TCAMP Road Development Contract

TCAMP - Provincial Road Development Project
Contract Package –MPCLGS/PRDP/EP/02
Part A - Contract Data
Conditions Sub- Data

Clause
Employer’s name and address 1.1.2.2 & Secretary, Ministry of Internal & Home Affairs and
1.3 Provincial Councils & Local Government
Engineer’s name and address 1.1.2.4 & To be named

1.3
Contractor’s Representative’s 4.3 [insert the name of the Contractor’s Representative

name agreed by the Employer prior to Contract signature]
Key Personnel names 1.1.2.7 & [insert the name of each Key Personnel agreed by the
6.9 Employer prior to Contract signature]
Bank’s name 1.1.2.11 The World Bank
Borrower’s name 1.1.2.12 Government of the Democratic Socialist Republic of
Sri Lanka
Time for Completion 1.1.3.3 450 Days
Defects Notification Period 1.1.3.7 365 days.
Sections 1.1.5.6 Sectional Completion and taking over is acceptable.
(MINIMUM LENGTH OF ROAD wise SECTION IS
5KM or road wise)
Electronic transmission systems 1.3 Facsimile, Email.
Governing Law 1.4 Laws of Sri Lanka
Ruling language 1.4 English
Language for communications 1.4 English
Time for the Parties entering 1.6 Within 28 days after the contractor receives the
into a Contract Agreement Letter of Acceptance
Time for access to the Site 2.1 On commencement date.
Engineer’s Duties and Authority 3.1(b)(ii) (1)Variations resulting in an increase of the Accepted
Contract Amount in excess of 1% of the Initial
Contract Price for any one variation shall require
approval of the employer.
(2) The Engineer shall observe special care if the total
of variations exceed the 50% Physical contingency
provisions. He/She shall keep the employer informed
of such situation obtain his approval for all variations
beyond this limit.
Performance Security 4.2 The performance security will be in the form of an

Unconditional andon Demand Bank Guarantee as
per format given in Section X for the amount of
minimum five percent (5%) of the Accepted
Contract Amount from Guarantees issued by a
commercial bank registered with the Central
Bank of Sri Lanka. Any securities, issued by any
PART 3 - Section IX Particular Condition
1

Clause
other institute, will not be acceptable.
Environmental, Social, Health and 4.2 The ESHS Performance Security will be in the form
Safety (ESHS) Performance of a “Unconditional and on demand guarantee” in the
Security amount(s) of 1%of the Accepted Contract Amount
and in the same currency of the Accepted Contract
Amount.FromGuaranteesissued by a commercial
bank registered with the Central Bank of Sri
Lanka. Any securities, issued by any other
institute, will not be acceptable.
Normal working hours 6.5 Shall be in accordance with the labour regulations of
Sri Lanka.
Delay damages for the Works 8.7 & 0.05% of the Accepted Contract Amount per day.
14.15(b)
Maximum amount of delay 8.7 Five percent (5%) of the Accepted Contract Amount.
damages
Provisional Sums 13.5.(b)(ii) fifteen percent (15%)
Adjustments for Changes in 13.8 Refer to sub clause 13.8 in the Particular Condition
Cost of Contract Part B
2

Clause
Total advance payment 14.2 Twenty percent (20%) of the Accepted Contract
Amount.
Provisional sums and Contingencies shall be
excluded from the accepted Contract Amount when
20% Advance Payment is calculated.
The Advance shall be paid in four (04)
installments as follows.
5% - within 14 days of the submission of
Performance Security, Advance Payment
Securityand signing of Contract Agreement.
5% -after completion of following activities;
Mobilization, approval of construction
programme, submission of acceptable quality
assurance system, establishment of quality
control laboratory, Appointment of Full time
Project Manager, and submission of
construction drawings for the first 4km stretch
of the road package as specified in PART 2
Section VII (c) Appendix 11.
When contractor is ready to start the road
surfacing works at least 1km length after
preparation of the existing road surface to
satisfactory level of the Engineer.
5% - in order to claim this mobilization

installment, contractor shall mobilize the
asphalt plant, Asphalt mix design approval and
Asphalt concrete trial mix and trial laying
approval.
5% - in order to claim this mobilization

installment, contractor shall complete at least
1.0km of Asphalt surfacing road works.
The above payments shall be subjected to the

Contractor providing the Unconditionalon Demand
Bank Guarantee for the each installment of the
Advance payment(05%of the Accepted Contract
Amount) in the form given Section X in PART 3 ,
Guarantees issued by a commercial bank
registered with the Central Bank of Sri Lanka to
the Employer. Guarantees issued by any other
institutes will not be acceptable.
3

