestothefullvaluethereof(plustheaforesaid percentage,ifany),thenthemaintenancebytheContractorofsuchpolicyshall,ifthe Employer'sinterestisendorsedthereon,beadischargeoftheContractor'sobligationto insureinthejointnamesoftheEmployerandtheContractor. AslongastheContractorisabletoproduceforinspectiondocumentaryevidencethatthe saidpolicyisproperlyendorsedandmaintainedasandwhenheisreasonablyrequiredtodo sobytheArchitect,thentheContractorshallbedischargedfromhisobligationtodeposita policyorpoliciesandreceiptswiththeQuantitySurveyorbutonanyoccasion,theEmployer mayrequiretohaveproducedforhisinspectionthepolicyandreceiptsinquestion. Uponsettlementofanyclaimundertheinsuranceaforesaid,theContractorwithdue diligenceshallrestoreworkdamaged,replaceorrepairanyunfixedmaterialsorgoodswhich havebeendestroyedor,injured,removeanddisposeofanydebrisandproceedwiththe carryingoutandcompletionoftheWorks.Allmoneyreceivedfromsuchinsurances(less onlytheaforesaidpercentage,ifany),shallbepaidtotheContractorbyinstallmentsunder certificatesoftheArchitectissuedattheperiodsofinterimcertificatesstatedinclause34.0 oftheseconditions.TheContractorshallnotbeentitledtoanypaymentinrespectofthe restorationofworkdamaged,thereplacementandrepairofanyunfixedmaterialsor goods,andtheremovalanddisposalofdebris otherthanthemoneyreceivedunderthe saidinsurances.

13.3

13.4

13.5

14.0

INSURANCEOFTHEWORKS(EMPLOYER'SLIABILITY) 14.1 Intheerectionofnewbuildings,iftheEmployerisrequiredbythecontracttoinsurethe Works,allworkexecutedandallunfixedmaterialsandgoods,deliveredtoplacedonor adjacenttotheWorksandintendedthereforebutexcludingtemporarybuildingsand equipmentownedorhiredbytheContractororanysubcontractorshallbeatthesolerisk oftheEmployerasregardslossordamagebyfire,earthquake,firefollowingearthquake, lightning,explosion,storm,tempest,flood,burstingoroverflowingofwatertanks, apparatusorpipes,aircraftandotheraerialdevicesorarticlesdroppedtherefrom,riotand civilcommotion.TheEmployershallmaintainaproperpolicyof insuranceagainstsuchrisks untilpracticalcompletionoftheWorks. Thepolicyorpoliciesandthereceiptsforthelastpremiumpaidforrenewalshall, uponrequest,beproducedforinspectionbytheContractor.

14

14.2

IftheEmployershallatanytimefailuponrequesttoproduceanyreceiptshowingsucha policyasaforesaidtobeeffective,theContractormayinthenameandonbehalfofthe Employer,insureallworkexecutedandallunfixedmaterialsandgoodsasaforesaidagainst lossordamageoccasionedbythesaidcontingenciesandshall,uponproductionofthe receiptforanypremiumpaidbyhim,beentitledtohaveitsamountaddedtothecontract price. IfanylossordamageaffectingtheWorksoranypartthereof,oranysuchunfixedmaterials orgoodsisoccasionedbyanyoneormoreofthesaidcontingencies,then; 14.3.1 Theoccurrenceofsuchlossordamageshallbedisregardedincomputingany amountspayabletotheContractorunderorbyvirtueofthecontract,and 14.3.2 TheContractorwithduediligenceshallrestoreworkdamaged,replaceorrepairany unfixedmaterialsorgoodswhichhavebeendestroyedorinjured,removeand disposeofanydebrisandproceedwiththecarryingoutandcompletionofthe Works. 14.3.3 Therestorationofworkdamaged,thereplacementandrepairofunfixedmaterials andgoodsandtheremovalanddisposalofdebrisshallbedeemedtobeavariation requiredbytheArchitect.

14.3

15.0

INSURANCEOFWORKS(WORKSOFALTERATIONSetc) 15.1 Inworksofalterations,repairsorextensions,theEmployershallsolelytaketheriskforthe existingstructurestogetherwithallthecontentsthereofownedbyhimorforwhichheis responsibleandtheWorksandallunfixedmaterialsandgoodsintendedfor,deliveredto andplacedonoradjacenttotheWorksandintendedthereforebutexcludingtemporary buildingsandequipmentownedorhiredbytheContractororanysubcontractor.The Employershallmaintainaproperpolicyofinsuranceagainsttherisksoflossordamageby fire,earthquake,firefollowingearthquake,lightning,explosion,storm,tempest,flood, burstingoroverflowingofwatertanks,apparatusorpipes,aircraftandotheraerialdevices orarticlesdroppedtherefrom,riotandcivilcommotionuntilpracticalcompletionofthe Works.Thepolicyandthereceiptsforthelastpremiumpaidfortherenewalofthe insurancecovershall,uponrequest,beproducedforinspectionbytheContractor. IftheEmployershallatanytimefail,uponrequest,toproduceanyreceiptshowingsucha policyasaforesaidtobeeffective,theContractormayinthenameandonbehalfofthe Employerinsuretheexistingstructurestogetherwithallthecontentsthereof,theWorks andallunfixedmaterialsandgoodsasaforesaidagainstlossordamageoccasionedbythe saidcontingencies.Heshallhavesuchrightofentryandinspectionasmayberequiredto makeasurveyandinventoryoftheexistingstructuresandcontentstherein.Upon productionofreceiptsforanypremiumpaidbyhim,theContractorshallbeentitledtohave itsamountaddedtothecontractprice. IfanylossordamageaffectingtheWorksoranypartthereoforanysuchunfixedmaterials orgoodsisoccasionedbyanyoneormoreofthesaidcontingencies,then; 15.3.1 Theoccurrenceofsuchlossordamageshallbedisregardedincomputingany amountspayabletotheContractorunderorbyvirtueofthiscontract.

15.2

15.3

15

15.3.2 Ifthecontractisnotterminatedinaccordancewithsubclause40.3,theContractor withduediligenceshallreinstateormakegoodalllossordamageandproceedwith thecarryingoutandcompletionoftheWorks. 15.3.3 TheArchitectmayissueinstructionsrequiringtheContractortoremoveanddispose ofanydebris,and 15.3.4 Thereinstatementandmakinggoodofsuchlossordamageand(whenrequired)the removalanddisposalofdebrisshallbedeemedtobeavariationrequiredbythe Architect. 16.0 PERFORMANCEBOND 16.1 BeforecommencingtheWorks,theContractorshallprovideonesuretywhomustbean establishedbankorinsurancecompanytotheapprovaloftheEmployerandwhowillbe boundtotheEmployerinthesumequivalenttotenpercent(10%)ofthecontractpricefor thedueperformanceofthecontractuntilthecertifieddateofpracticalcompletion.No paymentsshallbemadetotheContractorbeforethesaidbondisprovided. Wherestatedinthecontract,theEmployershallprovideonesuretywhomustbean establishedbankorinsurancecompanytotheapprovaloftheContractorwhowillbebound totheContractorinthesumequaltoonehalfofthelimitofretentionfundforthedue performanceoftheEmployer'spaymentobligationsuntilthefinalcertificateisissuedand honoured.

16.2

17.0

COMPLIANCEWITHREGULATIONS,NOTICES,etc. 17.1 TheContractorshallcomplywithandgiveallnoticesrequiredbyanyenactmentor regulationofanystatutoryorotherauthorityorofanypublicservicecompanywhichhas anyjurisdictionwithregardtotheWorksorwithwhosesystemthesameareorwillbe connected.TheContractor,beforemakinganyvariationfromthecontractdrawings, specificationsorthecontractbillsnecessitatedbysuchcompliance,shallgivetothe Architectawrittennoticespecifyingandgivingthereasonforsuchvariationandthe Architectmayissueinstructionsinregardthereto.Ifwithinfourteendaysofhavinggiventhe saidnoticetheContractordoesnotreceiveanyinstructionsinregardtothematterstherein specified,heshallproceedwiththeworkcomplyingwiththeenactmentorregulationin questionandanyvariationtherebynecessitatedshallbedeemedtobeavariationrequired bytheArchitect. TheEmployershallberesponsibleforobtainingallplanningandsimilarpermitsand approvalsandshallserveallstatutoryandothernoticesandshallpayandindemnifythe Contractoragainstliabilityinrespectofanyfeesorcharges(includinganyratesortaxes) legallydemandableunderanyenactmentorregulationofanystatutoryorotherauthorityor anypublicservicecompanyinrespectoftheWorksandthesiteuponwhichtheWorksare tobeconstructed. TheEmployer'sresponsibilityandliabilityundersubclause17.2hereinshallsubsist irrespectiveofwhetherornotsuchfees,charges,rates,taxesetc.arecoveredbywayof primecostorprovisionalsumsorariseasaresultofanArchitect'sinstructionissuedunder clause22.0oftheseconditions.

17.2

17.3

16

17.4

IntheeventoftheEmployerfailingtocomplywiththeprovisionsofsubclause17.2herein, theContractormaypaysuchfees,charges,rates,taxes,etc.Anycostsorexpensesincurred bytheContractorinmakingsuchpaymentsshallbeassessedbytheQuantitySurveyorand addedtothecontractpriceandifaninterimcertificateisissuedafterthedateof assessment,thesaidamountshallbeaddedtotheamountwhichwouldotherwisebestated asdueinsuchacertificate.

18.0

PROGRAMMEOFWORKS 18.1 TheContractorshall,withintheperiodstatedintheappendixtotheseconditions,submitfor theapprovaloftheArchitectaprogrammeofWorksinsuchformanddetailastheArchitect shallreasonablyprescribe. Shouldactualprogressnotmatchtheprogramme,theContractorshallamendthe programmeaccordinglyandsubmittherevisionstotheArchitect.Intheeventthata Contractorfailstosubmitoramendaprogrammewithinareasonabletimeafterbeingso instructedbytheArchitect,theEmployermaywithholdhalfoftheamountduetothe Contractorinsubsequentpaymentcertificatesuntilthedefaultisrectified. NeitherthesubmissionoftheprogrammebytheContractornoritsapprovalbythe ArchitectshallinanywayrelievetheContractorfromanyofhisdutiesandobligationsunder thecontract.

18.2

18.3

19.0

ACCESSTOTHEWORKS 19.1 TheEmployer,theArchitect,QuantitySurveyor,EngineersandotheragentsoftheEmployer shall,atallreasonabletimes,haveaccesstotheWorksandtotheworkshopsorotherplaces whereworkisbeingpreparedforthecontract. Whereworkistobepreparedinworkshopsorotherplacesofasubcontractor(whether nominatedornot)theContractorshallasfaraspossiblesecureasimilarrightofaccessto thoseplacesforthepersonsmentionedabove.

19.2

20.0

POSSESSIONOFSITEANDCOMMENCEMENTOFWORKS 20.1 Withintheperiodstatedintheappendixtotheseconditions,theEmployer,ortheArchitect onhisbehalf,shallgivepossessionofsitetotheContractorandsuchaccessasmaybe necessarytoenabletheContractortocommenceandproceedwiththeWorksinaccordance withthecontract. Onorbeforethedateforcommencementstatedintheappendixtotheseconditions,the ContractorshallcommencetheexecutionoftheWorksandshallregularlyanddiligently proceedwiththesameandcompleteonorbeforethedatestatedintheappendixtothese conditionsasthedateforpracticalcompletion.

20.2

21.0

LEVELLINGANDSETTINGOUT 21.1 TheEmployershallberesponsiblefortheproperidentificationofthesiteandthe establishmentofboundarypegsandbeaconsandthecorrectnessofthedatumlevelson whichtheArchitect'sdrawingsarebased.Suchpegs,beaconsanddatumlevelsshallbe identifiedtotheContractorbytheEmployerorbytheArchitectonhisbehalf.

17

 21.2 TheContractorshalltakeallnecessaryprecautionstopreservesuchpegs,beaconsand datumlevelsandshouldtheybecomedisturbedheshallreplaceorreinstatethemathis cost. TheArchitectshalldetermineanylevelswhichmayberequiredfortheexecutionofthe WorksandshallfurnishtotheContractor,bywayofaccuratelydimensioneddrawings,such informationasshallenabletheContractortosetouttheWorks. TheContractorshallprovideallnecessaryequipmentandassistancetoenabletheaccuracy ofthesettingouttobecheckedbytheArchitect.Checkingofthesettingoutshallnotrelieve theContractorofhisresponsibilityforthecorrectnessthereof.UnlesstheArchitectshall otherwiseinstruct,theContractorshallberesponsibleforandentirelyathisowncost correctanyerrorsarisingfromhisowninaccuratesettingout.IftheArchitectotherwise instructs,anappropriatedeductionshallbemadefromthecontractpricetoreflectthecost ofsucherrors.

21.3

21.4

22.0

ARCHITECT'SINSTRUCTIONS 22.1 TheContractorshall(subjecttosubclauses22.3and22.4ofthiscondition)forthwith complywithallinstructionsissuedtohimbytheArchitectinregardtoanymatterinrespect ofwhichtheArchitectisexpresslyempoweredbytheseconditionstoissueinstructions. IfwithinfourteendaysafterreceiptofawrittennoticefromtheArchitectrequiring compliancewithaninstructiontheContractordoesnotcomplytherewith,thenthe Employermayemployandpayotherpersonstoexecuteanyworkwhatsoeverwhichmaybe necessarytogiveeffecttosuchinstructions.Allcostsincurredinconnectionwithsuch employmentshallberecoverablefromtheContractorbytheEmployerasadebtormaybe deductedbyhimfromanymoneydueortobecomeduetotheContractorunderthis contract. UponreceiptofwhatpurportstobeaninstructionissuedtohimbytheArchitect,the ContractormayrequesttheArchitecttospecifyinwritingtheprovisionsoftheseconditions whichempowertheissueofthesaidinstruction.TheArchitectshallcomplywithanysuch request,andiftheContractorshallthereaftercomplywiththesaidinstructions,thenthe issueofthesameshallbedeemedforallthepurposesofthiscontracttohavebeen empoweredbytheseconditions.

