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2006 EDITION

Contents
PAGE PAGE
Articles of Agreement 5 5.5 Nominated Supply Contract
documents
Attestation 8 5.6 Further drawings, details, descriptive
schedules and simiiar documents
The General Conditions 5.7 Documents to be provided to
Contractor on time
interpretation and definitions 9 5.8 Electronic copies of drawings
5.9 Documents on Site
Governing iaw 5.10 Return of drawings
Singular, plurai, masculine and 5.11 Submission of manuals and
feminine assignment of warranties
Method of reference to clauses and 5.12 Submission of as-built drawings
Articies 5.13 Limits to use of documents
Articles of Agreement, Conditions and 5.14 Issue of Architects certificates
Appendix to be read as a whoie 5.15 Copy of notice to be given to
Clauses divided into sub-ciauses to be Employer
read as a whoie
Definitions Statutory obligations 24
13:1. L435) Tenders based on Schedule of
Quantities and Rates 6.1 Statutory Requirements
The roie of the Engineer 6.2 Compliance with the Statutory
Sectionai completion of the Works Requirements
Communications 6.3 Fees or charges
1-~'-s'<o'co Notices of defauit or determination to 6.4 Statutory undertakers and utility
be sent by special delivery companies
Parties to act reasonably and
expeditiously Setting out the Works 25

Contractors obligations 16 Setting out and levels

2.1 Contractors obligations Materials, goods, workmanship


2.2 Contractors responsibility and work 25
2.3 Contractors skill and care
2.4 Contractor to inform Architect if he 8.1 Types, standards and quality
finds ambiguities in documents 8.2 Inspection and tests
8.3 Materials, goods, workmanship or
Master programme 18 work not in accordance with Contract
8.4 Rectifying defects
3.1 Master programme to be submitted 8.5 Dismissal from the Works
3.2 Programmes to be updated
3.8 Programme and other documents not Intellectual property rights 27
to be documents forming the Contract
9.1 Intellectual property in design of the
Architects instructions 19 Works
9.2 Intellectual property in materials and
4.1 Architect may issue instructions up to goods
the issue of the Final Certificate 9.3 lntellectuai property in plant and
4.2 Architect to issue instructions in writing equipment
4.3 Compliance with Architects 9.4 Payment of royalties included in
instructions Valuation
4.4 Contractor to carry out preventative work
10 Contractors site management team 28
Documents forming the Contract
and other documents 20 10.1 Contractors site management team
10.2 Construction manager
5.1 The documents forming the Contract
5.2 Architect and Quantity Surveyor to 11 Access for the Architect to
keep documents available the Works 28
5.3 Copies of documents for Contractor
5.4 Nominated SubContract documents Contractor to give access
PAGE PAGE
12 Architects representative 29 19.1 Assignment
19.2 Sub~|etting
12.1 Architects representative
12.2 Delegation of duties and powers 20 Injury to persons and property and
12.3 instruction to bind parties indemnity to Employer 38

13 Variations, Provisional Quantities Contractor to indemnify Employer


Provisional Items and Provisional
Sums 29 21 Insurance against injury to persons
or property 38
13.1 Architeots authority to issue
instructions requiring a Variation 21.1 Employees Compensation insurance
13.2 Instructions for Provisional Quantities 21.2 Third party liability insurance
Provisional Items and Provisional Sums 21.3 insurers and terms to be approved
13.3 Valuation of Contractors work 21.4 Policies to be produced
13.4 Valuation ruies 21.5 Event of failure to insure
13.5 Adjustment of Contract Sum 21.6 No prejudice to Contractor's indemnity
13.6 Contractor's right to be present during
measurement on Site 22 Insurance of the Works 40
13.7 Variation necessitated by fault of
Contractor 22.1 Alternative clauses for Contractors All
13.8 Valuation of Nominated Sub- Risks Insurance of the Works
Contractors work or Nominated 22.2 Basic requirements for Contractors All
Suppliers materials and goods Risks Insurance of the Works
22.3 Specific requirements for Contractors
14 [Not used] 33 All Risks insurance of the Works
22.4 Insurance of the Works to be in joint
15 Contract Sum 33 names and period of insurances
22.5 Parties obligations if loss or damage
Adjustment of Contract Sum occurs
22.6 Contractor's payment not more than
is Materials and goods on or off-=site 34 insurance proceeds
22.7 insurance without prejudice to
Property in materials and goods Contractors obligations

17 Substantial Completion and 2213. Insurance of the Works by the


defects liability 34 Contractor A 43

17.1 Substantiat Completion Certificate for 22A.1 Contractor to effect Contractors All
the Works Risks lnsurance of the Works
17.2 Separate Defects Liability Period for 22A.2 Insurer to be approved and remedy it
each Section and Relevant Part Contractor faits to insure
17.3 Recttfying defects 22A.3 Use of annual policy maintained by
17.4 Defects Rectification Certificate for the Contractor
Works
17.5 Separate certificate for each Section or 223 Insurance of the Works by the
Retevant Part Employer 43
17.6 Damage by a Specified Peril
17.7 Other rights and remedies 22B.1 Employer to effect Contractors All
Risks Insurance of the Works
18 Partiat possession by Employer 36 228.2 Remedy if Employer fails to insure

18.1 Parttai possession 22C Insurance of existing building and


18.2 Substantial Completion insurance of the Works by the
18.3 Completion of rectifying defects Employer 44
18.4 Liquidated and ascertained damages
18.5 Damage by a SpecifEedvPeril 22C.1 Employer to effect insurance against
Specified Perils to the existing building
19 Assignment and sub-letting 37 22C.2 Empioyer to effect Contractors All
Risks Insurance of the Works
PAGE PAGE
22C.3 Remedy if Employer fails to insure 29.1 Nomination of a subcontractor or a
supplier
23 Possession, commencement and 29.2 Contractors right of reasonable
completion 44 obiection
29.3 Sub-contractor and suppiier warranty
23.1 Possession of Site to Employer
23.2 Commencement and completion 29.4 Contractor's tender for work provided
23.3 Postponement or suspension for by a Prime Cost Sum
29.5 Nomination using the standard
24 Damages for non-completion 45 conditions
29.6 Contractor's responsibility for
24.1 Architect to certify Contractors faiiure Nominated Sub-Contractors and
to compiete on time Nominated Suppliers
24.2 Liquidated and ascertained damages 29.7 Quantity Surveyors notification of
24.3 Refund if Completion Date revised interim payments
29.8 Direct payment of Nominated Sub~
25 Extension of time 46 Contractors and Nominated Suppliers
29.9 Extension of time for completion of
25.1 Contractors first notice of delay Nominated SubContract works or
25.2 Contractors second notice delivery of Nominated Supply Contract
25.3 Fixing new Completion Date goods
25.4 Contractor's defauit invoived in the delay 29.10 Substantial completionrof Nominated
25.5 Rate of progress SubContract works
25.6 Nominated SubContractors and 29.11 Architect to certify Nominated Sub-
Suppliers to be kept informed Contractor's failure to complete on time
29.12 Eariy final payment to Nominated Sub-
26 Delay recovery measures 51 Contractor or Nominated Supplier
29.13 Renomination
26.1 Delay recovery measures 29.14 Architects consent
26.2 Delay recovery proposals 29.15 Ernpioyer not liabie to a Nominated
26.3 Contractor to carry out deiay recovery SubContractor or Nominated Supplier
measures
26.4 Extension of time to cover shortfall in 30 Persons engaged by Employer 63
recovering deiay
26.5 Contractor to be reimbursed for the 30.1 Persons for whom the Employer is
cost of preparing the proposal if cielay responsible
recovery not instructed 30.2 Access to the Site and permission to
carry out work
27 Direct toss and/or expense 53 30.3 Contractor to fulfil his obiigations to
persons engaged by the Employer
27.1 Contractors notice of claim for
additionai payment 31 Facilities for statutory undertakers
27.2 Quantity Surveyors ascertainment of and utility companies 64
Contractor's ciaim
27.3 Contractors defauit involved in the 32 Certificates and payments 64
delay or disruption
27.4 Nominated Sub~Contractors claim for 32.1 interim Certificates and interim
additional payment valuations
32.2 Estimate of amount due in Interim
28 Notice of claims for additional Certificate
payment 55 32.3 Off-site materials or goods
32.4 Calculation of Retention
28.1 Contractor to give notice of claim 32.5 Retention Rules
28.2 Contractor to submit particulars 32.6 Quantity Surveyor to prepare finai
28.3 Condition precedent to Contractors account
entitlement to additionai payment 32.7 Adjustment of the Contract Sum
32.8 issue of Final Certificate
29 Nominated Sub-Contractors and 32.9 Effect of Final Certificate
Nominated Suppliers 57 32.10 Proceedings commenced before Final
Certificate _
PAGE PAGE
32.11 Proceedings commenced after Final 38 Fiuctuations 84
Certificate
32.12 Effect of Architects certificates 38.1 Fiuctuation provisions only applicable if
32.13 Late payment expressiy stated to be
38.2 Adjustment for fluctuations occurring
33 Surety bond 72 after the Compietion Date

33.1 Contractor to obtain guarantee from 39 Notices, certificates and other


insurance company or bank communications 85
33.2 Release of insurance company or bank
33.3 Empioyers remedy if Contractor fails Submission of notices, certificates and
to deiiver bond other communications

34 Antiquities 73 40 Recovery of money due to the


Employer 85
34.1 Effect of finding antiquities

34.2 Architect's instruction concerning a Employer's power to recover damages
fossil, antiquity or object etc.

35 Determination by Employer 73 Settlement of disputes 85

35.1 Default by Contractor Procedures and Designated


35.2 lnsoivency of Contractor Representatives
35.3 Employers rights upon notice of Reference to Designated
default or determination Representatives
35.4 Consequences of determination _ Reference to mediation
35.5 Quantity Surveyor to prepare final Reference to arbitration
account Timing of arbitration
35.8 The final settlement Arbitrators powers
35.7 Delayed commencement of completion The place of arbitration
works Contractor to continue to proceed
35.8 Other rights and remedies diligently

36 Determination by Contractor 78 Appendix 89

36.1 Default by Empioyer Schedule 1 90


36.2 insolvency of Employer Form of Surety Bond to be given by
36.3 Consequences of determination the Contractor to the Employer
36.4 Contractor to submit finai account
36.5 Quantity Surveyor to check final Schedule 2 94
account Form of Warranty to be given by the
36.6 The final settlement Nominated SubContractor to the
Employer in consideration of
36.7 Architect to notify subcontractors and
Nomination
suppliers
36.8 Other rights and remedies
Schedule 3 97
Form of Warranty to be given by the
37 Determination by Employer or Nominated Supplier to the Employer
Contractor 82 in consideration of Nomination

37.1 Grounds for determination Index to The General Conditions


37.2 Site security
37.3 Consequences of determination
37.4 Quantity Surveyor to prepare final
account
37.5 The final settlement
37.6 Architect to notify subcontractors and
t
suppliers
Artieee et Agreement
This Agreement is made on the .............................. .. day of .............................. .. 20 .... ..

between

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . - - . . . . . . . . o . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . . . . . . . . . . - . . - u . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V - . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(the Contractor)

(1) Whereas the Employer wishes to have work carried out comprising:

. . . . . . . . . . . . . - . . - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . - ~ . . . . . . . . . . . . . . . . . . . . ..

(the Works)

at ..................................................................................................................................................... ..

and has had Tender Documents comprising:

(a) a form of tender (The Form of Tender);


(b) drawings (the Contract Drawings); and
(c) a specification (the Specification)

showing and describing the work to be carried out prepared by or under the direction of or at
the request of the Architect;

(2A) and whereas the Contractor has, based on the Tender Documents, made in the Form~of
Tender his calculation of the sum that he will require for carrying out the Works by preparing
and pricing the Schedule of Quantities and Rates;

1 Delete 2A if the Quantity Surveyor prepared the Schedule of Quantities and Rates
(28) and whereas the Contractor has accepted a schedule of quantities and rates prepared
by the Quantity Surveyor as the Schedule of Quantities prepared by himself; 2

(2C) and whereas the Contractor has, based on the Tender Documents, made in the Form of
Tender his calculation of the sum that he will require for carrying out the Works by pricing the
Schedule of Quantities and Rates; 3

(3) and whereas the Contractor has given to the Employer the Schedule of Quantities and
Rates setting out the build up of the Contract Sum;

(4) and whereas the Architect has given each party one copy of the Articles of Agreement, the
Appendix, the Conditions, the Contract Drawings, the Specification and the Schedule of
Quantities and Rates each signed by or on behalf of the parties.

Now it is agreed as follows

Articie 1
The Contractor will carry out and complete the Works in accordance with and subject to the
Contract for the consideration stated in Article 2.

Articie 2
The Employer will pay to the Contractor the sum of Hong Kong Dollars

. . ........ . .. .... . . ......... . . . . . . ....... . ... . . ... . ... ..... . . . . . ... . . . .. - .. .... . . . .... .. .... ... .. .. . . .. .-. ... .... . . .. .. .. ... . .. ..... . .. .. . .. . . .... . . ..
rn

(HK$ ......................................................................................................................................................)
(the Contract Sum) or such other sum that becomes payable in accordance with and subject
to the Contract.

Article 3
The Architect will be

. ... . . .... .. . . . ... ...... . . .. . ... . . ....... ..... .... . . .. ... .. . .. ..... . . . .... - .. .... . ...... . .. . ... . .. . .... ::.. ... . . .... . ...... . ........ .. . .... . .. . ..
- . - . . . .-

Articie 4
The Quantity Surveyor will be

.. .... .... . .. . . . .. . . . . .... .. . . . . . . . . . . . .. . .... - .--.... . ..... .. . . . .... . . . ... . . . ... . . . . . . . ..-- --.. ... . .. = . -. -u - - .- - - --. . . . . ... . . . .. . . . ... . . . ..
... . . ... ---u

.. .. . . .... . . . . . . ... ..... .- .. . . . . . . . ...... . ..... .... . . . . ..... . .. . . .. . .. . . . ... . . . . - -. . - . -- u--- - --~ ---- - - -- - - - - -- -a uu . - n .--. . ... . . .. . . .. ... . . . .. .
. . . . . . - . n --

2 Delete 2B if the Contractor


prepared the Schedule of Quantities and Rates
3 Deiete 2C if the Contractor prepared the
Scheduie of Quantities and Rates

6
Article 5
(1) in the event of the person appointed to act as either the Architect or the Quantity Surveyor
ceasing to act, the Empioyer shall appoint a replacement as soon as practicable.

(2) it the Contractor objects to the person appointed to succeed either the Architect or the
Quantity Surveyor, the Contractor has the right to refer his objection to an arbitrator
under the Contract provided the reference to arbitration is made within 14 days of the
appointment.

(3) The person appointed as the repiacement to the Architect or the Quantity Surveyor
shall continue to act pending the award of the arbitrator appointed under Article 5(2)
but shali immediately cease to act if so directed by the arbitrator's award. In which
case the Employer shall appoint a further replacement as soon as practicable.

The Contractor shalt have the right of objection under Article 5(2) to a further appointment
of either the Architect or the Quantity Surveyor.

A person appointed as the repiacement to the Architect or the Quantity Surveyor shall
not be entitled to disregard or overrule any agreement, approval, certificate, confirmation,
consent, decision, direction, dissent, instruction, notice, notification, opinion, request
or requirement given or made by the person previously appointed save insofar as the
Contract permits.

Article 6
it a dispute arises under or in connection with the Contract, the parties agree to resolve the
dispute in accordance with the dispute settlement procedures in clause 41.
Attestation

*SilGNE AND SEALED as a deed I SIGNE by the Employer

.. .. . . . .. ... . ... . . . . . .. . . . ... . . . . . .. ... .a. ... . . .. .. . . . . . . . .. .. .. . . . .- . . . .. . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(name and office held by signatory for the Employer) (name and occupation of witness)

(company seat to be impressed here if executed as a deed by a limited company)

SIGNED AND SEALED as a deed I SIGNE by the Contractor

. ...- . . .- . .. . . . . .. . .. .. . . . . .. . . .. ... . .. .. . .. . . . .... . .. . . . .. . . . . . . ... .. . ... .. .. . . . . . . A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

(name and office held by signatory for the Contractor) (name and occupation of witness)

(company seat to be impressed here if executed as a deed by a limited company)

*deiete as appiicabie
The Generai Cendtens

interpretation and definitions

Governing law
1.1 The Contract shall be governed by and construed according to the laws for the time
being in force in Hong Kong.

Singular, plural, masculine and feminine


1.2 Words in the singuiar include the plural and vice versa, and words in the masculine
inciude the feminine and the neuter.

Method of reference to Clauses and Articles


1.3 Unless stated otherwise a reference in the Articles, the Conditions or the Appendix to
any ciause means that clause of the Conditions and a reference to an Article means
that Articie of the Articles of Agreement.

Articles of Agreement, Conditions and Appendix to be read as a Whole


1.4 The Articles of Agreement, the Conditions and the Appendix are to be read as a whole.
Therefore, unless stated otherwise, each one must be read subject to any relevant
qualification or modification in any other one.

Clauses divided into subclauses to be read as a whole


1.5 Where a clause is divided into sub-clauses, the clause is to be read as a whole, and
each sub-clause shali relate to the others as if there was no division between them.

Definitions
1.6 The toilowing words and phrases in the Articles of Agreement, the Conditions and the
Appendix shali have the meanings given below unless the context in which they appear
requires otherwise or the Articles, the Conditions or an item or entry in the Appendix
provides otherwise:

Appendix: the Appendix to the Conditions.

Architect: the person named as the Architect in Article 3, or any successor appointed
under Article 5.

Articles or Articles of Agreement: the Articles of Agreement to which the Conditions are
annexed.

Commencement Date: the date stated in the Appendix for the commencement of the
Works.

Communication: the giving, submitting or issuing of, without limitation, any agreement,
approvai, authorisation, certificate, confirmation, consent, decision, delegation, direction,
dissent, determination, endorsement, instruction, notice, notification, opinion, request,
requirement or statement.

Completion Date: the date stated in the Appendix by which the Works or a Section are
to be completed or such later date to be fixed by the Architect under clause 25.
interpretation and definitions (contd)

Conditions: the Conditions of Agreement and Schedule of Conditions of Building Contract


for use in the Hong Kong Special Administrative Region, Private Edition Without
Quantities and any special Conditions.

Contract: the Articles of Agreement, the Appendix, the Form of Tender submitted by
the Contractor, the Employers ietter of acceptance of the Contractors tender and any
correspondence between the parties expressed to form part of the Contract, the Special
Conditions, it any, the Conditions, the Contract Drawings, the Specification and the
Scheduie of Quantities and Rates.

Contract Drawings: the drawings referred to in the first and fourth recitals of the Articles
and enumerated as such in the Specification.

Contract Sum: the sum stated in Article 2, or such other sum that becomes payable in
accordance with the Contract.

Contractor: the person named as the Contractor in the Articles.

Contractors All Risks insurance of the Works: insurance which provides cover against
physical loss of or damage to the Works, temporary works and materials and goods, as
described in ciause 22.

Date for Possession of the Site: the date or dates for the possession of the whole or
parts of the Site stated in the Appendix under the reference to clause 23.1.

Data otsubstantiai Completion: the date stated in the Substantiai Completion Certificate
for the Works or a Section, issued by the Architect under clauses 17.1 and 17.2.

day: a calendar day and includes Sundays and other days which are general holidays
by virtue of the General Holidays Ordinance (Chapter 149, Laws of Hong Kong).

Defects Liability Period: the period stated in the Appendix under the reference to clause
17.3, commencing on the day after the Date of Substantial Completion of the Works or
a Section or the day after the Relevant Date of Substantial Comptetion of a Relevant
Part.

Defects Rectification Certicate: a certificate issued by the Architect to the effect that
aii defects, shrinkages and other faults have been rectified in accordance with the
Contract, as described in clauses 17.4 and 17.5.

direct loss and/or expense: the monetary consequences that flow naturally without
other intervening cause and independently of special circumstances because of the
direct consequences of a qualifying event and which are not otherwise reimbursed to
the Contractor.

Domestic SubContractor: a person, other than a Nominated SubContractor, to whom


the Contractor subiets any part of the Works and includes a labour only sub-contractor.

Employer: the person named as the Employer in the Articles.

E0
interpretation and definitions (contd)

Engineer: a person engaged as a member of the Employers design team for the design
and supervision of one or more oi the geotechnical, civii, structural or building services
elements of the Works, as referred to in ciause 1.7.

Excepted Risks: (a) Any consequence of war (whether war be declared or not) in which
Hong Kong is actively engaged, the invasion of Hong Kong, acts of terrorists in Hong
Kong, civil war, rebeilion, revolution or miiitary or usurped power in Hong Kong, riot,
commotion or disorder in Hong Kong other than amongst the employees of the
Contractor or any person for whom the Contractor is responsible;
(to) the Architects design of the Works insofar as damage, loss or
injury is the direct consequence of the design;
(c) a cause due to any neglect or default of the Architect, the Employer
or any person tor whom the Architect or the Employer is responsible;
(oi) ionizing radiation or contamination by radioactivity from any nuclear
fuel or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic
expiosive or other hazardous properties of any explosive nuclear assembly or nuclear
component thereof;
and (a) pressure waves caused by aircraft or other aerial devices travelling
at sonic or supersonic speeds.

Fina! Certicate: the certificate issued by the Architect stating the Final Contract Sum
and the total of the amounts of Interim Certificates to be set off against that sum, as
described in clause 32.8.

Finai Contract Sum: the sum resulting from the adjustment of the Contract Sum in
accordance with the Contract.

Form of Tender: the form of tender referred to in the first recital of the Articles as being
part of the Tender Documents.

Hong Kong: the Hong Kong Special Administrative Region.

interim Certificate: a certificate issued by the Architect stating the amount of an interim
payment due to the Contractor, as described in clause 32.1.

Limit 07 Retention: the amount stated in the Appendix under the reference to ciause
32.4 as the limit to the amount of Retention to be held by the Employer on the payment
for the Contractors work in progress.

Nominated SubContract: the subcontract between the Contractor and a Nominated


Sub-Contractor.

Nominated SubContractor: a subcontractor nominated by the Architect under clause


29 to carry out work forming part of the Works.

Nominated Supplier: a supplier nominated by the Architect under clause 29 to suppiy


materials or goods for incorporation into the Works.

E1
nterpretation and definitions (contd)

Nominated Supply Contract: the supply contract between the Contractor


and a
Nominated Supplier.

parties: the Ernpioyer and the Contractor.

Period of Interim Certificates: the period stated in the Appendix under the reference
to
clause 32.1 as the interval between the issuing of Interim Certificates.

person: an individual, firm, partnership, or body corporate.

person for whom the Contractor is responsible: the Contractors servants


or agents,
subcontractors, suppliers, persons employed or engaged in connection with the Works
and persons who may properly be on the Site upon or in connection with the Works
other than the Employer or any person for whom the Employer is responsible.

person for whom the Employer is responsible: the Employer's servants or


agents and
the persons listed in clause 30.1.

postpone: to defer the commencement of operations on an activity.

Prime Cost Sum: a sum either provided in the Contract or arising as described
in clause
29.1 for work to be carried out by a Nominated Sub-Contractor or for materials
or
goods to be obtained from a Nominated Supplier.

Provisional item: an item of work identified as provisional in the Contract to be carried


out by the Contractor it instructed to do so by the Architect under clause 13.2.

Provisional Quantities: an estimated quantity of work identified as provisional


in the
Contract, where the actual quantity could not be accurately determined
when the
Contract was prepared, to be carried out by the Contractor if instructed to do so
by the
Architect under clause 13.2.

Provisional Sum: a sum provided in the Contract for work or for costs, which
could not
be entirely foreseen, defined or detailed when the Contract was prepared,
to be paid to
the Contractor if instructed by the Architect under clause 13.2 to carry out
such work or
incur such costs.

Quantity Surveyor: the person named as the Quantity Surveyor in Article 4, or


any
successor appointed under Article 5.

Relevant Date: the date upon which the Employer took possession of a
Relevant Part
under ciause 18.

Relevant Part: the part of the Works or part of a Section taken possession
of by the
Employer under ciause 18 before Substantial Completion of the Works or
that Section.

Retention: the sum calculated in accordance with clause 32.4 and retained
by the
Employer from the gross valuation of the Contractors work in progress included
in an
Interim Certificate.

