Summary

This document provides details about the General Conditions of a contract, outlining procedures for resolving disputes and agreements between parties. It contains clauses related to consultation, determining claims, and addressing disagreements with the Employer's representative. The document is useful for project managers and professionals involved in construction projects.

Full Transcript

[Consultation to reach agreement]. L A R E N E G If the Employer’s Representative does not give the Notice of agreement or determination within the relevant time limit, (i) (ii) 3.5.4 in the case of a Claim, the Employer’s Representative shall be deemed to have given a determination rejecting the...

[Consultation to reach agreement]. L A R E N E G If the Employer’s Representative does not give the Notice of agreement or determination within the relevant time limit, (i) (ii) 3.5.4 in the case of a Claim, the Employer’s Representative shall be deemed to have given a determination rejecting the Claim; or in the case of a matter to be agreed or determined, the matter shall be deemed to be a Dispute which may be referred by either Party to the DAAB for its decision under Sub-Clause 21.4 [Obtaining DAAB’s Decision] without the need for a NOD (and Sub-Clause 3.5.5 [Dissatisfaction with Employer’s Representative’s determination] and sub-paragraph (a) of Sub-Clause 21.4.1 [Reference of a Dispute to the DAAB] shall not apply). S M R O F Effect of the agreement or determination Each agreement or determination shall be binding on both Parties unless and until corrected under this Sub-Clause or, in the case of a determination, it is revised under Clause 21 [Disputes and Arbitration]. If an agreement or determination concerns the payment of an amount from one Party to the other Party, the Contractor shall include such an amount in the next Statement and the Employer shall include such amount in the next payment under Sub-Clause 14.7 [ Interim Payment] or 14.13 [Final Payment] (as the case may be) that follows that Statement. rg .o ic d fi. w w w T A E L A S R O F L A N I G IR O E L B A T IN R P T O N D N A E S U T C A R T N O C R O F T O N m r fo t la p is x e N is x e L e th in h it w n o ti u b rit s i d r o f d e t c rit s e r s i t n e m u c o d If, within 14 days after giving or receiving the Employer’s Representative’s Notice of agreement or determination, any error of a typographical or clerical or arithmetical nature is found: (a) by the Employer’s Representative: then he/she shall immediately advise the Parties accordingly; or (b) by a Party: then that Party shall give a Notice to the other Employer’s Representative stating that it is given under this Sub-Clause 3.5.4 and clearly identifying the error. If the Employer’s Representative does not agree there was an error he/she shall immediately advise the Parties accordingly. The Employer’s Representative shall within 7 days after finding the error, or after receiving a Notice under sub-paragraph (b) above (as the case may be), give a Notice to both Parties of the corrected agreement or determination. Thereafter, the corrected agreement or determination shall be treated as the agreement or determination for the purpose of these Conditions. 3.5.5 Dissatisfaction with Employer’s Representative’s determination If either Party is dissatisfied with a determination of the Employer’s Representative: (a) the dissatisfied Party may give a NOD to the other Party, with a copy to the Employer’s Representative; (b) this NOD shall state that it is a “Notice of Dissatisfaction with the Employer’s Representative’s Determination” and shall set out the reason(s) for dissatisfaction; (c) is h T General Conditions © FIDIC 2017 E C N A D I U G this NOD shall be given within 28 days after receiving the Employer’s Representative’s Notice of the determination under Sub-Clause 3.5.2 [Employer’s Representative’s Determination] or, if applicable, his/ 19 S N IO T I D N O C L A R E N E G her Notice of the corrected determination under Sub-Clause 3.5.4 [Effect of the agreement or determination ] (or, in the case of a deemed determination rejecting the Claim, within 28 days after the time limit for determination under Sub-Clause 3.5.3 [Time limits] has expired); and S N O I T I D N O C (d) thereafter, either Party may proceed under Sub-Clause 21.4 [ DAAB’s Decision]. Obtaining If no NOD is given by either Party within the period of 28 days stated in sub-paragraph (c) above, the determination of the Employer’s Representative shall be deemed to have been accepted by both Parties and be final and binding on them. E C N A D I U G If the dissatisfied Party is dissatisfied with only part(s) of the Employer’s Representative’s determination: S M R O F rg .o ic d fi. w w w T A E L A S R O F L A N I G IR O E L B A T IN R P T O N D N A E S U T C A R T N O C R O F T O N m r fo t la p is x e N is x e L e th in h it w n o ti u b rit s i d r o f d e t c rit s e r s i t n e m u c o d (i) this part(s) shall be clearly identified in the NOD; (ii) this part(s), and any other parts of the determination that are affected by such part(s) or rely on such part(s) for completeness, shall be deemed to be severable from the remainder of the determination; and (iii) the remainder of the determination shall become final and binding on both Parties as if the NOD had