Professional Documents
Culture Documents
The Construction Contract known as the Red Book , the Plant and
Design/Build Contract known as the Yellow Book and the EPC/Turnkey
Contract known as the Silver Book each contained 20 clauses. Where
possible these clauses were identical across all three forms meaning that
knowledge of the contents of one form was to some extent transferable
across all three forms.
In case, if the employer failed to give possession within time, the contractor
needs to give notice to the engineer and under sub-clause, there is provision
for such delay but with payment of any such Cost plus reasonable profit,
which shall be included in the Contract Price.
Engineers also have to agree on the quantities and amounts due for the use of
employer's equipment.
Engineers must take care of the reduction in delay damages for the
remaining works.
When a contractor fails to remedy defects, the employer can get that work
done by the other contractors at the contractor’s cost who caused delay.
Engineers must agree to decide the Contract price where the works are to be
measured and valued for payment under works to be measured and method
of measurement.
But where the Engineer shall agree or determine the reduction in the
Contract Price, stemming from a Value Engineering proposal from the
Contractor, which is adopted by the Employer and the division of any benefit
to the Employer as between the Employer and the Contractor.
If the progress of work is falling behind then engineers are required to agree
on revised payment instalments.