Questions and Answers
What may the Employer do if the Contractor fails to remedy a defect within a reasonable time and the remedial work was to be executed at the cost of the Contractor?
Carry out the work himself or by others at the Contractor's cost
Under what circumstance may the Employer terminate the Contract as a whole, or in respect of a major part which cannot be put to the intended use?
If the defect or damage deprives the Employer of substantially the whole benefit of the Works
What action may the Contractor take if the defect or damage cannot be remedied expeditiously on the Site and the Employer gives consent?
Remove from the Site for the purposes of repair such items of Plant as are defective or damaged
Under what circumstance may the Employer require the repetition of tests described in the Contract?
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When does the Contractor have the right of access to all parts of the Works and to records of the operation and performance of the Works?
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What may the Contractor be required to do if the Employer requires a search for the cause of any defect?
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What costs may the Contractor be liable for if the work of remedying any defect or damage may affect the performance of the Works?
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What may the Employer do if the defect or damage deprives the Employer of substantially the whole benefit of the Works or any major part of the Works?
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Under what circumstance may the Employer be entitled to recover all sums paid for the Works, plus financing costs and the cost of dismantling the same, clearing the Site and returning Plant and Materials to the Contractor?
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When can the Employer require a reduction to be agreed and paid before a Taking-Over Certificate is issued?
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When are the Works taken over by the Employer?
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Under what circumstances is a Taking-Over Certificate deemed to have been issued?
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When can parts of the Works be taken over or used by the Employer?
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Under what circumstances is the Contractor entitled to an extension of time and payment of any Cost plus reasonable profit?
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When is the Contractor required to complete any outstanding work and remedy defects?
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Under what circumstances is the Employer entitled to an extension of the Defects Notification Period?
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What entitlements does the Contractor have if they suffer delay and/or incur Cost from complying with the Employer's instructions under Sub-Clause 8.8?
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Under what circumstance is the Contractor not entitled to an extension of time or payment of the Cost incurred?
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What action should the Employer take after receiving notice from the Contractor regarding delay and/or Cost incurred?
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When is the Contractor not entitled to an extension of time or payment of Cost incurred?
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Under what circumstance does Sub-Clause 8.9 not apply?
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What should the Contractor do if they suffer delay and/or incur Cost from complying with the Employer's instructions under Sub-Clause 8.8?
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What should the Employer do after receiving notice from the Contractor regarding delay and/or Cost incurred?
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If the Contractor suffers delay and/or incurs cost due to complying with the Employer's instructions under Sub-Clause 8.8, what is the Contractor entitled to?
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If the cause for suspension is the responsibility of the Contractor and is notified by the Employer, which SubClauses shall not apply?
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When is the Employer required to proceed in accordance with Sub-Clause 3.5?
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In which circumstance is the Contractor not entitled to an extension of time or payment of cost?
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What action is the Employer required to take after the Contractor gives notice of delay and cost incurred?
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What happens if the cause for suspension is the responsibility of the Contractor and is notified by the Employer?
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What is the Contractor entitled to if completion is delayed due to complying with the Employer's instructions under Sub-Clause 8.8?
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Study Notes
Construction Contract Clauses Summary
- The contractor is entitled to payment for plant and materials not delivered to the site if work on them has been suspended for more than 28 days and marked as the employer's property.
- If a suspension lasts for more than 84 days, the contractor can request permission to proceed, and if not granted within 28 days, can treat the suspension as an omission or terminate the contract.
- After resumption of work, the contractor is responsible for making good any deterioration, defect, or loss of the works, plant, or materials during the suspension.
- The contractor is obligated to carry out tests on completion in accordance with the contract, providing notice to the employer and carrying out the tests within agreed timelines.
- The tests on completion should be carried out in a specific sequence, including pre-commissioning tests, commissioning tests, and trial operation.
- Trial operation does not constitute taking over by the employer, and any product produced during this phase belongs to the employer.
- The contractor must submit a certified report of the test results to the employer after the tests on completion have been passed.
- If the tests on completion are unduly delayed by the employer, applicable clauses allow for resolution and potential assumption of testing by the employer's personnel.
- If the works or a section fail the tests on completion, retesting may be required under the same terms and conditions.
- If the works or a section fail the repeated tests on completion, the employer may order further repetition, reject the works or section, or issue a taking-over certificate, which impacts the contract price.
- The contract price will be reduced if the failure to pass the tests on completion results in the reduced value to the employer.
- The contract contains detailed clauses regarding payment, suspension, resumption of work, tests on completion, and consequences of failure to pass the tests on completion.
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