12
interpretation and definitions (contd)

Retention Percentage: the percentage entered in the Appendix under the reference to
clause 32.4, used to caiculate the Retention in accordance with the rules set out in that
clause.

Schedule of Quantities and Hates: the schedule of quantities and rates referred to in the
recitals of the Articies and in ciause 1.7, prepared by the Contractor, setting out the
build up of the Contract Sum and submitted with his tender, or a certified true copy of
this schedule.

Section: a part of the Works for which a separate Completion Date is stated in the
Appendix where the Contract provides for sectional completion of the Works.

Site: the iand and other places provided by the Employer for the purpose of carrying
out the Works.

Special Condition: a condition of contract expressly referred to as a Special Condition


of Contract, which adds to or amends the Conditions and is annexed to the Conditions.

special delivery: a communication which is either delivered by courier or sent by registered


post or recorded delivery.

Specialist Contractor: a person, not being a statutory undertaker or utility company as


referred to in clause 6/1(1), engaged by the Employer to carry out work directiy connected
with or ancillary to but not forming part of the Works, as described in clause 30.

Specialist Works: work directly connected with or ancillary to but not forming part of the
Works, to be carried out by a Specialist Contractor.

Specification: the specification referred to in the first and fourth recitals of the Articles
which describes, without iirnitation, the types, standards and quality of the materials
and goods to be used, the standard and quality of workmanship required, the manner
in which work processes are to be carried out, the performance requirements and other
matters and things reiating to the construction of the Works.

Specified Perils: fire, lightning, explosion, storm, tropical cyclone, flood, bursting or
overflowing of water tanks, apparatus or pipes, earthquake, aircraft and other aerial
devices or articles dropped from them.

Standard Conditions of Nominated Sub-Contract: the Standard Form of SubContract


for use where the subcontractor is nominated under the Standard Form of Building
Contract.

Standard Conditions of Nominated Supply Contract: the Standard Form of Supply


Contract for use where the supplier is nominated under the Standard Form of Building
Contract.

subContractor: a person who enters into a subcontract with the Contractor to carry
out work forming part of the Works and includes a Domestic Sub-Contractor and a
Nominated SubContractor.

13
interpretation and definitions (contd)

Substantial Completion: the state of compieticn where the Works or a Section have
been substantially completed to the Architects satisfaction and have passed the required
inspections and tests, as referred to in clauses 17.1 and 17.2.

Substantial Completion Certicate: a certificate issued by the Architect stating the date
when in his opinion the Works or a Section have reached Substantiai Compietion.

substantially completed: the state of compietion where the Works or a Section may not
be absoiutely cornpieted or entirely free from defects but have reached the stage where
they can be taken over and used by the Employer for their intended purpose and where
the unfinished items of work and the remaining defects then patent are only of a minor
nature and extent and their completion or rectification will not unreasonably interfere
with or interrupt the taking over of the Works or Section.

supplier: a person who enters into a supply contract with the Contractor to supply
materials or goods and includes a Nominated Supplier.

suspend: to cease operations for a period of time on an activity in which work has
commenced.

Tender Documents: the documents and drawings referred to in the first recital of the
Articles, or a certified true copy of those documents and drawings.

Valuation: the valuation made by the Quantity Surveyor, in accordance with the valuation
ruies under clause 13.4, of work carried out in response to an Architects instruction
requiring a Variation, remeasurement of Provisional Quantities and Provisional items or
to expend Provisionai Sums.

l/ariation: a change instructed by the Architect to the design, quality or quantity of the
Works inciuding: A

(i) an alteration to the type, standard or quality of any of the materials or goods
comprising the Works;

(ii) the addition, substitution or omission of work; and

(iii) the removal from the Site of materials or goods and the demolition and removal
of work except where provided for in the Contract or where the materials,
goods or work are not in accordance with clause 8.1;

or the imposition of an obligation or restriction instructed by the Architect regarding:

(iv) access to the Site or use of any parts of the Site;

(V) limitation of working space;

(vi) iimitation of working hours; or

(vii) the sequence of carrying out or completing work;

14
interpretation and definitions (contd)

or the addition or alteration to or omission of such obligations or restrictions imposed


by the Contract.

Works: the work briefly described in the Articles of Agreement and shown upon,
described by or referred to in the Contract including any change made to the work in
accordance with the Contract.

Tenders based on Schedule of Quantities and Rates


1.7. (1) The quality and quantity of the work included in the Contract Sum shall be deemed
to be as shown upon the Contract Drawings and described in the Specification.

(2) The Contractor shaii be deemed to have estimated his own quantities of the Works
and shall submit, with his tender, a Schedule of Quantities and Rates setting out a
buildup of the Contract Sum.

(3) The accuracy of the quantities in the Schedule of Quantities and Rates submitted
by the Contractor shall be at the sole risk of the Contractor and the cost of any under or
over estimation of quantities shall be deemed to have been allowed for in the rates of
the item concerned.

(4) The rates in the Schedule of Quantities and Rates shall form part of the Contract
and shall be used for valuing Variations and estimating interim payments.

(5) Where any item which is required by the Contract has not been specifically priced
in the Scheduie of Quantities and Rates, the cost shall be deemed to have been included
in the rates for other items.

>:.'/Kev;r3Z}25s\xQJ.ifszdxariefw-zksva3Lr5ts.i\E$%;9<Js3-1fi.t;:}Ciaxef
M-2
The role of the Engineer
1.8 (1) The Architect may, from time to time, delegate any of his duties and powers under
the Contract to an Engineer.

(2) The deiegation shalt be in writing and copied to the Contractor. It shall specify the
duties and powers that are deiegated and shall remain in force until changed or
terminated in writing by the Architect.

(3) Where in the context of the wording of a clause in the Conditions or where
recognition of the Engineers statutory responsibility requires it, the word Architect in
the Conditions shall be deemed to be read as Engineer.

Sectional completion of the Works


1.9 (1) Where sectional completion of the Works is provided for in the Contract, a reference
to the Works shail be deemed to mean the Works or a Section.

(2) The phrase the whole of the Works means the Works including all Sections.

Communications
i.'i0 Uniess otherwise stated, alt notices, certificates and other communications under the
Contract between the Empioyer, the Architect, the Quantity Surveyor and the Contractor
shail be in writing.

15
interpretation and definitions (contd)

Notices of default or determination to be sent by special delivery


1.11 All notices of default or determination under clauses 85, 36 and 37 shall be sent by
W
special delivery.

Parties to act reasonably and expeditiously


(1) The parties, the Architect and the Quantity Surveyor shall act reasonably and
expeditiously in all matters under the Contract including, without limitation, giving or
withholding consent, approval or agreement, valuing Variations and certifying.

(2) All requirements shall be reasonable requirements and, without limitation, the term
to the Architect's satisfaction shall be construed as meaning to the Architect's
reasonable satisfaction and the term practicable shall mean reasonably practicable.

Contractors obligations

Contractors obligations
2.91 (1) The Contractor shall in compliance with the Contract:

(a) organize, manage, plan and supervise the carrying out of the Works;

(b) coordlnate the carrying out of the Works including the interface between his own
work and the work carried out by each Domestic SubContractor, Nominated Sub-
Contractor, Specialist Contractor, statutory undertaker and utility company;

(c) assist in the coordination of their work by each Domestic SubContractor,


Nominated SubContractor, Specialist Contractor, statutory undertaker and utility
company with the work of each of the others;

(d) design sufficient, safe and adequate temporary works to enable the Contractor to
comply with his other obligations under the Contract, except where the design of
any temporary works is a statutory obligation of any person other than the Contractor
or any person for whom the Contractor is responsible;

(e) carry out any work involved in the development of the Architects design that may
be specified in the Contract;

(t) prepare all shop drawings and coordination drawings required by the Contract;

(g) carry out the maintenance of mechanical and electrical equipment where required
to do so by the Contract for the period of time so specified;

(h) take responsibility for the care of the Works, except for loss or damage arising
from the Excepted Risks, from the Commencement Date until 14 days after
Substantial Completion of the Works or 14 days after the determination of the
employment of the Contractor, whether valid or not, whichever is earlier, except
that the Contractors responsibility for the care of the Works shall terminate in
relation to a Section or Relevant Part 14 days after the Employer takes possession
of that Section or Relevant Part; and

16
Contractors obligations (contd)

(i) carry out the construction of and complete the Works using materials, goods and
workmanship of the types, standards and quality specified in the Contract.

(2) Where the Contract requires the Contractor to prepare details, to carry out the
design or the development of the Architect's design, unless the requirement of fitness
for purpose is specificaily stated, the design or the development of the Architects design
shall be carried out with reasonable skill and care and the Contractor shall be responsible
to the Employer for such work.

Contractors responsibility
2.2 The Contractor shall remain wholly responsible for carrying out and completing the
Works in accordance with the Contract whether or not the Architect or the Architects
representative, if appointed:

(a) visits the Works or a place where materials or goods are being manufactured or
stored, work is being prepared, or design is being carried out;

(b) inspects or tests any materials or goods;

(0) exercises his powers under clause 8; or

(oi) includes the value of any materials, goods or work in an Interim Certificate.

Contractors skili and care


2.3 The Contractor shali exercise in the performance of his obligations under the Contract
ail the skili, care and diligence to be expected of a competent contractor experienced
in carrying out work of a similar scope, nature and size to the Works.

Contractor to inform Architect if he finds ambiguities in documents


2.4 (1) The Contractor shall immediately inform the Architect if the Contractor finds an
ambiguity or discrepancy in or divergence between the following documents:

(a) the Contract Drawings;

(b) the Specification;

(c) the descriptive schedules and other similar documents referred to in clause 5.3(c);

(d) the Nominated SubContract documents and the Nominated Suppiy Contract
documents referred to in clauses 5.4 and 5.5; and

(e) the further drawings, details, descriptive schedules and similar documents referred
to in clauses 5.6 provided from time to time during the carrying out of the Works.

(2) if the Architect agrees with the Contractor, he shall issue an instruction to resolve
the ambiguity, discrepancy or divergence as soon as practicable after receipt of the
_)t.-9 &U'1\%-4 notice from the Contractor and the instruction shall, if considered appropriate by the
Architect, require a Variation.

17
3 Master programme

Master programme to be submitted


3.1 (1) The Contractor shalt submit to the Architect within the time stated in the Appendix:

(a) 6 copies of a master programme prepared for his own purposes for organising,
managing, pianning, supervising and co~ordinating the carrying out of the Works
and completing them by the Compietion Date;

(b) a method statement describing the methods of construction and the resources
that he intends to use to carry out the Works;

(c) a list of the names and details of the site management and supervisory team
personnel, referred to in ciause 10, with job descriptions and detaiis of their durations
on the Site; and

(d) a list of the piant, equipment and temporary works which he intends to suppiy, use
or construct, as the case may be.

(2) The master programme shall:

(a) show the activities and the sequence in which the Contractor proposes to carry
out the Works;

(b) show the periods of time estimated for each activity; and

(c) make aiiowance for the carrying out of Specialist Works, insofar as a general
description of these works is given in the Contract, and work by statutory
undertakers and utility companies as referred to in clause 6.4(1).

(3) The Contractor shall submit 6 copies of any other programme that may be required
by the Contract at the time or times so specified.

(4) Where any other part of the Contract sets out requirements in respect of the
submissions to be made by the Contractor under clause 3.1, the submissions shall be
made in accordance with those requirements.

Programmes to be updated
3.2 (1) The Contractor shalt reguiariy update the master programme and any other
programme used in carrying out the Works to reflect the current status of the progress
of the Works, and shail submit 6 copies of the updated programme to the Architect at
the intervals stated in the Contract (or, if this is not stated, at 3 month intervals) and in
any event within 28 days of:

(a) an Architects decision to fix a new Completion Date under clause 25.3;

(b) the Empioyer taking possession of a Section or a Relevant Part of the Works;

(c) the determination of the empioyment and renomination of a Nominated Sub-


Contractor; or

E8
Master programme (contd)

(d) the termination of a suppiy contract and re-nomination of a Nominated Supplier.

(2) The programme shali be revised to indicate the modifications that the Contractor
beiieves are necessary to achieve completion of the Works by the Completion Date if
the Contractor decides to take action in response to the Architects notice under clause
25.5.

(3) Programme updates shali be based upon the logic, activities and durations shown
in the previous programme. Any change to the programme structure apart from activity
status that may be necessary shall be clearly indicated and explained to the Architect.

Programme and other documents not to be documents forming the Contract


Neither the programme, the method statement nor other document submitted under
clause 3 shaii be documents forming the Contract and no comment made by the Architect
(D
on any of these documents shali impose an obligation on the Employer.

Architecfs instructions

Architect may issue instructions up to the issue of the Final Certificate


The Architect may issue instructions that he is empowered to issue under the Conditions
at any time up to the issue of the Final Certificate including during the time that the
Contractor may be carrying out work after the Date of Substantial Completion of the
Works, but he shall not instruct a Variation after the issue of the Defects Rectification
Certificate for the Works, a Section or a Relevant Part as the case may be.

Architect to issue instructions in writing


(1) The Architect must issue ali instructions in writing in accordance with clause 1.9.
All orai instructions given must be confirmed in writing within 5 days of giving the oral
instruction. If the Architect gives an oral instruction that the Contractor believes requires
a Variation it shall have no immediate effect, the Contractor shail confirm the oral
instruction requiring a Variation in writing to the Architect within 7 days of it being issued
(D
and if not dissented to in writing by the Architect within 7 days from his receipt of the
(D Contractors confirmation the Variation shall take effect on the expiry of the latter 7
days.

(2) Where an Architects oral instruction requiring a Variation has been confirmed in
writing by the Contractor under ciause 4.2(1) and not dissented to by the Architect, the
Architect shall issue the written instruction for a Variation for record purposes as soon
as practicable after the Contractors confirmation.

Compliance with Architects instructions


(i) Subject to ciauses 42(1) and 4.3(2), the Contractor shall comply with all instructions
that the Architect is empowered by the Conditions to issue as soon as practicable. if
there is a disagreement between the Architect and the Contractor as to whether an
instruction invoives a Variation, the Contractor shall comply with the instruction and
may, it he is not satisfied, require the disagreement to be resolved under clause 41.

I9
Architects instructions (contd)

(2) lithe Contractor disagrees that the Architect is empowered by the Conditions to
issue an instruction he may within 7 days of receipt of that instruction require the
disagreement to be resolved under clause 41.

(3) if the Contractor does not begin to comply with an instruction within 7 days after
receipt of a written notice from the Architect requiring compliance with that instruction
in accordance with clause 4.3(i) and the Architect issues a certificate to that effect by
speciai delivery, the Employer may, without prejudice to his other rights and remedies,
engage other persons to carry out that instruction. All additional costs incurred by the
Employer in connection with the employment of the other persons to carry out that
instruction may be recovered from the Contractor under ciause 40 or as a debt.

(4) The Contractor shall provide reasonable access to the persons engaged by the
Employer under ciause 43(3) and shall permit them to carry out their work without
hindrance.

Contractor to carry out preventative work


4.4 (1) In the event of an emergency caused by an event arising out of or in connection
with the Works that threatens the safety of the Works or any person or property, the
Contractor shail immediateiy:

(a) carry out all necessary preventative work without waiting for an Architects
instruction; and

(b) immediately inform the Architect of the emergency and of the action taken or
preventative work being carried out.

(2) The Architect shali issue an instruction confirming a Variation for preventative work
carried out initially without an Architect's instruction, provided that the work was not
required to be carried out in fulfilment of a Contractors obligation or because of a
breach of contract or other default by the Contractor or any person for whom the
Contractor is responsible.

Documents forming the Contract and other documents

The documents forming the Contract


5.1 (1) The documents forming the Contract shall be:

(a) the Articles of Agreement and the Appendix;

(13) the Form of Tender submitted by the Contractor together with the Emp|oyers letter
of acceptance of the Contractors tender and any correspondence between the
parties expressed to form part of the Contract;

(c) the Special Conditions if any;

(d) the Conditions;

(e) the Contract Drawings;

20
Documents forming the Contract and other documents (contd)

(f) the Specification; and

(g) the Schedule of Quantities and Rates.

(2) The order of precedence of the documents forming the Contract shall be as listed
in paragraphs (a) to (g) above.

(3) As provided for in ciause 1.7, the accuracy of the quantities in the Schedule of
Quantities and Rates shalt be at the Contractors risk. The quantities shall not form part
of the Contract but the rates shall form part of the Contract.

Architect and Quantity Surveyor to keep documents available


The Architect shalt provide two copies, certified on behalf of the Employer as a true
copy, of each of the documents forming the Contract and two certified true copies of
each of the documents forming the Nominated SubContracts and the Nominated Supply
Contracts as referred to in clauses 5.4 and 5.5, and the Architect and the Quantity
Surveyor shalt both keep one of each of these copies available at all reasonable times
for the purposes of the Contract.

Copies of documents for Contractor


As soon as practicable after the acceptance of the Contractors tender the Architect
shaii provide the Contractor, without charge, with:

(a) 1 copy, Certified on behalf of the Employer as a true copy, of each of the documents
forming the Contract;

(b) 3 further copies of the Contract Drawings and the Specification; and

(c) 3 copies of any descriptive schedules or other similar documents prepared by or


under the direction of the Architect before the acceptance of the Contractors tender
and necessary for use in carrying out the Works.

Nominated SubContract documents


The Architect shail provide the Contractor, without charge, with 3 further copies of the
Nominated SubContract, the subContract drawings, the sub-contract specification,
the subcontract schedule of quantities and rates, as the case may be, descriptive
schedules and other simiiar documents as soon as practicable after the award of each
Nominated SubContract.

Nominated Supply Contract documents


The Architect shail provide the Contractor, without charge, with 3 further copies of the
Nominated Suppiy Contract, the supply contract drawings, the supply contract
specification, the suppiy contract schedule of quantities and rates, as the case may be,
descriptive schedules and other similar documents as soon as practicable after the
award of each Nominated Supply Contract.

21
ocumentsforming the Contract and other documents (contd)

Further drawings, details, descriptive schedules and similar documents


(1) The Architect shall provide the Contractor, without charge, and
from time to time
during the carrying out of the Works, with 3 copies of all further
drawings, details,
descriptive schedules or similar documents (referred to in clause
5 as the suppiementary
documentation) that, in the Architects opinion, are reasonably necessary
for use in
carrying out the Works or to explain or amplify the Contract Drawings,
the Nominated
SubContract drawings and the Nominated Supply Contract drawings.

(2) If in the Contractors opinion he requires more supplementary


documentation than
that provided by the Architect under clause 5.6(i) he shall submit
a written request to
the Architect specifying what further supplementary documentation
he requires.

(3) It shalt be at the sole discretion of the Architect to decide


which, if any, of the
suppiementary documentation requested by the Contractor the
Architect will provide.

Documents to be provided to Contractor on time


.
(1) The supplementary documentation referred to in clause 5.6 shall be
provided when,
having regard to the progress of the Works and the Contractors
procurement, fabrication
and other iead in times, it is reasonably necessary for the Contractor
to receive it.

(2) The Contractor shail inform the Architect sufficiently in advance


of the time that he
requires the suppiementary documentation to enable the Architect
to fulfil his obligations
under ciause 51(1).

Electronic copies of drawings


if, within 14 days after the acceptance of the Contractors tender,
the Contractor requests
the Architect in writing to do so, the Architect shall provide
the Contractor, without
charge, with electronic copies of ali of the drawings required
to be provided under
clauses 5.3, 5.4, 5.5 and 5.6 that have been produced electronically
in lieu of the hard
copies referred to in those clauses. '

Documents on Site
The Contractor shall keep on the Site so as to be available to
the Architect and the
Quantity Surveyor at all reasonable times 1 copy of:

(a) the Contract Drawings;

(b) the Specification;

(c) the Scheduie of Quantities and Rates;

(ol) the programmes and other documents referred to in


clause 3;

(e) the descriptive schedules or other similar documents


referred to in clause 5.3
prepared by the Architect before the acceptance of the Contractors
tender;

(f) the Nominated SubContract documents and Nominated


Supply Contract
documents referred to in ciauses 5.4 and 5.5;
Documents forming the Contract and other documents (contd)

(g) the suppiementary documentation referred to in clause 5.6 provided by the Architect
from time to time during the carrying out of the Works; and

(h) all other documents that the Contractor is required to keep on Site in fulfilment of
his statutory obligations.

Return of drawings .
5.10 The Contractor shall return to the Architect all drawings, specifications, details,
descriptive schedules and other similar documents provided under clause 5, if required
by the Architect to do so, either upon the issue of the Final Certificate or the final
conciusion of any proceedings to which the Contractor is a party, whichever is later
and the Contractor may take copies for his own records.

Submission of manuals and assignment of warranties


5.11 (1) The Contractor shall submit to the Architect ail the operation and maintenance
manuals received by the Contractor.

(2) The Contractor shall assign to the Employer (so far as he is lawfully able to do so)
the benefits of all suppliers and subcontractors warranties, guarantees or other ancillary
agreements for materials, goods or work insofar as they are required by the Contract,
Nominated SubContracts or Nominated Supply Contracts, other than the direct
warranties to the Employer required under the Nominated SubContracts and Nominated
Supply Contracts, within 60 days after the issue of the Substantial Completion Certificate
for the whole of the Works.

(3) Where the Contractor assigns the benefit of a suppliers or sub-contractors


warranty, guarantee or other anciilary agreement for materiais, goods or work to the
Employer, the Employer shall exhaust all remedies under the warranty, guarantee or
ancillary agreement before enforcing the terms of the Contract against the Contractor
in respect of any matter for which a cause of action exists against the subcontractor or
supplier under the warranty, guarantee or other anciilary agreement.

Submission of asbuilt drawings


5.12 (1) The Contractor shail submit to the Architect 2 copies of a complete set of the as-
built drawings that are required by the Contract, Nominated SubContracts or Nominated
Supply Contracts within 60 days of the issue of the Substantial Completion Certificate
for the whole of the Works.

(2) Where the drawings referred to under clauses 5.3, 5.4, 5.5 and 5.6 have been
issued electronically, the Contractor shall, if so required by the Architect, provide the
as-built drawings electronicaliy.

Limits to use of documents


5.13 (1) The Contractor shalt not use any of the documents referred to in clause 5 for any
purpose other than the Works and any proceedings relating to the Contract.

(2) Neither the Ernpioyer, the Architect nor the Quantity Surveyor shall divulge any of
the rates or prices in the Schedule of Quantities and Rates or use them except for the
purposes of the Contract and any proceedings reiating to the Contract.

23
Documents forming the Contract and other documents (contd)

issue of Architects certificates


5.14 The Architect shail issue ail certificates to the Employer and shall, at the same time,
issue a copy of each certificate to the Contractor.

Copy of notice to be given to Employer


5.15 Whenever the Architect issues a notice to the Contractor by special delivery, he shall
issue a copy of the notice to the Employer at the same time.

Statutory obligations

Statutory Requirements
6.1 The Contractor shail comply with and give the notices required by any Ordinance,
regulation, ruie, order or by-Eaw applicabte to the Works (the Statutory Requirements)
which are to be complied with by the Contractor.

Compliance with the Statutory Requirements


6.2 (1) The Contractor shall immediately notify the Architect it the Contractor finds that
carrying out the Works in compliance with the Contract or with an Architects instruction
requiring a Variation will infringe the Statutory Requirements.

(2) it the Architect agrees with the Contractor, he shall issue an instruction to resolve
the infringement as soon as practicable after receipt of the notice and the instruction
shali, if appropriate, require a Variation.

Fees or charges
6.3 (1) The Contractor shall pay all fees or charges legatiy demandable under the Statutory
Requirements.

(2) The net amount of those fees or charges paid by the Contractor shall be added to
the Contract Sum unless they:

(a) are fees or charges that the Contractor is liable to pay under the Statutory
Requirements, and the liability was known prior to the date for submission of tenders
and has not been increased;

(b) are required to be altowed for in the Contract;

(c) are provided for by a Provisional Sum; or

(cl) arise out of a default, delay or faiiure by the Contractor or a subcontractor to


comply with the Statutory Requirements or the Contract.

24
Statutory obligations (contd)

Statutory undertakers and utility companies


H9, (1) Statutory undertakers or utility companies carrying out work in pursuance of their
statutory obligations and not having a contractuai reiationship with the Employer, the
Contractor or any person for whom the Contractor is responsible shall be classified as
statutory undertakers or utility companies and not Nominated SubContractors or
tall persons engaged by the Employer under clause 30 and the fees or charges for their
work shail be regarded as fees and charges legally demandable under the Statutory
Requirements and processed in accordance with clause 6.3.

