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Questions and Answers

What action can the Contractor take in the case of subparagraph (f) or (g)?

Continue work as per Engineer's instructions

Hand over Contractor's Documents and leave the Site

Terminate the Contract immediately (correct)

Remove all Goods from the Site

What must the Contractor do after a notice of termination has taken effect?

Cease all further work, except as instructed by the Engineer for safety (correct)

Continue work as usual until instructed otherwise

Ignore the termination notice and proceed with work

Request an extension for completion of work

What does the Contractor need to hand over after a notice of termination has taken effect?

Nothing needs to be handed over

All Goods from the Site

Contractor's Documents, Plant, Materials, and other work for which payment was received (correct)

Only Contractor's Documents

What is the time frame for the Contractor to terminate the Contract upon giving notice to the Employer?

14 days Signup and view all the answers

How should the Contractor remove Goods from the Site after termination?

Remove all other Goods from the Site, except as necessary for safety Signup and view all the answers

What happens to the Contractor's election to terminate the Contract?

It does not prejudice any other rights of the Contractor Signup and view all the answers

What is the immediate action the Contractor can take in the case of subparagraph (f) or (g)?

Terminate the Contract immediately Signup and view all the answers

Who is responsible for maintaining insurance in accordance with the Clause?

The insuring Party Signup and view all the answers

What happens if the insuring Party fails to maintain the required insurance?

The other Party may effect insurance and the Contract Price shall be adjusted accordingly Signup and view all the answers

What is the duration of insurance for Works, Plant, Materials, and Contractor’s Documents?

From the date of submission of evidence until the date of issue of the Taking-Over Certificate Signup and view all the answers

What does the insurance for Contractor’s Equipment cover?

Full replacement value, including delivery to Site Signup and view all the answers

Who is responsible for effecting and maintaining insurances under the specified Sub-Clause?

The Contractor as insuring Party Signup and view all the answers

What happens if the insuring Party fails to effect and keep in force an insurance required under the Contract?

The insuring Party must pay any moneys which should have been recoverable under this insurance Signup and view all the answers

What are the insurances under the specified Sub-Clause typically in?

Joint names of the Parties Signup and view all the answers

What does the insurance for Works and Contractor’s Equipment include?

Full reinstatement cost including the costs of demolition, removal of debris, professional fees, and profit Signup and view all the answers

What does the insuring Party need to provide in accordance with the Sub-Clause?

Satisfactory evidence and copies of policies Signup and view all the answers

Who is responsible for indemnifying and holding harmless the Employer, the Employer’s Personnel, and their respective agents?

The Contractor Signup and view all the answers

When does the responsibility for the care of the Works pass to the Employer?

Upon issuance of the Taking-Over Certificate Signup and view all the answers

For what risks is the Contractor liable for any loss or damage?

Risks not listed in Sub-Clause 17.3 [Employer’s Risks] Signup and view all the answers

What is the consequence for the Contractor if any of the risks listed in Sub-Clause 17.3 results in loss or damage?

The Contractor shall promptly give notice to the Engineer and rectify the loss or damage as required Signup and view all the answers

In which circumstances is the Employer responsible for indemnifying the Contractor?

Bodily injury, sickness, disease or death attributable to the Employer's negligence Signup and view all the answers

When does the responsibility for the care of any outstanding work pass to the Employer?

After issuance of the Taking-Over Certificate Signup and view all the answers

What risks are referred to in Sub-Clause 17.3?

General risks applicable to construction projects Signup and view all the answers

What is the definition of 'infringement' in Sub-Clause 17.5?

An infringement of any patent, registered design, copyright, trade mark, trade name, trade secret or other intellectual or industrial property right relating to the Works Signup and view all the answers

Under what circumstances shall the Employer indemnify and hold the Contractor harmless in relation to infringement claims?

If the infringement is a result of any Works being used in conjunction with anything not supplied by the Contractor Signup and view all the answers

What is the limitation of liability for loss or damage suffered by the other Party in connection with the Contract?

The total liability of the Contractor to the Employer shall not exceed the sum stated in the Particular Conditions Signup and view all the answers

What does the insuring Party need to submit to the other Party within the respective periods stated in the Appendix to Tender?

All of the above Signup and view all the answers

Under what circumstances shall the Contractor indemnify and hold the Employer harmless?

All of the above Signup and view all the answers

Who may conduct negotiations for the settlement of a claim under Sub-Clause 17.5?

The indemnifying Party at its cost Signup and view all the answers

What does 'insuring Party' mean in Sub-Clause 18.1?

The Party responsible for effecting and maintaining the insurance specified in the relevant Sub-Clause Signup and view all the answers

What happens to the responsibility for the care of the Works after the Taking-Over Certificate is issued?

It passes to the Employer Signup and view all the answers

In the event of loss or damage due to Employer’s Risks, what is the Contractor entitled to?

An extension of time and/or compensation Signup and view all the answers

What risks are included in the Employer’s Risks?

War, hostilities, pressure waves, and forces of nature Signup and view all the answers

Who is liable for any loss or damage to the Works, Goods, or Contractor’s Documents during their care period?

Contractor Signup and view all the answers

What is the consequence for the Contractor if any of the risks listed in Sub-Clause 17.3 results in loss or damage?

Entitled to an extension of time and/or compensation Signup and view all the answers

What does the Contractor need to do if the insuring Party fails to maintain the required insurance?

Promptly notify the other Party Signup and view all the answers

Who indemnifies and holds harmless the Employer and their agents against claims, losses, and expenses?

Contractor Signup and view all the answers

What is the consequence for non-compliance with the 28-day notice period for claims as per Sub-Clause 17.5?

The claim will be considered null and void Signup and view all the answers

Under what circumstances is the Contractor's total liability to the Employer not capped at the sum stated in the Particular Conditions or the Accepted Contract Amount?

