Public Enterprise - Roads of Serbia Consultancy Services to Novi Sad to Belgrade Motorway Supplementary Training Programme Training Module

! " #n $ntroduction to t%e Preparation& Tendering and #ward of Construction Contracts 'nit ( " )ey *eatures of t%e *$+$C !,,, -Red Boo./

Extracts from the FIDIC 1999 General Conditions of Contract for CONSTRUCTION
FOR BUILDING AND ENGINEERING WORKS DESIGNED BY T E E!"LOYER

1. General Provisions
1.1.1 The Contract #$#$#$# Contract %eans t&e Contract A'ree%ent( t&e Letter of Acce)tance( t&e Letter of Tender( t&ese Conditions( t&e S)ecification( t&e Dra*in's( t&e Sc&ed+les( and t&e f+rt&er doc+%ents ,if an-. *&ic& are listed in t&e Contract A'ree%ent or in t&e Letter of Acce)tance$ Drawings %eans t&e dra*in's of t&e Wor0s( as incl+ded in t&e Contract( and an- additional and %odified dra*in's iss+ed 1- ,or on 1e&alf of. t&e E%)lo-er in accordance *it& t&e Contract$ che!"les %eans t&e doc+%ent,s. entitled sc&ed+les( co%)leted 1t&e Contractor and s+1%itted *it& t&e Letter of Tender( as incl+ded in t&e Contract$ S+c& doc+%ent %a- incl+de t&e Bill of 3+antities( data( lists( and sc&ed+les of rates and 4or )rices$ Ten!er %eans t&e Letter of Tender and all ot&er doc+%ents *&ic& t&e Contractor s+1%itted *it& t&e Letter of Tender( as incl+ded in t&e Contract$ #$$en!ix to Ten!er %eans t&e co%)leted )a'es entitled a))endi7 to tender *&ic& are a))ended to and for% )art of t&e Letter of Tender$ D#% %eans t&e )erson or t&ree )ersons so na%ed in t&e Contract( or ot&er )erson,s. a))ointed +nder S+19Cla+se 8:$8 [Appointment of the Dispute Adjudication Board] or +nder S+19Cla+se 8:$; [Failure to Agree Dispute Adjudication Board] %ase Date %eans t&e date 85 da-s )rior to t&e latest date for s+1%ission of t&e Tender$ Commencement Date %eans t&e date notified +nder S+19Cla+se 5$# [Commencement of Works]. Defects (otification Perio! %eans t&e )eriod for notif-in' defects in t&e Wor0s or a Section ,as t&e case %a- 1e. +nder S+19Cla+se ##$# [Completion of Outstanding Work and Remed ing Defects]! as stated in t&e A))endi7 to Tender ,*it& an- e7tension +nder S+19Cla+se ##$; ["#tension of Defects $otification %eriod] .( calc+lated fro% t&e date on *&ic& t&e *or0s or Section is co%)leted as certified +nder S+19Cla+se #:$# [&aking O'er of the Works and (ections].

#$#$#$/

#$#$#$2

#$#$#$5

#$#$#$6

#$#$8$6

1.1.& Dates' Tests' Perio!s an! Com$letion

#$#$;$# #$#$;$8

#$#$;$2

Module 01 Unit 04 Key Features of the FIDIC 1999 !ed "oo#$

Page 1 of 27

#$#$;$5

Performance Certificate %eans t&e certificate iss+ed +nder S+19 Cla+se ##$ 6 [%erformance Certificate]. #cce$te! Contract #mo"nt %eans t&e a%o+nt acce)ted in t&e Letter of Acce)tance for t&e e7ec+tion and co%)letion of t&e Wor0s and t&e re%ed-in' of an- defects$ Contract Price %eans t&e )rice defined in S+19Cla+se #<$# [&he Contract %rice]! and incl+des ad=+st%ents in accordance *it& t&e Contract$ Cost %eans all e7)endit+re reasona1l- inc+rred ,or to 1e inc+rred. 1- t&e Contractor( *&et&er on or off t&e Site( incl+din' o>er&ead and si%ilar c&ar'es( 1+t does not incl+de )rofit$ Pa+ment Certificate %eans a )a-%ent certificate iss+ed +nder Cla+se #< [Contract %rice and %a ment]. tatement %eans a state%ent s+1%itted 1- t&e Contractor as )art of an a))lication( +nder Cla+se #< [Contract %rice and %a ment]! for a )a-%ent certificate$ ,nforeseea-le %eans not reasona1l- foreseea1le 1e7)erienced contractor 1- t&e date for s+1%ission of t&e Tender$ an

1.1.) *one+ an! Pa+ments

#$#$<$#

#$#$<$8

#$#$<$;

#$#$<$6

#$#$<$#8

#$#$/$5 #$#$/$6 1.& Comm"nications

.ariation %eans an- c&an'e to t&e Wor0s( *&ic& is instr+cted or a))ro>ed as a >ariation +nder Cla+se #; [)ariations and Adjustments].

W&ere>er t&ese Conditions )ro>ide for t&e 'i>in' or iss+in' of a))ro>als( certificates( consents( deter%inations( notices and re?+ests( t&ese co%%+nications s&all 1e@ ,a. in *ritin' and deli>ered 1- &and ,a'ainst recei)t.( sent 1- %ail or co+rier( or trans%itted +sin' an- of t&e a'reed s-ste%s of electronic trans%ission as stated in t&e A))endi7 to TenderA and deli>ered( sent or trans%itted to t&e address for t&e reci)ientBs co%%+nications as stated in t&e A))endi7 to Tender$ o*e>er@ ,i. ,ii. if t&e reci)ient 'i>es notice of anot&er address( co%%+nications s&all t&ereafter 1e deli>ered accordin'l-A and if t&e reci)ient &as not stated ot&er*ise *&en re?+estin' and a))ro>al or consent( it %a- 1e sent to t&e address fro% *&ic& t&e re?+est *as iss+ed$

,1.

A))ro>als( certificates( consents and deter%inations s&all not 1e +nreasona1l*it&&eld or dela-ed$ W&en a certificate is iss+ed to a "art-( t&e certifier s&all send a co)- to t&e ot&er "art-$ W&en a notice is iss+ed to a "art-( 1- t&e ot&er "art- or t&e En'ineer( a co)- s&all 1e sent to t&e En'ineer or t&e ot&er "art-( as t&e case %a- 1e$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 2 of 27

1./ Priorit+ of Doc"ments

T&e doc+%ents for%in' t&e Contract are to 1e ta0en as %+t+all- e7)lanator- of one anot&er$ For t&e )+r)oses of inter)retation( t&e )riorit- of t&e doc+%ents s&all 1e in accordance *it& t&e follo*in' se?+ence@ ,a. ,1. ,c. ,d. ,e. ,f. ,'. ,&. t&e Contract A'ree%ent ,if an-.( t&e Letter of Acce)tance( t&e Letter of Tender( t&e "artic+lar Conditions( t&ese General Conditions( t&e S)ecification( t&e Dra*in's( and t&e Sc&ed+les and an- ot&er doc+%ents for%in' )art of t&e Contract$

If an a%1i'+it- or discre)anc- is fo+nd in t&e doc+%ents( t&e En'ineer s&all iss+e an- necessar- clarification or instr+ction$

1.9 Dela+e! Drawings or Instr"ction

T&e Contractor s&all 'i>e notice to t&e En'ineer *&ene>er t&e Wor0s are li0el- to 1e dela-ed or disr+)ted if an- necessar- dra*in' or instr+ction is not iss+ed to t&e Contractor *it&in a )artic+lar ti%e( *&ic& s&all 1e reasona1le$ T&e notice s&all incl+de details of t&e necessar- dra*in' or instr+ction( details of *&- and 1- *&en it s&o+ld 1e iss+ed( and details of t&e nat+re and a%o+nt of t&e dela- or disr+)tion li0el- to 1e s+ffered if it is late$ If t&e Contractor s+ffers dela- and4or inc+rs Cost as a res+lt of a fail+re of t&e En'ineer to iss+e t&e notified dra*in' or instr+ction *it&in a ti%e *&ic& is reasona1le and is s)ecified in t&e notice *it& s+))ortin' details( t&e Contractor s&all 'i>e a f+rt&er notice to t&e En'ineer and s&all 1e entitled s+1=ect to S+19 Cla+se 8:$# [Contractor*s Claims] to@ ,a. ,1. an e7tension of ti%e for an- s+c& dela-( if co%)letion is or *ill 1e dela-ed( +nder S+19Cla+se 5$< ["#tension of &ime for Completion]! and )a-%ent of an- s+c& Cost )l+s reasona1le )rofit( *&ic& s&all 1e incl+ded in t&e Contract "rice$

After recei>in' t&is f+rt&er notice( t&e En'ineer s&all )roceed in accordance *it& S+19Cla+se ;$C [Determinations] to a'ree or deter%ine t&ese %atters$ o*e>er( if and to t&e e7tent t&at t&e En'ineerBs fail+re *as ca+sed 1- an- error or dela- 1- t&e Contractor( incl+din' an error in( or dela- in t&e s+1%ission of( an- of t&e ContractorBs Doc+%ents( t&e Contractor s&all not 1e entitled to s+c& e7tension of ti%e( Cost or )rofit$

1.1& Com$liance with 0aws

T&e Contractor s&all( in )erfor%in' t&e Contract( co%)l- *it& a))lica1le La*s$ Unless ot&er*ise stated in t&e )artic+lar Conditions@

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page % of 27

1. The Em$lo+er
1.1 2ight of #ccess to the ite T&e E%)lo-er s&all 'i>e t&e Contractor ri'&t of access to( and )ossession of( all )arts of t&e Site *it&in t&e ti%e ,or ti%es. stated in t&e A))endi7 to Tender$ T&e ri'&t and )ossession %a- not 1e e7cl+si>e to t&e Contractor$ If( +nder t&e Contract( t&e E%)lo-er is re?+ired to 'i>e ,to t&e Contractor. )ossession of anfo+ndation( str+ct+re( )lant or %eans of access( t&e E%)lo-er s&all do so in t&e ti%e and %anner stated in t&e S)ecification$ o*e>er( t&e E%)lo-er %a- *it&&old an- s+c& ri'&t or )ossession +ntil t&e "erfor%ance Sec+rit- &as 1een recei>ed$ If no s+c& ti%e is stated in t&e A))endi7 to Tender( t&e E%)lo-er s&all 'i>e t&e Contractor ri'&t of access to( and )ossession of( t&e Site *it&in s+c& ti%es as %a1e re?+ired to ena1le t&e Contractor to )roceeded in accordance *it& t&e )ro'ra%%e s+1%itted +nder S+19Cla+se 5$; [%rogramme]. If t&e Contractor s+ffers dela- and4or inc+rs Cost as a res+lt of a fail+re 1- t&e E%)lo-er to 'i>e an- s+c& ri'&t or )ossession *it&in s+c& ti%e( t&e Contractor s&all 'i>e notice to t&e En'ineer and s&all 1e entitled s+1=ect to S+19Cla+se 8:$# [Contractor*s Claims] to@ ,a. an e7tension of ti%e for an- s+c& dela-( if co%)letion is or *ill 1e dela-ed( +nder S+19Cla+se 5$< ["#tension of &ime for Completion]! and )a-%ent of an- s+c& Cost )l+s reasona1le )rofit( *&ic& s&all 1e incl+ded in t&e Contract "rice$

,1.

