Académique Documents
Professionnel Documents
Culture Documents
Contract Practice
- Contractor's Claim
- insurances
- Termination
- lnsoivency
- Bonds & Guarantees
t
t
I
Conditions of Contract
Agreement & Schedule of Conditions of Building
Contract for use in the Hong Kong Special
i
t
;
number.
5
i
r
l
1
9/6/2014
payment
Clause 33 Surety Bond
Clause 35 - Determination by Employer
persons or property
Clause 22 Insurance of the Work
completion
Clause 25 - Extension of Time
Clause 27 ~ Direct loss and/expense
expense
Insurances
An insurance contract is an agreement
whereby one party, the insurer, in return
for a consideration, the premium,
undertakes to pay to the other, the insured,
a sum of money or its equivalent, upon the
occurrence of a specified event which is
Terminology
0
ti
2
l
9/6/2014
Liability Insurance
- Liability insurance coverthe insureds legal liability to
I4
- The works
i
i
i
15
t
15
9/6/2014
I9
20
property
22
Bond
A surety bond is a form of guarantee.
Conditional bond will onty be paid upon actual proof of defautt, such
as an arbitration or court ruling and payment will only cover the
proven loss sustained by the emp!0yer up to the bond amount.
KY3
24
9/6/2014
Type of bonds
Guarantee
Parent Company Guarantee a contract by the
parent company either agreeing to perform the
contract on the default of the main contractor, or
agreeing to answer by way of securing for the
liability of the contractor to the employer.
.
i
Maintenance bond
tn theory, the employer may be required to
exhaust its remedies against the contractor
before it can proceed against the guarantee
against the guarantee.
u
25
25
each other.
warranty.
27
23
9/6/2014
Fluctuation
Fluctuation may be dened as adjusting the
Contractors Claim
Delays
Clause 38.1 requires this to be stated in the
Appendix if the contract sum is to be adjusted for
uctuation.
It is common practice in Hon% Kong not to
include the ctause as par oft e contract.
the Date of Completion or any extended period or time that has been
Framed, then the Main Contractor shalt pay or aliowthe employer
iqualed and ascertained damages.
it delays caused by the Main Contractor are of a serious nature, the
employer may dstem-line the employment ot the Main Contractor
under the contract.
It the delay is caused by a domestic subcontractor, then this is treated as a delay caused
by the Main Contractor. However, if the delay is
caused by a nominated sub-contractor and the
Main Contractor has done all he can to prevent
the delay, this is treated as a delay caused by
neither party to the contract. Therefore, the
Main Contractor will be entitled under Clause
25.t(m) to be granted an extension of time and
the employer cannot claim liquidated damages
for the period of delay caused.
G
1
i
i
t
9/6/2014
For example
1. Architect's instruction
2. Late issue of drawing, instruction, details or level
>
l
i
Delays caused by Neither Party to
the Contract
Extension of Time
1
5
for comptetion.
ID
2
t
l
t
l
i
delay.
3
i
r
12
E
i
i
i
E
9/6/2014
I
13
I4
completion date.
16
I5
l8
9/6/2014
19
t
>t
1. Materials/plant
."9.":'>$'~!
Labour disruption
Pretlminaries and supervision
lnaon
Head ofce and site overheads and prot
Finance charges
Loss of interest for late payment eto.
2|
22
23
24
9/6/2014
26
1
>
>