(2) The Contractor snail allow those persons reasonable access to the Site, permit
them to carry out their work and provide them with the facilities referred to in clause 31.
ce,
ts) (3) Statutory unolertakers or utility companies engaged under contracts with the
Employer to carry out work directly connected with or ancillary to but not forming part
of the Works shall be classified as Speciaiist Contractors as referred to in clause 30.1.

hat (4) Statutory undertakers or utility companies engaged under contracts with the
:ion Contractor or a Nominated SubContractor to carry out work forming part of the Works
shall be classified as sub~contractors or subsubcontractors as the case may be.

)|Ve Setting out the Works


zion
Setting out and levels
(1) The Architect shall provide the Contractor with accurately dimensioned setting out
drawings containing the information and levels necessary for him to set out the Works.
:ory
(2) The Contractor shail be responsible for accurately setting out the Works and shall
correct any error arising from inaccurate setting out at his own cost unless the Architect
l to accepts the error without correction subject to a reasonable reduction in the Contract
Sum having regard to the Employers loss of value of the Works and any expenses that
he may incur arising from the inaccurate setting out.
cry
lers Materials, goods, workmanship and work

Types, standards and quality


(1) The Contractor must provide all materials and goods of the types, standards and
quaiity described in the Contract to the Architects satisfaction that the Contractor has
met these requirements.

(2) Where the Contractor is responsible for the selection of the materials and goods in
accordance with a performance specification or otherwise, the materials and goods
must be fit for the purpose stated in the Contract.

(3) If any of the specified materials or goods are not procurable, then the Contractor
shall submit alternative proposais for materials or goods of similar type and standard
and of comparable quaiity and price to the Architect for his approval; and

25
8 Materials, goods, workmanship and work (contd)

(a) if the proposed alternative materiais or goods are of similar type and standard and
of comparabie quality and price to those specified, and the Architect approves
them, the substitution of the alternative materials or goods for those specified
shalt be made with no adjustment to the Contract Sum; or

(b) if the proposed aiternative materials or goods are not of similar type and standard
or comparable quality or price to those specified, and the Architect approves them,
he shail instruct a Variation to adiust the type, standard, quality or price.

(4) The Contractor shall provide the Architect, upon his request, with vouchers, test
certificates or other evidence to satisfy the Architect that the materials and goods compiy
with the Contract.

(5) The Contractor's workmanship must be of the standard and quality described in
the Contract to the Architect's satisfaction.

(6) All work must be carried out in a proper and workmanlike manner in accordance 8.4
with the Contract or, in the absence of any specific performance requirements, to the
Architects satisfaction.

inspection and tests


8.2 (1) The Contractor shali carry out or, if so required by the Contract, arrange for a third
party to carry out, the tests specified in the Contract in compliance with the specified
testing procedures.

(2) In addition to the tests specified in the Contract, the Architect may instruct the
Contractor to open up for inspection any work covered up and to carry out, or arrange
for a third party to carry out, tests of materials and goods (whether or not already
incorporated in the Works) and work which has been carried out.

(8) The cost of the testing, the opening up for inspection and any consequential making
good shall be added to the Contract Sum unless:

(a) the inspection or test is provided for in the Contract;

(b) the inspection or test shows that the materials, goods, workmanship or work are
not in accordance with clause 8;

(c) the inspection or test was considered necessary by the Architect because, as a
result of the faiiure of a previous inspection or test, further investigation of similar
materiais, goods or work was required to establish to his satisfaction their
compliance with clause 8; or

(Ci) the work was carried out without the inspection notice required by the Contract.

Materials, goods, workmanship or Work not in accordance with Contract


8.3 The Architect may, it any materials, goods, workmanship or work are not in accordance
with the Contract, instruct:

26
8 Materials, goods, workmanship and work (contd)

:l and (a) the removal from the Site and the replacement of materials
and goods that are not
roves in accordance with clause 8;
sified
(b) the repair or demolition, removal and reconstruction of work which,
in respect of
materials, goods or workmanship, is not in accordance with clause
8;
tdard
:hem, (c) the acceptance, without replacement or reconstruction,
of some or all of the
materials, goods or work that are not in accordance with clause
8, subiect to a
reasonable reduction in the Contract Sum having regard to the reduction
in the
, test value of the materials, goods or work; and
IITI

a (ci) a Variation for alternative remedial work to some or all of the


materials, goods or
work as is reasonably necessary in consequence of them not being in
accordance
ed in with clause 8, with no extension of time or addition to the Contract
Sum.

Fiectifying defects
ance The Architect may instruct the Contractor to rectify defects which
appear before the
Jthe commencement of the Defects Liability Period.

Dismissal from the Works


The Architect may instruct the Contractor to dismiss any individuai from
the Works for
third incompetence, misconduct or other similar reasons.
:ified
Intellectual property rights

t the intellectual property in design of the Works


mge The Contractor shall pay the cost of any royalty, license fee or
other sum legally
aady dernandable for the use of intellectual property in connection
with the design of the
permanent Works other than works under a Nominated Sub-Contract
or materials and
goods supplied under a Nominated Supply Contract, and the
cost shall be added to
king the Contract Sum.

intellectual property in materials and goods


The Contractor shall pay the cost of any royalty, license fee
or other sum legally
demandable for the use of intellectual property in connection with the
incorporation of
are materials and goods into the permanent Works otherthan materials and
goods supplied
under a Nominated SubContract or a Nominated Supply Contract.
The cost shall be
added to the Contract Sum unless the Contractor was responsible for
the selection of
as a the materiais and goods in accordance with a performance specification
or otherwise
iilar in which case the cost shall be deemed to be included in the Contract
Sum.
weir
intellectual property in plant and equipment
(1) The payment of ali royalties, license fees or other sums legally demandable
Ct.
for the
use of intellectual property in respect of plant, equipment,
machinery, methods or
anything whatsoever used in carrying out the Works shall be deemed to
be included in
the Contract Sum.
'1Ce

27
intellectual property rights (contd)
12
(2) The Contractor shall indemnify the Employer from and against ail claims,
proceedings, damages, costs and expense arising from the Contractor or any sub-
contractor or suppiier infringing or being held to have infringed any of the intellectual
12.
property rights referred to in clause 9.3(1).

Payment of royalties included in Valuation


9.4 if the Contractor uses any intellectual property in compliance with an Architects
instruction requiring a Variation, any royalty, license fee or other sum legally chargeable
which the Contractor pays in connection with that instruction shall be included in the
Valuation of the Variation.

10 Contractors site management team

Contractors site management team


10.1 (1) The Contractor shall maintain the site management and supervisory team (referred
to in clause 10 as the team) iisted in clause 3.1(1)(c) on the Site for as iong as is
necessary for the satisfactory fulfilment of his obligations under the Contract.

(2) The team shail be of sufficient strength with personnel of appropriate qualifications,
seniority and experience, having regard to the size, complexity and nature of the Works,
to properly organise, manage, plan, supervise and coordinate the carrying out of the
Works.

Construction manager
10.2 (1) The team shalt be headed by an experienced and competent construction manager
approved by the Architect. 12

(2) An instruction issued by the Architect to the construction manager shall be deemed
to have been issued to the Contractor.

(3) The Architect may instruct the Contractor to replace the construction manager or
a member of the team for incompetence or misconduct.

(4) The Contractor shail not remove or repiace the construction manager or any member
of the team unless requested by or agreed to by the Architect.

11 Access for the Architect to the Works

Contractor to give access


The Contractor shall give the Architect and any person authorised by the Architect
access, at all reasonabie times, to the Works or any place where materials or goods
are
being manufactured or stored, work is being prepared or design is being carried
out,
and shall ensure that all his subcontractors and suppliers do the same.

28
Architects representative

Architects representative
of works
The Architect and/or the Employer may appoint an architect, engineer, clerk
and acting
or other person as the Architects representative to be resident on the Site
under the direction of the Architect.

The Architects representatives duties shall be to:


:ts
bie (a) watch and inspect the Works;
the
(b) inspect and test materials and goods;

(c) check that the types, standards and quality of the materials and goods, the standard
in
and quality of the Contractors workmanship and the quality of his work are
accordance with the requirements of the Contract;
red
to
3 is (d) check, amend as necessary, and where appropriate sign the records submitted
him by the Contractor for approval; and

-the Architect
ms, (e) carry out the duties and exercise the powers delegated to him by
rks, under clause 12.2,
the
for
and the Contractor shalt give the Architect's representative every reasonable facility
the performance of these duties.

tger Delegation of duties and powers


under
(1) The Architect may, from time to time, delegate any of his duties and powers
the Contract to the Architects representative as defined under clause 12.1.
ned
it shall
(2) The delegation shall be in writing and shail be copied to the Contractor.
until changed or
specify the duties and powers that are delegated and remain in force
5|" or terminated in writing by the Architect.

instruction to bind parties


an instruction
iber (1) The Architects representative shall issue all instructions in writing and
from the Architects representative shall bind the parties if:

(a) the Architect has the power to give it; and

(b) it is within the terms of the delegation.


tect
;are
_
(2) The Contractor may, within 7 days of receiving an instruction from the Architects
reverse or vary
out, representative, submit an objection to the Architect who shall confirm,
shall have no effect.
that instruction within a further 7 days, failing which the instruction

Sums
Variations, Provisional Quantities Provisional Items and Provisional

Architects authority to issue instructions requiring a Variation


that:
13.1 (1) The Architect may issue an instruction requiring a Variation provided

29
13 Variations, Provisional Quantities Provisional Items and Provisionai Sums (contd) 13

(a) the Contractor has the right of reasonable objection to a Variation which imposes
or changes an obiigation or restriction on the Contractor regarding access to the
Site, use of any part of the Site or limitation of working space or working hours and
the Architect shalt, upon receipt of the Contractors objection, either confirm or
withdraw the instruction, and it the instruction is confirmed, the Contractor may
refer the matter to arbitration under clause 41;

(b) the Contractors written consent is given to an instruction either nominating a sub-
contractor to carry out work included in the Contract which is to be carried out by
the Contractor or omitting work in order for it to be carried out by others; and

(c) the instruction or accumulation of instructions shall notfunclamentally change the


scope or nature of the Works.

(2) The instruction requiring a Variation shaii describe the change required to the design,
quaiity or quantity of the Works or the imposition of or change to any obligation or
restriction on the Contractor and where appropriate the Architect shall issue revised
drawings and/or schedules.

(3) The Contractor has no right to carry out work involving a Variation without a written
instruction from the Architect or confirmation of an oral instruction from the Contractor
except in the event of an emergency as provided for in Clause 4.4.

instructions for Provisional Quantities Provisional items and Provisionai Sums


13.2 The Architect shall issue an instruction for:

(a) the carrying out of work or the provision of goods covered by Provisional Quantities
or Provisionai Items in the Contract, Nominated SubContracts or Nominated Supply _
Contracts; and

(b) the expenditure of Provisionai Sums inciuded in the Contract, Nominated Sub-
Contracts or Nominated Supply Contracts.

Vaiuation of Contractors work


1 3.3 The Quantity Surveyor shall measure and value work carried out by the Contractor in
response to an Architect's instruction under:

(a) ciause 13.1 requiring a Variation;

(b) clause t3.2(a) for the remeasurement of Provisional Quantities and Provisional items;
and

(c) ciause 13.203) to expend a Provisionai Sum,

and the Vaiuation shali be made in accordance with the rules set out in ciause 13.4.

Valuation rules
13.4- (1) Where the Valuation relates to the carrying out of:

30
it'd) C13 Variations, Provisional Quantities Provisional Items and Provisional Sums (contd)

ses (a) additional or substituted work which can be properly valued by measurement;
the
and (is) work which is the subject of Provisional Quantities or Provisional items; or
1 or
nay (c) work invoived in the expenditure of Provisional Sums.

the work shall be measured and shall be valued in accordance with the following ruies:
;ub
t by (i) where the work is the same as or similar in character to and is carried out
under the same or similar conditions to work priced in the Schedule of
Quantities and Rates, and the Variation does not substantially change the
the quantity of that work, the rates in the Schedule of Quantities and Rates for
that work shall determine the Valuation;

iign, (ii) where the work is the same as or similar in character to work priced in the
n or Schedule of Quantities and Rates but is not carried out under the same or
sed similar conditions, or the Variation substantially changes the quantity of that
work, the rates in the Schedule of Quantities and Rates for that work shall
determine the Valuation but with a fair adjustment for the difference in conditions
tten or quantity;
ctor
(iii) where the work is not the same as or similar in character to any work priced in
the Schedule of Quantities and Rates the work shall be valued at fair rates; and

(iv) the word conditions in ciause 13.4(1) shall mean physical conditions and not
financial conditions.
ities
ioply (2) Where the Valuation relates to work which cannot be properly measured and valued
under clause l3.4(1) the work may, with the prior consent of the Architect, be carried
out as daywork and provided that the Contractor:

(a) gives at least 7 days notice to the Architect before carrying out the work, or where
the work is required urgently, as much prior notice as practicable; and

(b) submits vouchers specifying the time spent daily carrying out the work, the
workmens names, the materials and goods and the plant and equipment employed
to the Architect for verification within 14 days of the work being carried out,

the work shali be valued at prime cost comprising iabour, materials, goods, plant and
equipment pius overheads and profit; and:

(C) priced at the daywork rates in the Contract; or

(Ci) where there are no daywork rates in the Contract, priced at:

(i) the labour rates contained in the record of Average Daily Wages of Workers
Engaged in Government Building and Construction Projects published by the
Census and Statistics Department of the Government of the Hong Kong Special
Administrative Region current at the date when the work iscarried out;

31
13 Variations, Provisionat Quantities Provisional items and Provisional Sums (contd) 13

(ii) the net cost of materiais and goods plus the cost of packing, carriage and
delivery; E3.

(iii) the cost of hiring piant and equipment specifically provided for the work
together with the cost of transportation, fuel, maintenance and insurance; and
13
(iv) the percentages for overheads and profit on the prime cost of the labour,
materials, goods, plant and equipment that are included in the Contract or,
where no such percentages are inciuded in the Contract, at 15 percent.
13
(3) Where the Vaiuation relates to the omission of work included or deemed to have
been included in the Scheduie of Quantities and Rates:

(a) the rates for the work in the Schedule of Quantities and Rates shail determine the
Valuation of the work omitted; and

(b) if in the Quantity Surveyors opinion the Contractor has reasonably incurred expense 13
which has become whoily or partly unnecessary as a result of the omission of the
work, a fair adiustment shall be made to the Valuation in respect of that expense.

(4) Where the Vafuation does not relate to additional or substituted work or the omission
of work but relates only to other matters not involving measured work such as the
imposition of or change to an obligation or restriction and the rules in clauses 13.4(1),
13.-4(2) or 13.4(3) cannot reasonably be applied, a fair valuation shall be made.

(5) An appropriate allowance shall be made in a Valuation under clause 13.4 for any
percentage or lump sum adjustment made to the Schedule of Quantities and Rates.

(6) if cornptiance with a Variation instructed under clause 13.1 or a deemed Variation
under clause 14.3 substantially changes the conditions under which other work is carried
out, and resuits in the rates in the Schedule of Quantities and Rates for this work
becoming unreasonabie or inapplicable, then new rates shail be determined based 14
upon the rates in the Schedule of Quantities and Rates adjusted by a fair allowance for
the difference in the conditions. I5

(7) in addition to the Valuation by daywork under clause 134(2) of work which cannot
be properly measured and valued under clause 13.4(1), the Architect may instruct the
Contractor, with the Contractors agreement, to carry out any other work, including
work which can be properly measured and valued under clause 13.4(1), to be valued on
a daywork basis in accordance with clause 13.-4(2).

(8) if the Architect instructs a Variation for additional work after Substantial Completion,
clause 134(1) shalt not apply and a fair valuation shall be made.

(9) N0 ailowance is to be made under clause 13.4 for direct loss and/or expense due
to delay to the progress of the Works, disruption, or any other cause for which the
Contractor can be reimbursed by payment under any other provision of the Conditions.

32
1|) Variations, Provisionaf Quantities Provisional Items and Provisional Sums (contd)

Adjustment of Contract Sum


Effect shail be given to a Valuation under clause 13.3 by adjustment of the Contract
Sum.

Contractors right to be present during measurement on Site


Where it is necessary to measure work on the Site for a Valuation, the Quantity Surveyor
shall give the Contractor an opportunity to be present and to take his own measurements.

Variation necessitated by fault of Contractor


If and to the extent that an instruction requiring a Variation arose as a result of a breach
of contract or other default by the Contractor or any person for whom the Contractor is
responsible the Quantity Surveyor shall take the effect of the breach or default into
account in the Valuation of the Variation.

Valuation of Nominated Sub~Contractors work or Nominated Suppliers materials and


goods
The Valuation of work carried out by a Nominated SubContractor or materials and
goods supplied by a Nominated Supplier in response to an Architects instruction:

(a) for a variation to the sub-contract works or to the materials and goods to be supplied
under a supply contract;

(b) under clause 13.2(a) tor the remeasurement of Provisional Quantities and Provisional
Items in the subcontract or supply contract; and

(c) under ciause 13.203) to expend Provisional Sums included in the sub-contract or
supply contract;

shall be made in accordance with the Nominated SubContract or Nominated Supply


Contract.

[Not used]
*La. XL.2.D

Contract Sum

Adjustment of Contract Sum


(1) The Contract Sum stated in Articie 2 shall oniy be adjusted in accordance with the
Contract and as soon as the amount of the adjustment is calculated in whole or in part,
the amount so calcuiated shail be taken into account in the next Interim Certificate
following the calculation.

(2) The parties are deemed to have accepted any error whether of arithmetic or not in
the caicuiation of the Contract Sum stated in Article 2.

K!)

.U

33
16 Materials and goods on or off-site 17

Property in materials and goods


(1) Materials and goods delivered to or adjacent to the Site or stored off~site shall
become the property of the Employer once their value has been included in an interim
Certificate and paid for by the Employer.

(2) Materials and goods delivered to or adjacent to the Site shail not be removed
without the consent of the Architect. If they have become the property of the Employer
the Contractor shall remain responsible for loss or damage to them except to the extent
that the loss or damage is due to an act or neglect of the Employer or any person for
whom the Employer is responsible.

(3) The Contractor shall indemnity the Employer against loss or damage to materials
and goods stored otfsite that have become the property of the Employer, shall be
responsible for the cost of their storage, handling and insurance and shall not remove
them from where they are being stored except for use upon the Works.

17 Substantiai Completion and detects liability


17
Substantial Completion Certificate for the Works
17.1 The Architect shall issue the Substantial Completion Certificate for the Works when he
is satisfied that the Works have been substantially completed and have passed the
inspections and tests that are required by the Contract to be carried out and completed
before Substantial Completion and all uncompleted items of work shall be completed
as soon as practicable after the issue of the Substantial Completion Certificate, or as
instructed by the Architect, and in any case before the expiry of the Detects Liability
Period. The Architect shall also issue a list of all the uncompleted items of work together
with the Substantial Completion Certificate.

Separate Defects Liability Period for each Section and Relevant Part
17.2 (1) If sectional completion of the Works is provided for in the Contract or the Employer
takes possession of a Relevant Part each Section or Relevant Part shall have its own
separate Detects Liability Period.

(2) The Architect shall issue a Substantial Completion Certificate upon Substantial
Completion of each Section or Relevant Part except for the last one. Upon Substantial
Completion of the last Section or Relevant Part the Architect shall issue the Substantial
Completion Certificate for the Works and Substantial Completion of the whole of the
Works shall be deemed to have taken place on the date stated in that certificate.

(3) The requirements for the issue of a Substantial Completion Certificate under clause
172(2) shall be the same as those under clause 17.1.

Rectifying defects
17.3 (1) The Contractor shall rectify all defects, shrinkages or other faults which are identified
during the Detects Liability Period of the Works, a Section or a Relevant Part stated in
the Appendix, and are caused either by materials, goods or workmanship which are not
in accordance with the Contract, by natural causes or as a result of a Specified Peril
occurring during the construction period prior to Substantial Completion.

34
Substantial Completion and defects liability (contd)

of defects which he
(2) The Architect shalt fist the defects to be rectified in schedules
from time to time during the
shail issue to the Contractor as Architects instructions
be issued not later than 14
Defects Liability Period. The iihai schedule of defects shall
days after the expiry of the Defects Liability Period.

schedules of defects to the


(3) The Contractor shail rectify the defects specified in the
of those schedules.
Architects satisfaction within a reasonable time after receipt
instruction to rectify the
(4) it the Contractor does not comply with the Architect's
time the provisions of clauses
defects listed in a schedute of defects within a reasonable
4.3(3) and 43(4) shail apply.

some or all of the defects


(5) The Architect may instruct the Contractor not to rectify
a reasonable reduction to the
specified in the schedules of defects, in which case
rectified.
Contract Sum shail be made for the defects not

Defects Rectification Certicate for the Works


Certificate for the Works when:
The Architect shail issue the Defects Rectification

(a) the Defects Liability Period for the Works has expired;
items of work on
(b) the Contractor has satisfactorily completed all the uncompleted
and
the list issued with the Substantial Completion Certificate;

have been satisfactorily rectified.


(c) all defects required to be rectified under clause 17.3
1-*<0'3L. t. r_Luw

Separate certificate for each Section or Relevant Part


for in the Contract or the
(1) Where sectionai compietion of the Works is provided
shall issue a separate
Employer takes possession of a Relevant Part, the Architect
clause 17.4 for each Section or
Defects Rectification Certificate in accordance with
Part.
Reievant Part except for the last Section or Relevant
Section or Relevant Part in
(2) Upon the completion of rectifying defects to the last
a Defects Rectification Certificate
at accordance with ciause 17.4 the Architect shall issue
the whole of the Works shall
al for the Works and the completion of rectifying defects for
the certificate.
at be deemed to have taken piace on the date stated in
me
Damage by a Specified Peri!
517.6 own cost any damage caused by a
The Contractor is not required to rectify at his
SE} Specified Perii occurring after Substantial Completion.

Other rights and remedies


whole of the Works shall discharge
*117.7 The issue of a Defects Rectification Certificate for the
the work of rectifying defects on
ed the Contractor from any further obligation to carry out
a warranty) but it shall not
the Site (except for the fuifilment of his obligations under
the Contract or at law regarding
rot prejudice the Employer's other rights and remedies under
aril defective work or other breaches of contract.

35
18 Partial possession by Employer IE

Partial possession
18.1 (1) The Empioyer may, with the Contractors consent, take possession of a part of the
Works or where sectional completion is provided for in the Contract a part of a Section
before Substantial Comptetioh, and that part of the Works or part of a Section shall be
referred to as a Relevant Part.

(2) if the Empioyer takes possession of a Relevant Part, the Architect shall issue a
certificate to that effect:
it
(a) identifying the Relevant Part being taken into possession;

(b) giving the Relevant Date when the Employer took possession of the Relevant Part; 1!
and

(c) stating his assessment of the estimated amount contained in the Contract Sum in 1!
respect of the Relevant Part.

Substantial Completion
18.2 Substantial Completion of the Relevant Part shall be deemed to have occurred on the
Relevant Date and the foiiowihg shall take effect:

(a) the commencement of the Defects Liability Period for that Relevant Part and the
rectification of defects under clause 17;

(lo) the exemption from iiability for damage by a Specified Peril under clause 17.6; and

(c) the reiease of onehalf of the Retention relating to that Relevant Part under clause
32.5.

Completion of rectifying defects


18.3 The Architect shail issue a Defects Rectification Certificate for the Relevant Part upon
the completion of rectifying defects to that part under clause 17.5.

Liquidated and ascertained damages


18.4 Where the Employer requires the Contractor to pay or allow Eiquidated and ascertained
damages under clause 24 for the Works or a Section and the Employer has taken
possession of a Relevant Part under clause 18.1 then:

(a) where sectional compietion is not contemplated under the Contract, the rate of
iiquidated and ascertained damages in respect of the Works shall be reduced,
during the period when the Works remains incomplete after the Relevant Date, by
the same proportion as the estimated amount contained in the Contract Sum for
the Relevant Part bears to the Contract Sum; or

36
13 Partial possession by Employer (contd)

(b) where sectionai compietion is contemplated under the Contract, the rate of
he liquidated and ascertained damages in respect of the relevant Section shalt be
on reduced, during the period when the Section remains incomplete after the Relevant
be Date by the same proportion as the estimated amount contained in the Contract
Sum for the Reievant Part bears to the estimated amount contained in the Contract
Sum for the Section.

