24 Questions
In accordance with the Contract, when shall the Contractor pay taxes, duties, and fees?
The Contractor shall pay all taxes, duties, and fees required to be paid by him under the Contract, and the Contract Price shall not be adjusted for any of these costs, except as stated in Sub-Clause 13.7 [Adjustments for Changes in Legislation]
When shall the advance payment be made by the Employer?
The advance payment shall be made as an interest-free loan for mobilization and design when the Contractor submits a guarantee in accordance with the Sub-Clause
What happens if the total advance payment is not stated in the Appendix to Tender?
The Sub-Clause related to advance payment shall not apply
How is the advance payment repaid by the Contractor?
The advance payment shall be repaid through percentage deductions in Payment Certificates
What happens if the terms of the guarantee specify its expiry date and the advance payment has not been repaid by the date 28 days prior to the expiry date?
The Contractor shall extend the validity of the guarantee until the advance payment has been repaid
When does the Engineer issue an Interim Payment Certificate for the first installment of the advance payment?
The Engineer issues an Interim Payment Certificate for the first installment after receiving a Statement and after the Employer receives the Performance Security and a guarantee in amounts and currencies equal to the advance payment
What constitutes taking-over under Employer's Taking Over clause?
Trial operation
When does the product from trial operation belong to the Employer?
Unless stated otherwise
What happens if the Contractor fails to attend Tests after Completion?
Employer may proceed and Contractor must accept readings as accurate
Who is responsible for carrying out Tests after Completion as per Contractor's manuals?
Employer
What is the consequence of delayed Tests on Completion due to undue delay by the Employer?
Contractor is entitled to additional payment
What happens in case of retesting after Works or Section fail Tests after Completion?
Both Parties share the retesting costs
What happens if the contractor fails to pass tests after completion?
They trigger payment of non-performance damages defined in the contract
When can the contractor be instructed that access cannot be given until a convenient time for the employer, after proposing adjustments or modifications to the works?
After failing a test
In what situation is the contractor entitled to payment for incurring additional cost due to unreasonable delay by the employer in permitting access to the works?
Unreasonable delay in permitting access to the works
When can variations be initiated by the engineer?
Before issuing the Taking-Over Certificate
When may the contractor submit a proposal to the engineer?
At any time
What must the contractor provide if the engineer requests a proposal before instructing a variation?
Description of the proposed design and/or work, a programme for execution, and a proposal for necessary modifications to the programme and the contract price
According to Clause 5.6, when must the Contractor supply as-built drawings to the Engineer?
Before the Tests on Completion
What does Clause 6.1 obligate the Contractor to do?
Make arrangements for the payment, housing, feeding, and transport of all staff and labor
Under Clause 6.4, what is the Contractor prohibited from doing?
Recruiting staff and labor from amongst the Employer's Personnel
What does Clause 8.12 require after the resumption of work?
The Contractor and the Engineer must jointly examine the Works and make good any deterioration, defect, or loss of Works, Plant, or Materials
According to Clause 9.1, when must the Tests on Completion be carried out?
Within 14 days after the specified date
What does Clause 5.7 mandate the Contractor to supply?
Provisional operation and maintenance manuals before the Tests on Completion
Study Notes
FIDIC Plant and Design-Build Contract: Key Clauses Summary
- Clause 5.5 requires the Contractor to provide training to the Employer's Personnel on the operation and maintenance of the Works as specified in the Employer's Requirements.
- The Contractor is obligated under Clause 5.6 to prepare and maintain as-built records of the execution of the Works, and to supply as-built drawings to the Engineer for review before the Tests on Completion.
- Prior to the issue of any Taking-Over Certificate, the Contractor must supply the specified copies of the relevant as-built drawings to the Engineer, as per Clause 5.6.
- Clause 5.7 mandates the Contractor to supply provisional operation and maintenance manuals before the Tests on Completion, and final operation and maintenance manuals in such detail as specified in the Employer's Requirements.
- The Contractor is required to correct any errors, omissions, or defects found in the Contractor's Documents at their own cost, as per Clause 5.8.
- Clause 6.1 obligates the Contractor to engage and make arrangements for the payment, housing, feeding, and transport of all staff and labor, local or otherwise, unless otherwise stated in the Employer's Requirements.
- The Contractor is required to pay rates of wages and observe conditions of labor not lower than those established for the trade or industry where the work is carried out, as per Clause 6.3.
- Under Clause 6.4, the Contractor is prohibited from recruiting staff and labor from amongst the Employer's Personnel and must comply with all relevant labor laws.
- Clause 6.5 specifies that no work shall be carried out on locally recognized days of rest or outside normal working hours without consent, except in unavoidable or necessary circumstances for the protection of life or property or safety of the Works.
- After resumption of work, as per Clause 8.12, the Contractor and the Engineer must jointly examine the Works and make good any deterioration, defect, or loss of Works, Plant, or Materials that occurred during the suspension.
- Clause 9.1 requires the Contractor to carry out the Tests on Completion after providing the necessary documents and giving the Engineer at least 21 days' notice of the date for the tests.
- Unless otherwise agreed, the Tests on Completion must be carried out within 14 days after the specified date, as per Clause 9.1.
Test your understanding of key clauses in the FIDIC Plant and Design-Build Contract with this quiz. Explore important obligations and requirements for contractors regarding training, record-keeping, manuals, labor arrangements, work schedules, tests on completion, and more.
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