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CONDITIONS OF CONTRACT FOR WORKS OF CIVIL ENG. CONSTRUCTION FIDIC – RED BOOK – 1987/92 PART I - GENERAL CONDITIONS

CONDITIONS OF CONTRACT FOR WORKS OF CIVIL ENG. CONSTRUCTION FIDIC – RED BOOK – 1987/92 PART I - GENERAL CONDITIONS. GENERAL PROVISIONS. 1.1 DEFINITION AND INTERPRETATION

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CONDITIONS OF CONTRACT FOR WORKS OF CIVIL ENG. CONSTRUCTION FIDIC – RED BOOK – 1987/92 PART I - GENERAL CONDITIONS

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  1. CONDITIONS OF CONTRACTFOR WORKS OF CIVIL ENG. CONSTRUCTIONFIDIC – RED BOOK – 1987/92PART I - GENERAL CONDITIONS

  2. GENERAL PROVISIONS 1.1 DEFINITION AND INTERPRETATION • “Employer” means the person named as such in part II of these conditions and the legal successor in the title to such person. • “Contractor” means the person whose tender has been accepted by the employer & the legal successor in title to such person. • “Sub Contractor” means any persons named in the contract as a sub contractor for a part of the works or any person to whom a part of work has been sub contracted with the consent of engineer and the legal successor in title to such person. • “Engineer” means the person appointed by the employer to act as engineer for the purpose of the and named as such in part II of these conditions. • “Contract” means these condition (part I & Part II) the specification, the drawing, the bill of quantities, the tender, the letter of acceptance, the contract agreement (if completed) and such further documents, as may be expressly incorporated in the letter of acceptance or contract agreement. • “bill of quantities” means the priced and completed bill of quantities forming part of the tender. • “tender” means the contractor’s priced offer to the employer for the execution and completion of the works and the remedying of any defect therein. • “Commencement Date” means the which the contractor received the notice to commence issued by the engineer as per clause 41.

  3. “Plant” means machinery apparatus and the like intended to form or forming part of the permanent works. • “Contractor equipment” means all appliances and things of whatsoever nature required for the execution and completion of the works and the remedying of any defect therein. • “Cost” means all expenditure properly incurred or to be incurred, whether on or off the site, including overhead and other charges properly allocable thereto but does not include any allowance for profit. • “foreign currency” means a currency of the country other than that in which the work is to be located. 1.2 HEADINGS AND MARGINAL NOTES The heading and marginal notes used should be assumed as coherent part of the actual clause. 1.3 Words importing person or parties shall include team and corporation and any organization having legal capacity. 1.4 Word importing the singular only also includes the plural and vice versa where the context requires. 1.5 NOTICES AND CONSENTS ETC Notice, consent, approval, certificate or determination shall be in writing and the words “notify”, “certify” or determine” shall be construed accordingly. Any such consent, approval, certificate or determination shall not unreasonably be withheld or delayed.

  4. 2.1 ENGINEER AND ENGINEER’S REPRESENTATIVE a)The engineer shall carryout duties specified in the contract. b) The engineer may exercise the authorities specified to him, which imply from the contract. But during the appointment of the engineer if employer has stated a need for specific approval from him (employer) to execute the powers then the engineer should acquire such permissions. The contractor shall take it for granted that such permissions have been taken by engineer. 2.2 The engineer can delegate any of his authorities vested in him to the engineer’s representative and also revocate such authorities from time to time. 2.5 INSTRUCTIONS IN WRITING Instructions given by the engineer shall be in writing, provided that if for any reason the Engineer considers it necessary to give any such instruction orally. Provided further that if the contractor confirms within 7 days such instructions in writing and if such confirmation is not contradicted by the engineer in writing, within 7 days. 2.6 ENGINEER TO ACT IMPARTIALLY Wherever, under the contract, the Engineer is required to exercise his discretion by: a) Giving his decision, opinion or consent b) Expressing his satisfaction or approval c) Determining value or d) Other wise taking action which may affect the rights and obligations of the Employer or Contractor.

  5. He shall exercise such discretion impartially within the terms of the contract and having regard to all the circumstances. Any such decisions, opinion, consent; expression of satisfaction, or approval, determination of value or action may be opened up, reviewed or revised as provided in clause 67. 3.1 ASSIGNMENT AND SUBCONTRACTING The contractor shall not without the prior consent of the employer, assign the contract. 4.1 SUB CONTRACTING The Contractor cannot subcontract the whole of the Works. Contractor can subcontract a part of the Works only with the prior consent of the Engineer. Such consent does not relieve the contractor from any of his obligations and liabilities from that part of work. The Contractor is completely responsible for the acts, defaults and neglects of any subcontractor. Provided that the contractor shall not be required to obtain such consent for: a) The provision of labour b) The purchase of materials c) The sub contracting of any part of the Works for which the Subcontractor is named in the Contract.

  6. 6.1 DRAWINGS AND DOCUMENTS • The drawings remain in the custody of the engineer and two copies are provided to the contractor free of charge. • The contractor shall supply to the Engineer four copies of all Drawings, Specification and other documents submitted by the Contractor and approved by the Engineer. 6.2 DRAWING AT SITE One copy of the drawings shall always be kept on the site by the contractor. 6.3 DISRUPTION OF PROCESS In case any delay or disruption of planning or execution works is anticipated or likely to occur, due to lack of further issuing of drawings by the Engineer, the Contractor shall give Notice to the Engineer with a copy of it to the Employer. The Contractor’s notice shall include details of the drawing or instruction required and of why and by, when it is required and of any delay or disruption likely to be suffered if it is late. 6.4 COST OF DELAY OF DRAWINGS If the Engineer fails to issue the drawings or instruction then the Engineer shall after due consultation with the employer and the contractor determine: - any extension of time to which the contractor is entitled - the amount of such costs which shall be added to the contractor price.

  7. 6.5 FAILURE BY CONTRACTOR TO SUBMIT DRAWINGS If the above delay is due to failure by contractor to submit drawings engineer shall take failure by contractor into account while acting upon clause 6.4. 7.1SUPPLEMENTARY INSTRUCTIONS This clause allows the engineer to issue the contractors supplementary drawings or instructions, and the contractor shall have to abide by it and work accordingly. 7.2 PERMANENT WORKS DESIGNED BY CONTRACTOR Where the contract expresses that part of the permanent works shall be designed by the contractor he shall submit to the engineer, for approval: such drawings and calculations along with operation and Maintenance manuals. 7.3 RESPONSIBILITY UNAFFECTED BY APPROVAL Approval by the engineer, according to the permanent works designed by the contractor shall not relieve the contractor of any of his responsibilities under the contract. 8.1 CONTRACTORS GENERAL RESPONSIBILITY The Contractor shall design (to the extent required) execute and complete the works and remedy any defects by providing all superintendence, labour materials, Plant Contractor’s Equipment and other things, as specified or as inferred from the contract.

