Silver 2017-16-20 PDF - General Conditions of Contract
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This document outlines general conditions of contract for project management. It covers topics on staff and labour, payment, and commencement of project works.
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the Employer’s Requirements and the Schedule of Performance Guarantees; and (ii) (b) operate, maintain, dismantle, reassemble, adjust and repair the Plant; and include an inventory of spare parts required for the Employer’s future operation and maintenance of the Plant. Before commencement of the...
the Employer’s Requirements and the Schedule of Performance Guarantees; and (ii) (b) operate, maintain, dismantle, reassemble, adjust and repair the Plant; and include an inventory of spare parts required for the Employer’s future operation and maintenance of the Plant. Before commencement of the Tests on Completion, the Contractor shall submit provisional O&M Manuals for the Works or Section (as the case may be) to the Employer under Sub-Clause 5.2.2 [Review by Employer]. L A R E N E G E C N A D I U G If during the Tests Completion anypromptly error or defect found the provisional O&M Manuals, theon Contractor shall rectify isthe errorinor defect at the Contractor’s risk and cost. Before the issue of any Taking-Over Certificate under Sub-Clause 10.1 [Taking Over the Works and Sections ], the final O&M Manuals shall be submitted to the Employer under Sub-Clause 5.2.2 [Review by Employer]. 5.8 If errors, omissions, ambiguities, inconsistencies, inadequacies or other defects are found in the Contractor’s design and/or the Contractor’s Documents, they and the Works shall be corrected in accordance with Sub-Clause 7.5 Defects [ and Rejection]. If such Contractor’s Documents were previously the subject of a Notice of No-objection given (or deemed to be given) by the Employer under Sub-Clause 5.2.2 [Review by Employer], the provisions of Sub-Clause 5.2.2 shall apply as if the Employer had given a Notice in respect of the Contractor’s Documents under sub-paragraph (b) of Sub-Clause 5.2.2. Design Error 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 All corrections and resubmissions under this Sub-Clause shall be at the Contractor’s risk and cost. 6 Staff and Labour 6.1 Engagement of Staff and Labour Except as otherwise stated in the Specification, the Contractor shall make arrangements for the engagement of all Contractor’s Personnel, and for their payment, accommodation, feeding, transport and welfare. 6.2 Rates of Wages and Conditions of Labour The Contractor shall pay rates of wages, and observe conditions of labour, which comply with all applicable Laws and are not lower than those established for the trade or industry where the work is carried out. If no established rates or conditions are applicable, the Contractor shall pay rates of wages and observe conditions which are not lower than the general level of wages and conditions observed locally by employers whose trade or industry is similar to that of the Contractor. 6.3 Recruitment of Persons The Contractor shall not recruit, or attempt to recruit, staff and labour from amongst the Employer’s Personnel. is h T General Conditions © FIDIC 2017 37 S M R O F S N IO T I D N O C L A R E N E G If the Contractor fails to comply with the Employer’s instruction, the Employer may (at the Employer’s sole discretion) employ and pay other persons to carry out the work. Except to the extent that the Contractor would have been entitled to payment for work under this Sub-Clause, the Employer shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment by the Contractor of all costs arising from this failure. This entitlement shall be without prejudice to any other rights the Employer may have, under the Contract or otherwise. S N O I T I D N O C E C N A D I U G 7.7 Ownership of Plant Each item of requirements Plant and Materials shall, extentbecome consistent with the of mandatory of the Laws of to thethe Country, the property the Employer at whichever is the earlier of the following times, free from liens and other encumbrances: and Materials 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) when it is delivered to the Site; (b) when the Contractor is paid the value of the Plant and Materials under Sub-Clause 8.11 [Payment for Plant and Materials after Employer’s Suspension]; or (c) when the Contractor is paid the amount determined for the Plant and Materials under Sub-Clause 14.5 [Plant and Materials intended for the Works]. 7.8 Unless otherwise stated in the Employer’s Requirements, the Contractor shall pay all royalties, rents and other payments for: Royalties (a) natural Materials obtained from outside the Site; and (b) the disposal of material from demolitions and excavations and of other surplus material (whether natural or man-made), except to the extent that disposal areas within the Site are specified in the Employer’s Requirements. 