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Questions and Answers
What happens if the Contractor fails to comply with removing equipment, surplus material, and Temporary Works from the Site after the issue of the Performance Certificate?
What happens if the Contractor fails to comply with removing equipment, surplus material, and Temporary Works from the Site after the issue of the Performance Certificate?
- The Contractor may request additional payment for the removal
- The Contractor will not be liable for any costs incurred by the Employer
- The Contractor is entitled to an extension of time to complete the removal
- The Employer may sell or dispose of remaining items, reinstate and clean the Site at the Contractor’s cost (correct)
Under what circumstances is the Contractor not liable for defects or damage occurring more than two years after the expiry of the Defects Notification Period for the Plant?
Under what circumstances is the Contractor not liable for defects or damage occurring more than two years after the expiry of the Defects Notification Period for the Plant?
- Cases of fraud, gross negligence, deliberate default, or reckless misconduct (correct)
- Cases of unforeseen circumstances
- Cases of force majeure
- Cases of ordinary negligence
When are Tests after Completion procedures applicable?
When are Tests after Completion procedures applicable?
- At the discretion of the Contractor
- If requested by the regulatory authority
- Upon completion of the Performance Certificate
- If specified in the Employer’s Requirements (correct)
What happens if the Contractor does not attend Tests after Completion?
What happens if the Contractor does not attend Tests after Completion?
Who is responsible for providing necessary resources for Tests after Completion?
Who is responsible for providing necessary resources for Tests after Completion?
What happens if a Test after Completion cannot be completed due to reasons not attributable to the Contractor?
What happens if a Test after Completion cannot be completed due to reasons not attributable to the Contractor?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
What happens if the Works or Section fail Tests after Completion?
What happens if the Works or Section fail Tests after Completion?
Under what circumstances is the Employer entitled to payment of additional costs incurred due to failure and retesting?
Under what circumstances is the Employer entitled to payment of additional costs incurred due to failure and retesting?
If the Works or Section fail Tests after Completion and applicable Performance Damages are set out in the Schedule of Performance Guarantees, what is the Employer entitled to?
If the Works or Section fail Tests after Completion and applicable Performance Damages are set out in the Schedule of Performance Guarantees, what is the Employer entitled to?
What is the sequence in which the Tests on Completion should be carried out?
What is the sequence in which the Tests on Completion should be carried out?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
When should the Contractor give a Notice to the Engineer during trial operation?
When should the Contractor give a Notice to the Engineer during trial operation?
What should the commissioning tests include?
What should the commissioning tests include?
Who owns the products, revenue, or benefits resulting from trial operation?
Who owns the products, revenue, or benefits resulting from trial operation?
What happens if the Engineer does not issue a Notice within 14 days after reviewing the test reports?
What happens if the Engineer does not issue a Notice within 14 days after reviewing the test reports?
What happens if the tests are unduly delayed by the Employer?
What happens if the tests are unduly delayed by the Employer?
When must the Contractor commence the Tests on Completion?
When must the Contractor commence the Tests on Completion?
What may the Engineer require if the Contractor unduly delays the tests?
What may the Engineer require if the Contractor unduly delays the tests?
Under what circumstances may retesting be required?
Under what circumstances may retesting be required?
What are the Engineer's entitlements if the Works fail the Tests on Completion?
What are the Engineer's entitlements if the Works fail the Tests on Completion?
What constitutes a taking over under the Employer’s Taking Over clause?
What constitutes a taking over under the Employer’s Taking Over clause?
Who must submit certified reports of the test results to the Engineer?
Who must submit certified reports of the test results to the Engineer?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
What happens if the Engineer considers the effect of the Employer's use of the Works on the test results?
What happens if the Engineer considers the effect of the Employer's use of the Works on the test results?
Under what circumstances does the Engineer issue a Notice of No-objection?
Under what circumstances does the Engineer issue a Notice of No-objection?
What is the correct sequence for carrying out the Tests on Completion?
What is the correct sequence for carrying out the Tests on Completion?
When can the tests of each stage be commenced?
When can the tests of each stage be commenced?
When should the Contractor give a Notice to the Engineer during trial operation?
When should the Contractor give a Notice to the Engineer during trial operation?
What type of functional tests are included in the pre-commissioning tests?
What type of functional tests are included in the pre-commissioning tests?
Who is required to submit certified reports of the test results to the Engineer after each stage of the Tests on Completion?
Who is required to submit certified reports of the test results to the Engineer after each stage of the Tests on Completion?
What happens if the Engineer does not give a Notice within 14 days after reviewing the test reports?
