Standard Documents For Electrical and Mechanical Works

SULTANATE OF OMAN
STANDARD DOCUMENTS
FOR
ELECTRICAL AND MECHANICAL WORKS
(INCLUDING ERECTION ON SITE)
First Edition
April 1987
TABLE OF CONTENTS
FORM OF TENDER ... 3

APPENDIX TO FORM OF TENDER 5
FORM OF AGREEMENT .. 7
APPENDIX A TO FORM OF AGREEMENT .. 9
APPENDIX B TO FORM OF AGREEMENT .. 10
STANDARD CONDITIONS OF CONTRACT
- TABLE OF CONTENTS . 12
- INDEX .
20
- STANDARD CONDITIONS .. 28
ANNEXURE A
FORM OF TENDER BOND .
107
ANNEXURE B
FORM OF ADVANCE PAYMENT BOND .
108
ANNEXURE C
FORM OF PERFORMANCE BOND
109
SHORT DESCRIPTION OF WORKS

_______________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
____________________________________________________________________________
FORM OF TENDER
(Note: The Appendix form part of the Tender. Tenderers are required to fill up
all the blank spaces in this Form of Tender and Appendix).
TO:
CHAIRMAN OF THE TENDER BOARD
Gentlemen,
1. After having examined the Instructions to Tenderers, Outline Drawings,
Standard Conditions of Contract, Outline Specification and Bill of
Quantities/Schedule of Rates* and Prices for the execution of the above
named Works, we, the undersigned, offer to execute, complete and
maintain the whole of the said Works in conformity with the said
Instructions, Outline Drawings, Standard Conditions of Contract, Outline
Specification, and Bill of Quantities/Schedules of Rates* and Prices for
the
sum
of
Rials
Omani
_________________________________________________________________________
_______________________________________________________________________
(RO.
______________________________)
and/or
the
sum
of
_________________________________________________________________________
____________________________________________ [___________________]
or such other sum as may be ascertained in accordance with the said
Conditions.
2. We undertake, if our Tender is accepted, to commence the Works within
_________ days of receipt of the Engineers order to commence, and to
complete and deliver the whole of the Works comprised in the Contract
within ________ days calculated from the last day of the aforesaid period
in which the Works are to be commenced/or by the ______________ day of
_____ 20__.
3. If our Tender is accepted, we will obtain the undertaking of a locally
registered Bank (as required in the Sultanate of Oman Standard
Conditions of Contract for Electrical and Mechanical Works, 1 st Edition) to
be jointly and severally bound with us in the sum of 10 per cent of the
Contract Sum for the due performance of the Contract under the terms
of a Performance Bond as attached and to be approved by you.
4. We agree to abide by this Tender for a period of 90 days from the date
fixed for receiving the same and it shall remain binding upon us and
may be accepted at any time before the expiration of that period.
5. In the event of our Tender being accepted and until a formal Agreement
is prepared and executed, this Tender together with your written
acceptance thereof, shall constitute a binding obligation upon us.
______________________________________________________________________________
*delete where not applicable
6. We understand that you are not bound to accept the lowest or any
Tender you may receive.
7. We acknowledge receipt of the following circular letters:
Reference number of letter
Date
_____________________________
_____________________________
_____________________________
_____________________________
_____________________________
_____________________________
___________________
___________________
___________________
___________________
___________________
___________________
and confirm that we have taken account thereof in our Tender.

8. We confirm that we have an Agent(s) for the provision of Spare Parts,
Maintenance services and repair who are:
Name __________________________________________________________________
of Address ____________________________________________________________
_____________________________________________________________________
and
whose
Agency
Registration
Number
is
__________________________________
dated ___________________________.
Name __________________________________________________________________
of Address ____________________________________________________________
_____________________________________________________________________
and
whose
Agency
Registration
Number
is
__________________________________
dated ___________________________.
9. We confirm that in accordance with Article 17 of the Tender Law and
Article 35 of the Regulations of Sultani Decree No. 86/84 that the
following persons/shareholders of the company have an interest in the
Tender:
Name
Interest
________________________________
_______________________________
________________________________
_______________________________
________________________________
_______________________________
________________________________
_______________________________
________________________________
_______________________________
________________________________
_______________________________
________________________________
_______________________________
______________________________________________________________________________
APPENDIX TO THE FORM OF TENDER
CLAUSE
Number of Drawings
5.2.2(b)
_________________________
Receipt of Operating &

Maintenance Instructions
5.7
_____ days/months* before

Taking Over of the Works
Time for Completion

days/months*
7.1
_____________
and or by the day of
_______
________________________
Amount of Performance Bond
9.1
RO. _____________________
_______________being5% of
the Contract Sum.
Programme to be Furnished
following
12.1
____
days/months*
Engineers
order
to
commence
the Works.
Advance Detailed Progress
following
of Plant Schedule
commence
12.4
____
days/months*
Engineers
order
to
the Works.
Indirect or Consequential Damage
16.1
RO. _____________________
Insurance of the Works
17.1
RO. _____________________
Minimum Amount of Third Party

Insurance
17.2(b)
RO. _____________________
Amount of Penalty per day

day
31.1
RO.
_______________
per
Amount of Penalty per day

day
for Prolonged Delay
31.2
RO.
_______________
per
31.3
RO.
_______________
per
Defects Liability Period

months/year(s)*
33.1
___________
Percentage for Adjustment of

PC Sums contained within
Provisional Sums
39.4(b)
_________________ per cent
Amount of Compensation per day

of Delay for Extended
Engineering Services
day
Yearly Cash Flow: *

19
19
19
19
19
19
---------------------------------------------------------------------------------------------------------------------Percentage of
Contract Price
%
%
%
%
%
%
______________________________________________________________________________
Dated this _______________________ day of ________________________________ 20
_____.
Signature
___________________________________
in
capacity
of
________________________
Duly
authorized
to
sign
Tenders
for
and
on
behalf
of
_____________________________________
_______________________________________________________________________________
(IN BLOCK CAPITALS)
Address _______________________________________
Witness
____________________
______________________________________________
____________________
____________________
______________________________________________
Occupation
_________________
FORM OF AGREEMENT
THIS AGREEMENT made this _____________ day of __________________ 20
.
BETWEEN
_____________________________________________________________________________
of ________________________________________________________________(hereinafter
called
the
Employer)
of
the
one
part
and
___________________________________________
_______________________________________________________________________________
____________________________________________________________________________
(Company
Registration
Number)
___________________________________________________
(hereinafter called the Contractor) of the other part.
WHEREAS the Employer is desirous that certain works should be executed viz:
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
7
_________________________________________________________________________
and
has
accepted a Tender by the Contractor as summarized at Appendix B Summary
of Contract Sum for the execution, completion and maintenance of such
Works.
NOW THIS AGREEMENT WITNESSETH as follows:
1. In this Agreement, words and expressions shall have the same meanings
as are respectively assigned to them in the Standard Conditions of
Contract hereinafter referred to.
2. The following documents shall be deemed to form and be read and
construed as part of this Agreement viz:
The said Tender
The Standard Conditions of Contract
The Outline Drawings
The Outline Specification
The Bill of Quantities*
The Schedule of Rates and Prices*
The Tender Board/Ministry Letter of Acceptance*
______________________________**
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
3. In consideration of the payments to be made by the Employer to the
Contractor as hereinafter mentioned the Contractor hereby covenants
with the Employer to execute and complete the Works and to remedy
defects therein in conformity in all respects with the provisions of the
Contract.
______________________________________________________________________________
**other additional documents as required
4. The Employer hereby covenants to pay the Contractor in consideration
of the execution, completion of the Works and the remedying of defects
therein the Contract Price at the times and in the manner prescribed by
the Contract and limited by the Cash Flow contained in the Appendix to
the Form of Tender.
IN WITNESS whereof the parties hereto have hereunder set their
respective hands and seals on the day and year first above written.
______________________________
Signed by a duly authorized Signatory
for and on behalf of the Government
of the Sultanate of Oman
______________________________
Witness
______________________________
Signed by a duly authorized Signatory
for and on behalf of the Contractor
______________________________
Witness
Ratified in accordance with the Sultani Decree No. 48/76, as amended,
on the ____ day of ________ 20____.
_____________________________________
THE DEPUTY PRIME MINISTER
FOR FINANCIAL & ECONOMIC AFFAIRS
_______________________
UNDERSECRETARY FOR
FINANCIAL AFFAIRS
MINISTRY OF FINANCE
AND ECONOMY
APPENDIX A TO FORM OF AGREEMENT

CONSTITUTION OF COMPANY
1. INTERNATIONAL COMPANIES
The Contractor shall prior to the signature of the Form of Agreement
submit notarially authenticated copies of the original documents defining
9
the constitution of the Company, powers of attorney and other relevant

documents. In the case of a Partnership or Firm these documents shall be
dully authenticated extracts from the partnership deed or other
documents. These documents shall also show by what persons and what
manner contracts may be entered into and what persons are directly
responsible for the due execution of such contracts and can give valid
receipts together with specimens of their signatures.
An overseas power of attorney of a foreign signatory to the Tender shall
have been endorsed by an approved Oman authority (such as an
Embassy).
A Contractor intending to undertake the Contract jointly with or in
association with another firm or firms including firms or persons acting in
an advisory or consultative capacity shall submit a statement showing how
the contract commitment will be undertaken and the exact relationship
between each of the parties.
2. OMANI COMPANIES
The Contractor shall prior to the signature of the Form of Agreement
submit copies of the official Company Registration Particulars, i.e.
partnership, limited liability, joint venture, joint stock, together with the
commercial registration number. These documents shall also show by what
persons are directly responsible for the due execution of such contracts
and can give valid receipts together with specimens of their signatures.
10
APPENDIX B TO FORM OF AGREEMENT

SUMMARY OF CONTRACT SUM
(FOR USE WITH VALUES IN RIALS OMANI ONLY)
DESCRIPTION
R.O.
BILL NO. 1
2
3
4
5
6
7
8
9
10
11
12
13
..
..
..
..
..
..
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
TOTAL CONTRACT SUM
RO
____________________
- Value of Plant
- Value of Shipping/Insurance
- Value of Erection/Installation
- Value of Building and Civil
Engineering Works
- Value of Provisional Sums*
- Value of Contingencies*
____________________
____________________
____________________
____________________
____________________
____________________
____________________
TOTAL
RO
____________________
- Value of Overseas Portion*

- Value of Local Portion*
____________________
____________________
TOTAL
____________________
RO
____________________
11
______________________________________________________________________________
APPENDIX B TO FORM OF AGREEMENT
SUMMARY OF CONTRACT SUM
(FOR USE WITH VALUES IN RIALS OMANI AND/OR OTHER CURRENCIES)
DESCRIPTION
R.O.
BILL NO. 1
\
2
3
4
5
6
7
8
9
10
11
12
13
..
..
..
..
..
TOTAL CONTRACT SUM
**
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
_________________
____________________
_________________
RO
____________________
**
_________________
- Value of Plant
____________________
_________________
- Value of Shipping/Insurance
____________________
_________________
- Value of Erection/Installation
____________________
_________________
- Value of Building and Civil
Engineering Works
____________________
_________________
- Value of Provisional Sums*
____________________
_________________
- Value of Contingencies* ____________________
_________________
TOTAL
____________________
_________________
RO
____________________
**
_________________
- Value of Overseas Portion*

_________________
____________________
12
- Value of Local Portion*
____________________
_________________
____________________
_________________
RO
**
____________________
_________________
______________________________________________________________________________
**insert type of currency as applicable
TOTAL
13

TABLE OF CONTENTS
1.0
DEFINITIONS AND INTERPRETATIONS......................................................28
1.1
Definitions............................................................................................... 28
1.2
Interpretation.......................................................................................... 33
1.3
Singular and Plural.................................................................................. 33
1.4
Headings or Notes..................................................................................33
1.5
Cost........................................................................................................ 33
2.0
ENGINEER AND ENGINEERS REPRESENTATIVE.......................................33
2.1
Engineers Duties....................................................................................33
2.2
Engineers Representative......................................................................33
2.3
Engineers Power to Delegate.................................................................34
2.4
Engineer to Act Fairly..............................................................................34
3.0
ASSIGNMENT AND SUB-LETTING.............................................................34
3.1
Assignment............................................................................................. 34
3.2
Sub-letting.............................................................................................. 35
4.0
CONTRACT DOCUMENTS.........................................................................35
4.1
Languages.............................................................................................. 35
4.2
Compliance with Laws and Governing Law.............................................35
4.3
Documents mutually explanatory...........................................................36
5.0
DRAWINGS AND SPECIFICATIONS............................................................36
5.1
Outline Drawings and Outline Specification............................................36
5.2
Drawings and Specification Approval Procedure..................................36
5.3
Approved Drawings.................................................................................38
5.4
Inspection of Drawings...........................................................................38
5.5
Foundation Drawings.............................................................................. 39
5.6
Errors in Drawings...................................................................................39
5.7
Operating and Maintenance Instructions................................................39
6.0
MISTAKES AND ERRORS..........................................................................40
6.1
Mistakes and Information........................................................................40
6.2
Errors by Contractor................................................................................40
6.3
Errors by Engineer..................................................................................41
14
7.0
OBLIGATIONS OF THE CONTRACTOR.......................................................41
7.1
General Obligations................................................................................41
7.2
Setting Out............................................................................................. 42
7.3
Training of Employer 's Personnel...........................................................42
7.4
Operation of Plant................................................................................... 43
8.0
AGREEMENT ANDPROCEDURES..............................................................43
8.1
Form of Agreement................................................................................. 43
8.2
Government Procedure...........................................................................43
8.3
Fixed Price............................................................................................... 43
9.0
BONDS.................................................................................................... 44
9.1
Performance Bond..................................................................................44
9.2
Advance Payment Bond..........................................................................44
10.0
CONTRACT DATA.................................................................................. 44
10.1
Site Data.............................................................................................. 44
10.2
Sufficiency of Tender............................................................................45
10.3
Errors in Computing Tender.................................................................45
11.0 ENGINEERS DECISIONS..........................................................................45

12.0
PROGRAMME........................................................................................ 46
12.1
Programme to be Furnished.................................................................46
12.2
Procedure and Method.........................................................................46
12.3
Progress of Works................................................................................46
12.4
Advanced Detailed Progress of Plant Schedule....................................46
13.0
CONTRACTORS SUPERINTENDENCE.....................................................48
13.1 Contractor's Representative...................................................................48

13.2
Contractors Employees.......................................................................48
13.3
Notice of Objection..............................................................................48
13.4
Proficiency of Languages.....................................................................49
14.0
EQUIPMENT SERVICES FACILITIES........................................................49
14.1 Contractor's Equipment..........................................................................49

14.2
Safety and Security............................................................................. 49
14.3
Electricity, Water and Gas...................................................................49
14.4
Employer's Equipment.........................................................................50
14.5
Opportunities for other Contractors.....................................................50

15
15.0
LIABILITY FOR ACCIDENTS AND DAMAGE.............................................50
15.1
Care of the Works................................................................................50
15.2
Damage to Works caused by Excepted Risks......................................51
15.3
Damage to Persons and Property before Taking Over..........................51
15.4
Damages to Persons and Property after Taking Over...........................52
15.5
Over
Damage to Persons and Property from a cause occurring before Taking

52
15.6
Claims for Damage to Persons or Property..........................................53
15.7 Accident or Injury to Workmen................................................................53

15.8
Damage to Services on Site.................................................................54
15.9
Urgent Repairs..................................................................................... 54
16.0 DAMAGES AND LOSS...............................................................................55

16.1
Indirect or Consequential Damage......................................................55
16.2
Mitigation of Loss.................................................................................55
17.0 INSURANCES, REGULATIONS AND PATENT RIGHTS.................................55

17.1 Insurance of Works................................................................................. 55
17.2
Third Party Insurance...........................................................................56
17.3
Damage to Persons and Property........................................................57
17.4
Accident or Injury to Workmen............................................................58
17.5
Notification by Contractor....................................................................58
17.6
Policies and Local insurances...............................................................59
17.7 Remedy on Contractor s Failure to Insure..............................................59

18.0
LAWS AND REGULATIONS....................................................................59
18.1
Compliance with Laws and Regulations...............................................59
18.2
Assistance concerning Laws and Regulations......................................59
19.0 PATENT RIGHTS....................................................................................... 60

19.1 Patent Rights.......................................................................................... 60
19.2 Claims in respect of Patent Rights..........................................................60
19.3 Employers Warranty for Patent Rights...................................................60
20.0 GENERAL OBLIGATIONS OF THE EMPLOYER............................................60
20.1 Access to and Possession of the Site......................................................60
20.2 Foundations............................................................................................ 61
20.3 Authority for Access................................................................................61
16
20.4 Access not exclusive............................................................................... 61

20.5 Consents Wayleaves............................................................................... 61
20.6 Import Permits and Licenses...................................................................61
21.0 HOURS OF WORK AND RATE PROGRESS.................................................62
21.1 Hours of Work......................................................................................... 62
21.2 No Night or Holiday Work........................................................................62
21.3 Rate of Progress...................................................................................... 62
21.4 Erection Progress Report.........................................................................63
21.5 Clearance of Site on Completion.............................................................63
22.0 LABOUR.................................................................................................. 63
22.1 Engagement of Labour...........................................................................63
22.2 Supply of Water...................................................................................... 63
22.3 Alcoholic Liquor or Drugs........................................................................64
22.4 Arms and Ammunition............................................................................64
22.5 Festivals and Religious Customs.............................................................64
22.6 Epidemics............................................................................................... 64
22.7 Disorderly Conduct................................................................................. 64
22.8 Safety of Workmen and Public................................................................64
22.9 Observance by Sub-Contractors.............................................................65
22.10
Returns of Labour................................................................................65
23.0 WORKMANSHIP AND MATERIALS.............................................................65

23.1 Manner of Execution............................................................................... 65
23.2 Quality of Materials.................................................................................65
24.0 ADVERSE PHYSICAL CONDITIONS AND ARTIFICIAL OBSTRUCTIONS........66
25.0 TESTING OF PLANT................................................................................. 66
25.1 Inspection and Testing during Manufacture............................................66
25.2 Dates for Inspection and Testing.............................................................66
25.3 Facilities for Testing at Manufacturers Works.........................................66
25.4 Certificate of Testing...............................................................................67
25.5 Rejection................................................................................................. 67
25.6 Inspection Authority................................................................................68
25.7 No Reduction of Liability.........................................................................68
26.0 DELIVERY OF PLANT................................................................................68
17
26.1 Delivery.................................................................................................. 68
26.2 Packing and Marking...............................................................................68
26.3 Shipping Documents...............................................................................70
26.5 Overseas Transport.................................................................................71
26.6 Local Transport........................................................................................ 71
26.7 Receiving and Damage Reports..............................................................72
26.8 Unloading and Storage at Site................................................................72
27.0 SUSPENSION OF WORKS.........................................................................73
27.1 Order to Suspend Progress.....................................................................73
27.2 Payment for Plant when Progress Suspended.........................................73
27.3 Resumption of Work................................................................................74
28.0 DEFECTS BEFORE TAKING OVER.............................................................74
29.0 TESTS ON COMPLETION..........................................................................75
29.1 Notice of Tests......................................................................................... 75
29.2 Time for Tests.......................................................................................... 75
29.3 Delayed Tests.......................................................................................... 75
29.4 Facilities for Tests on Completion............................................................75
29.5 Repeat Tests............................................................................................ 76
29.6 Consequences of Failure to Pass Tests on Completion............................76
30.0 EXTENSION OF TIME FOR COMPLETION..................................................77
31.0 DELAYS IN COMPLETION.........................................................................77
31.1 Penalty for Delay in Completion..............................................................77
31.2 Prolonged Delay...................................................................................... 78
31.3 Engineering Services.............................................................................. 78
32.0
TAKING OVER....................................................................................... 79
32.1 Taking Over Certificate............................................................................79

32.2
Taking Over by Portions.......................................................................79
32.3 Use before Taking Over...........................................................................79

32.4 Interference with Tests............................................................................80
33.0 DEFECT AFTER TAKING OVER..................................................................80
33.1 Defect Liability Period.............................................................................80
33.2 Making Good Defects..............................................................................81
33.3 Notice of Defects.................................................................................... 81
18
33.4 Extension of Defects Liability Period.......................................................81

33.5 Delay in Remedying Defects...................................................................81
33.6 Removal of Defective Work.....................................................................81
33.7 Further Tests on Completion...................................................................82
33.8 Conditions Applicable.............................................................................82
33.9 Right of Access....................................................................................... 82
33.10
Contractor to Search............................................................................82
33.11
Claims for Loss or Damage after Defects Liability Period.....................82
33.12
Misconduct.......................................................................................... 83
33.13
Liability after Taking Over....................................................................83
34
VARIATIONS............................................................................................. 83
34.1 Engineers Power to Vary........................................................................83

34.2 Orders for Variations to be in Writing......................................................84
34.3 Valuation of Variations............................................................................84
34.4 Power of Engineer to Fix Rates................................................................84
34.5 Variations Exceeding 10 per cent...........................................................85
34.6 Notice and Confirmation of Variations.....................................................85
34.7 Progress with Variation........................................................................... 85
34.8 Claims for Additional Payment for Variations..........................................85
34.9 Cancellation of the Works.......................................................................86
35.0 VESTING OF PLANT AND CONTRACTORS EQUIPMENT............................86
35.1 Ownership of Plant.................................................................................. 86
35.2 Marking of Plant...................................................................................... 86
36.0 CONTRACTORS EQUIPMENT...................................................................87
36.1 Removal of Contractors Equipment.......................................................87
36.2 Loss or Damage to Contractors Equipment...........................................87
37.0 CERTIFICATES AND PAYMENT..................................................................87
37.1 Certificate of Payment............................................................................87
37.2 Application for Interim Certificates.........................................................87
37.3 Issue of Interim Certificates....................................................................88
37.4 Retention Money..................................................................................... 88
37.5 Value of Interim Certificates...................................................................89
37.6 Correction and Withholding of Interim Certificates.................................89
19
37.7 Advance Payments.................................................................................90

37.8 Effect of Interim Certificates...................................................................90
37.9 Applicable for Final Acceptance Certificate.............................................90
37.10
Issue of Final Acceptance Certificate...................................................91
37.11
Submission of Final Account................................................................91
37.12
Value of Final Account Certificate........................................................91
37.13
Final Account Certificate Conclusive....................................................92
37.14
Adjustment to Certificates...................................................................92
37.15
Corrections to Certificates...................................................................92
38.0
PROVISIONAL SUMS.............................................................................92
38.1
Provisional sums.................................................................................. 92
38.2
Ordering work against Provisional Sums..............................................92
38.3
Invoices and Receipts..........................................................................93
39.0
NOMINATED SUB-CONTRACTORS.........................................................93
39.1
Nominated Sub-Contractors................................................................93
39.2
Objections to Nominations...................................................................93
39.3
Responsibility for Design in Nominated Sub-Contracts........................94
39.4
Payments against Provisional Sums.....................................................94
39.5
Delayed payments to Nominated Sub-Contractors..............................94
39.6
Continuing obligations of Nominated Sub-Contractor..........................95
40.0
PAYMENT CONDITIONS.........................................................................95
40.1
Terms of payment................................................................................ 95
40.2
Provision of Plant.................................................................................95
40.3
Installation of Plant.............................................................................. 96
40.4
Construction of the Building, Civil Engineering Works.........................96
41.0
INTEREST ON DELAYED PAYMENTS......................................................97
42.0
CURRENT FLUCTUATION......................................................................97
43.0
FOREIGN CURRENCY............................................................................97
43.1
Payment in Rial Omani........................................................................97
43.2
Rates of Exchange of Currency............................................................97
43.3
Currency Conversion...........................................................................98
43.4
Currency Conversion relating to Provisional Sums...............................98
44.0
REMEDIES AND POWERS......................................................................98