Clause
Repayment amortization rate of 14.2(b) Deduction shall commence in the next interim
advance payment certificate to the Contractor, has reached thirty
percent (30%) of the Accepted Contract Amount to
be recovered from each interim certificate shall be
calculated based on the following amortization
formula.
Amount of amortization shall be calculated using the
following formula.
Y =[(X-0.3)*Z)] / (0.9-0.3) where:
Y = Cumulative repayment.
Z = Total amount of advance.
X = Percentage value of the cumulative work done
expressed as a fraction.
Percentage of Retention 14.3 10%
Limit of Retention Money 14.3 5% of the Accepted Contract Amount
Plant and Materials
14.5(b)(i) This sub clause shall not apply.
Minimum Amount of Interim 14.6 2 % of the Accepted Contract Amount for initial
Payment Certificates three (03) Months period of the contract & 8% of the
Accepted Contract Amount thereafter.
Publishing source of commercial 14.8
interest rates for financial as per Sri Lanka Inter Bank Offered Rate
charges in case of delayed (SLIBOR) by Central Bank of Sri Lanka
payment
Maximum total liability of the 17.6 One hundred and fifteen percent (115%) of the
Contractor to the Employer Accepted Contract amount
Periods for submission of 18.1
insurance:
a. evidence of insurance. Within 14 days
b. relevant policies Within 28 days

Maximum amount of deductibles 18.2(d) Five Percent (5%)
for insurance of the Employer's
risks
Minimum amount of third party 18.3 Rupees Three million (Rs3, 000,000).
insurance
Date by which the DB shall be 20.2 28 days after the Commencement date
appointed
The DB shall be comprised of 20.2 One sole Member
List of potential DB sole 20.2 As agreed by both parties

members
4

Clause
Appointment (if not agreed) to 20.3 Institute of Engineer’s, Sri Lanka.
be made by
Rules of arbitration 20.6(a) Arbitration Act No 11 of 1995 of Democratic
Republic of Sri Lanka
Part B – Specific Provisions
The following Particular Condition of Contract (PCC) shall supplement the General
Conditions of Contract (GCC). Whenever there is Conflict, the provisions herein shall
prevail over those in the GCC.
Sub-Clause 1.1.2.4 “Engineer”
At the end of Sub-Clause 1.1.2.4 add:
The Chief Resident Engineer (CRE) of the Project Implementation Consultant unit (PIC)
will be the “Engineer to the Contract” for the Contract. He /She will be a Provincial Road
Development Authority/Department Engineer, nominated by relevant Province for the
contract.
Resident Engineer (RE) will be an Individual Consultant hired from outside the provincial
road agencies whose List of duties of RE will be issued at the Pre Bid Meeting.
Sub-Clause 1.1.2.7Contractor’s PersonnelKey Personnel
The following is added at the end of the sub-clause:
“Contractor’s Personnel includes Key Personnel as named in Part A - Contract Data.”

Sub-Clause 1.1.6.11Other Definitions
The following is added as Sub-Clause 1.1.6.11
“ESHS” means environmental, social (including sexual exploitation and abuse (SEA) and gender
based violence (GBV)), health and safety.
Sub-Clause 1.6 Contract Agreements
Delete the third sentence of this sub-clause and insert as follows;
“The cost of stamp duty and similar charges if any imposed by law in connection with entry
into the Contract Agreement shall be borne by the Contractor.”
At the end of the sub-clause add the following:
“The submission of acceptable Performance Security pursuant to Sub-Clause 4.2 is inter-