22.2

22.3

22.4 AllinstructionsissuedbytheArchitectshallbeinwriting.Anyinstructionissuedorallyshall beofnoimmediateeffect,butshallbeconfirmedinwritingbytheContractortotheArchitectwithinseven days.IfnotdissentedfrominwritingbytheArchitectwithinsevendaysfromreceiptsoftheContractors confirmation,theoralinstructionshalltakeeffectasfromtheexpirationofthelattersaidsevendays. Providedalwaysthat; 2.4.1 IftheArchitectshallwithinsevendaysofgivingsuchanoralinstructionhimself confirmthesameinwriting,thentheContractorshallnotbeobligedtoconfirmas aforesaidandthesaidinstructionshalltakeeffectasfromthedateoftheArchitect's confirmation. 22.4.2 IfneithertheContractornortheArchitectshallconfirmsuchanoralinstructionin themannerandatthetimeaforesaid,buttheContractorshallneverthelesscomply 18

withthesame,thentheArchitectmayconfirmthesameinwritingatanytimeprior totheissueofthefinalcertificateandthesaidinstructionshallthereuponbe deemedtohavetakeneffectonthedateonwhichitwasissued. 22.5 AnyinstructionsgivendirectlybytheEmployertotheContractorshallbeofno immediateeffectbutshallbeconfirmedbytheArchitectwithinsevendays,failing whichtheContractorshallconfirmthesameinwritinginthesamemannerasis providedforinsubclause22.4.IfconfirmedbytheContractor,suchinstructions shallbedeemedtobeArchitect'sinstructions.

23.0

SPECIFICATIONOFGOODS,MATERIALSANDWORKMANSHIP 23.1 Allmaterials,goodsandworkmanshipshallsofarasprocurablebeoftherespectivekinds andstandardsdescribedinthecontractbills,thedrawingsandthespecifications. TheContractorshall,uponrequestbytheArchitect,furnishhimwithtradecataloguesor manufacturer'sbrochurestoprovethatthematerialsandgoodscomplywithsubclause 23.1ofthiscondition. IftheContractorshallfailtoobtainmaterialsorgoodsoftherespectivekindsandstandards showninthecontractdrawingsanddescribedorreferredtointhecontractbillsand specifications,heshallforthwithgivetotheArchitectawrittennoticespecifyingthenon availability.TheArchitectshallwithinfourteendaysofreceiptofsuchnoticeissue instructionsinregardthereto. Wherenotsodescribed,thematerials,goodsandworkmanshipshallbetoastandard appropriatetotheWorksandtothereasonablesatisfactionoftheArchitect. Notwithstandingthegeneralityofhispowers,ifanywork,materialsorgoodsarenotin accordancewiththecontract,theArchitectmayinhisdiscretionallowanyorallsuchwork, materialsorgoodstoremainintheWorks.Ifsoallowed,anappropriatedeductionshallbe assessedbytheQuantitySurveyorandthecontractpriceadjustedaccordingly. TheArchitectmayissueinstructionsrequiringtheContractortoopenupforinspectionany workcovereduportoarrangefororcarryouttestsofanymaterialsorgoods(whetheror notalreadyincorporatedintheWorks)orofanyexecutedwork.Thecostofsuchopening uportesting,togetherwiththecostofmakinggoodinconsequencethereof,shallbeadded tothecontractpriceunlessprovidedforinthecontractbillsorunlesstheinspectionortest showsthatthework,materialsorgoodsarenotinaccordancewiththecontract. Wherematerialsorgoodsarespecifiedbyatradeorbrandname,theContractorshallnot beliableforanylatentdefectstherein,ifany.TheContractorshallbedeemedtohave assignedtotheEmployeranyrightofactionthatmayexistagainstthesupplierorthe manufacturerincaseoffailurearisingfromsuchdefects. TheArchitectmayissueinstructionsinregardtotheremovalfromthesiteofanywork, materialsorgoodswhicharenotinaccordancewiththecontract

23.2

23.3

23.4

23.5

23.6

23.7

23.8

19

24.0

SAMPLESANDTESTS 24.1 TheContractorshallarrangeforandfurnishtotheArchitect,samplesofanymaterials, goodsorworkmanshipandperformanyteststhatmaybecalledforbytheArchitectforhis approval.AnysamplesandtestsapprovedbytheArchitectshallbedeemedtorepresentthe minimumstandardforthepartoftheWorkstowhichtheyapply. WheretheContractorfailstocomplywiththeprovisionsofsubclause24.1,theArchitect mayarrangewithotherpartiestoprovidetherequisitesamplesorcarryoutthenecessary tests.TheContractorshallbeobligedtoconformwiththestandardssetbysuchsamplesor tests.Allcostsandexpensesincurredintheprocurementofsuchsamplesandtestsshallbe bornebytheContractor.

24.2

25.0

ROYALTIESANDPATENTRIGHTS 25.1 Allroyaltiesorothersumspayableinrespectofthesupplyanduseofanypatentedarticles, processesorinventionsincarryingouttheWorksasdescribedbyorreferredtointhe contractbillsandthespecificationsshallbedeemedtohavebeenincludedinthecontract price. TheContractorshallindemnifytheEmployerfromandagainstallclaims,proceedings, damages,costsandexpenseswhichmaybebroughtormadeagainsttheEmployerorto whichhemaybeputbyreasonoftheContractorinfringingorbeingheldtohaveinfringed anypatentrightsinrelationtoanysucharticles,processesorinventions. WheretheContractorshallsupplyanduseincarryingouttheWorksanypatentedarticles, processesorinventionsincompliancewithArchitect'sinstructions,theContractorshallnot beliableinrespectofanyinfringementorallegedinfringementofanypatentrightsin relationtoanysucharticles,processesandinventions.Allroyalties,damagesorother moneywhichtheContractormaybeliabletopaytothepersonsentitledtosuchpatent rightsshallbeaddedtothecontractprice.

25.2

25.3

26.0

ASSIGNMENT 26.1 NeithertheEmployernortheContractorshall,withoutthewrittenconsentoftheother, assignthiscontract.Providedthattheapprovalofassignmentshallnotrelieveeitherparty ofhisobligationsforthepartofthecontractalreadyperformedorthepartnotassigned. Itshallbeaconditionofanyassignmentthattheemploymentofanyassignsshallterminate immediatelyuponthetermination(forwhateverreason)oftheContractor'semployment underthecontract.

26.2

27.0

SUBLETTING 27.1 TheContractorshallnotsubletthewholeoftheWorkswithoutthewrittenconsentofthe EmployerandtheArchitect.HemaysubletpartoftheWorksupongivingnoticetothe Architect. TheContractorshallremainliableunderthecontractforallworksubletunderthisclauseas ifhehadhimselfcarriedoutsuchwork.

27.2

20

27.3

Itshallbeaconditioninanysubletting,thattheemploymentofthesubcontractorshall terminateforthwithuponthetermination(forwhateverreason)oftheContractor's employmentunderthecontract.

28.0

SUSPENSIONOFTHEWORKSBYTHEARCHITECT 28.1 TheArchitectmayissueinstructionstopostponethecarryingoutofanyworkincludedin thiscontract. TheArchitectmayissueinstructionstosuspendthecarryingoutofanyworkincludedinthis contract,if; 28.2.1 TheContractorfailstocomplywithanArchitect'sinstructionrequiringthedismissal fromtheWorksofanypersonemployedthereon,or 28.2.2 Therearisesanymattersofurgencyinvolvingthesafetyorprotectionofpersonsor property,or 28.2.3 TheContractorfailstocomplywiththecontractprovisionstoinsuretheWorks,or 28.2.4 TheContractorfailstocomplywithanArchitect'sinstructioninregardtothe removalfromthesiteofanywork,materialsorgoodswhicharenotinaccordance withthecontract,or 28.2.5 TheContractorassignsthecontractorsubletsthewholeoftheWorkswithoutthe writtenconsentoftheEmployer. 28.3 Exceptforsuspensionundersubclause28.2.2,allotherinstructionstosuspendshallbe accompaniedbyasevendaysnotice. InstructionsforpostponementorsuspensionshallbecopiedtotheEmployer Thesuspensionshallnottakeeffectifthematteroccasioningthenoticeisrectifiedwithin theperiodofthenotice.Suchsuspensionshallceaseimmediatelythematteroccasioning thenoticeisrectified. ShouldtheWorksbesuspendedunderthisclause,theContractorshallbeliableforall expensesarisingtherefrom.

28.2

28.4 28.5

28.6

29.0

SUSPENSIONOFTHEWORKSBYTHECONTRACTOR 29.1 TheContractormaysuspendthecarryingoutoftheWorks,if; 29.1.1 Hehasnotreceivedapaymentcertificatewhichheappliedforinaccordancewith Clause34.0oftheseconditionsandthedefaultcontinuesforthirtydaysafterexpiry ofthestatedperiod,or 29.1.2 Hehasnotreceivedpaymentwithintheperiodforhonouringcertificatesprovided inclause34.0oftheseconditionsandthedefaultcontinuesforthirtydaysafter expiryofthestatedperiod,or

21

29.1.3 TheContractornotifiestheArchitectthatishasbecomeimpossibleorimpracticable toprocuregoodsandmaterialsfortheWorksforreasonsbeyondtheContractors controlandtheArchitecthasnotgiveappropriateinstructionsinaccordancewith subclause23.3,or 29.1.4 Delayoccursinthenominationorrenominationofasubcontractororsupplier whichdelaymateriallyaffectstheprogressoftheWorks,or 29.1.5 DelayoccursintheappointmentofareplacementArchitect,QuantitySurveyoror EngineerwhichdelaymateriallyaffectstheprogressoftheWorks. 29.2 WheretheContractorintendstosuspendthecarryingoutoftheWorks,heshallgivethe Employerasevendaysnoticeinwritingtothateffect,withacopytotheArchitect. TheContractorshallnotsuspendthecarryingoutoftheWorksifthematteroccasioningthe noticeisrectifiedwithintheperiodofthenotice.Suchsuspensionsshallceaseimmediately thematteroccasioningthenoticeisrectified. Duringtheperiodofsuspensioneitherunderclause28.0orhereintheContractorshall properlyprotectandsecuretheWorkstothereasonablesatisfactionoftheArchitect.

29.3

29.4

30.0

VARIATIONS 30.1 Theterm'variation'asusedintheseconditionsshallmeanthealterationormodificationof thedesign,qualityorquantityoftheWorksasshownuponthecontractdrawingsand describedbyorreferred.tointhecontractbillsandspecificationsandincludes: 30.1.1 Theaddition,omissionorsubstitutionofanyitemofwork., 30.1.2 Thealterationofthekindorstandardofanyofthematerialsorgoodstobeusedin theWorks. 30.1.3 Theremovalfromthesiteofanywork,materials,orgoodsbroughtupontheWorks bytheContractorforthepurposesofthe'Worksotherthanwork,materials,or goodswhicharenotinaccordancewiththecontract. 30.1.4 TheissueofinstructionsbytheArchitectinregardtotheexpenditureofprimecost andprovisionalsumsincludedinthecontractbillsandofprimecostsumswhich ariseasaresultofinstructionsissuedinregardtotheexpenditureofprovisional sums. 30.2 TheArchitectmayissueinstructionsrequiringavariationandhemaysanctioninwritingany variationmadebytheContractorotherwisethanpursuanttoaninstructionoftheArchitect. NovariationrequiredbytheArchitectorsubsequentlysanctionedbyhimshallvitiatethis contract,providedthatnosuchinstructionsshallsubstantiallychangethescopeorobjectof thecontractwithouttheconsentoftheEmployerandtheContractor.

22

30.3

Ifthe,netvalueofallvariationsshouldequal15%ofthebuilderswork,theArchitectshall notissueanyfurtherinstructionsrequiringavariationforadditionalworkwithoutthe consentoftheEmployerandtheContractor. AllinstructionsforvariationsshallbecopiedtotheEmployer. variationsrequiredbytheArchitectorsubsequentlysanctionedbyhiminwritingandall WorkexecutedbytheContractorforwhichprovisionalsumsareincludedinthecontract bills(otherthanworkforwhichatendermadeundersubclause31.11ofthese,conditions hasbeenaccepted)shallbeassessedbytheQuantitySurveyorwhoshallgivetothe Contractoranopportunityofbeingpresentatthetimeofsuchassessmentandoftaking suchnotesandmeasurementsastheContractormayrequire. ThevaluationofvariationsandofworkexecutedbytheContractorforwhichaprovisional sumisincludedinthecontractbills(otherthanworkforwhichatenderhasbeenaccepted asaforesaid)unlessotherwiseagreed,shallbemadeinaccordancewiththefollowingrules: 30.6.1 Thepricesinthecontractbillsshalldeterminethevaluationofworkofsimilar characterexecutedundersimilarconditionsasworkpricedtherein. 30.6.2 Thesaidprices,whereworkisnotofasimilarcharacterorexecutedundersimilar conditionsasaforesaid,shallbethebasisofpricesforthesamesofarasmayhe reasonablefailingwhichafairvaluationthereofshallhemade. 30.6.3 Whereworkcannotproperlybemeasuredandvalued,theContractorshallbe alloweddayworkratesonthepricesprevailingwhensuchworkiscarriedout (unlessotherwiseprovidedinthecontractbills).Thedayworkrateswillbe; 30.6.3.1 Rates,ifany,insertedbytheContractorinthecontractbillsorina scheduleofrates,or Whennosuchrateshavebeeninserted,atratestobeagreed betweentheQuantitySurveyorandtheContractor. Vouchersspecifyingthetimedailyspentuponthework(andif requiredbytheArchitect,theworkmen'snames)theequipment andthematerialsusedshallbedeliveredforverificationtothe QuantitySurveyornotlaterthantheendoftheweekfollowingthat inwhichtheworkwasexecuted.