  8. 8.2 SITE OPERATIONS AND METHODS The Contractor shall take full responsibility for the adequacy, stability and safety of all site operations and methods of contraction provided that the contractor shall not be responsible for Permanent or Temporary works not designed by him. 9.1 CONTRACT AGREEMENT The contractor shall enter into and execute the Contract Agreement to be Prepared and completed at the cost of the Employer. 10.1 PERFORMANCE SECURITY If contract requires performance security the contractor shall obtain it and provide to Employer within 28 days after the receipt of the Letter of Acceptance. 10.2 PERIOD OF VALIDITY Duration of validity of performance security is till the employer issues the defect liability certificate in accordance with sub clause 62.1 to the contractor. Employer should return the performance security to the contractor within 14 days of issue of the above mentioned defect liability certificate. 10.3 CLAIMS UNDER PERFORMANCE SECURITY If the employer under the performance security makes any claims, detailed notification should be given to the contractor stating the nature of the default.

  9. 11.1 INSPECTION OF SITE • It is assumed that the contractor has already examined and inspected the site is satisfied with it before submitting the tender, with regard to: a) The form and nature of the site including sub surface condition. b) The hydrological and climatic condition. c) The extent and nature of the work and the material; necessary for the execution. d) The means of access to the site and the accommodation he may require and is deemed to have obtained all the information he may require as to risks and contingencies. 12.1 SUFFICIENCY OF TENDER It is assumed that the contractor has done all the research work about the correctness and sufficiency of tender related to execution and completion of the work and the remedying of any defect which may occur. 12.2 NOT FORESEEABLE PHYSICAL CONDITION Other than climatic conditions, if contractor finds an adverse physical obstruction or condition which is not foreseeable by an experienced contractor should inform the engineer. Engineer after consultation with both may grant. a) The time extension needed in the completion of the work. b) And the amount of cost increase needed by the contractor for the above reason. Such time and cost increase may include any proper and reasonable measures acceptable to the Engineer which the contractor may take in the absence of specific instructions from the engineer.

  10. 13.1 WORK TO BE IN ACCORDANCE WITH CONTRACT Unless it is legally or physically impossible the contract shall execute and complete the works and remedy any defects in accordance with contract to the Engineer’s satisfaction. 14.1 PROGRAMME TO BE SUBMITTED Within a specified time (in days), after the date of the Letter Of Acceptance, the contractor shall submit a programme to the engineer for his consent in such a way and detail as the engineer shall reasonable prescribe for the execution of the works. It is also required that whenever the engineer requires, the contractor shall provide in writing, for his information, a general description of the arrangement and methods which the contractor proposes to adopt for the execution of the works. 14.2 REVISED PROGRAMME If it appears to the engineer, at any time, that the actual progress of the works does not conform to the progamme to which consent, is given; the contractor at the request of the engineer, is required to produce a revised programme necessary to ensure completion of the works within the Time for Completion. 14.3 CASHFLOW ESTIMATE The contractor shall within time stated in Part II provide a detailed cash flow estimate, in quarterly period, for all payments to which the contractor will be entitled under the contract (to the engineer) and the contractor shall subsequently supply revised cash flow estimates at quarterly intervals, if required to do so by the engineer.

  11. 14.4.CONTRACTOR NOT RELIEVED OF DUTIES Such cash flow statements do not relieve the contractor of any of this duties or responsibilities under the contract. 15.1 CONTRACTOR’S SUPERITENDENCE The contractor is needed to provide all necessary superintendence during the execution of the work and thereafter, as long as the engineer consider it necessary for proper fulfillment of the contractor’s obligations under the contract. If the approval of Contractor’s representative is withdrawn by the Engineer then Contractor shall replace him by any other representative approved by the Engineer. 16.1 CONTRACTOR’S EMPLOYEES The contractor shall provide on the site only skilled and experienced technical assistants and foremen to provide proper superintendence to skilled, semiskilled and unskilled labour as is necessary. 16.2 ENGINEER AT LIBERTY TO OBJECT The Client’s engineer having object on the contractor’s worker when they misconduct themselves, or are incompetent or negligent in the proper performance of his duties. Such workers should be replaced as soon as possible.

  12. 17.1 SETTING OUT The contractor has to look after about the accurate setting out of the works and the provision of all necessary instruments, appliances and labour in connection with the foregoing responsibilities. The contractor shall rectify any error if caused regarding setting out unless it was caused due to incorrect data provided byEngineer in writing. 18.1 BORE HOLES AND EXPLORATORY EXCAVTION The Engineer has rights to ask the Contractor to do Boreholes or to carry out exploratory execution of works if the item or provisional sum for the work is included in the bill of Quantities. 19.1 SAFETY, SECURITY, AND PROTECTION OF THE ENVIRONMENT - To safeguard the working person from the danger/injury during execution. - To provide and maintain lights, guards, fencing, warning signs and watchman at his own cost. - To protect the environment and to avoid the public damage, or nuisance and pollution arising out of his methods of operations. 19.2 EMPLOYER’S RESPONSIBILITIES The employer has to safeguard the working ;person and to avoid danger to the workmen in the site, if he employs his own labour or other contractors to carry out some work.

  13. 20.1 CARE OF WORKS The contractor has to take care of all the materials and plants at his own risk starting from the commencement of the project to the date of issue of Taking over Certificate by the Employer. The contractor has to be responsible for the plants and materials until the outstanding works are completed during Defects Liability Period. 20.2 RESPONSIBILITY TO RECTIFY The Contractor has responsibility to rectify the cause, other than the causes mentioned in sub-clause 20.4 at his own cost to the satisfaction of the Engineer. 20.3 DAMAGE DUE TO EMPLOYER’S RISK The contractor shall rectify the loss or damage occurred due to the causes mentioned in sub-clause 20.4 or in combination with the other risks. The Engineer will pay an addition to the contract price to the contractor with a copy to the Employer. • 20.4 THE EMPLOYER’S RISK • - War, Hostilities, Invasion, Act of Foreign enemies. • - Rebellion, Revolution, Insurrection, Military or usurped power or civil. • - Ionizing radiation, Contamination by radio activity. • - Pressure waves from aircraft travelling at sonic or super sonic speed. • - Riot, disorder unless it is restricted to Employees of the Contractor or of his sub Contractors • - The loss or damages caused to contractor due to take over of part of works by employer. • - Loss or damage, caused due to the design of works provided by employer • - The causes due to the forces of nature which could not have been foreseen by an experienced contractor.

