Вы находитесь на странице: 1из 7

CONTRACT MANAGEMENT - VI

FIDIC, CONDITIONS OF CONTRACT


(FOR CONSTRUCTION WORKS 1987/92 edition)

In last the article, the back ground of FIDIC was reviewed and some
tenets of its philosophy were also highlighted. It is necessary that
main clauses and conditions are now reviewed for full understanding of
these ideal contract documents which are in use around the world.
These FIDIC created provision are also the basis of contract conditions
adopted for World Bank or ADB aided projects.

In this article, all these clauses will be reviewed and summarized, but
for accuracy, original text of FIDIC. Red Book 1987 edition amended
upto 1992 needs to be referred. Also though World Bank has adopted
General Conditions of Contract (GCC) in TOTO from FIDIC, they have
made changes where required through conditions of particular
application as part II. But at the same time CPWD and other Public
Authorities in India follow their own set of conditions. Now to get a
comprehensives view of all these aspects, certain methodology needs
to be followed, while discussing the details and comparing them for
ease of understanding. It might be prudent to first understand what
FIDIC says about General Conditions of Contract and then separately
review in another article particular application done by World Bank
along with the discussion of CPWD provisions to understand the
conditions, which favourably affect the contract execution and the
provisions which may create risks and responsibilities for both the
parties i.e. client and Contractor.

General Conditions of Contract Part I GCC

Clause 1: Definitions
Many terms are defined under this clause to remove any doubt about
meaning and interpretation. The terms such as the engineer, letter of
acceptance, commencement date, test on completion, foreign currency
and cost are significant terms for correct understanding.

The headings and marginal notes are not considered to be part of


clauses. All notices, approvals, certificates shall be in writing. Any
consent, approval or determination shall not be unreasonably withheld,
or delayed. The word tender is considered equivalent with Bid.

Clause 2 : The Engineer


This clause makes clear that the engineer (also PMC) who represents
the employer shall carry out duties as specified in the conditions of
particular application. They have to clarify the issues on which the
engineer must seek prior approval of the employer, such as cost
increase or time extension. The engineer has no authority to relieve
the contractor of any of its obligations under the contract, but has full
authority to act in an emergency. The engineer may delegate to his
representative any of his duties and authorities. The engineers
approval does not absolve the contractor of his duties and
responsibilities under the contract. The engineer shall instruct in
writing and oral instructions shall be confirmed by written
communication. The engineer shall act impartially on all matter
entrusted to him.

Clause 3 : Assignment of Contract


The contractor shall not, without the prior consent of Employer, assign
the contract or part thereof to any one else, except for Contractors
bankers for any monies due or to the contractors insurers.

Clause 4 : Subcontracting
The contractor shall not subcontract the whole of the works, except
where otherwise provided. The contractor shall not sub-contract any
part of the works without the prior consent of the Engineer, and he
shall remain fully responsible for the performance of the subcontractor
appointed by him. Such a consent is not required for provision of only
labour or purchase of material as per specification. If the use of sub
contractor is already named in tender/ contract, no separate
permission will be needed.

Clause 5 : Contract Documents


The language and the law applicable to the contract shall be as
specified in the conditions of particular application. The priority of
different documents forming the contract is clearly spelt out for
removing any ambiguities or discrepancies, though all documents
forming contract should be mutually explanatory of one another.

Clause 6 : Custody and Supply of Drawings/Documents


Two sets of drawings are to be issued by the engineer and one set out
of which should be kept at site. The contractor is required to inform
the engineer and employer if works are likely to be delayed for want of
drawings or if further instruction is not issued by the engineer within
reasonable time. Any delay will be to the cost of the employer.
However if submission of drawing prepared by contractor is delayed,
the cost of delays will be borne by the contractor.
Clause 7 : Supplementary Drawings and Instructions
The engineer has powers to issue supplementary drawings and
instructions for the proper completion of the works. When the
contractor is required to design part of the permanent works, he shall
obtain the approval from the Engineer for its drawings and design
calculations. However the contractor is responsible under the contract
even after approval of its drawings etc. by the engineer, for
correctness of design and details.

Clause 8 : Contractors General Responsibilities


The contractor is required to act with care and diligence. It has to
complete the works in accordance with the contract. Further it is
required that contractor should notify the employer and the engineer
of any error, omission or defect in the design and specification
provided to it by client.

Clause 9 : Contract Agreement


The contractor is required to execute the contract agreement with the
employer.

Clause 10 : Performance Security


The contractor is to provide performance security for the proper
performance of the contract. It is upto 10% of contract value and is
kept valid till the issue of the defects liability certificate. The clause
requires Employer to notify the contractor stating the nature of the
default in respect of which claim is being made by employer against
contractor.

Clause 11 : Inspection of Site


In works type contract, Employer is responsible for providing
hydrological and sub surface data to the bidders. However a
contractor is responsible for its own interpretation of the data. He is
deemed to have inspected and examined the site and data provided by
the client. It has to consider the means of access to the site etc. and
all other risks and contingencies and circumstances which may affect
its bid.

Clause 12 : Sufficiency of Tender


This clause states that contractor shall satisfy itself about correctness
and sufficiency of bids along with rates and prices to cover all its
obligations under the contract. In case of unforeseen physical
conditions or obstructions, not foreseeable by an experienced
contractor, the contractor shall notify the engineer/employer. The
engineer after consultation with the employer and contractor shall
decide on any extension of time and extra costs.
Clause 13 : Works to be according to Contract
This clause requires the contractor to execute and complete the works
in strict accordance with contract and to the satisfaction of the
engineer.

