Conditions of Contract & Form of Agreement

Conditions of Contract & Form of Agreement

Section – C

Conditions of Contract & Form of Agreement

Section - C

CONDITIONS OF CONTRACT

AND FORM OF AGREEMENT

Part 1 - GENERAL CONDITIONS :

The Conditions of Contract shall be the Conditions of Contract (International) for works of Civil Engineering Construction, as prepared by the Federation Internationale des Ingenieurs - Conseils (F.I.D.I.C.) and the Federation Internationale Europeenne de la Construction (F.I.E.C.) - Fourth Edition dated March 1987 or latest, as modified and added by the following Part 2 - Conditions of Particular Applications which shall be read and construed with the General Conditions as if they were incorporated therewith. The clauses in Part 2 - Conditions of Particular Applications shall take precedence over the clauses of General Conditions of Contract.

PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS :

The following clause reference refer to the Clause Numbers in the General Conditions described above :

Clause

1. Definitions

(a) "Employer" M/s:

(b) "Engineer" M/s ManSam Contracting Pvt Ltd

(c) “Engineer’s

Representative” The Supervising Officer of the Engineer duly appointed in writing as the Engineer’s representative by the Engineer.

(d) "Specification" “Specification” means those specifications incorporated in these Tender and Contract Documents and any further specifications implied or shown on the Drawings and any modifications or addition thereto as may from time to time be approved in writing by the Engineer.

2 Duties & Powers of Engineer and

Engineer’s Representative

(1) a) The Engineer shall carryout such duties in issuing decisions, certificates and orders as specified in the Contract.

b) Before exercising his authority under the following Clauses of the Contract, the engineer is required to obtain the specific approval of the Employer:

Clause 2.3 Authority to Delegate

Clause 2.4 Appointment of Assistants

Clause 4.1 Sub-contracting

Clause 15.1 Contractor's Superintendence

Clause 44.1 Extension of Time

Clause 48 Taking-Over Certificate

Clause 51.1 Variations

Clause 52.1 Valuation of Variations

Clause 52.2 Power to fix Rates

Clause 58.2 Use of Provisional Sums

Clause 60.8 Final Certificate

Clause 62.1 Defects Liability Certificate.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

5 Language & Law

(1) “(a) The Contract Documents shall be drawn up in English & Arabic and in case of any dispute, the Arabic text will be taken in to consideration.

(b) The Contract shall be governed by and construed according to the laws and customs for the time being in force in Dubai and the United Arab Emirates”.

10 Performance Bond

The Contractor shall furnish the Employer within 7 days after receipt of the Letter of Acceptance, a guarantee from a Bank locally registered and approved by the Employer, in respect of due performance of the Contract as per the attached draft (refer page C/19) in the sum of 10% (ten percent) of the Contract Price as stated in the Appendix to the Form of Tender, valid up to the issue of a certificate of completion in respect of the works in accordance with Clause 48 thereof.

10(4) Insert sub-clause 10(4) :

- The Performance Guarantee shall be governed by and construed in all respects in accordance with the Laws of Dubai and United Arab Emirates.

14(1) Programme to be Furnished

Delete this sub-clause and substitute the following :

“(a) The Contractor shall within 21 days of receiving the order to commence the Works, pursuant to Clause 41 hereof, submit to the Engineer for his approval a programme showing the procedure in which he proposes to carry out the Works.

(b) The programme shall be in the form of a Critical Path Method (CPM) network analysis which shall show the earliest start (ES) and latest finish (LF) dates, the length of duration and total float time applicable to each activity. The critical path/paths shall be clearly highlighted. Manpower and plant requirements to be indicated

(c) The approved programme shall be the sole basis of assessing any extension/extensions of time in accordance with Clause 44 herein and each month the Contractor shall submit details of any revisions to the programmed sequences, logic and times”.