30.4 30.5

30.6

30.6.3.2

30.6.3.3

30.6.4ThepricesinthecontractbillsshalldeterminetheValuationofitemsomitted. Providedthatifomissionssubstantiallyvarytheconditionsunderwhichany remainingitemsofworkarecarriedout,thepricesforsuchremainingitemsshallbe valuedassetoutinsubclause30.6.2. 30.7 Effectshallbe'giventothemeasurementandvaluationofvariationsundersubclause30.6 ofthisconditionininterimcertificatesandbyadjustmentofthecontractprice.Effectshall alsobegiventothemeasurementandvaluationofworkforwhichaprovisionalsumis includedinthecontractbillsunderthesaidsubclauseininterimcertificatesandby adjustmentofthecontractpriceinaccordancewithsubclause34.19.

23

30.8

IfuponwrittenapplicationbeingmadebytheContractor,theQuantitySurveyorisofthe opinionthatavariationortheexecutionbytheContractorofworkforwhichaprovisional sumisincludedinthecontractbills(otherthanworkforwhichatendermadeunderclause 31.0oftheseconditionshasbeenaccepted),hasinvolvedtheContractorindirectlossand orexpenseforwhichhewouldnotbereimbursedbypaymentinrespectofavaluation madeinaccordancewiththerulescontainedinsubclause30.6ofthisconditionandifthe saidapplicationismadewithsupportingdetailswithinthirtydaysofthelossorexpense havingbeenincurred,theQuantitySurveyorshallassesstheamountofsuchlossorexpense. Anyamountsoassessedfromtimetotimeshallbeaddedtothecontractprice,andifan interimcertificateisissuedafterthedateofassessmentthesaidamountshallbeaddedto theamountwhichwouldotherwisebestatedasdueinsuchcertificate. ShouldanypartoftheWorksbeomittedfromthecontractandthatpartiscarriedoutby others,theContractorshallbeentitledtoreimbursementoftheprofithewouldhavemade hadhecarriedouttheomittedpart.SuchlossofprofitshallbeassessedbytheQuantity Surveyorandifaninterimcertificateisissuedafterthedateofassessmentthesaidamount shallbeaddedtotheamountwhichwouldotherwisebestatedasdueinsuchacertificate.

30.9

30.10 Noinstructionsforvariationsshallbeissuedafterthepracticalcompletioncertificateis issuedwithouttheconsentoftheContractor. 30.11 WhereavariationisnecessitatedbythedefaultorbreachofthecontractbytheContractor, anyadditionalcostattributabletosuchavariationshallbebornebytheContractor. 30.12 Exceptasexpresslystatedinthecontract,theArchitectshallhavenoauthoritytoalteror amendthetermsandconditionsofthecontractortorelievetheContractorofanyofhis obligationsunderthecontract. 30.13 WheretheArchitect,withtheconsentoftheEmployerandtheContractor,issues instructionsrequiringavariationbeyondthelimitprovidedinsubclause30.3,theEmployer mayrequireanadditionalperformancebondoverandabovethatprovidedundersubclause 16.1.TheContractorshallbereimbursedfortheprovisionoftheadditionalbondproratato theamountpricedforthebondinthecontract. 30.14 TheArchitectshallnotissueaninstructionrequiringavariationforadditionalwork exceeding0.01%ofthecontractpricewithoutthepriorapprovaloftheEmployerunless otherwisecommunicatedbytheEmployertotheArchitectandtotheContractor. 31.0 NOMINATEDSUBCONTRACTORS 31.1 Thefollowingprovisionsshallapplywhereprimecostsumsareincludedinthecontractbills orariseasaresultofArchitect'sinstructionsgiveninregardtotheexpenditureof provisionalsumsinrespectofpersonstobenominatedbytheArchitecttosupplyandfixor installmaterialsorgoodsortocarryoutwork. SuchsumsshallbeexpendedinfavourofsuchpersonsastheArchitectshallinstruct,with theconsentoftheEmployer,andallspecialistsorotherswhoarenominatedbythe ArchitectareherebydeclaredtobesubcontractorsemployedbytheContractor,andare referredtointheseconditionsasnominatedsubcontractors'.

31.2

24

31.3

TheArchitectshallnotnominateanypersonasasubcontractoragainstwhomthe Contractorshallmakereasonableobjection Thenominatedsubcontractorshallcarryoutandcompletethesubcontractworksinevery respecttothereasonablesatisfactionoftheContractorandoftheArchitectandin conformitywithallthereasonabledirectionsandrequirementsoftheContractor. TheContractorandthenominatedsubcontractorshallenterintoasubcontractagreement whichprovides(interalia): 31.5.1 Thatthenominatedsubcontractorshallobserve,performandcomplywithallthe provisionsofthiscontractonthepartoftheContractortobeobserved,performed andcompliedwith(otherthanclause13.0oftheseconditions,ifapplicable)sofaras theyrelateandapplytothesubcontractworksortoanyportionofthesame. 31.5.2 ThatthenominatedsubcontractorshallindemnifytheContractoragainstthesame liabilitiesinrespectofthesubcontractworksasthoseforwhichtheContractoris liabletoindemnifytheEmployerunderthiscontract. 31.5.3 ThatthenominatedsubcontractorshallindemnifytheContractoragainstclaimsin respectofanynegligence,omissionordefaultofsuchsubcontractor,hisservantsor agentsoranymisusebyhimorthemofanyscaffoldingorotherequipment,and shallinsurehimselfagainstanysuchclaimsandproducethepolicyorpoliciesand receiptsinrespectofpremiumspaidasandwhenrequiredbyeithertheArchitector theContractor. 31.5.4 Thatthesubcontractworksshallbecompletedwithintheperiodor(wheretheyare tobecompletedinsections)periodsthereinspecified. 31.5.5 ThattheContractorshallnotwithoutthewrittenconsentoftheArchitect,grantany extensionoftimeforthecompletionofthesubcontractworksoranysection thereof,andthattheContractorshallinformtheArchitectofanyrepresentation madebythenominatedsubcontractorastothecauseofanydelayintheprogress orcompletionofthesubcontractworksoranysectionthereof. 31.5.6 Thatifthenominatedsubcontractorshallfailtocompletethesubcontractworks or(wherethesubcontractworksaretobecompletedinsections)anysection thereof,withintheperiodthereinspecifiedorwithinanyextendedtimegrantedby theContractorwiththewrittenconsentoftheArchitectandtheArchitectcertifies inwritingtotheContractorthatthesameoughtreasonablysotohavebeen completed,thenominatedsubcontractorshallpayorallowtotheContractoreither asumcalculatedattheratethereinagreedasliquidateddamagesfortheperiod duringwhichthesaidworksoranysectionthereof,asthecasemaybe,shallso remainorhaveremainedincompleteor(wherenosuchrateisthereinagreed),a sumequivalenttoanylossordamagesufferedorincurredbytheContractorand causedbythefailureofthenominatedsubcontractorasaforesaid. 31.5.7 Thatpaymentinrespectofanywork,materialsorgoodscomprisedinthesub contractshallbemadewithinfourteendaysafterreceiptbytheContractorofthe 25

31.4

31.5

sumtowhichtheContractorshallbeentitledbyvirtueoftheArchitect'scertificates issuedunderclause34.0oftheseconditionswhichstatesasdueanamount calculatedbyincludingthetotalvalueofsuchwork,materialsorgoods,andshall whenduebesubjecttoretentionbytheContractorofthesumsstatedinsubclause 31.5.8ofthiscondition. 31.5.8 ThattheContractorshallretainfromthesumdirectedbytheArchitectashaving beenincludedinthecalculationoftheamountstatedasdueinanycertificateissued underclause34.0oftheseconditionsinrespectofthetotalvalueofwork,materials orgoodsexecutedorsuppliedbythenominatedsubcontractorthepercentageof suchvaluenamedintheappendixtotheseconditionsaspercentageofcertified valueretaineduptoa.totalamountnotexceedingasumwhichbearsthesame ratiotothesubcontractpriceastheunreducedsumnamedintheappendixto theseconditionsasthelimitofretentionfundbearstothecontractprice. 31.5.9 ThattheContractor'sinterestinanysumssoretained(bywhomsoeverheld)shallbe fiduciaryastrusteeforthenominatedsubcontractor(butwithoutobligationto invest),andthatthenominatedsubcontractor'sbeneficialinterestinsuchsums shallbesubjectonlytotherightoftheContractortohaverecoursetheretofrom timetotimeforpaymentofanyamountwhichheisentitledunderthesubcontract todeductfromanysumdueortobecomeduetothenominatedsubcontractor; andthatifandwhensuchsumsoranypartthereofarereleasedtothenominated subcontractor,theyshallbepaidinfull. 31.5.10ThattheEmployer,theArchitect,QuantitySurveyor,Engineersandotheragentsof theEmployer,shallhavearightofaccesstotheworkshopsandotherplacesofthe nominatedsubcontractorwhereworkisbeingpreparedasprovidedforinclause19.0of theseconditions. 31.6 TheArchitectshalldirecttheContractorastothetotalvalueofthework,materialsor goodsexecutedorsuppliedbyanominatedsubcontractorincludedinthecalculationofthe amountstatedasdueinanycertificateissuedunderclause34.0oftheseconditionsand shallforthwithinformthenominatedsubcontractorinwritingoftheamountofthesaid totalvalue.ThesumrepresentingsuchtotalvalueshallbepaidbytheContractorwithin fourteendaysafterreceiptbytheContractorofthesumtowhichtheContractorshallbe entitledbyvirtueofthecertificatelessonly; 31.6.1 AnyretentionmoneywhichtheContractormaybeentitledtodeductunderthe termsofthesubcontract,and 31.6.2 AnysumtowhichtheContractormaybeentitledinrespectofdelayinthe completionofthesubcontractworksoranysectionthereof,and 31.6.3 Amountsalreadypaidunderpreviouscertificates. 31.7 Beforeissuinganycertificateunderclause34.0oftheseconditions,theArchitectmay requesttheContractortofurnishtohimreasonableproofthatallamountsincludedinthe calculationoftheamountsstatedasdueinpreviouscertificatesinrespectofthetotalvalue ofthework,materialsorgoodsexecutedorsuppliedbyanynominatedsubcontractorhave beendulypaidandiftheContractorfailstocomplywithanysuch 26

requesttheArchitectshallissueacertificatetothateffect,andthereupontheEmployermay himselfpaysuchamountstoanynominatedsubcontractorconcernedanddeductthesame fromanymoneydueortobecomeduetotheContractor. 31.8 TheContractorshallnotgranttoanynominatedsubcontractoranyextensionoftheperiod withinwhichthesubcontractworks,or(wherethesubcontractworksaretobecompleted insections)anysectionthereofistobecompletedwithoutthewrittenconsentofthe Architect.ProvidedalwaysthattheContractorshallinformtheArchitectofany representationsmadebythenominatedsubcontractorastothecauseofanydelayinthe progressorcompletionofthesubcontractworksorofanysectionthereof.Theconsentof theArchitectshallnotbeunreasonablywithheld.Anyextensionoftimegrantedunderthis clauseshallbecopiedtotheEmployer. Ifanynominatedsubcontractorfailstocompletethesubcontractworksor(wherethesub contractworksaretobecompletedinsections)anysectionthereofwithintheperiod specifiedinthesubcontractorwithinanyextendedtimegrantedbytheContractorwiththe writtenconsentoftheArchitect,thenifthesameoughtreasonablysotohavebeen completed,theArchitectshallcertifyinwritingaccordingly.Immediatelyuponissue,the Architectshallsendacopyofanysuchcertificatetothenominatedsubcontractorandto theEmployer.