8 Commencement, Delays and Suspension 8.1 Commencement of Works Unless the Commencement Date is stated in the Contract Agreement, the Employer shall give a Notice to the Contractor stating the Commencement Date not less than 14 days before the Commencement Date. Unless otherwise stated in the Particular Conditions, the Commencement Date shall be within 42 days after the date on which the Contract comes into full force and effect under Sub-Clause 1.6 [ Contract Agreement]. The Contractor shall commence the execution of the Works on, or as soon as is reasonably practicable after, the Commencement Date and shall then proceed with the Works with due expedition and without delay. 8.2 Time for Completion The Contractor shall complete the whole of the Works, and each Section (if any), within the Time for Completion for the Works or Section (as the case may be), including completion of all work which is stated in the Contract as being required for the Works or Section to beconsidered to be completed for the purposes of taking over under Sub-Clause 10.1Taking [ Over the Works and Sections ]. is h T 44 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects (a) the work on Plant, or delivery of Plant and/or Materials, has been suspended for more than 28 days and (i) (ii) (b) the Plant and/or Materials were scheduled, in accordance with the Programme, to have been completed and ready for delivery to the Site during the suspension period; and the Contractor provides the Employer with reasonable evidence that the Plant and/or Materials comply with the Contract; and the Contractor has marked the Plant and/or Materials as the Employer’s property in accordance with the Employer’s instructions. 8.12 Prolonged Suspension If the suspension under Sub-Clause 8.9 [ Employer’s Suspension] has continued for more than 84 days, the Contractor may give a Notice to the Employer requesting permission to proceed. If the Employer does not give a Notice under Sub-Clause 8.13 [ Resumption of Work] within 28 days after receiving the Contractor’s Notice under this Sub-Clause, the Contractor may either: (a) 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 agree to a further suspension, in which case the Parties may agree the EOT and/or Cost Plus Profit (if the Contractor incurs Cost), and/or payment for suspended Plant and/or Materials, arising from the total period of suspension; or (and if the Parties fail to reach agreement under this sub-paragraph (a)) (b) after giving a (second) Notice to the Employer, treat the suspension as an omission of the affected part of the Works (as if it had been instructed under Sub-Clause 13.3.1 [Variation by Instruction]) with immediate effect including release from any further obligation to protect, store and secure under Sub-Clause 8.9 [ Employer’s Suspension]. If the suspension affects the whole of the Works, the Contractor may give a Notice of termination under Sub-Clause 16.2 [Termination by Contractor ]. 8.13 Resumption of Work The Contractor shall resume work as soon as practicable after receiving a Notice from the Employer to proceed with the suspended work. At the time stated in this Notice (if not stated, immediately after the Contractor receives this Notice), the Contractor and the Employer shall jointly examine the Works and the Plant and Materials affected by the suspension. The Employer shall record any deterioration, loss, damage or defect in the Works or Plant or Materials which has occurred during the suspension and shall provide this record to the Contractor. The Contractor shall promptly make good all such deterioration, loss, damage or defect so that the Works, when completed, shall comply with the Contract. 9 Tests on Completion 9.1 Contractor’s Obligations The Contractor shall carry out the Tests on Completion in accordance with this Clause and Sub-Clause 7.4 [Testing by the Contractor], after submitting the documents under Sub-Clause 5.6 [As-Built Records] and Sub-Clause 5.7 [Operation and Maintenance Manuals]. is h T General Conditions © FIDIC 2017 L A R E N E G 49 E C N A D I U G S M R O F S N IO T I D N O C L A R E N E G The Contractor shall submit to the Employer, not less than 42 days before the date the Contractor intends to commence the Tests on Completion, a detailed test programme showing the intended timing and resources required for these tests. S N O I T I D N O C The Employer may Review the proposed test programme and may give a Notice to the Contractor stating the extent to which it does not comply with the Contract. Within 14 days after receiving this Notice, the Contractor shall revise the test programme to rectify such non-compliance. If the Employer gives no such Notice within 14 days after receiving the test programme (or revised test programme), the Employer shall be deemed to have given a Notice of No-objection. The Contractor shall not commence the Tests on E C N A D I U G Completion until a Notice of No-objection is given (or is deemed to have been given) by the Employer. S M R O F In addition to any date(s) shown in the test programme, the Contractor shall give a Notice to the Employer, of not less than 21 days, of the date after which the Contractor will be ready to carry out each of the Tests on Completion. The Contractor shall commence the Tests on Completion within 14 days after this date, or on such day or days as the Employer shall instruct, and shall proceed in accordance with the Contractor’s test programme to which the Employer has given (or is deemed to have given) a Notice of No-objection. 