29 conditions of contracts pre fidic

Buildings Practice Facilities Plants/PetrochemicalsChapter 29

General conditions of contract form used in past decades Pre FIDIC1 Indicated below are general conditions pertinent to construction contracts, which

had been used to constitute main contracts in Middle East during seventies & eighties

2 Information has been given with explanation pertinent construction respecting various provisions for an understanding

3 Comments to provisions have been types in Italic letters4 Clauses references have not been used, for every contract had varying references5 Descriptions indicated to develop common contractual understanding6 All such provisions have also, been reflected on FIDIC contract forms as well, but

with advanced compositions due to technological advancement7 During those days, when following provisions were used, works were carried out

without used of ITProvisions on Construction Contracts

Definitions & Interpretations1 In Contract (as hereinafter defined) following words & expressions shall have

meanings hereby assigned to them, except where context otherwise requires

a 'Government’ means Government of State of………….. , who has called for Tenders to build or construct, erect or deliver works and who would employ contractor

Comment- 1 Though ‘Government’ word is used in this clause, which shall be applicable only,

on projects controlled by state. 2 For projects to be owned by private sector or individual persons or groups, this

word shall be replaced by ‘Promoter’, which signifies same function constitutionally, according to requirement/implication of Contract Act provisions

a ‘Contractor’ means a person or persons, firm or company, whose tender has been accepted by Government and it includes contractor’s personal representatives, successors and permitted assignees

Comment- 1 ‘Contractor’ term shall be replaced by “Execution Contractor, when contract is

only, meant for construction execution purpose, otherwise EPC engineering, procurement & construction, should it refer to a package deal, wherein engineering concept and design functions should be included within contractor’s responsibility/scope of works.

a ‘Engineer’ means Director of Engineering, Ministry of Public Works, Engineering Services Department, Post Office Box………………or other Engineer appointed from time to time, by Government/Owner and notified in writing to contractor to contractually, act as ‘Engineer’ for purposes of contract in place of Engineer so designated, within contract

Comments- 1 Description of a person/firm appointed by promoter as consultants, group or

architectural Engineering group or project management group shall also, be included

of 54 2012 Int. P Eng Suraj Singh


General conditions of contract form used in past decades Pre FIDIC

a ‘Engineer’s Representative’ means a Resident Engineer, who can also, be an Architect or Assistant of Engineer or a Clerk of Works appointed from time to time, by Government or Engineer to perform duties, set forth and whose Authority shall be notified in writing to contractor by Engineer

Comments-1 Description of Engineer’s representative or Resident Engineer or Resident

Engineer qualified as architect shall for purpose of appointment, include in addition to being appointed by government or by Engineer or by promoter as well

a ‘Works’ means all works to be executed and ‘permanent plant and equipment’ to be installed in accordance with contract

Comments-1 ‘Works’ shall include design and maintenance also, if relevant to nature of

operations and in certain cases, procurement of various machines, plants and equipment

a ‘Contract’ means all documents, such as conditions of Contract Specifications, Drawings, priced Bill of Quantities, Schedule of Rates and Prices (if any), Tender and Contract Agreement

Comments- 1 This definition also, includes this document ‘general conditions of contracts’ in

addition to all other documents

a ‘Contract Price’ means sum named in Tender, subject to such additions thereto or deductions therefrom, as may be made, under provisions hereinafter contained

Comments- 1 ‘Contract price’ shall not be subject to any/some qualification and in case,

certain qualifying condition is added, that shall be considered as a separate clause

a ‘Construction Plant’ means all appliances or things of whatsoever nature, required in or about execution completion or maintenance of works or Temporary Works (as hereinafter defined), but does not include materials or other things intended to form or forming part of permanent work

Comments- 1 These shall include all accessories, items or whatever necessary to keep plant

safety intact for machines or equipment operations, throughout contract duration or currency of contract

a ‘Temporary Works’ means all temporary works of every kind, required in or about execution, completion or maintenance of works

Comments- 1 These works shall be covered, under provisions of statutory requirements,

including complete safety for every operation/activity



General conditions of contract form used in past decades Pre FIDICa “Drawings” means drawings referred to in specification and every modification of

such drawings, approved in writing by Engineer and such other drawings, as may from time to time, be furnished or approved in writing by Engineer

Comments- 1 Drawings shall also, form part of contract documents in totality of meaning of

terms

a “Site” means land and other places on, under, in or through, which works are to be executed or carried out and all other lands or places provided by Government for purposes of contract, together with, such other places as may be specifically, designated in contract as forming part of site

Comments- 1 Access to site must be clear without any/every obstruction

a ‘Approved’ means approved in writing including subsequent written confirmation of previous verbal approval and ‘approval’ means approval in writing including as aforesaid.

Comments- 1 Includes an approval by Engineer or an expert or professional and also, by owner

or government as client

a Words importing singular only, also, include plural and vice versa, where context requires otherwise

Comments- 1 Words importing male only, shall also, include female and vice versa, where

context otherwise requires

a Marginal headings or notes within these Conditions shall not be deemed to be part thereof, or be taken into consideration in interpretation or construction thereof or of contract

Comments- 1 No notes have been included in this reproduction, but if so required, may be

included for easy reflection, subject to acceptance that these if so included, shall not form any contractual status, so far as impact and applicability about this contract document is concerned

Engineer’s representative1 Duties of Engineer’s Representative are to watch and supervise ‘works’ and to

‘test and examine’ every material/s to be used or ‘workmanship’ employed in connection with works.

2 ER shall have no authority to relieve contractor of any/every of its (contractor’s) duties or obligations under contract, nor (except as expressly provided hereunder or elsewhere, in contract to order a work involving delay or an extra payment by Government) to make any/whatever variation of or in works



General conditions of contract form used in past decades Pre FIDIC3 Engineer may from time to time, in writing delegate to Engineer’s Representative

any/certain of powers and authorities vested in Engineer and shall furnish to contractor a copy of all such written delegation of Powers and Authorities.

4 Any/every written instruction or approval given by Engineer’s Representative to contractor, within terms of such delegation (but not otherwise) shall bind Contractor and Government as though, it had been given by Engineer, provided always as follows:

5 Failure of Engineer’s Representative to disapprove a work or materials shall not prejudice power of Engineer, thereafter to disapprove such work or materials and to order pulling down, removal or breaking up thereof

Comments-1 Disapproval of works approved by Resident Engineer shall be on activity

confined basis or if sequential activities are carried out over not approved activity and then Engineer rejects works, that procedure is not legally, meaningful.

2 Immediate condemnation and rejection or disapproval should be given to related activity, just after relevant operation has been carried over and request for inspection has been made or if, work is of such a nature, as sequence of following activities does not apply

If Contractor be dissatisfied by reason of a decision of Engineer’s Representative, it is entitled to refer matter to Engineer, who shall thereupon confirm, reverse or vary such decisionComments-

1 Engineer by virtue of enjoying status of an engineering professional judge contractually/statutorily, as powers vested in by professional Engineering charter and confirmed by statute clarifying definition of a judge, according to provision by law, draws authority to review decision on an operation during supervising and examining of an activity under its charge, since Engineer is contractually, deemed to be appointed an official for design and supervision of job, which by virtue of this appointment shall warrant on engineer revision authority on Resident Engineer’s performance

Assignment and sub letting1 Contractor shall not assign Contract or a part thereof or a benefit or interest

therein or thereunder (otherwise than by a charge in favour of contractor’s bankers of certain monies due or to become due under this contract) without prior written consent of Government

Comments-1 Assignment cannot be affected under statutory provisions without consent,

general or special power of attorney or transferring sales deed, but for some specific purpose or cause, say procurement or appointment.

2 It could be executed under contractual provision as an Engineer/contractor. Engineer in management contract and contractor in construction contract respectively



General conditions of contract form used in past decades Pre FIDIC1 Contractor shall not sublet whole of Works, except where otherwise provided by

Contract. 2 Contractor shall not sub let any/every part of works, without prior written consent

of Engineer (which shall not be unreasonably, withheld) and such consent if given, shall not relieve Contractor from its liability or obligation, under contract and it (contractor) shall be responsible for acts, defaults or neglects of Contractor, its agents, servants or workmen.

