Podcast
Questions and Answers
What is the Contractor responsible for in accordance with the Contract?
What is the Contractor responsible for in accordance with the Contract?
What is NOT allowed with the document within the Lexis Nexis platform?
What is NOT allowed with the document within the Lexis Nexis platform?
What is the Contractor responsible for providing as per the Contract?
What is the Contractor responsible for providing as per the Contract?
What is the Contractor not responsible for in terms of design or specification?
What is the Contractor not responsible for in terms of design or specification?
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What is the document NOT intended for according to the provided information?
What is the document NOT intended for according to the provided information?
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What is the Contractor responsible for regarding the adequacy, stability, and safety?
What is the Contractor responsible for regarding the adequacy, stability, and safety?
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What is the Contractor responsible for in terms of the design of each item of Plant and Materials?
What is the Contractor responsible for in terms of the design of each item of Plant and Materials?
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Who has the authority to issue and receive Notices and other communications under Sub-Clause 1.3?
Who has the authority to issue and receive Notices and other communications under Sub-Clause 1.3?
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Under what circumstances can the Contract be terminated according to the text?
Under what circumstances can the Contract be terminated according to the text?
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Who shall prepare all Contractor’s Documents?
Who shall prepare all Contractor’s Documents?
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In what language should the Contractor’s Documents be written?
In what language should the Contractor’s Documents be written?
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Who has the right to inspect the preparation of all Contractor’s Documents?
Who has the right to inspect the preparation of all Contractor’s Documents?
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What happens if the Engineer gives no Notice within the period of 21 days after receiving the Contractor’s Document?
What happens if the Engineer gives no Notice within the period of 21 days after receiving the Contractor’s Document?
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Under what condition should a Contractor’s Document be submitted to the Engineer for Review?
Under what condition should a Contractor’s Document be submitted to the Engineer for Review?
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Who can delegate the authority to issue and receive Notices and other communications?
Who can delegate the authority to issue and receive Notices and other communications?
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Who has the authority to receive instructions under Sub-Clause 3.5?
Who has the authority to receive instructions under Sub-Clause 3.5?
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What is the consequence if the Contractor fails to extend the validity of the Performance Security or pay the Employer an amount due within 42 days after agreement?
What is the consequence if the Contractor fails to extend the validity of the Performance Security or pay the Employer an amount due within 42 days after agreement?
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Under what circumstances can the Employer claim the full amount of the Performance Security?
Under what circumstances can the Employer claim the full amount of the Performance Security?
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What action must the Contractor take if the Employer requests an increase in Performance Security?
What action must the Contractor take if the Employer requests an increase in Performance Security?
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What should the Employer do if it was not entitled to make a claim under the Performance Security?
What should the Employer do if it was not entitled to make a claim under the Performance Security?
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What must the Contractor do before the Commencement Date regarding the proposed Contractor’s Representative?
What must the Contractor do before the Commencement Date regarding the proposed Contractor’s Representative?
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Where should the Contractor’s Representative be based for the entire duration of the Works?
Where should the Contractor’s Representative be based for the entire duration of the Works?
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Under what circumstances can a suitable replacement for the Contractor’s Representative be temporarily appointed?
Under what circumstances can a suitable replacement for the Contractor’s Representative be temporarily appointed?
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What is the time frame for the Contractor to deliver the Performance Security to the Employer?
What is the time frame for the Contractor to deliver the Performance Security to the Employer?
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Under what circumstances can the Employer make a claim under the Performance Security?
Under what circumstances can the Employer make a claim under the Performance Security?
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When can the Contractor modify any design or Contractor’s Documents that have been submitted for Review?
When can the Contractor modify any design or Contractor’s Documents that have been submitted for Review?
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What is the requirement for the validity of the Performance Security?
What is the requirement for the validity of the Performance Security?
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Under what conditions shall construction of a part of the Works be suspended?
Under what conditions shall construction of a part of the Works be suspended?
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What is the time frame for the Contractor to submit the Contractor’s Documents for a part of the Permanent Works to the Engineer for Review?
What is the time frame for the Contractor to submit the Contractor’s Documents for a part of the Permanent Works to the Engineer for Review?
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What happens if Variations and/or adjustments result in an accumulative increase or decrease of the Contract Price by more than twenty percent (20%) of the Accepted Contract Amount?
What happens if Variations and/or adjustments result in an accumulative increase or decrease of the Contract Price by more than twenty percent (20%) of the Accepted Contract Amount?
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What is the timeframe for delivering the Performance Security to the Employer?
What is the timeframe for delivering the Performance Security to the Employer?
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Under what circumstances must the Contractor suspend work on a part of the Works relevant to a design or Contractor’s Documents under review?