After recei>in' t&is notice( t&e En'ineer s&all )roceed in accordance *it& S+19 Cla+se ;$C [Determinations] to a'ree or deter%ine t&ese %atters$ o*e>er( if and to t&e e7tent t&at t&e E%)lo-erBs fail+re *as ca+sed 1- an- error or dela- 1- t&e Contractor( incl+din' an error in( or dela- in t&e s+1%ission of( anof t&e ContractorBs Doc+%ents( t&e Contractor s&all not 1e entitled to s+c& e7tension of ti%e( Cost or )rofit$

1./ Em$lo+er3s Claims

If t&e E%)lo-er considers &i%self to 1e entitled to an- )a-%ent +nder an- Cla+se of t&ese Conditions or ot&er*ise in connection *it& t&e Contract( and4or to ane7tension of t&e Defects Notification "eriod( t&e E%)lo-er or t&e En'ineer s&all 'i>e notice and )artic+lars to t&e Contractor$ o*e>er( notice is not re?+ired for )a-%ents d+e +nder S+19Cla+se <$#6 ["lectricit ! Water and +as]! +nder S+19 Cla+se <$8: ["mplo er*s ",uipment and Free-.ssue /aterial]! or for ot&er ser>ices re?+ested 1- t&e Contractor$ T&e notice s&all 1e 'i>en as soon as )ractica1le after t&e E%)lo-er 1eca%e a*are of t&e e>ent or circ+%stances 'i>in' rise to t&e clai%$ A notice relatin' to ane7tension of t&e Defects Notification "eriod s&all 1e 'i>en 1efore t&e e7)ir- of s+c& )eriod$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 4 of 27

&. The Engineer

&.1 Engineer3s D"ties an! #"thorit+ T&e E%)lo-er s&all a))oint t&e En'ineer *&o s&all carr- o+t t&e d+ties assi'ned to &i% in t&e Contract$ T&e En'ineerBs staff s&all incl+de s+ita1l- ?+alified en'ineers and ot&er )rofessional *&o are co%)etent to carr- o+t t&ese d+ties$ T&e En'ineer s&all &a>e no a+t&orit- to a%end t&e Contract$ T&e En'ineer %a- e7ercise t&e a+t&orit- attri1+ta1le to t&e En'ineer as s)ecified in or necessaril- to 1e i%)lied fro% t&e Contract$ If t&e En'ineer is re?+ired to o1tain t&e a))ro>al of t&e E%)lo-er 1efore e7ercisin' a s)ecified a+t&orit-( t&e re?+ire%ents s&all 1e as stated in t&e "artic+lar Conditions$ T&e E%)lo-er +nderta0es not to i%)ose f+rt&er constraints on t&e En'ineerBs a+t&orit-( e7ce)t as a'reed *it& t&e Contractor$ o*e>er( *&ene>er t&e En'ineer e7ercises a s)ecified a+t&orit- for *&ic& t&e E%)lo-erBs a))ro>al is re?+ired( t&en ,for t&e )+r)oses of t&e Contract. t&e E%)lo-er s&all 1e dee%ed to &a>e 'i>en a))ro>al$ &.1 Delegation -+ the Engineer T&e En'ineer %a- fro% ti%e to ti%e assi'n d+ties and dele'ate a+t&orit- to assistants( and %a- also re>o0e s+c& assi'n%ent or dele'ation$ T&ese assistants %a- incl+de a resident en'ineer( and4or inde)endent ins)ectors a))ointed to ins)ect and4or test ite%s of "lant and4or !aterials$ T&e assi'n%ent( dele'ation or re>ocation s&all 1e in *ritin' and s&all not ta0e effect +ntil co)ies &a>e 1een recei>ed 1- 1ot& "arties$ o*e>er( +nless ot&er*ise a'reed 1- 1ot& "arties( t&e En'ineer s&all not dele'ate t&e a+t&orit- to deter%ine an- %atter in accordance *it& S+19Cla+se ;$C [Determinations]. Assistants s&all 1e s+ita1l- ?+alified )ersons( *&o are co%)etent to carr- o+t t&ese d+ties and e7ercise t&is a+t&orit-( and *&o are fl+ent in t&e lan'+a'e for co%%+nications defined in S+19Cla+se #$< [0a1 and 0anguage]. &.& Instr"ctions of the Engineer T&e En'ineer %a- iss+e to t&e Contractor ,at an- ti%e. instr+ctions and additional or %odified Dra*in's *&ic& %a- 1e necessar- for t&e e7ec+tion of t&e Wor0s and t&e re%ed-in' of an- defects( all in accordance *it& t&e Contract$ T&e Contractor s&all onl- ta0e instr+ctions fro% t&e En'ineer( or fro% an assistant to *&o% t&e a))ro)riate a+t&orit- &as 1een dele'ated +nder t&is Cla+se$ If an instr+ction constit+tes a Dariation( Cla+se #; [)ariations and Adjustments] s&all a))l-$ T&e Contractor s&all co%)l- *it& t&e instr+ction 'i>en 1- t&e En'ineer or dele'ated assistant( on an- %atter related to t&e Contract$ W&ene>er )ractica1le( t&eir instr+ctions s&all 1e 'i>en in *ritin'$ &./ Determinations W&ene>er t&ese Conditions )ro>ide t&at t&e En'ineer s&all )roceed in accordance *it& t&is S+19Cla+se ;$C to a'ree or deter%ine an- %atter( t&e En'ineer s&all cons+lt *it& eac& "art- in an endea>o+r to reac& a'ree%ent$ If a'ree%ent is not ac&ie>ed( t&e En'ineer s&all %a0e a fair deter%ination in accordance *it& t&e Contract( ta0in' d+e re'ard of all rele>ant circ+%stances$ T&e En'ineer s&all 'i>e notice to 1ot& "arties of eac& a'ree%ent or deter%ination *it& s+))ortin' )artic+lars$ Eac& "art- s&all 'i>e effect to eac& a'ree%ent or deter%ination +nless and +ntil re>ised +nder Cla+se 8: [Claims! Disputes and Ar2itration].

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page & of 27

). The Contractor
).1 Contractor3s General 4-ligations T&e Contractor s&all desi'n ,to t&e e7tent s)ecified in t&e Contract.( e7ec+te and co%)lete t&e Wor0s in accordance *it& t&e Contract and *it& t&e En'ineerBs instr+ctionsA and s&all re%ed- an- defects in t&e Wor0s$ T&e Contractor s&all )ro>ide t&e "lant and ContractorBs Doc+%ents s)ecified in t&e Contract( and all ContractorBs "ersonnel( Goods( cons+%a1les and ot&er t&in's and ser>ices( *&et&er of a te%)orar- or )er%anent nat+re( re?+ired in and for t&is desi'n( e7ec+tion( co%)letion and re%ed-in' of defects$ T&e Contractor s&all 1e res)onsi1le for t&e ade?+ac-( sta1ilit- and safet- of all Site o)erations and of all %et&ods of constr+ction$

).& Contractor3s 2e$resentative

T&e Contractor s&all a))oint t&e ContractorBs Re)resentati>e and s&all 'i>e &i% all a+t&orit- necessar- to act on t&e ContractorBs 1e&alf +nder t&e Contract$ Unless t&e ContractorBs Re)resentati>e is na%ed in t&e Contract( t&e Contractor s&all( )rior to t&e Co%%ence%ent Date( s+1%it to t&e En'ineer for consent t&e na%e and )artic+lars of t&e )erson t&e Contractor )ro)oses to a))oint as ContractorBs Re)resentati>e$ If consent is *it&&eld or s+1se?+entl- re>o0ed( or if t&e a))ointed )erson fails to act as ContractorBs Re)resentati>e( t&e Contractor s&all si%ilarl- s+1%it t&e na%e and )artic+lars of anot&er s+ita1le )erson for s+c& a))oint%ent$ T&e Contractor s&all not( *it&o+t t&e )rior consent of t&e En'ineer( re>o0e t&e a))oint%ent of t&e ContractorBs Re)resentati>e or a))oint a re)lace%ent$ T&e *&ole ti%e of t&e ContractorBs Re)resentati>e s&all 1e 'i>en to direction t&e ContractorBs )erfor%ance of t&e Contract$ If t&e ContractorBs Re)resentati>e is to 1e te%)oraril- a1sent fro% t&e Site d+rin' t&e e7ec+tion of t&e Wor0s( a s+ita1le re)lace%ent )erson s&all 1e a))ointed( s+1=ect to t&e En'ineerBs )rior consent( and t&e En'ineer s&all 1e notified accordin'l-$ T&e ContractorBs Re)resentati>e s&all( on 1e&alf of t&e Contractor( recei>e instr+ctions +nder S+19Cla+se ;$; [.nstructions of the "ngineer].