  14. 21.1 INSURANCE OF WORKS AND EQUIPMENT The Contractor shall insure the following • The full replacement cost for the plant and materials to be incorporated in the works plus 15 percent of the full replacement cost in addition to be insured for the additional costs like rectification of loss or damage, Professional fees, Demolishing cost and removing the debris from the work. • The Contractor’s Equipment and other things brought to the site for a sum sufficient for its replacement. 21.2 SCOPE OF COVER For the cases mentioned in sub-clause 21.1 the insurance will be in the joint names of the contractor and the employer, and shall cover (a) the employer and the contractor against all loss or damage other than force Majeure causes stated in 21.4 from start of work till take over by Employer. (b)the contractor during Defects Liability Period for loss or damage caused prior to beginning of Defects Liability Period and for any causes arising out of clause 49 & 50 related to Defects Liability. 21.3 Any amount not insured or recovered by both the parties according to provisions in clause 20.

  15. 21.4 EXCLUSIONS There shall be no obligation of insurance under clause 21.1 to cover force Mejure issues such as • War, Hostilities, Invasion, Act of Foreign enemies. • Rebellion, Revolution, Insurrection, Military or usurped power or civil war. • ionizing radiation, Contamination by radioactivity • Pressure waves from aircraft or other aerial devices 22.1 DAMAGE TO PERSONS AND PROPERTY The Contractor indemnifies and holds harmless, the Employer on following issues. a) Death of or Injury to any person or b) Loss of or damage to any property other than Works which may arise out of execution and completion of the works, subject exceptions defined in sub-clause 22.2 22.2 EXCEPTIONS The exceptions referred above in 22.1 are a) The permanent use or occupation of land by the works. b) The right of employer to execute the works over under or through the land. c) Damage to the property during the execution of the work if the damage is unavoidable in the process of execution and remedying the defects as per the Contract. d) Damage to property and persons who are either injured or dead because of any act or neglect of the Employer, his agents, other Contractors who are not directly employed by the contractor.

  16. 22.3 The Employer shall indemnify the Contractor against all claims arising out of exceptions provided in 23.1 THIRD PARTY INSURANCE The Contractor shall insure in the joint names of the Employer and himself, without limiting his or Employer obligations and responsibilities, against injury or death to any person, loss or damages to the property arising out of the performance of contract. This insurance is not to cover the exceptions given in sub –clause 22.2 23.2 MINIMUM AMOUNT OF INSURANCE The insurance made shall be for at least the amount specified in the appendix of the Tender. 23.3 CROSS LIABILITIES The insurance policy shall include a cross liability clause i.e. separate insurance coverage’s are provided for the Contractor and Employer. 26.1 COMPLIANCE WITH STATUTES The Contractor should give all notices and pay all fees within the provisions stated in any of the National or State Statute, Ordinance, or other law or any regulation, and Contractor should confirm to the rules and regulations of all public bodies and companies whose property or rights which will or which may get affected in any way by the works. Also, the Contractor shall keep the Employer indemnified against all penalties and liabilities of every kind if the Contractor breaches any of the above said provisions.

  17. 27.1 FOSSILS All fossils, coins, articles of value or antiquity and structure and other remains or things of geological or archaeological interest that are discovered on the site shall be considered as the property of the Employer. The Contractor must take necessary precautions to prevent his workmen or any other persons from removing/damaging any such article. By doing so, if the Contractor suffers delay and /or incurs costs, then the Engineer shall, after due consultation with the Employer and the Contractor, determine. If any extension of time which the Contractor is entitled under Clause 44 and the amount of such costs, which shall be added to the Contract Price and should notify the Contractor accordingly, with a copy to the Employer. 28.1 PATENT RIGHTS The Contractor shall indemnify the Employer from all claims that may arise due to infringement of any patent rights or design trademark, in respect of any Contractor’s Equipment, materials or Plan used for in connection with the Work. 28.2 ROYALTIES The Contractor shall pay for all costs, royalties, rent and other payments or compensation, if any, for procuring stone, sand gravel or other materials required for the given Works. 29.1 INTERFERENCE WITH TRAFFIC AND ADJOINING PROPERTIES All operations and activities necessary for the successful completion of the Works and remedying any defects shall be carried out as not to interfere unnecessarily with

  18. The convenience of the public The access to use and occupation of private or public roads and footpaths of the properties. The Contractor, at such situations, indemnify the Employer in respect of all claims, so far as it is found that the Contractor was responsible for it. 30.1 AVOIDANCE OF DAMAGE TO ROADS The Contractor should use every reasonable means to prevent any of the roads/bridges that link the route to the Site, from being damaged by any traffic of the Contractor or his Sub-contractors. 30.2 TRANSPORT OF CONTRACTORS EQUIPMENT OR TEMPORARY WORKS. Contractor shall be responsible for and pay for the cost of strengthening any bridges to facilitate the movement of Contractor’s Equipment or Temporary Works and the Contractor shall keep the Employer indemnified against claims that may arise due to damage to any such road or bridge. 30.3 TRANSPORT OF MATERIALS AND PLANT In spite of following clause 20.1, if any damage occurs to any bridge or roads, the Contractor shall notify the Engineer, with a copy forwarded to the Employer, about the occurrence of such damage. Where, if stated under any law or regulation, the haulers of such materials or Plant is required to indemnify the road authority, and the Employer will not be liable for any costs or charges. In other cases, the Employer shall negotiate the settlement and pay any such claims, provided, if Engineer, found, the Contractor failed to comply with the sub clause 30.1 then the amount should be recovered from the Contractor by the Employer.

  19. 30.4 WATERBORNE TRAFFIC If at all the nature of the Works is such that it required waterborne transport then the earlier provisions stated within this clause shall be interpreted as though “road” included dock, sea wall or other structure related to a waterway and “vehicle” includes craft, ad shall have effect accordingly. 31.1 OPPORTUNITIES FOR OTHER CONTRACTORS The Contractor in conformity with the requirement of the Engineer, afford all reasonable opportunities for carrying out their work to: any other Contractor appointed by Employer to carry such work not included in the contract. 31.2 FACILITIES FOR OTHER CONTRACTOR Facilities for other Contractors on request from engineer, the contractor shall permit the use of road maintained by him along with Contractor’s equipment or temporary works and any other service. The Engineer shall determine any addition to contract price due to above provision. 32.1 CONTRACTOR TO KEEP THE SITE CLEAR During the execution of the works the contractor shall keep the site reasonally free from from unnecessary obstruction and remove surplus equipment, material, or temporary works no longer required. 33.1 CLEARANCE OF SITE ON COMPLETION Upon the issue of Taking Over Certificate, the Contractor shall clear away all Contractor’s Equipment, Surplus material, rubbish and Temporary Works. Unless such materials, like Contractor’s Equipment and Temporary Works, would be required by the Contractor to fulfill his obligations during Defects Notification period should be left on the site.

