S 99 - 5

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Questions and Answers

What happens if the Employer fails to issue the Performance Certificate within the specified timeframe?

The Contractor's obligations are considered completed without the Performance Certificate

The Contractor can claim double the contract price

The Contractor can terminate the contract immediately

The Performance Certificate shall be deemed to have been issued after 28 days (correct)

When is the Performance Certificate deemed to constitute acceptance of the Works?

At the completion of the Defects Notification Periods

After the Contractor has completed and tested all the Works

When the Contractor has supplied all the Contractor's Documents

Only upon issuance of the Performance Certificate (correct)

How is the Cost of the search plus reasonable profit determined under Sub-Clause 11.2?

Agreed or determined in accordance with Sub-Clause 3.5 (correct)

Determined by the Employer's representative

Based on the Contractor's estimate

Calculated as a percentage of the Contract Price

When should the Employer issue the Performance Certificate according to the text?

Within 28 days after the latest of the expiry dates of the Defects Notification Periods Signup and view all the answers

What does the Performance Certificate signify?

Completion of the Contractor's obligations Signup and view all the answers

Under what circumstances is the Cost of the search plus reasonable profit added to the Contract Price?

When determined in accordance with Sub-Clause 3.5 Signup and view all the answers

What is the significance of the Performance Certificate according to Sub-Clause 11.9?

Completion of the Contractor's obligations Signup and view all the answers

If the Contractor suffers delay and incurs additional cost due to changes in legislation, what is the Contractor entitled to?

An extension of time for any delay and payment of additional cost Signup and view all the answers

Under what condition can the Contract Price be adjusted for rises or falls in the cost of labor, Goods, and other inputs to the Works?

As per the provisions in the Particular Conditions Signup and view all the answers

In the absence of specific instructions in the Particular Conditions, when is the Contractor entitled to an advance payment?

Upon submission of a guarantee in accordance with the Sub-Clause Signup and view all the answers

Who is responsible for paying taxes, duties, and fees required under the Contract?

The Contractor Signup and view all the answers

What action should the Employer take upon receiving notice of delay and additional cost due to changes in legislation?

Proceed in accordance with Sub-Clause 3.5 to agree or determine the matters Signup and view all the answers

When is the Contract Price subject to adjustments?

For rises or falls in the cost of labor, Goods, and other inputs to the Works Signup and view all the answers

What is the purpose of the advance payment made by the Employer?

As an interest-free loan for mobilization and design Signup and view all the answers

When can the Contract Price be adjusted for taxes, duties, and fees?

Only as stated in Sub-Clause 13.7 Signup and view all the answers

Who is responsible for making payments for the Works based on the Contract Price?

The Contractor Signup and view all the answers

In EPC/Turnkey projects, when can the Employer initiate variations?

Before issuing Taking-Over Certificate for the Works Signup and view all the answers

What can the Contractor do if unable to execute a variation due to specific reasons?

Give notice to the Employer Signup and view all the answers

When can the Payment of the Contract Price be in more than one currency?

Only if the Employer agrees Signup and view all the answers

In what situations can Daywork basis be used?

For work of minor or incidental nature Signup and view all the answers

When must the Contractor submit accurate statements of resources used for daywork?

Regularly and prior to interim payments Signup and view all the answers

What happens after the Employer issues instructions for executing a variation?

Contract Price and Schedule of Payments are adjusted Signup and view all the answers

When can Provisional Sums be used?

Only according to the Employer's instructions Signup and view all the answers

What is the consequence if the Contractor fails to clear the site upon receiving the Performance Certificate?

The Employer may sell or dispose of remaining items if not removed within 28 days Signup and view all the answers

Under what circumstances are the Works or Section deemed to have passed Test after Completion?

If not completed within Defects Notification Period Signup and view all the answers

What is the consequence of unreasonable delay by the Employer to Tests after Completion?

Contractor entitled to payment for unreasonable delay by Employer to Tests after Completion Signup and view all the answers

When is retesting required for Works or Section after completion?

If Works or Section fail Tests after Completion Signup and view all the answers

Under what condition is the Contractor liable to pay additional costs to the Employer?

For failure and retesting Signup and view all the answers

What happens if the Contractor unreasonably delays the Tests after Completion procedure?

Works or Section deemed to have passed Tests after Completion if relevant sum payable as non-performance damages is paid by Contractor Signup and view all the answers

What is the consequence if the Contractor unreasonably delays the Employer in permitting access to Works or Plant?

Contractor entitled to payment for additional costs due to unreasonable delay by Employer in permitting access to Works or Plant Signup and view all the answers

Study Notes

Contractual Obligations After Performance Certificate Issuance

Parties remain liable for unfulfilled obligations after Performance Certificate issuance
Contract shall be deemed to remain in force for determining unperformed obligations
Contractor must clear site upon receiving Performance Certificate
Employer may sell or dispose of remaining items if not removed within 28 days
Tests after Completion procedure applies if specified in the Contract
Tests after Completion to be carried out in presence of Employer's and/or Contractor's Personnel
Contractor entitled to payment for unreasonable delay by Employer to Tests after Completion
Works or Section deemed to have passed Test after Completion if not completed within Defects Notification Period
Retesting required if Works or Section fail Tests after Completion
Contractor liable to pay additional costs to Employer for failure and retesting
Works or Section deemed to have passed Tests after Completion if relevant sum payable as non-performance damages is paid by Contractor
Contractor entitled to payment for additional costs due to unreasonable delay by Employer in permitting access to Works or Plant

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Test your understanding of contractual obligations after the issuance of a performance certificate in construction contracts. Explore the rights and responsibilities of the parties involved in completing outstanding obligations.