General Conditions of Subcontract for Construction Works

CONTENTS PAGE
1. GENERAL 1
1.1 Definitions 1
1.2 Interpretations 5
1.2.1 Delivery of notices 5
1.2.2 Extent of indemnification 6
1.2.3 Authority of representatives 6
1.2.4 Singular and plural, and 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 7
1.3.3 Language 7
1.3.4 Subcontract Supplementary Agreement 7
1.3.5 Subcontractor’s copyright 7
1.3.6 Contractor’s copyright 7
2 BASIS OF SUBCONTRACT 8
2.1 Available data and information 8
2.1.SC Obligations, liabilities and benefits 8
2.1.1 SC. Obligations, liabilities and benefits 8
2.1.1 Available data 8
2.1.2 Inspection of the Subcontract Site 8
2.1.3 Obtaining information 9
2.2 Adverse physical conditions 9
2.2.1 Adverse physical conditions 9
2.2.2 Further notices 9
2.2.3 Subcontractor to carry out additional work 9
2.2.4 Subcontractor’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 11
3.2 Functions of the Employer’s Agent 11
3.2.1 Functions of the Employer’s Agent 11
3.2.2 Employer’s Agent to consult with Contractor and Employer 11
3.3 Employer’s Agent’s Representative 11
3.3.1 Appointment of Employer’s Agent’s Representative 11
3.3.2 Authority of Employer’s Agent’s Representative 11
4. SUBCONTRACTOR’S GENERAL OBLIGATIONS 12
4.1 Extent of obligations and liability 12
4.1.1 Extent of Subcontractor’s obligations 12
4.1.2 Subcontractor’s liability for own design errors 12
4.2. Contractor’s instructions 12
4.2.1. Subcontract Works to comply with Contractor’s instructions 12
4.2.2. Instructions from Contractor only 12
4.3. Legal provisions 12
4.3.1 Compliance with applicable laws 12
4.3.2. Proof of good standing 12
4.4. Sub-subcontracting 13
4.4.1. Sub-subcontracting whole Subcontract 13
4.4.2. Sub-subcontractor to be approved 13
4.4.3. Liability for Sub-subcontractors 13
4.4.4. Selection of Subcontractors in consultation with Employer 13
4.4.5. Contractor’s liability unaffected by selection of Subcontractors 13
4.4.6. Assignment in case of termination 13
4.4.7. Assignment of benefit of Subcontractors 14
4.5. Notices and Fees 14
4.5.1. Giving of notices and payment of fees 14
4.5.2. Contractor’s responsibility for approval 14
4.5.3. Subcontractor’s responsibility for consents 14
4.5.4. Subcontractor to be compensated 14
4.6. Patent rights 15
4.6.1. Patent and protected rights 15
4.6.2. Payments for rights 15
4.7. Fossils 15
4.7.1 Fossils, etc. 15
4.8. Facilities for others 15
4.8.1. Facilities for others 15
4.8.2 Additional compensation for providing facilities 16
4.9. Construction Equipment 16
4.9.1. Prohibition on removal of Construction Equipment 16
4.10. Subcontractor’s employees 17
4.10.1. Engagement of employees 17
4.10.2 Information in respect of employees 17
4.11. Competent employees 17
4.11.1 Competent employees 17
4.11.2. Removal of incompetent employees 17
4.12. Subcontractor’s superintendence 17
4.12.1 Subcontractor’s superintendence 17
4.12.2. Subcontract Construction Manager 17
4.12.3. Subcontract Construction Manager to receive instructions 18
5. TIME AND RELATED MATTERS 19
5.1. Time calculations 19
5.1.1. Time calculations 19
5.2. Commencement of the Subcontract 19
5.2.1. Commencement of the Subcontract 19
5.3. Commencement of the Subcontract Works 19
5.3.1. Commencement of the Subcontract Works 19
5.3.2. Unacceptable documentation 19
5.3.3. Time to instruct commencement of the Subcontract Works 19