3 Provided always that provision of labour on a piecework basis shall not be deemed to be a subletting under this clause

Comments- 1 All proposed subcontractors, their agents, employees or servants etc. shall be

approved. 2 Senior staff shall be approved by Engineer based on qualification and experience

called track record, competency etc.

Extent of contract1 Contract comprises construction, completion and maintenance of works and

except, in so far as Contract otherwise provides, provision of all Labour, Materials, Constructional Plant Temporary Works and everything, whether of a temporary or of permanent nature, required in and for such construction, completion and maintenance, so far as necessity for providing same is specified in or reasonably, to be inferred from Contract

Comments- 1 Design in full or part may be included in scope of contract, if so required to be

carried out by contractor, though it may confine to be select works only, but possibility cannot be ruled out. Training for certain special disciplines and items shall also, be included

Contract documents1 Contract shall be construed and interpreted according to English language

Comments-1 In case format of this contract is translated into any/some other language

followed by document registration in concerned region, construction or interpretation of this contract document shall be construed in that language, according to general clauses act

1 Except if and to extent otherwise provided by contract, provisions of these Conditions of Contract shall prevail over those of any/some other document forming part of Contract.

2 Subject to foregoing several documents forming contract, are to be taken as mutually, explanatory of one another, but in case of ambiguities or discrepancies, same shall be explained & adjusted by Engineer, who has thereupon to issue to Contractor instruction directing in what manner, work is to be carried out.

3 Provided always if in opinion of Engineer, compliance with any/every such instruction/s does not involve contractor in any/every expense, which by reason of any/some such ambiguity or discrepancy, contractor did not and had reason not to



General conditions of contract form used in past decades Pre FIDICanticipate, Engineer shall certify and Government have to pay, such additional sum as may be reasonable to cover such expense

Comments-1 In case of technicalities of project i.e. design and specifications, Contract Form

contents shall not prevail over those, but for contractual and legal matters

1 Drawings remain in sole custody of Engineer, but two copies shall be furnished to contractor free of cost.

2 Contractor shall provide and make at his own expense any/every further copies required by it.

3 At completion of contract, contractor shall return to Engineer, all drawings provided under contract.

4 Contractor shall prepare all further detailed sketches and schedules, which it may require supplementary to drawings supplied by Engineer

5 Contractor shall give adequate notice in writing to Engineer’s Representative for any/every further drawing or specification that may be required for execution of works or otherwise required under contract

6 One copy of drawing furnished to contractor as aforesaid shall be kept by contractor on site and same at all reasonable times be available for inspection and use by Engineer, Engineer’s Representative and by any/every other person authorized by Engineer in writing

Comments-1 Nevertheless, copy right shall continue to be owned by Engineer for all designs,

specifications and all approved documents/and other details, which is also, contractual obligation/s on part of Engineer to issue all schematic and working drawings needed for project as design drawings for execution purpose and should not be exclusively, expected of contractor to notify for requirement, except for certain specific cases, where shop drawing are to be proposed by contractor to Engineer for Engineer’s approval

1 Engineer shall have full Power and Authority to supply to contractor from time to time, during progress of works, such further drawings and instructions, as be necessary for purpose of proper adequate execution and maintenance of works, which contractor should carry out and be bound by same

Comments-1 These drawings and instructions shall be considered regular documents under

contract

General obligations1 Contractor shall when called upon so to do, enter into and execute a contract

agreement (to be prepared at cost of Government) in form annexed with, such modifications as may be necessary

Comments-1 Though formal executed contract agreement is not necessarily, required to be

registered as a document according to Contract Act statutorily, but should be preferred to be entered into, executed by parties to contract and registered as a



General conditions of contract form used in past decades Pre FIDICdocument bearing / including all parties concerned, maintaining Engineers status as solicitor and parties to contract being Owner and Contractor(owner as 1 st

party & contractor as 2nd party)

1 Contractor shall within 28 days from notification of acceptance of its Tender, obtain Guarantee of an Insurance Company or Bank to be “jointly and severally” bound with Contractor to Government in sum Stated in Tender and Appendix thereto, for due performance of Contract under terms of a bond and said Insurance Company or Bank and terms of said Bond be, such as to be approved by Government and obtaining of such Guarantee and cost of Bond to be so entered into, to be at expenses in all respects of Contractor, unless contract otherwise provides

Comments-1 Word “Government” referred to statutory provision of Banking Companies Acts

and Reserve Bank or relevant bank for purpose of “bank surety” or “guarantee”, which should contractor fail to perform contract to full extent required, shall be liable to confiscation or forfeiture to owner/government, as case may be and bank, which provided guarantee/surety for contract performance, shall also, be equally liable under contractual provisions

1 Contractor shall be deemed to have inspected and examined site, its surroundings and to have satisfied itself, before submitting its Tender as to nature of ground and sub soil, hydrological and climatic conditions, form and nature of site, quantities and nature of work materials, necessary for completion of works, means of access to site, accommodation contractor may require and in general, shall be deemed to have itself obtained all necessary information as to ‘risks’ ‘contingencies’ and other circumstances, which may influence or affect its Tender.

Comments-1 Since contract is of itemized lump sum nature, no extra payment can be made due

to any/whatever of discrepancies discoveries among all contractual documents, which are to be interpreted mutually explanatory or site conditions, within normal limits, with exception of natural calamities never recorded in past ‘fifty years or more’ period

1 Contractor shall be deemed to have satisfied itself, before tendering as to correctness and sufficiency of its Tender for Works, of rates and prices Stated in priced Bill of Quantities and Schedules of Rates and Prices (if provided), which rates and prices (except in so far as, it is otherwise hereinafter provided) cover all obligations under contract, all matters and things necessary for proper completion and maintenance of Works.

Comments-1 In general, contractor should use normal prices in relation to items in bill of

quantities as loaded price, if so priced, may not help contractor, in case of omission of those items from contract at a later stage according to owner’s requirement. prices filled in, as included shall not be paid separately, as well




1 If during execution of works contractor encounters physical conditions (other than weather conditions or conditions or conditions due to weather conditions) or artificial obstructions, which conditions or obstructions, could not have been foreseen by an experienced contractor, contractor shall forthwith and before such conditions or obstructions are disturbed, give written notice, thereof to Engineer or Engineer’s Representative and if in opinion of Engineer, such conditions are artificial obstructions, which could not have been reasonably, foreseen by an experienced contractor then Engineer shall certify and Government pay to contractor, such sums as Engineer certified

2 to be proper and reasonable expense, of complying with any/every instructions, which Engineer may have issued to contractor in connection therewith and such other expense (if any/some), which contractor may reasonably, have incurred in carrying out works, which would not have been incurred, had such conditioned or obstructions not been encountered

Comments-1 Due to complexity of this clause, it is very difficult to draw a line or a barrier to

confine to, whether or not, physical condition or artificial obstructions appear to be within construction of a definition of normal occurrence or outstanding occurrence, which shall force owner to pay extras to contractor, due sums certified by Engineer for additional expenses, towards works carried out or to be carried out, for complete contract performance

1 Save in so far as, it is legally or physically impossible, contractor shall execute complete and maintain works in strict accordance, with contract to satisfaction of Engineer and comply with, adhere strictly to Engineer’s Instructions and directions on any/every matter (whether or not mentioned within contract) touching or concerning works.

2 Contractor shall take instructions and directions only, from Engineer or (subject to limitations referred to in clause hereof) from Engineer’s Representative

Comments-1 In case, contractor justifies design part is questionable or uneconomical or not

durable or may cause unnecessary delay on contract execution, due to some of technical provisions, which could either be avoided or altered, shall request Engineer or Resident Engineer, with formal proposal and if its formal proposal found suitable, shall strictly follow approved proposal as Engineer’s instruction, subject to being within cost control and without any/whatever cost impact.

