General Conditions of Contract for Construction Works (Second Edition) 2010

GENERAL CONDITIONS OF CONTRACT FOR CONSTRUCTION WORKS, SECOND EDITION, 2010

CONTENTS (Corresponding GCC 2004 clause numbers in brackets) Page

1. GENERAL 1

1.1 Definitions 1

1.1.1 Definitions (1.1) 1

1.2 Interpretations 4

1.2.1 Delivery of Notices (1.2) 4

1.2.2 Extent of indemnification (1.5) 5

1.2.3 Authority of representatives (1.7) 5

1.2.4 Singular and plural, masculine and feminine (1.8) 5

1.2.5 Marginal notes or headings (1.9) 5

1.3 General provisions 5

1.3.1 Concessions not to constitute waivers (1.3) 5

1.3.2 Governing law (1.4) 5

1.3.3 Language (new) 6

1.3.4 Supplementary agreement (36.4) 6

1.3.5 Contractor’s copyright (9.1) 6

2. BASIS OF CONTRACT 7

2.1 Available data and information 7

2.1.1 Available data (new) 7

2.1.2 Inspection of the Site (new) 7

2.1.3 Obtaining information (new) 7

2.2 Adverse physical conditions 7

2.2.1 Adverse physical conditions (47.1) 7

2.2.2 Further notices (47.2) 8

2.2.3 Contractor to carry out additional work (47.4) 8

2.2.4 Contractor’s right to claim (47.4) 8

2.3 Technical data 8 8

2.3.1 Technical data (new)

2.4 Ambiguity or discrepancy 9

2.4.1 Ambiguity or discrepancy (3.1) 9

2.4.2 Additional cost due to ambiguity (3.2) 9

2.5 Assignment 9

2.5.1 Assignment (5.1) 9

3. ENGINEER 10

3.1 Functions of the Engineer 10

3.1.1 Function of the Engineer (2.1) 10

3.1.2 Engineer to consult with Contractor and Employer (2.2) 10

3.1.3 Specific approval of the Employer required (2.3) 10

3.1.4 Employer’s agent for health and safety (new) 10

3.2 Engineer’s Representative 10

3.2.1 Nomination of Engineer’s Representative (2.4) 10

3.2.2 Authority of Engineer’s Representative (2.5) 10

3.2.3 Limitation of authority of Engineer’s Representative (2.6) 11

3.2.4 Engineer’s authority to delegate (2.7) 11

3.2.5 Limitations on delegations (2.9) 11

3.2.6 Contractor’s right to refer to Engineer (2.8) 11

4. CONTRACTOR’S GENERAL OBLIGATIONS 13

4.1 Extent of obligations and liability 13

4.1.1 Extent of Contractor’s obligations (4.1) 13

4.1.2 Contractor’s liability for own design errors (4.2) 13

4.2 Engineer’s instructions 13

4.2.1 Works to comply to Engineer’s instructions (4.3) 13

4.2.2 Instructions from Engineer only (4.4) 13

4.3 Legal provisions 13

4.3.1 Compliance with applicable laws (4.5) 13

4.3.2 Proof of good standing (35.8) 13

4.4 Subcontracting 13

4.4.1 Subcontracting whole Contract (6.1) 13

4.4.2 Liability for subcontractors (6.4) 14

4.4.3 Selection of subcontractors in consultation with Employer (6.3) 14

4.4.4 Contractor’s liability unaffected by selection of subcontractors (6.4) 14

4.4.5 Assignment in the case of termination (new) 14

4.4.6 Assignment of benefit of subcontractors (new) 14

4.5 Notices and fees 14

4.5.1 Giving notices and payment of fees (14.1) 14

4.5.2 Employer’s responsibility for approval (14.2) 15

4.5.3 Contractor’s responsibility for consents (14.3) 15

4.5.4 Contractor to be compensated (14.4) 15

4.6 Patent rights 15

4.6.1 Patent and protected rights (16.1) 15

4.6.2 Payments for rights (16.2) 15

4.7 Fossils 15

4.7.1 Fossils, etc. (15.1) 15

4.8 Facilities for others 15

4.8.1 Facilities for others (18.1) 16

4.8.2 Additional compensation for providing facilities (18.2) 16

4.9 Construction Equipment 17

4.9.1 Prohibition on removal of Construction Equipment (30.1) 17

4.10 Contractor’s employees 17

4.10.1 Engagement of employees (20.1) 17

4.10.2 Information in respect of employees (20.2) 17

4.11 Competent employees 17

4.11.1 Competent employees (21.1) 17