In cases of negligence Signup and view all the answers

What must the insuring Party submit to the other Party within specified periods as per the insurance requirements outlined in Clause 18?

Evidence of effected insurances, copies of policies, and evidence of premium payments Signup and view all the answers

What is the primary purpose of the insurance requirements outlined in Clause 18?

To provide financial protection for both Parties in case of specified events Signup and view all the answers

Under what circumstances is the Contractor indemnified by the Employer for certain infringements?

When the infringements are due to force majeure events Signup and view all the answers

What right does the indemnifying Party have regarding claim settlements and litigation or arbitration?

The right to conduct negotiations for claim settlements and litigation or arbitration at its cost Signup and view all the answers

What does Sub-Clause 17.6 limit the liability for?

Indirect or consequential losses, except under specific contract conditions Signup and view all the answers

Study Notes

FIDIC Contract Clauses Summary

Sub-Clause 17.3 allows the Contractor to claim an extension of time and payment for costs due to delays caused by the Employer's risks.
Sub-Clause 17.5 defines infringement and claim and sets a 28-day notice period for claims, with consequences for non-compliance.
The Employer indemnifies the Contractor for certain infringements, while the Contractor indemnifies the Employer for other claims.
The indemnifying Party has the right to conduct negotiations for claim settlements and litigation or arbitration at its cost.
Sub-Clause 17.6 limits liability for indirect or consequential losses, except under specific contract conditions.
The Contractor's total liability to the Employer is capped at the sum stated in the Particular Conditions or the Accepted Contract Amount, unless in cases of fraud or misconduct.
Clause 18 outlines requirements for insurances, with distinctions between the insuring Party being the Contractor or the Employer.
The terms of insurance must be consistent with agreed terms before the Letter of Acceptance, taking precedence over the Clause's provisions.
Policies must indemnify joint insured parties and provide for payments in the required currencies to rectify losses or damages.
The insuring Party must submit evidence of effected insurances, copies of policies, and evidence of premium payments to the other Party within specified periods.
Parties are obligated to comply with the conditions stipulated in each insurance policy.
The text is a licensed copy for Scott Wilson Holdings and is subject to certain conditions and limitations.

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Test your understanding of FIDIC contract clauses with this summary quiz covering Sub-Clauses 17.3, 17.5, and Clause 18, focusing on extensions of time, indemnities, liabilities, and insurance requirements.

R 99 - 10

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Questions and Answers

What action can the Contractor take in the case of subparagraph (f) or (g)?

What must the Contractor do after a notice of termination has taken effect?

What does the Contractor need to hand over after a notice of termination has taken effect?

What is the time frame for the Contractor to terminate the Contract upon giving notice to the Employer?

How should the Contractor remove Goods from the Site after termination?

What happens to the Contractor's election to terminate the Contract?

What is the immediate action the Contractor can take in the case of subparagraph (f) or (g)?

Who is responsible for maintaining insurance in accordance with the Clause?

What happens if the insuring Party fails to maintain the required insurance?

What is the duration of insurance for Works, Plant, Materials, and Contractor’s Documents?

What does the insurance for Contractor’s Equipment cover?

Who is responsible for effecting and maintaining insurances under the specified Sub-Clause?

What happens if the insuring Party fails to effect and keep in force an insurance required under the Contract?

What are the insurances under the specified Sub-Clause typically in?

What does the insurance for Works and Contractor’s Equipment include?

What does the insuring Party need to provide in accordance with the Sub-Clause?

Who is responsible for indemnifying and holding harmless the Employer, the Employer’s Personnel, and their respective agents?

When does the responsibility for the care of the Works pass to the Employer?

For what risks is the Contractor liable for any loss or damage?

What is the consequence for the Contractor if any of the risks listed in Sub-Clause 17.3 results in loss or damage?

In which circumstances is the Employer responsible for indemnifying the Contractor?

When does the responsibility for the care of any outstanding work pass to the Employer?

What risks are referred to in Sub-Clause 17.3?

What is the definition of 'infringement' in Sub-Clause 17.5?

Under what circumstances shall the Employer indemnify and hold the Contractor harmless in relation to infringement claims?

What is the limitation of liability for loss or damage suffered by the other Party in connection with the Contract?

What does the insuring Party need to submit to the other Party within the respective periods stated in the Appendix to Tender?

Under what circumstances shall the Contractor indemnify and hold the Employer harmless?

Who may conduct negotiations for the settlement of a claim under Sub-Clause 17.5?

What does 'insuring Party' mean in Sub-Clause 18.1?

What happens to the responsibility for the care of the Works after the Taking-Over Certificate is issued?

In the event of loss or damage due to Employer’s Risks, what is the Contractor entitled to?

What risks are included in the Employer’s Risks?

Who is liable for any loss or damage to the Works, Goods, or Contractor’s Documents during their care period?

What is the consequence for the Contractor if any of the risks listed in Sub-Clause 17.3 results in loss or damage?

What does the Contractor need to do if the insuring Party fails to maintain the required insurance?

Who indemnifies and holds harmless the Employer and their agents against claims, losses, and expenses?

What is the consequence for non-compliance with the 28-day notice period for claims as per Sub-Clause 17.5?

Under what circumstances is the Contractor's total liability to the Employer not capped at the sum stated in the Particular Conditions or the Accepted Contract Amount?

What must the insuring Party submit to the other Party within specified periods as per the insurance requirements outlined in Clause 18?

What is the primary purpose of the insurance requirements outlined in Clause 18?

Under what circumstances is the Contractor indemnified by the Employer for certain infringements?

What right does the indemnifying Party have regarding claim settlements and litigation or arbitration?

What does Sub-Clause 17.6 limit the liability for?

Study Notes

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