2 This provision applies to construction contract, while on EPIC, it is responsibility of EPIC contractor to propose designs in compliance with FEED & to contract requirements that Engineer & owner would approve if found satisfactory.

3 Engineer’s Instruction is a legal contractual document that involves cost constitution on either side.

4 Prior to issue of EI, Resident Engineer may issue Site Instruction that is technically based & if contractor, so requires about cost constitution, EI would be issued by Engineer.



General conditions of contract form used in past decades Pre FIDIC1 Within 14 days, after acceptance of its tender, contractor shall submit to Engineer

for its approval, a programme schedule, showing order of procedures and method using, which contractor proposes to carry out works and shall whenever required by Engineer or Engineer’s Representative, furnish for information, particulars in writing of contractor’s arrangements for carrying out works/of construction plants and temporary works, which contractor intends to supply, use or construct, as case may be.

2 Submission to & approval by Engineer or Engineer’s Representative of such programme schedule or furnishing of such particulars shall not relieve contractor of any/every of its duties or responsibilities under contract.

Comments-1 And in addition to complete programme, contractor may be asked to submit

programmes for individual units, in case job comprises of those units, for example a number of big buildings, separately existing and also, from time to time, Engineer or Resident Engineer shall require quarterly, monthly or weekly programmes and recovery programmes, as case may be.

2 Programme or schedule shall give information of machinery & workforces intended to be deployed along with Histograms representations.

1 Contractor or its agent shall move job in line with approved programme without any/certain aberration to progress graph & if so effected should be brought back to schedule, if lagging behind schedule by proposing recovery programme.

2 Continuous monitoring of this programme shall be done by contractor as well as, by engineer & current status of schedule would be declared in all progress reviews meetings.

3 In case of progress lagging behind to a status of non feasibility of schedule recovery, additional actions could be effected against contractor in line with contract conditions that includes application of LD, which means Liquidated Damages if so defined or directing works to be done on risk & cost of contractor by contract action to additional mobilization of additional agency.

4 Contractor shall give or provide all necessary superintendence, during execution of works and as long as, thereafter, as Engineer may consider necessary, for proper fulfilling contractor’s obligations under contract.

5 Contractor or a competent and authorized agent or representative approved in writing by Engineer (which approval may any/every time be withdrawn) is to be in attendance constantly, on works and shall give its whole time to superintendence of same.

6 If such approval is withdrawn by Engineer, contractor shall as soon as, practicable (having regard to requirement of replacing agent/representative as hereinafter mentioned), after receiving written notice of such withdrawal, remove agent from site and shall not thereafter, employ him again on site, in any/whatever capacity and replace him by another agent approved by Engineer.

7 Such authorized agent or representative shall receive on behalf of contractor, directions and instructions from Engineer or (subject to limitations of relevant clause hereof) Engineer’s Representative

Comments-



General conditions of contract form used in past decades Pre FIDIC1 It shall be preferable that proposed contractor’s agent be qualified/certified as a

professional Engineer and if not, at least a chartered Engineer or equivalent competent Engineer, with whom Engineer or Resident Engineer should not find any/certain inconvenience in dealing with’ technical and engineering’ matters to follow up.

2 Such highly qualified contractor’s agent shall also, competently and comfortably guide/direct & superintend, appointed assistants.

1 Contractor shall provide and employ on site, in connection with execution and maintenance of works

2 Only, such assistants as are skilled and experienced in their respective callings and such sub agents, foreman and leading hands, as are competent to give proper supervision to work, such personnel are required to supervise and

3 Such skilled and semi skilled and unskilled labour, as is necessary, for proper and timely execution and maintenance of works

4 Engineer shall be at liberty to object to and require contractor to remove forthwith, from works any/every person employed by contractor in or about execution or maintenance of works, who in opinion of Engineer, misconducts or is incompetent or negligent in proper performance of respective duties or whose employment, is otherwise considered by Engineer to be undesirable and such person, so removed from works shall be replaced as soon as, possible by a competent substitute approved by Engineer

5 Agent and a reasonable proportion of delegated technical assistants shall be able to speak local language and English and a reasonable proportion of foreman shall have knowledge of local language and English language.

6 In addition, contractor shall ensure that a reasonable proportion of related foreman have a working knowledge of Local language to enable proper supervision of Local labour.

Comments-1 All contractor’s and subcontractor’s responsible personnel shall be allowed to

work on site subject to CV approvals by Engineer, which may be withdrawn at any/whatever post approval time, in case Engineer or Resident Engineer deems that relevant incumbent is not to defined mark in performance and is incompetent.

2 All personnel shall have local language and English language knowledge and also, regional language knowledge.

1 Contractor shall be responsible for true and proper setting out of works in relation to original points, lines and levels of reference given by Engineer in writing and for correctness (subject as above mentioned) of position, levels, dimensions and alignment of all parts of works and for provision of all necessary instruments, appliances and labour in connection therewith.

2 If at any/whatever time during progress of works, any/some error appears or arises in position, levels, dimensions or alignment of any/whatever part of works, contractor on being required so to do by Engineer or Engineer’s Representative shall at its expense, rectify such error to satisfaction of Engineer or Engineer’s Representative, unless such error is based on incorrect data supplied in writing by



General conditions of contract form used in past decades Pre FIDICEngineer or Engineer’s Representative, in which case, expense of rectifying same shall be borne by Government.

3 Checking of any/every setting out or of any/every line or level by Engineer or Engineer’s Representative shall not in any/whatever way, relieve contractor of its responsibility for correctness thereof and contractor has to carefully, protect and preserve all bench marks, sight rails pegs and other things, used in setting out works.

4 In certain cases, false coordinates are provided on drawings by operators for maintaining secrecy, these should be operated accordingly, but real equivalence has to be defined somewhere for reference of managers as well as, surveyor.

Comments-1 Any erroneous data supplied by Engineer leading to mistakes in designs or

execution, forms part of coordination procedures and shall be Engineer’s responsibility and if Engineer has a contract with owner based on professional fee, liability of that incorrect doing shall go to account of Engineer and not owner, but in case, Engineer being appointed on an employee status, engaged by government or owner, responsibility shall go to owner’s or government account.

2 Setting out of job and excavations are in particular contractor’s agent responsibility in coordination with engineer or Resident Engineer.

3 That is why, agent should ensure that detailed references pertaining all bench marks and lines or references are recorded and preserved.

4 Since GPS is used nowadays for transmitting basic bench marks or coordinates, these sources better should be affected by deploying third party, but responsibility still would be owned by contractor.

1 If at any/sometime during execution of works, Engineer requires contractor to make bore holes or to carry out exploratory excavation, such requirement shall be ordered in writing and be deemed to be an addition ordered under provisions of relevant clause hereof, unless a provisional sum in respect of such anticipated work is included in Bill of Quantities

Comments-1 Contractor should examine preambles specified in bill of quantities document

carefully whether or not, entry column for site investigation bore holes is provided in.

1 Contractor shall be deemed to carry out site exploration and investigation to have satisfied itself regarding site soil characteristics, strata, ground water table and all other matters or things, liable to meet or encounter during excavation.

2 In case site investigation item has not been included within documents, contractor shall investigate soil by drilling or excavating at least two trial holes or pits for Engineer’s inspection, for chemical as well as, other analysis.

3 Report included with contract document is only for guidance purpose to contractor.

4 It may be included with contract conditions that contractor has to prove that excavation formation level gives designed parameters otherwise, further decision by engineer has to be obtained from.



General conditions of contract form used in past decades Pre FIDIC5 Contractor shall, in connection with works provide and maintain at its own cost

all lights, guards, fencing and watching, when and where necessary or required by Engineer or Engineer’s Representative or by any/some duly Constituted Authority for protection of works or for safety and convenience of public or others.

Comments-1 All means of site safety adopted by contractors should be affected or implemented

according to functional requirement and to compliance of safety codes and provisions on laws concerned.

2 There are so many acts covering safety, such as traffic manuals, industrial safety manuals and other conventional or regulated measures, which are supposed to be affected, depending upon site operation requirement.

