General Conditions of Contract for Construction Works Third Edition (2015) & Guide to the General Conditions of Contract 2015 Second Edition

GENERAL CONDITIONS OF CONTRACT FOR CONSTRUCTION WORKS,
THIRD EDITION (2015)
CONTENTS Page

New clauses indicated as (new) and changed clauses indicated as (changed)

1. GENERAL 1
1.1 Definitions 1
1.1.1 Definitions 1
1.2 Interpretations 5
1.2.1 Delivery of notices 5
1.2.2 Extent of indemnification 5
1.2.3 Authority of representatives 5
1.2.4 Singular and plural, masculine and feminine 6
1.2.5 Marginal notes or headings 6
1.3 General provisions 6
1.3.1 Concessions not to constitute waivers 6
1.3.2 Governing law 6
1.3.3 Language 6
1.3.4 Supplementary Agreement 6
1.3.5 Contractor’s copyright 7
1.3.6 Employer’s copyright (new) 7
2. BASIS OF CONTRACT 8
2.1 Available data and information 8
2.1.1 Available data 8
2.1.2 Inspection of the Site (changed) 8
2.1.3 Obtaining information (changed) 8
2.2 Adverse physical conditions 8
2.2.1 Adverse physical conditions 8
2.2.2 Further notices 9
2.2.3 Contractor to carry out additional work 9
2.2.4 Contractor’s right to claim 9
2.3 Technical data 10
2.3.1 Technical data 10
2.4 Ambiguity or discrepancy 10
2.4.1 Ambiguity or discrepancy 10
2.4.2 Additional cost due to ambiguity 10
2.5 Assignment 10
2.5.1 Assignment 10
3. EMPLOYER’S AGENT 11
3.1 Qualifications of the Employer’s Agent 11
3.1.1 Qualifications of the Employer’s Agent (new) 11
3.2 Functions of the Employer’s Agent 11
3.2.1 Function of the Employer’s Agent 11
3.2.2 Employer’s Agent to consult with Contractor and Employer 11
3.2.3 Specific approval of the Employer required 11
3.2.4 Employer’s agent for health and safety 11
3.3 Employer’s Agent’s Representative 12
3.3.1 Nomination of Employer’s Agent’s Representative 12
3.3.2 Authority of Employer’s Agent’s Representative 12
3.3.3 Limitation of authority of Employer’s Agent’s Representative 12
3.3.4 Employer’s Agent’s authority to delegate 13
3.3.5 Limitations on delegations 13
3.3.6 Contractor’s right to refer to Employer’s Agent 13
4. CONTRACTOR’S GENERAL OBLIGATIONS 14
4.1 Extent of obligations and liability 14
4.1.1 Extent of Contractor’s obligations 14
4.1.2 Contractor’s liability for own design errors 14
4.2 Employer’s Agent’s instructions 14
4.2.1 Works to comply to Employer’s Agent’s instructions 14
4.2.2 Instructions from Employer’s Agent only 14
4.3 Legal provisions 14
4.3.1 Compliance with applicable laws 14
4.3.2 Proof of good standing 14
4.4 Subcontracting 15
4.4.1 Subcontracting whole Contract 15
4.4.2 Subcontractor to be approved (new) 15
4.4.3 Liability for subcontractors 15
4.4.4 Selection of subcontractors in consultation with Employer 15
4.4.5 Contractor’s liability unaffected by selection of subcontractors 15
4.4.6 Assignment in the case of termination 15
4.4.7 Assignment of benefit of subcontractors 15
4.5 Notices and fees 16
4.5.1 Giving of notices and payment of fees 16
4.5.2 Employer’s responsibility for approval 16
4.5.3 Contractor’s responsibility for consents 16
4.5.4 Contractor to be compensated 16
4.6 Patent rights 17
4.6.1 Patent and protected rights 17
4.6.2 Payments for rights 17