31.9

31.10 IftheArchitectdesirestosecurefinalpaymenttoanynominatedsubcontractorbeforefinal paymentisduetotheContractor,andifsuchsubcontractorhassatisfactorilyindemnified theContractoragainstanylatentdefects,thentheArchitectmayinaninterimcertificate includeanamounttocoverthesaidfinalpayment,andtheContractorshallpaytosuch nominatedsubcontractortheamountsocertifiedwithinfourteendaysofreceiptofthe payment.Uponsuchfinalpayment,theamountnamedintheappendixtotheseconditions aslimitofretentionfundshallbereducedbythesumwhichbearsthesameratiotothesaid amountasdoessuchsubcontractor'ssubcontractpricetothecontractprice,andsavefor latentdefects,theContractorshallbedischargedfromallliabilityforthework,materialsor goodsexecutedorsuppliedbysuchsubcontractorunderthesubcontracttowhichthe paymentrelates. 31.11 WheretheContractorintheordinarycourseofhisbusinessdirectlycarriesoutworksfor whichprimecostsumsareincludedinthecontractbillsandwherehehassoinformedthe Architect,theContractorshallbepermittedtotenderforthesameoranyofthem,but withoutprejudicetotheEmployer'srighttorejectthelowestoranytender. 31.12 WhereaprimecostsumarisesunderArchitect'sinstructionsissuedundersubclause 30.1.4,oftheseconditions,itshallbedeemedforthepurposesofthissubclausetohave beenincludedinthecontractbills. 31.13 Itshallbeaconditionofanytenderacceptedundersubclause31.11thatclause30.0of theseconditionsshallapplyinrespectoftheitemsofworkincludedinthetenderasifthe referencethereintothecontractdrawings,specificationsandthecontractbillswere referencestotheequivalentdocumentsincludedinorreferredtointhetender. 31.14 WherethetermsofacontractbetweentheContractorandanominatedsubcontractorso requireortheArchitectshallsoauthorizeinwriting,theContractorshallmakeadvance paymenttothesubcontractorbeforedeliveryofthematerialsorgoods,andtheContractor 27

shallbeallowedsimpleinterestfortheperiodofsuchadvancepaymentcalculatedatthe commercialbanklendingrateinforceatthetimeoftheadvanceuntilthevalueofthesaid materialsorgoodsisincludedinacertificateinaccordancewithclause34.0. 31.15 IfanominatedsubcontractorterminatesthesubcontractortheContractorterminatesthe subcontractontheadviceoftheArchitect,theArchitectshallmakeafurthernominationof asubcontractorasmaybenecessarytocarryoutandcompletetheworkleftincompleteby thesubcontractorwhoseemploymenthasbeenterminated.Anyadditionalcostsarising therefromshallbebornebytheEmployer. Notwithstandingtheabove,theArchitectmayinstruct,withtheconsentoftheContractor, thattheincompleteworkshallbeexecutedbytheContractorandsuchinstructionshallbe deemedtobeavariationtothecontract. 31.16 Providedthatwhereanominatedsubcontractorterminatesthesubcontractasaresultofa defaultbytheContractor,ortheContractorterminatesthesubcontractwithoutthewritten adviceoftheArchitect,theContractorshallbeliabletotheEmployerforanyadditional costsarisingtherefrom. 31.17 Whereanominatedsubcontractprovidesadefectsliabilityperiodwhichextendsbeyond theContractor'sdefectsliabilityperiod,theContractor'sobligationsandliabilitiesin connectionwiththedefectsofthenominatedsubcontractshallneverthelessterminateat theendoftheContractor'sdefectsliabilityperiod.Theremainingportionofthenominated subcontractor'sdefectsliabilityperiodshallbesubjecttoadirectagreementbetweenthe Employerandthenominatedsubcontractorandshallnotformpartofthisagreement 31.18 Whereasubcontractorisrequiredtogiveaguaranteeorwarrantyrelatingtothesub contractworkssuchguaranteeorwarrantyshallbeassignedbythesubcontractortothe Employerpriortotheissueofthefinalcertificate. 31.19 Theemploymentofanominatedsubcontractorundertheseconditionsshallterminate forthwithuponthetermination(foranyreason)oftheContractor'semploymentunderthe contract. 31.20 Neithertheexistencenortheexerciseoftheforegoingpowersnoranythingelsecontained intheseconditionsshallrendertheEmployerinanywayliabletoanynominatedsub contractor. 32.0 NOMINATEDSUPPLIERS 32.1 Thefollowingprovisionsshallapplywhereprimecostsumsareincludedinthecontractbills, orariseasaresultofArchitect'sinstructionsgiveninregardtotheexpenditureof provisionalsumsinrespectofanymaterialsorgoodstobesuppliedbyothersandfixedor installedbytheContractor. Suchsumsandthetermprimecost,whenincludedorarisingasaforesaid,shallbe understoodtomeanthenetcosttobedefrayedasaprimecostafterdeductinganytradeor otherdiscountandshallincludecustomsdutyorothertaxes,andthecostofpacking, carriage,anddelivery.Providedthat,whereintheopinionoftheArchitecttheContractor hasincurredexpenseforspecialpackingorspecialcarriage,suchspecialexpensesshallbe allowedaspartofthesumsactuallypaidbytheContractor. 28

32.2

32.3

SuchsumsshallbeexpendedinfavourofsuchpersonsastheArchitectshallinstruct.All specialists,merchants,tradesmenorotherswhoaresonominatedbytheArchitectto supplymaterialsorgoodsareherebydeclaredtobesupplierstotheContractorandare referredtointheseconditionsas'nominatedsuppliers'. TheArchitectshallnotnominateasasupplier,apersonwhowillnotenterintoacontractof salewhichprovides(interalia): 32.4.1 Thatthematerialsorgoodstobesuppliedshallbetothereasonablesatisfactionof theArchitect. 32.4.2 Thatthenominatedsuppliershallmakegoodbyreplacementorotherwiseany defectsinthematerialsorgoodssuppliedwhichappearwithinsuchperiodasis thereinstatedandshallbearanyexpensesreasonablyincurredbytheContractoras adirectconsequenceofsuchdefectsprovidedthat: 32.4.2.1Wherethematerialsorgoodshavebeenusedorfixedsuchdefectsarenot suchthatexaminationbytheContractoroughttohaverevealedthembeforeusing orfixing,and 32.4.2.2Suchdefectsareduesolelytodefectiveworkmanshipordefectsinthe materialsorgoodssuppliedandshallnothavebeencausedbyimproperstorageby theContractororbymisuseorbyanyactorneglectofeithertheContractor,the ArchitectortheEmployerorbyanypersonorpersonsforwhommayberesponsible 32.4.3 Thatdeliveryofthematerialsorgoodssuppliedshallbecommencedandcompleted atsuchtimesastheContractormayreasonablydirect. 32.4.4 AllpaymentsbytheContractorformaterialsorgoodssuppliedbyanominated suppliershallbeinfullandshallbepaidwithinthirtydaysoftheendofthemonth duringwhichdeliveryismade.FailurebytheContractortopaythenominated supplierasstipulatedshallentitletheEmployertopaytherelevantsumsdirectand deductthesamefromanymoneydueortobecomeduetotheContractor. 32.4.5 WherethetermsofacontractbetweentheContractorandanominatedsupplierso require,ortheArchitectshallsoauthorizeinwriting,theContractorshallmake advancepaymentstothesupplierbeforedeliveryofthematerialsorgoods.The Contractorshallbeallowedsimpleinterestfortheperiodofsuchadvancepayment calculatedatthecommercialbanklendingrateinforceatthetimeoftheadvance untilthevalueofthesaidmaterialsorgoodsisincludedinacertificatein accordancewithclause34.0.

32.4

33.0

WORKBYOTHERPERSONSENGAGEDBYTHEEMPLOYER 33.1 TheContractorshallpermitthecarryingoutofworknotformingpartofthiscontract,but describedinthecontractbills,bytheEmployerorbyotherpersonsemployedorotherwise engagedbyhim. Wheretheworkisnotdescribedinthecontractbills,theEmployermayarrangethecarrying outofsuchworkonlywiththeconsentoftheContractor,whichconsentshallnotbe unreasonablywithheld.33.3Everypersonemployedorotherwiseengagedbythe EmployerunderthisclauseshallbedeemedtobeapersonforwhomtheEmployeris responsibleandnotasubcontractor. 29

33.2

34.0

PAYMENTS 34.1 Atintervalsstatedintheappendixtotheseconditions;theContractorshallsubmitthe QuantitySurveyoranapplicationforpaymentgivingsufficientdetailsoftheworkdoneand thematerialsonsiteandtheamountswhichtheContractorconsidershimselftobeentitled to.TheapplicationforpaymentshallbecopiedtotheArchitectandtheEmployer. Uponreceiptoftheapplicationandafterverifyingtheamounts,theQuantitySurvey,shall preparewithinsevendaysaninterimvaluationofworkdoneandmaterialsonsiteduring therelevantperiodandforwardthesametotheArchitect.Thevaluationshallbecopiedto theEmployer. TheArchitectshallissueaninterimpaymentcertificatewithinsevendaysfromthedateof receiptoftheQuantitySurveyor'svaluation.Thepaymentcertificateshallbecopiedtothe Employer. NeithertheQuantitySurveyornortheArchitectshallbeboundtoissueavaluationa paymentcertificate,asthecasemaybe,whosevalueislessthantheamountstatedthe appendixtothese,conditionsastheminimumamountofapaymentcertificatebeforethe issueofthecertificateofpracticalcompletionofthewholeoftheWorksanysection thereof. TheContractorshall,onpresentinganyinterimpaymentcertificatetotheEmployer,be entitledtopaymentthereofwithinfourteendaysfrompresentation. Ifacertificateremainsunpaidbeyondtheperiodforhonouringcertificatesstatedherein, theEmployershallpayorallowtotheContractorsimpleinterestontheunpaidamountfor theperioditremainsunpaidatthecommercialbanklendingrateinforceduringtheperiod ofdefault.TheQuantitySurveyorshallassesstheamountstobeincludedinaninterim certificateastheinterestdueforthedelayandifaninterimcertificateisissuedafterthe dateofanysuchassessment,theamountshallbeadded'theamountwhichwould otherwisebestatedasdueinsuchacertificate. ThepaymentofinterestforlatepaymentofcertifiedsumsshallnotrelievetheEmployer fromhisobligationtohonourpaymentcertificateswhendue. TheArchitectmay,byasubsequentorsupplementarycertificate,makeanycorrection, amendmentormodificationtoanypreviouslyissuedcertificateandshallhavetheauthority, ifworkisnotcarriedouttohissatisfaction,toomitorreducethevaluesuchworkinany certificate Theamountstatedasdueinaninterimcertificateshall,subjecttoanyagreementbetween thepartiesastostagepayments,bethetotalvalueofworkproperlyexecutedandthevalue ofmaterialsandgoodsrequiredforuseintheWorkswhichhavebedeliveredtotheWorks.

34.2

34.3

34.4

34.5

34.6

34.7

34.8

34.9

34.10 TheArchitectmay,withtheconsentoftheEmployer,includeinaninterimcertificatethe valueofmaterialsandgoodswhichhavebeenstoredelsewhereinsafecustodybythe Contractor.

30

 34.11 Providedthatsuchinterimcertificateshallonlyincludethevalueofsuchmaterialsand goodsasandfromsuchtimeastheyarereasonably,properlyandnotprematurelybrought totheWorksorstoredasaforesaidandareadequatelystoredandprotectedagainst weatherandothercasualtiesandarecoveredbyproperinsuranceandhavepassedtothe legalownershipoftheContractor.Thereshallbedeductedfromtheamountofthe certificatesuchsumsasmayberetainedbytheEmployerashereinafterprovidedandless anyamountspreviouslycertifiedunderthisclause. 34.12 TheEmployermayretainthepercentageofthetotalvalueofthework,materialsandgoods referredtoinsubclause34.9ofthisconditionwhichisnamedintheappendixtothese conditionsaspercentageofcertifiedvalueretained.Providedalwaysthatwhenthesumof theamountssoretainedequalstheamountnamedinthesaidappendixaslimitofretention fund,orthatamountasreducedpursuanttosubclause,31.10,42.7,and42.8ofthese conditions,asthecasemaybe,nofurtheramountshallberetainedbyvirtueofthisclause. 34.13 WhereanycertificateofwhichtheContractorhasreceivedpaymentinaccordancewithsub clause34.5oftheseconditions,includesthevalueofanyunfixedmaterialsandgoods requiredforuseintheWorks,suchmaterialsandgoodsshallbecomethepropertyofthe EmployerandshallnotberemovedwithouttheauthorityoftheArchitectexceptforuse upontheWorks.TheContractorshallremainresponsibleforanylossofordamagetosuch materialsandgoodswhetherthesamearestoredonsiteorelsewhere. 34.14 Thefollowingamounts,Whenincludedininterimcertificates,shallnotbesubjectto retention: 34.14.1 Paymentfortaxes,leviesandchargesinrespectofwhichtheContractor paysorindemnifiestheEmployerundertheprovisionsofsubclause17.4of theseconditions. PaymentmadeforinspectionsandtestscarriedoutbytheContractororby thirdpartiesunderclauses23.0and24.0. PaymenttotheContractorfortheprovisionofaperformancebond'under clause16.1oftheseconditions. PaymenttotheContractorfortheprovisionofinsurancesunderclauses 12.0,13.0,14.0and15.0oftheseconditions,asapplicable Paymentforgoodsandmaterialssuppliedbynominatedsuppliersunder clause32.0. AnyamountstowhichtheContractorisentitledinaccordancewithsub clause34.28.