20
44.1
Contractor's Default.............................................................................98
44.2
Valuation at Date of Forfeiture.............................................................99
44.3
Payments after Forfeiture....................................................................99
44.4
Effect on Liability for Delay..................................................................99
45.0
BANKRUPTCY....................................................................................... 99
46.0
OUTBREAK OF WAR...........................................................................100
46.1
Outbreak of War.................................................................................100
46.2
Removal of Contractor's Equipment on Termination in Case of War. .100
46.3
Payment if Contract Terminated in Case of War.................................100
47.0
SPECIAL RISKS................................................................................... 101
47.1 No Liability for War etc Risks................................................................101

47.2
Special Risks - Definition...................................................................101
47.3
Damage to Works etc by Special Risks..............................................101
47.4
Projectiles, Missiles etc......................................................................102
47.5
Increased Costs arising from Special Risks........................................102
48.0
FRUSTRATION.................................................................................... 102
49.0
SETTLEMENT OF DISPUTES................................................................103
50.0
NOTICES............................................................................................ 104
50.1
Notices to Contractor.........................................................................104
50.2
Notices to Employer and Engineer....................................................104
50.3
Change of address.............................................................................104
51.0
TERMINATION OF CONTRACT.............................................................104
52.0
CHANGES IN COST AND LEGISLATION................................................104
53.0 CLEARANCE THROUGH CUSTOMS.........................................................105

54.0 FIRE PRECAUTIONS...............................................................................105
55.0 GUARANTEES........................................................................................ 105
55.1 Guarantee of Material and Workmanship..............................................105
55.2 Performance Guarantees......................................................................106
56.0 TAXATION, CUSTOMS DUTY, RATES AND OTHER CHARGES...................106
21
INDEX
Access, Authority for

Access not exclusive
Access, Right of
Access to and Possession of the Site
Accident or Injury to Workmen
Accidents and Damage, Liability for
Additional Payment for Variation, Claims for
Address, Change of
Adjustment to Certificates
Advanced Detailed Progress of Plant Schedule
Advance Payment Bond
Advance Payments
Clause
20.3
20.4
33.9
20.1
15.7
15.0
17.4
34.8
50.3
37.14
12.4
9.2
37.7
ADVERSE PHYSICAL CONDITIONS AND

ARTIFICIAL OBSTRUCTIONS
AGREEMENT AND PROCEDURES
Alcoholic Liquor or Drugs
Ammunition, Arms and
Application for Interim Certificates
Applicable for Final Acceptance Certificate
Approval Procedures, Drawings and Specification
Arms and Ammunition
Approved Drawings
Assignment
Assistance concerning Laws and Regulations
Authority for Access
ASSIGNMENT AND SUB-LETTING
BANKRUPTCY
Bond, Advance Payment
Bond, Performance
BONDS
Cancellation of the Works
Care of the Works
Certificate, Final Account Conclusive
Certificate, Issue of Final Acceptance
Certificate of Testing
Certificate, Taking Over
Certificate, Value of Final Account
Certificates, Adjustment to
24
8.0
22.3
22.4
37.2
37.9
5.2
22.4
5.3
3.1
18.2
20.3
3.0
45
9.2
9.1
9.0
34.9
15.1
37.13
37.10
25.4
32.1
37.12
37.14
22
Page
61
82
50
85
104
46
64
36
44
44
92
91
79
91
92
Certificates, Application for Interim

Certificates, Correction and Withholding of Interim
Certificates, Corrections to
Certificates, Effect of Interim
Certificates, Issue on Interim
CERTIFICATES AND PAYMENT
Change of address
CHANGES IN COST AND LEGISLATION
Claims for Additional Payment for Variations
Claims for Damage to Persons or Property
Clause
37.2
37.6
37.15
37.8
37.3
37.0
50.3
52
34.8
15.6
Claims for Loss or Damage after Defects Liability Period

Claims in respect of Patent Rights
Clearance of Site on Completion
CLEARANCE THROUGH CUSTOMS
Completion, Clearance of Site on
Completion, Extension of Time for
Completion, Further Test on
Completion, Penalty for Delay and
Compliance with Laws and Governing Law
Compliance with Laws and Regulations
Computing Tender, Errors in
Conditions Applicable
Conduct, Disorderly
Confirmation of Variations, Notice and
Consents Wayleaves
33.11
19.2
21.5
53
21.5
30
33.7
31.1
4.2
18.1
10.3
33.8
22.7
34.6
20.5
Consequences of Failure to Pass Tests on Completion

Consequential Damage, Indirect or
29.6
16.1
Construction of the Building, Civil Engineering Works
40.4
Continuing obligations of Nominated Sub-Contractor

CONTRACT DATA
CONTRACT DOCUMENTS
Contractor, Errors by
Contractor, Notices to
Contractor, Notification by
Contractor, Obligations of the
Contractor's Default
Contractors Employees
CONTRACTORS EQUIPMENT
39.6
10
4
6.2
50.1
17.5
7
44.1
13.2
36
23
Page
87
89
92
90
88
63
77
82
77
45
64
85
55
40
104
58
41
Clause
14.1
36.2
36.1
Page
Contractor's Equipment
Contractor's Equipment, Loss or Damage to
Contractor's Equipment, Removal of
Contractor's Equipment, Removal of on Termination in
case of War
Contractor's Failure to insure, Remedy on
Contractor's Representative
Contractor to Search
CONTRACTORS SUPERINTENDENCE
Correction and Withholding of Interim Certificates
Corrections to Certificates
Cost
Currency Conversion
Currency Conversion relating to Provisional Sums
CURRENT FLUCTUATION
Damage to Persons and Property
46.2
17.7
13.1
33.1
13
37.6
37.15
1.5
43.3
43.4
42
17.3
100
59
Damage to Persons and Property before Taking Over
15.3
Damage to Persons and Property from a cause occurring

before Taking Over
Damage to Services on Site
Damage to Works caused by Excepted Risks
Damage to Works etc by Special Risks
DAMAGES AND LOSS
15.5
15.8
15.2
47.3
16
Damages to Persons and Property after Taking Over

Dates for Inspection and Testing
DEFECT AFTER TAKING OVER
Defect Liability Period
DEFECTS BEFORE TAKING OVER
Definitions
DEFINITIONS AND INTERPRETATIONS
Delay in Remedying Defects
Delayed payments to Nominated Sub-Contractors
Delayed Tests
DELAYS IN COMPLETION
Delivery
DELIVERY OF PLANT
Disorderly Conduct
Documents mutually explanatory
Drawings and Specification Approval Procedure
DRAWINGS AND SPECIFICATIONS
15.4
25.2
33
33.1
28
1.1
1
33.5
39.5
29.3
31
26.1
26
22.7
4.3
5.2
5
24
87
87
Effect of Interim Certificates

Effect on Liability for Delay
Electricity, Water and Gas
Employers Warranty for Patent Rights
Employer's Equipment
Engagement of Labour
Clause
37.8
44.4
14.3
19.3
14.4
22.1
ENGINEER AND ENGINEERS REPRESENTATIVE

Engineer to Act Fairly
ENGINEERS DECISIONS
Engineers Duties
Engineers Power to Delegate
Engineers Power to Vary
Engineers Representative
Epidemics
EQUIPMENT SERVICES FACILITIES
Erection Progress Report
Errors by Contractor
Errors by Engineer
Errors in Computing Tender
Errors in Drawings
Extension of Defects Liability Period
EXTENSION OF TIME FOR COMPLETION
Facilities for Testing at Manufacturers Works
Facilities for Tests on Completion
Festivals and Religious Customs
Final Account Certificate Conclusive
FIRE PRECAUTIONS
Fixed Price
FOREIGN CURRENCY
Form of Agreement
Foundation Drawings
Foundations
FRUSTRATION
Further Tests on Completion
General Obligations
2
2.4
11
2.1
2.3
34.1
2.2
31.3
22.6
14
21.4
6.2
6.3
10.3
5.6
33.4
30
25.3
29.4
22.5
37.13
54
8.3
43
8.1
5.5
20.2
48
33.7
7.1
GENERAL OBLIGATIONS OF THE EMPLOYER

Government Procedure
Guarantee of Material and Workmanship
GUARANTEES
20
8.2
55.1
55
25
Page
Headings or Notes
Hours of Work
HOURS OF WORK AND RATE PROGRESS
Import Permits and Licenses
Increased Costs arising from Special Risks
Inspection and Testing during Manufacture
Inspection Authority
Inspection of Drawings
Installation of Plant
Insurance of Works
Clause
1.4
21.1
21
20.6
47.5
16.1
25.1
25.6
5.4
40.3
17.1
INSURANCES, REGULATIONS AND PATENT

RIGHTS
INTEREST ON DELAYED PAYMENTS
Interference with Tests
Interpretation
Invoices and Receipts
Issue of Final Acceptance Certificate
Issue of Interim Certificates
LABOUR
Languages
LAWS AND REGULATIONS
Liability after Taking Over
LIABILITY FOR ACCIDENTS AND DAMAGE
Local Transport
Loss or Damage to Contractors Equipment
Making Good Defects
Manner of Execution
Marking of Plant
Misconduct
MISTAKES AND ERRORS
Mistakes and Information
Mitigation of Loss
No Liability for War etc Risks
No Night or Holiday Work
No Reduction of Liability
NOMINATED SUB-CONTRACTORS
Nominated Sub-Contractors
Notice and Confirmation of Variations
Notice of Defects
Notice of Objection
Notice of Tests
17
41
32.4
1.2
38.3
37.1
37.3
22
4.1
18
33.13
15
26.6
36.2
33.2
23.1
35.2
33.12
6
6.1
16.2
47.1
21.2
25.7
39
39.1
34.6
33.3
13.3
29.1
26
Page
NOTICES
Notices to Contractor
Notices to Employer and Engineer
Notification by Contractor
Objections to Nominations
OBLIGATIONS OF THE CONTRACTOR
Observance by Sub-Contractors
Operating and Maintenance Instructions
Operation of Plant
Opportunities for other Contractors
Order to Suspend Progress
Ordering work against Provisional Sums
Orders for Variations to be in Writing
OUTBREAK OF WAR
Outbreak of War
Outline Drawings and Outline Specification
Overseas Transport
Ownership of Plant
Packing and Marking
PATENT RIGHTS
Patent Rights
PAYMENT CONDITIONS
Payment for Plant when Progress Suspended
Payment if Contract Terminated in Case of War
Payment in Rial Omani
Payments after Forfeiture
Payments against Provisional Sums
Penalty for Delay in Completion
Performance Bond
Performance Guarantees
Policies and Local insurances
Power of Engineer to Fix Rates
Procedure and Method
Proficiency of Languages
PROGRAMME
Progress of Works
Progress with Variation
Projectiles, Missiles etc
Prolonged Delay
Provision of Plant
PROVISIONAL SUMS
27
Clause
50
50.1
50.2
17.5
39.2
7
22.9
5.7
7.4
14.5
27.1
38.2
34.2
46
46.1
5.1
26.5
35.1
26.2
19
19.1
40
27.2
46.3
43.1
44.3
39.4
31.1
9.1
55.2
17.6
34.4
12.2
13.4
12
12.1
12.3
34.7
47.4
31.2
40.2
38
Page
Clause
38.1
23.2
21.3
43.2
26.7
25.5
44
17.7
36.1
Provisional sums
Quality of Materials
Rate of Progress
Rates of Exchange of Currency
Receiving and Damage Reports
Rejection
REMEDIES AND POWERS
Remedy on Contractor s Failure to Insure
Removal of Contractors Equipment
Removal of Contractor's Equipment on Termination in
Case of War
Removal of Defective Work
Repeat Tests
46.2
33.6
29.5
Responsibility for Design in Nominated Sub-Contracts

Resumption of Work
Retention Money
Returns of Labour
Right of Access
Safety and Security
Safety of Workmen and Public
Setting Out
SETTLEMENT OF DISPUTES
Shipping Documents
Singular and Plural
Site Data
SPECIAL RISKS
Special Risks - Definition
Sub-letting
Submission of Final Account
Sufficiency of Tender
Supply of Water
SUSPENSION OF WORKS
TAKING OVER
Taking Over by Portions
Taking Over Certificate
39.3
27.3
37.4
22.1
33.9
14.2
22.8
7.2
49
26.3
1.3
10.1
47
47.2
3.2
37.11
10.2
22.2
27
32
32.2
32.1
TAXATION, CUSTOMS DUTY, RATES AND OTHER

CHARGES
TERMINATION OF CONTRACT
Terms of payment
TESTING OF PLANT
TESTS ON COMPLETION
56
51
40.1
25
29
28
Page
Clause
17.2
29.2
7.3
26.8
15.9
32.3
44.2
34.3
37.12
37.5
34
34.5
Third Party Insurance

Time for Tests
Training of Employer 's Personnel
Unloading and Storage at Site
Urgent Repairs
Use before Taking Over
Valuation at Date of Forfeiture
Valuation of Variations
Value of Final Account Certificate
Value of Interim Certificates
VARIATIONS
Variations Exceeding 10 per cent
VESTING OF PLANT AND CONTRACTORS
EQUIPMENT
WORKMANSHIP AND MATERIALS
35
23
1.0
DEFINITIONS AND INTERPRETATIONS
1.1
Definitions
29
Page
In the Contract, as hereinafter defined, the following words and

expressions shall have the meanings hereby assigned to them except
where the context otherwise requires:
(a) Approved
means
approved
in
writing
including
subsequent
written
confirmation of previous verbal
approval and approval means
approval in writing including as
aforesaid.
(b) Contract
means
the
Instructions
to
Tenderers, Tender Documents,
Standard Conditions of Contract,
Outline
Specification,
Outline
Drawings,
Priced
Bill
of
Quantities*, Schedule of Rates
and Prices, if any*, Tender, the
Letter of Acceptance and the
Form of Agreement.
(c) Contractor
means the person or persons,

firm or company whose Tender
has been accepted by the
Employer
and
includes
the
Contractors
representatives,
successors
and
permitted
assigns.
(i)
The name and full address
in the Sultanate of Oman
(including Company Registration
Particulars) is that stated in the
Form of Agreement.
(ii)
Registered
address
of
Head Office (if different from
above).
__________________________________
_________________________________
_________________________________
______________________________________________________________________________
30
(d) Contract Price
means
the
Contract
Sum
adjusted to give effect to such
additions or deductions as are
provided for in the contract.
(e) Contract Sum
means the sum named in the

Letter of Acceptance.
(f) Contractors Equipment
means all appliances or things of

whatsoever nature required for
the purpose of the Works but
does not include Plant or other
things intended to form or
forming part of the Works.
(g) Day
means calendar day.
(h) Defects Liability Period
has the meaning assigned by

Clause 33.1 (Defects Liability
Period).
(i) Drawings
means the drawings prepared by

the Contractor or by the Sub
Contractor
and
made
in
accordance with Clause 5.2
(Drawings and Specifications).
(j) Employer
means the Government of the

Sultanate of Oman and the legal
successors in the title to the
Employer who will employ the
Contractor. The address of the
Employer shall, for the purpose
of the Contract, be deemed to be
as per that stated in the Form of
Agreement.
(k) Engineer
means___________________________
_
_________________________________
__________________________________
or other person, persons or firm
appointed from time to time by
the Employer and notified in
writing to the Contractor to act
as the Engineer for the purposes
of the Contract in place of the
said Engineer whose full address
31
in the Sultanate of Oman

(including
Registration
Particulars)
is
________________________________
__________________________________
__________________________________
32
(l) Engineers Representative
means any resident engineer or

assistant
of
the
Engineer
appointed from time to time by
the Engineer to perform the
duties set forth in Clause 2.0
hereof whose authority shall be
notified
in
writing
to
the
Contractor by the Engineer.
(m) Letter of Acceptance
means the letter from, or on

behalf of, the Tender Board/
Ministry
to
the
Contractor
notifying the Contractor of the
acceptance, in principle, of his
final offer which shall include any
adjustments or variations to the
Tender agreed in writing between
the Employer and the Contractor
prior to the issue of the Letter of
Acceptance and the commitment
of which shall be subject to
Clause 5 of the Form of Tender
and Sultani Decree No. 48 of
1976 as amended.
(n) Local Portion
means the value of such Works

executed within the Sultanate of
Oman excluding the C. and F.
value of imported goods and
equipments.
(o) Month
means calendar month.
(p) Outline Drawings
means the drawings prepared by

the Engineer and referred to in
the
Specification
and
any
modification of such drawings by
the Engineer and such other
drawings as may from time to
tome
be
furnished
and
modifications thereto.
(q) Outline Specification
means the specification prepared

by the Engineer and annexed to
or issued with these Standard
Conditions
and
such
modifications thereto made clear
Clause 34.0 (Variations).
33
(r) Permanent Works
means the permanent works to

be executed, completed and
maintained in accordance with
the Contract.
(s) Plant
means machinery, apparatus,

materials, articles and things of
all kinds to be provided under the
Contract other than Contractors
Equipment.
(t) Portion of the Works
means a part of the Works or a

part of the Sections of the Works.
(u) Section of the Works
means the Sections into which

the Works are divided for the
functions described and set out
in the Outline Specification.
(v) Site
means the lands and other

places on, under, in or through
which the Works are to be
executed or carried out, and any
other lands and places provided
by the Employer for the purposes
of the Contract, with such other
places as may be specifically
designated in the Contract as
forming part of the Site.
(w) Specification
means the specification prepared

by the Contractor and made in
accordance with Clause 5.2
(Drawings and Specifications).
(x) Sub-Contractor
means
Nominated
SubContractor (as defined in Clause
39.1) or any person, firm or
company
(other
than
the
Contractor)
named
in
the
Contract for any part of the
Works or any person to whom
any part of the Contract has been
sub-let with the consent in
writing of the Employer, and the
Sub-Contractors legal personal
representatives, successors and
permitted assigns.
34
(y) Temporary Works
means all temporary works of

every kind required in or about
the execution, completion or
maintenance of the Works.
(z) Tests on Completion
means such tests to be made by

the Contractor before the Works
are taken over by the Employer
as are provided for in the
Contract and such additional
tests as agreed between the
Engineer and the Contractor.
35
(aa)Time for Completion
means the time for completion of

the Works or any section or
portion thereof as stated in the
Contract (or as extended under
Clause 30.0 Extension of Time
for Completion) and shall be
calculated from the date of
receipt of the written order to
commence the Works from the
Engineer being the period stated
in Paragraph 2 of the Form of
Tender.
(ab)Works
means all Plant to be provided

and work to be done by the
Contractor under the Contract
which
shall
include
both
Permanent Works and Temporary
Works.
(ac) Writing
means any manuscript, typewritten or printed statement.
36
1.2
Interpretation
Words importing persons or parties shall include firms and corporations.
1.3
Singular and Plural

Words importing the singular only also include the plural and vice versa
where the context requires.
1.4
Headings or Notes
The headings and marginal notes in these Standard Conditions of
Contract shall not be deemed to be part thereof or be taken into
consideration in the interpretation or construction of the Contract.
1.5
Cost
The word Cost shall be deemed to include overhead costs whether
incurred on or off the Site.
2.0
ENGINEER AND ENGINEERS REPRESENTATIVE
2.1
Engineers Duties
The Engineer shall carry out such duties in issuing decisions and orders
as are specified in the Contract provided that before the issue of orders
which either increase the Contract Price to an amount greater than the
Contract Sum or cause further increase in the Contract Price the
Engineer shall have obtained the specific approval of the Employer as
required by Sultani Decrees No. 48 of 1976 as amended unless such
orders are issued pursuant to Clause 15.9 (Urgent Repairs) hereafter.
The Contractor upon receipt of such an order from the Engineer shall
copy such order to the Employer.
2.2
Engineers Representative
The Engineers Representative shall be responsible to the Engineer and
his duties are to watch and supervise the Works and to test and
examine any Plant or workmanship employed in connection with the
Works. The Engineers Representative shall have no authority to relieve
the Contractor of any of his obligations under the Contract nor, except
as expressly provided in Clause 15.9 to order any work involving delay
in completion or any extra payment by the Employer, nor to make any
variation to the Works.
Where the Employer directly appoints a separate Consultant the
Consulting Engineer may be required to appoint such Consultant to act
as Engineers Representative in pursuance of Clause 2.3 of the
Conditions of Contract.
37
2.3
Engineers Power to Delegate

The Engineer may from time to time in writing delegate to the
Engineers Representative any of the powers, discretions, functions
and/or authorities vested in him and he may at any time revoke any
such delegation. The Engineer shall furnish to the Contractor and to the
Employer a copy of any such written delegation or revocation. No such
delegation or revocation shall have effect until a copy thereof has been
delivered to the Contractor. Any written decision, instruction or approval
given by the Engineers Representative to the Contractor in accordance
with such delegation shall bind the Contractor and the Employer as
though it had been given by the Engineer provided always that:
(a) Any failure of the Engineers Representative to disapprove any Plant
or workmanship shall not prejudice the power of the Engineer
thereafter to disapprove such Plant or workmanship and to order the
rectification thereof in accordance with these Conditions,
(b) If the Contractor shall be dissatisfied by reason of the decision of the
Engineers Representative he shall be entitled to refer the matter to
the Engineer who will thereupon either confirm, reverse or vary such
decision in accordance with Clause 11.0 (Engineers Decisions).
2.4
Engineer to Act Fairly

Wherever by these Conditions the Engineer is required to exercise his
discretion, by the giving of a decision, opinion, consent or to express
satisfaction or approval, or to determine value or otherwise take action
which may affect the rights and obligations of either the employer or the
Contractor, the Engineer shall exercise such discretion fairly within the
terms of the Contract and having regard to all the circumstances. If
either party disagrees with the action taken by the Engineer he shall be
at liberty to refer the matter to Arbitration in accordance with Clause
49.0 (Disputes and Arbitrations).
3.0
ASSIGNMENT AND SUB-LETTING
3.1
Assignment
The Contractor shall not assign the Contract or any part thereof or any
benefit, obligation or interest therein or thereunder, otherwise than by a
charge in favour of the Contractors Bankers of any Monies due or to
become due under the Contract, without the prior written consent of the
Employer.
38
3.2
Sub-letting
The Contractor shall not sub-let the whole of the Works. Except where
otherwise provided by the Contract, the Contractor shall not sub-let any
part of the Works without the prior written consent of the Engineer
which shall not be unreasonably withheld. Any such consent, if given,
shall not relieve the Contractor from any liability or obligation under the
Contract and he shall be responsible for the acts, defaults and neglects
of any Sub-Contractor, his agents, servants or workmen as fully as if
they were the acts defaults or neglects of the Contractor his agents
servants or workmen.
4.0
CONTRACT DOCUMENTS
4.1
Languages
4.2
(a)
The Ruling Language of the Agreement is the English language.
(b)
All correspondence between the Employer, Engineer and the Contractor shall be in
English.
(c)
All markings on equipment, labels, sign-boards, instruments dials, machine and

component name plates, instruction sheets and shipping marks shall be in both
Arabic and English.
Compliance with Laws and Governing Law