What happens if the Engineer does not give a Notice within 14 days after reviewing the test reports?
Who owns the products, revenue, or benefits resulting from trial operation?
Who owns the products, revenue, or benefits resulting from trial operation?
Under what circumstances does the Interference with Tests on Completion clause apply?
Under what circumstances does the Interference with Tests on Completion clause apply?
When must the Contractor commence the Tests on Completion?
When must the Contractor commence the Tests on Completion?
What action may the Engineer take if the Contractor unduly delays the tests?
What action may the Engineer take if the Contractor unduly delays the tests?
Under what circumstances may retesting be required?
Under what circumstances may retesting be required?
What entitlements does the Engineer have if the Works fail the Tests on Completion?
What entitlements does the Engineer have if the Works fail the Tests on Completion?
What do trial operation and performance testing not constitute under the Employer’s Taking Over clause?
What do trial operation and performance testing not constitute under the Employer’s Taking Over clause?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
Who considers the effect of the Employer's use of the Works on the test results?
Who considers the effect of the Employer's use of the Works on the test results?
Who must demonstrate compliance with specified criteria and guarantees in the Employer’s Requirements and Schedule of Performance Guarantees?
Who must demonstrate compliance with specified criteria and guarantees in the Employer’s Requirements and Schedule of Performance Guarantees?
Who is responsible for paying all taxes, duties, and fees required under the Contract?
Who is responsible for paying all taxes, duties, and fees required under the Contract?
When is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
When is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
When is the Contractor relieved of the obligation to propose adjustments or modifications to the Works if they fail a test after completion?
When is the Contractor relieved of the obligation to propose adjustments or modifications to the Works if they fail a test after completion?
Under what circumstances may retesting be required?
Under what circumstances may retesting be required?
Who initiates Variations before the issue of the Taking-Over Certificate for the Works?
Who initiates Variations before the issue of the Taking-Over Certificate for the Works?
When should the Contractor give a Notice to the Engineer during trial operation?
When should the Contractor give a Notice to the Engineer during trial operation?
What constitutes a taking over under the Employer’s Taking Over clause?
What constitutes a taking over under the Employer’s Taking Over clause?
Who is entitled to make an interest-free advance payment for mobilization and design?
Who is entitled to make an interest-free advance payment for mobilization and design?
Under what circumstances does the Interference with Tests on Completion clause apply?
Under what circumstances does the Interference with Tests on Completion clause apply?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
Who must submit certified reports of the test results to the Engineer after each stage of the Tests on Completion?
Who must submit certified reports of the test results to the Engineer after each stage of the Tests on Completion?
What happens if the Engineer does not give a Notice within 14 days after reviewing the test reports?
What happens if the Engineer does not give a Notice within 14 days after reviewing the test reports?
If the Contractor fails to propose adjustments or modifications to the Works after completion and is not notified by the Employer during the Defects Notification Period (DNP), what happens?
If the Contractor fails to propose adjustments or modifications to the Works after completion and is not notified by the Employer during the Defects Notification Period (DNP), what happens?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
What may the Engineer require if the Contractor unduly delays the tests?
What may the Engineer require if the Contractor unduly delays the tests?
When is the Contractor relieved of the obligation to propose adjustments or modifications to the Works if they fail a test after completion?
When is the Contractor relieved of the obligation to propose adjustments or modifications to the Works if they fail a test after completion?
Who is responsible for providing necessary resources for Tests after Completion?
Who is responsible for providing necessary resources for Tests after Completion?
Under what circumstances does the Interference with Tests on Completion clause apply?
Under what circumstances does the Interference with Tests on Completion clause apply?
What happens if a Test after Completion cannot be completed due to reasons not attributable to the Contractor?
What happens if a Test after Completion cannot be completed due to reasons not attributable to the Contractor?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
When can the tests of each stage described in sub-paragraphs (b) and (c) be commenced?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
Who reviews the test reports and issues a Notice if the results do not comply with the Contract?
What is the sequence in which the Tests on Completion should be carried out?
What is the sequence in which the Tests on Completion should be carried out?
Under what circumstances is the Contract Price subject to adjustments, additions, and deductions?
Under what circumstances is the Contract Price subject to adjustments, additions, and deductions?
Who is responsible for paying all taxes, duties, and fees required under the Contract?
Who is responsible for paying all taxes, duties, and fees required under the Contract?
If the Contractor fails a test after completion and no notice is received during the Defects Notification Period (DNP), what may they be relieved of?