4.11.2 Removal of incompetent employees (21.1) 17

4.12 Contractor’s superintendence 18

412.1 Contractor’s superintendence (22.1) 18

4.12.2 Contractor’s Site Agent (22.2) 18

4.12.3 Site Agent to receive instructions (22.3) 18

5. TIME AND RELATED MATTERS 19

5.1 Time calculations 19

5.1.1 Time calculations(new) 19

5.2 Commencement of the Contract 19

5.2.1 Commencement of the Contract (new) 19

5.3 Commencement of the Works 19 19

5.3.1 Commencement of the Works (10.1) 19

5.3.2 Unacceptable documentation (new) 19

5.3.3 Time to instruct commencement of the Works (new) 19

5.4 Access to the Site 20

5.4.1 Access to and possession of Site (11.1) 20

5.4.2 Access not exclusive (new) 20

5.4.3 Delays in giving possession (11.2) 20

5.5 Time for Practical Completion 20

5.5.1 Time for Practical Completion (42.1) 20

5.6 Programme 20

5.6.1 Programme of Works (12.2) 20

5.6.2 Contents of the programme (12.3) 21

5.6.3 Approval of the programme (new) 21

5.6.4 Review and adjustment of the programme (12.4) 21

5.6.5 Approval means no relief of Contractor’s responsibilities (12.5) 21

5.7 Progress of the Works 22

5.7.1 Rate of progress (40.1) 22

5.7.2 Night work (40.2) 22

5.7.3 Acceleration (new) 22

5.8 Non-working times 23

5.8.1 Non-working times (38.1) 23

5.8.2 Notice for work during non-working times (new) 23

5.9 Instructions 23

5.9.1 Drawings and instructions (13.1) 23

5.9.2 Further drawings and instructions (13.2) 23

5.9.3 Contractor to give notice timeously (13.3) 23

5.9.4 Documents to be provided timeously (13.4) 23

5.9.5 Contractor to give effect to drawings, etc.(13.5) 24

5.9.6 Engineer’s failure to comply timeously (13.6) 24

5.9.7 Engineer to approve Contractor’s designs and drawings (13.7) 24

5.10 Delays attributable to the Employer 24

5.10. 1 Delays attributable to the Employer (41.1) 24

5.11 Suspension of the Works 25

5.11.1 Suspension of the Works (39.1) 25

5.11.2 Claim as a consequence of suspension (39.1) 25

5.11.3 Suspension lasting more than 84 days (39.2) 25

5.12 Extension of time for Practical Completion 25

5.12.1 Extension of time for Practical Completion (42.2) 25

5.12.2 Some reasons for extension of time (42.3) 26

5.12.3 Relevant adjustments to General Items (42.4) 26

5.12.4 Acceleration in stead of extension of time (new) 26

5.13 Penalty for delay 26

5.13.1 Penalty for delay (43.1) 26

5.13.2 Reduction of penalty (43.2) 26

5.14 Completion 27

5.14.1 Practical Completion (51.1) 27

5.14.2 Issue of Certificate of Practical Completion (51.2) 27

5.14.3 Consequences of Practical Completion (51.3) 27

5.14.4 Certificate of Completion (51.4) 27

5.14.5 Consequences of completion (51.5) 28

5.14.6 Occupation by the Employer (new) 28

5.14.7 Different dates of Practical Completion (51.6) 28

5.15 Clearance of Site 28

5.15.1 Clearance of Site on completion (19.1) 28

5.16 Approval 29

5.16.1 Final Approval Certificate (52.1) 29

5.16.2 Approval only by Final Approval Certificate (52.2) 29

5.16.3 Latent defects liability (52.3) 29

6. PAYMENT AND RELATED MATTERS 30

6.1 Payment to Contractor 30

6.1.1 Payment to Contractor (8.1) 30

6.2 Security 30

6.2.1 Delivery of security (7.1) 30

6.2.2 Contractor failing to select or provide security (new) 30

6.2.3 Validity of performance guarantee (new) 30

6.3 Variations 30

6.3.1 Variations (36.1) 30

6.3.2 Orders for variations to be in writing (36.2) 31

6.3.3 Changes in quantities (36.3) 31

6.4 Value of variations 31

6.4.1 Valuation of variations (37.1) 31

6.4.2 Delivering and applying the variation (new) 32

6.4.3 Delay in delivering valuation (new) 32