5.4 Access to the Subcontract Site 20
5.4.1. Access to Subcontract Site 20
5.4.2 Access not exclusive 20
5.4.3 Delays in giving access 20
5.5. Time for Subcontract Practical Completion 20
5.5.1 Time for Subcontract Practical Completion 20
5.6. Programme 20
5.6.1 Programme of Subcontract Works 20
5.6.2. Contents of the Subcontract programme 21
5.6.3 Approval of the Subcontract programme 21
5.6.4 Review and adjustment of the programme 21
5.6.5 Approval means no relief of Subcontractor’s responsibilities 22
5.7. Progress of the Subcontract Works 22
5.7.1. Rate of progress 22
5.7.2. Night work 22
5.7.3. Acceleration 23
5.8. Non-working times 23
5.8.1. Non-working times 23
5.8.2 Notice for working during non-working times 24
5.9. Instructions 24
5.9.1. Drawings and instructions 24
5.9.2. Further drawings and instructions 24
5.9.3. Subcontractor to give notice timeously 24
5.9.4. Documents to be provided timeously 24
5.9.5. Subcontractor to give effect to drawings etc. 24
5.9.6. Contractor’s failure to comply timeously 24
5.9.7. Contractor to approve Subcontractor’s designs and drawings 25
5.10. Delays attributable to the Employer or Contractor 25
5.10.1 Delays attributable to the Employer or Contractor 25
5.11. Suspension of the Subcontract Works 25
5.11.1. Suspension of the Subcontract Works 25
5.11.2. Suspension of the Subcontract Works by Contractor 26
5.11.3. Protection of the Subcontract Works during suspension 26
5.11.4. Claim as a consequence of suspension 26
5.11.5. Proceeding with the Subcontract Works after payment 26
5.11.6. Suspension lasting more than 84 days 26
5.12. Extension of time for Subcontract Practical Completion 27
5.12.1. Extension of time for Subcontract Practical Completion 27
5.12.2. Some reasons for extension of time 27
5.12.3. Relevant adjustments to General Items 27
5.12.4. Acceleration instead of extension of time 27
5.13. Penalty for delay 28
5.13.1. Penalty for delay 28
5.13.2. Reduction of penalty 28
5.14. Subcontract Completion 28
5.14.1. Subcontract Practical Completion 28
5.14.2. Issue of Subcontract Certificate of Practical Completion 29
5.14.3. Consequences of Subcontract Practical Completion 29
5.14.4. Subcontract Certificate Completion 29
5.14.5. Consequences of Subcontract Completion 30
5.14.6. Occupation by the Contractor or Employer 30
5.14.7. Different dates of Subcontract Practical Completion 30
5.15. Clearance of Subcontract Site 30
5.15.1. Clearance of Subcontract Site 30
5.16. Approval 31
5.16.1. Subcontract Final Approval Certificate 31
5.16.2. Approval only by Subcontract Final Approval Certificate 31
5.16.3. Latent defects liability 31
6. PAYMENT AND RELATED MATTERS 32
6.1. Payment to Subcontractor 32
6.1.1 Payment to Subcontractor 32
6.2. Security 32
6.2.1. Delivery of security 32
6.2.2. Subcontractor failing to select or provide security 32
6.2.3. Validity of performance guarantee 32
6.3. Variations 32
6.3.1.SC. Variations 32
6.3.1. Subcontract Variations 33
6.3.2. Orders for Subcontract variations to be in writing 33
6.3.3. Changes in quantities 34
6.4. Value of Subcontract variations 34
6.4.1. Valuation of Subcontract variations 34
6.4.2. Delivering and applying the valuation 34
6.4.3. Delay in delivering valuation 35
6.5. Dayworks 35
6.5.1. Basis of payment for dayworks 35
6.5.2. Quotations for materials 36
6.5.3. Details to be recorded 36