34.14.2

34.14.3

34.14.4

34.14.5

34.14.6

34.15 TheEmployerandtheContractormayagreetoopenajointinterestearningbankaccount whereallretentionmoneyshallbedeposited.Suchaccount,ifopened,shallbeoperated jointlybytheEmployerandtheContractor.Allinterestaccruingtothedepositedretention fundshallbeperiodicallyreleasedtotheContractoratthetimesagreedbetweentheparties andinsertedintheappendixtotheseconditions. 31

34.16 Theamountsretainedbyvirtueofsubclause34.12ofthisconditionshallbesubjecttothe followingrules; 34.16.1 heEmployer'sinterestinanyamountsoretainedshallbefiduciaryastrusteefor T theContractor(butwithoutobligationtoinvest)andtheContractor'sbeneficial interestthereinshallbesubjectonlytotherightoftheEmployertohaverecourse theretofromtimetotimeforpaymentofanyamountwhichheisentitledunderthe provisionsofthiscontracttodeductfromanysumdueortobecomeduetothe Contractor. 34.16.2 ntheissueofthecertificateofpracticalcompletion,theArchitectshallissuea O certificateforonehalfofthetotalamountthensoretainedandtheContractorshall, onpresentinganysuchcertificatetotheEmployer,beentitledtopaymentofthe saidamountwithinfourteendaysfrompresentation. 34.16.3 ntheexpirationofthedefectsliabilityperiodnamedintheappendixtothese O onditions,orontheissueofthecertificateofcompletionofrectificationofdefects, whicheveristhelater,theArchitectshallissueacertificateforthebalanceofthe amountthensoretainedandtheContractorshallbeentitledtopaymentofthesaid balancewithinfourteendaysfrompresentation. 34.17 ThemeasurementandvaluationoftheWorksshallbecompletedwithintheperiodoffinal measurementandvaluationstatedintheappendixtotheseconditionscalculatedfromthe dateofpracticalcompletion,andtheContractorshallbesuppliedwithacopyofthefinal accountnotlaterthantheendofthesaidperiodandbeforetheissueofthefinalcertificate undersubclause34.21ofthiscondition. 34.18 EitherbeforeorwithinareasonabletimeafterpracticalcompletionoftheWorks,the ContractorshallsendtotheQuantitySurveyoralldocumentsandcalculationsnecessaryfor thepurposesofthecomputationsrequiredbytheseconditionsincludingalldocuments relatingtotheaccountsofnominatedsubcontractorsandnominatedsuppliers.The QuantitySurveyormayrequesttheContractortosubmitfurtherdocumentsashemaydeem necessaryforthecomputationofthefinalaccount. 34.19 Inthesettlementofaccounts,theamountspaidorpayableundertheappropriatecontracts bytheContractortonominatedsubcontractorsornominatedsuppliers,theamountpaidor payablebyvirtueofclause17.0oftheseconditionsinrespectoffeesorchargesforwhicha provisionalsumisincludedinthecontractbills,theamountspaidorpayableinrespectof anyinsurancesmaintainedincompliancewithsubclause12.3oftheseconditions,the tenderprice(orsuchothersumasmaybeappropriateinaccordancewiththetermsofthe tender)foranyworkforwhichatendermadeundersubclause31.11oftheseconditionsis acceptedandthevalueofanyworkexecutedbytheContractorforwhichaprovisionalsum isincludedinthecontractbills,shallbesetagainsttherelevantprimecostsumor provisionalsumincludedinthecontractbillsorarisingunderArchitect'sinstructionsissued underclause30.1.4oftheseconditionsasthecasemaybe.Thebalance,afterallowinginall casesproratafortheContractor'sprofitattheratesshowninthecontractbills,shallbe addedtoordeductedfromthecontractprice.Providedthatnodeductionshallbemadein respectofanydamagespaidorallowedtotheContractorbyanysubcontractororsupplier. 32

34.20 ThefinalaccountshallbeagreedbetweentheQuantitySurveyor,theContractorandthe Architect.IftheContractordoesnotsignthefinalaccountwithinthirtydaysafterbeingso requestedtodo,theArchitectmayissuethefinalcertificatebasedonthefinalaccount preparedbytheQuantitySurveyor.ThefinalaccountshallbecopiedtotheEmployer. 34.21 SosoonastheQuantitySurveyorhaspreparedthefinalaccountbutbeforetheexpirationof sixtydaysfromtheendofthedefectsliabilityperiodstatedintheappendixtothese conditions,orfromcompletionofrectificationofdefectsunderclause41.6ofthese conditions,orfromreceiptbytheQuantitySurveyorofthedocumentsreferredtoin paragraph34.18ofthiscondition,whicheveristhelatest,theArchitectshallissuethefinal certificate. Thefinalcertificateshallstate; 34.21.1ThesumoftheamountscertifiedtotheContractorunderinterimcertificatesand theamountnamedinthesaidappendixaslimitofretentionfund,and 34.21.2 hecontractpriceadjustedasnecessaryinaccordancewiththetermsofthese T conditions,andasreflectedinthefinalaccount. 34.21.3 hedifference(ifany)betweenthetwosumsshallbeexpressedinthesaid T certificateasabalanceduetotheContractorfromtheEmployerortotheEmployer fromtheContractor,asthecasemaybe.Subjecttoanydeductionsauthorizedby theseconditions,thesaidbalanceasfromthefourteenthdayafterpresentationof thefinalcertificatebytheContractortotheEmployershallbeadebtpayablebythe EmployertotheContractororbytheContractortotheEmployer,asthecasemay be. 34.22 UnlessawrittenrequesttoconcurintheappointmentofanArbitratorshallhavebeengiven underclause45.0oftheseconditionsbyeitherpartybeforethefinalcertificatehasbeen issued,orwithinthirtydaysaftersuchissue,thesaidcertificateshallbeconclusiveevidence inanyproceedingsarisingoutofthiscontract(whetherbyarbitrationunderclause45.0of theseconditionsorotherwise)thattheWorkshavebeenproperlycarriedoutand completedinaccordancewiththetermsofthiscontractandthatanynecessaryeffecthas beengiventoallthetermsofthiscontractwhichrequireanadjustmenttobemadetothe contractprice,exceptandinsofarasanysummentionedinthesaidcertificateiserroneous byreasonof; 34.22.1 raud,dishonestyorfraudulentconcealmentrelatingtotheWorks,oranypart F thereof,ortoanymatterdealtwithinthesaidcertificate,or 34.22.2 nydefectincludinganyomissionintheWorksoranypartthereofwhich A reasonableinspectionorexaminationatanyreasonabletimeduringthecarryingout oftheWorksorbeforetheissueofthesaidcertificatewouldnothavedisclosed,or 34.22.3 nyaccidentalinclusionorexclusionofanywork,materials,goodsorfigureinany A computationoranyarithmeticalerrorinanycomputation. 34.23 Saveasaforesaid,nocertificateoftheArchitectshallofitselfbeconclusiveevidencethat anyWorks,materialsorgoodstowhichitrelatesareinaccordancewiththiscontract.

33

34.24 IftheArchitectshalldeleteorreduceanysuminthefinalcertificatewhichwaspreviously certifiedinrespectofworkdoneorgoodsandmaterialssuppliedorservicesrenderedbya nominatedsubcontractororsupplier,whichsumhasaheadbeenpaidbytheContractorto thenominatedsubcontractororsupplier,theEmployershallreimbursetheContractorthe amountofanysumsooverpaidtotheextentthattheContractorisunabletorecoverthe saidoverpayment. 34.25 TheEmployershallbeentitledtodeductfromorsetoffagainstanymoneyduefromhimto theContractorininterimcertificatesanysumorsumswhichtheContractorisliabletopay totheEmployerarisingunderorinconnectionwiththecontract. 34.26 Whereintheseconditionsitisprovidedthatanamountistobeaddedtoordeductedfrom thecontractprice,thenassoonassuchanamountisassessedinwholeorinpart,itshallbe reflectedinthenextpaymentcertificatefollowingsuchassessment. 34.27 AllcertificatestobeissuedbytheArchitectundertheseconditionsshallbeissuedtothe ContractorexceptthattheArchitectmayissueaspecialpaymentcertificatetoothersfor paymentbytheEmployerwheretheEmployer; 34.27.1 ngagesotherstoexecuteworkinaccordancewithsubclause22.2. E 34.27.2 lectstopaynominatedsubcontractorsornominatedsuppliersdirectin E accordancewithclauses31.7and32.4.4. 34.27.3 lectstopaydirectstatutoryandsimilarservicesprovidersinaccordancewith E clause17.2. 34.28 AnypenaltiesorfinesimposedontheContractorbytherelevantauthorityfordelayinithe paymentofValueAddedTaxandothertaxesleviedinthebuildingindustryarisingfroma delayinthehonouringofapaymentcertificateshallbereimbursedbtheEmployertothe Contractor. 35.0 FLUCTUATIONS 35.1 Thecontractpriceshallbedeemedtohavebeencalculatedtoincludealldutiesormaterials andgoodstobeincorporatedintothefinishedWorksunlessotherwisestatedinthe contract.Ifatanytimeduringtheperiodofthecontractthedutiesshallbevariedandthis shallaffectthecosttotheContractorofsuchmaterials,thentheQuantitySurveyorshall assessthenetdifferenceincostofsuchmaterials.Anyamountfromtimetotimeso assessedshallbeaddedtoordeductedfromthecontractprice,asthecasemaybe.For purposesofthisclause,'duties'shallincludeallcustomsandexcisecharges,tariffs,V.A.Tan, othertaxesanddutiesimposedbystatutoryorotherauthorityinthecountrywherethe Worksarebeingcarriedout. Thecontractpriceshallbedeemedtobebasedonexchangeratescurrentatthedateof tenderincalculatingthecosttotheContractorofmaterialstobespecificallyimported(by expressprovisionsinthecontractbillsorspecifications)forpermanentincorporationinthe works.Unlessotherwisestatedinthecontract,ifatanytimeduringtheperiodofthe contracttheexchangeratesshallbevariedandthisshallaffectthecosttotheContractorof suchmaterials,thentheQuantitySurveyorshallassessthenetdifferenceinthecostofsuch materials.Anyamountfromtimetotimesoassessedshallbeaddedtoordeductedfrom thecontractprice,asthecasemaybe. 34

35.2

35.3

Unlessotherwisestatedinthecontract,thecontractpriceshallbedeemedtohavebeen calculatedinthemannersetoutbelowandinsubclauses35.4and35.5andshallbesubject toadjustmentintheeventsspecifiedthereunder; 35.3.1 Thepricescontainedinthecontractbillsshallbedeemedtobebaseduponthe ratesofwagesandotheremolumentsandexpensesasdeterminedbytheJoint BuildingCouncilofKenya(J.B.C)andsetoutinthescheduleofbasicratesannexed tothecontractbills. 35.3.2 UponJ.B.C.determiningthatanyofthesaidratesorwagesorotherimolumentsand expensesareincreasedordecreased,thenthecontractpriceshallbeincreasedor decreasedbytheamountassesedbytheQuantitySurveyorbaseduponthe difference,expressedasapercentage,betweentheratesetoutintheannexed scheduleofbasicratesandtheratepublishedbytheJ.B.Candappliedtothe quantumoflabourincorporatedwithintheamountofworkremainingtobe executedatthedateofpublicationofsuchincreaseordecrease. 35.3.3 Noadjustmentshallbemadeinrespectofchangesintheratesofwagesandother emolumentsandexpenseswhichoccurafterthedateofpracticalcompletionexcept duringsuchotherperiodasmaybegrantedasanextensionoftimeunderclause 36.0ofthese,conditions.

35.4

Thepricescontainedinthecontractbillsshallbedeemedtobebaseduponthebasicprices ofmaterialstobepermanentlyincorporatedintheWorksasdeterminedbytheJ.B.Cand setoutinthescheduleofbasicratesannexedtothecontractbills. UpontheJ.B.Cdeterminingthatanyofthesaidbasicpricesareincreasedordecreasedthen thecontractpriceshallbeincreasedordecreasedbytheamounttobeassessedbythe QuantitySurveyorbaseduponthedifferencebetweenthepricesetoutinthescheduleof basicratesandtheratepublishedbytheJ.B.Candappliedtothequantumoftherelevant materialswhichhavenotbeentakenintoaccountinarrivingattheamountofanyinterim certificateunderclause34.0oftheseconditionsissuedbeforethedateofpublicationof suchincreaseordecrease. Noadjustmentshallbemadeinrespectofchangesinbasicpriceswhichoccurafterthe dateforpracticalcompletionexceptduringsuchotherperiodasmaybegrantedasan extensionoftimeunderclause36.0oftheseconditions. Theprovisionsofsubclauses35.1and35.2hereinshallnotapplyinrespectofanymaterials includedintheannexedscheduleofbasicrates. Theprovisionofsubclause35.3to35.5shallnotapplytonominatedsubcontractorsapnd nominatedsuppliersexceptinsofarasshallbespecificallyprovidedinanysubcontract agreement.

35.5

35.6

35.7

35.8

36.0

EXTENSIONOFTIME 36.1 UponitbecomingreasonablyapparentthattheprogressoftheWorksisdelayed,the ContractorshallforthwithgivewrittennoticeofthecauseofthedelaytotheArchitectwith supportingdetailsshowingtheextentofdelaycausedorlikelytobecaused.Thereafterthe ArchitectshallevaluatetheinformationsuppliedbytheContractorandifinhisopinionthe completionoftheWorksislikelytobeorhasbeendelayedbeyondthedateforpractical 35

completionstatedintheappendixtotheseconditionsorbeyondanyextendedtime previouslyfixedunderthisclause; 36.1.1 Byforcemajeure,or 36.1.2 Byreasonofanyexceptionallyadverseweatherconditions,or 36.1.3 Byreasonoflossordamageoccasionedbyanyoneormoreofthecontingencies referredtoinclauses13.0,14.0,or15.0oftheseconditions,or 36.1.4 Byreasonofcivilcommotion,strikeorlockoutaffectinganyofthetradesemployed upontheWorksoranyofthetradesengagedinthepreparation,manufactureor transportationofanyofthegoodsormaterialsrequiredfortheWorks,or 36.1.5 ByreasonofArchitect'sinstructionsissuedunderclauses22.0,28.1and30.0of theseconditions,or 36.1.6 ByreasonoftheContractornothavingreceivedinduetimenecessaryinstructions, drawings,detailsorlevelsfromtheArchitectforwhichhespecificallyappliedin writingonadatewhichhavingregardtothedateforpracticalcompletionstatedin theappendixtotheseconditionsortoanyextensionoftimethenfixedunderthis clausewasneitherunreasonablydistantfromnorunreasonablyclosetothedateon whichitwasnecessaryforhimtoreceivethesame,or 36.1.7 Bydelayonthepartofartists,tradesmenorothersengagedbytheEmployerin executingworknotformingpartofthiscontract,or 36.1.8 Byreasonofdelaybystatutoryorotherservicesprovidersorsimilarbodiesengaged directlybytheEmployer,or. 36.1.9 Byreasonoftheopeningupforinspectionofanyworkcovereduporofthetesting ifanyofthework,materialsorgoodsinaccordancewithsubclause23.6ofthese conditions(includingmaking.goodinconsequenceofsuchopeninguportesting), unlesstheinspectionortestshowedthatthework,materialsorgoodswerenotin accordancewiththiscontract,or 36.1.10 ytheContractor'sinabilityforreasonsbeyondhiscontrolandwhichhecouldnot B reasonablyhaveforeseenatthedateofthiscontract,toobtaindeliveryuponthe Worksofsuchgoodsormaterialsasareessentialtothepropercarryingoutofthe Works,or 36.1.11 yreasonofcarryingouttheWorkshavingbeensuspendedbytheContractorin B accordancewithclause29.0.,or 36.1.12 yreasonofdelayinappointingareplacementArchitect,QuantitySurveyoror B Engineers,or 36.1.13 yreasonofdelaycausedbythelatesupplyofgoodsormaterialsorinexecuting B workforwhichtheEmployerorhisagentsarecontractuallyobligedtosupplyorto executeasthecasemaybe,or

36

36.1.14Byreasonofdelaycausedbynominatedsubcontractorsornominatedsuppliers whichdelaytheContractorhastakenallreasonablemeasurestoavoidorreducethe effectsof,or 36.1.15 yreasonoftheContractor'sinability,forreasonsbeyondhiscontrol,tosecuresuch B skilledlabourandotherworkmenessentialtothepropercarryingoutoftheWorks, or 36.1.16 ydelayarisingfromthenominationorrenominationofasubcontractoror B supplier,or 36.1.17 ydelayinreceivingpossessionoforaccesstothesite. B 36.2 ThentheArchitectshallsosoonasheisabletoestimatethelengthofthedelaybeyondthe dateortimeaforesaid,butinanycasenotlaterthanthirtydaysafterreceivingan applicationforextensionoftimeinthemannerprescribed,makeinwritingafairand reasonableextensionoftimeforthecompletionoftheWorks. Providedalwaysthatshouldacauseofdelaybeofcontinuingeffect,theArchitectshall makeaninterimdecisionwithinthesaidthirtydaysandafinaldecisionmadewithinthirty daysoftheendofthecauseofdelay.