).) "-contractors

T&e Contractor s&all not s+1contract t&e *&ole of t&e Wor0s$ T&e Contractor s&all 1e res)onsi1le for t&e acts or defa+lts of an- S+1contractor( &is a'ents or e%)lo-ees( as if t&e- *ere t&e acts or defa+lts or t&e Contractor$ Unless ot&er*ise stated in t&e "artic+lar Conditions@ ,a. t&e Contractor s&all not 1e re?+ired to o1tain consent to s+))liers of !aterials( or to a s+1contract for *&ic& t&e S+1contractor is na%ed in t&e ContractA t&e )rior consent of t&e En'ineer s&all 1e o1tained to ot&er )ro)osed S+1contractorsA t&e Contractor s&all 'i>e t&e En'ineer not less t&an 85 da-sB notice of t&e intended date of t&e co%%ence%ent of eac& S+1contractorBs *or0( and of t&e co%%ence%ent of s+c& *or0 on t&e SiteA and
Page ' of 27

,1. ,c.

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

,d.

eac& s+1contract s&all incl+de )ro>isions *&ic& *o+ld entitle t&e E%)lo-er to re?+ire t&e s+1contract to 1e assi'ned to t&e E%)lo-er +nder S+19Cla+se <$C [Assignment of Benefit of (u2contract] ,if or *&en a))lica1le. or in t&e e>ent of ter%ination +nder S+19Cla+se #C$8 [&ermination 2 "mplo er].

).5 etting 4"t

T&e Contractor s&all set o+t t&e Wor0s in relation to ori'inal )oints( lines and le>els of reference s)ecified in t&e Contract or notified 1- t&e En'ineer$ T&e Contractor s&all 1e res)onsi1le for t&e correct )ositionin' of all )arts of t&e Wor0s( and s&all rectif- an- error in t&e )ositions( le>els( di%ensions or ali'n%ent of t&e Wor0s$ T&e E%)lo-er s&all 1e res)onsi1le for an- errors in t&ese s)ecified or notified ite%s of reference( 1+t t&e Contractor s&all +se reasona1le efforts to >erif- t&eir acc+rac- 1efore t&e- are +sed$

).9 6"alit+ #ss"rance

T&e Contractor s&all instit+te a ?+alit- ass+rance s-ste% to de%onstrate co%)liance *it& t&e re?+ire%ents of t&e Contract$ T&e s-ste% s&all 1e in accordance *it& t&e details stated in t&e Contract$ T&e En'ineer s&all 1e entitled to a+dit an- as)ect of t&e s-ste%$ Details of all )roced+res and co%)liance doc+%ents s&all 1e s+1%itted to t&e En'ineer for infor%ation 1efore eac& desi'n and e7ec+tion sta'e is co%%enced$ W&en an- doc+%ent of a tec&nical nat+re is iss+ed to t&e En'ineer( e>idence of t&e )rior a))ro>al 1- t&e Contractor &i%self s&all 1e a))arent on t&e doc+%ent itself$ Co%)liance *it& t&e ?+alit- ass+rance s-ste% s&all not relie>e t&e Contractor of an- of &is d+ties( o1li'ations or res)onsi1ilities +nder t&e Contract$

).17 ite Data

T&e E%)lo-er s&all &a>e %ade a>aila1le to t&e Contractor for &is infor%ation( )rior to t&e Base Date( all rele>ant data in t&e E%)lo-erBs )ossession on s+19s+rface and &-drolo'ical conditions at t&e Site( incl+din' en>iron%ental as)ects$ T&e E%)lo-er s&all si%ilarl- %a0e a>aila1le to t&e Contractor all s+c& data *&ic& co%e into t&e E%)lo-erBs )ossession after t&e Base Date$ T&e Contractor s&all 1e res)onsi1le to inter)retin' all s+c& data$

).11 "fficienc+ of the #cce$te! Contract #mo"nt

T&e Contractor s&all 1e dee%ed to @ ,a. ,1. &a>e satisfied &i%self as to t&e correctness and s+fficienc- of t&e Acce)ted Contract A%o+nt( and &a>e 1ased t&e Acce)ted Contract A%o+nt on t&e data( inter)retations( necessar- infor%ation( ins)ections( e7a%inations and satisfaction as to all rele>ant %atters referred to in S+19Cla+se <$#: [(ite Data].

Unless ot&er*ise stated in t&e Contract( t&e Acce)ted Contract A%o+nt co>ers all t&e ContractorBs o1li'ations +nder t&e Contract ,incl+din' t&ose +nder "ro>isional S+%s( if an-. and all t&in's necessar- for t&e )ro)er e7ec+tion and co%)letion of t&e Wor0s and t&e re%ed-in' of an- defects$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 7 of 27

).11 ,nforeseea-le Ph+sical Con!itions

In t&is S+19Cla+se( E)&-sical conditionsF %eans nat+ral )&-sical conditions and %an9%ade and ot&er )&-sical o1str+ctions and )oll+tants( *&ic& t&e Contractor enco+nters at t&e Site *&en e7ec+tin' t&e Wor0s( incl+din' s+19s+rface and &-drolo'ical conditions 1+t e7cl+din' cli%atic conditions$ If t&e Contractor enco+nters ad>erse )&-sical conditions *&ic& &e considers to &a>e 1een Unforeseea1le( t&e Contractor s&all 'i>e notice to t&e En'ineer as soon as )ractica1le$ T&is notice s&all descri1e t&e )&-sical conditions( so t&at t&e- can 1e ins)ected 1t&e En'ineer( and s&all set o+t t&e reasons *&- t&e Contractor considers t&e% to 1e Unforeseea1le$ T&e Contractor s&all contin+e e7ec+tin' t&e Wor0s( +sin' s+c& )ro)er and reasona1le %eas+res as are a))ro)riate for t&e )&-sical conditions( and s&all co%)l- *it& an- instr+ctions *&ic& t&e En'ineer %a- 'i>e$ If an instr+ction constit+tes a Dariation( Cla+se #; [)ariations and Adjustments] s&all a))l-$ If and to t&e e7tent t&at t&e Contractor enco+nters )&-sical conditions *&ic& are Unforeseea1le( 'i>es s+c& a notice( and s+ffers dela- and4or inc+rs Cost d+e to t&ese conditions( t&e Contractor s&all 1e entitled s+1=ect to S+19Cla+se 8:$# [Contractor*s Claims] to@ ,a. ,1. an e7tension of ti%e for an- s+c& dela-( if co%)letion is or *ill 1e dela-ed( +nder S+19Cla+se 5$< ["#tension of time for Completion]! and )a-%ent of an- s+c& Cost( *&ic& s&all 1e incl+ded in t&e Contract "rice$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page ( of 27

8. taff an! 0a-o"r

8./ 9or:ing ;o"rs No *or0 s&all 1e carried o+t on t&e Site on locall- reco'niGed da-s of rest( or o+tside t&e nor%al *or0in' &o+rs stated in t&e A))endi7 to Tender( +nless@ ,a. ,1. ,c. ot&er*ise stated in t&e Contract( t&e En'ineer 'i>es consent( or t&e *or0 is +na>oida1le( or necessar- for t&e )rotection of life or )ro)ertor for t&e safet- of t&e Wor0s( in *&ic& case t&e Contractor s&all i%%ediatel- ad>ise t&e En'ineer$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 9 of 27

5. Plant' *aterials an! 9or:manshi$

5.) Testing T&is S+19Cla+se s&all a))l- to all tests s)ecified in t&e Contract( ot&er t&an t&e Test after Co%)letion ,if an-.$ T&e Contractor s&all )ro>ide all a))arat+s( assistance( doc+%ents and ot&er infor%ation( electricit-( e?+i)%ent( f+el( cons+%a1les( instr+%ents( la1o+r( %aterials( and s+ita1l- ?+alified and e7)erienced staff( as are necessar- to carro+t t&e s)ecified tests efficientl-$ T&e Contractor s&all a'ree( *it& t&e En'ineer( t&e ti%e and )lace for t&e s)ecified testin' of an- "lant( !aterials and ot&er )arts of t&e Wor0s$

5./ 2e<ection

If( as a res+lt of an e7a%ination( ins)ection( %eas+re%ent or testin'( an- "lant( !aterials or *or0%ans&i) is fo+nd to 1e defecti>e or ot&er*ise not in accordance *it& t&e Contract( t&e En'ineer %a- re=ect t&e "lant( !aterials or *or0%ans&i) 1'i>in' notice to t&e Contractor( *it& reasons( T&e Contractor s&all t&en )ro%)tl%a0e 'ood t&e defect and ens+re t&at t&e re=ected ite% co%)lies *it& t&e Contract$ If t&e En'ineer re?+ires t&is "lant( !aterials or *or0%ans&i) to 1e retested( t&e tests s&all 1e re)eated +nder t&e sa%e ter%s and conditions$ If t&e re=ection and retestin' ca+se t&e E%)lo-er to inc+r additional costs( t&e Contractor s&all s+1=ect to S+19Cla+se 8$C ["mplo er*s Claims] )a- t&ese costs to t&e E%)lo-er$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 10 of 27

=. Commencement' Dela+s an! "s$ension

=.1 Commencement of 9or: T&e En'ineer s&all 'i>e t&e Contractor not less t&an 2 da-sB notice of t&e Co%%ence%ent Date$ Unless ot&er*ise stated in t&e "artic+lar Conditions( t&e Co%%ence%ent Date s&all 1e *it&in <8 da-s after t&e Contractor recei>es t&e Letter of Acce)tance$ T&e Contractor s&all co%%ence t&e e7ec+tion of t&e Wor0s as soon as is reasona1l- )ractica1le after t&e Co%%ence%ent Date( and s&all t&en )roceed *it& t&e Wor0s *it& d+e e7)edition and *it&o+t dela-$ =.1 Time for Com$letion T&e Contractor s&all co%)lete t&e *&ole of t&e Wor0( and eac& Section ,if an-.( *it&in t&e Ti%e for Co%)letion for t&e Wor0s or Section ,as t&e case %a- 1e.( incl+din'@ ,a. ,1. ac&ie>in' t&e )assin' of t&e Tests on Co%)letion( and co%)letin' all *or0 *&ic& is stated in t&e Contract as 1ein' re?+ired for t&e Wor0s or Section to 1e considered to 1e co%)leted for t&e )+r)oses of ta0in'9o>er +nder S+19Cla+se #:$# [&aking O'er of the Works and (ections].