6.5.4. Dayworks statement 36
6.6. Provisional sums and prime cost sums 36
6.6.1. Provisional sums 36
6.6.2 Prime cost sums 37
6.6.3 Provisional/prime cost sums and contingency allowance 37
6.6.4. Supporting documents 37
6.7. Measurement of the Subcontract Works 37
6.7.1. Quantities 37
6.7.2 Subcontract Works to be measured 38
6.7.3 Contractor’s intention to measure 38
6.7.4 Subcontractor’s failure to comply 38
6.7.5 Method of measurement 38
6.8 Adjustment in rates and/or prices 39
6.8.1 Rates and prices final and binding 39
6.8.2 Application of Subcontract Price Adjustment Factor 39
6.8.3 Variation in cost of special materials 39
6.8.4 Subsequent changes in legislation 39
6.9 Vesting of Plant and materials 39
6.9.1 Vesting of Plant and materials 39
6.9.2 Definition of “materials” 40
6.9.3 Identification of Plant and materials 40
6.9.4 Prohibition on removal of Plant and materials 40
6.9.5 No approval by vesting 40
6.10 Payments 40
6.10.1.SC Payments 40
6.10.1. Interim payments 40
6.10.2 Valuation of material brought onto Subcontract Site 42
6.10.3 Retention money 42
6.10.4 Delivery, dissatisfaction with and payment of payment certificate 42
6.10.4SC. Payment proviso 43
6.10.5 Payment of retention money 43
6.10.6 Set-off and delayed payments 44
6.10.7 Corrections to payment certificates 44
6.10.8 Subcontractor’s completion statement 44
6.10.8.SC Payment proviso 45
6.10.9 Subcontract Final payment certificate 45
6.10.9.SC Payment proviso 45
6.11 Subcontract Variations exceeding 15 per cent 45
6.11.1. Subcontract Variations exceeding 15 per cent 45
7 QUALITY AND RELATED MATTERS 47
7.1. Quality of Construction Equipment 47
7.1.1 Quality of Construction Equipment 47
7.2. Quality of Plant, workmanship and materials 47
7.2.1 Quality of Plant, workmanship and materials 47
7.3. Access to the Subcontract Works 47
7.3.1 Access to the Subcontract Works 47
7.4. Samples and testing 48
7.4.1. Samples of materials 48
7.4.2. Test specimens from the Subcontract Works 48
7.4.3. Tests 48
7.4.4. Cost of test specimens and tests 48
7.4.5. Exchange of reports on tests 49
7.5. Examination of the Subcontract Works 49
7.5.1. Examination of work before covering up 49
7.5.2. Delivery of Plant to Subcontract Site 49
7.5.3. Notice to be given when ready for testing 49
7.5.4. Delay by Contractor or Employer to take delivery of Plant 50
7.5.5. Uncovering and making openings 50
7.6. Defective Plant, materials and work 50
7.6.1. Making good and retesting of Plant 50
7.6.2. Consequences of failure of retesting of Plant 50
7.6.3. Removal of improper work and materials 51
7.6.4. Default of the Subcontractor in compliance with Contractor’s orders 51
7.7. Search for defects 51
7.7.1. Subcontractor to search for defects 51
7.8. Defects 51
7.8.1. Making good of defects in Subcontract Defects Liability Period 51
7.8.2. Cost of making good defects 52
7.8.3. Remedy of Subcontractor’s failure to carry out required work 52
7.9. Urgent remedial work 53
7.9.1. Urgent remedial work 53
8 RISKS AND RELATED MATTERS 54
8.1. Protection of the Subcontract Works 54
8.1.1. Protection of the Subcontract Works 54
8.1.2. Pollution prevention and interferences 54
8.1.3. Excessive loads and traffic 54
8.1.4. Indemnity by Subcontractor 54
8.1.5. Prices for protection of the Subcontract Works 54
8.2. Care of the Subcontract Works 55
8.2.1. Care of the Subcontract Works 55
