FIDIC Construction Contract 1st Edition 1999
Conditions of Contractfor CONSTRUCTIONFOR BUILDING AND ENGINEERING WORKSDESIGNED BY THE EMPLOYERGeneral ConditionsMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILSINTERNATIONAL FEDERATION OF CONSULTING ENGINEERSINTERNATIONALE VEREINIGUNG BERATENDER INGENIEUREFEDERACION INTERNACIONAL DE INGENIEROS CONSOLTORES
ERRATA to the First Edition 1999 . . . . . . . . . . . . . . . . . inside back coverGeneral ConditionsCONTENTSMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . finitionsInterpretationCommunicationsLaw and LanguagePriority of DocumentsContract AgreementAssignmentCare and Supply of DocumentsDelayed Drawings or InstructionsEmployer’s Use of Contractor’s DocumentsContractor’s Use of Employer’s DocumentsConfidential DetailsCompliance with LawsJoint and Several Liability2THE EMPLOYER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.12.22.32.42.5Right of Access to the SitePermits, Licences or ApprovalsEmployer’s PersonnelEmployer’s Financial ArrangementsEmployer’s Claims3THE ENGINEER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.13.23.33.43.5Engineer’s Duties and AuthorityDelegation by the EngineerInstructions of the EngineerReplacement of the EngineerDeterminations4THE CONTRACTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.14.24.34.44.5Contractor’s General ObligationsPerformance SecurityContractor’s RepresentativeSubcontractorsAssignment of Benefit of Subcontracti
MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL g OutSafety ProceduresQuality AssuranceSite DataSufficiency of the Accepted Contract AmountUnforeseeable Physical ConditionsRights of Way and FacilitiesAvoidance of InterferenceAccess RouteTransport of GoodsContractor’s EquipmentProtection of the EnvironmentElectricity, Water and GasEmployer’s Equipment and Free-Issue MaterialProgress ReportsSecurity of the SiteContractor’s Operations on SiteFossils5NOMINATED SUBCONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215.15.25.35.4Definition of “nominated Subcontractor”Objection to NominationPayments to nominated SubcontractorsEvidence of Payments6STAFF AND LABOUR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226.16.26.36.46.56.66.76.86.96.106.11Engagement of Staff and LabourRates of Wages and Conditions of LabourPersons in the Service of EmployerLabour LawsWorking HoursFacilities for Staff and LabourHealth and SafetyContractor’s SuperintendenceContractor’s PersonnelRecords of Contractor’s Personnel and EquipmentDisorderly Conduct7PLANT, MATERIALS AND WORKMANSHIP . . . . . . . . . . . . . . . . . . . . . 237.17.27.37.47.57.67.77.8Manner of ExecutionSamplesInspectionTestingRejectionRemedial WorkOwnership of Plant and MaterialsRoyalties8COMMENCEMENT, DELAYS AND SUSPENSION . . . . . . . . . . . . . . . . . 268.18.2Commencement of WorksTime for Completion
MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL Extension of Time for CompletionDelays Caused by AuthoritiesRate of ProgressDelay DamagesSuspension of WorkConsequences of SuspensionPayment for Plant and Materials in Event of SuspensionProlonged SuspensionResumption of Work9TESTS ON COMPLETION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299.19.29.39.4Contractor’s ObligationsDelayed TestsRetestingFailure to Pass Tests on Completion10EMPLOYER’S TAKING OVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3010.110.210.310.4Taking Over of the Works and SectionsTaking Over of Parts of the WorksInterference with Tests on CompletionSurfaces Requiring Reinstatement11DEFECTS LIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . mpletion of Outstanding Work and Remedying DefectsCost of Remedying DefectsExtension of Defects Notification PeriodFailure to Remedy DefectsRemoval of Defective WorkFurther TestsRight of AccessContractor to SearchPerformance CertificateUnfulfilled ObligationsClearance of Site12MEASUREMENT AND EVALUATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 3512.112.212.312.4Works to be MeasuredMethod of MeasurementEvaluationOmissions13VARIATIONS AND ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3613.113.213.313.413.513.613.713.8Right to VaryValue EngineeringVariation ProcedurePayment in Applicable CurrenciesProvisional SumsDayworkAdjustments for Changes in LegislationAdjustments for Changes in Costiii
MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009iv14CONTRACT PRICE AND PAYMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . .1214.1314.1414.15The Contract PriceAdvance PaymentApplication for Interim Payment CertificatesSchedule of PaymentsPlant and Materials intended for the WorksIssue of Interim Payment CertificatesPaymentDelayed PaymentPayment of Retention MoneyStatement at CompletionApplication for Final Payment CertificateDischargeIssue of Final Payment CertificateCessation of Employer’s LiabilityCurrencies of Payment15TERMINATION BY EMPLOYER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4715.115.215.315.415.5Notice to CorrectTermination by EmployerValuation at Date of TerminationPayment after TerminationEmployer’s Entitlement to Termination16SUSPENSION AND TERMINATION BY CONTRACTOR . . . . . . . . . . . . 4916.116.216.316.4Contractor’s Entitlement to Suspend WorkTermination by ContractorCessation of Work and Removal of Contractor’s EquipmentPayment on Termination17RISK AND RESPONSIBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s Care of the WorksEmployer’s RisksConsequences of Employer’s RisksIntellectual and Industrial Property RightsLimitation of Liability18INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5318.118.218.318.4General Requirements for InsurancesInsurance for Works and Contractor’s EquipmentInsurance against Injury to Persons and Damage to PropertyInsurance for Contractor’s Personnel19FORCE MAJEURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5619.119.219.319.419.5Definition of Force MajeureNotice of Force MajeureDuty to Minimise DelayConsequences of Force MajeureForce Majeure Affecting Subcontractor
19.6 Optional Termination, Payment and Release19.7 Release from Performance under the Law20CLAIMS, DISPUTES AND ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . 5820.120.220.320.420.520.620.720.8Contractor’s ClaimsAppointment of the Dispute Adjudication BoardFailure to Agree Dispute Adjudication BoardObtaining Dispute Adjudication Board’s DecisionAmicable SettlementArbitrationFailure to Comply with Dispute Adjudication Board’s DecisionExpiry of Dispute Adjudication Board’s AppointmentAPPENDIXGENERAL CONDITIONS OF DISPUTE ADJUDICATION AGREEMENT . . . . . 63INDEX OF SUB-CLAUSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009v
Definitions listed alphabeticallyMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009vi1.1.4.1Accepted Contract Amount1.1.4.7Interim Payment Certificate1.1.1.9Appendix to Tender1.1.6.5Laws1.1.3.1Base Date1.1.1.3Letter of Acceptance1.1.1.10Bill of Quantities1.1.1.4Letter of Tender1.1.3.2Commencement Date1.1.4.8Local ract Agreement1.1.2.1Party1.1.4.2Contract Price1.1.4.9Payment Certificate1.1.2.3Contractor1.1.3.8Performance Certificate1.1.6.1Contractor’s Documents1.1.6.6Performance Security1.1.5.1Contractor’s Equipment1.1.5.4Permanent Works1.1.2.7Contractor’s Personnel1.1.5.5Plant1.1.2.5Contractor’s Representative1.1.4.10Provisional Sum1.1.4.3Cost1.1.4.11Retention .6Section1.1.3.9day1.1.6.7Site1.1.1.10Daywork Schedule1.1.1.5Specification1.1.3.7Defects Notification ntractor1.1.2.2Employer1.1.3.5Taking-Over Certificate1.1.6.3Employer’s Equipment1.1.5.7Temporary Works1.1.2.6Employer’s Personnel1.1.1.8Tender1.1.2.4Engineer1.1.3.6Tests after Completion1.1.2.10FIDIC1.1.3.4Tests on Completion1.1.4.4Final Payment Certificate1.1.3.3Time for Completion1.1.4.5Final Statement1.1.6.8Unforeseeable1.1.6.4Force Majeure1.1.6.9Variation1.1.4.6Foreign Currency1.1.5.8Works1.1.5.2Goods1.1.3.9year
General Conditions1General Provisions1.1Definitions1.1.1The ContractIn the Conditions of Contract (“these Conditions”), which include Particular Conditionsand these General Conditions, the following words and expressions shall have themeanings stated. Words indicating persons or parties include corporations and otherlegal entities, except where the context requires otherwise.MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091.1.1.1“Contract” means the Contract Agreement, the Letter of Acceptance, theLetter of Tender, these Conditions, the Specification, the Drawings, theSchedules, and the further documents (if any) which are listed in theContract Agreement or in the Letter of Acceptance.1.1.1.2“Contract Agreement” means the contract agreement (if any) referred to inSub-Clause 1.6 [Contract Agreement].1.1.1.3“Letter of Acceptance” means the letter of formal acceptance, signed bythe Employer, of the Letter of Tender, including any annexed memorandacomprising agreements between and signed by both Parties. If there is nosuch letter of acceptance, the expression “Letter of Acceptance” means theContract Agreement and the date of issuing or receiving the Letter ofAcceptance means the date of signing the Contract Agreement.1.1.1.4“Letter of Tender” means the document entitled letter of tender, which wascompleted by the Contractor and includes the signed offer to the Employerfor the Works.1.1.1.5“Specification” means the document entitled specification, as included inthe Contract, and any additions and modifications to the specification inaccordance with the Contract. Such document specifies the Works.1.1.1.6“Drawings” means the drawings of the Works, as included in the Contract,and any additional and modified drawings issued by (or on behalf of) theEmployer