36.3

36.4T TheContractorshalluseconstantlyhisbestendeavorstopreventdelayandshalldoallthat mayreasonablyberequiredofhimtothesatisfactionoftheArchitecttoproceedwiththe Works. 36.5 IftheArchitect'sdecisiononextensionoftimeisnotcommunicatedtotheContractorwithin thesaidthirtydays,andnojustifiablegroundsaregivenforthefailuretoact,thetime appliedforbytheContractorshallbedeemedtohavebeenacceptedbytheArchitectas beingafairextensionoftimeforthecompletionoftheWorks.Suchadecisionshalltake effectnotearlierthanfourteendaysaftertheexpiryofthethirtydayperiod. IfbytheArchitect'sinstructionsthescopeoftheWorksisreducedandintheopinionofthe ArchitectthetimeforcompletionoftheWorkshasbeenorislikelytobereduced,the Architectshallassoonasheisabletoestimatethereductionintime,makeinwritingafair andreasonablereductiontothetimeforcompletionoftheWorks.Providedalwaysthat suchareductioninthetimeforcompletionoftheWorksshallbenotifiedtotheContractor withinthirtydaysfromthedateofissueofsuchArchitect'sinstructions. TheArchitectshallnotbeboundtoevaluatearequestforextensionoftimewhichis submittedmorethanthirtydaysaftertheeventslistedinsubclause36.1haveoccurred. Allapplicationsforextensionoftimeandalldecisiononthesameshallbecopiedtothe Employeratthetimeofapplicationordecision,asthecasemaybe.

36.6

36.7

36.8

37.0

LOSSANDEXPENSECAUSEDBYDISTURBANCEOFREGULARPROGRESSOFTHEWORKS 37.1 IfuponwrittenapplicationbeingmadetohimbytheContractortheArchitectisofthe

37

opinionthattheContractorhasbeeninvolvedindirectlossandorexpenseforwhichhe wouldnotbereimbursedbyapaymentmadeunderanyotherprovisioninthiscontractby reasonoftheregularprogressoftheWorksorofanypartthereofhavingbeenmaterially affectedby; 37.1.1 TheContractornothavingreceivedinduetimenecessaryinstructions,drawings, detailsorlevelsfromtheArchitectforwhichhespecificallyappliedinwriting,ona datewhichhavingregardtothedateforpracticalcompletionstatedintheappendix totheseconditionsortoanyextensionoftimethenfixedunderclause36.0ofthese conditionswasneitherunreasonablydistantfromnorunreasonablyclosetothe dateonwhichitwasnecessaryforhimtoreceivethesame,or 37.1.2 Theopeningupforinspectionofanyworkcovereduporthetestingofanywork, materialsorgoodsinaccordancewithclause23.0oftheseconditions(including makinggoodinconsequenceofsuchopeninguportesting),unlesstheinspectionor testshowedthatthework,materials,orgoodswerenotinaccordancewiththis contract,or 37.1.3 DelayinappointingareplacementArchitect,QuantitySurveyororEngineer,or 37.1.4 Anydiscrepancyinordivergenceintheseconditions,thecontractdrawings, specificationsandorthecontractbills,or 37.1.5 Delayonthepartofartists,tradesmenorothersengagedbytheEmployerin executingworknotformingpartofthiscontract;or 37.1.6 Delaybystatutoryorotherservicesprovidersorsimilarbodiesengageddirectlyby theEmployer,or 37.1.7 Architect'sinstructionissuedinregardtothepostponementofanyworktobe carriedoutundertheprovisionsofthiscontract,or 37.1.8 Delayarisingfromthenominationorrenominationofasubcontractororsupplier, or 37.1.9 TheContractorsuspendingthecarryingoutoftheWorksinaccordancewithclause 29.0oftheseconditions,exceptundersubclause29.1.3.,or 37.1.10 elaycausedbythelatesupplyofgoodsormaterialsorinexecutingworkforwhich D theEmployerorhisagentsarecontractuallyobligedtosupplyortoexecuteasthe casemaybe,or 37.1.11 elayinreceivingpossessionoforaccesstothesite. D 37.2 Andifthewrittenapplicationisaccompaniedbydetailedparticularsoftheclaimanditis madewithintheperiodstatedinsubclause37.4hereinuponitbecomingapparentthatthe progressoftheWorksorofanypartthereofhasbeenaffectedasaforesaid,thenthe QuantitySurveyorshallassoonaspracticableassesstheamountofsuchlossandor expense.Anyamountfromtimetotimesoassessedshallbeaddedtothecontractprice, andifaninterimcertificateisissuedafterthedateofassessment,anysuchamountshallbe addedtotheamountwhichwouldotherwisebestatedasdueinsuchacertificate.

38

37.3

Uponthehappeningofanyoftheeventslistedatsubclause37.1.1to37.1.11,the Contractorshallmaintainsuchrecordsasmaybenecessarytosupportanyclaimhemay, wishtomake.TheQuantitySurveyormayrequestanyfurtherinformationashemaydeem necessaryforafairandjustassessmentoftheclaim. TheContractorshallgivewrittennoticetotheArchitectofhisintentiontomakeaclaim withinthirtydaysaftertheeventgivingrisetotheclaimhasfirstarisen.Theclaimshallbe submittedwithinthirtydaysthereafter. Providedalwaysthatshouldtheeventgivingrisetotheclaimbeofcontinuingeffect,the Contractorshallsubmitaninterimclaimwithinthesaidthirtydaysandafinalclaimwithin thirtydaysoftheendoftheeventgivingrisetotheclaim. IftheContractorfailstocomplywithanyoftheprovisionsofthisclauseinrespectofany claimheseekstomake,hisentitlementtopaymentinrespectthereofshallnotexceedsuch amountastheQuantitySurveyororanyArbitratorappointedunderclause45.0shall considertobeverifiedbycontemporaryrecordssubmittedatthetimetheeventoccurred.

37.4

37.5

37.6

37.7 AllapplicationsforthereimbursementoflossandorexpensemadebytheContractor,and allassessmentsoflossandexpensemadebytheQuantitySurveyor,shallbecopiedtothe Employer. 38.0 TERMINATIONOFTHECONTRACTBYTHEEMPLOYER 38.1 WithoutprejudicetoanyotherrightsandremedieswhichtheEmployermaypossess,ifthe Contractorshallmakedefaultinanyoneormoreofthefollowingrespects,thatistosay, 38.1.1 IfhewithoutreasonablecausewhollysuspendsthecarryingoutoftheWorks beforecompletionthereof,foraperiodexceedingfourteendays,or 38.1.2 IfhefailstoproceedregularlyanddiligentlywiththeWorks,or 38.1.3 IfhefailstocommencetheWorkswithinthirtydaysofthedatefor commencement,or

38.1.4 ifherefusesorpersistentlyneglectstocomplywithawrittennoticefromthe Architectrequiringhimtoremovedefectiveworkorimpropermaterialsorgoods, andbysuchrefusalorneglecttheWorksaremateriallyaffected,or 38.1.5 Ifhefailstocomplywiththeprovisionsofclause26.0and27.0oftheseconditions, or 38.1.6 IfdespitepreviousnoticesfromtheArchitectinwritinghepersistentlyorflagrantly neglectstocomplywithanyofhisobligationsunderthecontract, 38.2 ThentheArchitectmaygivetotheContractoranoticebyregisteredpostorrecorded deliveryspecifyingthedefault,andiftheContractoreithershallcontinuesuchdefaultfor fourteendaysafterreceiptofsuchnoticeorshallatanytimethereafterrepeatsuchdefault thentheEmployermaywithinfourteendaysaftersuchcontinuanceorrepetitionbynotice byregisteredpostorrecordeddelivery,forthwithterminatethecontract,providedthatsuch noticeshallnotbegivenunreasonablyorvexatiously.

39

38.3

IntheeventoftheContractorbecomingbankruptormakingacompositionarrangement withhiscreditorsorhavingawindingupordermadeor(exceptpurposesofreconstruction) aresolutionforvoluntarywindinguppassedorareceiverormanagerofhisbusinessor undertakingdulyappointedorpossessiontakenbyoronbehalfoftheholdersofany debenturessecuredbyafloatingchargeofanypropertycomprisedinorsubjecttothe floatingcharge,thenthe,contractshallautomaticallyterminatebutitmaybereinstatedand continuediftheEmployerandtheContractorhistrusteeinbankruptcy,receiveror manager,asthecasemaybe,shallsoagree. Intheeventofthecontractbeingterminatedasaforesaidandsolongasithasnotbeen reinstatedandcontinued,thefollowingshallbetherespectiverightsanddutiesofthe EmployerandtheContractor; 38.4.1 ThecarryingoutoftheWorksbytheContractorshallceaseforthwithandthe Contractorshallvacatethesitetherebyrelinquishingpossessionthereofthe responsibilityandcareofthesiteandtheWorksshallhenceforthpasstothe Employer. 38.4.2 Sosoonasitispracticable,theArchitectshallarrangeajointinspectionwiththe ContractorandtheQuantitySurveyorforthepurposeoftakingarecordofthework done,materialsandgoodsdeliveredonsite,thecontractorsequipment,and temporarybuildings. 38.4.3 TheQuantitySurveyorshall,withinareasonabletimeaftertheinspectionpreparea finalaccountforthatpartoftheWorkscarriedoutbytheContractorbythedateof terminationofthecontract.

38.4

38.5

TheEmployermayemployandpayotherpersonstocarryoutandcompletetheWorksand torectifyanydefectsandheortheymayenterupontheWorksandusealltemporary buildings,equipment,goodsandmaterialsintendedfor,deliveredtoandplacedonor adjacenttotheWorks,andmaypurchaseallmaterialsandgoodsnecessaryforthecarrying outandcompletionoftheWorks. TheContractorshall,ifsorequiredbytheEmployer,withinfourteendaysofthedateof termination,assigntotheEmployerwithoutpaymentthebenefitofanyagreementforthe supplyofmaterialsorgoodsandorfortheexecutionofanyworkforthepurposesofthis contract,butonthetermsthatasupplierorsubcontractorshallbeentitledtomakeany reasonableobjectiontoanyfurtherassignmentthereofbytheEmployer.Inanycase,the Employermaypayanysupplierorsubcontractorforanymaterialsorgoodsdeliveredor worksexecutedforthepurposeofthiscontract(whetherbeforeorafterthedateof termination)insofarasthecostthereofhasnotalreadybeenpaidbytheContractor.The Employer'srightsunderthissubclauseareinadditiontohisrightstopaynominatedsub contractorsasprovidedinsubclause31.7oftheseconditionsandpaymentsmadeunder thissubclausemaybedeductedfromanymoneydueortobecomeduetotheContractor. TheContractorshallasandwhenrequiredinwritingbytheArchitectsotodo(butnot before)removefromtheWorksanytemporarybuildings,equipment,goodsandmaterials belongingtoorhiredbyhim.Ifwithinthirtydaysafteranysuchrequirementhasbeen madetheContractorhasnotcompliedtherewith,thentheEmployermay(butwithoutbeing responsibleforanylossordamage)removeandanysuchpropertyoftheContractorholding theproceedslessallcostsincurredtothecreditoftheContractor. 40

38.6

38.7

38.8 TheContractorshallalloworpaytotheEmployerinthemannerhereinafterappearing,the amountofanydirectlossandordamagecausedtotheEmployerbythetermination.Until aftercompletionoftheWorksundersubclause38.5,theEmployershallnotbeboundby anyprovisionofthiscontracttomakeanyfurtherpaymentstotheContractor,butupon suchcompletionandtheverificationwithinareasonabletimeoftheaccountstherefor,the QuantitySurveyorshallassesstheamountofexpensesproperlyincurredbytheEmployer andtheamountofanydirectlossandordamagecausedtotheEmployerbythetermination and,ifsuchamountswhenaddedtothemoneypaidtotheContractorbeforethedateof terminationexceedthetotalamountwhichwouldhavebeenpayableonduecompletionin accordancewiththiscontract,thedifferenceshallbeadebtpayabletotheEmployerbythe Contractor.IfthesaidamountswhenaddedtothemoneypaidtotheContractorbeless thanthesaidtotalamount,thedifferenceshallbeadebtpayablebytheEmployertothe Contractor. 38.9 TheContractorshallnotberelievedofanyofhisobligationsandliabilitiesinregardtothat partoftheWorkscarriedoutbyhim.