Clause 14 : Programme and Cash Flow


The contractor is required to submit a programme for the execution of
the work including description of the arrangements and methods of
execution. If the actual progress of the works does not confirm to the
programme, the contractor shall produce a revised programme to
ensure completion of the works within the time for completion.

The contractor also provides to the engineer a detailed cash-flow


estimates in quarterly periods. However submission of above
programmes and cash-flow estimates does not relieve him of duties of
completing the contract as agreed.

Clause 15 : Contractors Superintendence


The contractor has to provide proper superintendence to the works.
The contractors representative, approved by the engineer, shall
receive instructions from the engineer. If the representative is not
fluent in the local language then a competent interpreter has to be
provided. The engineer has right to remove the contractors
representative from the site if found unsuitable for the role entrusted
to him.

Clause 16 : Contractors Employees


The contractor shall provide skilled and experienced technical persons
for proper superintendence of the works and the necessary skilled,
semi skilled and unskilled labour. If the engineer objects to any persons
for incompetence or misconduct, the contractor shall remove them.

Clause 17 : Setting Out


The Contractor is responsible for the accurate setting out of the works,
It has to provide the necessary instruments appliances and labour. The
contractor shall correct at its own cost any error noticed later in
positions, levels, dimensions etc. unless such error is based on
incorrect data supplied in writing by the engineer or employer.

Clause 18 : Boreholes and Exploratory/ Excavation


As per this clause, the engineer may ask the contractor to make
boreholes or to carry out exploratory excavation as per instructions
under clause 51, payable by client directly or by utilizing provisional
sum, available in the contract.
Clause 19 : Safety, Security and Environment
The clause requires the contractor to take care of the safety of all
persons, provide and maintain at his own cost, all lights, guards,
fencing, warning signs and watching for the safety of the Public and
take all reasonable steps to protect the environment and to avoid
damage or nuisance to public resulting from pollution or noise or other
causes connected to his methods of operation.

Clause 20 : Care of Works


As per this clause, the contractor takes care of the works from the
commencement date till the taking over certificate is issued by client.
It shall rectify any loss or damage except from causes for which
employer is required to accept the risk as per contractual provisions.

Clause 21 : Insurance of Works and Contractors Equipment


The clause is for the contractor to take an insurance policy for the full
replacement costs of the works and an additional 15% to cover any
extra costs. If the contractor fails to take out an insurance policy, the
employer may take it out at the contractors cost. The contractor shall
also insure against death or injury to any person or damage to property
during the performance of the contract for the amounts indicated in
the tender.

Clause 22 : Damage to Persons and Property


As per this provision, the contractor to indemnify the employer against
all losses and claims in respect of death, injury or damage to property
other than works. However the contractor is not responsible for any
losses arising from actions of employer or his agent.

Clause 23 : Third party Insurance


The contractor has to insure jointly in the contract its names and that
of the employer against liabilities for death, injury or damage to
property arising out of the performance of the contract.

Clause 24 : Accident and Injury


The contractor shall insure against the liability arising of claims to any
workman or any other person due to accident or injury. It shall provide
evidence to the employer of having done it.

Clause 25 : Evidence and Terms of Insurance


Before commencement of the works, contractor should produce
evidence of taking out an insurance policy, Employer may take out the
policy at the cost of contractor if he fails to take out insurance policy.
Clause 26 : Compliance with Statutes
This clause is for the contractor to obey all national, state or local
authority, laws and regulation during the execution and completion of
the works.

Clause 27 : Fossils
As per this provision, all fossils, articles of value, or antiquity etc
discovered at the site, shall be the property of the employer. But any
time delay and cost spent on removing these will be reimbursed.

Clause 28 : Patent Rights


The contractor is required to indemnify the employer against all claims
arising out of any patent rights, design trademark etc in respect of its
equipment, materials or plant used for the works. It shall also pay all
the royalties rent etc. for getting stone, sand, gravel, clay or other
material required for works.

Clause 29: Traffic and Adjoining Properties


As per this clause, the contractor is to ensure that its operations on the
works do not interfere with the convenience of the public or block the
access to others.

Clause 30 : Damage to Roads


The clause requires the contractor to prevent damage to any of the
roads or bridges by the movement of its vehicles. It shall be
responsible for the cost of strengthening any bridges or road and even
altering or improving any road to facilitate the movement of its
equipment.

Cause 31 : Opportunities for other Contractors


FIDIC requires that the Contractor allows other contractors on the
contract or on nearby works without any hindrances. However it can
charge for the access road used by others if the road was maintained
by the contractor.

Clause 32 : Contractor to keep Site Clear


This clause requires contractor to keep site clean and tidy.

Clause 33 : Clearance of Site on Completion


As soon as the employer issues the taking over certificate, the
contractor has to remove all its equipment and surplus material,
rubbish and temporary works of every kind.

Clause 34 : Staff and Labour


The contractor shall make its own arrangement for the engagement of
all the staff and labour, including housing feeding and transport.

Clause 35 : Returns of Labour and Equipment


This clause allows the engineer to ask the contractor to provide details
of the staff and the labour employed.

In the next article, the FIDIC clauses related to Materials and plant,
suspension of work, Liquided damages, valuation of variations,
certificates of payment, Defect liability special risks and settlement of
Disputes will be covered.

Вам также может понравиться