  20. LABOUR 34.1 ENGAGEMENT OF STAFF AND LABOUR It may become necessary to add a number of subs-clauses, to take account of the circumstances and locality of the works, which covers matters such as: Permits and registration of expatriate employees; repatriation to place of recruitment; provision of temporary housing for employees; requirements in respect of accommodation for staff of employer and engineer; standards of accommodation to be provided; provision of access roads, hospital, school, power, water drainage, fire services, refuse collection, communal buildings, shops, telephones, conditins of working, rates of pay, compliance with labour legislation, maintenance of records of safety and health under part II of particular conditions of cotnract. The contractor has to make his own arrangements for engagement of all staff and labour. The labour can be local or other. The contractor has to take care for their payment, housing, feeding and transport. 35.1 RETURNS OF LABOUR AND CONTRACTOR EQUIPMENT If the engineer requires, the contractor shall deliver a return showing in details the staff and number of labour of each class employed time to time by the contractor on the site. The contractor shall also provide all such information of contractor’s equipments if required by the engineer. MATERIALS, PLANT AND WORKMANSHIP 36.1 QUALITY OF MATERIALS, PLANT AND WORKMANSHIP All material, plant and workmanship shall be as described in the contract and according to the engineers instructions. The tests may be carried out at the place of manufacture, fabrication or preparation or on the site as required by the engineer. The contractor shall supply samples of materials, before incorporation of works for testing as may be required by engineer. 36.2 COST OF SAMPLES All samples shall be supplied by the contractor at his own cost if provided in the contract.

  21. 36.3 COSTS OF TESTS - The cost of making any test shall be borne by the contractor if such test is: - Clearly mentioned or provided in the contract. 36.4 COST OF TESTS NOT PROVIDED FOR If any tests required by the engineer which is : Not so intended or provided for in the contract is required by engineer to be carried out at any place other than the site or place of manufacture, fabrication or preparation. Shows the materials, plant, or workmanship not in accordance with the provisions of the contract then the cost of such tests shall be borne by the contractor. 36.5 ENGINEER’S DETERMINATION WHERE TESTS NOT PROVIDED FOR This sub-clause applies where pursuant the sub-clause 36.4 the engineer shall after due consultation with the employer and the contractor, determine; Any extension of time to which the contractor is entitled and the amount of such costs, which shall be added to the contract price. 37.1 INSPECTION OF OPERATIONS The engineer and any authorized person by him, shall at all times have access to the site and to all workshops and places where materials or plant are being manufactured, fabricated or prepared for the works and the contractor shall afford facility for and every assistance in obtaining the right to such access.

  22. 37.2 INSPECTIONS AND TESTING The engineer shall be entitled, during manufacture fabrication or preparation to inspect and test the materials and planned to supply under the contract. Such inspection shall not release the contractor from any obligation under the contract. 37.3 DATES FOR INSPECTION AND TESTING The engineer shall give the contractor not less than 24 hours notice of his intention to carry out the inspection or test. If the engineer or his authorized representative does not attend on the date agreed, the contractor shall proceed with the test which the contractor shall forward to the engineer duly certified copies of the test readings. 37.4 REJECTION If at the time and place agreed the engineer determines that the materials or plant are defective, he may reject the materials or plant and shall notify the contractor immediately. If the engineer so request the test of rejected materials shall be repeated under same conditions. All cost incurred for the repetition to be determined by the engineer and shall be recoverable from the contractor. 37.5 INDEPENDENT INSPECTION The engineer may delegate inspection and testing of materials to an independent inspector. Any such delegation shall be affected in accordance with sub clause 2.4

  23. 38.1 EXAMINATION OF WORK BEFORE COVERING UP The contractor shall afford the opportunity for the engineer to examine and measure the work which is about to be covered up or put out of view and to examine foundations before any part of the work is placed. 38.2 UNCOVERING AND MAKING OPENINGS The contractor shall uncover any part of work or make openings as the engineer may instruct and shall make good such part. If any such part has been covered up or put out of view after compliance and is found to be executed in accordance with the contract, the engineer after consultation of employer and contractor determine the amount of contractor’s cost of such uncovering, reinstating and making good the same, shall be added to the contract price. 39.1 REMOVAL OF IMPROPER WORK, MATERIALS OR PLANT The engineer shall have authority to issue instructions from time to time. - Removal from the site, of any material or plant which are not in accordance with the contract. - Substitution of proper and suitable materials or plant - Removal and proper re-execution, not with standing any previous test, - Design by he contractor or for which he is responsible is not in accordance with the contract. 39.2 DEFAULT ON THE CONTRACTOR IN COMPLIANCE In case of default on the part of contractor the employer, shall be entitled to employ and pay other person to carry out the same and all cost be determined by the engineer and shall be recoverable from the contractor by employer.

  24. 40.1 SUSPENSION OF WORK The contractor shall, on the instructions of the engineer suspend the progress of work. During such suspension he must protect and secure the work. Unless such suspension is; - Provided for in the contract - Necessary in case of breach or default by the contractor. - Necessary because of poor climatic conditions. - Necessary for proper execution of work. 40.2 ENGINEERS DETERMINATION FOLLOWING SUSPENSION OF WORK The engineer shall after consulting the contractor and the employer determine, - Any extension of time - The amount to be added to the contract price, due to suspension. 40.3 SUSPENSION OF WORK FOR MORE THAN 84 DAYS If the progress of the work is suspended for more than 84 days then the contractor can give a notice for resumption of work within 28 days of receipt of order. If permission for resumption is not given within the said period then the contractor can consider it as termination of contract. COMMENCEMENT AND DEALYS 41.1 COMMENCEMENT OF WORKS The Contractor shall commence the works as soon as is reasonably possible after the receipt by him of a notice to this effect from the Engineer, such notice shall be issued within the time stated in the appendix to tender after the date of the letter of acceptance.

  25. 42.1 POSSESSION OF SITE AND ACCESS THERE Employer will, with the Engineer’s notice to commence the works, give to the contractor possession of so much of the site, and such access as, in accordance with the Contract, is to be provided by the Employer, in accordance with the programme referred to in clause 14. 42.2 FAILURE TO GIVE POSSESSION If employer fails to give possession of site to the contractor the Engineer shall, after due consultation with the employer and the contractor, determine: - Extension of time - Additional cost to be added to contract price 42.3 RIGHTS OF WAY AND FACILITIES The contractor should bear the cost for any right of way required by him for access to the site. 43.1 TIME FOR COMPLETION The complete project or any part of the project should be completed within the time specified in the Appendix to tender in accordance to clause 48. If extension is given then the works are to e completed as per clause 44. 44.1 EXTENSION OF TIME FOR COMPLETION The contractor is entitled for extension of time, if - Amount of extra work is to be done - Adverse climatic conditions, - Delay due to hurdles created by employer - Any special circumstance other than breach by the contractor.