39.0

TERMINATIONOFTHECONTRACTBYTHECONTRACTOR 39.1 WithoutprejudicetoanyotherrightsandremedieswhichtheContractormaypossess,if: 39.1.1 TheContractordoesnotreceiveapaymentcertificatewhichheappliedforin accordancewithclause34.1oftheseconditionswithinfourteendaysofthe applicationandthedefaultcontinuesforsixtydaysafterexpiryofthestatedperiod, or 39.1.2 TheEmployerdoesnotpaytotheContractortheamountdueonanycertificate withintheperiodforhonouringcertificatesnamedinclause34.5oftheseconditions andcontinuessuchdefaultforsixtydaysafterexpiryofthatperiod,or 39.1.3 TheEmployerinterfereswithorobstructstheissueofanycertificatedueunderthis contract,andcontinuessuchactforsixtydaysafteranoticeofdefaulthasbeen issuedbytheContractor,or 39.1.4 ThecarryingoutofthewholeorsubstantiallythewholeoftheuncompletedWorks (otherthantheexecutionofworkrequiredundersubclause41.6ofthese conditions)issuspendedforacontinuousperiodofsixtydaysbyreasonof 39.1.4.1 39.1.4.2 Delayinreceivingpossessionoforaccesstothesite,or Architect'sinstructionsissuedunderclauses22.0,28.1,or30.0of theseconditions,or TheContractornothavingreceivedinduetimenecessary instructions,drawings,detailsorlevelsfromtheArchitectforwhich hespecificallyappliedinwritingonadatewhichhavingregardto thedateforpracticalcompletionstatedintheappendixtothese conditions,ortoanyextensionoftimegrantedunderclause36.0of theseconditions,wasneitherunreasonablydistantfromnor unreasonablyclosetothedateonwhichitwasnecessaryforhimto receivethesame,or 41

39.1.4.3

39.1.4.4

DelayinappointingareplacementArchitect,QuantitySurveyoror Engineer,or Delayonthepartofartists,tradesmenorothersengagedbythe Employerinexecutingworksnotformingpartofthiscontract,or Delaybystatutoryorotherservicesprovidersorsimilarbodies engageddirectlybytheEmployer,or Delayduetotheopeningupforinspectionofanyworkcoveredup orthetestingofanyofthework,materialsorgoodsinaccordance withsubclause23.6oftheseconditions(includingmakinggoodin consequenceofsuchopeninguportesting),Unlesstheinspection ortestshowedthatthework,materialsorgoodswerenotin accordancewiththecontract,or TheContractorhavingsuspendedthecarryingoutoftheWorksin accordancewithclause29.0oftheseconditions,exceptundersub clause29.1.1,or Delayarisingfromthenominationorrenominationofasub contractororsupplier.

39.1.4.5

39.1.4.6

39.1.4.7

39.1.4.8

39.1.4.9

39.2

TheEmployerbecomesbankruptormakesacompositionorarrangementwithhiscreditors orhasawindingupordermadeor(exceptforthepurposesofreconstruction)aresolution forvoluntarywindinguppassedorareceiverormanagerofhisbusinessorundertakingis dulyappointedorpossessionistakenbyoronbehalfoftheholdersofanydebentures securedbyafloatingchargeofanypropertycomprisedinorsubjecttothefloatingcharge. ThentheContractormaygivetheEmployeranoticebyregisteredpostorrecordeddelivery withacopytotheArchitectspecifyingthedefaultandshouldthedefaultcontinuefor fourteendaysafterreceiptofsuchnotice,theContractormayforthwithterminatethe contract. Uponsuchtermination,thenwithoutprejudicetotheaccruedrightsorremediesofeither partyortoanyliabilitymentionedinclause11.0oftheseconditionswhichmayaccrue eitherbeforetheContractororanysubcontractorsshallhaveremovedtheirtemporary buildings,equipment,goodsormaterialsorbyreasonoftheirsoremovingthesame,the respectiverightsandliabilitiesoftheContractorandtheEmployershallbeasfollows,thatis tosay; 39.4.1 ThecarryingoutoftheWorksbytheContractorshallceaseforthwithandthe Contractorshallvacatethesitetherebyrelinquishingpossessionthereofandthe responsibilityandcareofthesiteandtheWorksshallhenceforthpasstothe Employer. 39.4.2 Sosoonasitispracticable,theArchitectshallarrangeajointinspectionwiththe ContractorandtheQuantitySurveyorforthepurposeoftakingarecordofthework done,materialsandgoodsdeliveredonsite. 39.4.3 Thereafter,theContractorshallwithallreasonabledispatchandinsuchmannerand withsuchprecautionsaswillpreventinjury,deathordamageinrespectofwhich 42

39.3

39.4

beforethedateofterminationhewasliabletoindemnifytheEmployerunderclause 11.0oftheseconditions,removefromthesiteallhistemporarybuildings, equipment,goodsandmaterialsandshallgivefacilitiestohissubcontractorstodo thesame,butsubjectalwaystotheprovisionsofsubclause39.5.4ofthiscondition. 39.5 Aftertakingintoaccountamountspreviouslypaidunderthiscontract,theContractorshall bepaidbytheEmployer; 39.5.1 Thetotalvalueofworkcompletedatthedateoftermination. 39.5.2 Thetotalvalueofworkbegunandexecutedbutnotcompletedatthedateof termination,thevaluebeingassessedinaccordancewithclause30.6ofthese conditionsasifsuchworkwereavariationrequiredbytheArchitect. 39.5.3 Anysumassessedinrespectofdirectlossandorexpenseunderclause37.0of theseconditions(whetherassessedbeforeorafterthedateoftermination). 39.5.4 ThecostofmaterialsorgoodsproperlyorderedfortheWorksforwhichthe ContractorshallhavepaidorforwhichtheContractorshallbelegallyboundtopay, andwhichhavebeenrecordedinaccordancewithsubclause39.4.2,andonsuch paymentbytheEmployer,anymaterialsorgoodssopaidforshallbecomethe propertyoftheEmployerandshallnotberemovedfromthesitewithoutthe authorityoftheEmployer. 39.5.5 Thereasonablecostofremovalundersubclause39.4.3 39.5.6 AnydirectlossandordamagecausedtotheContractorbythetermination. 40.0 TERMINATIONOFTHECONTRACTBYEITHERPARTY 40.1 IfduringtheprogressoftheWorkstheGovernmentandpeopleofthecountryinwhichthe siteislocatedshallbecomeengagedinwar,warlikeoperationsorhostilitiesorkindred activitieswhicheitherdirectlyorindirectlyinvolveorwouldinvolveeitherpartyinlossor expensebeyondthatprovidedforinorreasonablycontemplatedbythiscontract,thenthe contractmaybeterminatedbyeitherpartygivingtotheotherfourteendaysnoticeby registeredpostorrecordeddelivery.UponterminationtheContractorshallbepaidbythe Employerinrespectoftheworkcarriedoutbeforesuchterminationinaccordancewiththe provisionsofsubclauses39.5.1to39.5.5oftheseconditions. IntheeventoftheWorksoranypartthereoforanygoodsormaterialsbroughtonthesite foruseintheWorksbeingdestroyedordamagedbywar,warlikeoperationsorhostilitiesor kindredactivitiesasthecasemaybe,theContractorshallbeundernoliabilitywhatsoever torepair,reinstateormakegoodthedestructionordamagesocausedandshallbeentitled; 40.2.1 Tobepaidthefullvalueofallworkcarriedoutbeforesucheventandforall materialsonthesiteforuseintheworks(includingtheworkormaterialsso damagedordestroyed),and 40.2.2 Tobepaidforanyworkdoneandmaterialsorgoodssuppliedinthereinstatement ormakinggoodofanydestructionordamagesocauseduponsuchtermsasmaybe agreedbetweentheparties,andindefaultofagreement,uponthebasisofprime costplusareasonableprofittobeassessedbytheQuantitySurveyor. 43

40.2

40.3

Inthecaseofworksofalterations,repairsorextensions,iftheWorksaredamagedbyany ofthecontingenciesreferredtoinclause15.0andifitisjustandequitabletodoso,the contractmaywithinsixtydaysoftheoccurrenceofsuchlossordamagebeterminatedat theoptionofeitherpartyupongivingafourteendaysnoticebyregisteredpostorrecorded delivery.Withinfourteendaysofreceivingsuchanoticeeitherpartymaygivetotheothera writtenrequesttoconcurintheappointmentofanArbitratorunderclause45.0ofthese conditionsinorderthatitmaybedeterminedwhethersuchterminationwillbejustand equitable.UponthegivingorreceivingbytheEmployerofsuchanoticeofterminationor, whereareferencetoarbitrationismadeasaforesaid,upontheArbitratorupholdingthe noticeoftermination,theprovisionsofsubclause39.5.1to39.5.5oftheseconditionsshall apply. IfthecarryingoutofthewholeorsubstantiallythewholeoftheuncompletedWorks(other thantheexecutionofworkrequiredundersubclause41.6oftheseconditions)issuspended foracontinuousperiodofsixtydaysbyreasonof 40.4.1 Forcemajeure,or 40.4.2 Lossordamageoccasionedbyanyoneormoreofthecontingenciesreferredtoin clauses13.0and14.0oftheseconditions(ifapplicable),or 40.4.3 Lossordamagearisingfromnuclearactivity,

40.4

40.5

Theneitherpartymay,upongivingafourteendaysnoticebyregisteredpostorrecorded delivery,terminatethecontract,providedthatsuchnoticeshallnotbegivenunreasonably orvexatiously.Uponsuchtermination,theContractorshallbepaidbytheEmployerin respectoftheworkexecutedbeforesuchterminationinaccordancewiththeprovisionsof clause39.5.1to39.5.5.

41.0

PRACTICALCOMPLETIONANDDEFECTSLIABILITY 41.1 WhenintheopinionoftheContractorthewholeoftheWorksarepracticallycomplete,he shallgiveanoticeinwritingtotheArchitecttothateffect.Thenoticeshallbeaccompanied byanundertakingtocompleteanyoutstandingworkwithinreasonabletimeorwithinsuch timeastheArchitectmaydirect. Withinfourteendaysoftheissueofsuchnotice,theArchitectshallinspecttheWorksandif inhisopiniontheWorksarepracticallycomplete,heshallissuethecertificateofpractical completion,andthedefectsliabilityperiodshallbedeemedtocommenceonthedateof issueofthesaidcertificate.IftheWorksarenotpracticallycomplete,heshallspecifyin writingtotheContractortheworkwhichinhisopinionrequirestocompletedbeforethe certificatecanbeissued. TheContractorshallretainpossessionofthesiteoftheWorksuptoandincludingthedate ofissueofthecertificateofpracticalcompletionandsubjecttoclause42hereof,the EmployershallnotbeentitledtotakepossessionofanypartorpartsoftheWorksuntilthat date. UpontheEmployertakingpossessionofthewholeoranypartoftheWork(hereinafter referredtoastherelevantpart),therelevantpartoftheWorkstakenovershallbeatthe soleriskoftheEmployerineveryrespectasfromthedateofsuchtakingover. 44

41.2

41.3

41.4

41.5 ShouldtheEmployertakeoverthewholeoranypartoftheWorksbeforetheissueofa certificateofpracticalcompletion,practicalcompletionshallbedeemedtohavetakenplace onthedateoftakingoverofthewholeoranypartoftheWorks. 41.6 Anydefects,shrinkagesorotherfaultswhichshallappearwithinthedefectsliabilityperiod statedintheappendixtotheseconditions,andwhichareduetomaterialsorworkmanship notbeinginaccordancewiththecontractshallbespecifiedbytheArchitectinascheduleof defectswhichheshalldelivertotheContractornotlaterthanthirtydaysaftertheexpiration ofthesaiddefectsliabilityperiod.Withinareasonabletimeafterreceiptofsuchschedule, thedefects,shrinkagesandotherfaultsthereinspecifiedshallberectifiedbytheContractor and(unlesstheArchitectshallotherwiseinstruct,)entirelyathisowncost.IftheArchitectso instructs,thenanappropriatedeductionshallbeassessedbytheQuantitySurveyorand madetothecontractpriceinrespectofanysuchdefects,shrinkagesorotherfaultsnot rectified. Notwithstandingtheprovisionsofsubclause41.6ofthiscondition,theArchitectmay wheneverheconsidersitnecessarytodoso,issueinstructionsrequiringanydefect, shrinkageorotherfaultwhichshallappearwithinthedefectsliabilityperiodnamedinthe appendixtotheseconditionsandwhichisduetomaterialsorworkmanshipbeingnotin accordancewiththiscontracttoberectifiedandtheContractorshallwithinareasonable timeafterreceiptofsuchinstructions,complywiththesameand(unlesstheArchitectshall otherwiseinstruct,inwhichcasethecontractpriceshallbeadjustedaccordingly),entirelyat hisowncost.Providedthatnosuchinstructionsshallbeissuedafterdeliveryofaschedule ofdefectsorafterthirtydaysfromtheexpirationofthesaiddefectsliabilityperiod. Notwithstandingtheprovisionsofsubclause30.10andsubclause41.6herein,where defectsshrinkagesorotherfaultsshalloccurduringtheperiodofrectificationofdefects whicharenotduetomaterialsorworkmanshipnotbeinginaccordancewiththecontract, theArchitectmayinstructtheirrectification.Suchinstructionshallbetreatedasavariation andshallbevaluedinaccordancewithsubclause30.6oftheseconditions. WhenintheopinionoftheArchitectanydefects,shrinkagesorotherdefaultswhichhemay haverequiredtoberectifiedundersubclause41.6ofthisconditionshallhavebeen rectifiedheshallissueacertificatetothateffect,andcompletionofrectificationofdefects shallbedeemedforallthepurposesofthiscontracttohavetakenplaceonthedaynamed insuchcertificate