(a)
The Contractor shall, in the manufacture of the Plant, observe and comply with and
be bound by the laws of the country of manufacture. In the execution of work on
Site and in the erection and operation of the Works the Contractor shall comply
with laws of the Sultanate of Oman,
(b)
The Contractor shall comply fully with the Laws concerning the appointment of
agents, the provision of the regular maintenance and repair facilities together with
the establishment in the Sultanate of Oman of a sufficient amount of spare parts to
ensure the same,
(c)
The Contract shall be governed by and construed in accordance with the Laws of
the Sultanate of Oman,
39
(d)
The Contractor and his Sub-Contractors shall strictly observe the Boycott of Israel
law and no materials shall be supplied which have been manufactured by any firm
which is on the Boycott list nor shall any materials be shipped in any vessel which
is on the said list.
Each delivery of materials shall be accompanied by:
i) a certificate of origin countersigned by the Chamber of Commerce in the
country of origin,
ii) a manufacturers certificate stating that his goods do not include any materials
manufactured or made in Israel; the certificate shall be countersigned by the
nearest Sultanate of Oman Embassy. In countries where the Sultanate of Oman
has no diplomatic representation counter-signatures by any acceptable Arabian
Embassy.
4.3
Documents mutually explanatory

Unless otherwise provided in the Contract, the several documents forming the Contract are
to be taken as mutually explanatory of one another but in the case of ambiguities or
discrepancies the same shall be explained and adjusted by the Engineer, who shall
thereupon issue to the Contractor instructions thereon. Provided always that if, in the
opinion of the Engineer, compliance with any such instructions shall involve the Contractor
in any cost which, by reason of such ambiguity or discrepancy the Contractor could not
have reasonably foreseen, the Engineer shall, subject to the provisions of Clause 2.1,
certify and the Employer shall pay such additional sum as may be reasonable to cover such
cost.
5.0
DRAWINGS AND SPECIFICATIONS
5.1
Outline Drawings and Outline Specification

The Engineer shall provide, as a basis for the Contract, Outline Drawings and Outline
Specifications.
5.2
Drawings and Specification Approval Procedure

The Contractor shall submit to the Engineer for approval:
5.2.1
(a) Strictly within the times stated in the Specification or in the programme to be provided
under Clause 12.0 (Programme), such Drawings, calculations, samples, patterns, models
and information as may be called for therein, and in the numbers therein required or as the
Engineer may reasonably require in order to properly consider the design of the Works.
40
(b) During the progress of the Works and within such times as the Engineer reasonably
may require such Drawings of the general arrangement and details of the Works provided
that the Contractor shall not be under any obligation to supply copies of shop drawings.
5.2.2
(a)
Drawings to be supplied either by the Contractor or his Sub-Contractors

shall be checked thoroughly by the Contractor with regard to
measurements, size of components, materials and details of mechanical
and electrical services, instrumentation, control equipment, civil and
building works, to satisfy himself that the Drawings conform to the
requirements and the intent of the Outline Specification, and the
Contractor shall place thereon the date of his approval. Drawings found to
be inaccurate or otherwise in error shall be corrected prior to submission to
the Engineer.
(b)
All Drawings prepared or furnished by the Contractor shall be marked

with the title or the Works, certified by the Contractor and Sub-Contractors
respectively, and shall be submitted to the Engineer in as many copies as
specified in the Appendix to the Form of Tender. Each submission of
Drawings shall be accompanied by a list giving the number and titles
thereof. All Drawings which require modifications as a result of the final
execution of the erection work and/or operational experience shall be
revised by the Contractor and reissued marked as As Built Drawings.
(c)
The Contractor shall submit, in accordance with his approved programme,

such information and Drawings to show that the requirement and intent of
the Outline Specification and Outline Drawings has been met which,
without limiting the generality of this Clause, this shall include such
schedules of plant assembly drawings, major assemblies and plant layout
arrangement, complete design drawings and design calculations for steel
structures of the Plant, schematic or flow diagrams, wiring diagrams
complete with mechanical and electrical services, together with such other
Drawings and detailed Drawings as may be required by the Engineer to
properly consider the design. All information or data shall be available for
checking each Drawing when it is received. Revised Drawings shall be
resubmitted for approval unless otherwise instructed by the Engineer. Any
revisions shall be plainly marked on the Drawings together with the dates
and an indication of the changes.
(d)
All Drawings shall be in metric and have a title, serial number, issue
record and scale together with the name of the Employer, the Project, the
Engineer and the subject matter.
(e)
The Contractor shall submit Drawings and full particulars of all Temporary
Works to the Engineer before commencing the same. The Engineer may
require modifications to be made if he considers them to be insufficient
and the Contractor shall give effect to such modification but shall not be
relieved of his responsibility for the sufficiency thereof.
41
5.2.3
As far as Drawings, calculations, Specification, data sheets, lists reports or any other
documents are subject to the Engineers approval or comments, the Engineers approval
will be given within twenty eight (28) days of receipt of such documents. If documents
submitted by the Contractor are incomplete and the Engineer is not in a position to check
the documents then the Engineer will inform the Contractor and the above mentioned
twenty eight (28) days period shall start after receipt of the required complementary
information. The same applies if any documents cannot be approved owing to the fact that
mistakes, discrepancies, deviations from the Contract Documents or other inconsistencies
are found and the Contractor is requested to submit the documents after rectification.
If the Engineer shall not approve any Drawing, calculations, sample, patterns or models so
provided the same shall be forthwith modified to meet the requirements of the Engineer
and shall be re-submitted. Approved Drawings shall be signed or otherwise identified by
the Engineer.
All documents submitted for approval shall be accompanied by a transmittal letter, listing
the said documents. The transmittal letters shall be serially numbered, with the relevant
number to be entered on each submitted document.
5.3
Approved Drawings
Drawings approved as above described shall not be departed from except as provided in
Clause 34.0 (Variations). In such case the Contractor shall submit new or amended
Drawings for approval which state clearly the revised reference number together with the
date of the amendment thereto. When approval has been given all copies of the superseded
Approved Drawings shall be clearly marked Superseded.
5.4
Inspection of Drawings
The Engineer shall have the right at all reasonable times to inspect all Drawings
comprising of the works at the premises of the Contractor and that of his Sub-Contractors.
42
5.5
Foundation Drawings
The Contractor shall, as required by the Engineer, within the times stated, provide
Drawings showing the manner in which the Plant is to be affixed together with all
information relating to the Works, required for preparing suitable foundations, for
providing suitable access for the Plant and any necessary equipment to the point on Site
where the Plant is to be erected and for making all necessary connections to the plant
(whether such connections are to be made by the Contractor under the Contract or not).
Such Drawings shall be submitted in due time to allow for incorporation of such
information within the programme for the Works.
5.6
Errors in Drawings
Subject to Clause 6.1 (Mistakes in Information) any and all expenses resulting from an
error or omission in or from delay in delivery of the Drawings and information required in
accordance with this Clause shall be borne by the Contractor.
5.7
Operating and Maintenance Instructions
5.7.1
The Contractor shall furnish to the Employer as soon as possible and not later than the
period stated in the Appendix to the Form of Tender, before the Works are taken over,
Operating and Maintenance Instructions together with Drawings (other than shop
drawings) of the Works as completed, in sufficient detail to enable the Employer to allow
training of the Employers personnel and to operate, maintain, dismantle, reassemble and
adjust all parts of the Works. Unless otherwise agreed, the Works shall not be considered to
be completed for the purposes of taking over under the terms of Clause 32.0 (Taking Over)
until such Instructions and Drawings have been supplied to the Employer.
5.7.2
Two copies of the final Drawings of the Works as completed As Built Drawings shall be
prepared by the Contractor and forwarded to the Employer. These Drawings shall contain
sufficient detail to enable the Employer to maintain, dismantle, reassemble and adjust all
parts of the Works.
5.7.3
All Drawings incorporated in the operations, instructions and maintenance manuals as well
as all key drawings, i.e., general arrangement drawings, system diagrams, flow diagrams,
single line diagrams, control diagrams, if applicable, and all others considered by the
Engineer to be necessary, shall in addition to the original dimension of the Drawings be
supplied in a reduced size for easy handling.
43
5.7.4
All instruction sheets shall be bound in booklet form and be in the Arabic and English
language containing all information, description of equipment, diagrams, etc., necessary to
enable the Employer to properly operate and maintain the whole of the Works. Such
booklet shall include all possible operating procedures such as star-up, shut-down as well
as operating forms and operators log sheets for all mechanical and electrical plant and
equipment. The various instructions shall be written in a style easily intelligible for the
operating and maintenance personnel explaining, for various situations, what is to be done
and why.
5.7.5
The Contractor shall during the Defects Liability Period revise and/or update the operating
and maintenance instructions and introduce such modifications in the finally bound copies.
5.7.6
The Contractor shall prepare, assemble and submit spare parts lists in accordance with the
Contract Documents for all Plant supplied by him or by his Sub-Contractors.
6.0
MISTAKES AND ERRORS
6.1
Mistakes and Information

The Contractor shall be responsible for the consequences of any discrepancies, errors or
omissions in the Drawings and information supplied by him, whether they have been
approved by the Engineer or not, provided that such discrepancies, errors or omissions are
not due to incorrect information contained in the Outline Drawings, Outline Specification
or inaccurate information furnished to the Contractor in writing by the Engineer. Should
the Contractor rely upon such incorrect information then the Contractor shall have the right
to claim compensation form the Employer based upon satisfactory proof of the exact
amount of the time and costs expended in making such alteration to the Drawings and the
rectification of such Works performed to date.
6.2
Errors by Contractor
The Contractor shall at his own expense carry out any alterations or remedial work
necessitated by reason of such discrepancies, errors or omissions for which the is
responsible and modify the Drawings and information accordingly, or if the same be done
by or on behalf of the Employer shall bear all costs reasonably incurred thereby. The
performance of his obligations under this sub-clause shall not relieve the Contractor from
his liability under Clause 5.6 (Errors in Drawings) together with Clause 6.1 (Mistakes in
Information) and under Clause 31.1 (Penalty for Delay in Completion) insofar as that
liability arises as a result of such discrepancies, errors or omissions.
44
45
6.3
Errors by Engineer
The Engineers approval of the Contractors and Sub-Contractors Drawings shall not
relieve the Contractor from his responsibility for errors or omissions which may exist, even
though Works are executed in accordance with such approved Drawings. Where such
errors or omissions are discovered later, they shall be made good by the Contractor at his
own expense irrespective of any approval of the Engineer. Any work executed according to
the decisions, instructions or orders received from the Engineer shall not in any way relieve
the Contractor from his responsibilities for supplying the Plant and executing the Works in
accordance with the Contract unless the Contractor has informed the Engineer upon receipt
and in writing that decision, instruction or order will result in the Contractors breach of
Contract and the Contractor has initiated a query or dispute in accordance with Clause
11.0(b) (Engineers Decisions) and has commenced an action under Clause 49.2 (Notice
for Arbitration).
7.0
7.1
OBLIGATIONS OF THE CONTRACTOR

General Obligations
The Contractor shall, subject to the provisions of the Contract, complete the Works with
due care and diligence within the Time for Completion stated in the Appendix to the Form
of Tender. The Contractor shall be fully and unrestrictedly responsible for the complete
design, manufacture, fabrication, testing, transport to port of disembarkation, shipping,
transport to Site, storage, erection, completion, checking, commissioning, testing, handing
over of the Works and for the remedying of defects in the Works so far as the necessity for
providing the same is specified in or is reasonably to be inferred from the Contract. He
shall also be responsible for the observance of all necessary safety measures at the Site as
well as observance of all applicable Laws and Regulations by him and his Sub-Contractors.
The Contractor shall provide all labour, including the supervision thereof, materials and
Contractors Equipment, and all other things whether of a temporary or permanent nature,
necessary to perform the Works.
The Contractor shall take full responsibility for the adequacy, stability and safety of all site
operations and methods of construction, provided that the Contractor shall not be
responsible, except as may be expressly provided in the Contract, for such detailed design
drawings or detailed specification of the Permanent Works or any Temporary Works which
have been prepared by the Engineer and utilized by the Contractor in constructing same.
46
7.2
Setting Out
The Contractor shall be responsible for the accurate setting out of the Works in relation to
original points, lines and levels of reference given by the Engineer in writing and for the
correctness, subject as above mentioned, of the positions, levels, dimensions and alignment
of all parts of the Works and for the provision of all necessary instruments, appliances and
labour in connection therewith. If, at any time during the progress of the Works, any error
shall appear or arise in the positions, levels, dimensions or alignment of any part of the
Works, the Contractor on being required so to do by the Engineer shall at his own cost,
rectify such error to the satisfaction of the Engineer, unless such error is based on incorrect
data supplied in writing by the Engineer in which case the Contractor should inform the
Engineer in writing and the cost of rectifying the same shall be borne by the Employer. The
checking of any setting out or of any line or level by the Engineer shall not in any way
relieve the Contractor of his responsibility for the accuracy thereof. The Contractor shall
carefully protect and preserve bench marks, sight rails, pegs and other things used in
setting out the Works.
The Contractor shall give to the Engineer not less than 24 hours notice of his intention to
set out or give levels for any part of the Works so that arrangements may be made for
checking or issuing instructions.
7.3
Training of Employer 's Personnel

(a) During the execution of the Works the Contractor shall if required by the Tender
Documents provide such assistance as may be necessary for the instruction and
training of operation and maintenance personnel appointed by the Employer for the
Plant.
(b) The Contractor shall provide all necessary instruction material for this purpose
such as manuals, booklets, pamphlets, drawings, sketches, models, pictures,
photos, colour slides, films, etc. This instruction material shall become the
property of the Employer. If the Employer finds it necessary that operation and
maintenance personnel visit or stay at the manufacturer's premises for training
purposes the Contractor shall provide such reasonable assistance as deemed
necessary. The travelling and living expenses of such personnel shall be borne by
the Employer. The Contractor shall assist the Employer in the recruiting of any
additional operation and maintenance personnel.
47
7.4
Operation of Plant
The Contractor shall, if required by the Tender Documents, give a breakdown of prices for
the operation of the Plant for such period or periods stated therein. In the absence of such a
requirement or should the Employer not approve the offer than the obligations of the
Contractor save for Clause 33.0 (Defects after Taking Over) and Clause 15.4 (Damages to
Persons and Property after Taking Over)shall cease upon the issue of the Taking Over
Certificate. In the event that the Employer approves the offer than this shall be subject to a
separate Agreement with its own specific terms and conditions, however, without limiting
the liability of the Contractor under the terms and Conditions contained herein.
8.0
AGREEMENT ANDPROCEDURES
8.1
Form of Agreement
The Contractor shall when called upon so to do enter into and execute a Farm of
Agreement to be prepared and completed at the cost of the Employer in the form annexed
with such modification as may be necessary.
8.2
Government Procedure
The proposed Contract will, if the Contract Sum exceedsR0.500,000.000, be subject to
review by the Cabinet of the Deputy Prime Minister of Legal Affairs of the Sultanate of
Oman, after which the Contract will be signed by the authorised signatory of the Employer
and the Contractor and will then be subject to ratification in accordance with Sultani
Decree No. 48/76 as amended.
8.3
Fixed Price
That Contractor shall not be eligible for any increase in the Contract Sum due to the time
taken by the Employer for the finalisation of the Form of Agreement as stated in Clause 8.2
hereof.
Subject to Clause 52.0 (Changes in Cost and Legislation) this Contract is a Fixed Price
Contract and there shall be no amendment or adjustment of the Contract Sum unless due to
Clause 34.0 (Variations) hereof.
48
9.0
BONDS
9.1
Performance Bond
For the due performance of the contract, the Tender shall contain an undertaking by the
Contractor to obtain, within either 10 days for a local company or 20 days for an
International Company from the date of the Letter of Acceptance, a bond of a bank
registered in the Sultanate of Oman to be jointly and severally bound with the Contractor to
the Employer, in the sum of 5% of the Contract Sum. The said bank shall be approved by
the Employer. The terms of the said bond shall be in accordance with Annexure C and the
cost of obtaining such bond shall be at the expense of the Contractor. Such bond should be
valid until the expiry of the Defects Liability Period. If an increase of the Contract Sum is
mutually agreed upon owing to any changes and/or modifications and/or amendments as
per Clause 34.0 (Variations) the Performance Bond shall be adjusted accordingly.
9.2
Advance Payment Bond

The bond for the full amount of the Advance Payment shall be from a Bank registered in
the Sultanate of Oman. The conditions of the bond shall bind the Bank: to indemnify and
pay to the Employer any part of the Advance Payment which remains not repaid by the
Contractor to the Employer and which the Contractor has failed to repay in accordance
with Clause 37.7(Advance Payments).
The terms of the said bond shall be in accordance with Annexure-Band the cost of
obtaining such bond shall be at the expense of the Contractor.
This bond shall be valid for I2 months or until the full recovery of the advance payment
whichever is the later.
If, however, the advance payment is recovered in full prior to the end of the 12 month
period, the Contractor may make application to the Employer far the release of the bond,
and such release will not be unreasonably refused.
10.0
CONTRACT DATA
10.1
Site Data
The Employer shall make available to the Contractor with the Tender Documents such data
on climatic, hydrological and general conditions for the operation of the Works which shall
have been obtained by or on behalf of the Employer from investigations undertaken
relevant to the Works together with information relating to access to the Site. The Tender
shall be deemed to have been based on such data, but the Contractor shall be fully
responsible for his own interpretation thereof.
49
10.2
Sufficiency of Tender
The Contractor by tendering shall be deemed to have satisfied himself as to all the
conditions and circumstances affecting his Tender, including but not limited to the nature
and character of the Works to be executed, the prevailing environmental and ambient
conditions, local uses, codes and conditions, the existing installations (if any), the
possibility of executing the Works as required by the Contract, the general circumstances at
the Site of the Works, and as to the general labour position at the Site, and to have
determined his prices accordingly. The Contractor shall be responsible for all errors made
and for any misunderstanding or incorrect information subject to Clause 6.0 (Mistakes and
Error) hereof. Any information received from the Employer or the Engineer shall not
relieve the Contractor from his responsibility for executing the Works in accordance with
the Contract, including details and apparatus which may not have been specifically
mentioned in the contract but are necessary for ensuring the safe and efficient execution of
the Works.
10.3
Errors in Computing Tender

The Contractor shall be fixed and the Contractor shall be responsible for any error which
he may have made in computing any quantities of labour and material required or costs
involved.
The Contract Sum shall not be allowed to be corrected for any errors made by the
Contractor in calculating the Contract Sum.
11.0
ENGINEERS DECISIONS
The Contractor shall proceed with the Works in accordance with the decisions, instructions
and orders given by the Engineer in accordance with these Standard Conditions of
Contract, provided always that:
(a) If the Contractor shall, within 7 days after being given any decision, instruction or
order otherwise than in writing, require it to be confirmed in writing, such decision,
instruction or order shall not be effective until written confirmation thereof has been
received by the Contractor; and
(b) If the Contractor shall, by written notice to the Engineer within 21 days after receiving
any decision, instruction or order of the Engineer in writing or written confirmation
thereof, dispute or question the decision, instruction or order, giving his reasons for so
doing, the matter shall be referred to the Engineer who shall within a further period of
21 days by notice in writing, with reasons there for, to the Contractor and the
Employer, either confirm, reverse or vary such decision.
50
12.0
PROGRAMME
12.1
Within the time stated in the Appendix to the Form of Tender following ratification of the
Form of Agreement the Contractor shall submit to the Engineer for his approval a detailed
programme showing, in such form as may be required by the Engineer, the order of
procedure in which he proposes to carry out the Works including the design, manufacture,
delivery to Site, erection and commissioning thereof. The submission to and approval by
the Engineer of such programme shall not relieve the Contractor of any of his duties or
responsibilities under the Contract.
12.2
Procedure and Method

After submission to and approval by the Engineer of such programme the Contractor shall
adhere to the order of procedure and method stated therein unless he obtains the written
permission of the Engineer to vary such order or method.
12.3
Progress of Works
If at any time it should appear to the Engineer that the actual progress of the Works does
not conform to the approved programme, the Contractor shall produce, at the written
request of the Engineer, a revised programme showing the modifications to the approved
programme necessary to ensure completion of the Works within the Time for Completion.
12.4
Advanced Detailed Progress of Plant Schedule

(a) The Contractor shall supply within the time stated in the Appendix to the Form of
Tender following ratification of the Form of Agreement an advanced detailed progress
schedule covering, as far as applicable at that time, the envisaged date of manufacture and
key dates for the entire Plant and each section of the Plant such as:
Contractor's Plant:
- Schedule of design and submission of Drawing dates for approval.
- Schedule of fabrication dates.
- Schedule of workshop test dates.
- Final delivery ex-works dates.
- Port of embarkation, estimated time of departure, mode of transport, estimated time of
arrival.
51
Sub-Contractor's Plant:
-
Date of placing order indicating:

Manufacturers name and location
Accounting code numbers applicable thereto
Contractor's job order number
Date of order
Workshop test dates
Schedule of ex-works dates
Schedule of shipping dates
Other information:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Such progress information shall be brought up to date every month and shall form the basis for the
follow-up and expediting services to be performed by the Engineer.
(b)
(i)
The Contractor shall submit to the Engineer any and all reasonable information
required by him at any time during manufacture. This information shall clearly and
accurately show the progress of work and the actual state of affairs.
(ii)
During the period of shop fabrication, the Contractor shall submit monthly reports
in conformity with the Engineer's request. Such reports shall show the actual
progress as of the date of the report plotted against the progress schedule as given
in the Contract and shall be broken down to indicate the state of purchased
material, detailed shop fabrication schedule, shipping dates, etc.
(iii)
The inspections and expediting work carried out by the Engineer shall not release
the Contractor from any of his obligations under this Contract.
(iv)
Periodic routine visits as deemed necessary will be undertaken by the Engineer to

the manufacturer's premises to check the actual state of work.
(v)
Travelling expenses (transportation and hotel costs only) incurred by the Engineer
outside of the Sultanate of Oman in connection with co-ordination meetings,
checking the progress of work, expediting of work, necessary routine visits, etc., to
the Contractor's/Sub-Contractors offices and/or premises shall be borne by the
Employer.
52
13.0
CONTRACTORS SUPERINTENDENCE
13.1
Contractor's Representative
The Contractor shall give or provide all necessary superintendence during the execution of
the Works and as long thereafter as the Engineer may consider necessary for the proper
fulfillment of the Contractor's obligations under the Contract. The Contractor, or a
competent and authorised agent or representative approved of in writing by the Engineer,
which approval may at any time be withdrawn, is to be present on the Site during all hours
worked by the Contractor and shall give his whole time to the superintendence of the same.
If such approval shall be withdrawn by the Engineer, the Contractor shall, as soon as is
practicable, having regard to the requirements for a replacement as hereinafter mentioned,
after receiving written notice of such withdrawal, remove the agent from the Works and
shall not thereafter employ him again on the Works in any capacity and shall replace him
by another agent approved by the Engineer. Such authorised agent or representative shall
receive, on behalf of the Contractor, directions and instructions from the Engineer, or,
subject to the limitations of Clause 2.0 hereof, the Engineer's Representative.
13.2
Contractors Employees
The Contractor shall provide and employ on the Site in connection with the execution,
completion and remedying of defects of the Works:
(a) Only such technical assistants as are skilled and experienced in their respective callings
and such sub-agents, foreman and leading hands as are competent to give proper
supervision to the work they are required to supervise; and
(b) Such skilled, semi-skilled and unskilled labour as is necessary for the proper and
timely execution, completion and remedying of defects of the Works.
13.3
Notice of Objection
The Engineer shall be at liberty to object: to and require in writing the Contractor to
remove forthwith from the Works any person employed by the Contractor in or about the
execution, completion and remedying of defects of the Works who, in the opinion of the
Engineer, misconducts himself, or is incompetent or negligent in the proper performance of
his duties, or whose employment is otherwise considered by the Engineer to be undesirable
and such person shall not be again employed upon the Works without the written
permission of the Engineer. Any person so removed from the Works shall be replaced as
soon as possible by a competent substitute approved by the Engineer.
53
13.4
Proficiency of Languages
The Contractor's agent and a reasonable proportion of his technical
assistants shall be capable of speaking, writing and understanding the
language(s} of the Contract Documents. A sufficient number of the
foreman shall have a working knowledge of the language(s) spoken by
the labour employed on the site.
14.0
EQUIPMENT SERVICES FACILITIES
14.1
Contractor's Equipment
The Contractor shall, at his own expense, provide all Contractor's
Equipment, haulage and power necessary to execute and complete the
Works.
14.2
Safety and Security