Damage by a Specified Peri!


The Contractor is not required to rectify at his own cost any damage to the Relevant
Part caused by a Specified Peril occurring after the Relevant Date.

Assignment and sub-=letting

Assignment
(1) Except where provided otherwise in clause 19.1, neither party shall, without the
written consent of the other, assign or transfer any of his rights or obiigations under the
Contract.

the (2) The Contractor must tulfil his organization, management, planning, supervision
and co-ordination obligations through the site management and supervisory team
referred to in ciause 10 and he shall neither assign nor make arrangements for the
the vicarious performance of those functions.

(8) The Employer may assign or transfer the whole or any part of the benefit of the
and Contract after Substantiai Completion of the Works, a Section or a Relevant Part without
the Contractors consent. Any assignment shall be notified promptly to the Contractor.
J88
. (4) Subject to giving prior notice to the Employer, the Contractor may assign the whole
or any part of the benefit of the Contract for the purpose of obtaining financing for the
carrying out of the Works provided that the assignment does not adversely affect the
DOD Contractors fuifilment of his obligations under the Contract.

Sub-letting
The Contractor shall be permitted, unless prohibited by the Contract, to sublet parts of
ned the Works provided that:
ken
(a) he does not subiet the whole of the Works or incrementally sublet parts of the
Works to the same person to indirectly attain subletting of the whole, or substantially
e of the whole, of the Works and retains his management role as described in clause
zed, 191(2) at alt times;
2, by
1 for (b) the terms of the agreement to sublet are, so far as is reasonable, consistent with
the terms of the Contract;

(c) he submits a plan of his subcontracting arrangement giving the names of his key
subcontractors with their scope of works and such other particulars as may be
required by the Architect;

3?
19 Assignment and sub-letting (contd)

(d) he does not sub-iet any part of the Works to a subcontractor against whom the
Architect has made an objection giving his reasons;

(e) be removes from the Works any sub-contractor he is instructed by the Architect to
remove; and

(f) the subletting of a part of the Works to a Domestic SubContractor does not
relieve the Contractor from any liability or obligation under the Contract and he
remains responsibie for carrying out and completing the Works in all respects in
accordance withthe Contract and for the acts, defaults, omissions and neglect of
a Domestic SubContractor as fully as if they were his own acts, defaults, omissions
or neglect.

20 Injury to persons and property and indemnity to Employer

Contractor to indemnify Employer A


The Contractor shaii be liabie for and shail indemnify the Employer against any damage,
expense, liability or loss in respect of any ciaim or proceedings for:

(a) bodily injury to, disease contracted by or the death of any person arising out of, or
in the course of, or by reason of the carrying out of the Works and whether arising
on or off the Site, except to the extent that the injury, disease or death of that
person is due to any act or neglect of the Employer or any person for whom the
Employer is responsibie; and

(b) injury or damage to real or personal property arising out of, or in the course of, or
by reason of the carrying out of the Works and whether arising on or off the Site, to
the extent that the injury or damage is due to a breach of contract or other default
of the Contractor or any person for whom the Contractor is responsible.

21 Insurance against injury to persons or property

Employees Compensation Insurance


21.! (1) The Contractor shalt effect and maintain employees compensation insurance in
compiiance with the provisions of the Empioyees Compensation Ordinance in the joint
names of the Contractor, his sub-contractors and their respective sub-contractors of
all tiers against aii liabilities arising in respect of bodily injury to, disease contracted by
or death of the employees of Contractor or of sub-contractors of aii tiers arising out of
and in the course of their ernpioyment on the Works or in connection with the Contract.

(2) The insurance cover shalt be against the liabilities referred to in clause 21 .i(f)
sustained during the period from the Commencement Date until the Defects Rectification
Certificate for the whole of the Works has been issued and the Contractor has finally
ieft the Site.

(3) As soon as the Contractor becomes aware of any workman or other person
employed on the Works or in connection with the Contract suffering any bodily injury,
contracting a disease or dying, he shall notify the Commissioner for Labour, with a
copy of the notice to the Architect and the insurers.

38
Insurance against injury to persons or property (contd)

the Third party iiability insurance


(1) The party responsible for effecting Contractors Ali Risks insurance of the Works
under either clause 22A, 22B or 22C shall, uniess otherwise stated in the Contract,
:t to effect insurances in the joint names of the Empioyer, the Contractor, his subcontractors
and their respective sub~contractors of all tiers against all liabilities of the insured under
the Contract or otherwise in respect of:
not
i he (a) bodily injury to, disease contracted by or the death of any person arising out of or
ts in in the course of or by reason of the carrying out of the Works and whether arising
st of on or off the Site; and
ions
(b) injury or damage to reai or personal property other than the Works insofar as the
injury or damage arises out of, or in the course of, or by reason of the carrying out
of the Works and whether arising on or off the Site, including injury or damage
caused by any act or neglect of the Employer or any person for whom the Employer
is responsible or by collapse, subsidence, heave, vibration, weakening or removal
age, of support or lowering of ground water due to any cause other than:

(i) ionizing radiation or contamination by radioactivity from any nuclear fuel or


)f, or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic
ising explosive or other hazardous properties of any expiosive nuclear assembly or
that nuciear component thereof;
1 the
(ii) pressure waves caused by aircraft or other aerial devices traveling at sonic or
supersonic speeds; and
3f, or
ie, to (iii) nonnegotiabie exclusions imposed by the insurance market.
afault
(2) The insurance cover shall be against the liabilities referred to in clause 212(1)
sustained during the period from the Commencement Date until the Defects Rectification
Certificate for the whcie of the Works has been issued and the Contractor has finally
left the Site.

ice in (3) The insurances shall include:


9 joint
>rs of (a) a cross iiabifity ciause to the effect that the insurances shall cover the Employer,
ad by the Contractor, his subcontractors and their subcontractors of all tiers as separate
wt of insured;
tract.
(b) a waiver of any right of subrogation which the insurers may have against any of the
l.1(1) insured; and
:ation
finally (c) the third party Eiability insurances against injury or death to any person and injury
or damage to reai or personal property under clause 212(1) shall each be effected
with the limit of indemnity stated in the Appendix for any one occurrence or series
erson of occurrences arising out of one event but unlimited in the aggregate amount for
iniury, the period of the insurance.
ivith a

39
21 lnsurance against injury to persons or property (contd) 22

insurers and terms to be approved


21.3 (1) The insurances under ciause 21 shali be placed with insurers acceptable to both
parties and approved in writing by the party not responsible for effecting the insurances.

(2) The cover shail be in terms approved by the Architect but in any case cannot be
beyond the best terms currentiy available.

Policies to be produced
21.4 The party responsible for effecting the insurances under clause 21.2 shall provide
evidence of cover to the other party prior to the Commencement Date and shaii produce
the policies of insurance and the premium receipts for inspection and approval by the
other party as soon as practicable afterwards.

Event of failure to insure


21.5 if either party defaults in effecting or in maintaining the insurance cover required by
clause 21, the other party may effect and maintain this insurance and the premium shall
be recoverabie from the defaulting party as a debt.

No prejudice to Contractors indemnity


21.6 The effecting and maintaining of insurances by either the Employer or the Contractor
under clause 21 is without prejudice to the Contractors obligation to indemnify the
Employer under clause 20.

22 Insurance of the Works

Aiternative clauses for Contractors Ail Risks insurance of the Works


22.1 Either ciause 22A, 22B or 22C shall apply according to which of those clauses is specified
in the Appendix and both parties shall comply with all the conditions in the insurance
policy effected by either party.

Basic requirements for Contractors All Risks insurance of the Works


22.2 The basic requirements for Contractors Ali Risks insurance of the Works are, unless
otherwise set out in the Contract or as agreed between the parties, to provide insurance
cover against any physicai loss of or damage to the Works, existing constructions on
the Site, temporary works or materials or goods that are the property of the insured or
for which the insured is responsibie while on the Site, being fabricated or stored offSite
or in transit by road, raii, air or marine craft within Hong Kong or its territorial waters
including:

(a) costs and expenses in respect of shoring and propping up, testing, dismantling or
demolishing part of the Works, existing constructions on the Site or temporary
works, removing and disposing of debris and damaged materials or goods and
protecting the Works, existing constructions on the Site, temporary works and
materials or goods;

(b) professional fees at the percentage stated in the Appendix;

(c) at! necessary extra costs of express freight or airfreight; and

40
Insurance of the Works (contd)

(d) all necessary extra overtime labour costs,


both
1CeS. incurred in the repair, reinstatement, redesign and supervision following damage to the
Works, existing constructions on the Site, temporary works or materials or goods from
ot be any cause excluding:

(e) the cost of repairing or replacing property which is defective solely due to natural
wear and tear resulting from ordinary use or deterioration, rusting or corrosion;
avide
Jduce ll) loss or destruction of or damage to cash, banknotes, treasury notes, cheques,
iy the stamps, deeds, bonds, bills of exchange, promissory notes or securities;

(g) toss or damage solely due to the total suspension of carrying out the Works where
the insured failed to take reasonable precautions to protect the property insured
ed by and to avoid or reduce the amount of loss or damage;
3 shall
(h) loss of any property by disappearance or by shortage where the loss is revealed
only by the making of an inventory or periodic stocktaking and is not traceable to
an identifiable event;
ractor
ify the (i) loss or damage to materials, goods or work directiy resulting from its own defect in
materials, goods or workmanship or fault, defect, error or omission in design, plan
or specification but not excluding resultant damage to any other materials, goods
or work which are lost or damaged as a consequence of those defective materials,
goods or work;

ecified (i) Eoss or damage to property during the period between 14 days after Substantial
trance Completion and the date of issue of the Defects Rectification Certificate other than
loss or damage arising from a cause occurring prior to the commencement of that
period, or caused in the course of remedying defects or the testing and
commissioning of building services or other installations;
unless
urance loss or damage to plant, equipment and temporary buildings and their contents
ons on owned or hired by the Contractor or any person for whom the Contractor is
Jred or responsible;
aff-Site
waters ionizing radiation or contamination by radioactivity from any nuclear fuel or from
any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive
or other hazardous properties of any explosive nuclear assembly or nuclear
itling or component thereof;
iporary
-ds and (m)pressure waves caused by aircraft or other aerial devices traveling at sonic or
ks and supersonic speeds; and

(9) nonnegotiable exclusions imposed by the insurance market.

41
22 Insurance of the Works (contd)

Specific requirements for Contractors All Risks insurance of the Works


22.3 The specific terms and conditions required for the Contractors All Risks Insurance of
the Works if required to be different from the basic terms shall be as set out in the
Contract or shail be as agreed between the parties but in any case the terms cannot be
beyond the best terms currently availabie.

insurance of the Works to be in joint names and period of insurances


22.4 (1) The Contractors Aii Risks insurance of the Works shall be effected and maintained
in the joint names of the Empioyer, the Contractor, his subcontractors and their
respective subcontractors of ail tiers and suppliers. The insurance cover shall run 22
from the Commencement Date until 14 days after the issue of the Substantial Completion
Certificate for the Works or 14 days after the determination of the employment of the
Contractor, whether valid or not, whichever is earlier.

(2) if the Contract provides for sectional completion of the Works or the Employer has
taken possession of a Relevant Part, the obiigation of the party responsible for effecting
the Contractors Ail Risks insurance of the Works shall terminate in relation to any Section
or Relevant Part 14 days after Substantial Completion of that Section or Relevant Part.

(3) The insurances shall include:

(a) a cross iiabiiity ciause to the effect that the insurances shall cover the Employer,
the Contractor, his subcontractors and their subcontractors of all tiers and
suppiiers as separate insured, and

(is) a waiver of any right of subrogation which the insurers may have against any of the
insured.

Parties obiigations if loss or damage occurs


22.5 In the event of Foss or damage to work, materials or goods caused by a peril covered by
the Contractors Ali Risks Insurance of the Works the Contractor shall:

(a) notify the Architect of the extent, nature and location of the loss or damage
irnrneciiateiy upon discovering it;

(b) follow all of the requirements in the insurance policy, prepare and submit the
insurance claim and negotiate with the insurers to achieve a fair settlement; and

(c) restore iost or damaged work, remove and dispose of any debris, repair or replace
materials or goods which have been stolen, lost, destroyed or damaged, and
proceed with carrying out the Works with due diligence and in accordance with the
Contract immediately after any inspection required by the insurers has been carried
out.
K5

Pu!

42
Insurance of the Works (contd)

Contractors payment not more than insurance proceeds


of The Contractor shall not be entitled to any payment in respect of the replacement,
1e repair or restoration of the loss or damage and the removal and disposal of debris other
3e than the amount received under the Contractors Ail Risks insurance of the Works unless
and to the extent that the loss or damage was caused or contributed to by a breach of
contract or other default by the Employer or any person for whom the Employer is
responsible.

insurance without prejudice to Contractors obligations


22.7 The effecting and maintaining of Contractors Ali Risks Insurance of the Works by either
party is without preiudlce to the Contractors obligation for the care of the Works under
clause 2.t.

122A Insurance of the Works by the Contractor


33
19 Contractor to effect Contractors All Risks insurance of the Works
)|'1 722A.1 The Contractor shail effect and maintain Contractors All Risks Insurance of the Works
for the full reinstatement value of the Works and all other costs set out in clauses 22.2
and 22.3.

Insurer to be approved and remedy if Contractor fails to insure


-22A.2 (1) The Contractors Ail Risks Insurance of the Works shall be effected with insurers
approved by the Architect. The Contractor shail deposit with the Architect evidence of
cover prior to the commencement of the Works and produce the premium receipt and
any retevant endorsements as soon as practicable afterwards, followed by a copy of
16 the insurance poilcy as soon as it becomes available.

(2) it the Contractor defaults in effecting or in maintaining the Contractors Ail Risks
insurance of the Works, the Employer may effect and maintain it himself and recover
3y the cost of the insurance premium from the Contractor in accordance with clause 40 or
as a debt.

)9 Use of annual policy maintained by Contractor


22A.3 (1) if the Contractor maintains an annual policy of insurance which provides cover no
less than that required under ciause 22A.1, an endorsement attached to the annuai
policy naming the Works, the Employer, the Contractor, his subcontractors and their
respective subcontractors of ail tiers and suppliers shall be a discharge of the
Contractors obligations under clause 22A.1.

(2) The Contractor shall produce the annual policy of insurance, premium receipt and
the endorsement for inspection by the Architect prior to the commencement of the
Works and the annual premium receipt within 14 days after each renewal date.

Insurance of the Works by the Employer

Employer to effect Contractors All Risks insurance of the Works


The Emptoyer shall effect and maintain Contractors All Risks Insurance of the Works
for the tuli reinstatement vaiue of the Works and all other costs set out in clauses 22.2
and 22.3.

43
22B Insurance of the Works by the Employer (contd)

Remedy if Employer fails to insure


223.2 (1) The Employer shall provide evidence to the Contractor that the Contractors All
Risks insurance of the Works under clause 2213.1 has been effected and is being
maintained prior to the commencement of the Works and produce the premium receipt
and any reievant endorsements as soon as practicable afterwards, followed by a copy
of the insurance policy as soon as it becomes available.

(2) If the Employer defaults in effecting or in maintaining the Contractors All Risks
Insurance of the Works, the Contractor may effect and maintain it himself and the cost
of the insurance premium shall be added to the Contract Sum.

22C Insurance of existing building and insurance of the Works by the Employer

Employer to effect i'nsurance against Specified Perils to the existing building


22C.1 Where the Works are to be carried out to and/or within an existing building, the Employer
shall effect and maintain a policy of insurance against the Specified Perils for the full
cost of reinstatement, repair or replacement of loss or damage to that existing building
which is to be extended or within which the Works are to be carried out together with its
contents and all other costs set out in clauses 22.2 and 22.3. The insurance cover shall
run from the Date for Possession of the Site stated in the Appendix until 14 days after
the issue of the Substantial Completion Certificate for the Works or 14 days after the
determination of the employment of the Contractor, whether valid or not, whichever is
earlier.

Employer to effect Contractors All Flisks insurance of the Works


22C.2 The Employer shall effect and maintain Contractors All Risks insurance of the Works
for the foil reinstatement value of the Works in and/or to the existing building and all
other costs set out in clauses 22.2 and 22.3.

Remedy if Employer fails to insure


220.3 (1) The Employer shall provide evidence to the Contractor that the insurances under
clauses 22C.l and 22C.2 have been effected and are being maintained prior to the
commencement of the Works and produce the premium receipts and any relevant
endorsements as soon as practicable afterwards, followed by a copy of each of the
insurance policies as soon as they become available.

(2) if the Employer defaults in effecting or in maintaining the insurances under clauses
2201 and/or 220.2, the Contractor may effect and maintain them himself and the cost

of the insurance premiums shall be added to the Contract Sum.

(3) The Contractor shalt be given the right of entry and inspection to carry out a survey
and make an inventory of the existing building and its contents if the clause 22C.1
insurance is to be effected and maintained by the Contractor under clause 220.3(2).

23 Possession, commencement and completion

Possession of Site
23.1 (1) The Empioyer shall give possession of the Site to the Contractor on or before the
Date for Possession of the Site stated in the Appendix.

44
Possession, commencement and compietion (contd)

(2) Where the Contract provides for the Empioyer to give possession of the Site to the
Contractor in two or more parts on the dates stated in the Appendix, the Employer shalt
give possession of the Site to the Contractor in parts on or before those dates.

Commencement and completion


The Contractor shail commence the Works on the Commencement Date stated in the
Appendix or when instructed to do so by the Architect, proceed regularly and diligently
with the Works and complete the Works, and, where sectional completion is provided
for in the Contract, any Section on or before the Completion Date of the Works or that
Section stated in the Appendix.

Postponement or suspension
The Architect may issue instructions regarding:

(a) the postponement of the Date for Possession of the Site or a part of the Site;
2-:

(b) the postponement of the Commencement Date of the whole or a part of the Works;
or

(c) the postponement or suspension of the whole or a part of the Works.


L|JV:UIL J

U; Damages for non-completion

Architect to certify Contractors failure to complete on time


(1) If the Contractor fails to complete the Works or a Section by the Compietion Date,
U! the Architect shall issue a certificate to that effect confirming that all claims for extensions
of time have been addressed in accordance with clause 25 and stating the date by
which the Works or Section ought to have been completed.

(2) it a new Completion Date is fixed after the issue of the certificate referred to in
clause 24.1 (1), the fixing of the new Completion Date shall cancel that certificate and
the Architect shall, if appropriate, issue another certificate to correspond to the new
Compietion Date.
. , <- /-q

Liquidated and ascertained damages


(1) if the Architect issues a certificate under clause 24.1 (1), the Contractor shall, if
required to do so by a notice from the Empioyer, pay or allow to the Empioyer iiquidated
and ascertained damages at the rate per day referred to in clause 242(3) for the period
between the Completion Date and the Date of Substantial Completion.

(2) The Employer's notice under ciause 24.2(i) shall not be given either before the
certificate under clause 241.1(1) is issued or after the Final Certificate is issued.

(3) The rate per day of iiquidated and ascertained damages for the Works or a Section
shali be as stated in the Appendix and adjusted in accordance with clause 18.4 in
regard to the completion of any Reievant Part.

(4) The Employer may recover the liquidated and ascertained damages from the
Contractor under oiause 40 or as a debt.

45
24 Damages for non-completion (contd) 25

Refund if Completion Date revised


24.3 If the Architect fixes a later Completion Date under clause 25.3, the Employer shall
refund to the Contractor the amount of iiquidated and ascertained damages paid or
ailowed to the Employer under clause 24.2 for the period from the original Compietion
Date up to the later Completion Date plus interest at 1% below the judgment debt rate
prescribed from time to time by the Rules of the High Court (Chapter 4A, Laws of Hong
Kong) within 28 days of the Architect fixing the later Completion Date.

25 Extension of time

Contractors first notice of delay


25.1 (1) As soon as practicable but in any case within 28 days of the commencement of an
event likely to cause delay to the compietion of the Works or a Section beyond the
Completion Date becoming apparent, the Contractor shall give notice (referred to in
Clause 25 as the first notice) to the Architect.

(2) The first notice shall:

(a) state the likelihood and estimated length of the delay beyond the Completion Date;

(b) set out the material circumstances including the cause of the delay; and

(C) state if the Contractor considers that he is or may become entitled to an extension
of time due to the effects of an event listed in clause 25.1(3) (referred to in clause
25 as a listed event) and it so identify which of the listed events he believes to be
the cause of the deiay.

(3) The listed events are as follows:

(a) force maieure;

(b) inclement weather conditions, being rainfall in excess of twenty millimetres in a


twenty-four hour period (midnight to midnight) as recorded by the Hong Kong
Observatory station nearest to the Site, and/or its consequences adversely affecting
the progress of the Works;

(c) the hoisting of tropical cyclone warning signs! No. 8 or above or the announcement
of a Black I-rainstorm Warning;

(d) the Excepted Risks;

(e) loss or damage caused by a Specified Perii;

(f) an Architects instruction under clause 2.4 to resolve an ambiguity, discrepancy in


or divergence between the documents listed in that clause;

46
125 Extension of time (contd)

(9) an Architects instruction under clause 8.2 requiring the opening up for inspection
hall of work covered up or the testing of materials, goods or work and the consequentiai
:l or making good where the cost of that opening up, testing and making good is required
tion by that clause to be added to the Contract Sum;
rate
ong an Architect's instruction under clause 13.1 requiring a Variation;

an Architects instruction under clause 13.2 resulting in an increase in the work to


be carried out of sufficient magnitude to cause delay, provided that the variance
was not apparent from the Contract Drawings;

fan an Architect's instruction under clause 23.3 regarding:


the
0 in (i) the postponement of the Date for Possession of the Site or part of the Site;

(ii) the postponement of the Commencement Date of the whole or a part of the
Works; or

ate; (iii) the postponement or suspension of the whole or a part of the Works, unless:

9 notice of the postponement or suspension is given in the Contract; or

sion 0 the postponement or suspension was caused by a breach of contract or


use other default by the Contractor or any person for whom the Contractor is
) be responsibie;

(k) compiiance with clause 34.1 or with an Architects instruction under clause 34.2
requiring the Contractor to permit the examination, excavation or removal by a
third party of an obiect of antiquity found on the Site;

late instructions from the Architect, including those to expend a Prime Cost Sum
in a or a Provisionai Sum, or the late issue of the drawings, details, descriptive schedules
ong or other similar documents referred to in clause 5.6 except to the extent that the
ting Contractor faiied to comply with clause 5.7(2);

(m) delay caused by a delay on the part of a Nominated SuioContractor or Nominated


tent Supplier in respect of an event for which the Nominated SubContractor or
Nominated Supplier is entitled to an extension of time under the subcontract or
supply contract;

(H) delay caused by a subcontractor or supplier nominated by the Architect under


ciause 292(6) despite the Contractors valid objection, subject to clause 292(7);

:y in

47
25 Extension of time (contd)
Lb.

(0) delay caused by the nomination of a replacement Nominated SubContractor or


Nominated Supplier under clause 29.13 including any proiongation of the period
of the relevant sub-contract or the time for the supply and delivery of materials and
goods, provided that the determination of the employment of the original Nominated
SubContractor or the termination of the original Nominated Supply Contract was
not in the opinion of the Architect a consequence of a breach of contract or other
default by the Contractor or any person for whom the Contractor is responsible;

(p) delay caused by a Specialist Contractor;

(q) deiay caused by a statutory undertaker or utility company referred to in clause


6(4)(1) failing to commence or to carry out its work in due time provided that the
Contractor has taken alt practicabie measures to cause it to commence and to
carry out and complete its work on time;

(r) the failure of the Employer to supply or supply on time materials, goods, plant or
equipment that he agreed to provide for the Works;

(3) the failure of the Employer to give possession of the Site or, under ciause 23.1 (2),
a part of the Site on the Date for Possession of the Site or the part of the Site
stated in the Appendix, or the Employer subsequently depriving the Contractor of
the whoie or a part of the Site;

(t) delay to the Works due to time not reasonably foreseen by the Contractor in
obtaining approval or consent from a Government department;

(u) a speciai circumstance considered by the Architect as sufficient grounds to fairly


entitie the Contractor to an extension of time; and

(v) an act of prevention, a breach of contract or other default by the Employer or any
person for whom the Employer is responsible.