=.& Programme

T&e Contractor s&all s+1%it a detailed ti%e )ro'ra%%e to t&e En'ineer *it&in 85 da-s after recei>in' t&e notice +nder S+19Cla+se 5$# [Commencement of Works]. T&e Contractor s&all also s+1%it a re>ised )ro'ra%%e *&ene>er t&e )re>io+s )ro'ra%%e is inconsistent *it& act+al )ro'ress or *it& t&e ContractorBs o1li'ations$ Eac& )ro'ra%%e s&all incl+de@ ,a. t&e order in *&ic& t&e Contractor intends to carr- o+t t&e Wor0s( incl+din' t&e antici)ated ti%in' of eac& sta'e of desi'n ,if an-.( ContractorBs Doc+%ents( )roc+re%ent( %an+fact+re of "lant( deli>er- to Site( constr+ction( erection and testin'( eac& of t&ese sta'es for *or0 1- eac& no%inated S+1contractor ,as defined in Cla+se C [$ominated (u2contractors].( t&e se?+ence and ti%in' of ins)ections and tests s)ecified in t&e Contract( and a s+))ortin' re)ort *&ic& incl+des@ ,i. a 'eneral descri)tion of t&e %et&ods *&ic& t&e Contractor intends to ado)t( and of t&e %a=or sta'es( in t&e e7ec+tion of t&e Wor0s( and details s&o*in' t&e ContractorBs reasona1le esti%ate of t&e n+%1er of eac& class of ContractorBs "ersonnel and of eac& t-)e of ContractorBs E?+i)%ent( re?+ired on t&e Site for eac& %a=or sta'e$

,1.

,c. ,d.

,ii.

Unless t&e En'ineer( *it&in 8# da-s after recei>in' a )ro'ra%%e( 'i>es notice to t&e Contractor statin' t&e e7tent to *&ic& it does not co%)l- *it& t&e Contract( t&e Contractor s&all )roceed in accordance *it& t&e )ro'ra%%e( s+1=ect to &is ot&er
Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$ Page 11 of 27

o1li'ations +nder t&e Contract$ T&e E%)lo-erBs "ersonnel s&all 1e entitled to rel+)on t&e )ro'ra%%e *&en )lannin' t&eir acti>ities$ T&e Contractor s&all )ro%)tl- 'i>e notice to t&e En'ineer of s)ecific )ro1a1le f+t+re e>ents or circ+%stances *&ic& %a- ad>ersel- affect t&e *or0( increase t&e Contract "rice or dela- t&e e7ec+tion of t&e Wor0s$ T&e En'ineer %a- re?+ire t&e Contractor to s+1%it an esti%ate of t&e antici)ated effect or t&e f+t+re e>ent or circ+%stances( and4or a )ro)osal +nder S+19Cla+se #;$; [)ariation %rocedure]. If( at an- ti%e( t&e En'ineer 'i>es notice to t&e Contractor t&at a )ro'ra%%e fails ,to t&e e7tent stated. to co%)l- *it& t&e Contract or to 1e consistent *it& act+al )ro'ress and t&e ContractorBs stated intentions( t&e Contractor s&all s+1%it a re>ised )ro'ra%%e to t&e En'ineer in accordance *it& t&is S+19Cla+se$ =.) Extension of Time for Com$letion T&e Contractor s&all 1e entitled s+1=ect to S+19Cla+se 8:$# [Contractor*s Claims] to an e7tension of t&e Ti%e for Co%)letion if and to t&e e7tent t&at co%)letion for t&e )+r)osed of S+19Cla+se #:$# [&aking O'er of the Works and (ections] is or *ill 1e dela-ed 1- an- of t&e follo*in' ca+ses@ ,a. a Dariation ,+nless an ad=+st%ent to t&e Ti%e for Co%)letion &as 1een a'reed +nder S+19Cla+se #;$; [)ariation %rocedure]. or ot&er s+1stantial c&an'e in t&e ?+antit- of an ite% of *or0 incl+ded in t&e Contract( a ca+se of dela- 'i>in' an entitle%ent to e7tension of ti%e +nder a S+19 Cla+se of t&ese Conditions( e7ce)tionall- ad>erse cli%atic conditions( Unforeseea1le s&orta'es in t&e a>aila1ilit- of )ersonnel or Goods ca+sed 1- e)ide%ic or 'o>ern%ental action( or an- dela-( i%)edi%ent or )re>ention ca+sed 1- or attri1+ta1le to t&e E%)lo-er( t&e E%)lo-erBs "ersonnel( or t&e E%)lo-erBs ot&er contractors on t&e Site$

,1. ,c. ,d. ,e.

If t&e Contractor considers &i%self to 1e entitled to an e7tension of t&e Ti%e for Co%)letion( t&e Contractor s&all 'i>e notice to t&e En'ineer in accordance *it& S+19Cla+se 8:$# [Contractor*s Claims]. W&en deter%inin' eac& e7tension of ti%e +nder S+19Cla+se 8:$#( t&e En'ineer s&all re>ie* )re>io+s deter%inations and %a- increase( 1+t s&all not decrease( t&e total e7tension of ti%e$

=.8 2ate of Progress

If( at an- ti%e@ ,a. ,1. act+al )ro'ress is to slo* to co%)lete *it&in t&e Ti%e for Co%)letion( and4or )ro'ress &as fallen ,or *ill fall. 1e&ind t&e c+rrent )ro'ra%%e +nder S+19 Cla+se 5$; [%rogramme]!

ot&er t&an as a res+lt of a ca+se listed in S+19Cla+se 5$< ["#tension of &ime for Completion]! t&en t&e En'ineer %a- instr+ct t&e Contractor to s+1%it( +nder S+19 Cla+se 5$; [%rogramme]! a re>ised )ro'ra%%e and s+))ortin' re)ort descri1in' t&e re>ised %et&ods *&ic& t&e Contractor )ro)oses to ado)t in order to e7)edite )ro'ress and co%)lete *it&in t&e Ti%e for Co%)letion$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 12 of 27

Unless t&e En'ineer notifies ot&er*ise( t&e Contractor s&all ado)t t&ese re>ised %et&ods( *&ic& %a- re?+ire increases in t&e *or0in' &o+rs and4or in t&e n+%1ers of ContractorBs "ersonnel and4or Goods( at t&e ris0 and cost of t&e Contractor$ If t&ese re>ised %et&ods ca+se t&e E%)lo-er to inc+r additional costs( t&e Contractor s&all s+1=ect to S+19Cla+se 8$C ["mplo er*s Claims] )a- t&ese costs to t&e E%)lo-er( in addition to dela- da%a'es ,if an-. +nder S+19Cla+se 5$2 1elo*$ =.5 Dela+ Damages If t&e Contractor fails to co%)l- *it& S+19Cla+se 5$8 [&ime for Completion]! t&e Contractor s&all s+1=ect to S+19Cla+se 8$C ["mplo er*s Claims] )a- delada%a'es to t&e E%)lo-er for t&is defa+lt$ T&ese dela- da%a'es s&all 1e t&e s+% stated in t&e A))endi7 to Tender( *&ic& s&all 1e )aid for e>er- da- *&ic& s&all ela)se 1et*een t&e rele>ant ti%e for Co%)letion and t&e date stated in t&e Ta0in' 9 O>er Certificate$ o*e>er( t&e total a%o+nt d+e +nder t&is S+19Cla+se s&all not e7ceed t&e %a7i%+% a%o+nt of dela- da%a'es ,if an-. stated in t&e A))endi7 to Tender$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 1% of 27

17. Em$lo+er3s Ta:ing 4ver

17.1 Ta:ing 4ver the 9or:s an! ections E7ce)t as stated in S+19Cla+se 6$< [Failure to %ass &ests on Completion]! t&e Wor0s s&all 1e ta0en o>er 1- t&e E%)lo-er *&en ,i. t&e Wor0s &a>e 1een co%)leted in accordance *it& t&e Contract( incl+din' t&e %atters descri1ed in S+19Cla+se 5$8 HTi%e for Co%)letionI and e7ce)t as allo*ed in s+19)ara'ra)& ,a. 1elo*( and ,ii. a Ta0in'9O>er Certificate for t&e Wor0s &as 1een iss+ed( or is dee%ed to &a>e 1een iss+ed( in accordance *it& t&is S+19Cla+se$ T&e Contractor %a- a))l- 1- notice to t&e En'ineer for a Ta0in'9O>er Certificate not earlier t&an #< da-s 1efore t&e Wor0s *ill( in t&e ContractorBs o)inion( 1e co%)lete and read- for ta0in' o>er$ If t&e Wor0s are di>ided into Sections( t&e Contractor %a- si%ilarl- a))l- for a Ta0in'9O>er Certificate for eac& Section$ T&e En'ineer s&all( *it&in 85 da-s after recei>in' t&e ContractorBs a))lication@ ,a. iss+e t&e Ta0in'9O>er Certificate to t&e Contactor( statin' t&e date on *&ic& t&e Wor0s or Section *ere co%)leted in accordance *it& t&e Contract( e7ce)t for an- %inor o+tstandin' *or0 and defects *&ic& *ill not s+1stantiall- affect t&e +se of t&e Wor0s or Section for t&eir intended )+r)ose ,eit&er +ntil or *&ilst t&is *or0 is co%)leted and t&ese defects are re%edied.A or re=ect t&e a))lication( 'i>in' reasons and s)ecif-in' t&e *or0 re?+ired to 1e done 1- t&e Contractor to ena1le t&e Ta0in'9O>er Certificate to 1e iss+ed$ T&e Contractor s&all t&en co%)lete t&is *or0 1efore iss+in' a f+rt&er notice +nder t&is S+19Cla+se$

,1.