1 From commencement to completion of works, contractor shall take full responsibility for care thereof and all temporary works and in case any/certain damage loss or injury happens to works or to any/some part thereof or to any/certain temporary works from any/whatever cause whatsoever (save and except excepted risks as defined in sub clause of this clause), shall at its own cost, repair and make good same, so that at completion of works, it should be in good order and condition and in conformity in every respect with requirements of contract and Engineer’s instructions.

2 In event of any/every such damage, loss or injury, happening from any/all of excepted risks, contractor shall if and to extent required, by Engineer and subject always to provisions of relevant clause hereof, repair and make good same, as aforesaid at cost of Government.

3 Contractor shall also, be liable for any/every damage to works occasioned by it in course of any/every operations carried out by it for purpose of complying with its obligations under relevant clause hereof

Comment-1 Contractor should protect all approved works, permanent or temporary and due

diligence has to be applied by site agent to maintain full care of carried out works.

2 It has to be noticed that titles of all contract works shall have to be transferred to owner of works.

1 “Excepted risks” are war hostilities (whether or not, war be declared) invasion act of foreign enemies, rebellion revolution, insurrection or military or usurped power civil war or (otherwise than among contractor’s own employees), riot commotion or disorder or use or occupation by Government of any/some portion of works, in respects of which a certificate of completion has been issued or a cause, solely due to Engineer’s design of works (all of which are herein collectively referred to as “excepted risks”)

Comments-1 These are excepted risks and contractor or Engineer or owner or

anyone/someone else, cannot control. 2 These are unforeseen incidents/mishaps.



General conditions of contract form used in past decades Pre FIDIC1 Without limiting its obligations and responsibilities under relevant clause hereof,

contractor shall insure, in joint names of Government and contractor against, all loss or damage, from whatever cause, arising (other than excepted risks) for which he is responsible under terms of contract and in such manner that Government and contractor are covered, during period of construction of works and are also, covered during period of maintenance, for loss or damage arising from a cause, occurring prior to commencement of period of maintenance and for any/every loss or damage, occasioned by contractor in course of any/every operations carried out by him for purpose of complying with his obligations under clause hereof

2 Works and temporary works to full value of such works, executed from time to time, plus 10% to cover any/every additional expenses of and incidental to demolition, removal, restoration or repair of any/every such loss or damage

3 Material, constructional plant and other things, brought on, to site by contractor to full value of such materials, constructional plants and other things

4 All plant, equipment and materials of any/every kind being provided under separate contract or by nominated subcontractors for incorporation into works from time, such plant equipment and materials are taken over by contractor at port workshop or place of manufacturing, as case may be, until delivery to site and thereafter, in accordance with sub paragraphs above

5 Such insurance shall be affected with an insurer and in terms, approved by Government (which approval shall not be unreasonably withheld) and contractor whenever required, produce to Engineer or Engineer’s Representative, policy or policies of insurance and responsibilities as aforesaid.

6 Nothing in this clause contained shall render contractor liable to insure against necessity for repair or reconstruction of any/every work constructed with materials or workmanship, not in accordance with requirements of contract

Comments-1 Provision of works insurance depends upon relevant statutory provisions if

applicable. 2 Engineer should scrutinize prior to including this clause within contract

conditions.3 Should law permit such insurance to cover for prosecuted works and also,

temporary works in joint names of owner and contractor, there shall be no harm to resort this condition, otherwise inclusion is considered void.

1 Contractor shall (except of and so far as specification provides otherwise) indemnify and keep indemnified Government, against all losses and claims for injuries or damage to any/every person or any/every property, whatsoever (other than surface or other damage to land being or crops on site suffered by tenants or occupiers) which may arise out of or in consequence of construction and maintenance of works and against all claims, demands, proceedings, damages, costs charges and expenses, whatsoever, in respect of or in relation thereto.

2 Provided always that nothing herein contained shall be deemed to render contractor liable for or in respect of or to indemnify Government against any/every compensation or damages for or with respect to permanent use of



General conditions of contract form used in past decades Pre FIDICoccupations of land by works or any/every part, thereof or (save as hereinafter provided) surface or other damage as aforesaid right of Government to construct works or any/every part thereof, on, over, under, in or through any/every land

3 Interference, whether temporary or permanent with any/certain right of light airways or water or other easement or quasi easement, which is unavoidable result of construction of works in accordance with contract

4 Injuries or damage to persons or property, resulting from any/certain act or neglect done or commuted during currency of contract of Government, Government agents servants or other contractors (not being employed by a contractor) or in respect of any/every claims, demands, proceedings, damages, costs charges and expenses in respect, thereof or in relation thereto

5 Provided further that for purposes of this clause expression “site” shall be deemed to be limited to area defined in specification or shown on drawings, in which land and crops be/are disturbed or damaged, as an inevitable consequences of carrying out works

6 Government shall save harmless and indemnify, contractor from and against all claims, demands, proceedings, damages, costs charges and expenses in respect of matter referred to in provision to sub clause of this clause

Comments-1 Contractor has been constituted liable for damage to persons and property,

relevant to contract job, saving certain provisions effecting property involved within contract documents, confined to site description and also, anything caused by officials, other than officials of contractor.

2 Caving of excavation due to improper supporting arrangement, collapse of forms of structural elements due to improper preparatory arrangement, subsistence of adjoining structures due to basement excavations, falls from high altitudes of persons/workers, accidents on site due to improper movements of equipment and machines, all other accidents caused due to lack of safety measures etc. shall amount to statutory liability of contractor

1 Before commencing execution of works, contractor (but without limiting his obligations and responsibilities under clause hereof), shall in joint names of Government and contractor, insure against any/every damage, loss or injury, which may occur to any/every property (including that of Government) or to any/every person (including any/every employee of Government) by or arising out of execution of works or temporary works or in carrying out of contract, otherwise than due to matters referred to in proviso to clause hereof

2 Such insurance shall be effected with an insurer and in terms approved by Government (which approval shall not be unreasonably, withheld) and for at least amount stated in tender and contractor whenever required, produce to Engineer or Engineer’s representative, policies of insurance and receipts for payment of current premiums

Comments-1 Third party insurance is a common provision to generally, all construction

contracts, which Engineer or Resident Engineer, as an official, has a right to



General conditions of contract form used in past decades Pre FIDICexamine relevant documents from time to time, in respect of contract employees including subcontractors’ employees

1 Government shall not be liable for or in respect of any/every damages or compensation payable at Law in respect or in consequence of any/every accident or injury, to any/every workman or other person in employment of contractors or any/every subcontractor, save and except an accident or injury resulting from any/every act of default of Government, Government agents or servants and contractor indemnify and keep indemnified Government against all such damages and compensation (save and except as aforesaid) and against all claims, demands, proceedings, costs charges and expenses, whatsoever in respect, thereof or in relation thereto

Comments-1 Third party insurance is a common provision to generally, all construction

contracts, which Engineer or Resident Engineer, as an official, has a right to examine relevant documents from time to time, in respect of contract employees including subcontractors’ employees

1 Contractor shall insure against, such liability with an insurer, approved by Government (which approval shall not be unreasonably, be withheld) and continue such insurance during whole of time that any/every person/s are employed by him on works and shall when required, produce to Engineer or Engineer’s Representative, such policy of insurance and receipt for payment of current premium.

2 Provided always that in respect of any/all persons employed by any/every subcontractor, contractor’s obligation to insure as aforesaid, under this sub clause shall be satisfied if subcontractor has insured against liability in respect of such persons, in such manner that Government is indemnified under policy, but contractor has to require such subcontractor to produce to Engineer or Engineer’s Representative, when required, such policy of insurance and receipt for payment of current premium

Comments-1 It may or may not be applicable in this country, but on international

consideration, Insurance of all employees in construction industry is a must. 2 Workers are supposed to be employees of contracting company or builder’s

company.