(d) Contractor to submit schedule of submission of Sub-contractors, shop-drawings, material procurements, etc.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

15(1) Contractor’s Superintendence

The Contractor shall give or provide all necessary superintendence during the execution of the Works and as long thereafter as the Engineer may consider necessary for the proper fulfilling of the Contractor’s obligations under the contract. The Contractor, or a competent and authorized agent or representative approved of in writing by the Engineer which approval may at any time be withdrawn, is to be constantly on the Works and shall give whole time to the superintendence of the same. Such agent must be sufficiently fluent in both the English and Arabic languages as to be able to interpret the Engineer’s requirements into either language to the satisfaction of the Engineer.

If the approval of the Engineer is withdrawn, the Contractor shall, as soon as is practicable, having regard to the requirement of replacing him as hereinafter mentioned, after receiving written notice of such withdrawal, remove the agent from the Works and shall thereafter employ him again on the works in any capacity and shall replace him by another agent approved by the Engineer. Such authorized agent or representative shall receive, on behalf of the Contractor, directions and instructions from the Engineer, or subject to the provision of Clause 2-2 hereof, the Engineer’s Representative.

20(4) Employer's Risk

Delete sub-clause 20.4(h).

21(1) Insurance of Works etc.

Sub Clause 21.1(a) is deleted and is substituted as follows:

“(a) The works for the time being executed to the estimated current Contract value thereof plus the percentage (if any) named in the Appendix to the Form of Tender to cover professional fees, or such additional sum as may be specified in Part II in the Clause numbered 21 together with the materials for incorporation in the works at their replacement value”.

24(1) Accident or Injury to Workmen

After each reference to Employer, insert "and Engineer".

26(1) Compliance with statutes Regulations.

Add the following Phrase at the end of Clause 26.1:

“Except for any or all charges required to be given or paid in respect of the permanent service connections which shall be the responsibility of the Employer.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

26(1) Compliance with statutes Regulations [Cont'd]

Add to paragraph as follows:

“The Contractor must allow in his tender for all costs that may be incurred by him in complying with the provisions of this Clause including the cost of arranging for, and collecting all permits and obtaining all approvals and for paying all charges levied by the various authorities in respect of permanent service connections. Employer in accordance with Clause 26(1)” shall reimburse the Contractor only the amounts paid to various Local Government Authorities only for obtaining permanent service connections".

34 Labour

Add the following Sub-Clauses:

34(1) Observance by Sub-Contractors

The Contractor shall be responsible for observance by all Sub-contractors, whether nominated or otherwise, of the provisions of this Clause.

34(2) Compliance with Local Labour Laws

The Contractor shall ensure his compliance with all laws and regulations relating to the employment of labours as shall from time to time be enforced in the United Arab Emirates and shall be deemed to have included in his tender price for such due compliance.

34(3) Expatriate Personnel and Labour & Their Health and Safety

The Contractor shall make his own arrangements for obtaining immigration approval for expatriate personnel or labour and shall be held entirely responsible thereafter.

Due precautions shall be taken by the Contractor, and at his own cost, to ensure the safety of his staff and labour and, in collaboration with and to the requirements of the Local Health Authorities, to ensure that medical staff, first aid equipment and stores, sick bay and suitable ambulance service are available at the camps, housing and on the Site at all times throughout the period of the Contract and that suitable arrangements are made for the prevention of epidemics and for all necessary welfare and hygiene requirements.

42(1) Possession of Site

The Contractor will be given possession of the entire site for the full contract period.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

45 Restrictions on Working Hours

Delete this Clause and substitute the following :

“(1) Subject to any provision to the contrary obtained in the Contract, none of the Works shall, save as hereinafter provided, be carried on during the night or on Fridays or on declared public holidays in U.A.E. without consent of the Engineer after due consultation with the Employer and the Contractor, except when work is unavoidable or absolutely necessary for the saving of life or property or for the safety of the Works, in which case the Contractor shall immediately advise the Engineer. Provided that the provisions of this Clause shall not be applicable in the case of any work which it is customary to carry out by multiple shifts.