If t&e En'ineer fails eit&er to iss+e t&e Ta0in'9O>er Certificate or to re=ect t&e ContractorBs a))lication *it&in t&e )eriod of 85 da-s( and if t&e Wor0s or Section ,as t&e case %- 1e. are s+1stantiall- in accordance *it& t&e Contract( t&e Ta0in'9 O>er Certificate s&all 1e dee%ed to &a>e 1een iss+ed on t&e last da- of t&at )eriod$ 17.1 Ta:ing 4ver of Parts of the 9or:s T&e En'ineer %a-( at t&e sole discretion of t&e E%)lo-er( iss+e a Ta0in'9O>er Certificate for an- )art of t&e "er%anent Wor0s$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 14 of 27

11. Defects 0ia-ilit+

11.1 Com$letion of 4"tstan!ing 9or: an! 2eme!+ing Defects In order t&at t&e Wor0s and ContractorBs Doc+%ents( and eac& Section( s&all 1e in t&e condition re?+ired 1- t&e Contract ,fair *ear and tear e7ce)ted. 1- t&e e7)irdate of t&e rele>ant Defects Notification "eriod or as soon as )ractica1le t&ereafter( t&e Contractor s&all@ ,a. co%)lete an- *or0 *&ic& is o+tstandin' on t&e date stated in a Ta0in'9 O>er Certificate( *it&in s+c& reasona1le ti%es as is instr+cted 1- t&e En'ineer( and e7ec+te all *or0 re?+ired to re%ed- defects or da%a'e( as %a- 1e notified 1- ,or on 1e&alf of. t&e E%)lo-er on or 1efore t&e e7)ir- date of t&e Defects Notification "eriod for t&e *or0s or section ,as t&e case %a1e.$

,1.

11.1 Costs of 2eme!+ing Defects

All *or0 referred to in s+19)ara'ra)& ,1. of S+19Cla+se ##$# [Completion of Outstanding Work and Remed ing Defects] s&all 1e e7ec+ted at t&e ris0 and cost of t&e Contractor( if and to t&e e7tent t&at t&e *or0 is attri1+ta1le to@ ,a. ,1. ,c. an- desi'n for *&ic& t&e Contractor is res)onsi1le( "lant( !aterials or *or0%ans&i) not 1ein' in accordance *it& t&e Contract( or fail+re 1- t&e Contractor to co%)l- *it& an- ot&er o1li'ation$

If and to t&e e7tent t&at s+c& *or0 is attri1+ta1le to an- ot&er ca+se( t&e Contractor s&all 1e notified )ro%)tl- 1- ,or on 1e&alf of. t&e E%)lo-er( and S+19Cla+se #;$; [)ariation %rocedure] s&all a))l-$

11.9 Performance Certificate

"erfor%ance of t&e ContractorBs o1li'ations s&all not 1e considered to &a>e 1een co%)leted +ntil t&e En'ineer &as iss+ed t&e "erfor%ance Certificate to t&e Contractor( statin' t&e date on *&ic& t&e Contractor co%)leted &is o1li'ations +nder t&e Contract$ T&e En'ineer s&all iss+e t&e "erfor%ance Certificate *it&in 85 da-s after t&e latest of t&e e7)ir- dates of t&e Defects Notification "eriods( or as soon t&ereafter as t&e Contractor &as s+))lied all t&e ContractorBs Doc+%ents and co%)leted and tested all t&e Wor0s( incl+din' re%ed-in' an- defects$ A co)- of t&e "erfor%ance Certificate s&all 1e iss+ed to t&e E%)lo-er$ Onl- t&e "erfor%ance Certificate s&all 1e dee%ed to constit+te acce)tance of t&e Wor0s$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 1& of 27

11. *eas"rement an! Eval"ation

11.1 9or:s to -e *eas"re! T&e Wor0s s&all 1e %eas+red( and >al+ed for )a-%ent( in accordance *it& t&is Cla+se$ W&ene>er t&e En'ineer re?+ires an- )art of t&e Wor0s to 1e %eas+red( reasona1le notice s&all 1e 'i>en to t&e ContractorBs Re)resentati>e( *&o s&all@ ,a. ,1. )ro%)tl- eit&er attend or send anot&er ?+alified re)resentati>e to assist t&e En'ineer in %a0in' t&e %eas+re%ent( and s+))l- an- )artic+lars re?+ested 1- t&e En'ineer$

If t&e Contractor fails to attend or send a re)resentati>e( t&e %eas+re%ent %ade 1- ,or on 1e&alf of . t&e En'ineer s&all 1e acce)ted as acc+rate$ E7ce)t as ot&er*ise stated in t&e Contract( *&ere>er an- "er%anent Wor0s are to 1e %eas+red fro% records( t&ese s&all 1e )re)ared 1- t&e En'ineer$ T&e Contractor s&all( as and *&en re?+ested( attend to e7a%ine and a'ree t&e records *it& t&e En'ineer( and s&all si'n t&e sa%e *&en a'reed$ If t&e Contractor does not attend( t&e records s&all 1e acce)ted as acc+rate$ If t&e Contractor e7a%ines and disa'rees t&e records( and4or does not si'n t&e% as a'reed( t&en t&e Contractor s&all 'i>e notice to t&e En'ineer of t&e res)ects in *&ic& t&e records are asserted to 1e inacc+rate$ After recei>in' t&is notice( t&e En'ineer s&all re>ie* t&e records and eit&er confir% or >ar- t&e%$ If t&e Contractor does not so 'i>e notice to t&e En'ineer *it&in #< da-s after 1ein' re?+ested to e7a%ine t&e records( t&e- s&all 1e acce)ted as acc+rate$ 11.& Eval"ation E7ce)t as ot&er*ise stated in t&e Contract( t&e En'ineer s&all )roceed in accordance *it& S+19Cla+se ;$C [Determinations] to a'ree or deter%ine t&e Contract "rice 1- e>al+atin' eac& ite% of *or0( a))l-in' t&e %eas+re%ent a'reed or deter%ined in accordance *it& t&e a1o>e S+19Cla+ses #8$# and #8$8 and t&e a))ro)riate rate or )rice for t&e ite%$ For eac& ite% of *or0( t&e a))ro)riate rate or )rice for t&e ite% s&all 1e t&e rate or )rice s)ecified for s+c& ite% in t&e Contract or( if t&ere is no s+c& ite%( s)ecified for si%ilar *or0$ o*e>er( a ne* rate or )rice s&all 1e a))ro)riate for an ite% of *or0 if@ ,a. ,i. t&e %eas+red ?+antit- of t&e ite% is c&an'ed 1- %ore t&an #:J fro% t&e ?+antit- of t&is ite% in t&e Bill of 3+antities or ot&er Sc&ed+le( t&is c&an'e in ?+antit- %+lti)lied 1- s+c& s)ecified rate for t&is ite% e7ceeds :$:#J of t&e Acce)ted Contact A%o+nt( t&is c&an'e in ?+antit- directl- c&an'es t&e Cost )er +nit ?+antitof t&is ite% 1- %ore t&an #J( and t&is ite% is not s)ecified in t&e Contract as a Efi7ed rate ite%FA

,ii. ,iii.

,i>.

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 1' of 27

1&. .ariations an! #!<"stments

1&.1 2ight to .ar+ Dariations %a- 1e initiated 1- t&e En'ineer at an- ti%e )rior to iss+in' t&e Ta0in'9 O>er Certificate for t&e Wor0s( eit&er 1- an instr+ction or 1- a re?+est for t&e Contractor to s+1%it a )ro)osal $ T&e Contractor s&all e7ec+te and 1e 1o+nd 1- eac& Dariation( +nless t&e Contractor )ro%)tl- 'i>es notice to t&e En'ineer statin' ,*it& s+))ortin' )artic+lars. t&at t&e Contractor cannot readil- o1tain t&e Goods re?+ired for t&e Dariation$ U)on recei>in' t&is notice( t&e En'ineer s&all cancel( confir% or >ar- t&e instr+ction$ Eac& Dariation %a- incl+de@ ,a. ,1. ,c. ,d. ,e. c&an'es to t&e ?+antities of an- ite% of *or0 incl+ded in t&e Contract ,&o*e>er( s+c& c&an'es do not necessaril- constit+te a Dariation.( c&an'es to t&e ?+alit- and ot&er c&aracteristics of an- ite% of *or0( c&an'es to t&e le>els( )ositions and4or di%ensions of an- )art of t&e Wor0s( o%ission of an- *or0 +nless it is to 1e carried o+t 1- ot&ers( an- additional *or0( "lant( !aterials or ser>ices necessar- for t&e "er%anent Wor0s( incl+din' an- associated Tests on Co%)letion( 1ore&oles and ot&er testin' and e7)lorator- *or0( or c&an'es to t&e se?+ence or ti%in' of t&e e7ec+tion of t&e Wor0s$

,f.

T&e Contractor s&all not %a0e an- alteration and4or %odification or t&e "er%anent Wor0s( +nless and +ntil t&e En'ineer instr+cts or a))ro>es a Dariation$ 1&.1 .al"e Engineering T&e Contractor %a-( at an- ti%e( s+1%it to t&e En'ineer a *ritten )ro)osal *&ic& ,in t&e ContractorBs o)inion. *ill( if ado)ted( ,i. accelerate co%)letion( ,ii. red+ce t&e cost to t&e E%)lo-er of e7ec+tin'( %aintainin' or o)eration t&e Wor0s( ,iii. i%)ro>e t&e efficienc- or >al+e to t&e E%)lo-er of t&e co%)leted Wor0s( or ,i>. ot&er*ise 1e of 1enefit to t&e E%)lo-er$ T&e )ro)osal s&all 1e )re)ared at t&e cost of t&e Contractor and s&all incl+de t&e ite%s listed in S+19Cla+se #;$; [)ariation %rocedure].