alia, a pre-requisite for entering into the Contract Agreement”
Sub-Clause 1.14 Joint and Several Liabilities
5
Replace this entire sub-clause as follows:
“If the Contractor is a Joint Venture of two partners/companies, all partners of the joint
venture shall be jointly and severally bound to the Employer for the execution of the entire
Contract in accordance with its Terms and Conditions and shall designate one partner of the
Joint Venture with authority to bind the Joint Venture, evidenced by a power of Attorney
signed by legally authorized signatories of all partners. The one Partner shall be authorised
to incur liabilities and to receive instructions for and on behalf of the partners of the Joint
venture, whether jointly or severally, and the entire execution of the Contract (including
payment) shall be carried out exclusively through the one partner. The composition or the
constitution of the Joint Venture shall not be altered without prior approval of the Employer.
In the event of default by any partner in the execution of his part of the Contract, the
Employer shall be so notified within 30 days by the one partner, or in the case of the one
Partner being the defaulter, by the other partner(s) of the Joint Venture. The one partner
shall, within 60 days of the said Notice, assign the work of the defaulting partner to any
other equally competent party acceptable to the Employer to ensure the execution of that
part of the Contract, as envisaged at the time of bid. Failure to comply with theabove
provisions will make the Contractor liable for action by the Employer under sub-clause 15.2
of the General Conditions of Contract (Section VIII)
If the one Partner should default, then this will be construed as default by the Contractor and
the Employer will take action under sub-clause 15.2 of the Conditions of Contract. (Sections
VIII)
Notwithstanding the permission to assignment of the work of the defaulting partner to any
other equally competent party acceptable to the Employer as mentioned above, all the
partners of the Joint Venture will retain full and undivided responsibility for the
performance of their obligations under the Contract and/or for satisfactory completion of the
Works.
Sub-Clause 2.2 Permits, Licenses or Approvals
Replace the text of sub-clause 2.2 by the following:
“The Employer (where he is in a position to do so) will provide only recommendation

letters, upon request of the Contractor, for applications of the Contractor for any Permits,
Licenses or approvals required by the Laws of the Country”
Sub-Clause 3.1 Engineer’s Duties and authority
Insert sub clause as follows before the last para
(e) Sub Clause 8.8 – Suspension of Works

(f) Sub Clause 13.5 – Provisional Sum.
Add additional Sub Clause
Sub-Clause 3.6 Progress Review Meetings

6
The Engineer will call for regular monthly progress review meetings at a time agreed by
both parties. The purpose of this meeting is to discuss the progress being made, the work
proposed for the next month and any problems having direct effect on the ongoing activities.
The Employer may attend such meetings or hold separate meetings whenever necessary.
The Engineer will record and issue minutes of such meetings to those attending the meeting
and to the Employer indicating responsibilities for any action to be taken as per the
Contract.
Sub-Clause 4.1 Contractor’s General Obligations
Insert in the fifth paragraph after the words “The Contractor shall, whenever required by the
Engineer, submit details of the arrangements and methods which the Contractor proposes
to adopt for the execution of the Works.”
“Notwithstanding Sub-Clause 8.1, the Contractor shall not carry out any Works, including
mobilization and/or pre-construction activities (e.g. limited clearance for haul roads, site
accesses and work site establishment, geotechnical investigations or investigations to select
ancillary features such as quarries and borrow pits), unless the Engineer is satisfied that
appropriate measures are in place to address environmental, social, health and safety risks
and impacts. At a minimum, the Contractor shall apply the Management Strategies and
Implementation Plans and Code of Conduct, submitted as part of the Bid and agreed as part
of the Contract. The Contractor shall submit, on a continuing basis, for the Engineer’s prior
approval, such supplementary Management Strategies and Implementation Plans as are
necessary to manage the ESHS risks and impacts of ongoing works. These Management
Strategies and Implementation Plans collectively comprise the Contractor’s Environmental
and Social Management Plan (C-ESMP). The C-ESMP shall be approved prior to the
commencement of construction activities (e.g. excavation, earth works, bridge and structure
works, stream and road diversions, quarrying or extraction of materials, concrete batching
and asphalt manufacture). The approved C-ESMP shall be reviewed, periodically (but not
less than every six (6) months), and updated in a timely manner, as required, by the
Contractor to ensure that it contains measures appropriate to the Works activities to be
undertaken. The updated C-ESMP shall be subject to prior approval by the Engineer.
Replace sub-clause 4.2 in its entirety with the following:
“4.2 Performance Security and ESHS Performance Security
The Contractor shall obtain (at its cost) a Performance Security for proper performance and,
if applicable, an Environmental, Social, Safety and Health (ESHS) Performance Security for
compliance with the Contractor’s ESHS obligations, in the amounts stated in the Contract Data
and denominated in the currency(ies) of the Contract or in a freely convertible currency
acceptable to the Employer. If amounts are not stated in the Contract Data, this Sub-Clause
shall not apply.
The Contractor shall deliver the Performance Security and, if applicable, an ESHS
Performance Security to the Employer within 28 days after receiving the Letter of
7
Acceptance, and shall send a copy to the Engineer. The Performance Security shall be
issued by a reputable bank or financial institution selected by the Contractor, and shall be in
the form annexed to the Particular Conditions, as stipulated by the Employer in the Contract
Data, or in another form approved by the Employer. The ESHS Performance Security shall
be issued by a reputable bank selected by the Contractor, and shall be in the form annexed to
the Particular Conditions, as stipulated by the Employer in the Contract Data, or in another
form approved by the Employer.
The Contractor shall ensure that the Performance Security and, if applicable, the ESHS
Performance Security are valid and enforceable until the Contractor has executed and
completed the Works and remedied any defects. If the terms of the Performance Security
and, if applicable, ESHS Performance Security specify its expiry date, and the Contractor
has not become entitled to receive the Performance Certificate (which, if applicable,
includes satisfactory performance of the ESHS obligations), by the date 28 days prior to the
expiry date, the Contractor shall extend the validity of the Performance Security and, if
applicable, the ESHS Performance Security until the Works have been completed and any
defects have been remedied.
The Employer shall not make a claim under the Performance Security and, if applicable, the
ESHS Performance Security, except for amounts to which the Employer is entitled under the
Contract.
The Employer shall indemnify and hold the Contractor harmless against and from all
damages, losses and expenses (including legal fees and expenses) resulting from a claim
under the Performance Security and, if applicable, the ESHS Performance Security to the
extent to which the Employer was not entitled to make the claim.
The Employer shall return the Performance Security and, if applicable, the ESHS
Performance Security to the Contractor within 21 days after receiving a copy of the
Performance Certificate.
Without limitation to the provisions of the rest of this Sub-Clause, whenever the Engineer
determines an addition or a reduction to the Contract Price as a result of a change in cost
and/or legislation, or as a result of a Variation, amounting to more than 25 percent of the
portion of the Contract Price payable in a specific currency, the Contractor shall at the
Engineer's request promptly increase, or may decrease, as the case may be, the value of the
Performance Security and, if applicable, the ESHS Performance Security in that currency by
an equal percentage.”
In the following sub-clauses the term “Performance Security” is replaced with:

“Performance Security and, if applicable, an Environmental, Social, Health and Safety
(ESHS) Performance Security”:
2.1- Right of Access to the Site

14.2- Advance Payment
14.6- Issue of Interim Payment Certificate
8
14.7(a)- Payment
14.9- Payment of Retention money
14.12- Discharge
15.2(a)- Termination
15.5- Employer’s Entitlement to Termination for Convenience
16.4(a)- Payment on termination”
Sub-Clause 4.7 Setting Out
Add the following at the end of the first Para:
“The Contractor shall be responsible for the provision of all necessary instruments,
appliances and labour in connection with the foregoing responsibilities. The checking of
any setting-out of any line or level by the Engineer shall not in any way relieve the
Contractor of his responsibility for the accuracy thereof and the Contractor shall carefully
protect and preserve all bench-marks, sight-rails, pegs and other things used in setting-out
the Works”.
Sub-Clause 4.11 Sufficiency of the Accepted Contract Amount
Sub-Para (a) shall read as follows:
“have satisfied himself as to the correctness and sufficiency of the Accepted Contract
Amount, rates and prices stated in the Bill of Quantities, and”
Sub-Clause 4.12 Unforeseeable Physical Conditions
Delete the last sentence from Para 6 i.e. “However, the net effect of all adjustments under
sub-paragraph (b) and all these reductions, for all the physical conditions encountered in
similar parts of the works, shall not result in a net reduction in the Contract price.”
Sub-Clause 4.14 Avoidance of Interference
The first Para shall read as follows:
“All operations necessary for the execution and completion of the Works and the remedying
of any defect therein shall, so far as compliance with the requirements of the Contract
permits, be carried on so as not to interfere unnecessarily or improperly with:
(a) the convenience of the public, or

(b) the access to, use and occupation of public roads, railways, footpaths and any other
Right of Way to or of properties whether in the possession of the Employer of any other
person”
Sub-Clause 4.17 Contractor’s Equipment
Add the following sentence after the first sentence:

9
“All contractor’s equipment, temporary works and materials provided by the Contractor at
the site of the Works shall be of the capacity and quality approved by the Engineer”
Insert an additional Para as follows.
Contractor’s equipment which is owned by the Contractor (either directly of indirectly) shall
be deemed to be the property of the Employer with effect from its arrival on the site. This
vesting of property shall not:
(a) Affect the responsibility or the liability of the Employer.
(b) Prejudice the right of the Contractor to the sole use of the vested Contractor’s
Equipment for the purpose of the works, or
(c) Affect the Contractor’s responsibility to operate and maintain Contractor’s