4.7 Fossils 17
4.7.1 Fossils etc 17
4.8 Facilities for others 18
4.8.1 Facilities for others 18
4.8.2 Additional compensation for providing facilities 18
4.9 Construction Equipment 19
4.9.1 Prohibition on removal of Construction Equipment 19
4.10 Contractor’s employees 19
4.10.1 Engagement of employees 19
4.10.2 Information in respect of employees 19
4.11 Competent employees 19
4.11.1 Competent employees 19
4.11.2 Removal of incompetent employees 20
4.12 Contractor’s superintendence 20
4.12.1 Contractor’s superintendence 20
4.12.2 Construction Manager 20
4.12.3 Construction Manager to receive instructions 20
5. TIME AND RELATED MATTERS 21
5.1 Time calculations 21
5.1.1 Time calculations 21
5.2 Commencement of the Contract 21
5.2.1 Commencement of the Contract 21
5.3 Commencement of the Works 21
5.3.1 Commencement of the Works 21
5.3.2 Unacceptable documentation 21
5.3.3 Time to instruct commencement of the Works 22
5.4 Access to the Site 22
5.4.1 Access to and possession of Site 22
5.4.2 Access not exclusive 22
5.4.3 Delays in giving possession 22
5.5 Time for Practical Completion 22
5.5.1 Time for Practical Completion 22
5.6 Programme 23
5.6.1 Programme of Works 23
5.6.2 Contents of the programme (5.6.2.4 changed) 23
5.6.3 Approval of the programme 24
5.6.4 Review and adjustment of the programme 24
5.6.5 Approval means no relief of Contractor’s responsibilities 24
5.7 Progress of the Works 24
5.7.1 Rate of progress 24
5.7.2 Night work (changed) 25
5.7.3 Acceleration 25
5.8 Non-working times 26
5.8.1 Non-working times 26
5.8.2 Notice for work during non-working times 26
5.9 Instructions 26
5.9.1 Drawings and instructions 26
5.9.2 Further drawings and instructions 26
5.9.3 Contractor to give notice timeously 26
5.9.4 Documents to be provided timeously 27
5.9.5 Contractor to give effect to drawings etc 27
5.9.6 Employer’s Agent’s failure to comply timeously 27
5.9.7 Employer’s Agent to approve Contractor’s designs and drawings 27
5.10 Delays attributable to the Employer 28
5.10.1 Delays attributable to the Employer 28
5.11 Suspension of the Works 28
5.11.1 Suspension of the Works by Contractor (new) 28
5.11.2 Suspension of the Works by Employer’s Agent 28
5.11.3 Protection of the Works during suspension 29
5.11.4 Claim as a consequence of suspension 29
5.11.5 Proceeding with the Works after payment (new) 29
5.11.6 Suspension lasting more than 84 days 29
5.12 Extension of time for Practical Completion 30
5.12.1 Extension of time for Practical Completion 30
5.12.2 Some reasons for extension of time 30
5.12.3 Relevant adjustments to General Items 30
5.12.4 Acceleration instead of extension of time 30
5.13 Penalty for delay 31
5.13.1 Penalty for delay 31
5.13.2 Reduction of penalty 31
5.14 Completion 31
5.14.1 Practical Completion (changed) 31
5.14.2 Issue of Certificate of Practical Completion 32
5.14.3 Consequences of Practical Completion 32
5.14.4 Certificate of Completion 33
5.14.5 Consequences of completion 33
5.14.6 Occupation by the Employer 33
5.14.7 Different dates of Practical Completion 34
5.15 Clearance of Site 34
5.15.1 Clearance of Site on completion 34
5.16 Approval 34