1&.& .ariation Proce!"re

If t&e En'ineer re?+ests a )ro)osal( )rior to instr+ction a Dariation( t&e Contractor s&all res)ond in *ritin' as soon as )ractica1le( eit&er 1- 'i>in' reasons *&- &e cannot co%)l- ,if t&is is t&e case. or 1- s+1%ittin'@ ,a. ,1. a descri)tion of t&e )ro)osed *or0 to 1e )erfor%ed and a )ro'ra%%e for its e7ec+tion( t&e ContractorBs )ro)osal for an- necessar- %odifications to t&e )ro'ra%%e accordin' to S+19Cla+se 5$; [%rogramme] and to t&e Ti%e for Co%)letion( and
Page 17 of 27

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

,c.

t&e ContractorBs )ro)osal for e>al+ation of t&e Dariation$

T&e En'ineer s&all( as soon as )ractica1le after recei>in' s+c& )ro)osal ,+nder S+19Cla+se #;$8 [)alue "ngineering] or ot&er*ise.( res)ond *it& a))ro>al( disa))ro>al or co%%ents$ T&e Contractor s&all not dela- an- *or0 *&ilst a*aitin' a res)onse$ Eac& instr+ction to e7ec+te a Dariation( *it& an- re?+ire%ents for t&e recordin' of Costs( s&all 1e iss+ed 1- t&e En'ineer to t&e Contractor *&o s&all ac0no*led'e recei)t$ Eac& Dariation s&all 1e e>al+ated in accordance *it& Cla+se #8 [/easurement and "'aluation]! +nless t&e En'ineer instr+cts or a))ro>es ot&er*ise in accordance *it& t&is Cla+se$ 1&./ Provisional "ms Eac& "ro>isional S+% s&all onl- 1e +sed( in *&ole or in )art( in accordance *it& t&e En'ineerBs instr+ctions( and t&e Contract "rice s&all 1e ad=+sted accordin'l-$ T&e total s+% )aid to t&e Contractor s&all incl+de onl- s+c& a%o+nts( for t&e *or0( s+))lies or ser>ices to *&ic& t&e "ro>isional S+% relates( as t&e En'ineer s&all &a>e instr+cted$

1&.8 Da+wor:

For *or0 of a %inor or incidental nat+re( t&e En'ineer %a- instr+ct t&at a Dariation s&all 1e e7ec+ted on a da-*or0 1asis$ T&e *or0 s&all t&en 1e >al+ed in accordance *it& t&e Da-*or0 Sc&ed+le incl+ded in t&e Contract( and t&e follo*in' )roced+re s&all a))l-$ If a Da-*or0 Sc&ed+le is not incl+ded in t&e Contract( t&is S+19Cla+se s&all not a))l-$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 1( of 27

1). Contract Price an! Pa+ment

1).1 #!vance Pa+ment T&e E%)lo-er s&all %a0e an ad>ance )a-%ent( as an interest9free loan for %o1ilisation( *&en t&e Contractor s+1%its a '+arantee in accordance *it& t&is S+19Cla+se$ T&e total ad>ance )a-%ent( t&e n+%1er and ti%in' of instal%ents ,if %ore t&an one.( and t&e a))lica1le c+rrencies and )ro)ortions( s&all 1e as stated in t&e A))endi7 to Tender$ Unless and +ntil t&e E%)lo-er recei>es t&is '+arantee( or if t&e total ad>ance )a-%ent is not stated in t&e A))endi7 to Tender( t&is S+19Cla+se s&all not a))l-$ T&e En'ineer s&all iss+e an Interi% "a-%ent Certificate for t&e first install%ent after recei>in' a State%ent ,+nder S+19Cla+se #<$; [Application for .nterim %a ment Certificates]. and after t&e E%)lo-er recei>es ,i. t&e "erfor%ance Sec+rit- in accordance *it& S+19Cla+se <$8 [%erformance (ecurit ] and ,ii. a '+arantee in a%o+nts and c+rrencies e?+al to t&e ad>ance )a-%ent$ T&is '+arantee s&all 1e iss+ed 1- an entit- and fro% *it&in a co+ntr- ,or ot&er =+risdiction. a))ro>ed 1- t&e E%)lo-er( and s&all 1e in t&e for% anne7ed to t&e "artic+lar Conditions or in anot&er for% a))ro>ed 1- t&e E%)lo-er$

1).& #$$lication for Interim Pa+ment Certificates

T&e Contractor s&all s+1%it a State%ent in si7 co)ies to t&e En'ineer after t&e end of eac& %ont&( in a for% a))ro>ed 1- t&e En'ineer( s&o*in' in detail t&e a%o+nts to *&ic& t&e Contractor considers &i%self to 1e entitled( to'et&er *it& s+))ortin' doc+%ents *&ic& s&all incl+de t&e re)ort on t&e )ro'ress d+rin' t&is %ont& in accordance *it& S+19Cla+se <$8# [%rogress Reports]. T&e State%ent s&all incl+de t&e follo*in' ite%s( as a))lica1le( *&ic& s&all 1e e7)ressed in t&e >ario+s c+rrencies in *&ic& t&e Contract "rice is )a-a1le( in t&e se?+ence listed@ ,a. t&e esti%ated contract >al+e of t&e Wor0s e7ec+ted and t&e ContractorBs Doc+%ents )rod+ced +) to t&e end of t&e %ont& ,incl+din' Dariations 1+t e7cl+din' ite%s descri1ed in s+19)ara'ra)&s ,1. to ,'.1elo*.A an- a%o+nts to 1e added and ded+cted for c&an'es in le'islation and c&an'es in Cost( in accordance *it& S+19Cla+se #;$2 [Adjustments for Changes in 0egislation] and S+19Cla+se #;$5 [Adjustments for Changes in Cost]3 an- a%o+nt to 1e ded+cted for retention( calc+lated 1- a))l-in' t&e )ercenta'e of retention stated in t&e A))endi7 to Tender to t&e total of a1o>e a%o+nts( +ntil t&e a%o+nt so retained 1- t&e E%)lo-er reac&es t&e li%it of Retention !one- ,if an-. stated in t&e A))endi7 to TenderA an- a%o+nts to 1e added and ded+cted for t&e ad>ance )a-%ent and re)a-%ents in accordance *it& S+19Cla+se #<$8 [Ad'ance %a ment]3 an- a%o+nt to 1e added and ded+cted for "lant and !aterials in accordance *it& S+19Cla+se #<$C [%lant and /aterials intended for the Works]3 an- ot&er additions or ded+ctions *&ic& %a- &a>e 1eco%e d+e +nder t&e Contract or ot&er*ise( incl+din' t&ose +nder Cla+se 8: [Claims! Disputes and Ar2itration]3 and
Page 19 of 27

,1.

,c.

,d. ,e.

,f.

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

,'.

t&e ded+ction of a%o+nts certified in all )re>io+s "a-%ent Certificates$

1)./ Plant an! *aterials inten!e! for the 9or:s

If t&is S+19Cla+se a))lies( Interi% "a-%ent Certificates s&all incl+de( +nder s+19 )ara'ra)& ,e. of S+19Cla+se #<$;( ,i. an a%o+nt for "lant and !aterials *&ic& &a>e 1een sent to t&e Site for incor)oration in t&e "er%anent Wor0s( and ,ii. a red+ction *&en t&e contract >al+e of s+c& "lant and !aterials is incl+ded as )art of "er%anent Wor0s +nder s+19)ara'ra)& ,a. of S+19Cla+se #<$; [Application for .nterim %a ment Certificates]. If t&e lists referred to in s+19)ara'ra)&s ,1. ,i. or ,c. ,i. 1elo* are not incl+ded in t&e A))endi7 to Tender( t&is S+19Cla+se s&all not a))l-$ T&e En'ineer s&all deter%ine and certif- eac& addition if t&e follo*in' conditions are satisfied@ ,a. t&e Contractor &as@ ,i. ,ii. and eit&er@ ,1. t&e rele>ant "lant and !aterials@ ,i. ,ii. are t&ose listed in t&e A))endi7 to Tender for )a-%ent *&en s&i))ed( &a>e 1een s&i))ed to t&e Co+ntr-( en ro+te to t&e Site( in accordance *it& t&e ContractA and are descri1ed in a clean s&i))ed 1ill of ladin' or ot&er e>idence of s&i)%ent( *&ic& &as 1een s+1%itted to t&e En'ineer to'et&er *it& e>idence of )a-%ent of frei'&t and ins+rance( an- ot&er doc+%ents reasona1l- re?+ired( and a 1an0 '+arantee in a for% and iss+ed 1an entit- a))ro>ed 1- t&e E%)lo-er in a%o+nt and c+rrencies e?+al to a%o+nt d+e +nder t&is S+19Cla+se@ t&is '+arantee %a- 1e in a si%ilar for% to t&e for% referred to in S+19Cla+se #<$8 [Ad'ance %a ment] and s&all 1e >alid +ntil t&e "lant and !aterials are )ro)erl- stored on Site and )rotected a'ainst loss( da%a'e or deterioration@ 0e)t satisfactor- records ,incl+din' t&e orders( recei)ts( Costs and +se of "lant and !aterials. *&ic& are a>aila1le for ins)ection( and s+1%itted a state%ent of t&e Cost of ac?+irin' and deli>erin' t&e "lant and !aterials to t&e Site( s+))orted 1- satisfactor- e>idenceA

,iii.

or ,c. t&e rele>ant "lant and !aterials ,i. ,ii. are t&ose listed in t&e A))endi7 to Tender for )a-%ent *&en deli>ered to t&e Site( and &a>e 1een deli>ered to and are )ro)erl- stored on t&e Site( are )rotected a'ainst loss( da%a'e or deterioration( and a))ear to 1e in accordance *it& t&e Contract$

T&e additional a%o+nt to 1e certified s&all 1e t&e e?+i>alent of ei'&t- )ercent of

