S 2017 - 6
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What happens if a Test after Completion on the Works cannot be completed during the DNP?

  • The Test after Completion is considered invalid
  • The Works or Section shall be deemed to have passed the Test after Completion (correct)
  • The Employer is entitled to claim payment from the Contractor
  • The Contractor is responsible for the failure to complete the test

    • What happens if the Works or a Section fail to pass the Tests after Completion?

  • The Contractor is relieved from any responsibility
  • The Employer must cover all additional costs
  • Retesting and remedying defects procedures apply (correct)
  • The Works or Section are considered complete regardless

    • Under what circumstances is the Employer entitled to claim payment of additional costs from the Contractor?

  • When the failure and retesting cause the Employer to incur additional costs as listed in sub-paragraphs (a) to (d) of Sub-Clause 11.2 (correct)
  • When the Contractor denies responsibility for the failure
  • When the failure occurs during the DNP
  • When the failure is due to natural causes

    • What does Sub-Clause 12.4 address?

    <p>Failure to pass Tests after Completion</p> Signup and view all the answers

    If the Contractor fails to pass a test after completion, what entitlement does the Employer have?

    <p>To performance damages</p> Signup and view all the answers

    What can the Contractor propose if the works fail to pass a test after completion?

    <p>Adjustments or modifications to the works</p> Signup and view all the answers

    Under what circumstances can the Employer instruct the Contractor to delay access to the works?

    <p>Until convenient for the Employer</p> Signup and view all the answers

    What entitlement does the Contractor have if they incur additional cost due to unreasonable delay by the Employer?

    <p>Payment of such costs plus profit</p> Signup and view all the answers

    What can the Employer do after the completion of the works in relation to variations or changes in cost?

    <p>Instruct a variation or request a proposal for changes in cost</p> Signup and view all the answers

    What provisions are there for adjustments for changes in cost if there are no schedules of cost indexation in the Particular Conditions?

    <p>There are provisions for adjustments for changes in cost</p> Signup and view all the answers

    What is the Contract Price stated in the Contract Agreement deemed to cover?

    <p>The contingency of rises and falls in costs</p> Signup and view all the answers

    How are adjustments to the Contract Price to be calculated?

    <p>For each currency in which the Contract Price is payable</p> Signup and view all the answers

    What type of work does not receive any adjustment in price?

    <p>Work valued on the basis of cost or current prices</p> Signup and view all the answers

    How are adjustments of prices made if the Contractor fails to complete the works within the Time for Completion?

    <p>Using specific criteria</p> Signup and view all the answers

    How is payment for the works made?

    <p>On the basis of the lump sum Contract Price stated in the Contract Agreement, subject to adjustments, additions, and/or deductions</p> Signup and view all the answers

    What is required of the Employer and the Contractor regarding advance payment?

    <p>The Employer is required to make an advance payment, and the Contractor is required to obtain an Advance Payment Guarantee</p> Signup and view all the answers

    What is the duration for the advance payment guarantee to remain valid and enforceable?

    <p>Until the advance payment is repaid</p> Signup and view all the answers

    Under what circumstances must the contractor extend the validity of the advance payment guarantee?

    <p>If the advance payment remains unpaid</p> Signup and view all the answers

    When does the employer have to make the advance payment?

    <p>Within 14 days of receiving the performance security and advance payment guarantee</p> Signup and view all the answers

    When will the deductions for repayment of the advance payment commence?

    <p>When the total of all interim payments (excluding the advance payment) exceeds ten percent of the contract price</p> Signup and view all the answers

    What is the amortisation rate for the deductions until the advance payment is repaid?

    <p>25% of each interim payment</p> Signup and view all the answers

    When does the outstanding balance of the advance payment become immediately due if not repaid?

    <p>Before the Taking-Over Certificate or termination</p> Signup and view all the answers

    When must the contractor submit a statement to the employer detailing the amounts to which the contractor is entitled?

    <p>After the period of payment</p> Signup and view all the answers

    What items should the statement submitted by the contractor to the employer include?

    <p>Estimated contract value of the works executed and any deductions or additions for changes in laws, retention, advance payment, plant and materials, and other due amounts</p> Signup and view all the answers

    What must the guarantee for advance payment be based on?

    <p>The sample form in the tender documents or an agreed form by the employer</p> Signup and view all the answers

    Who gives consent to the entity issuing the advance payment guarantee?

    <p>The employer</p> Signup and view all the answers

    What must the contractor do when providing the advance payment guarantee?

    <p>Submit an application for the advance payment</p> Signup and view all the answers

    How will the advance payment be repaid?

    <p>Through percentage deductions in interim payments</p> Signup and view all the answers

    What is the duration for the advance payment guarantee to remain valid and enforceable?

    <p>Until the advance payment is repaid</p> Signup and view all the answers

    When must the contractor extend the validity of the advance payment guarantee?

    <p>If the advance payment is not repaid</p> Signup and view all the answers

    What must the guarantee for advance payment be based on?

    <p>The sample form in the tender documents or an agreed form by the employer</p> Signup and view all the answers

    How are adjustments to the Contract Price to be calculated?

    <p>By the specified formula in the contract</p> Signup and view all the answers

    What can the Employer do after the completion of the works in relation to variations or changes in cost?