The Contractor shall throughout the progress of the Works have full
regard for the safety of all persons upon the Site and shall keep the Site
(so far as the same is under his control) and the Works (so far as the
same are not completed and taken over by the Employer) in an orderly
state appropriate to the avoidance of danger to such persons and shall,
without prejudice to the foregoing, in connection with the Works provide
and maintain at his own cost all lighting, guards, fencing, warning signs
and watching when and where necessary or required by the Engineer or
by any competent authority, for the protection of the Works, or for the
safety and convenience of the public or others.
The Contractor shall also be responsible for the safety and provision of
temporary roadways, footways, guards and fences for the
accommodation and protection of owners and occupiers of adjacent
property, the public and others.
14.3
Electricity, Water and Gas

The Contractor shall be entitled to use for the purposes of the Works
such supplies of electricity, water and gas as may be available on the
Site and of which details may be given in the Tender Documents and
shall, at his own expense, provide any apparatus necessary for such use
including meters and pay to the Employer all charges made for such use
of these supplies.
Save as stated above, the Contractor shall at his own expense make all
his own arrangements for the distribution of electricity, water and gas to
all points where they are required for all the operations under the
Contract and for this purpose he shall provide and use all the necessary
Constructional Plant, Temporary Works and transport
and materials necessary to supply and distribute the supplies to the
various parts of the Works, including else a satisfactory supply of water
54
to the offices, camps, latrines and other temporary buildings requiring it

and a sufficient supply for drinking water of good quality for the
personnel of the Contractor.
14.4 Employer's Equipment

The Employer shall at the request of the Contractor and for the
execution of the Works allow the Contractor to operate any suitable
equipment belonging to the Employer that may be available on the Site
and of which details are given in the Tender Documents. The Employer
shall during such operation retain ownership of the equipment but shall
not be responsible for any acts of the Contractor in relation to such
equipment.
14.5
Opportunities for other Contractors

The Contractor shall, in accordance with the requirements of the
Engineer, afford to any other contractors employed by the Employer and
their workmen and the workmen of the Employer and of any other duly
constituted authorities who may be employed in the execution on or
near the Site of any work not included in the Contract or of any contract
which the Employer may enter into in connection with or ancillary to the
Works, all reasonable opportunities for carrying out their work.
15.0
LIABILITY FOR ACCIDENTS AND DAMAGE
15.1
Care of the Works

(a) The Contractor shall take full responsibility for the care of the Works
or any Section or Portion thereof until a date not exceeding 14 days
from that stated in the Taking over Certificate issued in respect thereof
under Clause 32.0 (Taking Over) and in case any damage or loss shall
happen to any Portion of the Works not taken over as aforesaid, from
any cause whatsoever (save and except the excepted risks as defined in
paragraph (b) of this sub-clause) the same shall be made good, by and
at the sole cost of the Contractor and to the satisfaction of the Engineer.
The Contractor shall also be liable for any loss of or damage to the
Works occasioned by him or by any Sub-Contractor in the course of any
operations carried out by him or by his Sub-Contractors for the purpose
of completing any outstanding work or complying with his obligations
under Clause 33.0 (Defects after Taking Over).
(b)
The excepted risks are:

55
(i)
Force Majeure
- insofar as they occur within the Sultanate of Oman, war,
hostilities (whether war be declared or not), invasion,
act of foreign enemies, rebellion, revolution, insurrection
or military or usurped power, civil war, riot, commotion
or disorder of persons other than employees of the
Contractor or of his Sub-Contractor or use or occupation
by the Employer of any part of the Works; or
ionizing radiation or contamination by radio-activity from any nuclear

fuel or from any nuclear waste from the combustion of nuclear fuel,
radio-active toxic explosive, or other hazardous properties of any
explosive, nuclear assembly or nuclear component thereof; or
Pressure waves caused by aircraft or other aerial devices travelling at

sonic or supersonic speeds.
15.2
(ii)
any occurrences that an experienced contractor could not

foresee, or if foreseeable could not reasonably make
provision for or insure against.
(iii)
a cause due to a design furnished or specified by the

Engineer for which the Contractor has disputed such design
under Clause 11.0(b) (Engineers Decisions) and has
disclaimed responsibility in writing after the receipt of the
Engineers Decisions and has commenced an action under
Clause 49.2 (Notice for Arbitration).
Damage to Works caused by Excepted Risks

In the event of loss or damage to the Works arising from or occasioned
by any of the excepted risks (save and except the Special Risks as
defined in Clause 47.2 (Special Risks Definition)], the same shall, if
required by the Employer, be made good by the Contractor but at the
cost of the Employer at a price to be agreed between the Contractor and
the Engineer subject to Clause 2.1 (Engineers Duties) hereof.
15.3
Damage to Persons and Property before Taking Over

The Contractor shall indemnify the Employer in respect of death or
injury to any persons and of all damages to any property occurring
before all the Works shall have been taken over and against all actions,
suits, claims, demands, costs, charges and expenses arising in
connection therewith that shall be occasioned by the negligence of the
56
Contractor or any Sub-Contractor or by defective design, [other than a

design made, furnished or specified by the Engineer and for which the
Contractor has disclaimed responsibility in writing in accordance with
Clause 11.0(b) (Engineers Decision)] materials or workmanship but not
otherwise. Provided that the Contractor shall not be liable by virtue of
this Sub-Clause in respect of damage or injury attributable to defects in
any Section of Portion of the Works after expiry of the Defects Liability
Period subject to Clause 56.1 (Guarantee of Material and Workmanship).
15.4
Damages to Persons and Property after Taking Over

If there shall occur any loss of or damage or injury to any property or
person whilst the Contractor is on the Site for the purpose of making
good a defect in any Section or Portion of the Works pursuant to Clause
33.0 (Defects after Taking Over) or for the purpose of carrying out Tests
on Completion of any such Section during the Defects Liability Period as
provided in Clause 32.4 (Interference with Tests) the Contractor shall be
liable as follows:
(a) In respect of loss of or damage to the said Section or Portion the
Contractors obligations shall be as defined in Clause 33.0
(Defects after Taking Over).
(b) In respect of damage or injury to any other property or to any
person and of any actions, claims, demands, costs, charges and
expenses arising in connection therewith the Contractor shall be
liable to the extent that such damage or injury was caused by the
negligence of the Contractor or a Sub-Contractor whilst on the
Site as aforesaid or by defective materials or workmanship used
in making good the said defect but not otherwise.
The said Section or Portion of the Works shall be defined by reference to
the Taking Over Certificate issued in respect thereof pursuant to Clause
32.0 (Taking Over).
15.5
Damage to Persons and Property from a cause occurring before Taking Over
57
If there shall occur, after the commencement of the Defects Liability

Period in respect of any Section or Portion of the Works, any loss of or
damage or injury to any property or persons as a result of a cause
occurring prior to the commencement of the Defects Liability Period the
Contractors liability shall be as follows:
(a) In respect of loss of a damage to the said Section or Portion the
Contractors obligations shall be as defined in Clause 33.0 (Defects
after Taking Over).
(b) In respect of damage or injury to any property or to any person and
of any actions, claims, demands, costs, charges and expenses arising
in connection therewith the Contractor shall be liable to the extent
that such damage or injury was caused by the negligence of the
Contractor or a Sub-Contractor or by defective design, (other than a
design made, furnished or specified by the Engineer and for which
the Contractor has disclaimed responsibility in writing in accordance
with Clause 11.0(b) (Engineers Decision)) materials or workmanship
but not otherwise.
15.6
Claims for Damage to Persons or Property

In the event of any claim being made against the Employer arising out
of the matter referred to in and in respect of which the Contractor may
be liable under this Clause, the Contractor shall be promptly notified
thereof, and may at his own expense conduct all negotiations for the
settlement of the same and any litigation that may arise therefrom. The
conduct by the Contractor of such negotiations or litigation shall be
conditional upon the Contractor having first given to the Employer such
reasonable security as shall from time to time be required by the
Employer to cover the amount ascertained or agreed or estimated, as
the case may be, of any compensation, damages, expenses and costs
for which the Employer may become liable. The Employer shall, at the
request of the Contractor, afford all available assistance for any such
purpose and shall be repaid all reasonable costs incurred in so doing.
If the Employer has to pay or elects to pay or elects to pay any money in
respect of any such claims or demands as aforesaid, the amount so paid
and the cost incurred by the Employer shall be charged to and paid by
58
the Contractor, provided always that the Employer shall, if

circumstances permit, give to the Contractor reasonable opportunity of
examining such claims or demands before payment. In the event of the
Contractor disputing the amount of any payment (except payments
made in accordance with a legal obligation or after approval of the
Contractor) then the Contractor shall have the right to refer the matter
to arbitration in accordance with Clause 49.2 (Notice for Arbitration).
15.7

The Contractor shall indemnify the Employer against all actions, suits,
claims, demands, costs of expenses arising in connection with death or
injuries (other than such as may be the responsibility of the Employer,
his agents or servants) suffered by persons employed by the Contractor
or his Sub-Contractors on the Works, whether at Law or under any
Regulations dealing with the question of the liability of employers for
injuries suffered by employees.
The Contractor shall also indemnify the Employer and every member,
officer and employee thereof and the Engineer and the Engineers
Representatives and every member of his staff against any claim or
demand from accident, injury, damage, loss and/or compensation of any
kind whatsoever arising out of or in connection with all claims and
demands which may be made against the Employer for or in respect of
or arising out any failure by the Contractor in the performance of his
obligations under any of the provisions of the Contract.
If the Employer has to pay or elects to pay any money in respect of any
such claims or demands as aforesaid, the amount so paid and the cost
incurred by the Employer shall be charged to and paid by the
Contractor, provided always that the Employer shall, if circumstances
permit. give to the Contractor reasonable opportunity of examining such
claims or demands before payment. In the event of the Contractor
disputing the amount of any payment (except payments made in
accordance with the legal obligations or after approval of the
Contractor} then the Contractor shall have the right to refer
the matter to arbitration in accordance with Clause 49.2 (Notice for
Arbitration).
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15.8
Damage to Services on Site

The Contractor shall not interfere with the Employer's or any other
authorities supplies and services on Site of whatsoever nature such as,
but not limited to oil, electricity, water and gas, telephone, buried
cables and sewerage. If any such supply or service is
interfered with and/or damaged, the Contractor shall report it
immediately to the Employer and to the Engineer verbally and in
writing.
The Contractor shall be responsible for any damage caused on Site to
such supplies or services of the various authorities concerned, unless
such services are not shown in any record which either the Employer,
Engineer, or the relevant authorities in Oman have put at
the Contractor's disposal and a prudent Contractor would have no
reason for suspecting such services were present.
Should the Contractor consider it necessary to interfere with any such
supplies and services or should it be necessary under the Contract to do
so then the Contractor shall request the approval of the Engineer in
writing prior to any action and failing which the
provision of this sub-clause shall apply.
In addition to and without prejudice to the generality of the indemnity
referred to above, and to the Contractor's liability for damages
generally, the Contractor shall pay to the Employer in respect of
damage to or interference with any such supply or service a charge to
be fixed by the Employer, or the relevant authority.
15.9
Urgent Repairs
(a)
Notwithstanding the limitations on the Engineer's powers as

stated in Clause 2.1 hereof if, by reason of any accident, or failure, or
other event occurring to, in or in connection with the Works, or any
part thereof, either during the execution of the Works, or during the
Period of Maintenance, any remedial or other work or repair shall, in
the opinion of the Engineer be urgently necessary for the safety of
life or of the Works or of adjoining property, then the Engineer shall
be deemed to have the approval of the Employer to instruct such
work or repair to be carried out immediately.
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(b)
Should the Contractor be unable or unwilling at once to so such work or

repair; the Employer may employ and pay other persons to carry out
such work or repair or to do as the Engineer may consider necessary. If
the work or repair so done by the Employer is work which, in the opinion
of the Engineer, the Contractor was liable to do at his own expense
under the Contract, all expenses properly incurred by the Employer in
doing such work shall be recoverable from the Contractor by the
Employer, or may be deducted by the Employer from any monies due or
which may become due to the Contractor. Provided always that the
Engineer shall, as soon after the occurrence of. any such emergency as
may be reasonably practicable, notify the Contractor in writing of the
probable extent of such third party expenses.
16.0
DAMAGES AND LOSS
16.1

Except as provided in Clause 31.1 (Penalty for Delay in Completion) for a
reduction of the Contract Price for delay and except as provided in
Clause 33.12 (Misconduct), the Contractor shall not be liable to the
Employer by way of indemnity or by reason of any breach of the
Contract for partial loss of use of the Works or of profit or of any contract
or for any indirect or consequential damage that may be suffered by the
Employer in excess of the amount stated in the Appendix to the Form of
Tender.
16.2
Mitigation of Loss
In all cases the party establishing a breach of contract shall be under a
duty ta take all reasonable measures to mitigate the loss which has
occurred provided that he can do so without unreasonable
inconvenience or cost. Should he fail so to do, the party in breach of the
Contract may claim a reduction in the damages.
17.0
INSURANCES, REGULATIONS AND PATENT RIGHTS
17.1
Insurance of Works
(a)
Without limiting his obligations and responsibilities under Clause

15.0 (Liability for Accidents and Damage} hereof, the Contractor
shall insure in the joint names of the Employer and the Contractor
against all loss or damage from whatever cause arising, other
than the excepted risks, for which he is responsible under the
terms of the Contract and in such manner that the Employer and
Contractor are covered for the period stipulated in Clause 15.0
hereof and are also covered during the Defects Liability Period for
loss or damage arising from a cause, occurring prior to the
commencement of the Defects Liability Period, and for any loss or
damage occasioned by the Contractor in the course of any
61
operations carried out by him for the purpose of complying with

his obligation under this Contract.
The Contractor shall insure the Works to the value of the Contract Sum
plus such other additional sum which in the opinion of the Contractor is
sufficient to cover these additional expenses of a nature incidental to
the Contractors responsibilities under Clause 15.1(Care of Works) which
additional sum shall in any event not be less than 15 per cent of the
Contract Sum and shall be stated in the Appendix to the Form of Tender.
Such insurance shall be effected prior to commencement of the Works in
accordance with Clause 17.6 (Policies and Local Insurance}.
(b)
17.2
Should the Works, or any section or portion thereof or any plant

be damaged or lost during the continuance of any of the
insurances aforesaid by any risk insured against, the Contractor
shall proceed with the utmost dispatch to make good such
damage, or loss, and every sum of money received upon the
policy or policies, whether such insurance shall have been
effected by the Contractor or by the Employer or whether the
policies be in the name of either of them or in the joint names as
provided for in Clause 17.1 hereof, shall be paid to the Employer
and be paid by the Employer to the Contractor, by such
installments as the Engineer shall think proper and certify, having
regard to the progress made by the Contractor in making good
the damage or loss as aforesaid, if insofar as such damage ought,
in the opinion of the Engineer, to be made good for the proper
conduct of the Works, or the construction, completion and
maintenance of the Works. If, and insofar as the said monies shall
not be required for the purpose aforesaid, they shall upon the
direction in writing of the Engineer, be paid over to the
Contractor. If and insofar as such monies shall be insufficient for
the purpose aforesaid, the deficiency shall be borne by the
Contractor.
Third Party Insurance

(a)
Before commencing the execution of the Works the Contractor,

without limiting his obligations and responsibilities under Clause
15.6 (Claims for Damage to Persons or Property) shall insure
against his liability for any material or physical damage, loss or
injury which may occur to any property, including that of the
Employer, or to any person, including any employee of the
62
Employer, by or arising out of the execution of the Works or in the

carrying out of the Contract.
17.3
(b)
Such insurance shall be effected for at least the amount stated in

the Appendix to the Form of Tender, per single accident with an
unlimited number of accidents.
(c)
The terms shall include a provision whereby, in the event of any

claim in respect of which the Contractor would be entitled to
receive indemnity under the policy being brought or made against
the Employer, the insurer will indemnify the Employer against
such claims and any costs, charges, and expenses in respect
thereof. If the Employer page any monies in respect of any such
claims or demands as aforesaid the amount so paid and the costs
incurred by the Employer shall be charged to and paid by the
Contractor provided always that, the Employer shall if
circumstances permit give to the Contractor reasonable
opportunity of examining such claim or demand before payment.
In the event of the Contractor disputing the payment, except
payments made in accordance with a legal obligation or after
approval of the Contractor, then the Contractor shall have the
right to refer the matter in accordance with the provisions of
Clause 49.2 (Notice of Arbitration).
Damage to Persons and Property

(a)
The Contractor shall, except if and so far as the Contract provides

otherwise, indemnify and keep indemnified the Employer and his
servants agents or employees against all losses and claims in
respect of injuries or damage to any persons or material or
physical damage to any property whatsoever which may arise out
of or in consequence of the execution, completion and remedying
of defects of the Works and against all claims, proceedings,
damages, costs, charges and expenses whatsoever in respect of
or in relation thereto except any compensation or damages for or
with respect to:
(i)
the permanent use or occupation of land by the Works or

any part thereof,
63
17.4
(ii)
the right of the Employer to execute the Works or any part

thereof on, over, under, in or through any land,
(iii)
injuries or damage to persons or property which are the

unavoidable result of the execution, completion or
remedying of defects of the Works in accordance with
contract,
(iv)
injuries or damage to persons or property resulting from

any act or neglect of the Employer, his agents, servants or
other contractors, not being employed by the Contractor,
or for or in respect of any claims, proceedings, damages,
costs, charges and expenses in respect thereof or in
relation thereto or where the injury or damage was
contributed to by the Contractor, his servants or agents
such part of the compensation as may be just and
equitable having regard to the extent of the responsibility
of the Employer, his servants or agents or other contractor
for the damage or injury.
(b)
The Employer shall indemnify the Contractor against all claims,

proceedings, damages, costs, charges and expenses in respect of
the matters referred to in the proviso to sub-clause (a) above.
(c)
No member of the Employer's staff shall be in any way personally

liable to the Contractor for their acts or obligations under the
Contract or answerable for any default or omission on the part of
the Employer in the observance or performance of any of the acts
matters or things which are contained in the Contract.

(a)
The Employer shall not be liable for or in respect of any damages

or compensation payable at law in respect or in consequence of
any accident or injury to any workman or other person in the
employment of the Contractor or any Sub-Contractor, save and
except an accident or injury resulting from any act or default of
the Employer, his agents or servants. The Contractor shall
indemnify and keep indemnified the Employer against all such
damages and compensation, save and except as aforesaid, and
against all claims, proceedings, costs, charges and expenses
whatsoever in respect thereof or in relation thereto.
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(b)
17.5
17.6
Provided always that, in respect of any persons employed by any

Sub-Contractor, the Contractor's obligation to insure as aforesaid
under this sub-clause shall be satisfied if the Sub-Contractor shall
have insured against the liability in respect of such persons in
such manner that the Employer is indemnified under the policy,
but the Contractor shall require such Sub-Contractor to produce
to the Engineer prior to commencement of the Works, such policy
of insurance and the receipt for the payment of the current and
subsequent premiums within 7 days of payment.
Notification by Contractor
(a)
The Contractor shall notify the insurers of any of the insurances

referred to in Clauses l7.1, 17.2 and 17.4 hereof of any matter or
event which by the terms of such insurances are required to be so
notified and the Contractor shall indemnify and keep indemnified
the Employer against all losses, claims, demands, proceedings,
costs, charges and expenses whatsoever arising out of or
resulting from any default by the Contractor in compliance with
the requirements of this Clause whether as a result of the
avoidance of such insurance or otherwise.
(b)
The Contractor shall keep the Employer informed of all matters

regarding claims submitted by him to the insurers wherein any
advantage from insurance policies is claimed.
Policies and Local insurances

(a)
The Contractor shall prior to the Commencement of the Works,

produce to the Engineer the policy or policies of insurance and
the receipts for payment of current and subsequent premiums
within 7 days of payment.
(b)
All insurances shall be effected with an insurer registered in the

Sultanate of Oman and in terms to be approved by the Employer
whose approval shall not be unreasonably withheld. Such terms
shall exclude the exercise by the insurer of any right of indemnity
against the Employer's servants, agents or employees.
65
17.7
Remedy on Contractor s Failure to Insure

If the Contractor shell fail to effect and keep in force the insurances
referred to in clauses 17.1, l7.2 and 17.4 hereof, or any other insurance
which he may be required to effect under the terms of the Contract,
then and in any such case the Employer may effect and keep in force
any such insurance and pay such premium or premiums as may be
necessary for that purpose and from time to time deduct the amount so
paid by the Employer as aforesaid from any monies due or which may
become due to the Contractor, or recover the same as a debt due from
the Contractor.
18.0
LAWS AND REGULATIONS
18.1
Compliance with Laws and Regulations

the Contractor shall conform in all respects with the Laws of the
Sultanate of Oman and give all notices and pay all fees required
therewith in relation to the execution of the Works and by the
Regulations of ell public bodies and companies whose property or rights
are affected or may be affected in any way by the Works and shall keep
the Employer indemnified against all penalties and liability of every kind
for breach of any such Law, or Regulations.
18.2
Assistance concerning Laws and Regulations

The Employer shell give the Contractor assistance to enable the
Contractor to ascertain the nature and extent of and to comply with any
Laws, Regulations, Orders or By-Laws having the force of law in the
Sultanate of Oman, which may affect the Contractor in the performance
of his obligations under the Contrast, and will if so requested procure for
the Contractor copies thereof at the Contractor's expense.
19.0
PATENT RIGHTS
19.1
Patent Rights
The Contractor shall fully indemnify the Employer against all claims and
proceedings for or on account of infringement of any letters patent,
66
registered design, copyright, trade mark or trade name or industrial

property right, protected at the date of the Contract in the Contractors
country or in the country in which the Plant is to be erected, arising by
reason of the construction of the Works or by the use of any Plant
supplied by the Contractor, but such indemnity shall not cover any use
of the Works otherwise than for the purpose indicated by or reasonably
to be inferred from the Outline Specification or any infringement which
is due to the use of any Plant in association or combination with any
other plant not supplied by the Contractor.
19.2
Claims in respect of Patent Rights