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$ Page 20 of 27

t&e En'ineerBs deter%ination of t&e cost of t&e "lant and !aterials ,incl+din' deli>er- to Site.( ta0in' acco+nt of t&e doc+%ents %entioned in t&is S+19Cla+se and of t&e contract >al+e of t&e "lant and !aterials$ T&e c+rrencies for t&is additional a%o+nt s&all 1e t&e sa%e as t&ose in *&ic& )a-%ent *ill 1eco%e d+e *&en t&e contract >al+e is incl+ded +nder s+19 )ara'ra)& ,a. of S+19Cla+se #<$; [Application for .nterim %a ment Certificate]. At t&at ti%e( t&e "a-%ent Certificate s&all incl+de t&e a))lica1le red+ction *&ic& s&all 1e e?+i>alent to( and in t&e sa%e c+rrencies and )ro)ortions as( t&is additional a%o+nt for t&e rele>ant "lant and !aterials$ 1).8 Iss"e of Interim Pa+ment Certificates No a%o+nt *ill 1e certified or )aid +ntil t&e E%)lo-er &as recei>ed and a))ro>ed t&e "erfor%ance Sec+rit-$ T&ereafter( t&e En'ineer s&all( *it&in 85 da-s after recei>in' a State%ent and s+))ortin' doc+%ents( iss+e to t&e E%)lo-er an Interi% "a-%ent Certificate *&ic& s&all state t&e a%o+nt *&ic& t&e En'ineer fairldeter%ines to 1e d+e( *it& s+))ortin' )artic+lars$ o*e>er( )rior to iss+in' t&e Ta0in'9O>er Certificate for t&e Wor0s( t&e En'ineer s&all not 1e 1o+nd to iss+e an Interi% "a-%ent Certificate in an a%o+nt *&ic& *o+ld ,after retention and ot&er ded+ctions. 1e less t&an t&e %ini%+% a%o+nt of Interi% "a-%ent Certificates ,if an-. stated in t&e A))endi7 to Tender$ In t&is e>ent( t&e En'ineer s&all 'i>e notice to t&e Contractor accordin'l-$ An interi% "a-%ent Certificate s&all not 1e *it&&eld for an- ot&er reason( alt&o+'&@ ,a. if an- t&in' s+))lied or *or0 done 1- t&e Contractor is not in accordance *it& t&e Contract( t&e Cost of rectification or re)lace%ent %a- 1e *it&&eld +ntil rectification or re)lace%ent &ad 1een co%)letedA and4or if t&e Contractor *as or is failin' to )erfor% an- *or0 or o1li'ation in accordance *it& t&e Contract( and &ad 1een so notified 1- t&e En'ineer( t&e >al+e of t&is *or0 or o1li'ation %a- 1e *it&&eld +ntil t&e *or0 or o1li'ation &ad 1een )erfor%ed$

,1.

T&e En'ineer %a- in an- "a-%ent Certificate %a0e an- correction or %odification t&at s&o+ld )ro)erl- 1e %ade to an- )re>io+s "a-%ent Certificate$ A "a-%ent Certificate s&all not 1e dee%ed to indicate t&e En'ineerBs acce)tance( a))ro>al( consent or satisfaction$ 1).5 Pa+ment T&e E%)lo-er s&all )a- to t&e Contractor@ ,a. t&e first instal%ent of t&e ad>ance )a-%ent *it&in <8 da-s after iss+in' t&e Letter of Acce)tance or *it&in 8# da-s after recei>in' t&e doc+%ents in accordance *it& S+19Cla+se <$8 [%erformance (ecurit ] and S+19 Cla+se #<$8 [Ad'ance %a ment]! *&ic&e>er is laterA t&e a%o+nt certified in eac& Interi% "a-%ent Certificate *it&in C/ da-s after t&e En'ineer recei>es t&e State%ent and s+))ortin' doc+%entsA and t&e a%o+nt certified in Final "a-%ent Certificate *it&in C/ da-s after t&e E%)lo-er recei>es t&is "a-%ent Certificate$

,1. ,c.

"a-%ent of t&e a%o+nt d+e in eac& c+rrenc- s&all 1e %ade into t&e 1an0 acco+nt( no%inated 1- t&e Contractor( in t&e )a-%ent co+ntr- ,for t&is c+rrenc-. s)ecified in t&e Contract$
Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$ Page 21 of 27

1).17 tatement at Com$letion

Wit&in 5< da-s after recei>in' t&e Ta0in'9O>er Certificate for t&e Wor0s( t&e Contractor s&all s+1%it to t&e En'ineer si7 co)ies of a State%ent at co%)letion *it& s+))ortin' doc+%ents( in accordance *it& S+19Cla+se #<$; [Application for .nterim %a ment Certificates]! s&o*in' ,a. ,1. ,c. t&e >al+e of all *or0 done in accordance *it& t&e Contract +) to t&e date stated in t&e Ta0in'9O>er Certificate for t&e Wor0s( an- f+rt&er s+%s *&ic& t&e Contractor considers to 1e d+e( and an esti%ate of an- ot&er a%o+nt *&ic& t&e Contractor considers *ill 1eco%e d+e to &i% +nder t&e Contract$ Esti%ated a%o+nts s&all 1e s&o*n se)aratel- in t&is State%ent at co%)letion$

T&e En'ineer s&all t&en certif- in accordance *it& S+19Cla+se #<$/ [.ssue of .nterim %a ment Certificates]. 1).11 #$$lication for Final Pa+ment Certificate Wit&in C/ da-s after recei>in' t&e "erfor%ance Certificate( t&e Contractor s&all s+1%it( to t&e En'ineer( si7 co)ies of draft final state%ent *it& s+))ortin' doc+%ents s&o*in' in details in a for% a))ro>ed 1- t&e En'ineer@ ,a. ,1. t&e >al+e of all *or0 done in accordance *it& t&e Contract( and an- f+rt&er s+%s *&ic& t&e Contractor considers to 1e d+e to &i% +nder t&e Contract or ot&er*ise$

If t&e En'ineer disa'rees *it& or cannot >erif- an- )art of t&e draft final state%ent( t&e Contractor s&all s+1%it s+c& f+rt&er infor%ation as t&e En'ineer %areasona1l- re?+ire and s&all %a0e s+c& c&an'es in t&e draft as %a- 1e a'reed 1et*een t&e%$ T&e Contractor s&all t&en )re)are and s+1%it to t&e En'ineer t&e final state%ent as a'reed$ T&is a'reed state%ent is referred to in t&ese Conditions as t&e FFinal State%entF$ o*e>er if( follo*in' disc+ssions 1et*een t&e En'ineer and t&e Contractor and an- c&an'es to t&e draft final state%ent *&ic& are a'reed( it 1eco%es e>ident t&at a dis)+te e7ists( t&e En'ineer s&all deli>er to t&e E%)lo-er ,*it& a co)- to t&e Contractor. an Interi% "a-%ent Certificate for t&e a'reed )arts of t&e draft final state%ent$ T&ereafter( if t&e dis)+te is finall- resol>ed +nder S+19Cla+se 8:$< [O2taining Dispute Adjudication Board*s Decision] or S+19Cla+se 8:$C [Amica2le (ettlement]! t&e Contractor s&all t&en )re)are and s+1%it to t&e E%)lo-er ,*it& a co)- to t&e En'ineer. a Final State%ent$ 1).11 Discharge W&en s+1%ittin' t&e Final State%ent( t&e Contractor s&all s+1%it a *ritten disc&ar'e *&ic& confir%s t&at t&e total of t&e Final State%ent re)resents f+ll and final settle%ent of all %one-s d+e to t&e Contractor +nder or in connection *it& t&e Contract$ T&is disc&ar'e %a- state t&at it 1eco%es effecti>e *&en t&e Contractor &as recei>ed t&e "erfor%ance Sec+rit- and t&e o+tstandin' 1alance of t&is total( in *&ic& e>ent t&e disc&ar'e s&all 1e effecti>e on s+c& date$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 22 of 27

1).1& Iss"e of Final Pa+ment Certificate

Wit&in 85 da-s after recei>in' t&e Final State%ent and *ritten disc&ar'e in accordance *it& S+19Cla+se #<$## [Application for Final %a ment Certificate] and S+19Cla+se #<$#8 [Discharge]! t&e En'ineer s&all iss+e( to t&e E%)lo-er( t&e Final "a-%ent Certificate *&ic& s&all state@ ,a. ,1. t&e a%o+nt *&ic& is finall- d+e( and after 'i>in' credit to t&e E%)lo-er for all a%o+nts )re>io+sl- )aid 1- t&e E%)lo-er and for all s+%s to *&ic& t&e E%)lo-er is entitled( t&e 1alance ,if an-. d+e fro% t&e E%)lo-er to t&e Contractor or fro% t&e Contractor to t&e E%)lo-er( as t&e case %a- 1e$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 2% of 27

1/. Termination -+ Em$lo+er

1/.1 Termination -+ Em$lo+er T&e E%)lo-er s&all 1e entitled to ter%inate t&e Contract if t&e Contractor@ ,a. ,1. ,c. fails to co%)l- *it& S+19Cla+se <$8 [%erformance (ecurit ] or *it& a notice +nder S+19Cla+se #C$# [$otice to Correct]! a1andons t&e Wor0s or ot&er*ise )lainl- de%onstrates t&e intention not to contin+e )erfor%ance of &is o1li'ations +nder t&e Contract( *it&o+t reasona1le e7c+se failsA ,i. ,ii. to )roceed *it& t&e Wor0s in accordance *it& Cla+se 5 [Commencement! Dela s and (uspension]( or to co%)l- *it& a notice iss+ed +nder S+19Cla+se 2$C [Rejection] or S+19Cla+se 2$/ [Remedial Work]! *it&in 85 da-s after recei>in' it(

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 24 of 27

15. 2is: an! 2es$onsi-ilit+

15.1 Contractor3s Care of the 9or:s T&e Contractor s&all ta0e f+ll res)onsi1ilit- for t&e care of t&e Wor0s and Goods fro% t&e Co%%ence%ent Date +ntil t&e Ta0in'9O>er Certificate is iss+ed ,or is dee%ed to 1e iss+ed +nder S+19Cla+se #:$# [&aking O'er of the Works and (ections]. for t&e Wor0s( *&en res)onsi1ilit- for t&e care of t&e Wor0s s&all )ass to t&e E%)lo-er$ If a Ta0in'9O>er Certificate is iss+ed ,or is so dee%ed to 1e iss+ed. for an- Section or )art of t&e Wor0s( res)onsi1ilit- for t&e care of t&e Section or )art s&all t&en )ass to t&e E%)lo-er$ After res)onsi1ilit- &as accordin'l- )assed to t&e E%)lo-er( t&e Contractor s&all ta0e res)onsi1ilit- for t&e care of an- *or0 *&ic& is o+tstandin' on t&e date stated in a Ta0in'9O>er Certificate( +ntil t&is o+tstandin' *or0 &as 1een co%)leted$ If an- loss or da%a'e &a))ens to t&e Wor0s( Goods or ContractorBs Doc+%ents d+rin' t&e )eriod *&en t&e Contractor is res)onsi1le for t&eir care( fro% an- ca+se not listed in S+19Cla+se #2$; ["mplo er*s Risks]! t&e Contractor s&all rectif- t&e loss or da%a'e at t&e ContractorBs ris0 and cost( so t&at t&e Wor0s( Goods and ContractorBs Doc+%ents confor% *it& t&e Contract$