(4) The Contractor shaii:

(a) continuously use his best endeavours to prevent or mitigate delay to the progress
of the Works, however caused, and to prevent the completion of the Works being
delayed or further delayed beyond the Completion Date, provided that the words
"best endeavours" shail not be construed to mean that the Contractor is obliged to
spend additional money, without reimbursement under clause 26, to acceierate
the carrying out of the Works to recover delay that the Contractor did not cause;
and

(b) do all that may reasonably be required to the Architects satisfaction to proceed
with the Works.

Contractors second notice


25.2 (1) The Contractor shall, as soon as practicable but in any case within 28 days of giving
the first notice, submit a second notice (referred to in clause 25 as the second notice)
to the Architect giving:

48
Extension of time (contd)

3r or (a) substantiation that the iisted event is the cause of the delay; and
ariod
. and (b) particulars of the cause, effect and length of the delay to the completion of the
ated Works or a Section beyond the Completion Date in sufficient detail to enable the
was Architect to make a decision under clause 25.3(1).
>ther
ale; (2) Where the deiay envisaged by the Contractor's first notice of delay commences
later than 28 days after the Contractor has given the first notice to the Architect, the
Contractor shall give the Architect a statement to this effect and shall submit the second
notice within 28 days of the commencement of the delay.
iuse
l the (3) Where the listed event has a continuing effect the Contractor shall:
d to
(a) give the Architect a statement to that effect together with:

at or (i) substantiation that the listed event is the cause of the delay; and

(ii) interim particulars including details of the cause and effect and an estimate of
ii?) the iength of the delay to the completion of the Works or a Section beyond the
Site Compietion Date;
)r of
(b) make further submissions to the Architect at intervals not exceeding 28 days giving
further interim particuiars and estimates of the length of the delay until the delay
ceases;

(c) within 14 days after the delay ceasing, submit to the Architect final particulars of
airiy the cause, effect and length of the delay to the Works or a Section beyond the
Completion Date in sufficient detail to enable the Architect to make a decision
under clause 25.3(i).
any
Fixing new Completion Date
(1) After receipt of the Contractors second notice the Architect shail give an extension
ct time to the Contractor by tixing a later Completion Date if he is satisfied that the
completion of the Works or a Section is being or is likely to be delayed beyond the
'ess Completion Date by the listed event stated by the Contractor in his first and second
3-ing notices to be the cause of the delay.
)rds
d to (2) The Architect shalt give the extension of time, and the reasons for his decision as
rate soon as practicable but in any case within 60 days after the receipt of the particulars
Jse; submitted with the second notice under clause 25.2.

(3) if, after receiving the first and second notices, the Architect decides not to fix a
eed later date as a new Cornpietion Date:

(a) the Architect shall notify the Contractor of this, giving the reasons for his decision,
as soon as practicable but in any case within 60 days of receipt of the particulars
ling submitted with the second notice under clause 25.2; and
cs)

49
25 Extension of time (contd) 25

(b) the Architect may revise his decision and fix a later date as the new Completion
Date if the Contractor provides further and better particulars within 28 days of the 25.
Architects notification under ciause 25.3(3)(a .

(4) It the Contractor faiis to submit the notices within the time frame prescribed under
ciause 25.1 or clause 25.2 but a first notice is nevertheless submitted, the Architect
shail, if he is satisfied that the completion of the Works or a Section has been delayed
by the iisted event stated in the Contractors first notice, give an extension of time to
the Contractor under clause 25.3 to the extent that he is able to on the information 25
available.

(5) if after fixing a new Completion Date under clause 25.3, the Architect issues an
instruction under:

(a) clause 13.1 for the omission of work or the omission or diminution of an obligation;
or

(b) clause 13.2 resulting in a substantial reduction of the work to be carried out, provided
that the variance was not apparent from the Contract Drawings,

the Architect may fix an eariier Completion Date, though not earlier than the Completion
Date stated in the Appendix, it it is fair and reasonable to do so.

(6) If the Architect gives an extension of time to the Contractor under clause 25.3
because of a listed event that occurs in the period of delay after the Completion Date
but before the Date of Substantial Completion, he shall add this extension of time to the
total of any extensions of time previously granted when fixing a new Completion Date,
even though the iisted event may have occurred later than the date that the Architect 26
fixes as the new Completion Date.

(7) The Architect may fix a new Completion Date under clause 25 earlier or later than 26
that previously fixed, during the period of deiay between the Completion Date and the
Date of Substantial Completion (if Substantial Completion takes place later than the
Completion Date) if it is fair and reasonable to do so having regard to any of the listed
events, whether by reviewing a previous decision, taking into account any further and
better particulars that may be submitted by the Contractor, or by taking into account
any extension of time granted under clause 253(6).

(8) The Architect shall finaliy decide the overall extension of time, if any, that he
considers the Contractor is entitled to under clause 25, whether by reviewing any
extension of time previously granted or otherwise, and shali fix the Completion Date,
which may be the same as but not earlier than the Completion Date previously fixed,
within 90 days after Substantial Completion or such later date as may be agreed by the
parties.

50
25 Extension of time (contd)

Contractors default involved in the delay


of the
25.4 Where and to the extent that a listed event resulting in delay to the completion
opinion,
Works or a Section beyond the Completion Date was, in the Architects
the Contractor
contributed to, or aggravated by a breach of contract or other default by
the effects
or any person for whom the Contractor is responsible, the Architect shall take
Date.
of that contribution or aggravation into account in fixing the new Completion

Rate of progress
time, too
25.5 (1) if, in the Architect's opinion, the rate of progress of the Works is, at any
reason
slow to ensure that the Works will be completed by the Completion Date for any
clause 25.3, the
which does not entitle the Contractor to an extension of time under
Architect may notify the Contractor accordingly.

(2) After receiving the Architect's notification the Contractor may, at his own discretion
that he
and with no entitlement to receive additional payment, take the measures
by the Completion
considers necessary to expedite the progress to complete the Works
Date.

Nominated Sub-Contractors and Suppliers to be kept informed


25.6 (1) Where the first notice includes a reference to work carried out by a Nominated
the Contractor
Sub-Contractor or materiais or goods supplied by a Nominated Supplier,
or
shall give a copy of the first and second notices to the Nominated SubContractor
Nominated Supplier.

Supplier
(2) The Architect shall notify each Nominated SubContractor and Nominated
of any new Completion Date fixed under clause 25.3.

26 Delay recovery measures

Delay recovery measures ,


out delay recovery
26.1 Where the Architect considers that the Contractor would, by carrying
measures (referred to in clause 26 as the measures), be able to extinguish, or
otherwise be
significantiy reduce, any extension of time which the Contractor would
written directions from
entitled to under ciause 25, the Architect shall, after receiving
to achieve and
the Employer, state the saving in time that he wants the Contractor
instruct the Contractor to submit within 14 days:

saving required
(a) a description of the proposed measures necessary to achieve the
with full
by the Architect and a detaiied quotation for carrying out those measures
supporting particuiars;

be achieved by
(b) the Contractor's own estimate of the saving in time that could
the
carrying out the measures it the Contractor has reservations about achieving
saving in time requested by the Architect; and

in consideration
(c) details of any other terms and conditions required by the Contractor
for agreeing to carry out the measures.

51
26 Delay recovery measures (contd)

Delay recovery proposals


26.2 (1) The description of the proposed measures, the quotation, the Contractors own
estimate of the saving in time that could be achieved, if appropriate, and the details of
the other terms and conditions referred to in clause 26.1 shall be referred to in clause
26 as the delay recovery proposals.

(2) Within 14 days oi receiving the delay recovery proposals, the Architect shall notify
the Contractor in writing that either the delay recovery proposals are agreed, or disagreed,
or that he wishes to discuss and agree revised proposals with the Contractor.

Contractor to carry out delay recovery measures


26.3 (1) If the Architect agrees with the Contractors delay recovery proposals, or the revised
deiay recovery proposals resulting from the discussions under clause 26.2(2), and, after
receiving written directions from the Employer, instructs the Contractor to carry out the
measures in accordance with the agreement, the Contractor shall carry out the measures
in accordance with the Architects instructions and shalt be paid for carrying them out
in accordance with the terms of the agreement.

(2) if the Architect and the Contractor cannot reach agreement on the Contractor's
delay recovery proposals within E4 days of the Architects notice to discuss them under
clause 262(2), the Architect may, after receiving written directions from the Employer,
instruct the Contractor to carry out the measures in the absence of an agreement and
the Contractor shalt do so in accordance with the Architects instruction and:

(a) the Contractor shall prepare and submit to the Quantity Surveyor all the information
and documents relating to the cost of carrying out the measures that the Quantity
A
Surveyor may reasonably require; and

(b) the Quantity Surveyor shall ascertain the amount of additional payment to be made
to the Contractor for carrying out the measures, based on the extra cost incurred
by the Contractor with the addition of 15 percent for overheads and profit, within
a reasonable time after receiving the information and documents under clause
26.3(2)(a).

Extension of time to cover shortfall in recovering delay


26.4 if by carrying out the measures the Contractor reduces, but does not completely
extinguish the delay to the completion of the Works or any Section for which the
Contractor would have been entitled to an extension of time under clause 25 in the
absence of the delay recovery proposals, then, subject to the terms of the agreement
between the Architect and the Contractor under clause 26, the Contractor shali,
nevertheless, be granted an extension of time for the duration of the unextinguished
deiay.

Contractor to be reimbursed for the cost of preparing the proposal if delay recovery not
instructed
26.5 (1) If the Architect and the Contractor do not reach an agreement about the terms of
the Contractors delay recovery proposals and the Architect does not instruct the
Contractor to carry out these proposals, then the Contractor shall be reimbursed for
the cost of preparing the proposais.

52
26 Delay recovery measures (contd)

(2) The Contractor shall submit to the Quantity Surveyor a statement of his costs with
full supporting details and the Quantity Surveyor shall ascertain the amount of additional
payment to be made as reimbursement to the Contractor.

27 Direct loss and/or expense

Contractor's notice of claim for additional payment


27.1 (1) if, in the Contractors opinion, he has incurred or is likely to incur direct loss and/or
expense because the progress of the Works has been or is likely to be delayed or
disrupted by an event set out in clause 27.1 (referred to in clause 27 as a qualifying
event") and the Contractor intends to claim additional payment for this, he shall follow
the procedures set out in clause 28 and shall also identify in his notice of claim which of
the qualifying events he believes to be the cause of the direct loss and/or expense:

(2) The qualifying events are as foilows:

(a) an Architect's instruction under clause 2.4 to resolve an ambiguity, discrepancy in


or divergence between the documents listed in that clause;

(b) an Architects instruction under clause 8.2 requiring the opening up for inspection
of work covered up or the testing of materials, goods or work and the consequential
making good where the cost of such opening up, testing and making good is
required by that clause to be added to the Contract Sum;

(c) an Architects instruction under clause 13.1 requiring a Variation;

(d) an Architects instruction under clause 13.2 resuiting in an increase in the work to
be carried out of sufficient magnitude to cause delay or disruption, provided that
the variance was not apparent from the Contract Drawings;

(e) an Architects instruction under clause 23.3 regarding:

(i) the postponement of the Date for Possession of the Site or a part of the Site;

(ti) the postponement of the Commencement Date of the whole or a part of the
Works; or

(iii) the postponement or suspension of the whole or a part of the Works, unless:

6 notice of the postponement or suspension is given in the Contract; or

6 the postponement or suspension was caused by a breach of contract or


other default by the Contractor or any person for whom the Contractor is
responsible;

(f) compliance with clause 34.1 or with an Architect's instruction under clause 34.2
requiring the Contractor to permit the examination, excavation or removal by a
third party of an object of antiquity found on the Site;

53
27 Direct loss and/or expense (contd)

(g) late instructions from the Architect, including those to expend a Prime Cost Sum
or a Provisional Sum, or the late issue of the drawings, details, descriptive schedules
or other similar documents referred to in clause 5.6, except to the extent that the
Contractor failed to cornpiy with clause 5."/(2);

(h) delay or disruption caused by a subcontractor or supplier nominated by the


Architect under ciause 293.2(6) despite the Contractors valid objection, subject to
ciause 292(7);

(1) delay or disruption caused by a Specialist Contractor;

(i) the failure of the Employer to supply or supply on time materials, goods, plant or
equipment that he agreed to provide for the Works;

(k) the failure of the Employer to give possession of the Site or, under clause 23.1 (2),
a part of the Site on the Date for Possession of the Site or the part of the Site
stated in the Appendix, or subsequently the Employer depriving the Contractor of
the whoie or a part of the Site; and

(I) any other delay or disruption for which the Employer is responsible including an
act of prevention or a breach of contract.

Quantity Surveyors ascertainment of Contractors ciaim


27.2 (1) Upon receipt of the Contractors claim under clause 27, the Architect shall instruct
the Quantity Surveyor to ascertain the amount of any additional payment for direct loss
and/or expense incurred by the Contractor if the Architect is satisfied that:

(a) the direct toss and/or expense was incurred because the progress of the Works
was delayed or disrupted by the qualifying event set out in the Contractors claim;

(b) the Contractor has not been and will not be reimbursed by a payment under any
other provisions of the Contract; and

(c) the Contractor has complied with ciause 28.

(2) The ascertainment of the Contractor's claim shall be made as soon as practicable
but in any case within 60 days of receipt of the buildup of the claim and the particulars
submitted under clause 28.2(2)(a) to (d) or clause 28.2(4)(c), as the case may be.

Contractors default involved in the delay or disruption


27.3 Where and to the extent that a qualifying event resulting in delay to the progress of the
Works or disruption was, in the Architect's opinion, contributed to or aggravated by a
breach of contract or other default by the Contractor or any person for whom the
Contractor is responsible, the Architect shall instruct the Quantity Surveyor to take
such contribution or aggravation into account in ascertaining the amount of direct loss
and/or expense due to the Contractor.

54
27 Direct loss and/or expense (contd)

Nominated Sub-Contractors claim for additional payment


27.4 (1) The Contractor shalt give the Architect a copy of a claim from a Nominated Sub
Contractor for additional payment for direct loss and/or expense under the Nominated
SubContract.

(2) The Architect shail instruct the Quantity Surveyor to ascertain, in accordance with
the Nominated SubContract, the amount of any additional payment for direct loss
and/or expense incurred by the Nominated SubContractor if the Architect is satisfied
that:

(a) the direct loss and/or expense was incurred because the progress of the Nominated
Sub-Contract works was oieiayed or disrupted by the event, being an event that
quaiitied the Nominated SubContractor for direct loss and/or expense under the
sub-contract, set out in the Nominated SubContractors claim; and

(b) the Nominated SubContractor has complied with all of the requirements of the
Nominated SubContract in respect of his claim.

(3) The ascertainment of the Nominated SubContractors claim shall be made as


soon as practicable but in any case within 60 days of the Nominated Sub-Contractor
providing, through the Contractor, the submissions required by the Nominated Sub-
Contract reiating to the ciaim for additional payment for direct loss and/or expense.
The amount ascertained shall be added to the sub-contract sum.

(4) An amount of additional payment for direct loss and/or expense incurred by the
Nominated SubC0ntractor due to an act, omission or default of the Contractor shall be
dealt with between the Contractor and the Nominated SubContractor and shall not be
added to the sub-contract sum.

28 Notice of claims for additional payment

Contractor to give notice of claim


28.1 (1) It the Contractor intends to claim any additional payment under the Contract, the
Contractor shall give notice to the Architect of his intention to do so:

(a) within 28 clays of it becoming apparent to the Contractor that an event has occurred
which gives rise to a claim and he shall include in the_notice the contractual
provisions upon which the claim is based; or whether earlier or later

(b) within 7 days after receipt of a claim for additional payment from a Nominated
SubContractor under clause 27.4.

(2) The Contractor need not give the notice required under clause 28.1 (1) in the case
of an Architects instruction under clauses 13.1 or 13.2 insofar as that instruction is
subject to a Valuation under ciause 13.

Contractor to submit particulars


28.2 (1) The Contractor shalt keep such records as may reasonabiy be necessary to support
the ciaim. -

55
28 Notice of claims for additional payment (contd)

(2) The Contractor shatl as soon as practicable but in any case within 60 days of
giving notice under clause 28.1, submit to the Architect:

(a) particuiars oi the circumstances giving rise to the claim;

(b) the amount of the claim;

(C) a detailed buildup of that amount; and

(d) a copy of the records kept in accordance with clause 282(1).

(3) Where the effect of the event giving rise to the claim set out in the Contractors
notice of ciaim commences later than 60 days after the Contractor has given notice of
his intention to claim, the Contractor shall give the Architect a statement to that effect
and submit the information under clause 282(2) within 60 days of the commencement
of the effect of the event giving rise to the claim.

(4) Where the event giving rise to the claim has a continuing effect the Contractor shall:

(a) give the Architect a statement to that effect together with:

(i) interim particulars of the circumstances giving rise to the ciaim;

(ii) an estimate of and buildup of the amount of the ciaim which shall be
considered to be an interim amount; and

(iii) a copy of the records kept in accordance with clause 282(1);

(b) make further submissions to the Architect at intervais not exceeding 28 days giving:

(i) further interim particulars;

(ii) up to date estimates of the amounts of the claim with further buiidups of
these amounts; and

(iii) further records to support the claim,

until it becomes possible to ascertain the total claim; and

(c) within 14 days after it becomes possible to ascertain the total claim, make the final
submission to the Architect as required under ciause 28.2(2) paragraphs (a) to (d).

Condition precedent to Contractors entitlement to additional payment


28.3 It shaii be a condition precedent to the Contractors entitlement to additional payment
that the Contractor shall compiy with the provisions of clauses 28.1 and 28.2 and if he
fails to cornpiy with these provisions in respect of any claim, that claim will be deemed
to have been waived by the Contractor.

56
29 Nominated Sub-Contractors and Nominated Suppliers

Nomination of a sub-contractor or a supplier


29.1 (1) Where a Prime Cost Sum for work to be carried out by a Nominated SubContractor
or for materials and goods to be supplied by a Nominated Supplier is included in the
Contract or arises as a resuit of:

(a) an Architects instruction under clause 13.1 requiring a Variation for additional or
substituted work;

(to) an Architects instruction under clause 13.2 to expend a Provisional Sum; or

(c) an agreement between the Contractor and the Architect on behalf of the Employer,

the Architect shall issue an instruction to nominate:

(oi) a subcontractor to carry out the work provided for by the Prime Cost Sum and the
Contractor shall enter into a sub-contract with that subcontractor, who shall then
become a Nominated Sub-Contractor, in accordance with the terms stipulated in
the instruction; or

(e) a supplier to supply the materials or goods provided for by the Prime Cost Sum
and the Contractor shall enter into a supply contract with that supplier, who shall
then become a Nominated Supplier, in accordance with the terms stipulated in the
instruction.

(2) The term Nominated Supplier shall not apply to a supplier of materials or goods
which are specified in the Contract to be incorporated into the Works unless the materials
or goods are the subject of a Prime Cost Sum even it that supplier is the sole supplier of
those materials or goods.

Contractors right of reasonable objection


29.2. (1) The Contractor shall not be required to enter into a sub-contract with a sub-
contractor or supply contract with a supplier against whom the Contractor has made a
reasonabie objection because:

(a) the subcontractor or supplier has a poor safety record;

(b) there are reasonable grounds for believing that the financial standing, solvency,
technical competence or reliability of that subcoritractor or supplier is not such
that a prudent contractor, having regard to the size and nature of the sub-contract
works or supply contract, would be willing to employ as a Nominated Sub-
Contractor or Nominated Supplier;

(C) there are reasonabie grounds for believing that the tender sum is not financially
viable; or

(Ci) the programme for carrying out the sub-contract works or for the delivery of the
materials and goods is unreasonable.

57
29 Nominated Sub-Contractors and Nominated Suppliers (contd)

(2) Where the Contractor is notified of the tender list of sub-contractors and suppliers
during the tender period, the Contractor shall, if he has an objection to a subcontractor
or supplier on the list, register his objection giving his reasons with his tender submission.

(3) Where the Contractor is notified of the tender list of sub-contractors and suppliers
after the award of the Contract, the Contractor shall, if he has an objection to a sub-
contractor or supplier on the iist, register his objection giving his reasons within 14 days
of being notified of the list of tenderers or, if a subcontractor or supplier who is not on
this list is nominated, within 14 days of receipt of the nomination instruction.

(4) If the Contractor made his objection to the inclusion of a sub-contractor or supplier
on the tender list in his tender submission or within the time required under clause
292(3) and the Architect considers the objection to be valid, the Architect shall either:

(a) withdraw the subcontractors or suppliers name from the tender list; or

(b) refuse to withdraw the subcontractors or suppliers name from the tender list and
notify the Contractor accordingly.

(5) It the Contractor made his objection to the nomination of the subcontractor or
supplier within the time required under clause 291.2(3), and the Architect considers the
objection to be valid, the Architect shall either:

(a) withdraw the nomination instruction and:

(i) issue a further instruction nominating another sub-contractor or supplier; or

(ii) instruct the Contractor to carry out the work himself or suppiy the materials or
goods himseif through a supplier approved by the Architect in which case the
instruction shail have the same effect as an instruction to expend a Provisional
Sum under clause 13.2; or

(b) refuse to withdraw the nomination instruction and notify the Contractor accordingly.

(6) Where the Architect, notwithstanding his acceptance of the validity of the
Contractors objection, either refuses to withdraw the subcontractors or suppliers
name from the tender list and subsequently nominates that subcontractor or supplier,
or refuses to withdraw the nomination instruction, the Contractor shall enter into a sub-
contract with that subcontractor or a supply contract with that supplier.

(7) If during the carrying out of the subcontract or the supply contract, the Contractor
believes that the subcontractor or supplier nominated under clause 292(6) has caused
deiay or disruption to the carrying out of the Works, he may apply for an extension of
time under clause 25.1 (3)(n) and/or additional payment for direct loss and/or expense
under clause 27.1(2)(h) but oniy to the extent that the delay or disruption was attributable
to the grounds for objection raised by the Contractor to the nomination of the sub-
contractor or supplier.

58
29 Nominated Sub-Contractors and Nominated Suppliers (contd)

Subcontractor and supplier warranty to Employer


29.3 If it is stated in the Contract that the Employer will require a Nominated SubContractor
or Nominated Supplier to enter into a subcontractor or supplier warranty agreement
with the Empioyer, the Contractor shall, before entering into a subcontract or supply
contract with that Nominated SubContractor or Nominated Supplier, ensure that the
Nominated Sub-Contractor or Nominated Supplier has given the sub-contractor or supplier
warranty agreement to the Employer in the form set out in the Contract or, it not set out in
either of those documents, in the form set out in Schedules 2 and 3 of the Conditions.

Contractors tender for work provided for by a Prime Cost Sum


29.4 It the Contractor obtains permission from the Architect to tender for work provided for
by a Prime Cost Sum that falls within the ordinary course of the Contractors business
and his tender is accepted, it shall be treated as a Variation instructed under clause
13.1 and the provisions of clause 29 shall not apply but the limit of Retention stated in
the Appendix shail be increased correspondingly.

Nomination using the standard conditions


29.5 (1) The Contractor shall enter into each subcontract and supply contract using the
Standard Conditions of Nominated SubContract or the Standard Conditions of
Nominated Suppiy Contract, unless otherwise instructed by the Architect.

(2) If the Architect instructs the Contractor to enter into a subcontract or supply
contract using either amended standard conditions or conditions that are different from
the standard conditions, then, unless the Contractor was advised of this requirement
with a copy of the required subcontract conditions or supply contract conditions before
submitting his tender, the Architect shall issue an instruction requiring a Variation in
respect of the differences between the two sets of subcontract conditions or supply
contract conditions.

Contractor's responsibility for Nominated SubContractors and Nominated Suppliers


29.6 The Contractor shall be responsible for all Nominated Su bContractors and Nominated
Suppliers and for all work, other than design work, carried out and materials and goods
supplied by them, and shall remain responsible for carrying out and completing the
Works in accordance with the Contract notwithstanding the nomination of sub-
contractors to carry out work or suppliers to supply materials and goods.

