37 Questions
Who is responsible for each item of Employer’s Equipment while the Contractor’s Personnel is using it?
The Contractor
What must the Employer do if Employer-Supplied Materials and/or Employer’s Equipment are listed in the Specification for the Contractor’s use?
Make them available to the Contractor as per the details in the Specification
Who appoints the Engineer and what qualifications should the Engineer have?
The Employer; suitable qualifications, experience, and competence
When does the authority of the Engineer take effect?
After the Notice of appointment is received by both Parties
What language should the Engineer be fluent in?
The ruling language defined in Sub-Clause 1.4 [Law and Language]
Who should be notified of the natural person appointed to act on behalf of the Engineer if the Engineer is a legal entity?
The Parties
When carrying out duties or exercising authority, how should the Engineer act?
As a skilled professional for the Employer
Who should be informed of any revocation of the authority of the Engineer?
The Parties
Under what conditions shall the Engineer act as the Engineer under the Contract?
Unless otherwise stated in the Contract
In a Joint Venture, who is liable to the Employer for the Contractor’s obligations?
The individual members of the Joint Venture
What happens if the Employer’s failure to obtain permits causes delay or cost to the Contractor?
The Contractor is entitled to an extension of time and/or payment
What is the Contractor prohibited from doing without the Employer’s prior consent?
Publishing or disclosing any Contract particulars
What limits the total liability of the Contractor to the Employer?
Cases of fraud, gross negligence, deliberate default, or reckless misconduct
What must the Contractor provide to allow the Employer to obtain necessary permits, permissions, licenses, and approvals?
Assistance and documentation
What must the Contractor do if required by laws, indemnifying the Employer for any failure to do so?
Give notices, pay taxes, and obtain permits
When can the Employer claim additional costs from the Contractor?
If the Contractor fails to comply with laws or causes additional costs
What must the Employer do if required to give possession of any foundation, structure, plant, or means of access?
Give possession in the time and manner stated in the Specification, withholding it until the Performance Security has been received
Under what circumstances is the Contractor entitled to an Extension of Time (EOT) and/or payment of Cost Plus Profit?
If the Employer fails to give possession within the required time, resulting in delay or cost to the Contractor
What must the Employer do if there are material changes in its financial arrangements for fulfilling its obligations under the Contract?
Immediately notify the Contractor
What must the Employer provide to the Contractor if not readily available?
Copies of relevant laws, permits, permissions, licenses, or approvals required by the Laws of the Country
What must the Employer make available to the Contractor regarding the Site?
All relevant data on the topography of the Site and on sub-surface, hydrological, climatic, and environmental conditions at the Site
What is the Contractor entitled to request if instructed to execute a Variation with a price greater than ten percent of the Accepted Contract Amount?
Evidence of the Employer’s financial arrangements
What must the Employer provide to the Contractor regarding the survey control points, lines, and levels of reference specified on the Drawings or in the Specification?
The original survey control points, lines, and levels of reference
Who retains the copyright and other intellectual property rights in the Specification and Drawings?
The Employer
Under what circumstances can the Contractor copy, use, and communicate the Employer's documents?
Only with the Employer's prior consent
What must the Contractor do in order to verify compliance with the Contract?
Disclose all confidential information to the Employer
What is the Contractor prohibited from doing without the Employer’s prior consent?
Copying, using, or communicating the Employer's documents to a third party
Who should the Contractor notify if the Engineer is a legal entity?
The Employer
What is the Contractor entitled to request if instructed to execute a Variation with a price greater than ten percent of the Accepted Contract Amount?
An Extension of Time (EOT)
What must the Employer do if there are material changes in its financial arrangements for fulfilling its obligations under the Contract?
Notify the Contractor and the Engineer
Who retains the copyright and other intellectual property rights in the Specification and Drawings?
The Employer
Under what circumstances can the Contractor copy, use, and communicate the Employer's documents?
For the purposes of the Contract
When can the Contractor disclose confidential information to the Engineer?
As reasonably required to verify compliance with the Contract
Who has the authority to permit the copying, use, or communication of the Employer's documents to a third party?
The Employer
How should the Contractor treat the documents forming the Contract?
As confidential, except to the extent necessary to carry out obligations under the Contract
What is the Contractor's obligation regarding the Employer's confidential and other information?
To disclose all such information as reasonably required by the Engineer
Under what circumstances can the Employer use the Contractor's Documents without prior consent?
For purposes permitted under the Sub-Clause
Study Notes
Contract Conditions for Construction
- Termination of the Contract under any Sub-Clause of these Conditions requires no action by either Party other than as stated in the Sub-Clause.
- The Employer must give the Contractor right of access to, and possession of, all parts of the Site within the specified time in the Contract Data, and this right may not be exclusive to the Contractor.
- If the Employer is required to give possession of any foundation, structure, plant, or means of access, it must do so in the time and manner stated in the Specification, withholding it until the Performance Security has been received.
- If the Employer fails to give possession within the required time, resulting in delay or cost to the Contractor, the Contractor is entitled to an Extension of Time (EOT) and/or payment of such Cost Plus Profit, subject to certain conditions.
- The Employer must provide reasonable assistance to the Contractor upon request, allowing the Contractor to obtain necessary conditions.
- The Employer is responsible for ensuring that its Personnel and other contractors on or near the Site cooperate with the Contractor’s efforts and comply with specific obligations.
- The Contractor may require the Employer to remove any person of the Employer’s Personnel or other contractors engaged in corrupt, fraudulent, collusive, or coercive practice.
- The Employer’s financial arrangements for fulfilling its obligations under the Contract must be detailed in the Contract Data, and any material changes must be immediately notified to the Contractor.
- The Contractor may request evidence of the Employer’s financial arrangements if instructed to execute a Variation with a price greater than ten percent of the Accepted Contract Amount, among other conditions.
- The Employer must provide copies of relevant laws, permits, permissions, licenses, or approvals required by the Laws of the Country to the Contractor if not readily available.
- The Employer must make available all relevant data on the topography of the Site and on sub-surface, hydrological, climatic, and environmental conditions at the Site to the Contractor.
- The original survey control points, lines, and levels of reference specified on the Drawings or in the Specification must be made available to the Contractor by the Employer.
Test your knowledge of construction contract conditions with this quiz. Explore clauses related to termination, access to the site, possession, assistance, financial arrangements, and obligations of the employer and contractor.
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