5.16.1 Final Approval Certificate 34
5.16.2 Approval only by Final Approval Certificate 35
5.16.3 Latent defects liability 35
6. PAYMENT AND RELATED MATTERS 36
6.1 Payment to Contractor 36
6.1.1 Payment to Contractor 36
6.2 Security 36
6.2.1 Delivery of security 36
6.2.2 Contractor failing to select or provide security (changed) 36
6.2.3 Validity of performance guarantee 36
6.3 Variations 37
6.3.1 Variations (6.3.1.2 changed) 37
6.3.2 Orders for variations to be in writing 37
6.3.3 Changes in quantities 38
6.4 Value of variations 38
6.4.1 Valuation of variations 38
6.4.2 Delivering and applying the valuation 39
6.4.3 Delay in delivering valuation 39
6.5 Dayworks 39
6.5.1 Basis of payment for dayworks 39
6.5.2 Quotations for materials 40
6.5.3 Details to be recorded 40
6.5.4 Dayworks statement 41
6.6 Provisional sums and prime cost sums 41
6.6.1 Provisional sums 41
6.6.2 Prime cost sums 42
6.6.3 Provisional/prime cost sums and contingency allowance 42
6.6.4 Supporting documents 42
6.7 Measurement of the Works 42
6.7.1 Quantities 42
6.7.2 Work to be measured 43
6.7.3 Employer’s Agent’s intention to measure 43
6.7.4 Contractor’s failure to comply 43
6.7.5 Method of measurement 44
6.8 Adjustment in rates and/or prices 44
6.8.1 Rates and prices final and binding 44
6.8.2 Application of the Contract Price Adjustment Factor 44
6.8.3 Variation in cost of special materials 44
6.8.4 Subsequent changes in legislation 44
6.9 Vesting of Plant and materials 45
6.9.1 Vesting of Plant and materials 45
6.9.2 Definition of “materials” 45
6.9.3 Identification of Plant and materials 45
6.9.4 Prohibition on removal of Plant and materials 45
6.9.5 No approval by vesting 46
6.10 Payments 46
6.10.1 Interim payments 46
6.10.2 Valuation of material brought onto Site 47
6.10.3 Retention money 48
6.10.4 Delivery, dissatisfaction with and payment of payment certificate 48
6.10.5 Payment of retention money 48
6.10.6 Set-off and delayed payments (changed) 49
6.10.7 Corrections to payment certificates 50
6.10.8 Contractor’s completion statement 50
6.10.9 Final Payment Certificate 50
6.11 Variations exceeding 15 per cent 51
6.11.1 Variations exceeding 15 per cent 51
7. QUALITY AND RELATED MATTERS 52
7.1 Quality of Construction Equipment 52
7.1.1 Quality of Construction Equipment 52
7.2 Quality of Plant, workmanship and materials 52
7.2.1 Quality of Plant, workmanship and materials 52
7.3 Access to the Works 52
7.3.1 Access to the Works 52
7.4 Samples and testing 53
7.4.1 Samples of materials 53
7.4.2 Test specimens from the Works 53
7.4.3 Tests 53
7.4.4 Cost of test specimens and tests 53
7.4.5 Exchange of reports on tests 54
7.5 Examination of the Works 54
7.5.1 Examination of work before covering up 54
7.5.2 Delivery of Plant to Site 54
7.5.3 Notice to be given when ready for testing 54
7.5.4 Delay by Employer to take delivery of Plant 55
7.5.5 Uncovering and making openings 55
7.6 Defective Plant, materials and work 55
7.6.1 Making good and retesting of Plant 55
7.6.2 Consequences of failure of retesting Plant 56
7.6.3 Removal of improper work and materials 56
7.6.4 Default of the Contractor in compliance with Employer’s Agent’s orders 56