In the event of any claim being made or action brought against the
Employer arising out of the matters referred to in this Clause, the
Contractor shall be promptly notified thereof and may at his own
Contractor shall be promptly notified thereof and may at his own
expense conduct all negotiations for the settlement of the same and any
litigation that may arise therefrom. The Employer shall not, unless and
until the Contractor shall have failed to take over the conduct of the
negotiations or litigation, make any admission which might be
prejudicial thereto. The conduct by eth Contractor of such negotiation or
litigation shall be conditional upon the Contractor have first given the
Employer such reasonable security as shall from time to time be
required by the Employer to cover the amount ascertained or agreed or
estimated, as the case may be, of any compensation, damages,
expenses and costs for which the Employer may become liable. The
Employer shall, at the request of the Contractor, afford all available
assistance for the purpose of contesting any such claim or action, and
shall be repaid all reasonable expenses incurred in so doing.
19.3
Employers Warranty for Patent Rights

The Employer on his part warrants that any design or instructions
furnished or given by him shall not be such as will cause the Contractor
to infringe any letters patent, registered design, trade mark, copyright
or industrial property right in the performance of the Contract.
20.0
GENERAL OBLIGATIONS OF THE EMPLOYER
20.1
Access to and Possession of the Site

Subject to Sub-Clause 4 of this Clause access to and possession of the
Site shall be afforded to the Contractor by the Employer in reasonable
time and, except in so far as the Contract may provide to the contrary,
the Employer shall provide the necessary right of way suitable for the
67
transport of all Plant and Contractors Equipment necessary for the

execution of the Works from an adequate public thoroughfare available
to the Contractor to the point on the Site where it is to be delivered or
used.
20.2
Foundations
The Contractor if required by the Tender Documents shall give sufficient
information as required by the Engineer to complete the design for the
foundations of all Civil Works for the Project and shall safeguard any
building structure, foundation or approach provided by the Employer in
the existing Plant (if any) for transport, reception, installation and
remedying of defects of the Works covered by this Contract and the
Contractor shall be responsible for the repair at his own expense of any
damage caused by him to these constructions, building structures,
roads, etc.
20.3
Authority for Access

In the execution of the Works no persons other than the Contractor, SubContractors and his and their employees shall be allowed on the Site
except by the written permission of the Engineer but facilities to inspect
the Works at all times shall be afforded to the Engineer and his
representatives and other authorities, officials or representatives of the
Employer
20.4
Access not exclusive

The access to and possession of the Site referred to in Sub-Clause 1
hereof shall not be exclusive to the Contractor but only such as shall
enable him to execute the Works.
20.5
Consents Wayleaves
The Contractor shall, before the time specified for delivery of any Plant
to the Site, obtain all consents, wayleaves and approvals required in
connection with the Regulations and By-Laws of local or other
authorities which shall be applicable to the Works. The Employer shall, if
so required by the Contractor, provide assistance as is practicable.
20.6
Import Permits and Licenses

All import permits or licenses shall be obtained either by the Contractor
or through the Contractors local agent at costs to be paid by the
Contractor. The Contractor shall obtain all import permits or licenses
required by any part of the Works in reasonable time having regard to
the time required for issuance from concerned authorities for the
delivery of the Plant and the completion of the Works.
68
69
21.0
HOURS OF WORK AND RATE PROGRESS
21.1
Hours of Work
Unless otherwise provided in the Outline Specification the Employer
shall five the Contractor facilities for carrying out the Works on the Site
continuously during the normal working hours. The Engineer may, after
consulting with the Contractor, direct that work shall be done at other
times if it shall be practicable in the circumstances for work to be so
done.
21.2
No Night or Holiday Work

No work shall be carried out on Site during the night or on holidays
without the consent in writing of the Engineer except if the work is
unavoidable or absolutely necessary for the saving of life or property or
for the safety of the Works in which case the Contractor shall
immediately advise the Engineer. The Engineer shall not unreasonable
withhold any such consent save in exceptional circumstances, nor do so
if work at night or on holidays is considered by the Contractor to be
necessary to meet the Time for Completion. The Contractor shall
reimburse the Employer for any extra costs of supervision.
21.3
Rate of Progress
(a)
If for any reason, which does not entitle the Contractor to an

extension of time, the rate of progress of the Works or any
Section is at any time, in the reasonable opinion of the Engineer,
too slow to ensure completion by the Time for Completion, the
Engineer shall so notify the Contractor in writing and the
Contractor shall thereupon take such steps as are necessary and
the Engineer may approve to expedite progress so as to complete
the Works or such Section by the Time for Completion. The
Contractor shall not be entitled to any additional payment for
taking such steps. If, as a result of any notice given by the
engineer under this Clause, the Contractor shall seek the
Engineers permission to do any work at night or on holidays,
such permission shall not be unreasonable withheld but the
Contractor shall reimburse the Employer for any extra costs of
supervision.
(b)
If, at any time, before the commencement or during the progress

of the Works the Contractors tools, plant or equipment appear to
the Engineer to be insufficient, inefficient or inappropriate to
secure the quality of the work required for the proper rate of
progress, the Engineer may order the Contractor to proper rate of
70
progress, the Engineer may order the Contractor to increase their

efficiency, substitute new tools, plant or equipment as the case
may be, and the Contractor shall comply with such order.
However, either such an order or a failure of the Engineer to
demand such increase of efficiency, number or improvement shall
not relieve the Contractor of his obligations to achieve the quality
of work and the rate of progress necessary to complete the Woks,
within the time required by the Contract to the satisfaction of the
Engineer.
21.4
21.5
Erection Progress Report

(a)
The Contractors agent at Site shall submit a weekly statement of

the number and qualification of the Site personnel daily
employed.
(b)
He shall furthermore submit to the Engineer at monthly intervals

four copies of the detailed progress reports, including charts and
photographs. These reports, shall clearly demonstrate the work
performed and manhours effected during the past month, and the
actual stage of the Works compared with the progress scheduled
to be performed during the past month and compared with the
contractual progress schedule, special events which may have
occurred during the period of the said report and the anticipated
work to be performed during the coming month. These reports
shall be submitted not later than one week after the
commencement of the next month.
(c)
The Contractors agent shall immediately inform the Engineer in

writing of special events which may influence the smooth
progress of work, and of any accidents which may have occurred.
(d)
Periodical meetings will be held between the Employer, the

Engineer and the Contractor's agent. The frequency shall be
agreed upon according to actual requirements.
Clearance of Site on Completion

From time to time during the progress of the Works the Contractor shall
clear away and remove from the Site all surplus materials and rubbish
and on completion of the Works leave the Site in a clean and hygienic
state to the satisfaction of the Engineer
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22.0
LABOUR
22.1
Engagement of Labour
The Contractor shall make his own arrangements for the engagement of
all labour local or otherwise and, save in so far as the Contract
otherwise provides, for the transport, housing, feeding and payment
thereof.
22.2
Supply of Water
The Contractor shall, provide on the Site, to the satisfaction of the
Engineer, an adequate supply of drinking and other water for the use of
the Contractors staff and workpeople.
72
22.3
Alcoholic Liquor or Drugs

The Contractor shall not, otherwise than in accordance with Laws of the
Sultanate of Oman for the time being in force, import, sell, give, barter
or otherwise dispose of any alcoholic liquor or drugs or permit or suffer
any such importation, sale, gift, barter or disposal by his SubContractors agents or employees.
22.4
Arms and Ammunition

The Contractor shall not five, barter or otherwise dispose of to any
person or persons any arms or ammunition of any kind or permit or
suffer the same as aforesaid.
22.5
Festivals and Religious Customs
22.6
The Contractor shall, in all dealings with labour in his employment, have
due regard to all recognized festivals, days of rest and religious or other
customs.
Epidemics
In the event of any outbreak of illness of an epidemic nature the
Contractor shall cmply with and carry out such regulations, order and
requirements as may be made by the Government of the local medical
or sanitary authorities for the purpose of dealing with and overcoming
the same.
22.7
Disorderly Conduct
The Contractor shall at all times take all responsible precautions to
prevent any unlawful, riotous or disorderly conduct by or amongst his
employees and for the preservation of peace and protection of persons
and property in the neighborhood of the Works against the same.
22.8
Safety of Workmen and Public

(a)
(b)
The Contractor shall comply with applicable Governmental safety

and sanitary laws, regulations and ordinances, as well as the
established safety rules and practices of the Employer.
The Contractor shall provide means for the protection of
personnel and property, maintain warning signs and lights,
barricades, railings and other safeguards as required by the
conditions and the progress of the work.
(c)
The Contractor shall furnish and issue approved safety helmets to

all workmen and authorised personnel at Site.
(d)
All accidents shall be promptly reported to the Engineer with a

copy to the Employer.
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74
22.9
Observance by Sub-Contractors
The Contractor shall be responsible for observance by his SubContractors of the foregoing provisions.
22.10
Returns of Labour
The Contractor shall deliver to the Engineer at monthly intervals a
return in detail, in such form as the Engineer may prescribe, showing the
supervisory staff and the numbers of the several classes of labour
employed and the Constructional Plant used from time to time by the
Contractor on the Site and such other information as the Engineer may
require.
23.0
WORKMANSHIP AND MATERIALS
23.1
Manner of Execution
23.2
(a)
All Plant to be supplied and all work to be done under the Contract
shall be manufactured and executed in the manner set out in the
approved Drawings and Specifications and other Contract
Documents or where not so set our, all work on Site shall be carried
out to the satisfaction of the Engineer in accordance with such
directions as the Engineer may give.
(b)
The work shall be executed in the best and most workmanlike

manner by qualified, careful and efficient personnel.
(c)
If the Contractor desires to propose a method or to use material or

Equipment other than that specifically described in the Outline
Drawings and Specification, he shall in all cases submit the same
for considerations to the Engineer and he shall not make the
substitution unless approved by the Engineer in writing. If the
substitute offered is not approved by the Engineer, the Contractor
is bound to furnish the component under consideration in
compliance with the Outline Drawings and Specification. Approval
of any substitute shall not relieve the Contractor of his contractual
obligations.
Quality of Materials
(a)
(b)
All equipment and material shall be unused and the best in quality
of their respective kinds.
All Plant shall be treated to resist deterioration due to the severe
prevailing local conditions. Such treatment shall include but not be
restricted to extra coatings of protective materials, insulations, etc.
75
(c)
All materials buried under the ground shall be suitable to withstand

the actual soil conditions.
76
24.0
(a)
(b)
ADVERSE PHYSICAL CONDITIONS AND ARTIFICIAL OBSTRUCTIONS

If during the execution of the Works the Contractor shall encounter
physical conditions, other than climatic conditions, or artificial
obstructions, which conditions or obstructions could, in his opinion, not
have been reasonably foreseen by an experienced Contractor then the
Contractor shall forthwith give written notice thereof to the Engineer
and if, in the opinion of the Engineer, such conditions or artificial
obstructions could not have been reasonably foreseen by an
experienced Contractor, then the Engineer shall subject to Clause 2.1
hereof certify and the Employer shall pay the additional cost to which
the Contractor shall have been put by reason of such conditions,
including the proper and reasonable cost of:
Complying with any instruction which the Engineer may issue to the
Contractor in connection therewith; and
Any proper and reasonable measures approved by the Engineer which
the Contractor may take in the absence of specific instructions from the
Engineer, as a result of such conditions or obstructions being
encountered.
25.0
TESTING OF PLANT
25.1
Inspection and Testing during Manufacture

Unless otherwise agreed in the Contract the Engineer shall be entitled
during manufacture to inspect, examine and test on the Contractors
premises during working hours, the materials and workmanship and
check the progress of manufacture of all Plant to be supplied under the
Contract, and if part of the said Plant is being manufactured on other
premises the Contractor shall obtain for the Engineer permission to
inspect, examine and test as if the said Plant were being manufactured
on the Contractors premises. Such inspection, examination or testing, if
made, shall not release the Contractor from any obligation under the
Contract.
25.2
Dates for Inspection and Testing

The Contractor shall notify the Engineer in writing within twenty one
(21) days in advance of the date on and the place at which any Plant will
be ready for testing. Should any postponement become necessary the
Contractor shall provide written notification of same at least 72 hours
prior to the originally scheduled date. The Engineer shall give the
Contractor 48 hours notice in writing of their intention to attend the
test, or ask for a postponement of not more than 72 hours if required
Should the Engineer not attend the tests at the place named and at the
date which the Contractor has stated in his notice the Contractor may
proceed with the test, which shall be deemed to have been made in
their presence and shall forthwith forward to them duly certified copies
of the test readings.
77
25.3
Facilities for Testing at Manufacturers Works

Where the Contract provides for tests on the premises of the Contractor
or any Sub-Contractor the Contractor shall provide such assistance,
labour, materials, electricity, fuel, stores, apparatus, and instruments as
may be necessary and as may be reasonably demanded to carry out
such test efficiently.
25.4
Certificate of Testing
As and when the Plant shall have passed the tests referred to in this
Clause the Engineer shall furnish to the Contractor a certificate in
writing to that effect.
The Contractor shall furnish copies of the relevant test data relating to
the test carried out to be distributed in accordance with the Outline
Specifications.
25.5
Rejection
(a)
If as a result of such inspection, examination or test of the Plant

other than Clause 29.0 (Tests on Completion) the Engineer shall
decide that such Plant is defective or not in accordance with the
Contract he shall notify the Contractor accordingly stating in
writing his objection and reasons therefor. The Contractor shall
with all speed make good the defect or ensure that the Plant
complies with the Contract. Thereafter, if required by the
Engineer, the tests shall be repeated under the same terms and
conditions save that all reasonable expenses to which the
Employer may be put by the repetition of the tests shall be
deducted from the Contract price.
(b)
Upon reasonable request of the Engineer the Contractor shall

furnish to the Engineer for approval, adequate samples of all
devices, hardware, material finishes etc. to be used in the Works
Such samples shall be submitted within a reasonable period of
time to permit tests and examination thereof. All items and
materials installed and finally supplied shall be identical to the
approved samples. Samples of devices, hardware material and
similar items will be returned to the Contractor, if requested, for
incorporation into the Works.
78
(c)
Should the Engineer be of the opinion that the material,

equipment or workmanship inspected or tested does not comply
with the Specification or the best engineering practice, they shall
notify in writing the Contractor of their objections. The Contractor
shall rectify and remove the causes of such objections and the
inspection or test shall be repeated. Rejected or objected
material, equipment or workmanship shall not release the
Contractor from his obligations nor shall any extension of time be
allowed.
79
25.6
25.7
(a)
The Employer may appoint an independent Inspection Authority

for the carrying out of material and equipment inspection and
testing.
The Provisions as specified under Clause 25.0 (Testing of Plant)
shall apply to the Inspection Authority appointed. Such Inspection
Authority will not substitute the work of any inspection normally
carried out by the Contractor/Sub-Contractor or those tests
carried out according to rules, regulation, and practices of the
manufacturing country.
(b)
Travelling expenses as defined in Clause 12.4 (Advanced Detailed

Progress of Plant Schedule) herein shall apply to the independent
No Reduction of Liability
Any decision, instruction, rejection or approval by the Engineer or the
Inspection Authority shall not release the Contractor from his obligations
to execute the Works in accordance with the Contract.
26.0
DELIVERY OF PLANT
26.1
Delivery
Unless the Engineer shall otherwise direct, no Plant shall be delivered to
Site until the Engineer shall have issued, in respect of such Plant, a
certificate under Clause 25.4 (Certificate of Testing). Such Plant shall be
delivered to Site only upon an authorization in writing applied for and
obtained by the Contractor from the Engineer.
The Contractor shall be responsible for the reception on Site of all Plant
delivered for the purposes of the Contract.
26.2
Packing and Marking

(a)
All Plant shall be packed in first quality seaworthy containers or

packings and no secondhand timber shall be used.
(b)
All packing must be suitable for transport from factories to the

port of embarkation and sea/air freight, rough handling at the port
of destination, inland transport and movement to and on the Site.
80
(c)
All Plant together with the applicable instruction books, packing

lists and special site storage instructions, shall carefully be boxed,
crated or otherwise adequately protected for overseas shipment.
Flanges, studs and exposed machine finished surfaces shall be
thoroughly greased and protected before shipment. All tubes,
pipes, nozzles, conduits etc. shall be properly sealed with caps
against ingress of moisture, dirt and other foreign matter. All Plant
susceptible to damage by water or high humidity shall be
encased in watertight and/or airtight rugged containers; suitable
desiccants shall be placed inside each air-tight container to
ensure a low humidity atmosphere therein.
(d)
Special provisions shall be made by the Contractor to take into

account the prevailing local conditions.
(e)
Shipping weights and dimensions of each box or package shall be

determined in such a way as to facilitate handling.
(f)
All boxes, case and/or bundles containing Plant shall be clearly

marked on all sides ad further identified by a broad coloured band
completely running around the box. The colour of band and serial
number of the different components shall be proposed by the
Contractor and shall be subject to the Engineers approval.
(g)
The markings on the box, case and/or bundle shall be carried out
by means of block letters not less than 30mm high to be stenciled
to the box, case and/or bundle with black indelible paint with the
following information:
1.
EMPLOYER
: GOVERNMENT OF SULTANATE OF
OMAN MINISTRY OF________________
2.
3.
4.
5.
6.
7.
8.
9.
10
PROJECT
:
CONTRACT REFERENCE NO. :
CONTRACTOR*
:
SUB-CONTRACTOR*
:
PORT OF DESTINATION
:
CONSIGNMENT SERIAL NO. :
GROSS WEIGHT
:
NET WEIGHT
:
SIZE OF BOX
(LENGTH X WIDTH X HEIGHT):
11. BRIEF INDICATION
OF CONTENTS*
:
81
______________________________________________________________________________
26.3
Shipping Documents
(a) The Contractor shall submit complete and full shipping documents
soonest after shipping, in order to reach the Employer and the
Engineer before the arrival of the ship. Responsibility for delays, loss
or damages of shipping documents shall rest with the Contractor.
(b) The shipping documents shall be distributed as follows:
________________________________________________________________________
FOR THE
FOR THE
Documents
EMPLOYER
ENGINEER
_________________________________________________________________________
Shipping Invoice for the consignment
-
Original
Copy
Packing List
1
3
2
1
1
1
1
1
Bill of Lading
-
Original
Copy
Certificate of Origin
-
Original
Copy
Manufacturers Certificate as
per Boycott Status (Clause 4.2(d)
Compliance with Laws)
-
Original
Copy
Confirmation of Declaration of Insurance

Certificate of Inspection as approved by
by the Engineer or Inspection Authority if
applicable
1
_________________________________________________________________________
82
One set of complete shipping documents including the second original

Bill of Lading shall be airmailed direct to the Employer within seven days
of the departure of the ship.
26.4
Transport to Port of Embarkation, Loading and Unloading

The contractor shall arrange and provide for the transport of the Plant
from the manufacturers works to the port of embarkation. The
Contractor shall assign special personnel to supervise the transport,
loading and unloading of Plant and they shall have the necessary skill
and take all care in the performance of their duties.
26.5
Overseas Transport
When carrying out overseas transport either by sea by air the special
provisions, laws and regulations concerning transportation shall be
taken into consideration.
26.6
(a)
The contractor shall be responsible for the selection of the

overseas transport media as well as for the whole transport
period. The transport shall be carried out at his own risk.
(b)
Sensitive and delicate parts of the Plant shall, wherever possible,

be transported by air.
(c)
Should the manufacture and/or supply of any Plant as well as any

Contractors equipment or tools required for the works be delayed
with respect to the relevant time schedules, the Contractor airfreight at no extra cost to the Employer.
Local Transport
(a)
The Contractor shall arrange and carry out under his own
responsibility and supervision the local transport from the port of
disembarkation to the Site.
(b)
The Contractor shall,

at his own convenience gather all
necessary information and arrange for all necessary provisions in
order to obtain accurate information about unloading at the
specified port, inland transport facilities as well as all prevailing
local conditions, specifically the safe load bearing capacity of
83
highways and bridges. The Contractor shall bear every and all
expenses related herewith.
(c)
The unloading and storage at site shall be carried out by the

Contractor who for this purpose shall make all necessary
provisions and arrange for all necessary equipment.
84
26.7
26.8
Receiving and Damage Reports

(a)
The Contractor shall submit a receiving report to the Engineer to

cover each individual shipment received and checked at the Site.
Each shipment on arrival at Site shall be unloaded, opened and
carefully checked for any damage in transit and the Contractor
shall immediately submit a damage report, countersigned by the
Engineer, to the Insurance Company with copies to the Employer
and the engineer. Where damage has occurred in marine
transport, insurers and/or their agents should be notified
immediately of the damage in writing and it will be the
Contractors own responsibility I he fails to do so.
(b)
In all cases of irrepairable damage, the Contractor shall

immediately notify the relevant manufacturer for renewed
manufacture and replacement of the damaged part(s). he shall
also immediately notify the Employer and the Engineer of the
actions he is going to undertake in order to repair or replace the
damaged part(s) and of the consequences this damage will have
on the completion date of the Works.
Unloading and Storage at Site

(a)
The Contractor shall carefully unload all imported Plant at the Site
from trucks and trailers and delivery vehicles including barges if
any, as the case may be. Items of permanent installation shall be
properly and neatly stored in areas designated by the Engineer
and shall be protected to prevent damage or deterioration of any
type. Storage methods shall be such as the cause minimum
inconvenience to others and shall be arranged to facilitate
inspection and withdrawing from stores. All facilities for Plant
storage shall be subject to the approval of the Engineer.
(b)
All packing boxes, blanking, covering, etc., shall become the

property of the Employer as soon as the Plant which is contained
therein arrives at Site. The Contractor shall take care of such
items and dispose or otherwise at the direction of the Engineer.
The Employer, on application from the Contractor, may permit the
Contractor to use some of the boxes, etc., for Plant storage
purposes after the items are installed or erected by the
Contractor.
85
86
27.0
SUSPENSION OF WORKS
27.1
Order to Suspend Progress

The Contractor shall, on the written order of the Engineer, suspend the
progress of the works or any part thereof for such time or times and in
such manner as the Engineer may consider necessary, and shall during
such suspension properly protect and secure the Works so far as is
necessary in the opinion of the Engineer. The extra cost, including that
occasioned by the subsequent resumption of work incurred by the
Contractor in giving effect to the Engineers instructions under this
Clause, shall be borne and paid by the Employer unless such suspension
is:
(a)
Otherwise provide for in the Contract, or
(b)
Necessary by reason of some default on the part of the

Contractor, or
(c)
Necessary by reason of abnormal climatic conditions on the Site,

or
(d)
Necessary for the proper execution of the Works or for the safety
of the Works or any part thereof in so far as such necessity does
not arise from any act or default by the Engineer or form any of
the excepted risks.
Provided that the Contractor shall not be entitled to recover any such
extra cost unless within 28 days after receipt of the order to suspend
progress of the Works he gives to the Engineer notice in writing of his
intention to make such claim.
27.2
Payment for Plant when Progress Suspended