1 If contractor fails to effect and keep in force insurance, referred to in relevant clauses, hereof or any/every other insurance, which contractor may be required to effect under terms of contract then and in any/every such case, Government may effect and keep in force any/every such insurance, pay such premium as may be necessary for meeting that purpose and from time to time, deduct amount so paid by Government as aforesaid, from any/every money/monies due or which may become due to contractor or recover same as a debt due from contractor

2 It is duty of contractor to notify insurer of any/each of insurance referred to in clause hereof any/every matter or event, which by terms of such insurance are



General conditions of contract form used in past decades Pre FIDICrequired to be so notified and contractor shall indemnify/keep indemnified, Government against all losses demands, proceedings, costs charges and expenses, whatsoever arising out of or resulting from any/every default by contractor in complying with requirements of this sub clause, whether as a result of avoidance of such insurance or otherwise

Comments-1 Should application of this clause be ill effected due to non compliance by

contractor and effected by owner / Government, this virtually shall amount to a bad performance record for contractor and may adversely, impact on contractor’s future job prospects.

2 Site agent is responsible for notification to insurers, if so required

1 Contractor shall conform in all respects with provisions of any/respective Statute, Ordinance or Law and Regulations or Bye Laws or any/every local or other duly Constituted Authority, which may be applicable to works or to any/every temporary works and with rules and Regulations of Public Bodies and Companies and keep Government indemnified against all penalties and liability of every kind for breach of any/every such Statute, Ordinance or Law, Regulation or Bye Law

2 Contractor shall give all notices and pay all fees required to be given or paid by any/every national or State Statute, Ordinance or other Law or any/every Regulation or Bye Law of any/every local or other duly Constituted Authority, in relation to execution of works or of any/every temporary works and by Rules and Regulations of all Public Bodies and Companies, whose properties or rights are effected or may be affected in any/certain way by works or any/every temporary works

Comments-1 Since it is fundamental duty of a citizen to abide by Constitution of India &

elsewhere and Institutions of a state, automatically, contractor shall have to abide by and comply with all relevant statutory or legal provisions, applicable to job and shall operate affairs accordingly, as required from time to time for carrying out job activities

1 All fossils, coins, articles of value or antiquity, structures and other remains or things of geological or archaeological interest, discovered on site of works shall as between Government and contractor be deemed to be absolute property of Government, for which contractor has to take reasonable precautions to prevent his workmen or any/every other persons from removing or damaging any/every such article or thing and immediately, upon discovery thereof and before removal, acquaint Engineer’s Representative of such discovery and carry out at expense of Government Engineer’s Order as to disposal of same

Comments-1 This provision is also, general in construction contracts, but in case, if discovery

is of such nature that cannot be removed from site due to integral character, Government shall have to decide according to natural law, whether or not to relocate site compensating contractor accordingly, if so required.



General conditions of contract form used in past decades Pre FIDIC2 It is a seldom & remotely applicable clause for modern contracts as lands

available are generally, known & existence of hidden wealth may not be expected.

1 Contractor shall save harmless and indemnify, Government from and against all claims and proceedings for or on account of infringement of any/every patent, rights, design, trademark or name or other protected rights in respect of any/every constructional plant, machine and against all claims, demands, proceedings, damages, costs, charges and expenses, whatsoever in respect thereof or in relation thereto.

2 Contractor shall pay all tonnage, other royalties, rent and other payments or compensation (if any/some) for getting stone, sand, gravel, clay or other materials equipment required for works or temporary works or any/every of them

Comments-1 This provision is also, general in construction contracts and a reflection of

relevant statutory provisions and requirements. 2 Whatever expenses would be required, contractor must have included within bid

at tendering stage.

1 All operations necessary for execution of works and for construction of any/every temporary works shall so far as, compliance with requirements of contract permits, be carried on, so as not to interface unnecessarily or improperly, with public convenience or access to use and occupation of public or private roads and footpaths or to or of properties, whether in possession of Government in respect of all claims, demands, proceedings, damages, costs charges and expenses, whatsoever arising out of or in relations to any/every such matters, in so far as contractor is responsible thereof.

Comments-1 Inconvenience and nuisance to public movement is not preferred. Contractor

should plan activities in such a way, as far as practicable / feasible in off / average traffic hours or based on traffic police provision of deployment, should make arrangements for traffic diversion to satisfaction of authorities and Engineer.

2 Care should be taken to keep noise levels of pumping of concrete & other operating machines or equipment etc. during night hours, in residential areas within permissible limits.

3 Whatever statutory provisions deemed applicable, care has to be taken accordingly, and should be taken

1 Contractor shall use every reasonable means to prevent any/every of highways or bridges communicating with or on routes to site from being damaged or injured by any/every traffic of contractor or any/each of his subcontractors and on particular select routes, choose and use vehicles, restrict and distribute loads, so that any/every such extraordinary traffic as inevitably, arises from moving of plant and material from and to site, be limited as far as, reasonably possible, so that no unnecessary damage or injury may be occasioned to such highways and bridges



General conditions of contract form used in past decades Pre FIDICComments-

1 This is an important provision, as far as, contractor’s movement of state roads/national highways etc. is concerned.

2 For example, contractor has to bring a crawler tracks mounted machine to site it should not be brought by road surface, but mounted on a tyred trailer.

3 Similarly, contractor should price tender with care in case, such transportation to site is required, as a part of activities within contract scope

1 Should it be found necessary for contractor to move one or more loads of constructional plant machinery or pre constructed units or parts of units of work over part of a highway or bridge, moving whereof, is likely to cause damage any/certain highway or bridge, unless either special protection or strengthening is carried out then contractor shall before moving load on to such, either highway or bridge, unless special protection or strengthening is carried out, give notice to Engineer or Engineer’s Representative of weight and other particulars of load to be moved and his proposals for protecting or strengthening said highway or bridge.

2 Unless within fourteen days of receipt of such notice, Engineer by counter notice directs that such protection or strengthening is unnecessary/inadequate then contractor shall carry out such proposals or any/every modification thereof , which Engineer requires and unless there is an item or are items in Bill of Quantities for pricing by contractor of necessary works for protection or strengthening as aforesaid, costs and expenses thereof, shall be paid by contractor

Comments-1 This is an important provision, as far as contractor’s movement of state roads

/national highways etc. is concerned. 2 For example, contractor has to bring a crawler track mounted machine to site, it

should not be brought by road surface, but mounted on a tyred trailer. 3 Similarly, contractor should price tender with care, in case such transportation to

site is required, as a part of activities in contract scope, to include cost in tender.

1 If during carrying out works or at any/every time, thereafter contractor receives any/certain claims arising out of execution of works in respect of damage or injury to highways or bridges, he shall immediately, report same to Engineer.

2 If and so far as any/every such claim/s or part thereof, is in opinion of Engineer due to any/certain failure on part of contractor to observe and perform his obligations under sub clause of this clause then amount certified by Engineer shall have effect accordingly

3 Where nature of works is such as to require use by contractor of waterborne transport, foregoing provisions of this cause shall be construed as though “highway” included as a lock, dock, sea wall, or other structure related to a waterway and “vehicle” included craft, and shall have effect accordingly.

4 Contractor shall in accordance with requirements of Engineer, afford all reasonable opportunities for carrying out their work to any/every other, duly employed by Government and their workmen, to workmen of Government and of any/every other duly Constituted Authorities, who may be employed in execution



General conditions of contract form used in past decades Pre FIDICon or near site of any/certain work, not included within contract, which Government may enter into in connection with or ancillary to works

Comments-1 This provision requires complete coordination of operations on site with other

contractors, for which contractor’s agent shall be responsible to perform function of liaison with other contractors and Engineer or Resident Engineer from time to time and if required shall also, alter programme networks for official approval

1 Except where, otherwise specified, contractor shall at his own expense, supply and provide all constructional plant, temporary works, labour (including supervision thereof) transport to or from site and in and about works and other things of every kind required for construction, completion and maintenance of works.

Comments-1 With exception of items of machine and plants in contractor’s liability and

expenses, while drawing itemized lump sum contract, though part of contract may be carried out by subcontractor appointed by contractor.