Equipment.
(d) If the Contractor foreseen the utilization of any equipment or machine for a
considerable duration he/she should forthwith inform the engineer & obtain his/her
consent to remove such machine or equipment from the site.
The property in each item shall be deemed to revert in the Contractor when he is entitled
either to remove it from the Site or to receive the Taking Over Certificate for the Works,
which ever occurs first.
Sub-Clause 4.18 Protection of the Environment
Insert following paragraph at the end of Sub-clause 4.18:
The Contractor shall adhere to all environmental requirements in the Specification. If the
Contractor fails to comply these requirements, the Engineer shall order a third party to
rectify the shortcomings and the Employer shall recover the cost of such works from the
Contractor.
Sub-Clause 4.19 Electricity, Water and Gas.
Delete this sub- clause and insert as follows:

The Contractor shall be responsible for the provision of all power, water and other services
he will require for the works or for his own use.
Sub-Clause 4.21
Progress Reports
Sub-Clause 4.21 (g) is replaced by the following:

“4.21 (g) the Environmental, Social, Health and Safety (ESHS) metrics set out in
Appendix C”
10
At the end of, and as part of Sub-Clause 4.21 add a new paragraph as follows:
“The Contractor shall provide immediate notification to the Engineer of incidents in
the following categories. Full details of such incidents shall be provided to the
Engineer within the timeframe agreed with the Engineer.
(a) confirmed or likely violation of any law or international agreement;
(b) any fatality or serious (lost time) injury;
(c) significant adverse effects or damage to private property (e.g. vehicle accident,
damage from fly rock, working beyond the boundary)
(d) major pollution of drinking water aquifer or damage or destruction of rare or
endangered habitat (including protected areas) or species; or
(e) any allegation of gender based violence (GBV), sexual exploitation or abuse,
sexual harassment or sexual misbehavior, rape, sexual assault, child abuse or
defilement, or other violations involving children.
Insert a new Sub-Clause at the end of section 4.24 as follows
Sub-Clause 4.25 Compensation for Land Occupied or Used by Contractor
No land shall be occupied or used by the Contractor without the full consent and agreement
of affected persons or as otherwise agreed by the Engineer. The Contractor shall fully
compensate the occupier of owner of any land used or occupied by the Contractor with such
compensation in accordance with Applicable law of Sri Lankafor relocation, resettlement or
compensation and to the satisfaction of the affected person(s) or as agreed by the Engineer.
The Contractor shall reinstate all properties whether public or private which are damaged in
consequence of the execution and maintenance of the Works to a condition specified at least
equal to that obtaining before his first entry on them.
If, in the opinion of the Engineer, the Contractor shall failed to take reasonable and prompt
action to fulfil his obligations in the matter of reinstatement, the Engineer will inform the
Contractor in writing of his opinion in which circumstances the Employer reserves the right
to employ other to do the necessary work of reinstatement and to deduct the cost thereof
from any money due or which become due from the Employer to the Contractor.
Sub-Clause 6.2 Rate of Wages and Condition of Labour
Insert the following Paras at the end of last Para
The minimum age of labour to be employed shall be 18 years unless other wise stated in the
labour laws of the Government of Sri Lanka.
Sub-Clause 6.8 Contractor’s Superintendence
Insert the additional para at the end of sub Clause 6.8:
A reasonable proportion of the Contractor’s Superintending staff shall have a working

knowledge of the English Language.
11
Sub-Clause 6.9
Contractor’s Personnel
Key Personnel
Sub-Clauses 6.9 (e) is amended by inserting “or” at the end:
“6.9 (e)……; or”
Sub-Clauses 6.9 (f) is inserted as follows:
“6.9 (f) undertakes behavior which breaches the Code of Conduct (ESHS) (e.g.
spreading communicable diseases, sexual harassment, gender based violence,
(GBV), sexual exploitation or abuse, illicit activity or crime).”
After the sentence: “If appropriate, the Contractor shall then appoint (or cause to be
appointed) a suitable replacement person.” the following is added as a new paragraph:
“The Contractor’s Personnel includes Key Personnel. If the Contractor intends to replace a
Key Personnel, the Contractor shall, not less than 30 days before the intended date of
replacement, give notice to the Engineer, the name, address, academic qualifications and
relevant experience of the intended replacement Key Personnel. The Contractor shall not,
without the prior consent of the Engineer, revoke the appointment of the Key Personnel or
appoint a replacement.”
Insert a new Sub-Clause at the end of section 6.24 as follows
Sub-Clause 7.1 Manner of Execution
Add the following at the end:
The Contractor is encouraged, to the extent practicable and reasonable, to use Goods from
Sources within Sri Lanka and the Works area.
Sub-Clause 7.8 Royalties
Add in the first line of Para (a):
“including materials obtained from the Government lands or borrow areas”.
Sub-Clause 8.1 Commencement of works
The commencement date shall be within 28 days after the contractor receives the letter of
acceptance .
12
Sub-Clause 8.3 Programme
Add below d (ii) as (iii)
(iii) A detail Cash Flow
Sub-Clause 8.4 Extension of Time for Completion
Delete the words “entitled to an extension of time“ and substitute “entitled to have his claim
for an extension of time considered”.
Sub-Clause 10.1 Taking Over of Works and Sections
Add the following after the first paragraph of 10.1
In no circumstances will any part of the Permanent Works be considered substantially