Under what circumstances must the Contractor suspend work on a part of the Works relevant to a design or Contractor’s Documents under review?
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What is the Contractor responsible for in terms of the Performance Security?
What is the Contractor responsible for in terms of the Performance Security?
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Under what condition must the Contractor extend the validity of the Performance Security?
Under what condition must the Contractor extend the validity of the Performance Security?
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What must the Contractor do if there is a cumulative increase or decrease of the Contract Price by more than twenty percent due to Variations and/or adjustments?
What must the Contractor do if there is a cumulative increase or decrease of the Contract Price by more than twenty percent due to Variations and/or adjustments?
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What is the Contractor responsible for regarding the submission of Contractor’s Documents for review?
What is the Contractor responsible for regarding the submission of Contractor’s Documents for review?
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What is the Contractor responsible for in terms of the design of any part of the Permanent Works?
What is the Contractor responsible for in terms of the design of any part of the Permanent Works?
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Study Notes
Conditions of Contract for Construction
- The Contractor must promptly increase the Performance Security if the Employer requests an increase, and Sub-Clause 13.3.1 applies if the Contractor incurs costs as a result of the increase.
- The Contractor may decrease the Performance Security with the Employer's consent if there is a decrease in the amount needed.
- The Employer can claim the full amount of the Performance Security if the Contractor fails to extend its validity or pay the Employer an amount due within 42 days after agreement.
- The Employer can also claim the full amount of the Performance Security if the Contractor fails to remedy a default within 42 days.
- The Employer must indemnify and hold the Contractor harmless from damages, losses, and expenses resulting from a claim under the Performance Security if the Employer was not entitled to make the claim.
- Any amount received by the Employer under the Performance Security should be taken into account in the Final Payment Certificate or in payment due to the Contractor if the Contract is terminated.
- The Employer should return the Performance Security to the Contractor under certain conditions.
- The Contractor must appoint a qualified Contractor’s Representative with necessary authority to act on the Contractor’s behalf under the Contract.
- Before the Commencement Date, the Contractor must submit the proposed Contractor’s Representative to the Engineer for consent.
- The Contractor’s Representative should be based at the Site for the entire duration of the Works and may delegate powers except within 21 days after the issue of the Performance Certificate and the Contractor complying with Sub-Clause 11.
- The Contractor’s Representative must act for and on behalf of the Contractor at all times, including issuing and receiving all Notices and other communications under Sub-Clause 1.3 and for receiving instructions under Sub-Clause 3.5.
- A suitable replacement for the Contractor’s Representative may be temporarily appointed with the Engineer’s prior consent if the Representative is temporarily absent from the Site during the execution of the Works.
Contractor's Obligations and Performance Security in Construction Contracts
- The Contractor must submit details of the arrangements and methods for executing the Works to the Engineer when required.
- No significant alteration to the arrangements and methods can be made without submission to the Engineer.
- If the Contract specifies that the Contractor shall design any part of the Permanent Works, the Contractor must prepare and submit the Contractor’s Documents for review by the Engineer.
- The Contractor is responsible for obtaining a Performance Security to ensure proper performance of the Contract, in the amount and currencies stated in the Contract Data.
- The Performance Security must be delivered to the Employer within 28 days after receiving the Letter of Acceptance.
- The Performance Security should be issued by an entity and from within a country to which the Employer gives consent and must remain valid and enforceable until the issue of the Performance Certificate.
- In the event of Variations and/or adjustments resulting in a cumulative increase or decrease of the Contract Price by more than twenty percent, the Contractor must submit reasons for the increase or decrease to the Engineer.
- If construction has commenced on a part of the Works relevant to a design or Contractor’s Documents under review, work on this part shall be suspended until a Notice of No-objection is given by the Engineer.
- The Contractor is responsible for ensuring that the part of the Works is fit for the purpose specified in the Contract and complies with technical standards and laws.
- The Contractor must submit Contractor’s Documents for the relevant part in accordance with Sub-Clause 4.4.2 [As-built Records] and/or Sub-Clause 4.4.3 [Operation and Maintenance Manuals] if applicable.
- The Employer shall not make a claim under the Performance Security, except for amounts to which the Employer is entitled under the Contract in specific events.
- The Contractor is obligated to extend the validity of the Performance Security if the Contractor has not become entitled to receive the Performance Certificate by the specified expiry date.
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Description
Test your knowledge on the conditions of contract for construction, including the obligations of the contractor and the concept of performance security as outlined in construction contracts. This quiz covers key provisions related to the submission, validity, and enforcement of performance security, as well as the responsibilities of the contractor in executing the works.