2 All expenses’ responsibilities shall be responded/born by contractor.

1 Contractor shall at all times keep site free from obstructions and at any/every time if directed by Engineer or Engineer’s Representative, store or dispose of any/every constructional plant and surplus materials, clear away and remove from site any/every wreckage or rubbish or temporary works no longer required

2 On completion of works, contractor shall clear away and remove from site all constructional plant, surplus materials, rubbish and temporary works of every kind and leave, whole of site and works clean and in a workmanlike condition to satisfaction of Engineer

Comments-1 Since, site must be open to Engineer, Resident Engineer and owner or government

authorities, it should be kept obstruction free to enter for them. Should requirement for some machine / plants or material or temporary works, has been fulfilled to contract scope, Engineer / Resident Engineer is authorized to order removal of plant or machine or material from site to keep site tidy and on other hand, may hold same, if job needs that further and contractor also, wishes to use on job to meet further needs.

2 While contractor wishes to use that on some other job currently, but should be held back by engineer, but not at cost of contractor’s additional expenses and at physical or practical completion time, contractor must clear, whole site of all materials and machines /plants, excluding those required for maintenance.

Labour1 Contractor shall pay rates of wages and observe hours and conditions of labour

not less than favorable than those established by agreement, between employer or other recognized Authorities and trade unions for similar trades or industries in district, where this contract work is to be carried out.



General conditions of contract form used in past decades Pre FIDIC2 Where there are no such established rates and conditions in trade or industry in

district then established rates and conditions in other districts for similar trades or industries carried on under similar general conditions shall be responsible for observance of terms of this sub clause by any/every subcontractor.

Comments:1 It shall be incumbent upon contractor to pay an amount that is legally, required

to be made as a minimum for any/every construction worker in absence of any/required data.

1 Rates of pay to labour together with working conditions to be observed in terms of paragraph above shall in event of any/certain doubt, be discussed between contractor and appropriate Government department of labour.

Comments:1 Inspections shall be done satisfactorily, so that workers get accommodations as

required under law.

1 Contractor shall keep proper wage/s books, showing wages paid to labourers in and about execution of contract, together with such other records, as are required by any/every Statute, Ordinance, Law, Regulation or Bye Law in force in work country, governing employment of labour and shall be bound, whenever required so to produce such wages book and other records for inspection of any/every person authorized by Engineer or by state official.

Comments:1 Though documents are inspected by concerned officials & Engineer has no much

interest in scrutinizing or assuring legal implementations, but keeping in view labour welfare or avoiding malpractice, these records could be visited anytime/everytime or should there be any/certain complaints of irregularities in making wages.

1 Contractors and subcontractors shall recognize freedom of their labour to be members of registered trade unions, if laws of land recognize trade unions.

Comments:1 In certain nations, such provisions are not allowed to be integrated as a part of

contracts & therefore, in those areas, this clause does not have any/required standing.

1 Contractor shall also, from time to time furnish to Engineer, such further detailed information and evidence, as Engineer may deem necessary, in order to satisfy him that conditions of this clause have been complied with.

Comments:1 Where such requirements are covered by other applicable laws for filing record

returns, this clause may be included for information.

1 Contractor shall use all diligence in arranging for a sufficient and suitable supply at all times throughout contract, of labour and personnel and make his own arrangements for their recruitment.



General conditions of contract form used in past decades Pre FIDIC2 Provided that contractor shall not recruit or attempt to recruit his personnel and

labour from amongst persons in service of Government. 3 Contractor shall at his own expense, unless otherwise specified, pay all costs and

charges for and make all arrangements in connection with recruitment, employment, supervision, transport quarantine, housing, feeding welfare, first aid, hospital services, camp administration, insurance of ‘labour and personnel’ and all other matters, whatsoever related, all of which are subject to Statutes, Ordinances, Laws, Regulations and Bye Laws now in force or which may be laid down by appropriate Authorities from time to time, during continuance or currency of contract.

Comments:1 Complicated clause & therefore, all provisions covering all such costs should be

calculated & included, somewhere either in preambles or in items.

1 Importance of labour and personnel shall be subject to Statutes, Ordinance, Laws, Regulations and Bye Laws in force from time to time and no labour or personnel imported by contractor, without first obtaining necessary permit or permits or passports from appropriate Authorities

2 Contractor shall at his own cost be responsible for provision of transport to and from site at all times and repatriation to places, where they were recruited of all his own and his subcontractors’ personnel and labour employed upon works and be responsible for suitable maintenance of all such persons, who are being or about to be repatriated, until they have left country or district, as case may be and in default, Government may repatriate and maintain such persons and recover costs from contractor

3 Contractor shall at all times, during progress of works take all requisite precautions and use his best endeavor to ensure all his labour and personnel comply with Statutes, Ordinances, Laws, Regulations and Bye Laws in force in district and so to prevent accidents or any/whatever riotous or unlawful behavior by or amongst labourers and other employed on or in connection with works and for preservation of peace and protection of inhabitants, security of all property on or in neighborhood of site, but contractor shall neither be entitled to institute any/some force of police nor shall interfere with Government police, who have free and undisputed access at all times to any/every part of site in execution of their duties.

Comments:1 Contractor would make all supporting arrangements that such unpleasant

incidents leading to unrest do not occur. 2 All such cost incurable on account of such expenses shall be included with bid

cost.

1 Contractor shall not, otherwise than permitted in accordance with Government Regulation, import, sell, give barter or otherwise dispose of any/some alcoholic liquor or drugs or permit or suffer any such importation, sale, gift, barter or disposal by his subcontractors, agents or employees



General conditions of contract form used in past decades Pre FIDIC2 Contractor shall not import, sell, give barter or otherwise dispose of to any/every

person or persons any arms or ammunition of any kind or permit or suffer same as aforesaid. Comments:

1 Though contravening laws is illegal, yet, provisions are made for securing contract conditions, in case of any/certain non law abiding bad part to any/every contract or subcontract.

1 Contractor and his subcontractors, including agents and other personnel shall in all their dealings with their labour, from time to time being employed on or in connection with works, have due regard to all recognized festivals and religious or other customs. Comments:

1 No disparity towards cults should be shown. 2 Humanity should be valued rightly according to international & national norms.

1 Due precautions must be taken care of by contractor and at his own cost, unless otherwise specified in collaboration with and to requirements of local health Authorities, to ensure that medical staff, first aid equipment and stores, sick bay and suitable ambulance service are available at camps or housing and on site at all times throughout period of contract and that suitable arrangements are made for anti Malarial precautions, for prevention of epidemics and for all necessary welfare and hygiene requirements.

Comments:1 Provision for adoptable health facilities would depend on area, where site is

located. 2 Provisions of all health, safety & environment related issues should also, be

covered within such sections to enable inclusion of probable expenditure by bidder.

1 Contractor shall be required to provide, maintain and remove, on completion of contract at his own cost, unless otherwise specified, all camps and housing he thinks necessary, properly to accommodate his personnel and labour together with shelters for his labour, including all necessary water supply for drinking and other purposes, electric light, sanitation, cooking, housing, fencing, fire prevention equipment etc. and all such buildings and all sheds and temporary structures, which contractor may erect for his own purposes, shall in respect of design situation, layout, water supply, washing and cooking facilities, lighting, sanitary and health arrangements and welfare be such, as shall conform with Statutes, Ordinances, Laws, Regulations and Bye Laws in force in districts and with approval of Government Authorities.

2 On completion of contract, site of camps or housing provided by contractor shall be properly, cleared and all temporary rubbish pits or sewage pits filled in to satisfaction of Engineer.

Comments:1 Such clause is applicable mostly to major projects of prestigious industries on

which economy of state depend. 2 A good administrator/engineer is required for contract implementation.




1 Foregoing provisions of this clause shall apply to all labour and personnel, employed by contractor and his subcontractors and all costs charges and expenses, whatsoever that may be incurred by contractor and all risks involved in giving effect to provisions of this clause, including all insurances are deemed to be included and covered in rates or lump sums, inserted by contractor in bills of quantities.

Comments:1 Insurance is issued commonly, applicable to all employees with of course, certain

qualifications acceptable under legal provisions. 2 Certain other risks to life are also, included in addition to medical care of

employees.