    <p>Claim payment of additional costs from the Contractor</p> Signup and view all the answers

    Under what circumstances can the Employer instruct the Contractor to delay access to the works?

    <p>To avoid potential damages</p> Signup and view all the answers

    What happens if the Works or a Section fail to pass the Tests after Completion?

    <p>The contractor must rectify the defects at their own cost</p> Signup and view all the answers

    What entitlement does the Contractor have if they incur additional cost due to unreasonable delay by the Employer?

    <p>Entitled to compensation for additional costs</p> Signup and view all the answers

    What is required of the Employer and the Contractor regarding advance payment?

    <p>The Employer must make the advance payment, and the Contractor must provide an advance payment guarantee</p> Signup and view all the answers

    Under what circumstances is the Employer entitled to claim payment of additional costs from the Contractor?

    <p>If the works fail to pass a test after completion</p> Signup and view all the answers

    What items should the statement submitted by the contractor to the employer include?

    <p>Various items, including the estimated contract value of the works executed and any deductions or additions for changes in laws, retention, advance payment, plant and materials, and other due amounts</p> Signup and view all the answers

    How will the advance payment be repaid?

    <p>Through deductions in interim payments</p> Signup and view all the answers

    Study Notes

    FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects

    • The text discusses provisions for failure to pass tests after completion and the entitlement of the employer to performance damages.
    • The Contractor can propose adjustments or modifications to the works if they fail to pass a test after completion.
    • The Contractor may be instructed by the Employer to delay access to the works until convenient for the Employer.
    • If the Contractor incurs additional cost due to unreasonable delay by the Employer, they are entitled to payment of such costs plus profit.
    • The Employer can instruct a variation or request a proposal for changes in cost after the completion of the works.
    • There are provisions for adjustments for changes in cost if there are no schedules of cost indexation in the Particular Conditions.
    • The Contract Price stated in the Contract Agreement is deemed to cover the contingency of rises and falls in costs to the extent not covered by other clauses.
    • Adjustments to the Contract Price are to be calculated for each currency in which the Contract Price is payable.
    • No adjustment is applied to work valued on the basis of cost or current prices.
    • If the Contractor fails to complete the works within the Time for Completion, adjustment of prices thereafter shall be made using specific criteria.
    • Payment for the works shall be made on the basis of the lump sum Contract Price stated in the Contract Agreement, subject to adjustments, additions, and/or deductions.
    • The Employer is required to make an advance payment, as an interest-free loan for mobilization and design, as stated in the Contract Data. The Contractor is also required to obtain an Advance Payment Guarantee.

    Contractor's Obligations for Advance Payment Guarantee

    • The guarantee is issued by an entity within the jurisdiction to which the employer gives consent.
    • The guarantee must be based on the sample form in the tender documents or an agreed form by the employer.
    • The advance payment guarantee must remain valid and enforceable until the advance payment is repaid.
    • If the guarantee specifies an expiry date, the contractor must extend its validity if the advance payment remains unpaid.
    • The contractor must submit an application for the advance payment when providing the advance payment guarantee.
    • The employer must make the advance payment within 14 days of receiving the performance security and advance payment guarantee.
    • The advance payment will be repaid through percentage deductions in interim payments.
    • The deductions will commence when the total of all interim payments (excluding the advance payment) exceeds ten percent of the contract price.
    • Deductions will be made at an amortisation rate of 25% of each interim payment until the advance payment is repaid.
    • If the advance payment is not repaid before the Taking-Over Certificate or termination, the outstanding balance becomes immediately due.
    • The contractor must submit a statement to the employer after the period of payment, detailing the amounts to which the contractor is entitled.
    • The statement should include various items, such as the estimated contract value of the works executed and any deductions or additions for changes in laws, retention, advance payment, plant and materials, and other due amounts.

    Contractor's Obligations for Advance Payment Guarantee

    • The guarantee is issued by an entity within the jurisdiction to which the employer gives consent.
    • The guarantee must be based on the sample form in the tender documents or an agreed form by the employer.
    • The advance payment guarantee must remain valid and enforceable until the advance payment is repaid.
    • If the guarantee specifies an expiry date, the contractor must extend its validity if the advance payment remains unpaid.
    • The contractor must submit an application for the advance payment when providing the advance payment guarantee.
    • The employer must make the advance payment within 14 days of receiving the performance security and advance payment guarantee.
    • The advance payment will be repaid through percentage deductions in interim payments.
    • The deductions will commence when the total of all interim payments (excluding the advance payment) exceeds ten percent of the contract price.
    • Deductions will be made at an amortisation rate of 25% of each interim payment until the advance payment is repaid.
    • If the advance payment is not repaid before the Taking-Over Certificate or termination, the outstanding balance becomes immediately due.
    • The contractor must submit a statement to the employer after the period of payment, detailing the amounts to which the contractor is entitled.
    • The statement should include various items, such as the estimated contract value of the works executed and any deductions or additions for changes in laws, retention, advance payment, plant and materials, and other due amounts.

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    Related Documents

    FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects (PDF)

    Description

    This quiz covers the provisions for failure to pass tests after completion, entitlement of the employer to performance damages, adjustments to the Contract Price, Contractor's obligations for Advance Payment Guarantee, and other important clauses in the FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects.

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