If work on the Plant or any Portion thereof is suspended as aforesaid by
the Engineer before the Plant or such Portion thereof is delivered to the
Site and the suspension exceeds three months and the Contractor has
taken over such Plant as referred to in Clause 17.1 (Insurance of Works)
and the Contractor has suitable and sufficiently marked the Plant or
such Portion thereof as the Employers property and insurance has been
effected in accordance with Clause 17.0 (Insurances, Regulations and
Patent Rights) (the provisions of which shall thereafter until actual
delivery to the Site apply as if the Plant or such Portion thereof was for
the time being upon the Site) then the Contractor shall be entitled to
have the Contract Price thereof as at the commencement of the
suspension include in an interim certificate on the expiration of the said
87
three months or (if later) at the time when, but for such suspensions,
the Plant or such Portion thereof would have been delivered; provided
this Sub-Clause shall not apply if the suspension is within paragraphs
(a), (b) or (c) of Sub-Clause 1 of this Clause; and further provide that the
Contract Price of any Plant that according to the decision of the Engineer
is defective or not in accordance with the Contract shall not be include
in such Certificate.
88
27.3
Resumption of Work
If the progress of the Works or any Section thereof is suspended
pursuant to Sub-Clause 1 of this Clause and if permission to resume
work is not given by the Engineer within 90 days after the date of
suspension, then unless the suspension is within paragraphs (a), (b), (c)
or (d) of that Sub-Clause, the Contractor may serve notice in writing on
the Engineer requiring permission within 28 days after receipt thereof to
proceed with the Works or the Section in regard to which progress is
suspended and, if such permission is not granted within that time, the
Contractor may by a further notice in writing to the Engineer elect or
treat the suspension where it affects a Section of the Works as an
omission of such Section under Clause 34 (Variations) or where the
suspension affects the whole of the Works as an abandonment of the
Contract by the Employer.
28.0
DEFECTS BEFORE TAKING OVER

If, in respect of any Section or Portion of the Works not yet taken over,
the Engineer shall at any time:
(a)
Decide that any work done or Plant supplied or materials used by

the Contractor or is or are defective or not in accordance with the
Contract, or that such Section or Portion of the Works is defective
or does not fulfill the requirements of the Contract (all such
matters being hereinafter in this Clause called defects), and
(b)
As soon as reasonably practicable give to the Contractor notice in

writing of the said decision specifying particulars of the defects
alleged and of where the same are alleged to exist or to have
occurred, and
(c)
So far as may be necessary place the Plant at the Contractors

disposal,
then the Contractor shall with all speed and, at his own expense, make
good the defects so specified. In case the Contractor shall fail so to do
the Employer may, provided he does so without undue delay, take at the
cost of the Contractor such steps as may in all the circumstances be
reasonable to make good such defects. All Plant provided by the
Employer to replace defective Plant shall comply with the Contract and
shall be obtained at reasonable to make good such defects. All Plant
provide by the Employer to replace defective Plant shall comply with the
contract and shall be obtained at reasonable prices and where
reasonably practicable under competitive conditions. The Contractor
shall be entitled to remove and retain all defective Plant that the
Employer may have replaced at the Contractors cost. Nothing
contained in this Clause shall affect any claim by the employer under
Clause 31.0 (Delays in Completion).
89
29.0
TESTS ON COMPLETION
29.1
Notice of Tests
The Contractor shall give to the Engineer, with a copy to the Employer,
21 days notice in writing of the date after which he will be ready to
make the tests on Completion. Unless otherwise agreed the tests shall
take place within 10 days after the said date on such day or days as the
Engineer shall notify the Contractor in writing.
29.2
Time for Tests

If the Engineer fails to appoint a time after having been asked so to do
or to attend at any time or place duly appointed for making the said
tests then the Contractor shall be entitled to proceed in his absence and
the said tests shall be deemed to have been made in the presence of
the Engineer and the results of the tests shall be accepted as accurate.
29.3
Delayed Tests
If in the opinion of the Engineer the tests are being unduly delayed he
may, by notice in writing, call upon the Contractor to make such tests
within 21 days from the receipt for the said notice, and the Contractor
shall make the said tests on such days within the said 21 days as the
Contractor may fix and for which he shall give advance notice to the
Engineer. If the Contractor fails to make such tests within the time
aforesaid the Engineer may himself proceed to make the tests. All tests
so made by the Engineer shall be at the risk and expense of the
Contractor unless the Contractor shall establish that the tests were not
being unduly delayed in which case tests so made shall be at the risk
and expense of the Employer.
29.4
Facilities for Tests on Completion

The Contractor, except where otherwise specified, shall provide free of
charge such labour, materials, electricity, fuel, water, stores and
apparatus as may be requisite and as may be reasonably demanded to
carry out such tests efficiently.
90
29.5
Repeat Tests
If any Portion of the Works fails to pass the tests, then test of the said
Portion shall, if required by the Engineer or by the Contractor, be
repeated within a reasonable time upon the same terms and conditions,
save that all reasonable expenses to which the Employer may be put by
the repetition of the tests shall be deducted from the Contract Sum.
29.6
Consequences of Failure to Pass Tests on Completion

If the Works or any Section or Portion thereof shall fail to pass the tests
on the repetition thereof under Sub-Clause 5 of this Clause the Engineer
shall be entitled:
(a)
To order a further repetition of the tests under the conditions of Sub

Clause 5, or
(b)
To reject the Works or Section or Portion thereof in accordance with

Clause 28.0 (Defects before Taking Over) if the results of the tests
show that the Works or the Section or Portion fail to meet the
performance guarantees or the agreed tolerances specified in the
Outline Specification or if there are no such guarantees or
tolerances, the results show that the Works or the Section or
Portion are not in accordance with the Contract, or
(c)
To issue a Taking Over Certificate, if the Employer so wishes,

subject to such reduction of the Contract Sum as may be provided
in the Contract or, failing such provision, as may be agreed by the
Employer and the Contractor or, failing agreement, as may be
determined by Arbitration under Clause 49.2 (Notice for
Arbitration).
91
30.0
EXTENSION OF TIME FOR COMPLETION

If by reason of:
(a)
Extra or additional work, or
(b)
Exceptional adverse weather conditions unforeseen at the time

the Contract was signed, or
(c)
Employers instructions beyond those specified in this Contract, or
(d)
Delay by any other contractor engaged by the Employer, or
(e)
Any suspension of the Works under Clause 27.0 (Suspension of

Works), or
(f)
Any cause, except as may otherwise be provided in the Contract,

beyond the reasonable control of the Contractor,
the Contractor shall have been delayed or impeded in the
completion of the works, whether such delay or impediment
occurred before or after the time or extended time fixed for
completion, provided that the Contractor shall without delay have
given to the Employer or the Engineer notice in writing of his
claim for an extension of time, the Engineer shall on receipt of
such notice and supporting detailed particulars of the claim grant
the Contractor form time to time in writing either prospectively or
retrospectively such extension of time fixed by the Contract for
the completion of the Works as may be justified subject to Clause
2.1 hereof. Any delay on the part of a Sub-Contractor which
prevents the Contractor from completing the Works within the
time fixed by the Contract for the completion of the works shall
entitle the Contractor to an extension thereof as if such delay was
due to any cause for which the Contractor himself would have
been entitled to an extension of time under this Clause.
31.0
DELAYS IN COMPLETION
31.1
Penalty for Delay in Completion

If the Contractor shall fail to complete the Works in accordance with the
Contract for the remedying or defects as provide in Clause 32.1 (Taking
Over Certificate) and such tests as are to be made in accordance with
Clause 29.0 (Tests on Completion) within the Time for Completion or any
extension of such time, there shall be deducted from the Contract Price
92
by way of penalty, a sum of money equal to the sum named in the

Appendix to the Form of Tender for each day between the time for
Completion of the Works as aforesaid and the actual date of completion.
93
31.2
Prolonged Delay
If the Works or any Portion of the Works in respect of which the
Employer has become entitled to the maximum amount of the penalty
under Sub-Clause 1 of this Clause remains uncompleted the Engineer
may by notice in writing to the Contractor require him to complete and
by such notice fix a final time for completion which shall be reasonable
having regard to such delay as has already occurred. If for any reason,
other than for which the Employer or some other Contractor employed
by his is responsible, the Contractor fails to complete within such time,
the Engineer may by further written notice to the Contractor elect
either:
(a)
To require the Contractor to complete, or
(b)
or
To terminate the Contract in respect of such Portion of the Works,
(c)
To terminate the Contract in respect of the whole of the Works,
and recover a penalty from the Contractor by reason of the said failure
the total amount stated in the Appendix to the Form of Tender for the
prolonged delay or in the event of a termination concerning the whole of
the Works then the Employer shall recover from the Contractor in
addition to the Penalty for the prolonged delay the whole of the Contract
Price for that part relating to the said Portion.
The Employer may without prejudice to any other method of recovery
deduct the amount of such penalties from any monies in his hands due
or which may become due to the Contractor. The payment or deduction
or such penalties shall not relieve the Contractor from his obligation to
complete the Works or form any other of his obligations and liabilities
under the Contract.
31.3
If the Contractor shall fail to achieve completion of the Works within the
time prescribed by Clause 7.1 (General Obligations) hereof, then the
Contractor shall pay to the employer the sum stated in the Appendix to
the Form of Tender as a payment for extended Engineering Services for
every day or part of a day which shall elapse between the time
prescribed by Clause 7.1 hereof and the date of certified completion of
the whole Works. The Employer may, without prejudice to any other
method of recover, deduct the amount of such compensation form any
monies in his hands, due or which may become due to the Contractor.
94
95
32.0
TAKING OVER
32.1
Taking Over Certificate

As soon as the Works have been completed in accordance with the
Contract [except in minor respect that do not affect their use for the
purpose for which they are intended and save for the obligations of the
Contractor under Clause 33.0 (Defects after Taking Over)] and have
passed the Tests on Completion, the Engineer shall issue a certificate to
the Contractor, with a copy to the Employer, (herein called a Taking
Over Certificate) in which he shall certify the date on which the Works
have been so completed and have passed the said tests, and the
Employer shall be deemed to have taken over the Works on the date so
certified whereupon title to and risk of loss or dame to the Works or any
Section or Portion thereof shall, subject to the provisions of Claus 15.0
(Liability for Accidents and Damage) and Clause 33.0 hereof, pass to the
Employer, but the issue of a Taking Over Certificate shall not operate as
an admission that the works have been completed in every respect. In
the event of the works being divided by the Contract into two or more
Sections the employer shall be entitled to take over any Section or
Sections before the other or others and thereupon the Engineer shall
issue a Taking Over Certificate in respect thereof. Save as provided in
Sub-Clause 3 of this Clause the Employer shall not use the Works or any
Section or Portion thereof until a Taking Over Certificate has been issued
in respect thereof. If nevertheless the Employer does so use the Works
or any Section or Portion thereof the Works or Section or Portions shall
be deemed to have been taken over.
32.2
Taking Over by Portions

If by agreement between the Employer the Engineer and the Contractor
any Portion of the Works (other than a Section or Sections) shall be
taken over before the remainder of the Works and Engineer shall issue a
Taking-Over Certificate in respect of that Portion.
32.3
Use before Taking Over

If, by reason of any default on the part of the Contractor, a Taking Over
certificate has not been issued in respect of every Portion of the Works
within one month after the Time for Completion the Employer shall be at
liberty to use the Works o any Section or Portion thereof in respect of
which a Taking Over Certificate has not been issued if and so long as the
Works or the Portion so used as aforesaid shall be reasonably capable of
being used provided that the Contractor shall be afforded the earliest
possible opportunity to taking such steps as may be necessary to permit
the issue of the Taking Over Certificate. The Provisions of Clause 15.1
96
(Care of the Works) shall not apply to any Portion of the Works while
being so used by the Employer.
32.4
Interference with Tests

(a)
If, by reason of any act or omission of the Employer or the

Engineer, the Contractor shall be prevented for a consecutive
period of 30 days from carrying out the Tests on Completion as
provided for in Clause 29.0 (Tests on Completion) hereof then, the
Employer shall pay to the Contractor such reasonable expenses
occasioned by such delay but he Contractor such reasonable
expenses occasioned by such delay but the Contractor shall take
such steps as are necessary to reduce such expenses to the
minimum amount. Nevertheless, the Contractor shall make the
said tests as and when required by the Engineer and by the giving
of 14 days notice in writing and the relevant Sub-Clauses of
Clause 29.0 shall apply. Any additional expense to which the
Contractor may be put to in making the said tests pursuant to this
Sub-Clause, and such allowance shall be made to the
performance required to be attained in the said tests, as may be
reasonable, having regard to the delay in time or any use of the
Works by the Employer prior to the tests.
(b)
However, if, on the date when the Contractor notified the

Engineer that Tests on Completion are ready to start, the Engineer
considers that the Works are not substantially complete in
accordance with the Contract or ready to make the Tests on
Completion then Clause 31.1 (Penalty for Delay in Completion)
hereof shall apply until such date the Engineer decides that the
Works are substantially complete in accordance with the Contract
and are ready to make the Tests on Completion and the period of
30 days shall commence from the date so decided and the
payment of a penalty (if any) by the Contractor shall cease.
(c)
When the Engineer or the Employer shall notify the Contractor

that Tests on Completion shall commence then the Contractor
shall make ready the Works in accordance with Clause 29.0 (Tests
on Completion) hereof. In such a case, the Time for Completion of
the Works shall be extended for the period certified by the
97
Engineer as being due to the act or omission of the Employer or

the Engineer.
33.0
DEFECT AFTER TAKING OVER
33.1
Defect Liability Period

In these Conditions the expression Defects Liability Period shall mean
the period stated in the Appendix to the Form of Tender or if non period
is stated then 12 months calculated from the date certified in the Taking
Over Certificate issued in accordance with Clause 32.0 (Taking Over) or,
in the event of more than one certificate having been issued by the
Engineer under the said Clause, from the respective dates so certified,
and in relation to the Defect Liability Period the expression the Works
shall be construed accordingly. Provided that, if any outstanding work is
to be finished during the Defects Liability Period, the Period of Defects
Liability shall commence from the date of their completion as certified in
writing by the Engineer to the Employer.
98
33.2
Making Good Defects

The Contractor shall be responsible for making good with all possible
speed at his own expense any defect in or damage to any portion of the
Works which may appear or occur during the Defects Liability Period and
which arises either:
(a)
As a result of the work or actions of Others.
(b)
From any act or omission of the Contractor done or omitted
during the said period.
33.3
Notice of Defects
If any such defect shall appear or damage occur the Employer or the
Engineer shall forthwith inform the Contractor thereof stating in writing
the nature of the defect or damage. The provisions of this Clause shall
apply to all replacements or renewals carried out by the Contractor to
remedy defects and damage as if the said replacements and renewals
had been taken over on the date they were completed to the
satisfaction of the Engineer but not so as to extend the Defects Liability
Period in respect thereof beyond two years from the date of taking over
or such other greater period as may be stated in the Appendix to the
Form of Tender.
33.4
Extension of Defects Liability Period

The Defects Liability Period shall be extended by a period equal to the
period during which the Works (or that Portion thereof in which the
defect or damage to which the Clause applies has appeared or occurred)
cannot be used by reason of that defect or damage and (in the case of
any further defect or damage to such Portion occurring during any such
extension), to extend the Defects Liability Period during which the Works
or that Portion cannot be used by reason of the defect or damage.
33.5
Delay in Remedying Defects

If any such defect or damage be not remedied within a reasonable time,
the Employer may proceed to do the work at the Contractors risk and
expense provided that he does so in a reasonable manner.
33.6
Removal of Defective Work

The Contractor may with the consent of the Engineer remove from the
Site any Portion of the Works which is defective or damaged if the
nature of the defect or damage is such that repairs cannot be
expeditiously carried out on the Site.
99
33.7
Further Tests on Completion

If the replacements or renewals are of such a character as may affect
the efficiency of the Works or any Portion thereof, the Employer may
within one month of such replacement or renewal give to the Contractor
notice in writing requiring that Tests on Completion be made, in which
case such tests shall be carried out as provide in Clause 29.0 (Tests on
Completion).
33.8
Conditions Applicable
These Standard Conditions of Contract shall apply to all inspections,
adjustments, replacements and renewals and to all tests occasioned
thereby, carried out the Contractor pursuant to this Clause.
33.9
Right of Access
Until the final certificate of payment shall have been issued, the
Contractor shall have the right of access to all parts of the Works for the
purpose of inspecting the working thereof and to records of the working
and performance thereof for the purpose of inspecting the same and
taking notes therefrom during normal working hours, at his own risk and
expense, for himself or his duly authorized representatives, whose
names shall have previously been communicated in writing to the
Engineer. The Contractor may at his own risk and expense make any
test which he considers desirable subject to the Engineers approval,
which shall not be unreasonable withheld.
33.10
Contractor to Search
The Contractor shall, if required by the Engineer in writing, search for
the cause of any defect, imperfection or fault under the direction of the
Engineer. Unless such defect, imperfection or fault shall be one for
which the Contractor is liable under the Contract, the cost of the work
carried out shall be borne by the Employer. But if such defect,
imperfection or fault shall be shown to be one for which the Contractor
is liable as aforesaid the cost of the work carried out in searching
aforesaid shall be borne by the Contractor.
33.11
Claims for Loss or Damage after Defects Liability Period

(a)
Subject to Clause 33.12 hereof, it is expressly agreed that the

Employer shall have no claim in respect of damage to or loss of
100
property not forming part of the Works arising after the expiration
of the Defects Liability Period nor for loss of profit unless it is
shown form the circumstances of the case that the Contractor has
been guilty of misconduct and the circumstances giving rise to
the claim occur within four years after the date of taking over. The
Contractor shall have no liability under this Sub-Clause in respect
of any claim unless notice thereof has been given by the
Employer to the Contractor within 90 days after the event giving
rise to the claim.
101
(b)
33.12
The liability of the Contractor shall continue for a period of 1 year

from the date of the Final Acceptance Certificate for the relevant
part of the Works. However, in the case of defects in the design or
defects in Plant equipment or materials adversely affecting either
the structure or the safety of the Works, the liability of the
Contractor shall continue for a period of 10 years from the date of
the Completion of the Defects Liability Period for the whole of the
Works.
Misconduct
Misconduct comprises any and every lack of care or skill, and means
an act or omission on the part of the Contractor resulting from either a
failure to pay due regard to the serious consequences of an cat or
omission which a conscientious and reasonable Contractor would
foresee as likely to ensure, or a deliberate disregard of any
consequences of such act or omission.
33.13
Liability after Taking Over

Save as provided under this Clause and Clause 15.0 (Liability for
Accidents and Damage) the Contractor shall be under no liability in
respect of defects in or damage to the Works or any Section thereof has
been taken over.
34
VARIATIONS
34.1
Engineers Power to Vary

The Engineer shall make any variation that may have been approved by
the Employer to the form, quality or quantity of the Works or any part
thereof and he shall have power subject to Clause 2.1 (Engineers
Duties) to order the Contractor to do and the Contractor shall do any of
the following:
(a)
Increase or decrease the quantity of any work included in the
Contract.
(b)
Omit any such work.
(c)
Change the character or quality or kind of any such work.
(d)
Change the levels, lines, position and dimensions of any part of
the Works; and
(e)
Execute additional work of any kind necessary for the completion
of the Works.
102
and no such variation shall in any way vitiate or invalidate the Contract,
but the value, if any, of all such variations shall be taken into account in
ascertaining the amount of the Contract Price.
103
34.2
Orders for Variations to be in Writing

No such variations shall be made the by the Contractor without an order
in writing of the Engineer. Provided also that if for any reason the
Engineer shall consider it desirable to give any such order verbally, the
Contractor shall comply with such order and any confirmation in writing
of such verbal order given by the Engineer, whether before or after the
carrying out of the order, shall be deemed to be an order in writing
within the meaning of this Clause. Provided further that if the Contractor
shall within seven days confirm in writing to the Engineer and such
confirmation shall not be contradicted in writing within a further
fourteen days by the Engineer, it shall be deemed to be an order in
writing by the Engineer.
34.3
Valuation of Variations
All extra or additional work done or work omitted by order of the
Engineer shall be valued at those rates and prices set out in the
Contract id, in the opinion of the Engineer, the same shall be applicable.
If the Contract does not contain any rates or prices applicable to the
extra or additional work then suitable rates or prices shall be agreed
upon between the Engineer and the Contractor.
34.4
Power of Engineer to Fix Rates

Provided that if the nature or amount of any omission or addition
relative to the nature or amount of the whole of the Works or to any part
thereof shall be such that, in the opinion of the Engineer, the rate or
price contained in the Contract for any item of the Works is, by reason of
such omission or addition, rendered unreasonable or inapplicable, then a
suitable rate or price shall be agreed upon between the Engineer and
the Contractor. In the event of disagreement the Engineer shall fix such
other rate or price as shall, in his opinion, be reasonable and proper
having regard to the circumstances.
Provided also that no increase or decrease under Sub-Clause 1 of this
Clause or variation rate or price under Sub-Clause 2 of this Clause shall
be made unless, as soon after the date of the order as is practicable but
not later than seven days and in the case of extra or additional work,
before the commencement of the work or as soon thereafter as is
practicable but not later than seven days, notice shall have been given
in writing:
(a)
By the Contractor to the Engineer of his intention to claim extra

payment or a varied rate or price.
(b)
By the Engineer to the Contractor of his intention to vary a rate or

price.
104
34.5
Variations Exceeding 10 per cent

If, on certified completion of the whole of the Works it shall be found
that a reduction or increase greater than ten per cent of the Contract
Sum excluding all provisional sums and allowance for dayworks, and
adjustments of price made under Clause 52.1 (Changes in Cost and
Legislation) hereof if any, results from the aggregate effect of all
Variation Orders, but not from any other cause, the amount, beyond ten
per cent of the said adjusted Contract Sum shall be subject to
amendment by such sum as may be agreed between the Contractor
and the Engineer or, failing agreement, fixed by the Engineer having
regard to all material and relevant factors, including the Contractors
Site and general overhead costs of the Contract.
34.6
Notice and Confirmation of Variations

If the Engineer shall make any variation in any part of the Works such
reasonable notice in writing shall be given to the Contractor as will
enable him to make his arrangements accordingly. In cases where Plant
is already manufactured or in the course of manufacture, or any work
done or Drawings or patterns made which require to be altered, a
reasonable sum in respect thereof shall be allowed by the Engineer. If, in
the opinion of the Contractor, any variation is likely to prevent or
prejudice the Contractor form fulfilling any of his obligations under the
Contract, he shall notify the Engineer thereof in writing the Engineer
shall decide forthwith whether or not the same shall be carried out. If
the Engineer confirms his instructions in writing the said obligations
shall be modified to such an extent as may be justified. Until the
Engineer so confirms his instructions they shall be deemed not to have
been given.
34.7
Progress with Variation

On receipt of the Engineers confirmation of instructions in respect of
any variation the Contractor shall subject to Clause 2.1 (Engineers
Duties) immediately proceed to carry out such instructions. The work
shall not, without the consent of the Engineer, be delayed by the
Contractor pending finalization of the price of the variation.
34.8
Claims for Additional Payment for Variations
105
The Contractor shall send to the Engineer, once in every month, an

account giving particulars (as full and detailed as possible) of all claims
for any additional payment to which the Contractor may consider
himself entitled and of all extra or additional work ordered by the
Engineer which he has executed during the preceding month. No claim
for payment (interim or final) will be considered unless included in such
account. Provided always that the Engineer shall be entitled to authorize
payment to be made notwithstanding the Contractors failure to comply
with these Conditions, if the Contractor has at the earliest practicable
opportunity notified the Engineer that he intends to make a claim.
106
34.9
Cancellation of the Works