7.7 Search for defects 57
7.7.1 Contractor to search for defects 57
7.8 Defects 57
7.8.1 Making good of defects in Defects Liability Period 57
7.8.2 Cost of making good of defects 58
7.8.3 Remedy on Contractor’s failure to carry out required work 58
7.9 Urgent remedial work 58
7.9.1 Urgent remedial work 58
8. RISKS AND RELATED MATTERS 60
8.1 Protection of the Works 60
8.1.1 Protection of the Works 60
8.1.2 Pollution prevention and interferences 60
8.1.3 Excessive loads and traffic 60
8.1.4 Indemnity by Contractor 60
8.1.5 Prices for protection of the Works 60
8.2 Care of the Works 61
8.2.1 Care of the Works 61
8.2.2 Damage or physical loss 61
8.3 Excepted risks 62
8.3.1 Excepted risks (changed) 62
8.3.2 Claim for excepted risks (new) 63
8.4 Indemnifications 63
8.4.1 Injury to persons and damage to property 63
8.4.2 Indemnity by Employer 64
8.5 Reporting accidents 64
8.5.1 Reporting of accidents 64
8.6 Insurances 65
8.6.1 Insurances to be effected (8.6.1.4 changed) 65
8.6.2 Liability of deductibles 66
8.6.3 Requirements relating to subcontractors 66
8.6.4 Contractor to effect insurances obtainable 67
8.6.5 Employer to approve insurance policy 67
8.6.6 Contractor to produce proof of payment 67
8.6.7 Remedy on Contractor’s failure to insure 67
9. TERMINATION OF CONTRACT 68
9.1 Termination of Contract 68
9.1.1 Termination due to external events (changed) 68
9.1.2 Termination due to internal events (changed) 68
9.1.3 Existing structure destroyed 69
9.1.4 Increased costs 69
9.1.5 Payment if Contract is terminated 69
9.1.6 Over-riding provisions 70
9.2 Termination by Employer 70
9.2.1 Termination by the Employer (9.2.1.3.2 new) 70
9.2.2 Payment to complete the Works 73
9.2.3 Notices to trustee/liquidator 73
9.3 Termination by Contractor 73
9.3.1 Termination by the Contractor (changed) 73
9.3.2 Removal of items and payment to Contractor 74
9.3.3 Other rights of the Contractor 75
9.3.4 Notices to trustees/liquidators 75
10. CLAIMS AND DISPUTES 76
10.1 Contractor’s claim 76
10.1.1 Contractor’s claim 76
10.1.2 Extended period for claim 77
10.1.3 Records of facts and circumstances for claim 77
10.1.4 Contractor’s failure to comply with notice period 78
10.1.5 Employer’s Agent’s ruling on Contractor’s claim 79
10.2 Dissatisfaction claim 79
10.2.1 Dissatisfaction claim 79
10.2.2 Failure to claim dissatisfaction 79
10.2.3 Employer’s Agent’s ruling on dissatisfaction 80
10.3 Dispute notice 80
10.3.1 Dispute notice 80
10.3.2 Dispute to be referred 80
10.3.3 Ruling in full force 81
10.4 Amicable settlement 81
10.4.1 Dispute resolution by amicable settlement 81
10.4.2 Amicable settlement failure 81
10.4.3 Binding amicable settlement 81
10.4.4 No reference of amicable settlement outcomes 81
10.5 Adjudication 82
10.5.1 Dispute resolution by standing adjudication 82
10.5.2 Dispute resolution by ad-hoc adjudication 82
10.5.3 Rules for adjudication 82
10.5.4 Implementation of decision (new) 82
10.6 Disagreement with Adjudication Board’s decision 82
10.6.1 Disagreement with Adjudication Board’s decision 82
10.6.2 Failure to comply with a decision 83
10.6.3 Failure to give a decision in time 83