  26. 44.2 CONTRACTOR TO PROVIDE NOTIFICATION AND DETAILED PARTICULARS. The engineer is not bound to make decision regarding the extension if the contractor has not notified the engineer within 28 days after such situation has aroused. 44.3 INTERIM DETERMINATION OF EXTENSION If it is impracticable for contractor to provide details of delay within 28 days, the extension shall still be granted, if contractor can provide interim details. But the full details of event need to be provided within 28 days of the end of the effects resulting from events. 45.1 RESTRICTION ON WORKING HOURS If not specifically mentioned in the contract then no work should be carried out in the night or on local days of rest. If absolutely necessary and unavoidable the work at night can be allowed if the contractor takes prior permission from the engineer. 46.1 RATE OF PROGRESS If for any reason the rate of progress is delayed and the contractor is not entitled for an extension the engineer should advise the contractor to expedite his work so as to complete the project in time. The contractor shall take steps to expedite his work after consulting the engineer. The contractor is not entitled for payment of any extra cost incurred. If any overtime work is carried out to catch with the progress of work. The extra supervision cost of employer/engineer shall be deductible from the contractor’s monies.

  27. 47.1 LIQUIDATED DAMAGES FOR DELAY If the contractor fails to complete the project within stipulated time then he shall pay the employer relevant sum as mentioned in the appendix to tender as liquidated damages and not as penalty. The employer is free to deduct this amount from the payment of the contractor. Still this does not relieve the contractor from his obligations as mentioned in the contract to complete the works. 47.2 REDUCTION OF LIQUIDATED DAMAGES if the taking over certificate is issued for any part of work before the completion of the work then the amount payable as liquidated damages shall be reduced to that extent. 48.1 TAKING OVER CERTIFICATE’ When major part of the project has been substantially completed and passed the test of completion then the contractor can send a notice to the engineer, stating that all outstanding works will be completed in the defect liability period with due expedition. 48.2 TAKING OVER OF PARTS In accordance with the procedure of clause 48.1 the engineer shall issue on request of the contractor a taking over certificate in respect of - Any section for which a separate time of completion is mentioned in the original contract.

  28. 48.3 SUBSTANTIAL COMPLETION OF PARTS If any part of the project has been substantially completed than the engineer has the authority to issue taking over certificate on receipt of such notice the contractor is liable to complete any outstanding work within the defect liability period. 48.4 SURFACES REQUIRING REINSTATEMENT Unless specially mentioned any taking over certificate should not be considered as certification for completion of any ground or surfaces requiring reinstatement. DEFECT LIABILITY 49.1 DEFECT LIABILITY PERIOD Defect liability period means period so named in he Appendix calculated from. - The date of substantial completion of work as certified by the engineer as per clause 48 or from respective part completion dates. 49.2 COMPLETION OF OUTSTANDING WORKS AND REMEDYING DEFECTS Contractor shall complete the work if any outstanding on the date stated in the taking over certificate as soon as practicable after such date. - Execute all such work of amendment reconstruction and remedying defects as the engineer may during the defect liability period or within 14 days after expiration of such period.

  29. 49.3 COST OF REMEDYING DEFECTS All work referred to in clause 49.2 (b) shall be executed by the contractor at his own cost unless remedy work is due to any other cause, for which Engineer will determine addition to Contract price. 49.4 CONTRACTORS FAILURE TO CARRY OUR INSTRUCTIONS If there is any default on the part of the contractor in carrying out the work of remedy within reasonable time the employer shall be entitled to employ and pay other person whom he thinks suitable to carry out the same work. All the cost incurred for doing the work by the other person will deducted from the contractor’s bills. 50.1 CONTRACTOR TO SEARCH If any defects or fault appears in the work done by the contractor before the completion of the defect liability period the engineer may instruct the contractor to find out the cause of such a defect. The cost of such a search be added to the contract price only if the contractor is not liable for the defect caused.

  30. 51.1 VARIATIONS: If the Engineer feels the necessity to make any variations of the form, quality or quantity of the Works he has the authority to instruct the Contractor to do so 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 (but not if the omitted work is to be carried out by the Employer or by another contractor). 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. e) Execute additional work of any kind necessary for the completion of the works. f) Change sequence or timing of construction. 51.2 INSTRUCTIONS FOR VARIATIONS: The Contractor is not supposed to make any variation without an instruction of the Engineer. No instructions are required if work execution results into increase/decrease of quantities than those stated in the Bill of quantities. 52.1 VALUATION OF VARIATIONS All variations and any additions to the Contract Price shall be as per the rates and price of variations present in the Contract. If the Contract does not contain any rates or prices applicable to varied work, the rates and prices of the Contract shall be used as the basis for valuation. In the event of disagreement the Engineer shall notify the Contractor with a copy to the Employer. Till the time the rates are agreed or fixed, the Engineer shall determine provisional rates or prices to enable on-account payments to be included in certificates issued in accordance with Clause 60.

  31. 52.2 POWER OF ENGINEER TO FIX RATES The Engineer shall determine the rate for varied work if existing rates in the contract are inappropriate, in consultation with Employer and Contractor. If agreement is not reached on the rates, the engineer shall fix provisional rates which are appropriate in his opinion, to enable on account payment for payment certificates issued under clause 60, untill such time as rates or prices are agreed, provided Contractor or engineer has given notice of 14 days to each other about their intention to seek varied rates. 52.3 VARIATIONS EXCEEDING 15 PERCENT If, on the issue of the Taking-Over Certificate for the Whole of the Works, it is found that as a result of: a) all varied work valued under Sub-Clause 52.1 and 52.2 and b) all adjustments upon measurement of the estimated quantities set out in the Bill Of Quantities, excluding Provisional Sums, day works and adjustments of price made under Clause 70 that the contract price has varied in excess of 15% then Engineer will decide increase/decrease to contract price having regards to Contractor’s site and general overhead cost. This change if any shall be related to 15% excess level over contract price. 52.4 DAY WORK The Engineer if he feels that it is necessary, can issue a instruction that any varied work shall be executed on a day work basis according to the term’s and conditions provided in the day work schedule.

  32. 53.1 NOTICE OF CLAIMS If the Contractor want to raise any additional claim for payment pursuant to any provision of Contract, he shall give a notice of his intentions to the Engineers with a copy of the Employer within 28 days after the event giving rise to the claim. 53.2 CONTEMPORARY RECORDS If any event happens and the Contractor wants to claim for additional payments for such events he shall keep contemporary records without necessarily admitting the Employer’s liability. 53.3 SUBSTANTIATION OF CLAIMS Within 28 days or such other reasonable time under Sub-Clause 53.1, the Contractor shall send to the Engineer an account giving details of the amount claimed and the grounds upon which the claim is based. In case the event giving rise to the claims has a continuing effect, within 28 days of the end of the effect of the event, the Contractor shall send a final account to the Engineer. 53.4 FAILURE TO COMPLY If the Contractor cannot fulfill any of the provisions of this Clause in respect to any claims which he desires to make, his entitlement to payment shall not exceed such amount as the Engineer or any arbitrators appointed under sub-Clause 67.3 and assessing the claims considers to be verified by contemporary records.

