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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.
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.
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 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.
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.