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There must be compensation from the employer for the contractor against any
expense, liability, loss, claim or proceedings whatsoever arising as a result of injury to or
death of any persons in the course of carrying out the works. The compensation shall also
cover any property real or personal property of the person that was damaged as a result of
carrying out the works and the same will be applied to anybody that has connections with the
contract at hand.

However, works and site materials in any of the locations that have been approved by
the architect are excluded from the real or personal property.

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 Without causing any harm unnecessarily to the employer as to the right of the
contractor as it was stated in clause 18, the contractor can and also make any sub-contractor
to take out and maintain such insurances necessary to cover their liability in respect of
personal injury or death arising out of or in the course of carrying out the work as the law of
the insurance may apply to the individual involved.

An evidence shall be shall be provided to Architect for inspection documentary


evidence that the said insurance(s) has been taking out and are being maintained. And they
(Architect or Employer) shall produce such as receipts in questions. But if the contractor
fails or caused any sub-contractor to take out and maintain, his insurance, the Employer may
himself insure against any liability or expenses and the amount of money spent shall be
deducted from the monies due to the contractor.

Where a provisional sum is included in the contract bill in respect of the insurance to
which this clause refers the contractor shall maintain in the joint names of the employer and
the contractor insurance(s) for such amount(s) of indemnity, then any amount(s) expended by
the contractor in the cause shall be an adjustment to the contract sum and shall be approved
by the architect and the employer so as to provide such as receipts in respect of premiums
paid.

Though the contractor may be liable risks, however there expected damages that will
occur before the contractor can be liable. The expected damages are those cause by the
negligence, omission of the contractor, his staff or agent(s), an attribute to errors or omissions
in the designing of the works, which can reasonably be foreseen to be inevitable having
regard to the nature of the work to be executed or the manner of its execution, which is the
responsibility of the employer to insure.

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 For the erection of new buildings, the contractor shall take out and maintain in the
joint names of the employer and contractor a policy for all risks insurance to cover for full
reinstatement value of the works and this shall be maintained up to the time of practical
completion. The contractor can also if he wishes do a single policy of insurance approved by
Employer and the contractor shall send to Architect for deposit with the employer. If the
Contractor fails to take out and maintain such policy against any risk, then the Employer may
himself take out and maintain it due to the contractor¶s failure and any sum(s) he spent in the
cause shall be equivalent and be deducted from the money or monies due to the contractor.
The contractor can also use annual policy of insurance whereby the employer shall approve
of renewal of the annual insurance policy whenever it expires.

Furthermore, if there is loss or damages to the works, the contractor or shall restore all
the damages, then after inspection by the insurer in respect of a claim under the policy the
employer shall be pay such money or monies to the contractor by installments under
certificates of the Architect issued at the period of interim certificates. And the contractor
shall not be entitled to any payment in respect of the restoration, replacement or repair of
such loss or damage and the removal and disposal of debris other than the money or monies
received under the aforesaid insurance.

   



     
 

 For the erection of new buildings, the employer shall take out and maintain a policy of
insurance to cover for full reinstatement value of the works and shall maintain such policy up
to and including the date of issue of the certificate of practical completion. If the Employer
fails to take out and maintain such policy against any risk, then the Employer may himself
take out and maintain it due to the Employer¶s failure and any sum(s) he spent in the cause
shall be equivalent and be added to the money or monies due to the contractor. This shall
cause a change in the contract sum.
  

 
   
 
     

The employer shall take out and maintain a policy for All Risks Insurance in respect
of the existing structures and all the content of the building which he is responsible for
replacement of loss or repair of loss of full damage, cost of reinstatement. He shall instruct
the insurer to pay all monies to the recognized contractors. For extensions to the existing
structures, the employer shall take out and maintain a policy for all risks insurance in a joint
name of the employer and the contractor. But if the Employer fails to insure the right of
contractor, then if the contractor should take out and maintain the damages himself, the
amount spent shall be added to the contract sum.

For loss or damage to existing works, the contractor shall in writing notify the
Architect and to the employer of the extent, nature and location of the damage. If there is no
response from the Architect within 7 days, the employment of the contractor under this
contract may within 20 days be judge on the basis of whether either party has evidence of
notification and responses. If the arbitrator decides against the notice of determination, then
the contractor shall diligently restore such work damaged, replace or repair any such
materials on site which have been lost or damaged, remove and dispose of any debris and
proceed with the carrying out and completion of the works and such shall be treated as
variations required of the Architect.