1 Without prejudice to generality, of definition of temporary works in clause of these conditions, said definition shall be construed as comprising all works, structures, services, buildings and other facilities required in fulfillment of this clause.

Comments:1 All such works may be required as temporary structures for making permanent

ones or to support preparatory works.2 These provisions include various schemes regarding employment conditions,

rates of pay, wages, right to form or join trade unions, labour supply, their recruitment and permit, their repatriation, preservation of peace on works and in camp, drug and alcoholic controls, arms and ammunition controls, religious and other customs, health, housing, water etc. which are already reflected in labour regulation acts and even if not included, must be included as a matter of common diligence, on part of owner and Engineer.

3 It is not feasible to control practicality, of executions without existence of these.

1 Contractor shall, if required by Engineer, deliver to engineer’s representative or at his office, a return in detail in such form and at such intervals as Engineer may prescribe, showing supervisory staff and numbers of several classes of labour, from time to time employed by contractor on site and such information respecting constructional plant as Engineer’s representative may require

Comments-1 It shall be duty of Engineer or Resident Engineer to check and examine labour

returns to ensure that progress of job is not adversely, effected as well as, no un justice is done to labour and all these dealings should be just and honourable based on equitable acts.

Materials and workmanship1 All materials and workmanship shall be of respective kinds, described in contract

and in accordance with Engineer’s Instructions and shall be subjected, from time to time to such places.

2 Contractor shall provide such assistance, instruments, machines, labour and materials, as are normally required for examining, measuring and testing



General conditions of contract form used in past decades Pre FIDICany/every work and quality, weight or quantity of any/every material used and shall supply samples of materials, before incorporation into works for testing, as may be selected and required by Engineer

3 All samples shall be supplied by contractor at his own cost if supply, thereof is clearly intended by or provided for in specification or bills of quantities, but if not then at cost of Government

4 Cost of making any/every test shall be by contractor if such test is clearly, intended by or provided for, in specification or Bill of Quantities and (in cases only, of a test under load or of a test to ascertain, whether design of any/every finished or partially, finished work is appropriate for purposes, which it was intended to fulfill) is particularized in specifications or bills of quantities in sufficient detail to enable contractor to price or allow for same in his tender

5 If any/every test is ordered by Engineer, which is either not so intended by or provided for or (in cases above mentioned) is not so particularized or though, so intended or provided for is ordered by Engineer to be carried out by an independent person at any/certain place other than site or place of manufacture or fabrication of materials tested then cost of such test shall be borne by contractor if test shows workmanship or materials not to be in accordance with provisions of contract or Engineer’s instructions, but otherwise should be paid by Government

Comments-1 According to practice on building contracts and other contracts, all materials

proposed to be included are submitted to Engineer within 60 days of date of contract commencement.

2 All activities are approved and recorded by Engineer/Resident Engineer. 3 All material tests are carried out, as specified within contract documents and

relevant codes, whichever applicable to contract. 4 Naturally, in lump sum contracts, all costs to be incurred on these operations,

have to be borne by contractor except in cases, where Engineer transgresses specification or codes requirements and tests results comply with contract requirements

1 Engineer and any/every other person authorized by him shall at all times have access to works, to site and to all workshops and places, where work is being prepared or whose materials, manufactured articles or machinery are being obtained for works and contractor shall afford every facility for and every assistance in or in obtaining right to such access

Comments-1 It is very basic condition to keep site be accessible full time during currency of

contract for Engineer and his staff as well as, owner and government, all relevant authorities and this access shall be directly, secured under contractor’s charge, should work fall under general conditions of civil authorities, while in case of army, navy or air force, through defense authorities.

2 This explanation shall also, apply to site offices, works, workshops, stores, manufacturing plants etc.



General conditions of contract form used in past decades Pre FIDIC1 No work shall be covered up or put out of view, without approval of Engineer or

Engineer’s Representative and contractor has to afford full opportunity for Engineer or Engineer’s Representative to examine and measure any/every work, which is about to be covered up or put out of view and to examine foundations, before permanent work is placed thereon.

2 Contractor shall give due notice to Engineer’s Representative, whenever any/every such work or foundation/s is or are ready or about to be ready for examination and Engineer’s Representative, whenever any/every such work or foundations is or are ready or about to be ready for examination, shall without unreasonable delay, unless he considers it unnecessary and advises contractor accordingly, attend for purpose of examining and measuring such work or of examining such foundations

3 Contractor shall uncover any/every part or parts of works or make openings in or through same as Engineer may from time to time direct, reinstate and make good, such part or parts to satisfaction of Engineer.

4 If any/every such part or parts have been covered up or put out of view, after compliance with requirements of sub clause of this clause and are found to be executed in accordance with contract, expenses of uncovering, making openings in or through, reinstating and making good same shall be borne by Government, but in any/every other case, all such expenses are borne by contractor and shall be recoverable from him by Government or may be deducted by Government from any/every monies due or which may become due to contractor

Comments1 Every operation/ activity has to be approved by Engineer or Resident or clerk of

works on as request for inspection (general) or concrete or services as case may be.

2 It is a practice to give 24 hours notice for general items and 48 hours notice for RCC items, but there constitutes a degree of flexibility in interest of works.

3 This condition also, applies to measurements of works done. 4 Even after approval and covering work, Engineer has a right to re examine work

by uncovering and getting that made good, if found unacceptable at cost of contractor, but at cost of owner /government, if found complying with specification

1 Engineer shall during progress of works, have power to order in writing from time to time, removal and proper re execution (notwithstanding any/every previous test thereof or interim payment thereof) of any/every work, which in respect of materials or workmanship, is not in opinion of Engineer in accordance with contract

2 Substitution of proper and suitable materials and removal from site within such time or times, as may be specified in order of any/every materials, which in opinion of Engineer are not in accordance with contract

3 In case of default on part of contractor in carrying out such order, Government shall be entitled to employ and pay other persons, to carry out same and all expenses consequent, thereon or incidental thereto, are borne by contractor and shall be recoverable from him by Government or may be deducted by



General conditions of contract form used in past decades Pre FIDICGovernment from any/every money/monies due or which may become due to contractor

Comments-1 It is expected on part of contractor‘s agent to bring substandard or any/every

defective work to knowledge of Resident Engineer prior to, it is pointed out by Engineer or Resident Engineer, so that an agreement could be reached between contractor and Engineer /Resident Engineer for remedial actions, which style of working shall generate a degree of trust on site, between contractor and Resident Engineer or Engineer.

2 It is better on part of contractor to avoid additional action that Engineer or Resident Engineer may resort to, should contractor does not carry out reparation of defective work or re execution or removing rejected material brought or carrying out any/every other Engineer’s instruction to maintain track record of contractor proven

1 Contractor shall on written order of Engineer, suspend progress of works or any/every part thereof for such time or times in such manner as Engineer may consider necessary and during such suspension, properly protect and secure work, so far as is necessary in opinion of Engineer.

2 Extra cost (if any/every) incurred by contractor in giving effect to Engineer’s instructions, under this clause shall be borne and paid by Government, unless such suspension is

3 otherwise provided for in contract or4 necessary for proper execution of work or5 by reason of weather conditions or conditions due to weather conditions, affecting

safety or quality of work6 by some default on part of contractor or7 necessary for safety of work or any/every part thereof8 Provided that contractor shall not be entitled to recover any/every such extra cost

unless, he gives notice in writing of his intention to claim to Engineer within 14 days of Engineer’s order.