completed until at least the following components, if provided in the Contract, are complete
to the satisfaction of the Engineer:
i. Bituminous work
ii. Road shoulders
iii. Side drains
iv. Culverts and bridges
v. Retaining walls and masonry works
vi . Grassing and slope protection
vii. Safety measures
viii. House access
In exceptional circumstances and where the Engineer is of the view that the safety of the
public and the Works are not likely to be placed at risk and at his sole discretion, the
Engineer may allow any of the components, provided it is substantially (95%) completed, to
be completed with in the Defects Notification Period.
Before the works are taken over in accordance with this Clause 10, the Contractor shall
supply all drawings as appropriate of the work-as-built. Unless otherwise agreed, the work
shall not be considered to be completed for the purpose of Taking Over until such drawings
have been supplied to the Employer.
Sub-Clause 10.2 Taking Over of Parts of the Works
The first Para shall read as follows:
“The Engineer may, at the sole discretion of the Employer; issue a Taking Over Certificate,
for any section of the Permanent Works listed at Supplementary Information (Part 2 Section
VII –e) that is completed in full
Sub-Clause 12.3 Evaluation

13
Replace Sub-Para (a) (ii) as follows:

“(a) (ii) the quantity of the item provided for in the Bill of Quantities accounts for more than
2% of the Accepted Contract Amount”.
Delete sub-Para “(a) (iii)” and change sub-Para “a (iv)” to sub-Para “a (iii)”
Sub-Clause 13.1 Right to Vary
Add the following Parabefore the last para
“No such variation shall in any way vitiate or invalidate the Contract, but the effect, if any,
of all such variations shall be valued in accordance with Clause 12.3. Provided that where
the issue of an instruction to vary the Works is necessitated by some default of or breach of
Contract or for which he is responsible, any additional cost attributable to such default shall
be borne by the Contractor”.
Add the following Para at the end of the last Para
“Provided also that no varied work instructed to be done by the Engineer shall be valued
unless within 14 days of the date of such instruction and, other than in the case of omitted
work, before the commencement of the varied work, notice shall have been given either:
(a) by the Contractor to the Engineer of his intention to claim extra payment or a varied
rate or price, or
(b) by the Engineer to the Contractor of his intention to vary a rate or price”
Sub-Clause 13.8 Adjustment for Changes in Cost
Delete Sub-Clause 13.8 in it’s entirely and substitute the following:

The amount computed from the formula given under this sub-clause, in respect of the rise or
fall in the costs of labour, materials and construction equipment and other inputs to the
works shall be added to or deducted from the payments to the contractor if the contract price
is subjected to adjustment due to fluctuation of prices and stated in the Contract Data.
a. The adjustment to the Contract price in respect of changes in Cost shall be

determined on the basis of the following formula:
F = 0.966(V-Vna) x ∑ Px(Ixc-Ixb)
100 Ixb
all
inputs
where:
F = Price adjustment for the period concerned

lxb = Base index for input X, published by CIDA
14
lxc = Current index for input X, published by CIDA