(2) In the event that the Engineer or Engineer’s Representative or any of their assistants appointed pursuant to Clause 2 are obliged to supervise the Contractor’s operations in excess of 8 hours per working day, or on Fridays or declared Public Holidays in U.A.E., the cost to the Engineer of such overtime as stipulated below shall be paid to him. Payment will be made to the Engineer by the Employer who shall deduct the agreed amount from monies certified by the Engineer’s payment certificates as being due to the Contractor.

Dhs. 150.00 per hour for Overtime on normal working days.

Dhs. 200.00 per hour for Overtime on Fridays and declared public holidays”.

47(1) Liquidated Damages for Delay

In the fifth line, delete the words “and not as a penalty”.

49(1) Defects Liability

The defects liability period shall be 12 months from the date of issue of the Certificate of Completion in respect of the works.

51(2) Instructions for Variations

In the fifth line, delete the works “stated in the Bill of Quantities” and substitute “inserted by the Contractor in the Schedule of Rates”.

52 Delete Clause 52.1 and 52.2 of Part 1 - General Conditions and add the following :

52(1) Valuation of Variations

All variations referred to in Clause 51 and any additions to the Contract Price which are required to be determined in accordance with Clause 52 (for the purpose of this Clause referred to as "varied work"), shall be valued at the rates and prices set out in the Contract, if in the opinion of the Engineer and Employer, the same shall be applicable.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

52(1) Valuation of Variations [Cont'd]

If the Contract does not contain any rates or prices applicable to the varied work, the rates and prices in the Contract shall be used as the basis for valuation so far as may be reasonable, failing which, after due consultation by the Engineer and Employer, suitable rates or prices shall be agreed upon between the Engineer, Employer and the Contractor which will be based on prevailing market rates. In the event of disagreement, the Engineer and Employer shall fix such rates or prices as are, in his opinion, appropriate and shall notify the Contractor accordingly, with a copy to the Employer. Until such time as rates or prices are agreed or fixed, the Engineer shall determine provisional rates or prices to enable on-account payments to be included in certificates issued in accordance with Clause 60.

52(2) Power of Engineer to Fix Rates

Provide that if the nature or amount of any varied work relative to the nature or amount of the whole of the Works or to any part thereof, is such that, in the opinion of the Engineer, the rate or price contained in the Contract for any item of the Works is, by reason of such varied work, rendered inappropriate or inapplicable, then, after due consultation by the Engineer, Employer and the Contractor, a suitable rate or price shall be agreed upon between the Engineer, Employer and the Contractor. In the event of disagreement, the Engineer with the consent of the Employer shall fix such other rate or price as is, in his opinion, appropriate and shall notify the Contractor accordingly, with a copy to the Employer. Until such time as rates or prices are agreed or fixed, the Engineer shall determine provisional rates or prices to enable on-account payments to be included in certificates issued in accordance with Clause 60.

Provided also that no varied work instructed by the Engineer to be done pursuant to Clause 51 shall be valued under Sub-clause 52.1 or under this sub-clause 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.

52(3) Variations Exceeding 15 Percent

This Clause is deleted.

53(5) Payment of Claims

Delete Clause 53.5 of Part 1 - General Conditions and add the following :

"The Contractor shall be entitled to have included in any Interim Payment certified by the Engineer pursuant to Clause 60, such amount in respect of any claim as the Engineer, after due consultation with the Employer and the Contractor, may consider due to the Contractor provided that the Contractor has supplied sufficient particulars to enable the Engineer to determine the amount due.


PART 2 - CONDITIONS OF PARTICULAR APPLICATIONS [Cont'd]

Clause

53(5) Payment of Claims [Cont'd]

If such particulars are insufficient to substantiate the whole of the claim, the Contractor shall be entitled to payment in respect of such part of the claim as such particulars may substantiate to the satisfaction of the Engineer after due consultation with the Employer and the Contractor. The Engineer shall notify the Contractor of any determination made under this Sub-clause, with a copy to the Employer."