Quantity Surveyors notification of interim payments


29.7 (1) The Quantity Surveyor shalt for each Interim Certificate:

(a) calculate the amount owing to each Nominated SubContractor and Nominated
Supplier in accordance with the subcontract and supply contract;

(b) notify the Contractor of the amount included in the interim Certificate for each
Nominated SubContractor and Nominated Supplier; and

(C) notify each Nominated SubContractor and Nominated Supplier, at the time the
interim Certificate is issued, of the amount of the interim payment included for that
subcontractor and supplier in the Interim Certificate and the amount of Retention
held by the Employer.

59
29 Nominated Sub-Contractors and Nominated Suppliers (contd)

(2) The Contractor shali pay each Nominated SubContractor and Nominated Supplier
the amount included for that Nominated SubContractor or Nominated Supplier in the
Interim Certificate, less any amount properly deductible by the Contractor, within 14
days, or such other time as may be stated in the subcontract or supply contract, of the
Contractor receiving payment from the Employer.

(3) The Contractor shall keep proper and detailed accounts and records of all payments
to Nominated SubContractors and Nominated Suppliers and shall make them availabie
for inspection by the Architect.

Direct payment 0: Nominated Sub-Contractors and Nominated Suppliers


29.8 (1) The Contractor shall, before an Interim Certificate is issued to him, if required by
the Architect, provide the Architect with reasonable proof that he has paid each
Nominated SubContractor and Nominated Supplier the amount included for that sub-
contractor or suppiier in any previous interim Certificate.

(2) The Contractor rnay withhold an amount from the payment included in an interim
Certificate for a Nominated SubContractor or Nominated Supplier if he provides
sufficient substantiation to satisfy the Architect that:

(a) he has good cause for doing so; and

(b) he has informed the Nominated SubContractor or Nominated Supplier of his


reasons for withholding that amount before doing so.

(8) if the Contractor withhoids an amount due to a Nominated SubContractor or


Nominated Suppiier and fails to satisfy the requirements under clause 29.8(2), the
Architect shaii issue a certificate to this effect stating the amount withheld, and the
Employer shaii be entitled to pay this amount to the Nominated Sub-Contractor or
Nominated Supplier direct and deduct it from any sum due or to become due to the
Contractor.

(4) Neither the existence nor the exercise of the Employers power under clause
29.8(3) shall make him liable to pay a Nominated SubContractor or Nominated Supplier
direct.

Extension of time for completion of Nominated SubContract works or delivery of


Nominated Supply Contract goods
29.9 Where a Nominated SubContractor ciaims an extension of time for the completion of
the subcontract works or a Nominated Supplier claims an extension of time for the
suppiy of the suppiy contract goods the Contractor shall make his assessment of the
extension of time, it any, that he believes to be fair and reasonable in accordance with
the provisions of the Nominated SubContract or Nominated Supply Contract and he,
shail obtain the Architects consent before he grants an extension of time to the
Nominated SubContractor or Nominated Supplier.

60
29 Nominated Sub-Contractors and Nominated Suppiiers'(contd)

Substantial completion of Nominated SubConfract works


29.1 0 (1) Where a Nominated Sub-Contract requires the subcontract works to be completed
by a specified date, the Architect shall, if he is satisfied that those works have been
substantialiy compteted, issue a certificate to the Contractor to that effect with a copy
to the Nominated SubContractor.

(2) Where clause 18 appiies, Substantial Completion of the subcontract works in a


Relevant Part shalt be deemed to have occurred on the Relevant Date.

(3) Where a Nominated SubContract requires the subcontract works to be carried


out at the same time as the Works with no separate compietion date specified, those
works shall be deemed to have been substantially completed on the day stated in the
Substantial Completion Certificate for the Works and the Architect shall issue a copy of
this certificate to each Nominated Sub~C0ntractor.

Architect to certify Nominated Sub~Contractors failure to complete on time


29.11 (1) Where a Nominated SubContract requires the subcontract works to be completed
by a specified date and the Nominated SubContractor fails to complete the subcontract
works by that date, or within any extension of time given to him, the Contractor shall
notify the Architect of this and issue a copy of the notification to the Nominated Sub-
Contractor.

(2) it in the Architects opinion the Nominated Sub-Contractor has failed to complete
the sub-contract works on time the Architect shail issue a certificate to the Contractor
to that effect in the form required by the sub-contract within 28 days of the Contractors
notification under ciause 29.1l(1), provided that the Architect is satisfied that the
Contractor has followed the provisions of clause 29.9, and shall issue a copy of his
certificate to the Nominated SubContractor.

Early final payment to Nominated SubCcntractor or Nominated Supplier


29.12 (i) The Architect may include the amount of the final payment to a Nominated Sub-
Contractor or Nominated Supplier in an Interim Certificate if:

(a) the subcontract works have been completed in accordance with the subcontract
or the supply of goods has been completed in accordance with the supply contract;

(b) the Architect and the Contractor are satisfied that the Nominated Sub-Contractor
or Nominated Suppiier has remedied all defects which have appeared and which
the Nominated SubContractor or Nominated Supplier has to remedy under the
subcontract or suppiy contract; and

(c) the Nominated SubContractor or Nominated Supplier has indemnified the


Contractor to the Contractors reasonabie satisfaction against any other defects
that may appear and against any omissions or fauits in the subcontract works or
Goods caused by the Nominated SubContractor or Nominated Supplier for which
the Contractor may become liabie to the Employer.

61
29 Nominated Sub-Contractors and Nominated Suppliers (contd)

(2) The Contractor shali pay the Nominated SubContractor or Nominated Supplier
the amount included for him in the Interim Certificate, less any amount properly deductible
by the Contractor, within 14 days, or such other time as may be stated in the sub-
contract, of the Contractor receiving payment from the Employer.

(3) Upon finai payment to the Nominated SubContractor or the Nominated Supplier:

(a) the Limit of Retention stated in the Appendix shall be reduced by the amount of
retention in respect of the sub~contract or supply contract; and

(b) the Contractor shall be discharged from any further liability for rectifying defects or
other faults in the sub-contract works or the goods during the Defects Liability
Period except for any defects not apparent at the time that the final payment was
made.

(4) Notwithstanding the final payment to a Nominated Sub-Contractor or Nominated


Supplier for the subcontract works or the supply of goods, the Contractor shail remain
responsible for toss or damage to the whole of the Works including those subcontract
works and the goods suppiied and either clause 22A, 22B or 22C, whichever is
applicable, shall remain in full force and effect.

Re-nomination
29.13 (1) If the employment of a Nominated Sub-Contractor is determined or a supply contract
is terminated for any reason, the Architect, as soon as practicable, shall nominate a
replacement subcontractor or supplier to complete the work subcontracted to the
originai Nominated Sub-Contractor or to supply the materials and goods, or the
equivalent of the materials or goods, that were to have been supplied by the original
Nominated Supplier, and the Contractor shall immediately enter into a subcontract or
supply contract with the replacement subcontractor or supplier.

(2) If the employment of the original Nominated SubContractor was determined or


the original supply contract was terminated for any reason other than a breach of contract
or other default by the Contractor or any person for whom the Contractor is responsible
other than the original subcontractor or supplier, then any increase in cost between
the original and the new subcontract sum or supply contract sum shall be added to
the Contract Sum.

(3) if the employment of a Nominated SubContractor was vaiidly determined by the


original Nominated SubContractor or the supply contract was validly terminated by
the original Nominated Supplier because of a breach of contract or other default by the
Contractor or any person for whom the Contractor is responsible other than the original
subcontractor or supplier, then any increase in cost between the original and the new
subcontract sum or suppiy contract sum shall be at the Contractors expense and
shali not be added to the Contract Sum.

(4) The provisions of clauses 29.13(1), 2913(2) and 29.13(3) shall also apply in the
event of the determination of the employment of a replacement subcontractor or the
termination of a supply contractwith a replacement supplier.

62
29 Nominated Sub-Contractors and Nominated Suppiiers (contd)

(5) The Contractor shaii have the same right of reasonable obiection to the nomination
of a replacement Nominated SubC0ntractor or a replacement Nominated Supplier as
he had under clause 29.2 to the nomination of the original Nominated SubContractor
or Nominated Supplier, and provided that the Contractor registers his objection giving
his reasons within 14 days of the nomination of a replacement Nominated SubC0ntract0r
or replacement Nominated Suppiier, the provisions of clause 29.2, where appropriate,
shall appiy.

Architects consent
29.14 The Contractor shail not determine the employment of a Nominated SubContractor or
terminate a supply contract with a Nominated Supplier without the Architects consent.

Employer not liable to a Nominated Sub-Contractor or Nominated Supplier


29.15 Neither the existence nor the exercise of the Employer's powers under clause 29 nor
anything else contained in these Conditions shall make him liable to a Nominated Sub-
Contractor or Nominated Suppiier.

30 Persons engaged by Employer

Persons for whom the Ernpioyer is responsible


30.1 The following persons shall be deemed to be persons for whom the Employer is
responsible:

(a) a Specialist Contractor who, under Clause 64(3), shali include a statutory undertaker
or utiiity company engaged by the Employer to carry out work;

(b) a person engaged by the Employer under clause 4.8(3); and

(c) a person referred to as a third party under clause 34.2.

Access to the Site and permission to carry out work


30.2 (1) Where the Contract identifies and gives a general description of work not forming
part of the Contract which is to be carried out by a Specialist Contractor, the Contractor
shalt allow the Specialist Contractor reasonable access to the Site and permit him to
carry out his work.

(2) Where the Contract does not provide the information referred to in clause 302(1),
the Contractor shalt stilt ailow the Specialist Contractor reasonable access to the Site
and permit him to carry out his work on the condition that if the Contractor incurs
additionai costs by doing so he may submit a detaiied claim with supporting particulars
to the Architect for reimbursement of these costs. if the Architect is satisfied that the
Contractor has incurred additional costs, the Architect shall instruct the Quantity Surveyor
to ascertain the amount of additional payment to be made.

(3) The Contractor shaii ailow persons engaged by the Employer under clause 4.3(3)
reasonable access to the Site and permit them to carry out their work without hindrance
as provided in clause 4.3(4).

63
30 Persons engaged by Empioyer (contd)

(4) The Contractor shall aliow a person referred to as a third party under clause 34.2
reasonabie access to the Site and permit him to examine, excavate or remove an object
of antiquity upon an instruction from the Architect to do so under that clause.

Contractor to fulfil his obligations to persons engaged by the Employer


30.3 The Contractor shaii at all times fulfii his obligations under clause 2.1 to persons engaged
by the Employer.

31 Facilities for statutory undertakers and utility companies

Access to site and facilities to carry out work


The Contractor shaii allow statutory undertakers or utility companies referred to in clause
6.4(1) reasonable access to the Site as provided for in clause 34(2) and shall give them
the faciiities set out in the Contract to enable them to carry out work not forming part of
the Works on or adjacent to the Site.

32 Certificates and payments

interim Certificates and interim valuations


32.1 (1) The Architect shall issue an Interim Certificate at the end of each Period of interim
Certificates stated in the Appendix commencing not later than 42 days after the
Commencement Date.

(2) The interim Certificate shall state the amount due to the Contractor from the
Employer and the Employer shalt pay that amount to the Contractor, less any monies
deductible by the Employer under clause 132.1(6), within the period for payment of
certificates stated in the Appendix.

(3) After the issue of the Substantial Completion Certificate for the whoie of the Works,
interim Certificates shall only be issued when further amounts are, in the Quantity
Surveyors opinion, due to the Contractor.

(4) The Contractor shall submit to the Quantity Surveyor, at least 14 days before the
date on which an interim Certificate is due to be issued, a statement setting out the
Contractor's estimate of the gross valuation of the work in progress including:

(a) the amount estimated for each of the items referred to in clause 322(3);

(b) a priced list of the materials and goods either delivered to or adjacent to the Site or
stored offsite and to be included in the Interim Certificate under clause 32.3;

(c) aii the accounts, vouchers, receipts and other documents that may reasonably be
required by the Quantity Surveyor; and

(d) the statements, accounts, vouchers, receipts and other documents submitted to
him by the Nominated SubContractors and Nominated Suppliers in accordance
with their subcontracts or suppiy contracts.

64
32 Certificates and payments (contd)

(5) The Quantity Surveyor shall make an interim vaiuation of the work in progress in
accordance with clause 32.2 to determine the estimated amount due in an interim
Certificate and shall submit his valuation to the Architect at least 7 days before the
Interim Certificate is due to be issued.

(6) The Ernpioyer may make any deduction authorised by the Contract from the amount
due to the Contractor under an interim Certificate, whether or not any Retention is
included in that Interim Certificate, provided that he gives a notice to the Contractor by
special delivery stating the amount of the deduction, a buildup of that amount and the
reason for it at least 7 days before making the deduction.

Estimate of amount due in interim Certificate


32.2 (1) The amount due in an Interim Certificate, subject to any agreement between the
parties as to stage payments, shall be the estimated gross valuation of the work in
progress as referred to in ciause 322(2) less:

(a) the Retention; and

(b) the total amount stated as due in each Interim Certificate previously issued.

(2) The estimated gross vaiuation of the work in progress shall be the total of the
amounts iisted in ciause 32.2(3) less the total of the amounts listed in clause 322(4).

(3) The following estimated amounts shali be included in the gross valuation:

(a) the value of the permanent work properly carried out including any additional work
or obiigation instructed as a Variation to the extent that this additional work or
obligation has been completed or fuifiiled in whoie or in part;

(b) the proportion of the vaiue of temporary works properly carried out where their
value is inciuded as a separate sum in the Schedule of Quantities and Rates;

(c) the proportion of the vaiue of a preliminary item properly provided or carried out by
the Contractor where its vaiue is included as a separate sum in the Scheduie of
Quantities and Rates;

(cl) the value of materiais or goods on or adjacent to the Site provided that:

. (i) they are to be incorporated into the permanent Works;

(ii) they have not been prematurely delivered; and

(iii) they are adequateiy protected against weather, other damage or theft.

(e) the vaiue of materiais or goods to be incorporated into the permanent Works before
they are delivered to or adiacent to the Site and to be included in an Interim
Certificate in accordance with clause 32.3;

65
32 Certificates and payments (contd)

(f) the amounts payable for work carried out by Nominated SubContractors in
accordance with the subcontracts;

(g) the amount payable in respect of a Contractor's tender accepted under ciause
29.4 for work provided for by a Prime Cost Sum;

(h) the amounts payabie for materials or goods supplied by Nominated Suppliers in
accordance with the supply contracts;

(i) the appropriate proportion of the sums included as separate items in the Scheduie
of Quantities and Ftates tor:

(i) profit on the amounts payable to Nominated SubContractors and Nominated


Suppiiers; and

(ii) attendance upon Nominated SubContractors;

(i) the payments made and costs incurred for:

(i) statutory fees and charges under clause 6.3;

(ii) opening up and testing materials, goods or work under clause 8.2; or

(iii) effecting and maintaining insurances resulting from the Emp|oyers failure to
insure under clause 22B.2(2) or 22C.3(2);

(k) the amount ascertained as additional payment for direct loss and/or expense under
clause 27.2;

(l) the amount payable for reimbursement for increases in the costs of labour and/or
materials under ciause 38 if applicable; and

(m) any other amount which is required by the Contract to be added to the Contract
Sum.

(4) Without prejudice to the Employers right of set off, the following estimated amounts
shalt be deducted from the gross vaiuationz

(a) the amounts deductible in iieu of:

(i) correction of errors in setting out the Works under clause 7(2);

(ii) replacement or reconstruction of materials, goods or work under clause


8.3(c); and

(iii) rectifying defects under clause i7.3(5);

(b) the amount ailowabie to the Empioyer for decreases in the costs of labour and/or
materials under ciause 38 if applicabie; and

66
32 Certificates and payments (contd)

(c) any other amount which is required by the Contract to be deducted from the Contract
Sum.

Offsite materials or goods


32.3 The Architect may, at his discretion or where expressly provided in the Contract, include
the vaiue of materiais or goods intended for inclusion in the Works in an Interim Certificate
before the materiais or goods are delivered to or adjacent to the Site and if this is the
case he shall instruct the Quantity Surveyor to estimate the value of these materials or
goods for inclusion in the Quantity Surveyors interim valuation of the work in progress

under clause 321(5).

Calculation of Retention
32.4 (1) The Retention on the payment for the Contractors work in progress shall be
calcuiated by applying the percentage stated in the Appendix as the Retention
Percentage to the estimated gross vaiuation referred to in clause 32.2 exclusive of the
amounts payabie: i

(a) under ciause 27;

(b) for work carried out by Nominated SubContractors;

(c) for materials or goods supplied by Nominated Suppliers; and

(d) for any adjustment for fluctuations in the costs of labour or materials under clause
38.

(2) The amount heid as the Retention shall not exceed the amount stated in the
Appendix as the Limit of Retention, as may be increased or reduced in accordance with
the Contract. Once the Limit of Retention has been reached no further amounts shall
be retained.

(3) The retention on the payment for the Nominated Sub~Contractors work in progress
and the Nominated Suppliers supply of materials or goods shall be calculated in
accordance with the subcontract or the supply contract, as the case may be and
added to the Retention held on the payment for the Contractors work.

Retention Rules
32.5 (1) The Retention shalt be held upon trust by the Employer for the Contractor and for
any Nominated SubContractor or Nominated Supplier (without obligation to invest)
subject to the rights of the Employer to have recourse to it for payment of any amount
which he is entitieci to under the Contract or at law or to deduct from it any sum owed
to him by the Contractor, provided that the Employer gives notice to the Contractor in
accordance with ciause 32.1 (6).

(2) The Architect shall issue an Interim Certificate for the payment of onehalf of the
Retention heid in respect of the whole of the Works, a Section or a Relevant Part, as the
case may be, E4 days after Substantial Completion of the whole of the Works, that
Section or Relevant Part.

67
32 Certificates and payments (contd)

(3) The amount of the Retention held in respect of a Section or Relevant Part shall be
deemed to bear the same reiationship to the Retention held for the whoie of the Works
as the estimated amount contained in the Contract Sum for that Section or Relevant
Part bears to the Contract Sum.

(4) The Architect shall issue an Interim Certificate for payment of all remaining Retention
within 14 days after the issue of the Defects Rectification Certificate for the whole of the
Works under clause 17.4 or 17.5.

Quantity Surveyor to prepare finai account


32.6 (1) The Quantity Surveyor shall prepare the final account, which is a statement of all
adjustments to be made to the Contract Sum as set out in clause 32.7, within the
period for compietion oi the final account stated in the Appendix commencing on the
date oi the Substantial Completion of the whole of the Works.

(2) The Quantity Surveyor shall send draft copies of the final account to the Contractor
and the relevant extracts to each Nominated Sub-Contractor or Nominated Supplier
from time to time as the preparation of the final account progresses.

(3) The Contractor shall submit to the Quantity Surveyor all the documents that are, in
the opinion of the Quantity Surveyor, reasonably necessary for the adjustment of the
Contract Sum, including those relating to the accounts of Nominated SubContractors
and Nominated Suppliers, not later than 6 months after Substantial Completion of the
whole of the Works or 3 months before the end of the period for the compietion of the
final account, whichever is earlier.

(4) The submission of the documents referred to in clause 32.6(3) shall not be a
condition precedent to the Quantity Surveyor preparing the final account, and, if the
Contractor faiis to compiy with that clause, the Quantity Surveyor shall prepare the final
account based on the information that is available to him.

(5) The Architect shall issue a copy of the final account signed by the Quantity Surveyor
and the Contractor to each of the parties by special delivery.

Aoljustment of the Contract Sum


32.7 (1) The Contract Sum shail be adjusted as described in clauses 32.7(2) and (3).

(2) The foiiowing amounts shaii be deducted from the Contract Sum:

(a) ail Prime Cost Sums for work to be carried out by Nominated SubContractors and
any Contractors profit and attendance priced in the Schedule of Quantities and
Rates as separate items on these sums included in the Schedule of Quantities and
Rates;

(b) alt Prime Cost Sums for materials or goods to be suppiied by Nominated Suppliers
and any Contractor's profit priced in the Schedule of Quantities and Rates as
separate items on these sums included in the Schedule of Quantities and Rates;

68
32 Certificates and payments (contd)

(C) ail Provisional Sums and the vatue of ail work for which Provisional Quantities and
Provisional Items are included in the Schedule of Quantities and Rates;

(d) the total of all Valuations under ciause 13.4 which result in a reduction in the Contract
Sum;

(e) the amounts deductible in Eieu of:

(i) correction of errors in setting out the Works under clause 7(2);

(ii) replacement or reconstruction of materials, goods or work under clause


8.3(c); and

(iii) rectifying defects under clause 127.3(5);

(f) the amount allowable to the Employer for decreases in the cost of labour and/or
materials under clause 38 if appiicable; and

(g) any other amount which is required by the Contract to be deducted from the Contract
Sum.

(3) The following amounts shall be added to the Contract Sum:

(a) the subcontract sums for each Nominated SubContractor as adjusted in


accordance with the subcontract;

(b) the Contractors tender sum accepted under clause 29.4 for work provided for by
a Prime Cost Sum as adjusted in accordance with the terms of the tender;

(0) the supply contract sums for materials or goods supplied by each Nominated
Supplier as adjusted in accordance with the supply contract;

(d) the Contractors profit upon the Nominated SubContract sums and on the sums
payable to Nominated Suppliers under ctauses 32.7(3)(a) and 32.7(3)(c) at the rates
included in the Schedule of Quantities and Rates or in the case where the nomination
arises from either:

(i) an instruction as to the expenditure of a Provisional Sum;

(ii) an instruction requiring a Variation for additional or substituted work; or

(iii) by agreement between the Architect and the Contractor,

at appropriate rates in the Schedule of Quantities and Rates or, if none, at fair
rates;

(e) the sums payable to the Contractor for attendance upon each Nominated Sub-
Contractor, provided that the Nominated SubContract sum has been added to
the Contract Sum under clause 32.7(3)(a), calcuiated as follows:

69
32 Certificates and payments (contd)

(E) if the Prime Cost Sum is included in the Schedule of Quantities and Hates, the
sum payable for attendance shalt be the price entered in the Schedule of
Quantities and Rates as a separate item whether or not the Nominated Sub-
Contract sum is greater or less than the Prime Cost Sum; or

(ii) if the Prime Cost Sum arose either from an instruction for the expenditure of a
Provisional Sum, an instruction requiring a Variation or by agreement between
the Architect and Contractor, the sum payabie shall be based upon appropriate
rates in the Schedule of Quantities and Rates, or shalt be a reasonable sum;

(f) the totai of all Valuations under clause 13.4 which results in an increase in the
Contract Sum;

(g) the total of the Valuation of work carried out by and any amount paid by the
Contractor in accordance with the instructions of the Architect as to the expenditure
of a Provisional Sum and of ail work for which Provisional Quantities and Provisional
items are included in the Schedule of Quantities and Rates;

(in) the payments made and costs incurred for:

(i) statutory fees and charges under clause 6.3;

(ii) opening up and testing materials, goods or work under clause 8.2; and

(iii) effecting and maintaining insurances resulting from the Employers failure to
insure under clauses 22B.2(2) or 22C.3(2);

(i) the amount ascertained as additional payment for direct loss and/or expense under
clause 27.2;

(j) the amount payable for reimbursement for increases in the costs of labour and/or
materials under ciause 38, if applicable; and

(k) any other amount which is required by the Contract to be added to the Contract
Sum.

issue of Final Certificate T


32.8 (1) The Architect shali issue the Final Certificate to each of the parties by special
delivery as soon as practicable after the issue of the Defects Rectification Certificate
for the whole of the Works provided that the Final Certificate shall not be issued until at
ieast 28 days after a copy of the signed final account has been given to each of the
parties under clause 326(5).

(2) At the same time as the Architect issues the Final Certificate, he shall notify each
Nominated SubContractor and Nominated Supplier of the date it was issued and the
amount inciudeci for the work carried out or the materials or goods supplied by them.

(3) The Final Certificate shall state:

70
32 Certificates and payments (contd)

(a) the Final Contract Sum;

(13) the sum of the amounts already stated as due in each interim Certificate; and

(c) the difference between the two sums expressed as a balance due to the Contractor
from the Ernpioyer or to the Employer from the Contractor, as the case may be.

(4) The balance referred to in clause 32.8(3) shall be a debt payable, either by the
Employer to the Contractor or by the Contractor to the Employer, as the case may
be, 28 days after the issue of the Final Certificate, subject to:

(a) all deductions authorised by the Contract; and

(b) the general rights of set off at law.