8.2.2. Damage of physical loss 55
8.3. Expected risks 56
8.3.1. Expected risks 56
8.3.2. Claim for expected risks 57
8.4. Indemnifications 57
8.4.1. Injury to persons and damage to property 57
8.4.2. Indemnity by Employer 58
8.5. Reporting accidents 58
8.5.1. Reporting accidents 58
8.6. Insurances 59
8.6.1. Insurances to be effected 59
8.6.2. Liability of deductibles 60
8.6.3. Requirements relating to Sub-subcontractors 60
8.6.4. Subcontractor to effect insurances obtainable 60
8.6.5. Employer and Contractor to approve insurance policy 60
8.6.6. Subcontractor to produce proof of payment 60
8.6.7. Remedy on Subcontractor’s failure to insure 61
9 TERMINATION OF SUBCONTRACT 62
9.1. Termination of Subcontract 62
9.1.1. Termination due to external events 62
9.1.2. Termination due to internal events 62
9.1.3. Existing structure substantially destroyed 63
9.1.4. Increased costs 63
9.1.5. Payment if Main Contract is terminated 63
9.1.6. Over-riding provisions 64
9.2. Termination of Subcontract by Contractor 64
9.2.1. Termination of Subcontract by Contractor 64
9.2.2. Payment to complete the Subcontract Works 66
9.2.3. Notices to trustee/liquidator 66
9.3. Termination of Subcontract by Subcontractor 67
9.3.1. Termination of Subcontract by Subcontractor 67
9.3.2. Removal of items and payment to Subcontractor 67
9.3.3. Other rights of the Subcontractor 68
9.3.4. Notices to trustee/liquidator 68
9.4. Termination of Subcontract by Employer 68
9.4.1. Termination of Subcontract by Employer 68
10 CLAIMS AND DISPUTES 69
10.1 Subcontractor’s claim 69
10.1.SC Third party 69
10.1.1. Subcontractor’s claim 70
10.1.2. Extended period for claim 70
10.1.3. Records of facts and circumstances for claim 71
10.1.4. Subcontractor’s failure to comply with notice period 72
10.1.5. Third Party’s ruling on Subcontractor’s claim 72
10.2. Dissatisfaction claim 72
10.2.1. Dissatisfaction claim 72
10.2.2. Failure to claim dissatisfaction 73
10.2.3. Third Party’s ruling on dissatisfaction 73
10.3. Subcontract Dispute Notice 73
10.3.1 Subcontract Dispute Notice 73
10.3.2. Dispute to be referred 74
10.3.3. Ruling in full force 74
10.4 Amicable settlement 74
10.4.1 Dispute resolution by amicable settlement 74
10.4.2. Amicable settlement failure 74
10.4.3. Binding amicable settlement 74
10.4.4. No reference of amicable settlement outcomes 74
10.5. Adjudication 75
10.5.1. Dispute resolution by standing adjudication 75
10.5.2. Dispute resolution by ad-hoc adjudication 75
10.5.3. Rules for adjudication 75
10.5.4. Implementation of decisions 75
10.6. Disagreement with Adjudication Board’s decisions 75
10.6.1. Disagreement with Adjudication Board’s decisions 75
10.6.2. Failure to comply with a decision 76
10.6.3. Failure to give decision in time 76
10.7. Arbitration 76
10.7.1 Reference to arbitration 76
10.7.2. Rules for arbitration 76
10.7.3 Reasoned award 76
10.8. Court proceedings 77
10.8.1. Reference to court 77
10.9. Appointment 77
10.9.1. Appointment of dispute resolving persons 77
10.10. Common provisions 77
10.10.1 Subcontractor’s right to court proceedings 77
10.10.2 Employer’s Agent as witness 77
10.10.3 Arbitrator and court’s power regarding a ruling of a decision 77
10.11. Continuing validity 78
10.11.11. Continuing validity 78
SUBCONTRACT PRICE ADJUSTMENT SCHEDULE 79
ADJUDICATION BOARD RULES 82
PRO FORMAS 87
ALPHABETICAL SUBJECT INDEX 110