10.7 Arbitration 83
10.7.1 Reference to arbitration 83
10.7.2 Rules for arbitration 84
10.7.3 Reasoned award 84
10.8 Court proceedings 84
10.8.1 Reference to court 84
10.9 Appointment 84
10.9.1 Appointment of dispute resolving persons 84
10.10 Common provisions 84
10.10.1 Contractor’s right to court proceedings 84
10.10.2 Employer’s Agent as witness 84
10.10.3 Arbitrator and court’s power regarding a ruling or a decision 85
10.11 Continuing validity 85
10.11.1 Continuing validity 85
Contract Price Adjustment Schedule (changed) 86
Adjudication Board Rules 89
Pro Formas 96
Appendix 1: Form of Offer and Acceptance 97
Appendix 2: Contract Data (changed) 103
Appendix 3: Performance Guarantee (changed) 110
Appendix 4: Disclosure Statement 114
Appendix 5: Adjudication Board Member Agreement 115
Alphabetical subject index 117

GUIDE TO THE GENERAL CONDITIONS OF CONTRACT 2015

CONTENTS Page

CHAPTER I: COMPILATION AND APPLICATION OF GCC 2015 1
1. The need for general conditions of contract 1
2. The development of GCC 1
3. The amendment of GCC 2
4. Objective of GCC 2015 3
4.1 Green Paper on uniformity in contract documentation 3
4.2 Equity requirements for conditions of contract 4
5. The appropriation of risks 7
6. Application of GCC 2015 8
6.1 Relevance of GCC 2015 9
6.2 Pricing strategy for GCC 2015 10
6.3 Suitability of GCC 2015 10
CHAPTER II: HELPFUL NOTES ON GCC 2015 12
1. GENERAL 12
1.1 Definitions 12
Contractual Definitions 12
Definitions about Goods and Places 15
Payment Definitions 16
Stakeholder Definitions 19
Time Definitions 20
1.2 Interpretations 22
1.3 General provisions 24
2. BASIS OF CONTRACT 27
2.1 Available data and information 27
2.2 Adverse physical conditions 29
2.3 Technical data 31
2.4 Ambiguity or discrepancy 31
2.5 Assignment 32
3. EMPLOYER’S AGENT 33
3.1 Qualifications of the Employer’s Agent 33
3.2 Functions of the Employer’s Agent 33
3.3 Employer’s Agent’s Representative 37
4. CONTRACTOR’S GENERAL OBLIGATIONS 40
4.1 Extent of obligations and liability 40
4.2 Employer’s Agent’s instructions 40
4.3 Legal provisions 41
4.4 Subcontracting 42
4.5 Notices and fees 44
4.6 Patent rights 46
4.7 Fossils 47
4.8 Facilities for others 47
4.9 Construction Equipment 48
4.10 Contractor’s employees 49
4.11 Competent employees 50
4.12 Contractor’s superintendence 50
5. TIME AND RELATED MATTERS 52
5.1 Time calculations 52
5.2 Commencement of the Contract 54
5.3 Commencement of the Works 54
5.4 Access to the Site 56
5.5 Time for Practical Completion 58
5.6 Programme 60
5.7 Progress of the Works 64
5.8 Non-working times 66
5.9 Instructions 66
5.10 Delays attributable to the Employer 69
5.11 Suspension of the Works 70
5.12 Extension of time for Practical Completion 72
5.13 Penalty for delay 78
5.14 Completion 79
5.15 Clearance of Site 84
5.16 Approval 84
6. PAYMENT AND RELATED MATTERS 87
6.1 Payment to Contractor 87
6.2 Security 87
6.3 Variations 90
6.4 Value of variations 94
6.5 Dayworks 96
6.6 Provisional sums and prime cost sums 98
6.7 Measurement of the Works 100
6.8 Adjustments in rates and/or prices 102
6.9 Vesting of Plant and materials 104
6.10 Payments 105
6.11 Variations that exceed 15% 116