in accordance with the Contract.1.1.1.7“Schedules” means the document(s) entitled schedules, completed by theContractor and submitted with the Letter of Tender, as included in theContract. Such document may include the Bill of Quantities, data, lists, andschedules of rates and/or prices.1.1.1.8“Tender” means the Letter of Tender and all other documents which theContractor submitted with the Letter of Tender, as included in the Contract.1.1.1.9“Appendix to Tender” means the completed pages entitled appendix totender which are appended to and form part of the Letter of Tender.1.1.1.10 “Bill of Quantities” and “Daywork Schedule” mean the documents sonamed (if any) which are comprised in the Schedules.General Conditions1
1.1.2Parties and PersonsMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091.1.2.1“Party” means the Employer or the Contractor, as the context requires.1.1.2.2“Employer” means the person named as employer in the Appendix toTender and the legal successors in title to this person.1.1.2.3“Contractor” means the person(s) named as contractor in the Letter ofTender accepted by the Employer and the legal successors in title to thisperson(s).1.1.2.4“Engineer” means the person appointed by the Employer to act as theEngineer for the purposes of the Contract and named in the Appendix toTender, or other person appointed from time to time by the Employer andnotified to the Contractor under Sub-Clause 3.4 [Replacement of the Engineer].1.1.2.5“Contractor’s Representative” means the person named by theContractor in the Contract or appointed from time to time by the Contractorunder Sub-Clause 4.3 [Contractor’s Representative], who acts on behalf ofthe Contractor.1.1.2.6“Employer’s Personnel” means the Engineer, the assistants referred to inSub-Clause 3.2 [Delegation by the Engineer] and all other staff, labour andother employees of the Engineer and of the Employer; and any otherpersonnel notified to the Contractor, by the Employer or the Engineer, asEmployer’s Personnel.1.1.2.7“Contractor’s Personnel” means the Contractor’s Representative and allpersonnel whom the Contractor utilises on Site, who may include the staff,labour and other employees of the Contractor and of each Subcontractor;and any other personnel assisting the Contractor in the execution of the Works.1.1.2.8“Subcontractor” means any person named in the Contract as asubcontractor, or any person appointed as a subcontractor, for a part of theWorks; and the legal successors in title to each of these persons.1.1.2.9“DAB” means the person or three persons so named in the Contract, orother person(s) appointed under Sub-Clause 20.2 [Appointment of theDispute Adjudication Board] or Sub-Clause 20.3 [Failure to Agree DisputeAdjudication Board]1.1.2.10 “FIDIC” means the Fédération Internationale des Ingénieurs-Conseils, theinternational federation of consulting engineers.1.1.3Dates, Tests, Periodsand Completion21.1.3.1“Base Date” means the date 28 days prior to the latest date for submissionof the Tender.1.1.3.2“Commencement Date” means the date notified under Sub-Clause 8.1[Commencement of Works].1.1.3.3“Time for Completion” means the time for completing the Works or aSection (as the case may be) under Sub-Clause 8.2 [Time for Completion],as stated in the Appendix to Tender (with any extension under SubClause 8.4 [Extension of Time for Completion]), calculated from theCommencement Date.1.1.3.4“Tests on Completion” means the tests which are specified in the Contractor agreed by both Parties or instructed as a Variation, and which are carriedConditions of Contract for Construction
out under Clause 9 [Tests on Completion] before the Works or a Section (asthe case may be) are taken over by the Employer.1.1.4Money and PaymentsMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091.1.3.5“Taking-Over Certificate” means a certificate issued under Clause 10[Employer’s Taking Over].1.1.3.6“Tests after Completion” means the tests (if any) which are specified in theContract and which are carried out in accordance with the provisions of theParticular Conditions after the Works or a Section (as the case may be) aretaken over by the Employer.1.1.3.7“Defects Notification Period” means the period for notifying defects in theWorks or a Section (as the case may be) under Sub-Clause 11.1[Completion of Outstanding Work and Remedying Defects], as stated in theAppendix to Tender (with any extension under Sub-Clause 11.3 [Extensionof Defects Notification Period]), calculated from the date on which the Worksor Section is completed as certified under Sub-Clause 10.1 [Taking Over ofthe Works and Sections].1.1.3.8“Performance Certificate” means the certificate issued under SubClause 11.9 [Performance Certificate].1.1.3.9“day” means a calendar day and “year” means 365 days.1.1.4.1“Accepted