Px = Percentage cost contribution of input X
V = Valuation of work done during the period
Vna = Value of non-adjustable element during the period
a) Contract Price Adjustment computed on the basis of this formula may be either an
addition to or a deduction from the Contract Price.
Other Changes
b) To the extent that full compensation for any rise or fall in cost to the Contractor is
not covered by the provisions of this or other Clauses in the Contract the unit rates and
prices included in the Contract shall be deemed to include amounts to cover the
contingency of such rise or fall in cost.
Source of Indices
c) The indices applicable to the operation of this formula are those compiled and
published by the Construction Institute of Development Authority, Sri Lanka, in the
CIDA Bulletin of Construction Statistics.
Input Percentage
d) The "input percentage" means the proportionate percentage contribution of any
input, in terms of the cost of construction of the works, computed at the time of
inviting bids, and given below:
SIDescription PxNo:
M3 Cement 0.31
M7 Metal 5.71
M8 Sand 2.58
M30 Bitumen 80/100 2.23
M30-B Bitumen 60/70 34.52
M55 Road Marking paint 2.63
M48 ABC road metal 1.78
L1 Skilled Labour 1.80
L2 Semi skilled labour 8.74
L3 Unskilled labour 3.20
P1 Small equipment 7.95
P2 Heavy equipment 15.90
P3 Fuel 2.65
TOTAL 90 %
The weightings for each of the Inputs of cost given above in this Clause may be adjusted
only if, in the opinion of the Engineer, they have been rendered unreasonable,
unbalanced or inapplicable as a result of variations.
Non-Adjustable Elements
e) "Non Adjustable Elements" shall consist of:

The work done under the following items which shall not be considered for
computation of price adjustment:
15
i. All items of work listed in Bill No 01:

Preliminary and General items:
ii. All work carried out under Day Works:
iii. Extra works and Additional works
done by order of the Engineer and valued based on prices
prevailing at the times such works were executed or priced at
Day Works rates: and
iv. All work on Provisional items or Lump
Sums
(e) The "Current Valuation" means the gross value of work duly
executed during the valuation period being reviewed.
Hence, V=(Vc+Mc) - (Vp+Mp)

Where,
Mc = 75% of the value of materials
Delivered to the site but has not been used for
permanent works on current valuation
Mp=75% of the value of materials delivered to the site but has not
been used for permanent works on previous valuation
Vc= Cumulative value of work done up to current claim
Vp= Cumulative value of work done up to previous claim
Base Indices
(h) "Base indices" means the indices applicable to the calendar month preceding
the calendar month in which the date fixed for submission of the bid falls.
Current Indices
(i) The Current indices used for calculation of price adjustment in the respect of the first
interim bill shall be the indices pertaining to the first month after the Commencement
of the Contract. The current indices applicable in respect of any other interim claim or
the final claim shall be the indices prevailing for the calendar month following the
month in respect of which the previous valuation was done.
If the Contractor fails to complete the Works within the time for completion
prescribed under Sub-Clause 8.2 (Time for Completion)or 8.4 (Extension of Time
for Completion) the price adjustment or the work performed after the due date of
completion as described above shall be made using the current indices prevailed at
the due date for completion.
Sub-Clause 14.1 Contract Price
Delete sub paragraph (e) in its entirety.
Sub-Clause 14.2 Advance Payment

16
At end of first paragraph add the following:
An acceptable Form of Guarantee is included in PART-3 Section X of these Bid

Documents.
Each Advance Payment guarantee, which is equal to 5% of the Accepted Contract Amount,
shall be releasedafter an Unconditional on Demand Bank Guarantee,issued by a commercial bank
registered with the Central Bank of Sri Lanka, submitted to the Employer. Any guarantees,
issued by any other institute, will not be acceptable.
In paragraph 5, add additional subparagraph:
(c) Repayment of the advance shall be completed when cumulative amounts certified for
payment (excluding the advances) reaches 90% of the Accepted Contract Amount stated in
the Contract Agreement.
Sub-Clause 14.5 Plant and Materials Intended for the Works
Replace the words “appear to be” with the word “are” in sub-Para c (ii)
Sub-Clause 14.7 Payment:
Last para of 14.7 to be deleted
Sub Clause 15.1 Notice to Correct

At end of first paragraph add the following
When the actual work progress is 10% behind the targets planned, the Engineer
shall take action to terminate the contract while issuing “Notice to correct” to
mitigate the employer risk.
Sub-Clause 18.1 General requirements for Insurance:
Sub paragraph of para 6 change as follows
The Contractor shall within the respective periods stated below, submit to the Employer:
(a) Evidence that the insurances described in Clause 18 have been effected prior to the start
of the Work at site; and
(b) Copies of the policies for the insurance described in Sub-Clause 18.2 (Insurance for
Works and Contractors Equipment) and Sub-Clause 18.3 (Insurance against injury to
Persons and Damage to Property) within the 28 days of the commencement date.
Sub-Clause 20.6 Arbitration

17
Delete first paragraph and replace with:
Unless settled amicably, any dispute in respect of which the Dispute Adjudication Board (DAB)’s
decision (if any) has not become final and binding shall be finally settled under arbitration in
accordance with Arbitration Act No 11 of 1995 of the Democratic Socialist Republic of Sri Lanka.
Add the following new Clauses 21, 22