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 Unless otherwise stated in the Employer’s Requirements, the Tests on Completion shall be carried out in stages in the following sequence: (a) pre-commissioning tests (on or off the Site, as appropriate), which shall include the appropriate inspections and (“dry” or “cold”) functional tests to demonstrate that each item of the Works or Section can safely undertake the next stage under sub-paragraph (b) below; commissioning tests, which shall include the operational tests specified in the Employer’s Requirements to demonstrate that the Works or Section can be operated safely and as specified in the Employer’s Requirements, under all available operating conditions; and (b) (c) trial operation (to the extent possible under available operating conditions), which shall demonstrate that the Works or Section perform reliably and in accordance with the Contract. The tests of each stage described in sub-paragraphs (b) and (c) above shall not be commenced until the Works or Section have passed the previous stage. During trial operation, when the Works or Section (as the case maybe) are operating under stable conditions, the Contractor shall give a Notice to the Employer that they are ready for any other Tests on Completion, including performance tests. Performance tests shall be carried out to demonstrate whether the Works or Section comply with the performance criteria specified in the Employer’s Requirements and with the Schedule of Performance Guarantees. Trial operation, including performance testing, shall not constitute a taking-over under Clause 10 [Employer’s Taking Over]. Any product produced by, and any revenue or other benefit resulting from, trial operation under this Sub-Clause shall be the property of the Employer. As soon as the Works or Section have, in the Contractor’s opinion, passed each stage of the Tests on Completion described in sub-paragraphs (a) to is h T 50 © FIDIC 2017 Conditions of Contract for EPC/Turnkey Projects (c) above, the Contractor shall submit a certified report of the results of these tests to the Employer. The Employer shall Review each such report and may give a Notice to the Contractor stating the extent to which the results of the tests do not comply with the Contract. If the Employer does not give such a Notice within 14 days after receiving the results of the tests, the Employer shall be deemed to have given a Notice of No-objection. In considering the results of the Tests on Completion, the Employer shall make allowances for the effect of use of (any part of) the Works by the Employer on the performance or other characteristics of the Works. L A R E N E G E C N A D I U G 9.2 If the Contractor has given a Notice under Sub-Clause 9.1 [ Contractor’s Obligations] that the Works or Section (as the case may be) are ready for Tests on Completion, and these tests are unduly delayed by the Employer’s Personnel or by a cause for which the Employer is responsible, Sub-Clause 10.3 [Interference with Tests on Completion] shall apply. Delayed Tests 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 the Tests on Completion are unduly delayed by the Contractor, the Employer may by giving a Notice to the Contractor require the Contractor to carry out the tests within 21 days after receiving the Notice. The Contractor shall carry out the tests on such day or days within this period of 21 days as the Contractor may fix, for which the Contractor shall give a prior Notice to the Employer of not less than 7 days. If the Contractor fails to carry out the Tests on Completion within this period of 21 days: (a) (b) after a second Notice is given by the Employer to the Contractor, the Employer’s Personnel may proceed with the tests; the Contractor may attend and witness these tests; (c) within 28 days of these tests being completed, the Employer shall send a copy of the test results to the Contractor; and (d) if the Employer incurs additional costs as a result of such testing, the Employer shall be entitled subject to Sub-Clause 20.2 [Claims For Payment and/or EOT] to payment by the Contractor of the costs reasonably incurred. Whether or not the Contractor attends, these Tests on Completion shall be deemed to have been carried out in the presence of the Contractor and the results of these tests shall be accepted as accurate. 9.3 Retesting If the Works, or a Section, fail to pass the Tests on Completion, Sub-Clause 7.5 [Defects and Rejection] shall apply. The Employer or the Contractor may require these failed tests, and the Tests on Completion on any related work, to be repeated under the same terms and conditions. Such repeated tests shall be treated as Tests on Completion for the purposes of this Clause. 9.4 Failure to Pass Tests on Completion If the Works, or a Section, fail to pass the Tests on Completion repeated under Sub-Clause 9.3 [ Retesting], the Employer shall be entitled to: (a) (b) is h T General Conditions © FIDIC 2017 order further repetition of Tests on Completion under Sub-Clause 9.3 [Retesting ]; reject the Works if the effect of the failure is to deprive the Employer of 51 S M R O F S N IO T I D N O C