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Upon the appointment of the contractor and the site being made available to the
Contractor free of all encumbrances by the Employer, the employer shall fix a date to
mobilize the contractor and it shall be the commencement date of the work. And the
contractor shall diligently continue the work till the stated completion date. If no prejudice to
any other rights and obligations under this contract, the Architect may issue instruction to
postpone any work to be executed under the provisions of this contract.

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If the contractor fails to complete the works by the date for completion as agreed for
this contract or within the fixed extension, and the Architect certifies in writing that the work
supposed to have finished in his opinion, then the contractor shall hold himself responsible
for any loss or damaged cased during that incomplete period and the Employer may deduct
such sum from any money or monies due to the contractor under this contract.
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If it is now becoming reasonable apparent that the progress of works is delayed, the
contractor shall inform the Architect in writing, and if the Architect feels the work is likely to
be delayed beyond the completion date stated in the appendix, and the delay might be
because of war, unexpected inclement weather, contingencies or due to loss or damage by
anyone, or due to civil commotion, local combination of workman, strike or lockout affecting
any tradesman engaged in the site work, architect instructions, by reason of the contractor not
having received message from architect instructions or approvals, or delays caused by
subcontractors, by the delay on the part of artists, tradesmen others engaged by the Employer
in executing works that her not part of the contract, by reason of any opening up of any work
covered up or of the testing of any of the materials, or delay caused by the employer. Then
the architect can assume the new completion period of the work. Except under specific
conditions, he is not entitled to additional payment.

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If an extension of time is granted pursuant to clause 23 and due to reasons that; the
contractor not having received important information at its due time, the opening up of
inspection of works, any discrepancy or divergence between the contract drawing, delay on
the part of gangs engaged by the employer in executing work not forming part of this
contract, Architects instructions issued in regard to the postponement or suspension of any
work to be executed under the provisions of this contract or delay on the part of the employer.

Any amount from time to time so ascertained shall be added to the contract sum, and
the provisions of these conditions are without prejudice to any other rights and remedies
which the contractor may possess.

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Without any prejudice to any other rights which the employer may possess, if the
Contractor shall default in any one or more in some respects, and continue such default for 14
days after receipt of such notice or repeated such default after sometime, the employer
without prejudice to any other rights, may within 14 days after such continuance or repetition
give to him notice by registered post or recorded delivery and signed by the Employer to
forthwith determine the employment of the contractor under this contract provided that such
notice shall not be given unreasonably. Such respects are; if he stops the work before the
completion without any reasonable cause, or if he doesn¶t proceed regularly and diligently in
carrying out the work, or if he neglects the instructions of the Architect, if he fails to comply
with the provisions of clause 17.

Also if the contractor goes bankrupt, the employment of the contractor shall be
forthwith automatically determined but the said employment bay be reinstated and continued
if the Employer and the contractor, his trustee in bankruptcy, liquidator, receiver or manager
as the case may be shall so agree. But if proved that the contractor is corrupt as to giving an
illegal gift in other to execute the contract with the employer, or any criminal act of that is
punishable under the criminal code of the laws of the Federal Republic of Nigeria, and then
the employment of the contractor may be determined by the Employer.

In the event of the employment of the contractor being determined as aforesaid and as
long as it has not been reinstated and continued, then the employer may employ and pay other
persons to carry out and complete the works and he or they may provide the equipments and
plants needed to carry out the completion of the work. The contractor shall, if so required by
the employer or architect within 14 days of the date or determination, without payment and
the contractor shall be responsible to pay any subcontractor within this period and the
subcontractor can any reasonable objections. If in any case that the employer should pay the
subcontractor, then he shall subtract from the equivalent from the money or monies due to the
contractor.

Furthermore, the employer has the right to sell any such property of the contractor
after a reasonable time, holding the proceeds less all costs incurred to the credit of the
contractor if the contractor fails to remove all his equipments and plants or any machine hired
by him prior to the architect notice in writing, then the Architect shall instruct the quantity
surveyor to prepare the final account for settlement in accordance with clause 30 and the
contractor shall pay the employer any amount of money equivalent to damages he has caused
on the part of the employer. And the employer can make any further payment to the
contractor but all if at the end the Architect provide the final account of the project, then each
parties shall return and payback the excesses or shall subtract from the total amount.

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 Without prejudice to any other rights and remedies which the contractor may possess
if;
1. If the employer do not pay to the contractor the amount due to him as agreed in the
contract, and continue such default for 7 days after notice of determination from the
contractor, or
2. The employer interferes with the issue of any certificate due under this contract or
3. The contractor suspend the work for a particular period due to war, loss or damage or
similar contingencies, civic commotion, Architects instruction issued under clause
1.2, 11.3, 21.2 or 34.2. or the contractor have not received necessary instructions,
drawing details or levels from the architect for which he specifically applied in
writing on a date, or delay on the part of workers engaged by the employer, or the
opening up for inspection of any work covered up or the testing of any of the work,
materials or goods in accordance with clause 6.3.