No claim will be allowed for loss of prospective profits on any cancelled
Section or Portion of the Works provided that the cancellations do not
exceed ten (10) percent of the total Contract Sum.
The written agreement between the Employer and the Contractor on
modifications, variations, or changes shall constitute an integral part of
the Contract.
35.0
VESTING OF PLANT AND CONTRACTORS EQUIPMENT
35.1
Ownership of Plant
Plant supplied or to be supplied pursuant to the Contract shall become
the property of the Employer at whichever is the earlier of the following
times:
35.2
(a)
When Plant is appropriated to the Contract;
(b)
When by virtue of Clause 26.0 (Delivery of Plant) or Clause 27.0

(Suspension of Works) the Contractors becomes entitled to
require that the cost of the Plant be included in an interim
certificate; or
(c)
When Plant is delivered to the Site pursuant to the Contract.
Marking of Plant
Where the property in Plant passes to the Employer prior to the delivery
to the Site of such Plant the Contractor shall so far as is practicable and
to the reasonable satisfaction of the Engineer set the Plant aside and
mark the Plant as the property of the Employer. In the event of the
Contractor failing so to set aside and mark the Plant as aforesaid the
Engineer shall be entitled to withhold any interim certificate for that
Portion to which the Contractor may otherwise be entitled.
Such Plant shall be in the care and possession of the Contractor solely
for the purposes of the Contract and shall not be within the ownership of
disposition of the Contractor and any interim certificate issued by the
Engineer shall be without prejudice to the exercise of any power of the
Engineer contained in the Contract to reject Plant which is not
accordance with the Contract and upon any such rejection the property
in the rejected Plant shall immediately revert to the Contractor.
107
36.0
CONTRACTORS EQUIPMENT
36.1
Removal of Contractors Equipment

All Contractors Equipment provided by the Contractor shall, when
brought on to the Site, be deemed to be exclusively intended for the
execution of the Works and the Contractor shall not remove the same or
any part thereof, except for the purpose of moving it form one part of
the Site to another, without the consent in writing of the Engineer, which
shall not be unreasonably withheld.
36.2
Loss or Damage to Contractors Equipment

The Contractor shall be liable for loss of or damage to any of the
Contractors Equipment which may happen otherwise than through the
default of the Employer.
37.0
CERTIFICATES AND PAYMENT
37.1
Certificate of Payment
The Contractor may at the times and in the manner following apply for
interim and final certificates as referred to in Clause 40.0 (Payment
Conditions) for Plant shipped and en route to the Site and for work
executed on the Site.
37.2
Application for Interim Certificates

Applications for interim certificates may be made to the Engineer in
respect of fabrication of the Plant, each shipment of Plant, its arrival on
Site and erection or installation and from time to time as work on the
Site progresses.
* (a)
Fabrication
Each such application in respect of fabrication shall state the stage
reached as set out in the detailed progress schedule, and be
accompanied by the test certificates by an Inspection Authority or the
Engineers test certificates. No payment shall be made unless a
certificate is submitted.
* (b)
Shipment
Each such application in respect of shipment shall identify the Plant
shipped, and be accompanied by such evidence of shipment and of
payment of freight and insurance and such other documents as stated
in Clause 26.3 (Shipping Documents) the Engineer may reasonably
require.
108
______________________________________________________________________________
(c)
Arrival on Site
Each such application in respect of arrival of the Plant on Site shall be
accompanied by a receiving report and if applicable a damage report in
accordance with Clause 26.7 (Receiving and Damage Reports).
(d)
Installation and Erection
Each such application in respect of installation or erection of the Plant
forming part of the Permanent Works shall state the stage reached as
set out in the detailed progress schedule.
(e)
Taking Over
Each such application in respect of Plant which has satisfactorily passed
the tests on completion shall be accompanied by the Taking Over
Certificate.
(f)
Civil Works
Each such application in respect of the Civil Works associated with the
Works shall be accompanied by a statement by the Contractor detailing
the stage reached as set out in the detailed progress schedule.
In each such application the Contractor shall state the amount claimed
and shall set forth in detail, in the order of the schedule of prices,
particulars of the work executed as set out in Clause 12.4 (Advanced
Detailed Progress of Plant Schedule) pursuant to the Contract to a date
named in the application and since the period covered by the last
preceding certificate, if any, which includes work on Site.
37.3
Issue of Interim Certificates

The Engineer shall issue to the Contractor an interim certificate within
28 days after receiving an application therefor in accordance with SubClause 2 of this Clause which the Contractor was entitled to make.
37.4
Retention Money
(a)
The Engineer shall make a deduction of a sum equal to 10
percent of the amount due to the Contractor under Sub-Clause 5 (Value
of Interim Certificates) related to interim certificates only until a reserve
shall have accumulated in the hands of the Employer up to the limit of
5% of the Contract Sum.
109
b)
Upon issue of the Taking Over Certificate with respect to the
whole of the Works 50 per cent of the retention money (or where a
Taking Over Certificate is issued with respect to such Section of the
Works only such proportion of 50 per cent of the retention money as the
Engineer shall determine have regard to the relative value of such
Section of the Works) shall become due and payable to the Contractor.
(c)
Upon expiration of the Defects Liability Period for the whole of the
Works the Outstanding retention money shall become due and payable.
(d)
Provided that if, at such time, there shall remain to be executed
by the Contractor any outstanding defects referred to under Clause 32.1
(Taking Over Certificate) or any works ordered during such period
pursuant to Clause 33.2 (Making Good Defects) the Employer shall be
entitled to withhold payment until the completion of such works of as
much money as shall in the opinion of the Engineer represent the costs
of the Works outstanding.
37.5
Value of Interim Certificates

Every interim certificate shall certify the total value of Plant fabricated,
Plant shipped, Plant delivered to the Site for us in the works, Plant
installed or erected or as the case may be of the Civil works duly
executed on the Site pursuant to the Contract up to the date named in
the application for the certificate.
The amount so certified shall be subject to deductions of:
(a)
Retention money retained,
(b)
Partial recovery of any advance payment,
(c)
Any sums which are due and payable to the Employer by the
Contractor under the terms of the Contract,
(d)
Any previous payments made by the Employer to the Contractor
under the terms of the Contract.
Provided that no sum shall be included in any interim certificate in
respect of any Works that, according to the decision of the Engineer,
does not comply with the Contract, or Plant has been brought and is at
the date of the certificate prematurely upon the Site.
37.6
Correction and Withholding of Interim Certificates

The Engineer may by any interim certificate make any correction or
modification in any previous certificate which shall have been issued by
110
him and the Engineer shall have the power to withhold any interim
certificate:
(a)
If the Works or any part thereof are not being carried out, to his
satisfaction in accordance with the Contract, or
(b)
By way of defence or counterclaim by the Employer, or
(c)
Because of a requirement in writing for necessary additional
supporting documents or details, or
(d)
Where the Contract expressly gives the Employer the right to
deduct monies form sums due under the Contract.
37.7
Advance Payments
(a)
Unless stated otherwise the Contract provides for a payment in
advance, for Plant and Civil Works, [Clause 40.2 (a) (Provision of Plant),
40.3 (Installation of Plant) and 40.4 (Construction of Building, Civil
Engineering Works) refers] and any amounts becoming due to the
Contractor in respect thereof shall be included in interim certificates.
(b)
On signing the Form of Agreement and in exchange for the
Performance Bond and a separated bond for the amount of the Advance
Payment the Contractor shall receive from the Engineer an Advance
Payment Certificate for an amount equal to 10 per cent for the Contract
Sum less any sum for contingencies included in the Contract Sum.
Any Advance Payment made by the Employer shall be recovered by the
deduction, from each interim certificate, of 10 per cent of the gross
value of the certificate so that at the completion of the Works the
Contractor shall have repaid in full the total amount of the Advance
Payment.
In the event of the Contract being determined under Clause 44.1
(Contractors Default), Clause 46.0 (Outbreak of War), Clause 47.0
(Special Risks), the Employer may deduct the balance of the Advance
Payment outstanding from any monies due or which may become due to
the Contractor or the Contractor shall upon demand pay to the Employer
the amount of such balance and it shall be deemed a debt due form the
Contractor to the Employer and shall be recoverable accordingly from
the Contractor or from the Bank issuing the bond.
37.8
Effect of Interim Certificates
111
No interim certificate shall be relied upon as conclusive evidence of any

matter stated therein nor affect or prejudice any right of the Employer
or the Contractor one against the other.
37.9
Applicable for Final Acceptance Certificate

Application for the Final Acceptance Certificate may be made to the
Engineer after the Contractor has ceased to be under any obligation
under Clause 33.0 (Defects after Taking Over) provided that, if a Taking
Over Certificate has been issued in respect of any Section or Portion of
the Works, the Contractor may apply for a separate Final Acceptance
Certificate at any time after the said obligation has ceased in relation to
such Section or Portion. Where the Contractor has carried out
replacements or renewals to the Works in compliance with the said
Clause the Contractors obligations shall continue as provided in SubClause 33.3 (Notice of Defects) but the right of the Contractor to apply
for a Final Acceptance Certificate other than for the replacements or
renewals shall not be affected by the fact, and after the Contractor has
ceased to be under any obligation under the said Clause in respect of
the replacements or renewals he may apply for a Final Acceptance
Certificate in respect thereof.
37.10
Issue of Final Acceptance Certificate

The Contract shall not be completed until the Engineer has approved the
issue of a Final Acceptance Certificate and this Final Acceptance
Certificate, stating that the Works have been completed and all defects
remedied to the Engineers satisfaction, has been signed by the
Engineer and delivered to the Employer. The Final Acceptance Certificate
shall be given by the Engineer within twenty eight days after the
expiration of the Defects Liability Period, or if different defects liability
periods shall become applicable to different Sections or Portions of the
Works, the expiration of the latest such period, or as soon thereafter as
any works ordered during such period, pursuant to Clause 32.1 (Taking
Over Certificate) or Clause 33.2 (Making Good Defects) hereof, shall
have been completed to the satisfaction of the Engineer and full effect
shall be given to this Clause notwithstanding any previous entry on the
Works or the taking possession, working or using thereof or any part
thereof by the Employer. The second half of retention money will be
released on the issue of the Final Acceptance Certificate.
37.11
Submission of Final Account

As soon as possible, but not later than six months after the issue of the
Taking Over Certificate the Contractor shall submit to the Engineer a
statement of the Final Account with supporting documents showing in
detail the value of the work done in accordance with the Contract
112
together with all further sums which the Contractor considers to be due
to him under the Contract. After receipt of this final account and of all
information reasonably required for its verification the Engineer shall
after the expiry of the Defects Liability Period issue a Final Account
Certificate stating:
37.12
(a)
The amount which in his opinion is finally due under the Contract
and (after giving credit to the Employer for all amounts previously
paid by the Employer and for all Sums to which the Employer is
entitled under the Contract),
(b)
The balance, if any, due from the Employer to the Contractor or

from the Contractor to the Employer as the case may be. Such
balance shall, subject to Clause 47.0 (Special Risks) hereof, be
paid to or by the Contractor as the case may require within sixty
days of the Final Account Certificate.
Value of Final Account Certificate

The Final Account Certificate shall certify the total of all amounts
comprised in interim certificates previously issued in respect of the
Works or the Section or Portion thereof to which the Final Account
Certificate relates subject to such additions thereto or deductions
therefrom as may be authorised under Sub-Clause 14 of this Clause.
37.13
Final Account Certificate Conclusive

A Final Account Certificate shall, save in the case of fraud or dishonesty
relating to or affecting any matter dealt with in the certificate, be
conclusive evidence as to the sufficiency of the Works and of the value
thereof unless any proceedings arising out of the contract whether
Clause 49.0 (Disputes and Arbitration) shall have been commenced by
either party before the Final Account Certificate has been issued or
within three months thereafter.
37.14
Adjustment to Certificates
If any sum shall become payable to the Contractor under the Contract
otherwise than for work executed or Plant delivered the amount thereof
shell be included in the next certificate (interim or final) issued by the
Engineer, and if any sum shall become payable under the Contract by
113
the Contractor to the Employer, prior to the issue of the Final Account
Certificate, whether by deduction from the Contract Price or otherwise,
the amount thereof shall be deducted in the next certificate.
37.15
Corrections to Certificates
The Engineer may in any certificate give effect to any correction or
modification that should be made in respect of any previous certificate.
38.0
PROVISIONAL SUMS
38.1
Provisional sums
'Provisional Sum means a sum included in the Contract and so
designated therein for the execution of work or the supply of goods,
materials or services, or for contingencies, which sum may be used, in
whole or in part, or not at all, at the direction and discretion of the
Engineer who shall consult with the Employer prior to the issue of an
instruction in respect of the expenditure of such sum. The total sum paid
to the Contractor shall include only such amounts in respect of the work,
supply or services to which such Provisional Sums relate as the Engineer
shall approve or determine in accordance with this Clause.
38.2
Ordering work against Provisional Sums

In respect of every Provisional Sum the Engineer shall have power to
order:
(a)
Work to be executed, including goods, materials or services to be

supplied by the Contractor. The value of such work executed or
such goods, materials or services supplied determined in
accordance with Clause 34.0 (Variations) shall be paid to the
Contractor in accordance with Clause 37.0 (Certificates and
Payment).
(b)
Work to be executed or goods, materials or services to be

supplied by a Nominated Sub-Contractor. The sum to be paid to
the Contractor therefor shall be determined and paid in
accordance with Clause 39.4 (Payments against Provisional
Sums).
114
(c)
38.3
Goods and materials to be purchased by the Contractor. The sum

to be paid to the Contractor therefor shall be determined and paid
in accordance with the said Clause 39.4.
Invoices and Receipts

In the absence of competitive quotations for Works contained within the
Provisional Sums or the inapplicability of the prices contained in the Bills
of Quantities or the Schedule of Rates the Contractor shall produce all
quotations, invoices, vouchers and accounts or receipts in connection
with expenditure in respect of Provisional Sums.
39.0
NOMINATED SUB-CONTRACTORS
39.1
Nominated Sub-Contractors
All specialists, merchants, tradesmen and others executing any work or
supplying any goods, materials or services for which Provisional Sums
are included in the Contract, who may have been or he nominated or
selected or approved by the Employer and all persons to whom by virtue
of the provisions of the Contract the Contractor is required to sub-let any
work shall, in the execution of such work or the supply of such goods,
materials or services, be deemed to be Sub-Contractors employed by
the Contractor and are referred to in this Contract as Nominated subContractors.
39.2
Objections to Nominations
The Contractor shall not be required by the Employer or the Engineer or
be deemed to be under any obligation to employ any Nominated SubContractor whose performance warranties are not acceptable to the
Contractor or against whom the Contractor may raise reasonable
objection, or who shall decline to enter into a sub-contract with the
Contractor containing provisions that:
(a)
In respect of the work, goods, materials or services the subject of

the Sub-Contract the Nominated Sub-Contractor will undertake
towards the Contractor the like obligations and liabilities as are
imposed on the Contractor towards the Employer by the terms of
the Contract and will save harmless and indemnify the Contractor
from and against the same and from all claims, proceedings,
damages, costs, charges and expenses whatsoever arising out of
or in connection therewith, or arising out of or in connection with
any failure to perform such obligations or to fulfill such liabilities.
Provided that nothing in this paragraph shall entitle the
Contractor to object to a nominated Sub-Contractor who requires
that the liabilities and indemnities to the Contractor shall be
limited pro rata to the Sub-Contract price;
115
(b)
39.3
That the Nominated Sub-Contractor will save harmless and

indemnify the Contractor from and against any negligence by the
Nominated Sub-Contractor, his servants or agents, and from and
against any misuse by him or them or any Contractors
Equipment provided by the Contractor for the purposes of the
Contract and from all claims as aforesaid.
Responsibility for Design in Nominated Sub-Contracts

If in connection with any Provisional Sum the services to be provided
include any matter of design or specification of any part of the Works or
Plant to be incorporated therein, such requirement shall be expressly
stated in the Contract and shall be included in any Nominated SubContract. The Nominated Sub-Contract shall specify that the Nominated
Sub-Contractor providing such services will save harmless and
indemnify the Contractor from and against the same and from all claims,
in connection with any failure to perform such obligations or to fulfil
such liabilities, but not so as to impose upon the Sub-Contractor any
greater liability to the Contractor than the Contractor has to the
Employer under these Conditions.
39.4
Payments against Provisional Sums

For all work executed or goods, materials or services supplied by any
Nominated Sub-Contractor or purchased by the Contractor under Clause
38.2(c) (Ordering Work against Provisional Sums) there shall be included
in the sums paid to the Contractor:
39.5
(a)
The actual price paid or due to be paid by the Contractor, on the

direction of the Engineer, and in accordance with the SubContract,
(b)
In respect of all other charges. a sum being a percentage of the

actual price paid or due to be paid calculated at the rate or rates
inserted by the Contractor in the Appendix to the Tender.
Delayed payments to Nominated Sub-Contractors

Before issuing any certificate, which includes any payment in respect of
work done or goods, materials or services supplied by any Nominated
Sub-Contractor, the Engineer shall be entitled to demand from the
Contractor reasonable proof that all payments, less retentions, included
in previous certificates in respect of the work or goods, materials or
services of such Nominated Sub-Contractor have been paid or
discharged by the Contractor, and unless the Contractor shall:
116
(a)
Satisfy the Engineer in writing that he has reasonable cause for

withholding or refusing to make such payments; and
(b)
Produce to the Engineer reasonable proof that he has so informed

such Nominated SubContractor in writing;'
The Employer shall be entitled to pay such Nominated Sub-Contractor

direct, upon the certificate of the Engineer, all payments, less
retentions, provided for in the Sub-Contract, which the Contractor has
failed to make to such Nominated Sub-Contractor and to deduct by way
of set-off the amount so paid by the Employer from any sums due or
which may become due from the Employer to the Contractor.
Provided always that. where the Engineer has certified and the Employer
has paid direct as aforesaid, the Engineer shall in issuing any further
certificates in favour of the Contractor deduct from the amount thereof
the amount so paid direct as aforesaid but shall not withhold or delay
the issue of the certificate itself when due to be issued under the terms
of the Contract.
39.6
Continuing obligations of Nominated Sub-Contractor

In the event of a Nominated Sub-Contractor having undertaken towards
the Contractor in respect of the work executed, or the goods, materials
or services supplied by such Nominated Sub-Contractor, any continuing
obligation extending for a period exceeding that of the Defects Liability
Period, the Contractor shall advise the Engineer thereof and, after the
expiration of the Defects Liability Period, assign to the Employer, at the
Employer's request, the benefit of such obligation for the unexpired
duration thereof.
40.0
PAYMENT CONDITIONS
40.1
Terms of payment
Unless otherwise agreed the Employer shall pay to the Contractor in the
following manner the Contract Sum adjusted to give effect to such
additions thereto and such deductions therefrom as are provided in
these Standard Conditions of Contract.
40.2
Provision of Plant
(a)
10% of the total cost of Plant as an Advance Payment against an

invoice from the Contractor together with a Certificate from the
117
Engineer and an Advance Payment: Bond in accordance with

clause 37.7 (Advance Payments) hereof.
(b)
___%* of the cost of fabrication of such Items of Plant as identified

in the Tender Submission against Test Certificates, less retention
in accordance with Clause 37.4 (Retention money) hereof**.
(c)
___%* of the value of the Plant*** as included in each

consignment against shipping documents less such sums as may
have been certified under Sub-Clause (b) hereinbefore less
retention in accordance with clause 37.4 (Retention money)
hereof.
_______________________________________________________________________________
*NOTE: The Employer shall complete this Sub-Clause prior to the issue of
Contract
** delete where not applicable.
*** inclusive of related value for Shipping and Insurance only.
40.3
(d)
80% of the value of the P1ant*** (excluding installation) upon

arrival on site less such sums as may have been certified under
Sub-Clauses (b) and (c) hereinbefore less retention in accordance
with Clause 37.4 (Retention money) hereof.
(e)
95% of the value of the Plant*** (excluding installation) upon

issue of the Taking Over Certificate less such sums as may have
been certified under Sub-clauses (b), (c) and (d) hereinbefore less
retention in accordance with Clause 37.4 (Retention money)
hereof.
(f)
100% of the value of the Plant*** (excluding installation) upon

issue of the Final Acceptance Certificate or Final Account
Certificate whichever is later less such sums as may have been
certified under Sub-Clauses (b), (c), (d) and (e) hereof less
retention in accordance with Clause 37.4 (Retention money)
hereof.
Installation of Plant
(a)
10% of the cost of Installation against an invoice from the

Contractor, a certificate from the Engineer and an Advance
Payment Bond in accordance with Clause 37.7 (Advance
Payments) hereof.
(b)
85% in monthly progress payments according to the progress of

erection works at Site as certified by the Engineer and approved
by the Employer.
118
40.4
(c)
10% upon issue of the Taking Over Certificate.
(d)
5% upon issue of the Final Acceptance Certificate or Final Account

Certificate whichever is later.
Construction of the Building, Civil Engineering Works

(a)
10% of the total price of Building and Civil Engineering works as

an Advance Payment within sixty (60) days upon presentation of
Contractor's Advance Payment Bond in accordance with Clause
37.7 (Advance Payments) hereof, and upon submission of the
Performance Bond together with the Contractor's payment
invoice.
(b)
35% in monthly progress payments according to the progress of

the Works at Site as certified by the Engineer and approved by
the Employer.
(c)
10% within sixty (60) days from the date of issue of the Taking
Over Certificate of the whole of the Works.
(d)
within sixty (60) days from the date of the issue of the Final
Acceptance Certificate or Final Account Certificate whichever is
later in respect of the entire Works, a payment equivalent to 15%
of the value of the entire executed Building and Civil Engineering
works as certified by the Engineer and approved by the Employer.
_________________________________________________________________________
*** inclusive of related value for Shipping and Insurance only.
41.0
INTEREST ON DELAYED PAYMENTS

In the event of failure by the Employer to make payment in accordance
with clause 37.0 (Certificates and Payments) the Contractor shall
become entitled to the payment by the Employer of interest at 7% per
annum from the date of which the same should have been made. The
Contractor shall not be entitled to claim interest on those parts of the
certificate to which the Employer objects unless it can be shown that the
Employer's objections were unreasonable.
42.0
CURRENT FLUCTUATION
Should the Contract provide for payment of either Part or the whole of
the Contract Sum in Rials Omani but that this sum is based on a foreign
currency rate then if after the opening of Tenders and prior to signature
of the Form of Agreement there should occur a change in the rates of
exchange as stated in Clauses 43.2 (Rates of Exchange of Currency) and
43.3 (Currency Conversion} hereby then the Employer reserves the right
119
to apply the rate application on the date of ratification of the Form of

Agreement should the Employer so wish.
Should the Employer take such action as allowed for under the SubClause above then the said Clause 43.0 shall be deemed to be amended
accordingly.
43.0
FOREIGN CURRENCY
43.1
Payment in Rial Omani