  33. 53.5 PAYMENT OF CLAIMS The Contractor shall be entitled to have included in any interim payment certified by the Engineer pursuant to Clause 60 such amount in respect of any claim as the Engineer, may consider due to the Contractor provided that the Contractor has supplied sufficient particulars to enable the Engineer to determine the amount due. If the particulars are insufficient to substantiate the whole of the claim then the Contractor shall be paid only for that part of the claim for which the particulars may substantiate to the satisfaction of the Engineer. 54.1 CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS All the Contractor’s Equipment, Temporary works and Materials provided by the Contractor when once brought on to the Site, should be used exclusively for the execution of works and the Contractor shall not remove the same without the consent of the Engineer. 54.2 EMPLOYER NOT LIABLE FOR DAMAGE The Employer shall not at any time be liable, save as mentioned in Clauses 20 and 65, for the loss of or damage to any of the said Contractor’s Equipment, Temporary Works or Materials. 54.3 CUSTOMS CLEARANCE The Employer will try his level best in helping the Contractor in obtaining clearance through the Custom’s of Contractor’s Equipment, materials and other things required for the Works.

  34. 54.4 RE-EXPORT OF CONTRACTOR’S EQUIPMENT If the Contractor has imported any Equipment for the purposes of the Works, the Employer will use his best endeavors to assist the Contractor in seeking Government consent to re-export. 54.5 CONDITIONS OF HIRE OF CONTRACTOR’S EQUIPMENT In case of termination of contract, the employer is free to use Contractor’s equipment at site by paying hire-charges and requesting for this within seven days of termination. 54.6 COSTS FOR THE PURPOSE OF CLAUSE 63 In the event of the Employer entering into any agreement for the hire of Contractor’s Equipment pursuant to Sub-Clause 54.5, all sums properly paid by the Employer and all costs incurred by him shall be deemed, for the purpose of Clause 63, to be part of the cost of executing and completing the Works and the remedying of any defects therein. 54.7 INCORPORATION OF CLAUSE IN SUB-CONTRACTS The Contractor while entering the execution of any part of the works shall keep the provisions of this clause in relation to Contractor’s Equipment, Temporary Works or Materials brought on to the Site by the Sub-Contractor also. 54.8 APPROVAL OF MATERIALS NOT IMPLIED The operation of this Clause shall not be deemed to imply any approval by the engineer of the material or other matters referred. Engineer is also free to reject at any time.

  35. 55.1 QUANTITIES The quantities provided in the Bill of Quantities are the estimated quantities of work and are not the actual or correct quantities which a Contractor is supposed to do under a contract. 56.1 WORKS TO BE MEASURED The Engineer shall measure the value of the works done in accordance with the contract and the Contractor shall be paid in accordance to Clause 60. For Permanent Works which are measured by records and drawings, the Engineer shall prepare the measurement and the Contractor when called upon in writing to examine and agree them shall do so within 14 days and sign them. If the Contractor does not sign them they are deemed correct. If the contractor after examination finds them incorrect he shall within 14 days of such examination sent a notice of his dis-agreement with the Engineer who shall review the records and drawings and either confirm or vary them. 57.1 METHOD OF MEASUREMENT The works shall be measured net, not withstanding any general or local custom, except where otherwise provided for in the contract. 57.2 BREAKDOWN OF LUMP SUM ITEMS Wihtin 28 days after the receipt of the Letter Of Acceptance, the Contractor shall submit in accordance with clause 60.1 a breakdown for each of the lump sum items which are contained in the tender. Such breakdowns shall be subject to approval of Engineer.

  36. 58.1 DEFINITION OF “PROVISIONAL SUM” “Provisional Sum” means a sum (if any) which is specified in the contract as a provisional sum. Provisional Sum shall only be used in whole or in part, in accordance with the Engineers instructions and the Contract Price shall be adjusted accordingly. 58.2 USE OF PROVISIONAL SUMS The engineer shall have authority to issue instruction for the execution of work or for supply of goods or services under provisional sum. 58.3 PRODUCTION OF VOCHERS The Contractor shall, when required by the Engineer, produce quotations, invoices, vouchers and accounts or receipts in connection with the expenditure made under the Provisional Sums, except where work is valued in accordance with the rates or prices set out in the Tender. 59.1 DEFINITION OF NOMINATED SUBCONTRACTOR All specialist, merchants, tradesmen’s supplying any goods, material, plant or services for which provisional sums are included in the contract, and all persons to whom by value of the provisions of the contract the contractor is required to subcontract shall, in the execution of such work be deemed to be subcontractors to the contractor and are referred to in the contract as “Nominated Subcontractors”. 59.2 NOMINATED SUBCONTRACTORS; OBJECTION TO NOMINATION The Contractor shall not be required by Employer or Engineer to be under any obligation to employ any nominated subcontractor against whom contractor may raise reasonable objection or who

  37. declines to enter into sub contract with contractor containing provision. a) The nominated sub contractor will undertake towards the contractor obligation and liabilities towards the Employer arising out of any failure to perform such obligations. b) The nominated subcontractor will save harmless and indemnity the contractor from and against any negligence by nominated subcontractor, his men and from any mistake by him. 59.3 DESIGN REQUIREMENTS TO BE EXPRESSLY STATED If in the connection with any provisional sum the service to be provided in to any mater of design or specification, such requirement shall be expressly stated in the contract and shall be included in any nominated sub contract. The nominated subcontract shall specify that the nominated subcontractor providing such services will save harmless and indemnity the contractor. 59.4 PAYMENT TO NOMINATED SUBCONTRACTORS For all works, goods or services supplied by any nominated subcontractor, contractor shall be entitled to a) The actual price paid as per the instruction of Engineer and according to the Subcontract. b) In case of labour supplied by contractor. c) In respect of all charges and profit of all sum of price is to be calculated. Where provision has been made in the bill of quantities for rate to be set against the relevant provisional sum at rate inserted by the contractor.