Then the contractor can now send a message, giving a 14days notice to Architect and the
employer to state his intention to determine his employment under this contract. On this
decision and without any prejudice the contractor or the sub-contractor must have remove his
or her temporary buildings, plant tools, equipments, materials or good. The respective rights
and liabilities of the contractor and the employer shall be as follows:

1. The contractor must, before the period of determination make it liable to indemnify
the Employer of damages, injury, death or any classes of such
2. The contractor shall be paid according to the value or part of work executed in this
contract, and any risk or damage caused by the contractor, the amount shall be
deducted from the amount due to him.

In addition, the contractor shall take over any unfixed material which supposed to be the
property of the employer until the employer settles all the debt of the contractor.

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Nominated sub-contractors are those contractors nominated as a result of Architects


instructions given in regard to the expenditure of provisional sums, in respect of persons to be
nominated by the architect to supply and fix materials or goods to execute work.

The procedures for nomination of sub-contractor are;

1. the architect shall instruct and nominate a sub-contractor and hereby declared to
be sub-contractor employed by the contractor and are referred to as nominated
sub-contractor in these condition provided the nominated subcontractor shall not
be an objection of the contractor. And he, the nominated sub-contractor shall
carryout and complete the sub-contract work to the satisfaction of the architect
and the contractor, he shall observe, perform and comply with the provision of
this contract on the part of contractor and the sub-contractor, and he shall
indemnify any liabilities of the sub-contract to contractor in respect to the sub-
contract to which the contractor is liable to indemnify the Employer under this
contract, and he shall insure and indemnify the contractor against claims in respect
of any negligence, omissions or default of such sub-contractor, his staff or
agent(s), he must complete the sub-contract within the period and the contractor
shall not grant any extension of time without the written consent of the architect
and if he fails to complete the sub-contract work at the stipulated period then he
shall be paid, with the written consent of the Architect, the money due to him for
the stipulated time for the completion only and every payment of the sub-contract
shall be made within 7 days after the contractor has produced the receipts.
2. In the payment of the nominated sub-contractor, the Architect shall instruct the
contractor to pay the nominated sub-contractor all his due except that which the
contractor has the right to deduct from.
3. If the subcontractor fails to pay the nominated sub-contractor, the employer may
take out and pay the nominated sub-contractor and any amount spent in that
respect shall be deducted from the contractor¶s due.
4. The contractor shall not grant any nominated sub-contractor any extension of the
period within which the sub-contract works is to be completed except with the
consent of the Architect.
5. An early payment can be made to the nominated sub-contractor if it is not time for
the final payment of the contractor, then the Architect will prepare the interim
certificate on that note and pay the due amount to the contractor so as to pay the
nominated sub-contractor.
6. The Employer shall still be liable to any Nominated sub-contractor regardless of
any forgoing powers contained in the conditions.
7. The contractor is allowed to prepare tender for works otherwise reserved for a
Nominated sub-contractor and if the tender was approved, he shall not sublet the
work without the consent of the Architect.
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 Nominated suppliers are the suppliers instructed by the Architect to supply materials
or goods to the contractor and shall be declared to be suppliers of the contractor. The
material or goods to be supplied by the supplier shall be to the satisfaction of the Architect
and any he shall replace any defect in the materials and will also bear the expenses incurred
by the contractor as a direct consequence of such defects.

The materials to be supplied will be base on the contractor¶s direction or whenever he


needs the supply and he the nominated subcontractor shall allow 5% discount if make
payment in full within 30 days of the end of the month during which delivery is made.
Furthermore, the nominated supplier shall stop to deliver goods or materials after the
determination of the contractor¶s employment under this contract.

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The contractor shall allow Artist and tradesmen to execute the works that are not
forming part of the contract or others engaged by the employer. In this case, it is the
employer that is responsible for their dues and they are neither nominated sub-contractor.

        

 For the interim certificate, the architect shall issue a certificate stating the amount
during to the contractor from the employer, and the contractor will be paid within the period
for honouring certificates and incase the employer fails to honour the issued certificate, the
contractor shall be paid additional amount for the period during which the certificate amount
remain unpaid. The amount stated as due in an interim certificate will be subject to the
agreement between the parties, to be the total value of properly executed works and of
materials and goods delivered to or stored in any other location approved by the architect

The employer may retain the percentage of the total value of the work, materials and
goods and rules on treatment of retention shall be that;

1. The employer¶s
2. On certificate of practical completion, the architect shall issue one moiety of the
total amount(s) due to the contractor and the contractor shall be paid within the
period of Honouring Certificates.
3. After the defects liability period has expired, the Architect shall issue a certificate
for the left over amount due to the contractor and he shall be paid within the
period of Honouring the Certificate.