Unless specified otherwise all payments shall be in Rials Omani.
There shall be no adjustment to remuneration due to fluctuations and
variations in the rates of exchange between the Rial Omani and any
foreign currencies relating to the Local Portion of the Contract
notwithstanding Sub-Clause 3 (Currency Conversion) and Sub-Clause 4
(Currency Conversion relating to Provisional Sums) of this Clause as
stated hereafter.
43.2
Rates of Exchange of Currency

Where however the Contract provides for payment in whole or in part to
be made to the Contractor in foreign currency or currencies, such
payment shall be fixed and not be subject to variations in the rate or
rates of exchange between such specified foreign currency or currencies
and the Rial Omani of the Sultanate of Oman.
43.3
Currency Conversion
Where the Employer shall have required the Tender to be expressed in a
single currency but with payment to be made in more than one currency
and the Contractor has stated the proportions or amounts of other
currency or currencies in which he requires payment to be made, the
rate or rates of exchange applicable for calculating the payment of such
proportions or amounts shall be those prevailing, as determined by the
Central Bank of the Sultanate of Oman on the latest date for the
submission of tenders for the Works, as shall have been notified to the
Contractor by the Employer prior to the submission of tenders or as
provided for in the Tender Documents.
120
43.4
Currency Conversion relating to Provisional Sums

Where the Contract provides for payment in more than one currency
and the proportions or amounts to be paid in foreign currencies in
respect of Provisional Sum items shall be determined in accordance with
the principles set forth in Sub-Clauses 2 and 3 of this Clause as and
when these sums are utilised in whole or in part in accordance with the
provisions of Clauses 38.0 (Provisional Sums) and 39.0 (Nominated SubContractors) hereof.
44.0
REMEDIES AND POWERS
44.1
Contractor's Default
If the Contractor shall assign the Contract, without the consent in writing
of the Employer first obtained, or if the Engineer shall certify in writing
to the Employer that in his opinion the Contractor:
(a)
Has abandoned the Contract; or
(b)
Without reasonable excuse has failed to commence the Works or

has suspended the progress of the Works for twenty eight days
after receiving from the Engineer written notice to proceed; or
(c)
Despite previous warnings by the Engineer, in writing, is not

executing the Works in accordance with the Contract, or is
neglecting to carry out his obligations under the Contract so as
seriously to effect the carrying out of the Works;
then the Employer may, after giving fourteen days notice in writing to
the Contractor, enter upon the Site and expel the Contractor therefrom
without thereby voiding the Contract, or releasing the Contractor from
any of his obligations or liabilities under the Contract, or affecting the
rights and powers conferred by the Contract on the Employer or the
Engineer and may himself Complete the Works or may employ any other
Contractor to complete the Works without prejudice to any other remedy
of the Employer. The Employer
or such other Contractor shall have free use for such completion of so
much of the Contractor's Equipment as may be on the Site in connection
with the Works without being responsible to the
Contractor for fair wear and tear thereof and to the exclusion of any
right of the Contractor over the same.
121
44.2
Valuation at Date of Forfeiture

The Engineer shall, as soon as may be practicable after any such entry
and expulsion by the Employer, fix and determine ex-parte, by or after
reference to the parties, or after such investigation or enquiries as he
may think fit to make or institute, and shall certify what amount, if any,
had at the time of such entry and expulsion been reasonably earned by
or would reasonably accrue to the Contractor in respect; of work then
actually done by him under the Contract and the value of any unused or
partially used materials on the Site.
44.3
Payments after Forfeiture

If the Employer shall enter and expel the Contractor under this Clause,
he shall not be liable to pay to the Contractor any money on account of
the Contract until the costs of execution, damages for delay in
completion, and all other expenses incurred by the Employer have been
ascertained and the amount thereof certified by the Engineer. The
Contractor shall then be entitled to receive only such sum or sums, if
any, as the Engineer may certify would have been payable to him upon
due completion by him after deducting the said amount. If such amount
shall exceed the sum which would have been payable to the Contractor
on due completion by him, then the Contractor shall, upon demand, pay
to the Employer at the amount of such excess and it shall be deemed a
debt due by the Contractor to the Employer and shall be recoverable
accordingly.
44.4
Effect on Liability for Delay

If the Employer pursuant to this Clause takes the Works or part thereof
out of the Contractor's hands the Contractor's Liability under Clause
31.0 (Delays in Completion) shall immediately cease, without prejudice
to any such liability that may at that time without prejudice to any such
liability that may at that time already be recoverable from the
Contractor by the Employer.
45.0
BANKRUPTCY
If the Contractor shall become bankrupt or insolvent, or have a receiving
order made against him, or compound with his creditors, or, being a
corporation commence to be wound up, not being a members voluntary
winding up for the purpose of amalgamation or reconstruction, or carry
on its business under a receiver for the benefit of its creditors or any of
them, the Employer shall be at liberty:
(a)
To terminate the Contract forthwith by notice in writing to the

Contractor or to the receiver or liquidator or to any person in
whom the Contract may become vested, and to act in the manner
provided in Clause 44.1 (Contractors Default) as though the last122
mentioned notice had been the notice referred to in such Clause

and the Works had been taken out of the Contractor's hands; or
(c) To give such receiver, Liquidator or other person the option of
carrying out the Contract subject to his providing a guarantee for
the due and faithful performance of the Contract up to an amount
to be agreed.
46.0
OUTBREAK OF WAR
46.1
Outbreak of War
If during the currency of the Contract there shall be an outbreak of war
(whether war is declared or not) in any part of the world which, whether
financially or otherwise, materially affects the execution of the Works
the Contractor shall, unless and until the Contract is terminated under
the provisions in this Clause contained, use his best endeavours to
complete the execution of the Works, provided always that either the
Employer or the Contractor shall be entitled, at any time after such
outbreak of war, to terminate this Contract by giving notice in writing
one to the other, and upon such notice being given this Contract shall
(save as to the rights of the parties under this Clause and to the
Operation of Clauses 47.0 [Special Risks] and 48.0 [Frustration)
terminate, but without prejudice to the rights of either party in respect
of any antecedent breach thereof.
46.2
Removal of Contractor's Equipment on Termination in Case of War

If the Contract shall be terminated under the provisions of the last
preceding Sub-Clause the Contractor shall with all reasonable dispatch
remove from the Site all Contractor's Equipment and shall give similar
facilities to enable his Sub-contractors to do so.
46.3
Payment if Contract Terminated in Case of War

If the Contract shall be terminated as aforesaid the Contractor shall be
paid by the Employer (in so far as such amounts or items shall not have
already been covered by payments an account made to the Contractor)
for all work executed prior to the date of termination at the rates and
prices provided in the Contract and in addition:
(a) the amounts payable in respect of any preliminary items, so far as
the work or service comprised therein has been carried out or
performed, and a proper proportion as certified by the Engineer of
any such items the work or service comprised in which has been
partially carried out or performed,
(b) the cost of materials or goods reasonably ordered for the Works
or for use in connection with the Works which shall have been
delivered to the Contractor or of which the Contractor is legally
liable to accept delivery (such materials or goods becoming the
123
property of the Employer upon such payment being made by

him),
(c) a sum, to be certified by the Engineer, being the amount any

expenditure which in the circumstances was reasonably incurred
by the Contractor in the expectation of completing the whole of
the Works, in so far as such expenditure shall not have been
covered by the payments in this Sub-Clause before mentioned,
(d) the reasonable cost of removal under Sub-Clause 2 of this Clause
and (if required by the Contractor) return thereof to the
Contractor's works in his country or to any other destination at no
greater cost,
(e) the reasonable cost of repatriation of all the Contractor's staff and
workmen employed on or in connection with the Works at the
time of such termination,
Provided always that, against any payments due from the Employer
under this Sub-Clause, the Employer shall be entitled to be credited with
any outstanding balances due from the Contractor for advances in
respect of Plant and materials, and any sum previously paid by the
Employer to the Contractor in respect of the execution of the Works.
47.0
SPECIAL RISKS
47.1
No Liability for War etc Risks

Notwithstanding anything in the Contract contained, the Contractor shall
be under no liability whatsoever whether by way of indemnity or
otherwise for or in respect of destruction of or damage to the Works,
save to work rejected under the provisions of Clause 28.0 (Defects
before Taking Over) hereof prior to the occurrence of any special risk
hereinafter mentioned, or to property whether of the Employer or third
parties, or for or in respect of injury or loss of life which is the
consequence of any special risk as hereinafter defined.
47.2
Special Risks - Definition
124
The special risks where these take place in the Sultanate of Oman are
the nuclear and pressure wave risks described in Clause 15.1 (b) (i)
(Care of Works), war, hostilities (whether war be declared or not),
invasion, act or foreign enemies, rebellion, revolution, insurrection,
military or usurped power, civil war or, riot, commotion or disorder of
persons other than the employees of the Contractor or his SubContractors.
47.3
Damage to Works etc by Special Risks

If the Works or any Plant on or near or in transit to the Site, or any other
property of the Contractor used or intended to be used for the purposes
of the Works, shall sustain destruction or damage by reason of any of
the said special risks the Contractor shall be entitled to payment for:
(a) any Portion of the Works or of Plant so destroyed or damaged and

so far as may be required by the Engineer, or as may be
necessary for the completion of the Works, on the basis of cost
glue such profit as the Engineer may certify to be reasonable for,
(b) replacing or making good any such destruction or damage to the
Works,
(c) replacing or making good such materials or other property of the
Contractor used or intended to be used for the purposes of the
Works.
47.4
Projectiles, Missiles etc

Destruction, damage, injury or loss of life caused by explosion or impact
whenever and wherever occurring of any mine, bomb, shell, grenade or
other projectile, missile, munition or explosive of war, shall be deemed
to be a consequence of the said special risks.
47.5
Increased Costs arising from Special Risks

The Employer shall repay to the Contractor any increased cost of or
incidental to the execution of the Works, other than such as may be
attributable to the cost of reconstructing work rejected under the
provisions of Clause 28.0 (Defects before Taking Over) hereof, prior to
the occurrence of any special risk, which is howsoever connected with
the said special risks, subject however to the provisions in these
Conditions in regard to outbreak of war, but the Contractor shall as soon
125
as any such increase of cost shall come to his knowledge forthwith

notify the Engineer thereof in writing.
48.0
FRUSTRATION
Should the Contractor be obstructed or delayed in the commencement,
execution or completion of his work by any necessary or unavoidable act
or delay of the Employer or by a cause in the Sultanate of Oman being a
riot, insurrection, war, blockade, revolution, civil commotion, pestilence,
acts of public authorities, fire, explosion, lightning, earthquake, cyclone,
tidal waves, typhoons, hurricanes, tornadoes, floods, plague, epidemics,
quarantine, strikes or other labour troubles or similar causes unforeseen,
not caused by and beyond the control of the Contractor; and if in the
opinion of the Engineer, the ultimate completion of the entire Works is
delayed thereby, then the Contract dates will be extended for a period
equivalent to the time the said work as a whole has been delayed for
said reason, provided that within seven (7) days the Contractor submits
to the Engineer for approval notice in writing stating in detail the reason
for each delay caused by frustration or Force Majeure.
49.0
SETTLEMENT OF DISPUTES
If any dispute or difference of any kind whatsoever shall arise between
the Employer and the Contractor or the Engineer and the Contractor in
connection wish, or arising out of the Contract, or the execution of the
Works, whether during the progress of the Works or after their
completion and whether before or after the termination, abandonment
or breach of the Contract, it shall be referred to and settled by the
Engineer who shall, within a period of ninety days after being requested
by either party to do so, give written notice of his decision to the
Employer and the Contractor. Such decision in respect of every matter
so referred shall be final and binding upon the Employer and the
Contractor, and shall forthwith be given effect to by the Employer and
by the Contractor, who shall proceed with execution of the Works with
all due diligence whether he or the Employer requires arbitration, as
hereinafter provided, or not. If the Engineer has given written notice of
his decision to the Employer and the Contractor and no Claim to
arbitration has been communicated to him by either the Employer or the
Contractor within a period of ninety days from receipt of such notice, the
said decision shall remain final and binding upon the Employer and the
126
Contractor. If the Engineer shall fail to give notice of his decision, as

aforesaid, within a period of ninety days after being requested as
aforesaid, or if either the Employer or the Contractor be dissatisfied with
any such decision, then and in any such case either the Employer or the
Contractor may within ninety days after receiving notice of such
decision, or within ninety days after the expiration of the first named
period of ninety days, as the case may be, require that the matter or
matters in dispute be referred to arbitration as hereinafter provided. All
disputes or differences in respect of which the decision, if any, of the
Engineer has not become final and binding as aforesaid shall be referred
to an arbitrator to be agreed upon by the parties or failing such
agreement to be nominated, on the application of either party, by the
Chairman of the Committee for the Settlement of Commercial Disputes
of the Sultanate of Oman, who shall appoint a professional arbitrator,
whose award shall be considered as final and binding between the
parties. The said arbitrator shall have full power to open up, revise and
review any decision, opinion, direction, certificate or valuation of the
Engineer. Neither party shall be limited in the proceedings before such
arbitrator to the evidence or arguments put before the Engineer for the
purpose of obtaining his said decision. No decision given by the
Engineer in accordance with the foregoing provisions shall disqualify him
from being called as a witness and giving evidence before the arbitrator
on any matter whatsoever relevant to the dispute or difference referred
to the arbitrator as aforesaid. The reference to arbitration may proceed
notwithstanding that the Works shall not then be or be alleged to be
complete, provided always that the obligations of the Employer, the
Engineer and the Contractor shall not be altered by reason of the
arbitration being conducted during
the progress of the Works
50.0
NOTICES
50.1
Notices to Contractor
All certificates, notices or written orders to be given to the Contractor by
the Employer or the Engineer under the terms of the Contract shall be
served by sending the same by post, cable, telefax or telex or by leaving
the same at the Contractors principal place of business or to such other
address as the Contractor shall nominate for that purpose.
127
50.2
Notices to Employer and Engineer

Any notice to be given to the Employer or to the Engineer under the
terms of the Contract shall be served by sending the same by post,
cable, telefax or telex to or leaving the same at the respective
addresses nominated for that purpose in the Form of Agreement and
Clause 1.1 (Definitions) hereof.
50.3
Change of address
Either party to the Contract or the Engineer may change its nominated
address by prior written notice to the others.
51.0
TERMINATION OF CONTRACT
The Employer shall have the right to terminate the Contract if it should
become necessary for the Employer to postpone or discontinue the
Works for any reason whatsoever. In the event of termination, the
Employer shall pay to the Contractor the relevant Contract Price in
accordance with criteria stated in Clause 46.3 (Payment of Contract
Terminated in Case of War) for the Works performed up to the date of
termination together with a reasonable allowance for profit and costs of
settlement.
52.0
CHANGES IN COST AND LEGISLATION

Adjustments to the Contract Sum will be applicable on a net cost basis
in the following circumstances:
(a)
Changes in last wages draw and allowances paid to labour and

staff employed on the Site of the Works whose salaries are
128
directly affected thereby as a result of any Sultanate of Oman

legislation promulgated after the date if the Letter of Acceptance
and applicable to this Contract. The Contractor must provide to
the Engineer satisfactory detailed evidence of any variation of the
last wages drawn and allowances before any such variations are
paid or deducted from the Contractor. The Contractor shall submit
to the Engineer upon signing the Contract a detailed list of his
labour and staff and their wages and allowances.
(b)
53.0
Changes in material price directly affected as a result of any

Sultanate of Oman legislation promulgated after the date d the
Letter of Acceptance excepting only any legislation which may
result in the adjustment of the exchange rate of the Rial Omani in
relation to any other currency or currencies.
CLEARANCE THROUGH CUSTOMS

The Contractor shall be responsible for clearance through the Customs
of all Plant and Contractors Equipment and in procuring any necessary
Government consent to the re-export of Contractors Equipment upon
removal from the Site.
54.0
FIRE PRECAUTIONS
The Contractor shall conform to the regulations of the Employer and any
other controlling authority in force at the Site of the Works with respect
to precautions to be taken against fire hazards.
55.0
GUARANTEES
55.1
Guarantee of Material and Workmanship

The Contractor shall guarantee that the materials incorporated into the
Works are unused and the best of their respective kind for the service
intended and that all items will be free from inherent defects in
workmanship and material, and that the Plant in its several components
will operate successfully at all capacities up to and including the
maximum specified performance without undue settlement, noise,
heating, straining of parts, wear and vibration, and that an ample factor
of safety is included in every design. Such guarantee shall be valid for at
least 10 years from the date of the Final Acceptance Certificate.
129
55.2
Performance Guarantees
The Contractor shall comply with the performance and other guarantees
as stipulated in the Outline Specification, for Mechanical and Electrical
Works, the Civil and Building Works, the Schedules of Guarantees, the
Schedules of Technical Data, the Specifications and/or other Contract
Documents.*
56.0
TAXATION, CUSTOMS DUTY, RATES AND OTHER CHARGES

(a)
(b)
The Contractor shall be responsible for ascertaining the extent of

all taxes, customs, rates, dues and other charges payable in
accordance with the Laws, Regulations, in force from time to time
in the Sultanate of Oman and shall give all notices in compliance
therewith.
The Contractor shall be held to have included in the Tender for the
payment of all charges of whatever nature required to be paid in
order to comply in all respects with the above Laws and
Regulations.
130
ANNEXURE A
FORM OF TENDER BOND
H.E. The Chairman
Tender Board
P. O. Box 787
Muscat
Sultanate of Oman
Tender Bond NO.
By
this
bond
we
..
is
....
.
whose
address
..
hereby guarantee Messrs ....
..
of
..
and
hold
at
your
disposal
the
sum
of
RO
....
and/or
..
..
being
of
the
Tender
Sum
from
.until
.. a total period of ninety (90) days.

This bond shall be free of interest and payable in cash on your first written
demand in the event of the Tenderer either withdrawing his Tender within a
period of ninety (90) calendar days from the date for the receipt of Tenders or
failing to provide a Performance Bond within twenty eight (28) calendar days of
131
acceptance of the Tender without any reference to or contestation on behalf of

the Contractor.
This bond should be returned to us upon its expiry or upon fulfillment of our
undertaking whichever is the earlier.
Authorized Signature
(To be issued by a locally registered bank)
132
ANNEXURE B
FORM OF ADVANCE PAYMENT BOND
Ministry of Finance and Economy
P. O. Box 506
Muscat
Sultanate of Oman
Advance Payment Bond NO.
Whereas
(hereinafter called the Contractor) has been awarded a Contract dated
.. to execute, complete and remedy the defects of
the
.. for the
value of RO ( Rials
Omani
..and/or
.) to the Contractor
being 10% of the Contract Sum, less any sum for Contingencies included in the
Contract
Sum,
by
this
bond,
we
whose
address is .. guarantee to
pay
you
a
sum
not
exceeding
RO
.
and/or ..
.
on your first written demand without reference to or contestation on behalf of
the Contractor.
It is understood that our liability towards you will be progressively reduced by
the amount repaid to you by the Contractor as contained in the Certificates
and Payments against the said advance payment.
This bond should be returned to us upon its expiry or upon fulfilment of our
undertaking whichever is the earlier.
__________________

133
134
ANNEXURE C
FORM OF PERFORMANCE BOND
Ministry of Finance and Economy
P. O. Box 506
Muscat
Sultanate of Oman
Advance Payment Bond NO. ..
Whereas ....
(hereinafter called the Contractor) has been awarded a Contract dated

..
to
execute,
complete
and
remedy
the
defects
of
the
.....
for the value of RO .(Rials
Omani
..
)
and/ or .
.
by
this
bond
we
whose address is .
.
are held and firmly bound unto the Government of the Sultanate of Oman
represented by the Ministry of Finance and Economy, Muscat in the sum of RO
..
and/
or
being 5% of the Contract Value.
We agree to make unconditional payment under this bond on your first written
demand without any reference to or contestation on behalf of the Contractor
provided the claim is received by us on or before.
The bond will be effective from .. and shall be
valid until the after which date our liability shall
automatically cease.
This bond should be returned to us upon its expiry or upon fulfillment of our
undertaking whichever is earlier.
__________________
135

NOTE TO THE CONTRACTOR
Whilst the Performance Bond is an On First Written Demand Bond, the

Employer may, but is not bound to adhere to the following procedure. If the
Employer considers that the Contractor is in default of the due performance of
his duties under the Contract, then the Employer will give fourteen days
written notice to the Contractor of this occurrence during which time the
Contractor shall rectify such performance to the satisfaction of the Engineer.
If in the opinion of the Engineer such performance is not rectified the Engineer
shall inform he Employer accordingly in writing.
The aforementioned shall not, in any manner whatsoever, alter the nature of
the On First Written Demand Bond.
136

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SULTANATE OF OMAN

FORM OF TENDER ... 3

SHORT DESCRIPTION OF WORKS

CHAIRMAN OF THE TENDER BOARD

and confirm that we have taken account thereof in our Tender.

Receipt of Operating &

_____ days/months* before

Time for Completion

Insurance of the Works

Minimum Amount of Third Party

Amount of Penalty per day

Amount of Penalty per day

Defects Liability Period

Percentage for Adjustment of

_________________ per cent

Amount of Compensation per day

Yearly Cash Flow: *

(IN BLOCK CAPITALS)

APPENDIX A TO FORM OF AGREEMENT

the constitution of the Company, powers of attorney and other relevant

APPENDIX B TO FORM OF AGREEMENT

TOTAL CONTRACT SUM

- Value of Overseas Portion*

TOTAL CONTRACT SUM

- Value of Overseas Portion*

- Value of Local Portion*

STANDARD CONDITIONS OF CONTRACT

DEFINITIONS AND INTERPRETATIONS......................................................28

Singular and Plural.................................................................................. 33

ENGINEER AND ENGINEERS REPRESENTATIVE.......................................33

Engineers Power to Delegate.................................................................34

Engineer to Act Fairly..............................................................................34

ASSIGNMENT AND SUB-LETTING.............................................................34

Compliance with Laws and Governing Law.............................................35

Documents mutually explanatory...........................................................36

DRAWINGS AND SPECIFICATIONS............................................................36

Outline Drawings and Outline Specification............................................36

Drawings and Specification Approval Procedure..................................36

Operating and Maintenance Instructions................................................39

MISTAKES AND ERRORS..........................................................................40

Mistakes and Information........................................................................40

OBLIGATIONS OF THE CONTRACTOR.......................................................41

Training of Employer 's Personnel...........................................................42

Advance Payment Bond..........................................................................44

Errors in Computing Tender.................................................................45

11.0 ENGINEERS DECISIONS..........................................................................45

Procedure and Method.........................................................................46

Advanced Detailed Progress of Plant Schedule....................................46

13.1 Contractor's Representative...................................................................48

EQUIPMENT SERVICES FACILITIES........................................................49

14.1 Contractor's Equipment..........................................................................49

Safety and Security............................................................................. 49

Electricity, Water and Gas...................................................................49

Opportunities for other Contractors.....................................................50

LIABILITY FOR ACCIDENTS AND DAMAGE.............................................50

Care of the Works................................................................................50

Damage to Works caused by Excepted Risks......................................51

Damage to Persons and Property before Taking Over..........................51

Damages to Persons and Property after Taking Over...........................52

Damage to Persons and Property from a cause occurring before Taking

Claims for Damage to Persons or Property..........................................53

15.7 Accident or Injury to Workmen................................................................53

Damage to Services on Site.................................................................54