7. QUALITY AND RELATED MATTERS 117
7.1 Quality of Construction Equipment 117
7.2 Quality of Plant, workmanship and materials 117
7.3 Access to the Works 118
7.4 Samples and testing 118
7.5 Examination of the Works 120
7.6 Defective Plant, materials and work 121
7.7 Search for defects 123
7.8 Defects 123
7.9 Urgent remedial work 125
8. RISKS AND RELATED MATTERS 126
8.1 Protection of the Works 126
8.2 Care of the Works 129
8.3 Excepted risks 130
8.4 Indemnifications 133
8.5 Reporting accidents 134
8.6 Insurances 135
9. TERMINATION OF CONTRACT 139
9.1 Termination of contract 139
9.2 Termination by Employer 142
9.3 Termination by Contractor 146
10. CLAIMS AND DISPUTES 149
10.1 Contractor’s claim 150
10.2 Dissatisfaction claim 158
10.3 Dispute notice 161
10.4 Amicable settlement 164
10.5 Adjudication 166
10.6 Disagreement with Adjudication Board’s decision 170
10.7 Arbitration 171
10.8 Court proceedings 173
10.9 Appointment 174
10.10 Common provisions 175
10.11 Continuing validity 176
CHAPTER III: NOTES ON SUPPLEMENTARY DOCUMENTS IN GCC 2015 177
1. CONTRACT PRICE ADJUSTMENT SCHEDULE 178
2. ADJUDICATION BOARD RULES 187
2.1 Powers of the Adjudication Board 187
2.2 Ad-hoc adjudication procedures 191
2.3 Standing adjudication procedures 194
3. FORM OF OFFER AND ACCEPTANCE 200
4. CONTRACT DATA 204
5. PERFORMANCE GUARANTEE 206
6. DISCLOSURE STATEMENT 209
7. ADJUDICATION BOARD MEMBER AGREEMENT 210
CHAPTER IV: GCC 2015 SUBCONTRACT 211
CHAPTER V: AMICABLE SETTLEMENT 214
CHAPTER VI: AMICABLE SETTLEMENT PROCEDURES 215
1. Scope of the Procedures 215
2. Commencement of amicable settlement proceedings 216
3. Amicable Settlement Procedures 216
4. Representation 216
5. Communication 217
6. Information 217
7. Settlement Agreement 217
8. Confidentiality 217
9. Termination of Proceedings 217
10. Role of Neutral in subsequent proceedings 218
11. Liability of the Neutral 218
12. Fees and expenses 218
CHAPTER VII: NOTES ON SAICE AMICABLE SETTLEMENT PROCEDURE 219
1. Introduction 219
2. Amicable settlement techniques 219
3. Commencement of amicable settlement procedures 221
4. Amicable settlement procedures 222
5. Representation 223
6. Communication 223
7. Information 223
8. Settlement Agreement 223
9. Confidentiality 224
10. Termination of Proceedings 224
11. Role of the Neutral in subsequent proceedings 224
12. Liability of the Neutral 225
13. Fees and expenses 225
APPENDIX 1: WRITTEN ACTIONS REQUIRED IN GCC 2015 226
APPENDIX 2: LIST OF ITEMS IN GCC 2015 THAT THE EMPLOYER’S AGENT MUST ATTEND TO 230
APPENDIX 3: GCC 2015 USED FOR DESIGN AND BUILD CONTRACTS 233
APPENDIX 4: ADVANCE PAYMENT GUARANTEE 236
APPENDIX 5: CONSTRUCTION INSURANCE 240
APPENDIX 6: SUBSTITUTIVE CONTRACTUAL TERMS 259
APPENDIX 7: PRO FORMA CERTIFICATE OF PRACTICAL COMPLETION 265
APPENDIX 8: PRO FORMA CERTIFICATE OF COMPLETION 266
APPENDIX 9: PRO FORMA FINAL APPROVAL CERTIFICATE 267
APPENDIX 10: PRO FORMA PAYMENT CERTIFICATE 268
APPENDIX 11: PRO FORMA NOTICE OF CONTRACTOR’S CLAIM 269
APPENDIX 12: PRO FORMA NOTICE OF DISSATISFACTION CLAIM 270
APPENDIX 13: PRO FORMA DISPUTE NOTICE 271
APPENDIX 14: PRO FORMA NOTICE OF ADJUDICATION 272