For the variations, the measurement and valuation of the works shall be completed and
the contractor shall be supplied with a copy of the priced bill of variations within or before
the issue of the final certificate. And by the end or within a reasonable time after the
practical completion of work, the contractor shall send all documents necessary for the
purposes of the computations required by these conditions to the architect including all
documents relating to accounts of nominated sub-contractors and nominated suppliers.

Also in the contract sum, the items that will be included in the adjustment in it shall
be all the approved tenders by the architect and the employer from the contractor, provided
that no deduction shall be made in respect to damages paid to the contractor by any of the
nominated sub-contractor or nominated supplier.

The clause further explains that the final certificate shall be given to the contractor after
the expiration of the defect liability periods. And within 28 days of issuance of certificate,
the employer shall pay the contractor its due except if there is an agreement involving an
arbitrator or that there is an error, defects, any accidental inclusion, fraud, dishonesty or
fraudulent concealment relating to the works in what he has tender. And every certificate to
be issued by the architect under this conditions shall, be issued to the employer and a
duplicate copy shall be send immediately to the contractor.

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 The employer shall entertain fluctuations only in respect of the approved basic wages
and emolument and certain materials or certain sections of the works listed in the Appendix
to the Contract and it shall be in line with the works in accordance with the rates of wages
fixed by the National Joint Industrial Council and Federal Ministry of Labour, Employment
and Productivity, current at the date of tender and applicable to the area concerned and the
increments or decrement of such wages and other emoluments and expenses and changes in
basic prices, shall be paid to the contractors

Furthermore, the contractor should issue notice to the Architect of the happening of
any of these events and no addition to or deduction to the profits of the contractor as included
in the contract sum.
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If there shall be an outbreak of hostilities during process of carrying the contract in


which Nigeria shall involved on a scale of involving general mobilisaton of the armed forces,
then wither the Employer or the contractor may not give a notice to determine the
employment of the contractor provided that such notice was not given 28 days from the date
of when order is given for general mobilization, or after practical completion of the works.

Also, the two parties during the break out of hostilities by agreement between them
make further arrangement to meet the circumstances. Possibly, the architect may within 14
days after a notice shall have been given or received by the employer issue instructions to the
contractor requiring the execution of a protective work within a given stoppage time and even
though the contractor couldn¶t meet up with the work, he should be paid base on the value of
the work he did at that period and the payment should be done upon the expiration of 14 days
from the date on which the notice of determination shall have been given or received by the
Employer.

  

 If during works or any unfixed materials or goods intended for deleivering was
sustained by war damage then the work shall be disregarded in computing any amount(s)
payable to the contractor under this contract. The Architect may issue instruction requiring
the contractor to remove any debris or damaged work to execute such protective work as
shall be specified.

After the occurrence of war, the employer is entitled to any compensation from
government in respect of war damage sustained by the war.

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 All fossils, antiquities and other objects of interest which may be found on site during
work progress shall become property of the employer and upon the discoveries the contractor
should suspend the progress of the work, inform the architect or clerk of work about the
discoveries and the location on the site and also take measures to preserve the object.

Then, the Architect shall issue instruction pertaining to the reported object, and the
instruction shall be that the contractor may be asked to temporarily terminate the work to
allow for examination, excavation or removal of the object by the third party. The third party
shall be a person for whom the Employer is responsible and not to be a nominated sub-
contractor. If the Architect¶s instruction issued has involved the contractor in direct loss and
expense for which he would not be reimbursed by a payment made under any other provision
in this contract, then the Architect shall instruct the Quantity surveyor to ascertain the amount
of such loss and expense and it shall be added to the contract sum.

   


Provided that there is always a dispute or differences arises between the Employer or
the Architect (on the employer¶s behalf) and the contractor, during the progress or after the
completion of the work, this dispute shall not stop the execution of carrying out the works.
Instead both parties shall in writing conclude on a final decision. And there should be a
person to act as an arbitrator and the award of the arbitrator shall be final and binding the
parties. The arbitrator shall be an experience person in the field of building construction and
shall be nominated by the NIA president.

Whatever the nationality, residence or domicile of the employer, contractor, sub-


contractor or the Arbitrator, and wherever the work is located, the law of Federal Republic of
Nigeria shall be the proper law of this contract.