15.) Conse>"ences of Em$lo+er3s 2is:s

If and to t&e e7tent t&at an- of t&e ris0s listed in S+1 9Cla+se #2$; a1o>e res+lts in loss or da%a'e to t&e Wor0s( Goods or ContractorBs Doc+%ents( t&e Contractor s&all )ro%)tl- 'i>e notice to t&e En'ineer and s&all rectif- t&is loss or da%a'e to t&e e7tent re?+ired 1- t&e En'ineer$ If t&e Contractor s+ffers dela- and4or inc+rs Cost fro% rectif-in' t&is loss or da%a'e( t&e Contractor s&all 'i>e a f+rt&er notice to t&e En'ineer and s&all 1e entitled s+1=ect to S+19Cla+se 8:$# [Contractor*s Claims] to@ ,a. ,1. an e7tension to ti%e for an- s+c& dela-( if co%)letion is or *ill 1e dela-ed( +nder S+19Cla+se 5$< ["#tension of &ime for Completion]! and )a-%ent of an- s+c& Cost( *&ic& s&all 1e incl+ded in t&e Contract "rice$ In t&e case of s+19)ara'ra)&s ,f. and ,'. of S+19Cla+se #2$; ["mplo er*s Risks] reasona1le )rofit on t&e Cost s&all also 1e incl+ded$

After recei>in' t&is f+rt&er notice( t&e En'ineer s&all )roceed in accordance *it& S+19Cla+se ;$C [Determinations] to a'ree or deter%ine t&ese %atters$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 2& of 27

1=. Ins"rance
1=.1 General 2e>"irements for Ins"rances In t&is Cla+se( Eins+rin' "art-F %eans( for eac& t-)e of ins+rance( t&e "artres)onsi1le for effectin' and %aintainin' t&e ins+rance s)ecified in t&e rele>ant S+19Cla+se$ W&ere>er t&e Contractor is t&e ins+rin' "art-( eac& ins+rance s&all 1e effected *it& ins+rers and in ter%s a))ro>ed 1- t&e E%)lo-er$ T&ese ter%s s&all 1e consistent *it& an- ter%s a'reed 1- 1ot& "arties 1efore t&e date or t&e Letter of Acce)tance$ T&is a'ree%ent of ter%s s&all ta0e )recedence o>er t&e )ro>isions of t&is Cla+se$ W&ere>er t&e E%)lo-er is t&e ins+rin' "art-( eac& ins+rance s&all 1e effected *it& ins+rers and in ter%s consistent *it& t&e details anne7ed to t&e "artic+lar Conditions$ 1=.1 Ins"rance for 9or:s an! Contractor3s E>"i$ment T&e ins+rin' )art- s&all ins+re t&e Wor0s( "lant( !aterials and ContractorBs Doc+%ents for not less t&an t&e f+ll reinstate%ent cost incl+din' t&e costs or de%olition( re%o>al of de1ris and )rofessional fees and )rofit$ T&is ins+rance s&all 1e effecti>e fro% t&e date 1- *&ic& t&e e>idence is to 1e s+1%itted +nder s+19 )ara'ra)& ,a. of S+19Cla+se #5$# [+eneral Re,uirements for .nsurances]! +ntil t&e date of iss+e of t&e Ta0in'9O>er Certificate for t&e Wor0s$ T&e ins+rin' "art- s&all %aintain t&is ins+rance to )ro>ide co>er +ntil t&e date of iss+e of t&e "erfor%ance Certificate( for loss or da%a'e for *&ic& t&e Contractor is lia1le arisin' fro% a ca+se occ+rrin' )rior to t&e iss+e of t&e Ta0in'9O>er Certificate( and for loss or da%a'e ca+sed 1- t&e Contractor in t&e co+rse of anot&er o)erations ,incl+din' t&ose +nder Cla+se ## [Defects 0ia2ilit ].$ 1=.& Ins"rance against In<"r+ to Persons an! Damage to Pro$ert+ T&e ins+rin' "art- s&all ins+re a'ainst eac& "art-Bs lia1ilit- for an- loss( da%a'e( deat& or 1odil- in=+r- *&ic& %a- occ+r to an- )&-sical )ro)ert- ,e7ce)t t&in's ins+red +nder S+19Cla+se #5$8 [.nsurance for Works and Contractor*s ",uipment] or to an- )erson ,e7ce)t )ersons ins+red +nder S+19Cla+se #5$< [insurance for Contractor*s %ersonnel].( *&ic& %a- arise o+t of t&e ContractorBs )erfor%ance of t&e Contract and occ+rrin' 1efore t&e iss+e of t&e "erfor%ance Certificate$ T&is ins+rance s&all 1e for a li%it )er occ+rrence of not less t&an t&e a%o+nt stated in t&e A))endi7 to Tender( *it& no li%it on t&e n+%1er of occ+rrences$ If an a%o+nt is not stated in t&e A))endi7 to Tender( t&is S+19Cla+se s&all not a))l-$ 1=.) Ins"rance for Contractor3s Personnel T&e Contractor s&all effect and %aintain ins+rance a'ainst lia1ilit- for clai%s( da%a'es( losses and e7)enses ,incl+din' le'al fees and e7)enses. arisin' fro% in=+r-( sic0ness( disease or deat& of an- )erson e%)lo-ed 1- t&e Contractor or anot&er of t&e ContractorBs "ersonnel$ T&e E%)lo-er and t&e En'ineer s&all also 1e inde%nified +nder t&e )olic- of ins+rance( e7ce)t t&at t&is ins+rance %a- e7cl+de losses and clai%s to t&e e7tent t&at t&e- arise fro% an- act or ne'lect of t&e E%)lo-er or of t&e E%)lo-erBs "ersonnel$ T&e ins+rance s&all 1e %aintained in f+ll force and effect d+rin' t&e *&ole ti%e t&at t&ese )ersonnel are assistin' in t&e e7ec+tion of t&e Wor0s$ For a S+1contractorBs e%)lo-ees( t&e ins+rance %a- 1e effected 1- t&e S+1contractor( 1+t t&e Contractor s&all 1e res)onsi1le for co%)liance *it& t&is Cla+se$
Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$ Page 2' of 27

17. Claim' Dis$"tes an! #r-itration

17.1 Contractor3s Claims If t&e Contractor considers &i%self to 1e entitled to an- e7tension of t&e Ti%e for Co%)letion and4or an- additional )a-%ent( +nder an- Cla+se of t&ese Conditions or ot&er*ise in connection *it& t&e Contract( t&e Contractor s&all 'i>e notice to t&e En'ineer( descri1in' t&e e>ent or circ+%stance 'i>in' rise to t&e clai%$ T&e notice s&all 1e 'i>en as soon as )ractica1le( and not later t&an 85 da-s after t&e Contractor 1eco%e a*are( or s&o+ld &a>e 1eco%e a*are( of t&e e>ent or circ+%stance$ If t&e Contractor fails to 'i>e notice of a clai% *it&in s+c& )eriod of 85 da-s( t&e Ti%e for Co%)letion s&all not 1e e7tended( t&e Contractor s&all not 1e entitled to additional )a-%ent( and t&e E%)lo-er s&all 1e disc&ar'ed fro% all lia1ilit- in connection *it& t&e clai%$ Ot&er*ise( t&e follo*in' )ro>isions of t&is S+19Cla+se s&all a))l-$ T&e Contractor s&all also s+1%it an- ot&er notices *&ic& are re?+ired 1- t&e Contract( and s+))ortin' )artic+lars for t&e clai%( all as rele>ant to s+c& e>ent or circ+%stance$ T&e Contractor s&all 0ee) s+c& conte%)orar- records as %a- 1e necessar- to s+1stantiate an- clai%( eit&er on t&e Site or at anot&er location acce)ta1le to t&e En'ineer$ Wit&o+t ad%ittin' t&e E%)lo-erBs lia1ilit-( t&e En'ineer %a-( after recei>in' an- notice +nder t&is S+19Cla+se( %onitor t&e record90ee)in' and4or instr+ct t&e Contractor to 0ee) f+rt&er conte%)orar- records$ T&e Contractor s&all )er%it t&e En'ineer to ins)ect all t&ese records( and s&all ,if instr+cted. s+1%it co)ies to t&e En'ineer$ Wit&in <8 da-s after t&e Contractor 1eco%e a*are ,or s&o+ld &a>e 1eco%e a*are. of t&e e>ent or circ+%stance 'i>in' rise to t&e clai%( or *it&in s+c& ot&er )eriod as %a- 1e )ro)osed 1- t&e Contractor and a))ro>ed 1- t&e En'ineer( t&e Contractor s&all send to t&e En'ineer a f+ll- detailed clai% *&ic& incl+des f+ll s+))ortin' )artic+lars of t&e 1asis of t&e clai% and of t&e e7tension of ti%e and4or additional )a-%ent clai%ed$ If t&e e>ent or circ+%stance 'i>in' rise to t&e clai% &as a contin+in' effect@ ,a. ,1. t&is f+ll- detailed clai% s&all 1e considered as interi%A t&e Contractor s&all send f+rt&er interi% clai%s at %ont&l- inter>als( 'i>in' t&e acc+%+lated dela- and4or a%o+nt clai%ed( and s+c& f+rt&er )artic+lars as t&e En'ineer %a- reasona1l- re?+ire@ and

17.1 #$$ointment of the Dis$"te #!<"!ication %oar!

Dis)+tes s&all 1e ad=+dicated 1- a DAB in accordance *it& S+19Cla+se 8:$< [O2taining Dispute Adjudication Board*s Decision]. T&e "arties s&all =ointl- a))oint a DAB 1- t&e date stated in t&e A))endi7 to Tender$ T&e DAB s&all co%)rise( as stated in t&e A))endi7 to Tender( eit&er one or t&ree s+ita1l- ?+alified )ersons ,Et&e %e%1ersF.$ If t&e n+%1er is not so stated and t&e "arties do not a'ree ot&er*ise( t&e DAB s&all co%)rise t&ree )ersons$

Module 01 Unit 0% Key Features of the FIDIC 1999 !ed "oo#$

Page 27 of 27