  38. 59.5 CERTIFICATION OF PAYMENT TO NOMINATED SUBCONTRACTOR Any certificate which includes any payment in respect of nominated subcontractor, the Engineer shall be entitled to demand from the contractor reasonable proof that all payments, less retentions have been made to nominated sub contractor. a) Satisfies the Engineer in writing that he has reasonable cause for with-holding or refusing to make such payment. b) Contractor to produces the Engineer reasonable proof that he has so informed the nominated subcontractor in the writing about reasons for with-holding. The Employer shall be entitled to pay to such nominated subcontractor direct as per the certificate of the Engineer, all payments, less retention provided for in nominated sub contract if contractor has failed to make payment to nominated sub-contractor and deduct the same by way of set off the amount from any sums due to contractor. 60.1 MONTHLY STATEMENTS The contractor shall submit to the Engineer after the end of each month six copies of statements showing the amounts to which the contractor considers himself to be entitled up to the end of the month in respect of: a) The value of the permanent work. b) Any other item in the Bill of Quantities including those for contractor’s equipment. c) And plant delivery by the contractor on the sire for incorporation in the permanent works but not incorporated in such works. d) Adjustment under the clause 70. e) Any other sum to which the contractor may be entitled under the contract.

  39. 60.2 MONTHLY PAYMENTS The Engineer shall, within 28 days of receiving such statement, deliver to the employer an interim payment certificate stating the amount of payment due to the contractor subject. a) Firstly to retention of the amount calculated by applying the percentage of retention stated in the appendix to tender until the amount so retained reaches the limit or retention money stated in the appendix to Tender. b) Secondly to the deduction other than pursuant to clause 47 of any sums which may have become due and payable by the contractor to the Employer. Provided that the engineer shall not be bound to certify any payment in the net amount thereof, after the retention and deduction, would be less than the minimum Amount of interim payment certificate stated in the appendix to tender. 60.3 PAYMENT OF RETENTION MONEY a) Upon the issue of the taking-Over Certificate with respect to the whole of the works, one half of the retention money, shall be certified by the Engineer for payment to the Contractor. b) Upon the expiration of the Defect Liability Period for the work other half of the Retention Money shall be certified by the Engineer for payment to the contractor. The expression “expiration of the Defect Liability Period” shall for the purpose of the clause, be deemed to mean the expiration of the latest of such periods provided also that if at such time there shall remain to be executed by the contractor any work instructed, pursuant to clause 49 and 50 in respect of the works the Engineer shall be entitled to withhold certification until completion of such work.

  40. 60.4 CORRECTION OF CERTIFICATES The Engineer May in any interin Payment Certificate carryout any correction or modification in any previous Interim Payment Certificate. 60.5 STATEMENT AT COMPLETION Not later than 84 days after the issue of the Taking-Over Certificate in respect of the whole of the works, the contractor shall submit to the Engineer six copies of Statement of completion showing in detail, a) The final value of all work done b) Any further sums which the contractor considerers to be due and c) An estimate of amount which contractor considers will become due. The engineer shall certify payment in accordance with sub-clause 60.2. 60.6 FINAL STATEMENT Not later than 56 days after the issue of Defect Liability Certificate the contractor shall submit to the Engineer for six copies of draft final statement showing in detail. a) The value of all the work done in accordance with the contract b) Any further sum which contractor consider to be due to him. If the Engineer disagree or cannot verify any part of draft final statement, contractor shall submit any further information required. The Engineer shall deliver to the Employer an Interim Payment Certificate for those part of the draft final statement, which are not in dispute. The dispute may be settled in accordance with clause 67.

  41. 60.7 DISCHARGE Upon submission of final statement, the contractor shall give to the Employer, written discharge confirming that the total of the final statement represent full and final settlement of all monies due to the contractor. Provided that such discharge become effective only after payment due under the final payment certificate has been paid to the contractor and the performance security is returned. 60.8 FINAL PAYMENT CERTIFICATE Within 28 days after receipt of final statement, and written discharge the Engineer shall issue a final payment certificate stating: a) The amount which is finally due under the contract . b) After giving credit to Employer for all amount previously paid other than under clause 47 and all sums to which Employer is entitled under the contract. 60.9 CESSATION OF EMPLOYER’S LIABILITY The employer shall not be liable to the contractor connection with the contract or execution of the work unless the contractor shall have included a claim in respect thereof in his final statement. 60.10 TIME OF PAYMENT i. The amount due to the Contractor under any interim Certificate issued by the Engineer be paid by Employer to the contractor within 56 days. ii. Final payment Certificate within 56 days after such Final Payment Certificate has been delivered to the Employer. In the event of the failure of employer to make the payment within the time stated the Employer shall pay contractor interest at the rate stated in appendix to tender.

  42. 61.1 APPROVAL ONLY BY DEFECTS LIABILITY CERTIFICAE Only the Defects Liability Certificate, referred to clause 62 shall be deemed to constitute approval of the works. 62.1 DEFECT LIABILITY CERTIFICATE The Defects Liability Certificate shall given by the Engineer within 28 days after the expiration of the Defects liability period or if different defect liability periods shall become applicable for different section or part of the works, the expiration of latest such period. 62.2 UNFULFILLED OBLIGATIONS Notwithstanding the issue of defects Liability Certificate the contractor and the Employer shall be remain liable for fulfillment of any obligation which remain unperformed. 63.1 DEFAULT OF CONTRACTOR If in the opinion of Engineer, the contractor a) has repudiated the Contract, or b) without reasonable excuse has failed to commence the work accordance with sub-clause 41.1 c) has failed to comply with notice under sub clause 37.4. d) despite previous warning from the Engineer, neglecting to comply with any of his obligations under the Contract then the Employer may, after giving notice 14 day’s notice to the Contractor, terminate the Employment of the Contractor, then remaining work may be completed by Employer himself or may employ any other Contractor to complete of work. The Employer or such contractor may use Contractors Equipment, Temporary Work and materials as he or they may think proper.

  43. 63.2 VALUATION AT DATE OF TERMINATION As soon as after any such termination by Employer, engineer may fix ex-parte or by reference to parties and shall certify, a) what amount is due at the time of termination in respect of the work done by Contractor. b) value of any of the said unused or partially used materials and any of Contractor’s Equipment and Temporary Work retained. 63.3 PAYMENT AFTER TERMINATION Client shall not be liable to pay any further amount in respect contract until expiration of defects liability period and thereafter until cost of remedying of defects, damages for delays is ascertained. 63.4 ASSIGNMENT OF BENEFIT OF AGREEMENT Unless prohibited by law, the Contractor shall, if so instructed by engineer within 14 days of such termination. Assign to the Employer the benefit of any agreement for the supply of any goods, materials, or services and / or execution of any work for the purpose of the Contract, which the Contractor may have entered in to with any other sub-contractor. 64.1 URGENT REMEDIAL WORK If during execution of the work or during the defect liability period, any accident or failure or any other emergency arise in relation to the work in opinion of the Engineer, urgently necessary for safety of the work and Contractor shows un-willingness to do so. Employer shall be entitled to employ and pay other persons to carry out such work.