If the Contractor fails a test after completion and no notice is received during the Defects Notification Period (DNP), what may they be relieved of?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
Under what circumstances is the Contractor entitled to payment for unreasonable delay by the Employer resulting in incurring costs for Tests after Completion?
When are variations allowed to be initiated by the Engineer?
When are variations allowed to be initiated by the Engineer?
Under what circumstances is the Contractor not obligated to execute variations promptly?
Under what circumstances is the Contractor not obligated to execute variations promptly?
How are adjustments of prices for incomplete Works made?
How are adjustments of prices for incomplete Works made?
What is the Contract Price based on?
What is the Contract Price based on?
What should be considered about quantities or price data in a Schedule?
What should be considered about quantities or price data in a Schedule?
When are Tests after Completion procedures applicable?
When are Tests after Completion procedures applicable?
Under what circumstances does the advance payment Sub-Clause not apply?
Under what circumstances does the advance payment Sub-Clause not apply?
Who is responsible for providing necessary resources for Tests after Completion?
Who is responsible for providing necessary resources for Tests after Completion?
Under what circumstances is the Contract Price valued accordingly?
Under what circumstances is the Contract Price valued accordingly?
What is the Contractor obligated to pay in addition to the Contract Price?
What is the Contractor obligated to pay in addition to the Contract Price?
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Study Notes
Conditions of Contract for Plant and Design-Build
- Contractor is not liable for defects or damage occurring more than two years after expiry of the Defects Notification Period for the Plant, except in cases of fraud, gross negligence, deliberate default, or reckless misconduct.
- After the issue of the Performance Certificate, the Contractor must remove equipment, surplus material, wreckage, rubbish, and Temporary Works from the Site, reinstate affected parts of the Site, and leave the Site and Works in the condition stated in the Employer’s Requirements.
- If the Contractor fails to comply, the Employer may sell or dispose of remaining items, reinstate and clean the Site at the Contractor’s cost, and claim costs reasonably incurred in connection with such actions.
- Tests after Completion procedure applies if specified in the Employer’s Requirements.
- The Employer must provide necessary resources for Tests after Completion and carry them out according to specified requirements, O&M Manuals, and Contractor’s guidance.
- If the Contractor does not attend Tests after Completion, the Employer may proceed, and the Contractor is deemed to have accepted the readings as accurate.
- Results of Tests after Completion are compiled and evaluated by both Parties, considering the effect of the Employer’s prior use of the Works.
- Contractor is entitled to payment if unreasonable delay by the Employer results in incurring costs for Tests after Completion.
- If a Test after Completion cannot be completed due to reasons not attributable to the Contractor, the Works or Section shall be deemed to have passed.
- If the Works or Section fail Tests after Completion, applicable clauses for completion of outstanding work, remedying defects, and further tests after remedying defects apply.
- Employer is entitled to payment of additional costs incurred due to failure and retesting, attributable to matters listed in the contract.
- If the Works or Section fail Tests after Completion and applicable Performance Damages are set out in the Schedule of Performance Guarantees, the Employer is entitled to payment of these Performance Damages by the Contractor in full satisfaction of this failure.
FIDIC Contract Conditions Summary
- Contractor can propose adjustments or modifications to the Works if they fail a test after completion and may be relieved of the obligation if no notice is received during the Defects Notification Period (DNP).
- If the Contractor incurs additional cost due to unreasonable delay by the Employer in permitting access to the Works, they are entitled to payment of such costs plus profit.
- Variations may be initiated by the Engineer before the issue of the Taking-Over Certificate for the Works and shall not comprise the omission of any work unless agreed by the Parties.
- The Contractor shall execute variations promptly unless it is unforeseeable, goods are not readily obtainable, affects health and safety or environment, impacts performance guarantees, or affects completion of the Works.
- Adjustment of prices for incomplete Works shall be made using either each index or price applicable 49 days before the expiry of the Time for Completion, or the current index or price, whichever is more favorable to the Employer.
- The Contract Price is the lump sum Accepted Contract Amount, subject to adjustments, additions, and deductions as per the Contract, and the Contractor shall pay taxes, duties, and fees required.
- Any quantities or price data in a Schedule are estimated and not to be taken as the actual and correct quantities of the Works, unless the Particular Conditions state otherwise.
- The Contract Price shall be valued accordingly, subject to adjustments, and if any part of the Works is to be paid according to quantity supplied or work done, the provisions for measurement and valuation shall be as stated in the Particular Conditions.
- If no amount of advance payment is stated in the Contract Data, the advance payment Sub-Clause shall not apply, and after receiving the Advance Payment Certificate, the Employer shall make an interest-free loan for mobilization and design.
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