.
Sub-Clause 21 Drawings and Photographs of the Works
The Contractor shall not disclose details of drawings furnished to him and works on which
he is engaged without the prior approval of the Engineer in writing. No photograph of the
works or any part of there of or equipment employed there on shall be taken or permitted to
the contractor by any of his employee or of sub contractor without the prior approval of the
Engineer in writing and no such photograph shall be published or otherwise circulated
without the approval of Engineer in writing.
Sub-Clause 22 Use of Explosives
Where the use of explosives is so provided or ordered or authorized, the Contractor shall
comply with the requirements of the following sub-clauses of this clause besides the law of
the land as applicable.
The contractor shall at all times take every possible precaution and shall comply with
appropriate laws and regulations relating to the importation, handling, transportation,
storage and use of explosives and shall and at all times when engaged in blasting operations,
post sufficient warning flagmen, to the full satisfaction of the Engineer.
The Contractor shall at all times make full liaison with and inform well in advance and
obtain such permission as is required from all Government Authorities, public bodies and
private parties whatsoever concerned or affected or likely to be concerned or affected by
blasting operations.
The Contractor shall pay all license fees and charges, which may be, required for storage of
explosives or in respect of any other matter whatsoever.
18

TCAMP Road Development Contract

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TCAMP - Provincial Road Development Project

Contract Package –MPCLGS/PRDP/EP/02

Part A - Contract Data

Conditions Sub- Data

Engineer’s name and address 1.1.2.4 & To be named

Contractor’s Representative’s 4.3 [insert the name of the Contractor’s Representative

Performance Security 4.2 The performance security will be in the form of an

Conditions Sub- Data

PART 3 - Section IX Particular Condition

Conditions Sub- Data

5% - in order to claim this mobilization

5% - in order to claim this mobilization

The above payments shall be subjected to the

PART 3 - Section IX Particular Condition

Conditions Sub- Data

b. relevant policies Within 28 days

List of potential DB sole 20.2 As agreed by both parties

PART 3 - Section IX Particular Condition

Conditions Sub- Data

Sub-Clause 1.1.2.4 “Engineer”

At the end of Sub-Clause 1.1.2.4 add:

Sub-Clause 1.1.2.7Contractor’s PersonnelKey Personnel

The following is added at the end of the sub-clause:

“Contractor’s Personnel includes Key Personnel as named in Part A - Contract Data.”

The following is added as Sub-Clause 1.1.6.11

Sub-Clause 1.6 Contract Agreements

Delete the third sentence of this sub-clause and insert as follows;

At the end of the sub-clause add the following:

“The submission of acceptable Performance Security pursuant to Sub-Clause 4.2 is inter-

Sub-Clause 1.14 Joint and Several Liabilities

PART 3 - Section IX Particular Condition

Replace this entire sub-clause as follows:

Sub-Clause 2.2 Permits, Licenses or Approvals

Replace the text of sub-clause 2.2 by the following:

“The Employer (where he is in a position to do so) will provide only recommendation

Sub-Clause 3.1 Engineer’s Duties and authority

Insert sub clause as follows before the last para

(e) Sub Clause 8.8 – Suspension of Works

Add additional Sub Clause

Sub-Clause 3.6 Progress Review Meetings

Sub-Clause 4.1 Contractor’s General Obligations

Replace sub-clause 4.2 in its entirety with the following:

“4.2 Performance Security and ESHS Performance Security

In the following sub-clauses the term “Performance Security” is replaced with:

2.1- Right of Access to the Site

PART 3 - Section IX Particular Condition

Sub-Clause 4.7 Setting Out

Add the following at the end of the first Para:

Sub-Clause 4.11 Sufficiency of the Accepted Contract Amount

Sub-Para (a) shall read as follows:

Sub-Clause 4.12 Unforeseeable Physical Conditions

Sub-Clause 4.14 Avoidance of Interference

The first Para shall read as follows:

(a) the convenience of the public, or

Sub-Clause 4.17 Contractor’s Equipment

Add the following sentence after the first sentence:

Insert an additional Para as follows.

(a) Affect the responsibility or the liability of the Employer.

(c) Affect the Contractor’s responsibility to operate and maintain Contractor’s

Sub-Clause 4.18 Protection of the Environment

Insert following paragraph at the end of Sub-clause 4.18:

Sub-Clause 4.19 Electricity, Water and Gas.