Effect of Final Certicate


32.9 (1) Subject to clauses 32.10 and 32.11 and except where any defect in or omission
from the Works was not reasonably discoverable at the time of the issue of the Defects
Rectification Certificate, the Finai Certificate shall be conclusive evidence in any
proceedings arising out of the Contract whether by arbitration or otherwise that:

(a) the materials, goods, workmanship and work were provided or carried out in
accordance with the requirements of clause 8 to the Architects satisfaction;

(b) the necessary effect has been given in the final account to all the terms of the
Contract requiring an adjustment to be made to the Contract Sum;

(c) all and only such extensions of time, it any, as are due under clause 25 have been
given; and

(d) any additional payment for direct loss and/or expense under clause 27 arising out
of the occurrence of any of the qualifying events referred to in that clause is in fuli
and final settlement of all claims for breach of contract, duty of care, statutory duty
or otherwise,

except and insofar as the Final Certificate shall have been rendered erroneous by reason
of fraud, dishonesty or fraudulent concealment.

(2) The issue of the Final Certificate shall not otherwise prejudice any common law
rights and remedies regarding defective work.

Proceedings commenced before Final Certicate


32.10 if proceedings under clause 41 are commenced by either party before the Final Certificate
is issued, the Final Certificate shall still have effect as conclusive evidence as provided
in clause 32.9 after either:

(a) the proceedings have been concluded whereupon the Final Certificate shall be
subject to the terms of any award orjudgment in or settlement of the proceedings;
or '

71
32 Certificates and payments (contd)

(b) 12 months have passed without either party taking a further step in the proceedings,
uniess there is reasonable cause for not taking this step, whereupon the Final
Certificate shail be subject to any terms agreed in partial settlement,

whichever is eariier.

Proceedings commenced after Final Certificate


32.11 If proceedings under clause 41 are commenced by either party within 28 days of the
issue of the Finai Certificate, the Final Certificate shall still have effect as conclusive
evidence as provided in ciause 32.9 except in respect of the matters to which those
proceedings relate.

Effect of Architects certicates


32.12 No Architects certificate shalt constitute or be construed to provide evidence that any
materials, goods, workmanship or work to which the certificate relates are in accordance
with clause 8 save and except as is provided by the Conditions in regard to the Final
Certificate.

Late payment
32.13 if the Employer does not pay an amount certified within the stipulated period of time,
the Contractor, without prejudice to his other rights and remedies, shall be entitled to
payment together with the certified amount by the Employer of interest at 1% below
the judgment debt rate prescribed from time to time by the Rules of the High Court
(Chapter 4A, Laws of Hong Kong) on the amount outstanding 7 days after the iatest
date on which the certified amount should have been paid.

33 Surety bond

Contractor to obtain guarantee from insurance company or bank


33.1 (1) The Contractor shall obtain the guarantee of an insurance company or bank,
approved by the Architect to be jointly and severally bound with the Contractor to the
Employer in the sum stated in the Appendix for the due performance of the Contract
under the terms of a surety bond.

(2) The Contractor shall deiiver the bond duly executed by the insurance company or
bank within 28 days of the acceptance of the Contractors tender.

(3) The surety bond shail be in the form set out in the Specification or, if not set out in
the Specification, in the form set out in Schedule 1 of the Conditions, and the cost of
obtaining the bond shalt be borne by the Contractor.

Fieiease of insurance company or bank


33.2.0. The insurance company or bank shall be released from the surety bond upon the issue
of the Substantial Cornpietion Certificate for the whole of the Works.

33.28 The insurance company or bank shall be released from the surety bond upon the issue
of the Defects Rectification Certificate.

72
33 Surety bond (contd)

Employers remedy if Contractor fails to deliver bond


33.3 If the Contractor falts to deiiver the bond under clause 33.1, the Employer may withhold
an amount not greater than the value of the bond stated in the Appendix until the bond
is delivered to the Empioyer, at which time the amount withheld shall be released in the
next Interim Certificate following the delivery of the bond.

34 Antiquities

Effect of finding antiquities


34.1 All fossils, antiquities and other objects of interest or value which may be found on the
Site before or during excavation shall, subject to the Antiquities and Monuments
Ordinance (Chapter 53, Laws of Hong Kong), become the property of the Employer,
and upon discovery of a fossii, antiquity or object the Contractor shall:

(a) use his best endeavours not to disturb the fossil, antiquity or object and shall
cease work if and insofar as the continuance of work would endanger it or prevent
or impede its excavation or removal;

(is) take an measures which may be necessary to preserve the fossil, antiquity or object
in the exact position and condition in which it was found; and

(c) immediately inform the Architect of the discovery and precise location of the fossil,
antiquity or object.

Architects instruction concerning a fossil, antiquity or object


34.2 The Architect shall instruct the action to be taken concerning the fossil, antiquity or
object and may require the Contractor to permit a third party to examine, excavate or
remove it.

35 Determination by Emptoyer

Default by Contractor
35.1 (1) The Architect may give a notice of default to the Contractor before Substantial
Compietion of the whoie of the Works if the Contractor defaults by:

(a) completely or substantiaiiy suspending the carrying out of the Works without good
cause;

(b) not proceeding regulariy and diligentiy with the Works;

(c) not complying with an instruction from the Architect under ciause 8.3 for the
replacement, repair or reconstruction of materials, goods or work not in accordance
with the Contract resuiting in the Works being materialiy affected;

(d) not complying with clause 19.1; or

(e) not complying with clause 19.2 by sub-letting the whole or substantially the whole
of the Works to the same person.

73
35 Determination by Employer (contd)

(2) The notice of default shail specify the default and state that a notice of determination
notice of
may be served if the default continues for a further 14 days after receipt of the
default.

of the
(3) The Employer may give a notice of determination of the employment
Contractor if:

given
(a) the Contractor continues the default for 14 days after receipt of the notice
under ciause 35.1 (1);

(b) the Architect certifies this during the continuation of the default; and

issue of
(c) the notice of determination is given to the Contractor within 14 days of the
the Architects certificate under clause 35.1 (3)(b).

shall
(4) The determination of the empioyment of the Contractor under clause 35.1(3)
take effect on the date of receipt of the notice of determination.

a notice of
(5) Where the Contractor ends the default, or the Employer does not give
if:
determination, the Employer may still determine the employment of the Contractor

(a) the Contractor continues the default or resumes it at any time;

the default; and


(b) the Architect certifies this during the continuation or resumption of

time
(c) the notice of determination is given to the Contractor within a reasonable
after the issue of the Architects certificate under clause 35.1 (5)(b).

shall
(6) The determination of the employment of the Contractor under clause 35.i(5)
take effect on the date of receipt of the notice of determination.

insolvency of Contractor
of the
35.2 (1) The Employer may give a notice of determination of the employment
Contractor if the Contractor:

(a) becomes bankrupt;

(b) makes a composition or arrangement with his creditors;

him;
(c) has a petition for compulsory windingup presented or made against

the purpose of
(d) enters into compulsory or voiuntary liquidation except for
reconstruction; or

(e) has a provisional liquidator or receiver appointed.

notice unless the


(2) The determination shali take effect on the date of receipt of the
receiver, as the
Employer, the Contractor and his trustee in bankruptcy, liquidator or
case may be, agree in writing to the continuation of the Contractor's employment.

74
35 Determination by Emptoyer (contd)

Employers rights upon notice of default or determination


35.3 It the Architect serves a notice of default upon the Contractor under clause 35.1, or the
Empioyer determines the empioyment of the Contractor under clause 35.2:

(a) the Contractor shall not remove any materials, goods, temporary buildings, plant
or equipment from the Site until instructed to do so by the Architect under ciause
35.4;

(b) the Empioyer shail be given a lien upon all materials, goods, temporary buildings,
plant and equipment belonging to the Contractor; and

(c) the Employer may provide site security it the Architect is not satisfied that adequate
site security is being provided in which case:

(i) the Contractor shail ailow access to the Site for this purpose; and

(ii) the Employer may recover the reasonable cost of providing site security in
accordance with clause 40 or as a debt.

Consequences of determination
35.4 (1) In addition to their other obiigations under the Contract, the parties shall act in
accordance with ciause 35.4 upon determination by the Employer under clause 35.

(2) The provisions of clauses 20 and 21 shali remain in effect until the Contractor has
ieft the Site notwithstanding determination of the employment of the Contractor.

(3) The Contractor shail return possession of the Site to the Employer immediateiy
upon determination, notwithstanding that he may dispute the validity of the determination.
in the event of a breach of contract by the Employer in determining the employment of
the Contractor, the only redress the Contractor shall have against the Employer is a
claim in damages.

(4) if the Architect so instructs, the Contractor shall immediately remove his materials,
goods, temporary buildings, piant and equipment with care so as to prevent injury,
death or damage to persons or property and ensure that other owners remove theirs
with similar care except to the extent that:

(a) they have become the property of the Employer; or

(b) the Architect instructs that some or ali of them shall be left on the Site for use in
cornpieting the Works.

(5) it the Contractor does not comply with clause 35.-4(4) within a reasonable time, the
Empioyer may, without being responsible for any loss or damage, remove and sell the
Contractors property and hold the proceeds, less all expenses incurred, to the credit
of the Contractor.

75
35 Determination by Employer (contd)

Works and to
(6) The Employer may employ and pay other persons to complete the
permitted by the
rectify defects of the kind referred to in clause 17.3 and they shall be
buildings, plant
Contractor to enter the Site and use the materials, goods, temporary
and equipment left on the Site under clause 35.4(4).

Employer,
(7) if instructed to do so by the Architect, the Contractor shall assign to the
so far as he is legally able to do so, without payment:

or other
(a) all suppliers, manufacturers and subcontractors warranties, guarantees
insofar
anciliary agreements for materials, goods and work relating to the Works,
as they are required by the Contract, within 28 days of the date of determination;
and

of materials or
(b) the remaining assignable benefit of any agreements for the supply
goods, carrying out of work and the hiring of plant and equipment within [4 days
'
of the date of determination.

supplied,
(8) The Employer shall pay for materials, goods, work, plant and equipment,
agreements
carried out or hired after determination at the rates stated in the relevant
between the Contractor and his sub-contractors or suppliers.

delivered
(9) The Employer may pay a subcontractor or supplier for materials or goods
goods or work have not already been
to the Site and work carried out if the materials,
goods or
paid for by the Contractor. If the Contractor has been paid for the materials,
may recover the
work but has not paid the subcontractor or supplier, the Employer
sum paid to the Contractor under clause 40 or as a debt.

the Contractor
(10) The Employer shall not be required to make any further payment to
unless the provisions of clause
untii the finai settlement is made under clause 35.6,
35.7 apply.

Quantity Surveyor to prepare final account


after the
35.5 The Quantity Surveyor shall prepare the final account as soon as practicable
referred to in clause
final account for the completion of the Works by the other persons
35.4(6) has been finalised and it shall set out:

excluding the
(a) the expenses incurred by the Employer in completing the Works
cost of Variations instructed after determination;

damages
(b) the amount of any damage including any liquidated and ascertained
under clause 24 due up to the date of determination and direct loss and/or expense
caused to the Employer by the determination;

and
(c) the payment made or otherwise discharged in favour of the Contractor;

Works calculated
(d) the total amount that would have been payable for completing the
in accordance with the Contract if the determination had not occurred.

76
35 Determination byAEmployer (contd)

The final settlement


35.6 (1) The Architect shalt certify, for the purpose of the final settlement, the amounts
included in the final account under clause 35.5 as:

(a) the cost incurred by the Ernpioyer in completing the Works represented by the
total of the items in paragraphs (a), (b) and (c) in clause 35.5; and

(b) the amount that it wouid have cost the Employer to have carried out and completed
the Works but for the determination, represented by the amount in paragraph (cl) in
clause 35.5.

(2) The difference between the two amounts in clause 35.6(1)(a) and (b) shall be
expressed in the certificate as a debt due to the Contractor from the Employer, or to the
Employer from the Contractor, as the case may be, and shall be payable within 28 days
after the issue of the Architects certificate.

Delayed commencement of completion works


35.7 (1) it the Ernpioyer has not begun the work of completion within 12 months after the
determination, the Contractor may give notice and require the Employer to make the
final settlement as soon as practicable.

(2) If instructed to do so by the Architect, the Contractor shall submit ail the documents
including those relating to the accounts of Nominated SubContractors and Nominated
Suppliers which are, in the Quantity Surveyors opinion, necessary to calculate and
prepare the final account.

(3) The Quantity Surveyor shail prepare the final account as soon as practicable after
receiving sufficient supporting documentation.

(4) If the Contractor fails to comply with clause 357(2) within 60 days of being instructed
by the Architect to do so, the Quantity Surveyor shall prepare the final account based
on the information that is available to him.

(5) The finai account shall set out:

(a) the estimated value of the work in progress properly carried out up to the date of
determination calculated in accordance with clause 322(2);

(b) the amount of any deduction authorised by the Contract, the amount of any damage
including any liquidated and ascertained damages under ciause 24 that wouid
have been due up to the date of determination and direct loss and/or expense
caused to the Employer by the determination; and

(c) the payments made or otherwise discharged in favour of the Contractor.

77
35 Determination by Empioyer (contd)

(6) The Architect shall certify for the purpose of the final settlement, the amounts set
out in the final account and the ditference between the value of the work in progress
represented by clause 35.7(5)(a) and the costs incurred by the Employer represented
by clause 35.7(5)(b) and (c) shall be expressed as a debt due to the Contractor from the
Employer or to the Employer from the Contractor, as the case may be.

Other rights and remedies


35.8 The provisions of clauses 35.1 to 35.7 are without prejudice to any other rights and
remedies that the Employer may possess.

36 Determination by Contractor

Default by Employer
36.1 (1) The Contractor may give a notice of default to the Employer if the Employer defaults
by:

(a) not paying an amount certified due to the Contractor less any deductions authorised
by the Contract within the period for payment of certificates stated in the Appendix;

(b) interfering with or obstructing the issue of a certificate to the detriment of the
Contractor;

(c) not complying with clause 19.1 (1);

(cl) postponing the date for commencement of the whole of the Works or substantially
the whole of the Works for a period of 120 days or more due to an Architects
instruction under clause 23.3; or

(e) causing the carrying out of the whoie of the Works or substantially the whole of the
Works to be suspended for a continuous period of 120 days or more due to an
Architects instruction under clause 23.3 unless notice of the suspension is given
in the Contract or the suspension was caused by a breach of contract or other
default of the Contractor or any person for whom the Contractor is responsible.

(2) The notice of default shall specify the default and state that notice of determination
may be served if the default continues for a further 14 days after receipt of the notice of
defauit.

(3) The Contractor may give a notice of determination of his own employment to the
Employer if:

(a) the Empioyer continues the default for 14 days after receipt of the notice given
under clause 36.i(1); and

(b) the notice of determination is given to the Employer within a further 14 days.

(4) The determination shall take effect on the date of receipt of the notice of
determination.

78
36 Determination by Contractor (cont'd)

(5) Where the Empioyer ends the defauit, or the Contractor does not give a notice of
determination, the Contractor may still determine his own empioyment if:

(a) the Employer continues the default or resumes it at any time; and

(b) the notice of determination is given to the Employer upon or within a reasonable
time after the continuation or resumption of the default except that in the case of
clause 36.1(1)(d) the resumption of the default shall have lasted for a continuous
period of at least 30 days.

Insoivency of Employer -
36.2 (1) The Contractor may give a notice of determination of his own employment if the
Employer:

(a) becomes bankrupt;

(b) makes a composition or arrangement with his creditors;

(c) has a petition for compulsory windingup presented or made against him;

(d) enters into compulsory or voiuntary iiquidation except for the purpose of
reconstruction; or

(e) has a provisional liquioiator or receiver appointed.

(2) The determination shall take effect on the date of receipt of the notice of
determination.

(3) The obligation of the Contractor to carry out and to complete the Works shall be
suspended immediately after the occurrence of any of the events set out in clause
36.2 and before any notice of determination of his own employment takes effect.

Consequences of determination
36.3 (1) in addition to their other obligations under the Contract, the parties shall act in
accordance with clause 36.3 upon determination by the Contractor of his own
employment under clause 36 uniess the employment has been reinstated.

(2) The provisions of ciauses 20 and 21 shalt remain in effect until the Contractor has
left the Site notwithstanding determination of the employment of the Contractor.

(3) The Contractor shalt immediateiy remove his materials, goods, temporary buildings,
ptant and equipment with care so as to prevent injury, death or damage to persons or
property and ensure that other owners remove theirs with similar care except to the
extent that:

(a) they have become the property of the Employer; or

79
36 Determination by Contractor (contd)

(b) the Architect instructs that some or all of them are to be left on the Site for use in
completing the Works and the Contractor agrees to leave them on the Site subject
to payment under clause 36.4(1)(c) for materials and goods and a reasonable
payment for the other items.

(4) The Contractor shall return the possession of the Site to the Employer immediately
upon completing the removal of all items referred to in clause 136.3(3) and in any case
not later than 28 days after determination but shall be allowed access to the Site to take
all measurements required for the preparation of the final account.

(5) If instructed to do so by the Architect, the Contractor shall assign to the Employer,
so far as he is legally able to do so, without payment:

(a) all suppliers, manufacturers and subcontractors warranties, guarantees or other


anciilary agreements for materials, goods and work relating to the Works insofar as
they are required by the Contract, within 28 days of the date of determination; and

(b) the remaining assignabte benefit of any agreements for the supply of materials or
goods, carrying out of work and the hiring of plant and equipment within 14 days
of the date of determination.

(6) The Employer shall pay for materials, goods, work, plant and equipment supplied,
carried out or hired after determination at the rates stated in any relevant agreement
between the Contractor and his subcon1:ractors or suppliers.

(7) The Employer may employ and pay other persons to complete the Works and to
rectify defects of the kind referred to in clause 17.3 and they shall be permitted to enter
the Site and use the materials, goods, temporary buildings, plant and equipment left on
the Site by the Contractor under clause 363(3).

(8) The Employer shall pay the Contractor the Retention within 28 days of the date of
the determination, subject to any right of the Employer of deduction which had accrued
before determination.

Contractor to submit nal account


36.4 (1) The Contractor shall submit a final account to the Quantity Surveyor for checking,
as soon as practicable, setting out the sum of:

(a) the estimated value of the work in progress properly carried out up to the date of
determination calculated in accordance with clause 322(2);

(b) the estimated value of any work carried out for the protection of the Site and the
Works after determination;

(c) any amount not included in clause 36.4(1)(a) for the cost of materials and goods
that were properly ordered for the Works and delivered to or adjacent to the Site
which the Contractor has paid for, or is legally bound to pay for, and has or will
transfer the property in these materials and goods to the Employer;

80
36 Determination by Contractor (contd)

(d) the reasonable cost of removai of materials and goods not to be sold to the Employer
and temporary buildings, plant and equipment not to be left on the Site; and

(e) the amount of any direct loss and/or expense caused to the Contractor by the
determination.

(2) The estimated vaiue of the work in progress referred to in clause 36.4(i)(a) shall
be broken down into separate amounts for each of the reievant items listed in clause
322(3).

(3) The Contractors submission shall be supported by detailed and annotated


dimension sheets, measurements, accounts, vouchers, receipts and the like that may
reasonably be required by the Quantity Surveyor to ascertain the amounts properly due
to the Contractor. The submission shall also include the accounts submitted by each
Nominated SubContractor and Nominated Supplier together with their similar supporting
documentation. .

Quantity Surveyor to check final account


36.5 The Quantity Surveyor shall check, verify or amend the final account as soon as
practicable after receiving sufficient supporting documentation.

The final settlement


36.6 (1) Upon verification or amendment of the Contractors final account under ciause 6
36.5, the Architect shaii certify for the purpose of the finai settlement:

(a) the amount of the final account being the total of the amounts under clause
364(1); and

(b) the payments made or otherwise discharged in favour of the Contractor.

(2) The difference between the two amounts in clause 36.6(t)(a) and (b) shall be
expressed in the certificate as a debt due to the Contractor from the Employer, or to the
Employer from the Contractor, as the case may be and shall be payable within 28 days
after the issue of the Architect's certificate.

Architect to notify sub-contractors and suppliers


36.7 The Architect shail notify each Nominated SubContractor and Nominated Supplier of
the date of the certificate issued under clause 36.6 and the amount included in it for
work carried out or materials and goods supplied by them.

Other rights and remedies


36.8 The provisions of clauses 36.1 to 36.6 are without prejudice to any other rights and
remedies which the Contractor may possess.

81
37 Determination by Employer or Contractor

Grounds for determination


to the other that the employment
37.1 (1) The Employer or the Contractor may give a notice
carrying out of the whole of the
of the Contractor will be determined in 14 days if the
suspended for a continuous
Works or substantially the whole of the Works has been
period of 120 days or more due to:

the Contractors All Risks insurance


(a) loss or damage caused by a peril covered under building;
Peril covered by the insurance of the existing
of the Works or by a Specified
or

(b) hostilities involving Hong Kong.

notice of determination under clause


(2) The Contractor shall not be entitled to give
37.1 (1)(a) in respect of loss or damage if:

contributed to by a breach of contract


(a) the icss or damage was caused or significantly
for whom the Contractor is
or other default of the Contractor or any person
responsibte; or

the Contractor significantly contributed


(b) inspection by the insurers or mobilisation by
of the Works.
to the delay in recommencing the carrying out

Site security
37.2 (1) The Employer may provide site security it:

served a notice of determination under


(a) either the Ernpioyer or the Contractor has
ciause 37.1 (1); and

site security is being provided.


(b) the Architect is not satisfied that adequate

the purpose of this clause.


(2) The Contractor shail allow access to the Site for

Consequences of determination
the Contract the parties shall act in
37.3 (1) in addition to their other obligations under
of the employment of the Contractor
accordance with ciause 37.3 upon determination not
clause 37.1 if the employment has
by either the Employer or the Contractor under
been reinstated.

remain in effect until the Contractor has


(2) The provisions of clauses 20 and 21 shall
of the employment of the Contractor.
ieft the Site notwithstanding determination

his materials, goods, temporary buildings,


(3) The Contractor shalt immediately remove
iniury, death or damage to persons or
plant and equipment with care so as to prevent the
theirs with similar care except to
property and ensure the other owners remove
extent that:

Employer; or
(a) they have become the property of the

82
37 Determination by Employer or Contractor (contd)

(b) the Architect instructs that some or all of them are to be left on the Site for use in
completing the Works.

(4) The Contractor shall return possession of the Site to the Employer immediately
upon cornpieting the removal of all items referred to in clause 373(3) and in any case
not later than 28 days after determination notwithstanding that he may dispute the
validity of the determination. in the event of a breach of contract by the Employer in
determining the employment of the Contract the only redress the Contractor shall have
against the Employer is a claim in damages.

(5) If instructed to do so by the Architect, the Contractor shall assign to the Employer,
so far as he is legally able to do so, without payment:

(a) all suppiiers, manufacturers and subcontractors warranties, guarantees or other


ancillary agreements for materials, goods and work relating to the Works, insofar
as they are required by the Contract, within 28 days of the date of determination;
and

(b) the remaining assignable benefit of any agreements for the supply of materials or
goods, carrying out of work and the hiring of plant and equipment within 14 days
of the date of determination.

(6) The Empioyer shall pay for materials, goods, work, plant and equipment supplied,
carried out or hired after determination at the rates stated in any relevant agreement.

(7) The Employer shall pay the Contractor:

(a) one~half of the Retention within 28 days of the date of determination, subject to
any accrued right of deduction which he had before the determination; and

(b) the remainder of the Retention as part of and in accordance with the final settlement
under clause 37.5.

Quantity Surveyor to prepare final account


37.4 (1) The Contractor shall submit, within 60 days of the date of determination, all the
documents including those relating to the accounts of Nominated SubCcntractors
and Nominated Suppiiers which are in the Quantity Surveyors opinion necessary to
calcuiate and prepare the final account.

(2) It the Contractor fails to comply with clause 3724(1) the Quantity Surveyor shall
prepare the final account based on the information that is available to him.

(3) The Quantity Surveyor shall prepare the final account as soon as practicable after
receiving sufficient supporting documentation or after the expiry of the 60 days referred
to in ciause 137.4(1).