  44. If the work or repair so done by the Employer, in opinion of the Engineer was liable to be done by contractor then client may deduct the cost of such repair from the remaining payment of the Contractor. 65.1 NO LIABILITY FOR SPECIAL RISKS The Contractor shall be under no liability whatsoever in consequence of any of the special risks referred to in Sub –Clause 65.2 65.2 SPECIAL RISKS The special risk are: a) the risk defined under paragraphs (a), (c),(d) and (e) of Sub-Clause 20.4 b) The risk defined under paragraph (b) of Sub-Clause 20.4, insofar as these relate to the country in which the works are to be executed. 65.3 DAMAGE TO WORKS BY SPECIAL RISKS If any loss or damage happens to the works, goods or Contractors equipment due to special risks, then the Contractor shall be entitled to payment for rectifying any damage to the works and replacing/ rectifying such materials or Contractor’s Equipment. 65.4 PROJECTILE MISSILE Destruction, damage, loss of the life caused by the explosion or impact, occurring due to shell, bomb, mine, grenade or other projectile, missiles or explosive of war, shall be deemed to be a consequence of the said special risk.

  45. 65.5 INCREASED COST ARISING FROM SPECIAL RISKS If damage to work arises due to out break of war, then client shall pay to Contractor the cost of damage but the contractor is required to bring to the notice of engineer such events of special risk. 65.6 OUTBREAK OF WAR If, during the currency for the contract, there is an out break of war, or any part of the world which financially or materially affects the execution of the works, Employer can terminate contract under such situation by giving notice to the Contractor. 65.7 REMOVAL OF CONTRACTOR’S EQUIPMENTS ON TERMIANTION If the Contract is terminated under the provisions of Sub-Clause 65.6, the Contractor shall, with all reasonable dispatch, remove from the site all Contractor’s and sub contractors Equipment. 65.8 PAYMENT IF CONTRACT TERMIANTED If the contract is terminated, the contractor shall be paid by the Employer at the rates and prices provided in the contract and in addition. a) The amount payable in respect of any preliminary items referred to in the bill of quantities. b) The cost of good which already ordered by the contractor for execution of work which have been delivered to contractor or of which the contractor is legally liable to accept delivery, (such materials, plant or goods becoming properly of Employer upon such payment is made by him.) c) It also include expenditure incurred for the Contractor in expectation of completing the work. d) Any additional sum payable under the provision of Sub-Clauses 65.3 and 65.5 e) Some cost of removal of contractors Equipments. f) The reasonable cost of repatriation of all the Contractor’s staff and workmen employed on or in connection with work at the time of such Termination.

  46. 66.1 PAYMENT IN EVENT OF RELEASE FROM PERFORMANCE If it becomes impossible or unlawful for any or both parties to meet the obligations of the contract then the parties are released from the contract. In such case contractor is entitled to payment under clause 65 of termination. 67.1 ENGINEER’S DECISION In case of a dispute between the client and the contractor, the dispute is first notified to the engineer in writing. Engineer to settle the dispute within 84 days. If any of the parties disagrees with the decision of the engineer they have to notify the other party within 70 days of the decision of the engineer otherwise, such decision becomes final. 67.2 AMICABLE SETTLEMENT Before going for arbitration both parties should try to amicably settle the dispute between them within a period of 56 days from the date of the decision by the engineer. Or if both parties agree on arbitration They can proceed for it earlier than 56 days also. 67.3 ARBITRATION If Engineer's decision on dispute has not become binding and amicable settlement has not been reached then the dispute shall be settled unless otherwise specified by the contract, under the rules of conciliation and Arbitration of the International chamber of commerce. Arbitration may be commenced prior to or after completion of the works without changing obligations of all parties to dispute.

  47. 67.4 FAILURE TO COMPLY WITH ENGINEERS DECISION When neither party has sought arbitration on the disputed matter, but is not complying with Engineer’s decision, such failure can be referred to arbitration. 68.1 NOTICES TO CONTRACTOR Notice shall be sent through post, telex, cabel, or facsimile transmission or left at contractor’s principle place of business or address given by the contractor. 68.2 NOTICES TO EMPLOYER AND ENGINEER Notice shall be sent through post, telex, cabel, or facsimile transmission or left at principle place of business or address given by the Employer. 68.3 CHANGE OF ADDRESS Change of address may be carried with prior notice to the other party. 69.1 DEFAULT OF EMPLOYER a) Failing to pay amount under any certificate by the engineer within 28 days of certification. b) Interfering, obstructing or refusing any such certificate. c) If the employer is becoming bankrupt. In all the above conditions contractor can terminate the employment after 14 days of giving notice. d) Notifying that due to unforeseen reasons the employer cannot pay.

  48. 69.2 REMOVAL CONTRACTORS EQUIPMENTS After the notice period of 14 days is over contractor can remove his equipments from the site. 69.3 PAYMENT ON TERMINATION Employer is obliged to release payment of work already executed at the site like provisions under clause 65 and also the compensation for the contractors loss or damage arising out of such termination. 69.4 CONTRACTORS ENTITLEMENT TO SUSPEND WORK If Employer fails to pay contractor amount due under certificate issued by engineer within 28 days as per sub –clause 60.10, then by giving 28 days prior notice suspend work or reduce the rate of work. The Engineer after due consultation decide the time extension and the cost incurred which shall be added to the contract price, when work is restarted. 69.5 RESUMPTION OF WORK When the employer subsequently pays the contractor including interest he should resume the work as soon as possible. 70.1 INCREASE OR DECREASE OF COST There shall be increase/decrease in contract price based on rise and fall in cost of labour and material as provided in the part II of these conditions.

  49. 70.2 SUBSEQUENT LEGISTATION In case after 28 days prior to the latest date for submission of tenders for the contract, there occurs in the country where the works are being carried out, any change in the National or State Statute, Ordinance, Decree or other law or any regulation of any local or other duly constituted authority which causes additional or reduced cost to the Contractor. Any such additional or reduced cost shall be determined by the Engineer shall be added to or deducted from the actual contract price. 71.1 CURRENCY RESTRICTIONS If after the date 28 days prior to the latest date for submission of tenders for contract, either the Government or any authorized agency imposes restriction on the currency and or restrictions on the transfer of currency. The Employer shall refund or repay any loss or damage to the Contractor arising out of this. 71.2 RATES OF EXCHANGE When the provisions of the contract are such that the payment may be made in whole or in part to the contractor in foreign currency or currencies, this payment shall not be subject to the variations in the rate or rate of exchanges. 72.2 CURRENCY PROPORTIONS Where the Employer has required that the tender should be expressed in a single currency but with a provision for payment to be made in more than one currency shall unless otherwise be stated in Part II of these conditions, be the prevailing rates as determined by the Central Bank of the country in which the works are to be executed, as on the date 28 days prior of the latest date for submission of tenders. 72.3 CURRENCIES OF PAYMENT FOR PROVISION SUM Where the contract has such a provision that the payment may be made in more that one currency, sums shall be determined as per the principles set forth in the Sub-Clauses 72.1 and 72.2.

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