This project is

funded by the Support to Social

European Union
Development Egypt

Training on EC Conditions of Contract

Course 1 – Stakeholders associated

with Work Contracts

Technical
Assistance
This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Contract Management Contracting Authority EC Delegation
PIU SFD

Supervisor: Water Company

TAT Consultant
Asyut, Beni Suef & Fayoum Grontmij | Carl Bro A/S

Water Company Design Contractor

Dept

Lines of communication
Contractual relationships

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

EC Delegation
The EC Delegation represents the EC which is the funding
agency as specified in the Financing Agreement.
The EC has delegated the task of managing the works
contracts to the Contracting Authority, i.e. the SFD. The
works contracts should be managed on the basis of the
EC’s contracting rules (PRAG).
At any time, the EC may audit the works projects to check
if the contracts are being implemented consistent with the
PRAG and that funds are eligible.
The ECD has also employed a Consultant to provide
technical assistance support to the SFD and water
companies.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Parties to the Works Contract(s)

The Contract, as a legally binding agreement, imposes
duties and responsibilities on the parties that entered into
the agreement, i.e. the Contracting Authority and the
Contractor.
Contracting Authority
SFD is the body responsible for implementation as defined
in the Financing Agreement, i.e. responsible for tendering,
contracting, payments, monitoring and reporting to the
EC.
SFD is also the “Contracting Authority” in the EC works
contract documents and will be the “Contracting
Authority” for all supervision contracts.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Parties to the Works Contract(s)

Contractor
The Contractor constructs the Works based on the
Contracting Authority’s design and takes responsibilities
for his actions, under law as well as under the Contract.
He may appoint a Contractor’s Representative, with the
consent of the Supervisor.
The Contractor’s obligations are on the basis that he has
control of the site and so has the responsibility for the
care of the Works, for security, safety and other duties.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Design Responsibility
The responsibility for any error in the design or
calculations that are included in the Technical
Specifications remains with the Contracting Authority
(design was prepared by the Water Companies).

The Contractor is required to give notice of any error that

is found and is entitled to an extension of time with costs
as a consequence of any error that could not reasonably
have been found.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Relationship with Supervisor

The Contracting Authority has the duty to state what he
wants, to provide the site, pay for the project and avoid
doing anything that would prevent the Contractor from
carrying out its obligations.

The Supervisor is not a party to the Contract, but is

appointed by the Contracting Authority to carry out
duties that are stated in the Contract.

The Supervisor is obliged to request approval from the

Contracting Authority awarding extensions of time or
certifies additional payments.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Supervisor
The person appointed by the Contracting Authority to act
as the Supervisor for the purpose of the Contract and
named in the Appendix to the Tender. FIDIC terminology
is “Engineer”.

He has no authority to amend the Contract.

If he is required to obtain the approval of the Contracting

Authority before exercising a specified authority, the
requirements must be as stated in the Special Conditions.

The Supervisor may assign duties and delegate authority

to the Supervisor’s Representative.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Instructions of the Supervisor

The Supervisor may issue to the Contractor instructions
which are necessary for the execution of the Works and
the remedying of defects (in accordance with the
Contract).

The Contractor shall only take instructions (which should

be written) from the Supervisor or his Representative.

Supervisor’s tasks are also defined in the Appendices to

the Technical Specifications.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Project Implementation Unit

Whilst the Water Company(s) acts as the Supervisor, the
PIU (acting on behalf of the Contracting Authority) will also
be involved in the site supervision activities, primarily to
secure prompt consultation with the Contracting Authority
regarding the works, and to confirm payments.
Irrespective of the involvement of the PIU staff in the site
supervision activities, the PIU shall not deal directly with
the Contractor.
The mechanism of co-operation between the Supervisor
and the PIU must be such that it avoids any delay or
discontinuity in the decision making process and it must not
cause any dilution of the Supervisor’s responsibility.

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Project Implementation Unit

The Supervisor will act on behalf of both the Contracting Authority and
Beneficiary(s) towards the Contractor in any matter related to the works
contracts.
The PIU will secure the overall co-ordination and management of the
different contracts and contract components included in the SSD
programme, on behalf of the SFD and Final Beneficiary(s).
Working together with the Supervisor for the supervision of the contracts.
Giving consent or approval to the different contract decisions where such
actions are required from the Contracting Authority.
Monitoring the technical and financial implementation of the contracts and
consequently endorsing the monthly Interim Payment Certificates issued by
the Supervisor.
Securing the information and publicity arrangements as required in the
Financing Agreement.
Reporting to the Contracting Authority.
Implementing (together with the Supervisor) all the management support
to Contracting Authority.
Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635
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This project is funded by the
European Union Support to Social Development Egypt

Training Course on EC General Conditions of Contract

Key Documents for PIU

The Financing Agreement (between the EC and the
Government of Egypt).

The Works Contract(s), incl. Special Conditions of Contract

and General Conditions of Contract and Technical
Specifications. Note that addenda to the Technical
Specifications also defines tasks for the Supervisor.

Technical Proposal of the Supervisor (Services Contracts).

The Practical Guide to EC Contracting Rules

(http://ec.europa.eu/europeaid/work/procedures)

Training on EC Conditions of Contract http://www.eu-ssd.com 2008/148-635

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