(4) The final account shall set out:

83
37 Determination by Employer or Contractor (contd)

(a) the estimated value of work in progress properly carried out up to the date of
determination calcutated in accordance with clause 322(2);

(lo) the estimated value of any work carried out for the protection of the Site and the
Works after determination;

(0) any amount, not included in the amount calculated under clause 37.4(4)(a), for the
cost of materials and goods deiivered to or adjacent to the Site properly ordered
for the Works which the Contractor has paid for, or is legally bound to pay for, and
has or will transfer the property in to the Employer; and

(d) the reasonable cost of removal of materials and goods not to be sold to the Employer
and temporary buildings, plant and equipment not to be left on the Site.

The final settlement


37.5 (1) The Architect shall certify for purpose of the final settlement:

(a) the amount of the tinat account being the total of the amounts under clause
37.4(4); and

(b) the payments made or otherwise discharged in favour of the Contractor.

(2) The difference between the two amounts in clause 815(1) shall be expressed in
the certificate as a debt due to the Contractor from the Employer, or to the Employer
from the Contractor, as the case may be, and shall be payable within 28 days after the
Architects certificate.

Architect to notify subcontractors and suppliers


37.6 The Architect shalt notify each Nominated Sub-Contractor and Nominated Supplier of
the date on which the certificate was issued under clause 37.5 and the amount included
in it for work carried out and materials or goods supplied by them.

33 Fluctuations

Fluctuation provisions only applicable if expressly stated to be


38.1 The Contract Sum shalt be adjusted upwards or downwards to take account of
tiuctuattons in the cost of labour and materials in accordance with the provisions set
out in the Contract only if it is expressly stated in the Appendix that the Contract Sum is
to be adjusted for ttuctuations.

Adjustment for fluctuations occurring after the Completion Date


38.2 It the Contractor faiis to complete the Works by the Completion Date and the Architect
has issued a certificate to that effect under clause 24.1, the adjustments for fluctuations
occurring after the Completion Date shall be calculated based on the cost of labour
and rnateriats current at the Completion Date.

84
39 Notices, certificates and other communications

Submission of notices, certificates and other communications


(1) Ail notices, certificates and other communications under the Contract shall be
submitted to the Employer, the Architect or the Contractor on the Site or sent to the
address stated in the Articies of Agreement or such other address in Hong Kong as
may be advised.

(2) Except for notices, certificates or other communications required to be sent by


speciai deiivery, a notice, certificate or other communication shall be given by hand,
sent by post or, it both parties agree, sent by facsimile or electronic maii.

(3) Any notice, certificate or other communication sent by prepaid post shall be deemed
to be received two ciear days, exctuding general holidays, after posting.

40 Recovery of money due to the Employer

Empioyeris power to recover damages etc.


(1) The Empioyer may make any deduction authorised by the Contract or at law
including without iimitation, deductions for costs, damages, liquidated and ascertained
damages, debts, expenses or other sums for which the Contractor is liable to the
Employer from amounts due to the Contractor including Retention.

(2) It is a condition precedent to the Employers right of deduction under clause


40.1 (1) that he gives a notice to the Contractor by special delivery stating the amount of
the deduction and the reason for it at least 7 days before making the deduction.

41 Settlement of disputes

Procedures and Designated Representatives


41.1 (1) Subject to clause 41.5 dealing with early arbitration the parties shall ioilow the
dispute settlement procedures outlined in clause 41.

(2) Each party shall designate one of its own senior executives as its representative
(referred to in clause 41 as the Designated Representatives") within 14 days of
acceptance of the Contractors tender, and the Designated Representatives shall
endeavour to settle disputes that arise during the carrying out of the Works.

(3) The Designated Representatives shall have the authority to settle disputes and
shall not be involved in the day to day administration of the Contract.

Reference to Designated Representatives


41.2 (i) If a dispute arises under or in connection with the Contract, the Architect shall, at
the request of either party, immediately refer the dispute to the Designated
Representatives.

(2) The Designated Representatives shall meet within 7 days of receipt of a notice
from the Architect requesting them to resolve the dispute.

85
41 Settlement of disputes (contd)

Reference to mediation
of
41.3 (1) If the dispute is not resoived by the Designated Representatives within 28 days
may
the dispute being referred to them by the Architect under clause 41.2, either party
to mediation
give a notice to the other party, by special delivery, to refer the dispute
and the person to act as the mediator shali be agreed between the parties.

after
(2) if the parties tail to agree on the person to act as the mediator within 21 days
on the
either party has given to the other a written request to do so, the mediator shall,
for the
written request of either party, be appointed by the President or Vice-President
or
time being of The Hong Kong Institute of Architects co-jointly with the President
Vice-President for the time being of the Hong Kong institute of Surveyors.

in
(3) The mediation shall, unless otherwise agreed by the parties, be conducted
Centre Mediation
accordance with and subject to the Hong Kong International Arbitration
Fiuies except those provisions in the Rules relating to the appointment of the mediator.

first
(4) A dispute under Articie 5 shall be immediately referred to arbitration without
being referred to mediation.

Reference to arbitration
of
41 .4 (i) It the dispute is not settied by mediation within 28 days of the commencement
delivery, to
the mediation, either party may give a notice to the other party, by special
agreed
refer the dispute to arbitration and the person to act as the arbitrator shall be
between the parties.

after
(2) if the parties fail to agree on the person to act as the arbitrator within 21 days
on the
either party has given to the other a written request to do so, the arbitrator shali,
for the
written request of either party, be appointed by the President or Vice-President
or
time being of The Hong Kong Institute of Architects co-jointly with the President
VicePresident for the time being of the Hong Kong institute of Surveyors.

to
(3) The Presidents or VicePresidents referred to in clause 41 .4(2), if in agreement
Centre
do so, may, at their discretion, request the Hong Kong international Arbitration
to appoint the arbitrator, by a joint letter to the Chairman of that organization.

appoint
(4) It the Presidents or VicePresidents referred to in clause 41 4(2) fail to
the arbitrator within 80 days after receiving the written request to do so under clause
by
414(2) then the arbitrator shalt on the written request of either party be appointed
the Hong Kong internationai Arbitration Centre.

the
(5) The arbitration shalt be a domestic arbitration conducted in accordance with
Arbitration Ordinance (Chapter 341, Laws of Hong Kong) and, unless otherwise agreed
by the parties, with the Domestic Arbitration Rules of the Hong Kong international
of
Arbitration Centre except those provisions in the Rules relating to the appointment
the arbitrator.

86
41 Settiement of disputes (contd)

Timing of arbitration
41.5 (1) The arbitrator shali have jurisdiction to hear the parties and commence the arbitration
of a dispute arising out of, under or in connection with the Contract at any time on a
question of whether:

(a) an Article 5 objection will be upheld;

(b) the Architect is empowered by the Conditions to issue an instruction;

(c) a certificate has been improperly withheld or was not issued in accordance with
the Conditions;

(d) the assessment of the Employer's loss of value under clause 7.2 is reasonable;

(e) the Contractors objection to a Variation referred to in ciause 13.1 (1 )(a) is reasonable;
and

(f) the Contractors consent to the Empioyer taking possession of a Relevant Part
under ciause 18.1 is unreasonably withheid,

or on a dispute under clauses 35, 36 and 37.

(2) The hearing of disputes other than those listed in clause 415(1) shall not commence
until after Substantial Completion or alleged Substantial Completion of the whole of the
Works or determination or alleged determination of the Contractors employment or
abandonment of the Works unless the written consent of the parties to the hearing is
given after the dispute has arisen.

Arbitrators powers
41.6 The arbitrators powers include:

(a) rectifying the Contract to accurately reflect the true agreement made by the parties;

(b) directing measurements or Vaiuations to determine the rights of the parties;

(C) assessing and awarding any sum which ought to have been the subject of or

included in a certificate; and

(d) opening up, reviewing and revising, without limitation, the giving, submitting or
issuing of any agreement, approval, assessment, authorisation, certificate,
confirmation, consent, decision, delegation, direction, dissent, determination,
endorsement, instruction, notice, notification, opinion, request, requirement,
statement, termination or Valuation.

The place of arbitration


41.7 The place of arbitration shalt be Hong Kong.

87
41 Settiement of disputes (contd)

Contractor to continue to proceed diligently


41 .8 (1) The Contractor shali continue to proceed regularly and diligently with
the Works
despite a dispute having arisen, and shall continue to give effect to ail instructions
from
the Architect untess and until revised by agreement between the Designated
Representatives, by mediation or in arbitration under clause 41.

(2) The Contractors compiiance with ciause 41 .8(1) is without prejudice


to any other
rights and remedies that he may possess.

88
Appendix
Clause Clause

Time for submission of master 3.1 Liquidated and ascertained 24.2


programme damages (HK$ per day)
(it not stated, within 42 days of
acceptance of the Contractors tender)

Defects Liabiiity Period 17.3


(if not stated, 12 months
from Substantial Completion Period of Interim Certificates 32.1
(if not stated, 1 calendar month)
of the Works, a Section or a Fieievant Part)

21.2 Period for payment of certificates 32.1


Limit of indemnity to third party liability
(if not stated, within 14 days
insurance against injury or death to any
person from the date of the certificate)

HK$

Retention Percentage 32.4


Limit of indemnity to third party liability 21.2
(if not stated, 10 per cent)
insurance against injury or damage to
real or personal property
"/0
HK$
Limit of Retention 32.4
Insurance of the Works 22.1
E-iK$
*Ciause 22A/Clause 22B!
plus the Retention held in
Clause 22C applies
respect of Nominated Sub-Contractors
22.2 and Nominated Suppliers
Percentage to cover
professional fees

Period for completion of the 32.6


%
final account
23.1 (if not stated, within l2 months
Date for Possession of the Site
from Substantial Completion
of the whole of the Works)

Commencement Date 23.2


Amount of surety bond 33.1

HK$

Release of insurance company or bank 33.2


* Clause 33.2A/Clause 33.28 applies
Completion Date 23.2

Fluctuations 38
(The Contract Sum will be
adjusted for fluctuations only if
it is expressly stated to be so
adjusted in the space below)

* Delete as applicable

89
SCHEDULE 1
FORM OF SURETY BOND
TO BE GIVEN BY THE CONTRACTOR TO THE EMPLOYER

By this Bond, we .................................................................................................................... ..

<trading as ..................................................................................................................... ..> (Note 1)

[whose registered office is} at...................................................................................... .. (Note 2)

(the Contractor) and .................................................................................................................... ..

whose registered office is at ........................

(the Surety) are heid and firmly bound unto ........................................................................... ..

(the Empioyer) in the sum of Hong Kong Dollars ................................................................... ..

........................................................................................... .. (HK$

for the payment of which sum the Contractor and the Surety bind themselves, their successors
and assigns, jointly and severaily by these presents.

Seated with our respective seals/Signed and sealed respectively* (Note 3) and dated this

...................... .. day of

Whereas [By a Contract dated the ....................... .. day of .............................. .. 20 ............... ..

made between the Employer of the one part and the Contractor of the other part] or

[By the letter of acceptance sent by the Architect on behalf of the Employer to the Contractor

dated the............................ ..day of ............................ .. 20............ .. the Empioyer accepted the

tender submitted by the Contractor dated the .......................... .. day of ..................... .. 20 ......... ..]

(Note 4) torthe ..............

. . . . . . . . . . . . . . . . . . . . . . - . . - - . u . - . . u . - . . . . . . . - . - . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , , _ _ _ , , , _ _ _ , _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . , _ __

. . . u . . . u . - . u . - . . - . n - - . . - u - u - . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . , . . . . . . . . . , . . . _ , , . . . . . , , , , , . . , , , , , . , . , . ,,
(the Contract) the Contractor has agreed to develop the Architects design to the extent
specified in the Contract, construct, complete and maintain the Works (as therein defined)
until the issue of the Defects Rectification Certificate and to perform the Contract in conformance
with the provisions thereof.

and whereas pursuant to the terms of the Contract, the Contractor has agreed to obtain
the guarantee of a surety to be bound unto the Employer in the sum of Hong Kong Doilars

. . . . . - . . - . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
. .... . .... ..... . ...... . .... . . ... . . ... ...... .-.... .- . .... . ... . .... ...................... . ..

(H K$ ........................................................ ..) forthe due performance of Contract by the Contractor.

and whereas at the request of and for the account of the Contractor, the Surety has agreed to
guarantee the Employer the due performance by the Contractor of its obligations under the
Contract.

Now the conditions of the above written Bond are:

1. The words and expressions in this Bond shall have the same meaning as in the Contract.

2. The Contractor shall duly perform and observe ali the terms, provisions, conditions,
obligations, stipulations and specification of the Contract according to the true purport intent
and meaning thereof and to the reasonable satisfaction of the Architect appointed by the
Employer in respect of the Works or if on default by the Contractor the Surety shall satisfy and
discharge the damages sustained by the Employer thereby as certified by the said Architect,
up to the amount of the above written Bond then his obligation shall be null and void but
otherwise his obiigation shall be and remain in full force and effect.

3. No alterations in terms of the Contract made by agreement between the Employer and
the Contractor or in the extent or nature of the development of the Architect's design to the
extent specified in the Contract, construction, completion and maintenance of the Works and
no allowance or extension of time given or to be given by the Employer under the Contract nor
any indulgence, forbearance, forgiveness, payment or concession to the Contractor in or in
respect of any matter or thing concerning the Contract on the part of the Employer or any
failure of supervision to prevent any fault by the Contractor shall in any way release the Surety
from any liability under the above written Bond.

4. This Bond shail be binding upon the Contractor and the Surety and their respective
successors and assigns jointly and severaily (provided that the Contractor and Surety may not
assign their respective rights and liabilities hereunder without the prior written consent of the
Employer) and shall inure to the benefits of the Employer and its successors and assigns.

5. This Bond shali remain valid for receipt of claims as aforesaid until the date of issue of
the Substantial Compietion Certificate/Defects Rectification Certificate* for the whole of the
Works pursuant to the Conditions of the Contract and any release of the Surety from the Bond
shalt be expressly subject to any claims made before this date.

6. This Bond shall be governed and construed in accordance with the laws of the Hong
Kong Special Administrative Region and the Surety hereby agrees to the nonexclusive
jurisdiction of the Courts of the Hong Kong Special Administrative Region.

* Delete as appropriate.

91
SIGNED, SEALED AND DELIVERED by the (Note 5)

Contractor in the presence of :-

\,._g,-._~ 4._;~ /

(Name and occupation of witness) *"*

OR

THE COMMON SEAL of the Contractor (Note 6)

was hereunto affixed in the presence of :-

(Name and occupation of witness) \/% -N"'-4*"-'\ "-

OR

SIGNED, SEALED AND DELIVERED for (Note 7)

and on behaif of and as Eawful

attorney of the Contractor

under Power of Attorney dated

.............................................................. ..by

. . . . . . . . . . . . . . . . . . . . . . . . . . . . u . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . ..

.. ..... ..... ... .... . .- . .-.. . n... .... ... . ... . o-- u u .-.u y..o. . .... ...u

- s . - u - - . o - - - u - . - u . . . - . . . . - . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . .-

(Name and occupation of witness) \J1~_/.z \%~_a.u4~_az -_z~.-%/~-1N

92
THE COMMON SEAL of the Surety was here ) (Note 6)
C
)
unto affixed in the presence of : )
)
.................................................................. .. )
(Signature of witness) )
)
.................................................................. .. )
)
.................................................................. .. )
(Name and occupation of witness) )

OR

SIGNED, SEALED AND DEEJVERED for ) (Note 7)


)
and on behalf of and as iawful )
)
attorney of the Surety )
)
under Power of Attorney dated )
)
.................................................................. .. )
)
by ............................................................. .. )
)
in the presence of : )
)
.................................................................. .. )
(Signature of witness) )
)
.................................................................. .. )
)
.................................................................. .. )
(Name and occupation of witness) )

Notes

(1) Delete content in < > where the Contractor is a limited company.
(2) Delete content in [ ] where the Contractor is a firm.
(3) *
Deiete as appropriate.
Delete Sealed with our respective seais in the case of a firm.
Deiete Signed and sealed respectively in the case of a iimited company.
(4) ** Delete
as appropriate, select according to whether the Contract is signed or not.
(5) For use in the case of a soie proprietor or where all partners of a firm execute.
(6) For use in the case of a limited company executing under its common seal.
(7) For use in the case of a firm or a limited company executing through an attorney.

93
SCHEDULE 2
FORM OF WARRANTY TO BE GIVEN BY
THE NOMINATED SUB-CONTRACTOR TO
THE EMPLOYER IN CONSIDERATION OF NOMINATION

This DEED OF WARRANTY is granted to ................................................................................ ..

(the Employer) in respect of .................................................................................................

. - . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - . . . . . . . . . . ..

(the Contractor) under the terms of the Contract between the Employer and the Contractor

dated ............................................................................................ .. or the letter of acceptance

dated ................................................................................ .. of the Contractors tender dated

......................................................................................................................................... ..* and

In respect of our Tender for ..................................................................................................... ..

(the Sub-Contract Works) which are intended to form part of the Main Contract Works under
a Nominated SubContract (the SubContract).

We ............................................................................................................................................. ..

(the Nominated SubContractor) warrant that in consideration of your instructing the Architect
to nominate us as the Nominated SubContractor for the SubContract Works:

(a) We will commence and complete the SubContract Works in accordance with the Sub-
Contract.

* detete as appropriate

94
(bl We will indemnify the Employer against all extra costs that may be incurred by non-
performance of the SubContract Works, by late completion of the SubContract Works
or by any breach of these warranties.

We have exercised and will exercise all reasonable skill and care in :-

(i) the design of the SubContract Works insofar as the SubContract Works have
been or will be designed by us; and

(ii) the selection of materials and goods for the SubContract Works insofar as such
materials and goods have been or will be selected by us.

(Ci) We will comply with and satisfy any performance specification or requirements insofar
as such performance specification or requirements are included or referred to in the
Tender Documents and/or our Tender as part of the description of the SubContract
Works.

(9) We will supply the Architect and or Contractor with such information as either may
reasonably require and at such times that the Contractor shall not be delayed in completing
the Main Contract Works by the Completion Date by our failure to supply such information
or by delay on our part, provided always that no liability shall arise in respect of such
delay on our part until we have accepted the Contractors order in respect of the Sub-
Contract Works.

(fl Nothing in our Tender shall operate to exclude or limit our liability for breach of the
warranties set out herein.

(9) We will obtain a surety bond in the form set out in Schedule 1 of the SubContract with
the requisite changes in wording to reflect that the bond is to be given by the Nominated
Sub-Contractor to the Employer instead of to the Contractor. This bond will be duly
executed under seal by an approved insurance company or bank, acknowledging that
the insurance company or the bank is jointly and severally bound with us to the Employer
tn the sum of 10% of the Sub-Contract Sum (rounded up the nearest thousand dollars)
against breach of the warranties hereof.

The words and expressions used in this Deed of Warranty shall have the same meaning as in
the Contract and the SubContract.

95
SIGNED, SEALED AND DELIVERED by the ) (Note 1)

)
SubContractor in the presence of : )
)
.................................................................. .. )
(Signature of witness) )
)
.................................................................. .. )
)
.................................................................. .. )
(Name and occupation of witness) )

OR

THE COMMON SEAL of the SubContractor ) (Note 2)


)
was hereunto affixed in the presence of : )
l
.................................................................. .. )
(Signature of witness) )
l
.................................................................. .. )
)
.......................
(Name and occupation of witness) )

OR

SIGNED, SEALED AND DELIVERED for (Note 3)

and on behalf of and as lawful

attorney of the Sub-Contractor

under Power of Attorney dated

.............................................................. ..by

(Signature of witness) \_J.4$a~_.;ua~_/-.u~_/-z ~._';-r\./

Notes (1) For use in the case of a soieproprietor or where all partners of a firm execute.
(2) For use in the case of a limited company executing under its common seat.
(3) For use in the case of a firm or a limited company executing through an attorney.

96
SCHEDULES
FORM OF WARRANTY TO BE GIVEN BY
THE NOMINATED SUPPLIER TO
THE EMPLOYER IN CONSIDERATION OF NOMINATION

This DEED OF WARRANTY is granted to ................................................................................ ..

(the Employer) in respect of .......................................................................................................... ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - . - . . . . . . . - . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . . . . . . . . . . . . . . . . - - . - . - . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . o - - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - . . . a . . . . 4 . . . . a . v - . . - . . - . . . . . . . s . . . . . . . . . . . . . . . . ..

(the Contractor) under the terms of the Contract between the Employer and the Contractor

dated ............................................................................................ .. or the letter of acceptance

dated ................................................................................ .. of the Contractors tender dated

.......................................................................................................................................... ..* and

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . - . . . . - - . . . . u - - . . . . . . . . . . . . . . . . .-

the Supply Contract materials, goods, equipment and other things (the Goods) which are
intended to be incorporated in the Main Contract Works under a Nominated Supply Contract
(the Supply Contract).

We ............................................................................................................................................. ..

(the Nominated Supplier) warrant that in consideration of your instructing the Architect to
nominate us as the Nominated Supplier for the Goods:

(a) We will commence and complete the delivery of the Goods and perform all the services
specified, in accordance with the terms of the Supply Contract.

*
deiete as appropriate

97
We will indemnify the Employer against all extra costs that may be incurred by non-
performance of the Supply Contract, by late delivery of the Goods or by any breach of
these warranties.

(C) We have exercised and will exercise all reasonable skill and care in :-

(1) the design of the Goods insofar as the Goods have been or will be designed by us;
and

(2) the selection of materiais, goods and equipment for the Supply Contract insofar as
such materials, goods and equipment have been or will be selected by us.

(Ci) We will comply with and satisfy any performance specification or requirements insofar
as such performance specification or requirements are included or referred to in the
Tender Documents and/or our Tender as part of the description of the Supply Contract.

(9) We will supply the Architect and/or Contractor with such information as either may
reasonably require and at such times that the Contractor shall not be delayed in completing
the Main Contract Works by the Completion Date by our faiiure to supply such information
or by delay on our part, provided always that no liabiiity shall arise in respect of such
deiay on our part until we have accepted the Contractors order in respect of the Supply
Contract.

Nothing in our Tender shall operate to exclude or limit our liability for breach of the
warranties set out herein.

(9) We wiil obtain a surety bond in the form set out in Schedule 1 of the Supply Contract with
the requisite changes in wording to reflect that the bond is to be given by the Nominated
Supplier to the Employer instead of to the Contractor. This bond will be duly executed
under seat by an approved insurance company or bank, acknowledging that the insurance .
company or the bank is iointiy and severally bound with us to the Employer in the sum of
10% of the Supply Contract Sum (rounded up the nearest thousand dollars) against
breach of the warranties hereof.

The words and expressions used in this Deed of Warranty shall have the same meaning as in
the Contract and the Supply Contract.

98
SIGNED, SEALED AND DELIVERED by the (Note 1)

Supptier in the presence of :-

. . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . u . . . . . . . . .-

. . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . u . . . . . . . . . . . . . . . . . . - - . . . . ..

(Name and occupation of witness) ~_r\-/~_z\r /_H.r-/\_

OR

THE COMMON SEAL of the Supptier (Note 2)


was hereunto affixed in the presence of :-

. . . . . . . . . . - . . . . . . . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . - . . . - . -.

(Name and occupation of witness) ~._sa- ~_r a -'%~_r;ag u

OR

SIGNED, SEALED AND DELIVERED for (Note 3)

and on behalf of and as lawful

attorney of the Supplier

under Power of Attorney dated

.............................................................. ..by

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . - . . . . . . . ..

(Signature of witness) ~.a\v/~._\-2a.~_4 r-z_/ y-

Notes (1) For use in the case of a sole proprietor or where ali partners of a rm execute.
(2) For use in the case of a Eimited company executing under its common seal.
(3) For use in the case of a firm or a limited company executing through an attorney.

99
Pubiished by
The Hong Kong Institute of Architects
The Hong Kong Institute of Construction Managers
The Hong Kong institute of Surveyors
Hong Kong SAR, China

Copyright 2006 All rights reserved.


Reproduction or transmission in any form or by any means, electronic or mechanical, is
prohibited unless permitted in writing from the copyright owners, including:
The Hong Kong Institute of Architects
The Hong Kong Institute of Construction Managers
The Hong Kong Institute of Surveyors

First Printed in Hong Kong


July 2006
ISBN 988984025-1

The copyright of this publication is owned by The Hong Kong Institute of Architects, The Hong Kong institute of Construction

Managers and The Hong Kong Institute of Surveyors. The contents do not necessarily reflect the views or opinions of these

copyright owners and no liability is accepted in relation thereto.

Printed by The Green Pagoda Press Limited Tel 2561 1924