6.5 Dayworks 32

6.5.1 Basis of payment for dayworks (37.2.1 – 37.2.3) 32

6.5.2 Quotations for materials (37.2.4) 33

6.5.3 Details to be recorded (37.2.5) 33

6.5.4 Dayworks statement (37.2.6) 34

6.6 Provisional sums and prime cost sums 34

6.6.1 Provisional sums (45.1) 34

6.6.2 Prime cost sums (45.2) 34

6.6.3 Provisional/prime cost sums and contingency allowance (45.3) 35

6.6.4 Supporting documents (45.4) 35

6.7 Measurement of the Works 35

6.7.1 Quantities (44.1) 35

6.7.2 Work to be measured (44.2) 35

6.7.3 Engineer’s intention to measure (44.3) 35

6.7.4 Contractor’s failure to comply (44.4) 36

6.7.5 Method of measurement (44.5) 36

6.8 Adjustment in rates and/or prices 36

6.8.1 Rates and prices final and binding (46.1) 36

6.8.2 Application of the Contract Price Adjustment Factor (46.2) 36

6.8.3 Variation in cost of special materials (46.3) 36

6.8.4 Subsequent changes in legislation (46.4) 36

6.9 Vesting of Plant and materials 37

6.9.1 Vesting of Plant and materials (29.1) 37

6.9.2 Definition of “materials” (29.2) 37

6.9.3 Identification of Plant and materials (29.3) 37

6.9.4 Prohibition on removal of plant and materials (29.4) 37

6.9.5 No approval by vesting (29.5) 37

6.10 Payments 37

6.10.1 Interim payments (49.1) 37

6.10.2 Valuation of material brought onto Site (49.2) 38

6.10.3 Retention money (49.3) 39

6.10.4 Delivery, dissatisfaction with and payment of payment certificate (49.4) 39

6.10.5 Payment of retention money (49.5) 39

6.10.6 Set-off and delayed payments (49.7) 40

6.10.7 Corrections to payment certificates (49.8) 40

6.10.8 Contractor’s completion statement (49.9) 40

6.10.9 Final payment certificate (49.10) 41

6.11 Variations exceeding 15 per cent 41

6.11.1 Variations exceeding 15 per cent (50.1) 41

7. QUALITY AND RELATED MATTERS 43

7.1 Quality of Construction Equipment 43

7.1.1 Quality of Construction Equipment (23.2) 43

7.2 Quality of Plant, workmanship and materials 43

7.2.1 Quality of Plant, workmanship and materials (23.1) 43

7.3 Access to the Works 43

7.3.1 Access to the Works (24.1) 43

7.4 Samples and testing 43

7.4.1 Samples of materials (23.4) 43

7.4.2 Test specimens from the Works (23.5) 44

7.4.3 Tests (23.6) 44

7.4.4 Cost of test specimens and tests (23.7) 44

7.4.5 Exchange of reports on tests (23.8) 44

7.5 Examination of the Works 45

7.5.1 Examination of work before covering up (25.1) 45

7.5.2 Delivery of Plant to Site (new) 45

7.5.3 Notice to be given when ready for testing (25.2) 45

7.5.4 Delay by Employer to take delivery of Plant (new) 45

7.5.5 Uncovering and making openings (25.3) 45

7.6 Defective Plant, materials and work 46

7.6.1 Making good and retesting of Plant (new) 46

7.6.2 Consequences of failure of retesting Plant (new) 46

7 6.3 Removal of improper work and materials (26.1) 46

7 6 4 Default of the Contractor in compliance with Engineer’s orders (26.2) 47

7.7 Search for defects 47

7.7.1 Contractor to search for defects (27.1) 47

7.8 Defects 47

7.8.1 Making good of defects in Defects Liability Period (53.2) 47

7.8.2 Cost of making good of defects (53.3) 48

7.8.3 Remedy on Contractor’s failure to carry out required work (53.4) 48

7.9 Urgent remedial work 48

7.9.1 Urgent remedial work (28.1) 48

8. RISKS AND RELATED MATTERS 50

8.1 Protection of the Works 50

8.1.1 Protection of the Works (31.1) 50

8.1.2 Pollution prevention and interferences (17.1) 50

8.1.3 Excessive loads and traffic (17.2) 50

8.1.4 Indemnity by Contractor (17.3) 50

8.1.5 Prices for protection of the Works (31.1) 50

8.2 Care of the Works 50

8.2.1 Care of the Works (32.1) 50