41.7

41.8

41.9

42.0 SECTIONALCOMPLETION 42.1 IfatanytimeortimesbeforepracticalcompletionoftheWorkstheEmployerwiththe consentoftheContractor,shalltakepossessionofanypartorpartsofthesame(anysuch partbeinghereinafterinthisclausereferredtoas'therelevantpart')thennotwithstanding anythingexpressedorimpliedelsewhereinthiscontract, WithinfourteendaysfromthedateonwhichtheEmployershallhavetakenpossessionof therelevantpart,theQuantitySurveyorshallprepareavaluationstatinghisestimateofthe approximatetotalvalueofthesaidpart.TheArchitectshallthereafterissueacertificatefor therelevantpartandforallpurposesofthiscondition(butfornoother)thevaluestatedin thecertificateshallbedeemedtobethetotalvalueofthesaidpart. 45

42.2

42.3

Forthepurposesofsubclauses41.2,41.6and41.7oftheseconditions,practical completionoftherelevantpartshallbedeemedtohaveoccurredandthedefectsliability periodinrespectoftherelevantpartshallbedeemedtohavecommencedonthedateon whichtheEmployershallhavetakenpossessionthereof. WhenintheopinionoftheArchitectanydefects,shrinkagesorotherfaultsintherelevant partwhichhemayhaverequiredtoberectifiedundersubclause41.6and41.7ofthese conditionsshallhavebeenrectifiedheshallissueacertificatetothateffect. TheContractorshallreducethevalueinsuredundersubclause13.1oftheseconditions(if applicable)bythefullvalueoftherelevantpart,andthesaidrelevantpartshallasfromthe dateonwhichtheEmployershallhavetakenpossessionthereof,beatthesoleriskofthe Employerasregardsanyofthecontingenciesreferredtointhesaidsubclause. InlieuofanysumtobepaidorallowedbytheContractorunderclause43.0ofthese conditionsinrespectofanyperiodduringwhichtheWorksmayremainincomplete occurringafterthedateonwhichtheEmployershallhavetakenpossessionoftherelevant part,thereshallbepaidorallowedsuchsumasbearsthesameratiotothesumwhich wouldbepaidorallowedapartfromtheprovisionsofthiscondition,asdoesthecontract pricelessthetotalvalueofthesaidrelevantparttothecontractprice. WithinthirtydaysofthedateonwhichtheEmployershallhavetakenpossessionofthe relevantpart,thereshallbepaidtotheContractorfromthesumsthenretainedunder clause34.0oftheseconditions(ifany),onehalfofsuchamountasbearsthesameratioof theunreducedamountnamedintheappendixtotheseconditionsaslimitofretentionfund asdoesthetotalvalueofthesaidrelevantparttothecontractprice,andtheamountnamed intheappendixtotheseconditionsaslimitofretentionfundshallbereducedbythe amountsopaidtotheContractor. Ontheexpirationofthedefectsliabilityperiodnamedintheappendixtotheseconditionsin respectoftherelevantpart,orontheissueofthecertificateofcompletionofrectificationof defectsinrespectoftherelevantpart,whicheveristhelater,thereshallbepaidtothe Contractorfromthesumsthenretainedundersubclause34.12oftheseconditions(ifany), thebalanceoftheamountreferredtoinsubclause42.7andtheamountnamedinthe appendixtotheseconditionsaslimitofretentionfundshallbereducedbytheamountof suchpayment.

42.4

42.5

42.6

42.7

42.8

43.0

DAMAGESFORDELAYINCOMPLETION 43.1 IftheContractorfailstocompletetheWorksbythedateforpracticalcompletionstatedin theappendixtotheseconditions,orwithinanyextendedtimefixedunderclause36.0of theseconditions,andtheArchitectcertifiesinwritingthatinhisopinionthesameought reasonablysotohavebeencompleted,thentheContractorshallpayorallowtothe Employerasumcalculatedattheratestatedinthesaidappendixasliquidateddamagesfor theperiodduringwhichtheWorksshallsoremainorhaveremainedincomplete,andthe EmployermaydeductsuchsumfromanymoneydueortobecomeduetotheContractor underthecontractorrecoverthesamefromtheContractorasadebt.

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 43.2 ThepaymentordeductionofsuchdamagesshallnotrelievetheContractorfromhis obligationstocompletetheWorksoranypartthereoforfromanyotherobligationsand liabilitiesunderthecontract.

44.0

ANTIQUITIESANDOTHEROBJECTSOFVALUE 44.1 Allfossils,antiquitiesandotherobjectsofinterestorvaluewhichmaybefoundonthesite orinexcavatingthesameduringtheprogressofthework,shallbecomethepropertyofthe Employer.TheContractorshallcarefullytakeoutandpreserveallsuchobjectsandshall immediatelyorassoonasconvenientafterthediscoveryofsucharticles,deliverthesame intothepossessionoftheArchitectoroftheClerkofWorksuncleanedandasexcavated. IfintheopinionoftheArchitect,compliancewiththeprovisionsofthepreceedingsub clausehasinvolvedtheContractorindirectlossandorexpenseforwhichhewouldnotbe reimbursedbyapaymentmadeunderanyotherprovisioninthiscontract,thenthe QuantitySurveyorshallassesstheamountofsuchlossandorexpense.Anyamountfrom timetotimesoassessedshallbeaddedtothecontract:price,andifaninterimcertificateis issuedafterthedateofassessment,anysuchamountshallbeaddedtotheamountwhich wouldotherwisebestatedasdueinsuchacertificate.

44.2

45.0

SETTLEMENTOFDISPUTES 45.1 IncaseanydisputeordifferenceshallarisebetweentheEmployerortheArchitectonhis behalfandtheContractor,eitherduringtheprogressorafterthecompletionor abandonmentoftheWorks,suchdisputeshallbenotifiedinwritingbyeitherpartytothe otherwitharequesttosubmitittoarbitrationandtoconcurintheappointmentofan Arbitratorwithinthirtydaysofthenotice.Thedisputeshallbereferredtothearbitration andfinaldecisionofapersontobeagreedbetweentheparties.Failingagreementtoconcur intheappointmentofanArbitrator,theArbitratorshallbeappointedbytheChairmanor ViceChairmanoftheTheArchitecturalAssociation'ofKenya,ontherequestoftheapplying party. Thearbitrationmaybeontheconstructionofthiscontractoronanymatterorthingof whatsoevernaturearisingthereunderorinconnectiontherewith,includinganymatteror thingleftbythiscontracttothediscretionoftheArchitect,orthewithholdingbythe ArchitectofanycertificatetowhichtheContractormayclaimtobeentitledorthe measurementandvaluationreferredtoinclause34.0oftheseconditions,ortherightsand liabilitiesofthepartiessubsequenttotheterminationofcontract. Providedthatnoarbitrationproceedingsshallbecommencedonanydisputeordifference wherenoticeofadisputeordifferencehasnotbeengivenbytheapplyingpartywithin ninetydaysoftheoccurrenceordiscoveryofthematterorissuegivingrisetothedispute. Notwithstandingtheissueofanoticeasstatedabove,thearbitrationofsuchadisputeor differenceshallnotcommenceunlessanattempthasinthefirstinstancebeenmadebythe partiestosettlesuchdisputeordifferenceamicablywithorwithouttheassistanceofthird parties. 47

45.2

45.3

45.4

45.5

Inanyevent,noarbitrationshallcommenceearlierthanninetydaysaftertheserviceofthe noticeofadisputeordifference. Notwithstandinganythingstatedhereinthefollowingmattersmaybereferredtoarbitration beforethepracticalcompletionoftheWorksorabandonmentoftheWorksortermination ofthecontractbyeitherparty: 45.6.1 TheappointmentofareplacementArchitect,QuantitySurveyororEngineerupon thesaidpersonsceasingtoact: 45.6.2 WhetherornottheissueofaninstructionbytheArchitectisempoweredbythese conditions. 45.6.3 Whetherornotacertificatehasbeenimproperlywithheldorisnotinaccordance withtheseconditions. 45.6.4 Anydisputeordifferencearisinginrespectofwarrisksorwardamage.

45.6

45.7

Allothermattersindisputeshallonlybereferredtoarbitrationafterthepractical completionorallegedpracticalcompletionoftheWorks,ofabandonmentoftheWorks,or terminationorallegedterminationofthecontract,unlesstheEmployerandtheContractor agreeotherwiseinwriting. TheArbitratorshall,withoutprejudicetothegeneralityofhispowers,havepowerstodirect suchmeasurements,computations,testsorvaluationsasmayinhisopinionbedesirablein ordertodeterminetherightsofthepartiesandassessandawardanysumswhichoughtto havebeenthesubjectoforincludedinanycertificate. TheArbitratorshall,withoutprejudicetothegeneralityofhispowers,havepowerstoopen up,reviewandreviseanycertificate,opinion,decision,requirementornoticeandto determineallmattersindisputewhichshallbesubmittedtohiminthesamemannerasif nosuchcertificate,opinion,decision,requirementornoticehadbeengiven.

45.8

45.9

45.10 TheawardofsuchArbitratorshallbefinalandbindingupontheparties

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APPENDIX

Clause 13.0 16.1.. 16.1 16.2 16.2 18.1 20.1.. 20.2. 20.2.. 20.2

Percentagetocoverprofessionalfeesforinsurancepurposesonly NameofContractor'ssurety Amountofsurety

NameofEmployer'ssurety Amountofsurety

Periodforsubmissionofprogramme Periodforpossessionofsite Contractperiod

DateforcommencementofWorks Dateforpracticalcompletion

Nameofthebankforpurposesofinterestcalculation. Intervalforapplicationofpaymentcertificates Minimumamountofpaymentcertificate Percentageofcertifiedvalueretained Limitofretentionfund

31.14,32.4.5,34.6.. 34.1.. 34.4 34.12. 34.12. 34.15. 34.17. 41.6 43.1attherateofKshs .. ..

PeriodsforreleaseofinterestonretentionmoneytoContractor Periodoffinalmeasurementandvaluation Defectsliabilityperiod

Damagesfordelayincompletion

Signedbythesaid: .. EMPLOYER . CONTRACTOR

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 CONTRACTOR'SPERFORMANCEBOND BYTHISAGREEMENT,we........................................................................................................................(SURETY) of........................................................................................................................................................................... areboundto.....................................................................................................................................(EMPLOYER) inthesumofKenyaShillings............................................................................................................................... ............................................................................................................................(Ksh..........................................) tobepaidbyustothesaid................................................................................................................(EMPLOYER) WHEREASbyanagreementinwritingdated...................................................................................................... ......................................................................................................................................................(CONTRACTOR) enteredintocontractwith...............................................................................................................(EMPLOYER) tocarryoutandcompletetheworksthereinstatedinthemannerandbythetimethereinspecifiedallin accordancewiththeprovisionsofthesaidcontract,namely;(descriptionofWorks) NOWtheconditionoftheabovewrittenbondissuchthatifthesaidContractorhisexecutors, administrators,successorsorassignsshalldulyperformhisobligationsunderthecontract,orifondefaultby theContractortheSuretyshallsatisfyanddischargethedamagessustainedbytheEmployertherebyupto theamountoftheabovewrittenbond,thenthisbondshallbevoid,otherwiseitshallremaininfullforce andeffect.Upondefault,andwithoutprejudicetohisotherrightsunderthecontract,theEmployershallbe entitledtodemandforfeitureofthebondandweundertaketohonourthedemandintheamountstated above. PROVIDEDalwaysanditisherebyagreedanddeclaredthatnoalterationinthetermsofthesaidcontractor intheextentornatureoftheworkstobecarriedoutandnoextensionoftimebytheArchitectunderthe contractshallinanywayreleasetheSuretyfromanyliabilityundertheabovewrittenbond. INWITNESSwhereofwehavesetourhandsthis.................................dayof..................................................... .. Surety . Witness

AuthorisedbyPowerofAttorneyNo...

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EMPLOYER'SPAYMENTBOND BYTHISAGREEMENT,we.......................................................................................................................(SURETY) of............................................................................................................................................................................ areboundto................................................................................................................................(CONTRACTOR) inthesumofKenyaShillings................................................................................................................................ ...............................................................................................................................(Ksh........................................) tobepaidbyustobesaid...........................................................................................................(CONTRACTOR) WHEREASbyanagreementinwritingdated....................................................................................................... ......................................................................................................................................................(CONTRACTOR) enteredintocontractwith...............................................................................................................(EMPLOYER) tocarryoutandcompletetheworksthereinstatedinthemannerandbythetimethereinspecifiedallin accordancewiththeprovisionsofthesaidcontract,namely;(descriptionofWorks). NOWtheconditionoftheabovewrittenbondissuchthatifthesaidEmployerhisexecutors,administrators, successorsorassignsshalldulyperformhispaymentobligationsunderthecontractthenthisbondshallbe void,otherwiseitshallremaininfullforceandeffect.Thatistosay,shouldtheContractorterminatethe contractunderclause39.1.1.,39.1.2or39.1.3ofthecontractorshouldthefinalcertificateremainunpaid beyondtheperiodstatedinclause34.21.3,thenwithoutprejudicetohisotherrightsunderthecontract,the Contractorshallbeentitledtodemandforfeitureofthebondandweundertaketohonourthedemandin theamountstatedabove. PROVIDEDalwaysanditisherebyagreedanddeclaredthatnoalterationinthetermsofthesaidcontractor intheextentornatureoftheworkstobecarriedoutandnoextensionoftimebytheArchitectunderthe contractshallinanywayreleasetheSuretyfromanyliabilityundertheabovewrittenbond. INWITNESSwhereofwehavesetourhandsthis.....................................dayof.................................................. . Surety AuthorisedbyPowerofAttorneyNo... . Witness

51