not been given. In the event that a Party fails to comply with an agreement of the Parties under this Sub-Clause 3.5 or a final and binding determination of the Employer’s Representative, the other Party may, without prejudice to any other rights it may have, refer the failure itself directly to arbitration under Sub-Clause 21.6 [Arbitration] in which case the first and the third paragraphs of Sub-Clause 21.7 [Failure to Comply with DAAB’s Decision] shall apply to such reference in the same manner as these paragraphs apply to a final and binding decision of the DAAB. 3.6 Meetings Either Party may require the other Party to attend a management meeting to discuss arrangements for future work and/or other matters in connection with execution of the Works. The Employer’s other contractors, the personnel of legally constituted public authorities and/or private utility companies, and/or Subcontractors may attend any such meeting, if requested by either Party. The Employer shall keep a record of each management meeting and supply copies of the record to those attending. At any such meeting, and in the record, responsibilities for any actions to be taken shall be in accordance with the Contract. The Contractor 4.1 Contractor’s 4 General Obligations The Contractor shall execute the Works in accordance with the Contract. When completed, the Works (or Section or major item of Plant, if any) shall be fit for the purpose(s) for which they are intended, as defined and described in the Employer’s Requirements or, where no purpose(s) are so defined and described, fit for their ordinary purpose(s). is h T 20 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects L A R E N E G S N O I T I D N O C All these persons shall be fluent in the language for communications defined in Sub-Clause 1.4 [Law and Language]. 4.4 The Contractor shall not subcontract: Subcontractors (a) E C N A D I U G works with a total accumulated value greater than the percentage stated in the Contract Data of the Contract Price stated in the Contract Agreement (if no such percentage is stated, the whole of the Works); or (b) any part of the Works for which subcontracting is not permitted as stated in the Contract Data. The Contractor shall be responsible for the work of all Subcontractors, for managing and coordinating all the Subcontractors’ works, and for the acts or defaults of any Subcontractor, any Subcontractor’s agents or employees, as if they were the acts or defaults of the Contractor. S M R O F Where specified in the Contract Data, the Contractor shall give a Notice to the Employer not less than 28 days before: rg .o ic d fi. w w w T A E L A S R O F L A N I G IR O E L B A T IN R P T O N D N A E S U T C A R T N O C R O F T O N m r fo t la p is x e N is x e L e th in h it w n o ti u b rit s i d r o f d e t c rit s e r s i t n e m u c o d (i) the intended appointment of a Subcontractor, with detailed particulars which shall include the Subcontractor’s relevant experience, (ii) the intended commencement of the Subcontractor’s work, and (iii) the intended commencement of the Subcontractor’s work on the Site. 4.5 Nominated In this Sub-Clause, “nominated Subcontractor” means a Subcontractor named as such in the Employer’s Requirements or whom the Employer, under Sub-Clause 13.4 [Provisional Sums], instructs the Contractor to employ as a Subcontractor. Subcontractors 4.5.1 Objection to Nomination The Contractor shall not be under any obligation to employ a nominated Subcontractor whom the Employer instructs and against whom the Contractor raises reasonable objection by giving a Notice to the Employer, with detailed supporting particulars, no later than 14 days after receiving the Employer’s instruction. An objection shall be deemed reasonable if it arises from (among other things) any of the following matters, unless the Employer agrees to indemnify the Contractor against and from the consequences of the matter: (a) there are reasons to believe that the Subcontractor does not have sufficient competence, resources or financial strength; (b) the subcontract does not specify that the nominated Subcontractor shall indemnify the Contractor against and from any negligence or misuse of Goods by the nominated Subcontractor, the nominated Subcontractor’s agents and employees; or (c) the subcontract does not specify that, for the subcontracted work (including design, if any), the nominated Subcontractor shall: (i) undertake to the Contractor such obligations and liabilities as will enable the Contractor to discharge the Contractor’s corresponding obligations and liabilities under the Contract; and is h T 24 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects L A R E N E G these activities with those of other contractors to the extent (if any) specified in the Employer’s Requirements or as instructed by the Employer. S N O I T I D N O C E C N A D I U G If the Contractor suffers delay and/or incurs Cost as a result of an instruction under this Sub-Clause, to the extent (if any) that co-operation, allowance of opportunities and coordination was Unforeseeable having regard to that specified in the Employer’s Requirements, the Contractor shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or EOT] to EOT and/ or payment of such Cost Plus Profit. 