8.2.2 Damage or physical loss (32.2) 51

8.3 Excepted risks 51

8.3.1 Excepted risks (32.3) 51

8.4 Indemnifications 52

8.4.1 Injury to persons and damage to property (33.1) 52

8.4.2 Indemnity by Employer (33.2) 53

8.5 Reporting accidents 53

8.5.1 Reporting of accidents (34.1) 53

8.6 Insurances 54

8.6.1 Insurances to be effected (35.1) 54

8.6.2 Liability of deductibles (35.2) 55

8.6.3 Requirements relating to subcontractors (35.3) 55

8.6.4 Contractor to effect insurances obtainable (35.4) 55

8.6.5 Employer to approve insurance policy (35.5) 55

8.6.6 Contractor to produce proof of payment (35.6) 56

8.6.7 Remedy on Contractor’s failure to insure (35.7) 56

9. TERMINATIONS OF CONTRACT 57

9.1 Termination of Contract 57

9.1.1 Outbreak of war, hostilities, sanctions, etc. (54.1) 57

9.1.2 State of emergency (54.2) 57

9.1.3 Existing structure destroyed (new) 58

9.1.4 Increased costs (54.3) 58

9.1.5 Payment if Contract is terminated (54.4) 58

9.1.6 Over-riding provisions (54.5) 59

9.2 Termination by Employer 59

9.2.1 Termination by the Employer (55.1) 59

9.2.2 Payment to complete the Works (55.2) 61

9.2.3 Notices to trustee/liquidator (new) 61

9.3 Termination by Contractor 61

9.3.1 Termination of Contract by Contractor (56.1) 61

9.3.2 Removal of items and payment to Contractor (56.2) 62

9.3.3 Other rights of the Contractor (56.3) 62

9.3.4 Notices to trustees/liquidators (56.4) 63

10. CLAIMS AND DISPUTES 64

10.1 Contractor’s claim 64

10.1.1 Contractor’s claim (48.1) 64

10.1.2 Extended period for claim (48.2) 65

10.1.3 Records of facts and circumstances for claim (48.3) 65

10.1.4 Contractor’s failure to comply with notice period (48.4) 66

10.1.5 Engineer’s ruling on Contractor’s claim (48.5) 66

10.2 Dissatisfaction claim 66

10.2.1 Dissatisfaction claim (57.1) 66

10.2.2 Failure to claim dissatisfaction (new) 67

10.2.3 Engineer’s ruling on dissatisfaction (57.2) 67

10.3 Dispute notice 67

10.3.1 Dispute notice (58.1.1) 67

10.3.2 Dispute to be referred (58.1.4) 67

10.3.3 Ruling in full force (58.1.5) 68

10.4 Amicable settlement 68

10 4.1 Dispute resolution by amicable settlement (new) 68

10.4.2 Amicable settlement failure (new) 68

10.4.3 Binding settlement (new) 68

10.4.4 No reference of amicable settlement outcomes (new) 68

10.5 Adjudication 68

10.5.1 Dispute resolution by standing adjudication (new) 68

10.5.2 Dispute resolution by ad-hoc adjudication (58.3) 69

10.5.3 Rules for adjudication (new) 69

10.6 Disagreement with Adjudication Board’s decision 69

10.6.1 Disagreement with Adjudication Board’s decision (new) 69

10.6.2 Failure to comply with a decision (new) 69

10.6.3 Failure to give a decision in time (new) 69

10.7 Arbitration 70

10.7.1 Reference to arbitration (58.4.1) 70

10.7.2 Rules for arbitration (58.4.2) 70

10.7.3 Reasoned award (58.4.3) 70

10.8 Court proceedings 70

10.8.1 Reference to court (58.5) 70

10.9 Appointment 70

10.9.1 Appointment of dispute resolving persons (new) 70

10.10 Common provisions 71

10.10.1 Contractor’s right to court proceedings (58.6.1) 71

10.10.2 Engineer as witness (58.8.2) 71

10.10.3 Arbitrator or court’s power regarding a ruling or a decision (58.6.3) 71

10.11 Continuing validity 71

10.11.1 Continuing validity (58.8) 71

Contract Price Adjustment Schedule 72

Adjudication Board Rules 75

Pro Formas: 82

Appendix 1: Form of Offer and Acceptance

Appendix 2: Contract Data 83

Appendix 3: Performance Guarantee 89

Appendix 4: Disclosure Statement 96

Appendix 5: Adjudication Board Member Agreement 100

Alphabetical subject index 101 103