Contract Amount” means the amount accepted in the Letter ofAcceptance for the execution and completion of the Works and theremedying of any defects.1.1.4.2“Contract Price” means the price defined in Sub-Clause 14.1 [TheContract Price], and includes adjustments in accordance with the Contract.1.1.4.3“Cost” means all expenditure reasonably incurred (or to be incurred) by theContractor, whether on or off the Site, including overhead and similarcharges, but does not include profit.1.1.4.4“Final Payment Certificate” means the payment certificate issued underSub-Clause 14.13 [Issue of Final Payment Certificate].1.1.4.5“Final Statement” means the statement defined in Sub-Clause 14.11[Application for Final Payment Certificate].1.1.4.6“Foreign Currency” means a currency in which part (or all) of the ContractPrice is payable, but not the Local Currency.1.1.4.7“Interim Payment Certificate” means a payment certificate issued underClause 14 [Contract Price and Payment], other than the Final PaymentCertificate.1.1.4.8“Local Currency” means the currency of the Country.1.1.4.9“Payment Certificate” means a payment certificate issued under Clause 14[ Contract Price and Payment ].1.1.4.10 “Provisional Sum” means a sum (if any) which is specified in the Contract asa provisional sum, for the execution of any part of the Works or for the supplyof Plant, Materials or services under Sub-Clause 13.5 [Provisional Sums].General Conditions3
1.1.4.11 “Retention Money” means the accumulated retention moneys which theEmployer retains under Sub-Clause 14.3 [Application for Interim PaymentCertificates] and pays under Sub-Clause 14.9 [Payment of RetentionMoney].1.1.4.12 “Statement” means a statement submitted by the Contractor as part of anapplication, under Clause 14 [Contract Price and Payment], for a paymentcertificate.1.1.5Works and GoodsMCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091.1.6Other Definitions41.1.5.1“Contractor’s Equipment” means all apparatus, machinery, vehicles andother things required for the execution and completion of the Works and theremedying of any defects. However, Contractor’s Equipment excludesTemporary Works, Employer’s Equipment (if any), Plant, Materials and anyother things intended to form or forming part of the Permanent Works.1.1.5.2“Goods” means Contractor’s Equipment, Materials, Plant and TemporaryWorks, or any of them as appropriate.1.1.5.3“Materials” means things of all kinds (other than Plant) intended to form orforming part of the Permanent Works, including the supply-only materials (ifany) to be supplied by the Contractor under the Contract.1.1.5.4“Permanent Works” means the permanent works to be executed by theContractor under the Contract.1.1.5.5“Plant” means the apparatus, machinery and vehicles intended to form orforming part of the Permanent Works.1.1.5.6“Section” means a part of the Works specified in the Appendix to Tender asa Section (if any).1.1.5.7“Temporary Works” means all temporary works of every kind (other thanContractor’s Equipment) required on Site for the execution and completionof the Permanent Works and the remedying of any defects.1.1.5.8“Works” mean the Permanent Works and the Temporary Works, or either ofthem as appropriate.1.1.6.1“Contractor’s Documents” means the calculations, computer programsand other software, drawings, manuals, models and other documents ofa technical nature (if any) supplied by the Contractor under theContract.1.1.6.2“Country” means the country in which the Site (or most of it) is located,where the Permanent Works are to be executed.1.1.6.3“Employer’s Equipment” means the apparatus, machinery and vehicles (ifany) made available by the Employer for the use of the Contractor in theexecution of the Works, as stated in the Specification; but does not includePlant which has not been taken over by the Employer.1.1.6.4“Force Majeure” is defined in Clause 19 [Force Majeure].1.1.6.5“Laws” means all national (or state) legislation, statutes, ordinances andother laws, and regulations and by-laws of any legally constituted publicauthority.Conditions of Contract for Construction
1.1.6.6“Performance Security” means the security (or securities, if any) underSub-Clause 4.2 [Performance Security].1.1.6.7“Site” means the places where the Permanent Works are to be executedand to which Plant and Materials are to be delivered, and any other placesas may be specified in the Contract as forming
Contract Agreement or in the Letter of Acceptance. 1.1.1.2 “Contract Agreement” means the contract agreement (if any) referred to in Sub-Clause 1.6 [Contract Agreement]. 1.1.1.3 “Letter of Acceptance” means the letter of formal acceptance, signed by the Employer, of the Letter of Tender, including any annexed memorandaFile Size: 241KB
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