4.7 The Contractor shall set out the Works in relation to the items of reference Setting Out under Sub-Clause 2.5 [ Site Data and Items of Reference ]. The Contractor shall: S M R O F rg .o ic d fi. w w w T A E L A S R O F L A N I G IR O E L B A T IN R P T O N D N A E S U T C A R T N O C R O F T O N m r fo t la p is x e N is x e L e th in h it w n o ti u b rit s i d r o f d e t c rit s e r s i t n e m u c o d (a) verify the accuracy of all these items of reference before they are used for the Works; (b) rectify any error in the items of reference, positions, levels, dimensions or alignment of the Works; and (c) be responsible for the correct positioning of all parts of the Works. 4.8 Health and Safety The Contractor shall: Obligations (a) comply with all applicable health and safety regulations and Laws; (b) comply with all applicable health and safety obligations specified in the Contract; (c) comply with all directives issued by the Contractor’s health and safety officer (appointed under Sub-Clause 6.7 [ Health and Safety of Personnel (d) take care of the health and safety of all persons entitled to be on the Site and other places (if any) where the Works are being executed; (e) keep the Site, Works (and the other places (if any) where the Works are being executed) clear of unnecessary obstruction so as to avoid danger to these persons; (f) provide fencing, lighting, safe access, guarding and watching of: (i) the Works, until the Works are taken over under Clause 10 [Employer’s Taking Over]; and (ii) any part of the Works where the Contractor is executing outstanding works or remedying any defects during the DNP; and (g) provide any Temporary Works (including roadways, footways, guards and fences) which may be necessary, because of the execution of the Works, for the use and protection of the public and of owners and occupiers of adjacent land and property. Within 21 days of the Commencement Date and before commencing any construction on the Site, the Contractor shall submit to the Employer for information a health and safety manual which has been specifically prepared for the Works, the Site and other places (if any) where the Contractor intends to execute the Works. This manual shall be in addition to any other similar document required under applicable health and safety regulations and Laws. The health and safety manual shall set out all the health and safety requirements: is h T 26 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects L A R E N E G Contractor is a JV, this obligation shall apply to each member of the JV. S N O I T I D N O C 4.9.2 Compliance Verification System The Contractor shall prepare and implement a Compliance Verification System to demonstrate that the design, Materials, Employer-Supplied Materials (if any), Plant, work and workmanship comply in all respects with the Contract. E C N A D I U G The Compliance Verification System shall be in accordance with the details stated in the Employer’s Requirements (if any) and shall include a method for reporting the results of all inspections and tests carried out by the Contractor. In the event that any inspection or test identifies a non-compliance with the Contract, Sub-Clause 7.5 [Defects and Rejection] shall apply. 4.9.3 S M R O F General provision Compliance with the QM System and/or Compliance Verification System shall not relieve the Contractor from any duty, obligation or responsibility under or in connection with the Contract. 4.10 rg .o ic d fi. w w w T A E L A S R O F L A N I G IR O E L B A T IN R P T O N D N A E S U T C A R T N O C R O F T O N m r fo t la p is x e N is x e L e th in h it w n o ti u b rit s i d r o f d e t c rit s e r s i t n e m u c o d The Contractor shall be responsible for verifying and interpreting all data made available by the Employer under Sub-Clause 2.5 [ Site Data and Items of Reference]. Use of Site Data 4.11 Sufciency of the Contract Price The Contractor shall be deemed to have satisfied himself/herself as to the correctness and sufficiency of the Contract Price stated in the Contract Agreement. Unless otherwise stated in the Contract, the Contract Price stated in the Contract Agreement shall be deemed to cover all the Contractor’s obligations under the Contract and all things necessary for the proper execution of the Works in accordance with the Contract. 4.12 Except as otherwise stated in the Particular Conditions: Unforeseeable Difculties (a) (b) (c) the Contractor shall be deemed to have obtained all necessary information as to risks, contingencies and other circumstances which may influence or affect the Works; by signing the Contract Agreement, the Contractor accepts total responsibility for having foreseen all difficulties and costs of successfully completing the Works; and the Contract Price shall not be adjusted to take account of any Unforeseeable or unforeseen difficulties or costs. 4.13 Rights of Way and Facilities The Contractor shall bear all costs and charges for special and/or temporary rights-of-way which may be required for the purposes of the Works, including those for access to the Site. The Contractor shall also obtain, at the Contractor’s risk and cost, any additional facilities outside the Site which may be required for the purposes of the Works. is h T 28 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects

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