9 Engineer shall settle and determine extra payment to be made to contractor in respect of such claim as Engineer considers fair and reasonable

10 If on written order of Engineer (in this sub clause referred to as “Suspension Order”) progress of works or any/every part, thereof is suspended for a period or consecutive period, which lasted in all to 90 days or if Engineer having previously, issued a Suspension Order for a period, which lasted less than 90 days, issues within less than 90 days, from expiration of that period of suspension, a further suspension order either in respect of whole of works or (where previous suspension order has effected on a part) affecting or including that part then and in any/every such case, contractor may serve a written notice on Engineer requiring permission within 28 days, from receipt thereof, to proceed with works or that part thereof, in regard to which, progress is suspended and if such permission is not granted within that time, contractor by a further written notice so served may (but is not bound to) elect to treat suspension, where it affects part only of works as an omission of such part under relevant clause hereof or, where



General conditions of contract form used in past decades Pre FIDICit effects part only of works, as an omission of such part under relevant clause hereof, where it effects whole works, as an abandonment of contract by Government

Comments-1 Suspension of works by Engineer and follow up sequence by contractor is very

important and significant exercise to be carried out, as it may constitute ground for introduction and references to arbitration course of actions for determination pertaining to claims and counterclaims.

2 Without keeping proper records, it shall be difficult to establish any/every Arbitration case.

Commencement time and delays1 Contractor shall commence works on site, within period named in tender, after

receipt by him of an order in writing to this effect from Engineer and proceed with same, with due expedition and without delay, except as may be expressly, sanctioned or ordered by Engineer or be wholly, beyond contractor’s control

Comments-1 This provision implies communication to statutory authorities, relevant to job and

obtaining record drawings etc. for purpose of excavations. 2 All other operations of job commencement have been covered implicitly in this

condition

1 Save in so far as contract may prescribe, extent of portions of site, of which contractor is to be given possession from time to time and order, in which portions are made available to him and subject to any/every requirement in contract as to order, in which works are to be executed, Government with Engineer’s written order to commence works shall give to contractor possession of so much of site, as may be required to enable contractor to commence and proceed with construction of works, in accordance with programme referred to in clause hereof and otherwise, in accordance with such reasonable proposals of contractor, as he by notice in writing to Engineer makes from time to time as works proceed, have to give to contractor possession of such further portions of sites, as may be required to enable contractor to proceed with construction of works with due dispatch in accordance with said programme or proposals (as case may be).

2 If contractor suffers delay or incurs expense from failure on part of Government to give possession in accordance with terms of this clause, Engineer shall grant an extension of time for completion of works and certify, such sum as in his opinion, be fair to cover expenses incurred, which sum has to be paid by Government

3 Contractor shall bear all expenses and charges for special or temporary ‘way leaves’ required by him, in connection with access to site.

4 Contractor shall also, provide at his own cost, any additional accommodation outside site, required by him for purposes of works

Comments-1 Generally, site is handed over to contractor at date of commencement, but due to

certain practical restriction of some kind, which may be on a very big size job,



General conditions of contract form used in past decades Pre FIDICwhere other agencies too are involved, site in parts could be handed over and programme be modified accordingly.

2 ‘Way leave’ form is an important condition/requirement, which contractor must take care of, while starting any/every new part or building on integrated project e.g. distance of building setting out may be a minimum requirement from an electric pole or any/every other reference

1 Subject to any/every requirement in specification, as to completion of any/every portion of works before completion of whole, whole of works shall be completed within time stated in tender, calculated from last day of period named in tender, as that within which works are to be commenced or such extended time, as may be allowed under relevant clause hereof

Comments-1 Date as agreed with Engineer or as prescribed in contract, shall be date of

commencement and project should be completed on date, which falls on day according to Georgian calendar, after lapse of contract duration, including extension of time.

2 If there is an isolated part of job, which is separately handed over due to some employer’s required priority maintenance of that part shall start on date of practical completion.

3 Maintenance of whole job shall start on date of actual handover of whole job. In case, separate considered part is maintained to meet contract requirement, final completion could be considered accordingly.

1 Should amount of extra or additional work of any/every kind or other special circumstances of any/every kind whatsoever, which may occur be/are, as such fair to entitle contractor to an extension of time for completion of work, Engineer shall determine amount of such extension.

2 Provided that Engineer is not bound to take into account any/every extra or additional work or other special circumstances, unless contractor within 28 days, after such work has been commenced or such circumstances have arisen or as soon, thereafter as is practicable, delivered to Engineer’s Representative full and detailed particulars of any/every claim to required extension of time to which, he may consider himself entitled in order that such claim may be investigated at time.

Comments-1 Engineer has authority to consider additional days to be granted to contractor,

based on various circumstances and reasons, but Engineer is not bound should contractor fail to notify to Engineer, within 28 days of occurrence of facts of such circumstances.

2 Engineer can ask contractor for providing complete details

1 Subject to any/every provision to contrary contained in contract, none of permanent works shall save as hereinafter provided, be carried on during night or on holidays, without permission in writing of Engineer’s Representative, save when work is unavoidable or absolutely, necessary for saving of life or property



General conditions of contract form used in past decades Pre FIDICor for safety of works, in which case, contractor has to immediately, advise Engineer’s Representative.

2 Provided always that provisions of this clause shall not be applicable in case of any/every work, which it is customary to carry out by rotary or double shifts

Comments-1 No night work or weekly holiday/s work is allowed for permanent operations,

except in emergencies or if that is routine depending on nature of job. 2 If contractor wishes to carry out on such days, prior approval in writing of

Engineer’s representative shall be obtained. 3 Concrete pouring activity is normally carried out in off working hours due to

temperatures controls as well as, delivery problems.

1 Whole required materials, plant and labour to be provided by contractor under clause hereof, mode manner and speed of execution and maintenance of works are to be of a kind and conducted in a manner to satisfaction of Engineer.

2 Should rate of progress of works or any/every part thereof, be at any/certain time in opinion of Engineer, too slow to ensure completion of works by prescribed time or extended time for completion, Engineer shall so notify, contractor in writing and contractor thereupon, must take such steps, as contractor may think necessary and Engineer may approve to expedite progress, so as to complete works by prescribed time or extended time for completion.

3 If work is not being carried out by ‘day and night’ and contractor requests permission to work by night as well as, by day then if Engineer grants such permission, contractor shall not be entitled to any/every additional payment for so doing, but if such permission is refused and there is no equivalent practicable method for expediting progress of work, time for completion shall be extended by such period, as is solely attributable to such refusal.

4 All works at night shall be carried out, without unreasonable noise and disturbance.

5 Contractor shall indemnify Government from and against any/every liability for damages, on account of noise or other disturbances created, while or in carrying out work and from and against all claims, demands, proceedings, costs charges and expenses, whatsoever in regard or in relation to such liability

Comments-1 Engineer has a right to examine contractor’s progress and increase of a lag

behind schedule. 2 Contractor’s response to recovery of lost time must come, either as a measure to

mobilize additional resources or to augment working time hours. 3 If work can be advanced by increasing working hours and Engineer does not

grant permission, contractor shall get a contractual right to apply for claims on extension of time.

4 If Engineer allows for additional working hours, contractor shall not be entitled for extension of time claim on this basis

1 If contractor fails to complete works within time prescribed by clause hereof or extended time then contractor shall pay to Government, sum Stated in tender as



General conditions of contract form used in past decades Pre FIDICliquidated damages, for such default and not as a penalty for every day or part of a day, which days elapse between time prescribed by clause hereof or extended time, as case may be and date of completion of works.

2 Government may without prejudice to any/every other method of recovery, deduct amount of such damages from any/every monies in hands due or which may become due to contractor.

3 Payment or deduction of such damages shall not relieve contractor from his obligation to complete works or from any/every other of his obligations and liabilities under contract

4 If before completion of works, any/certain part of works has been certified by Engineer as completed, pursuant to clause hereof and occupied or used by Government, liquidated damages for delay shall for any/every period of delay, after such certification be reduced in proportion, which value of part so certified, bears to value of whole of works

Comments-1 Due to delay on part of contractor, contractor shall pay to owner/government

liquidated damages mentioned in contract in form of sum, which amount should be based on actual defined damages and not just provided to be recovered from contractor’s valuation as recoveries.

2 Amount of liquidated damages shall not apply on part job already handed over, prior to completion of whole contract

1 As soon as, in opinion of Engineer, works have been substantially, completed and satisfactorily, passed any/every final test, which may be prescribed by contract, Engineer shall on receiving a written undertaking by contractor to finish any/every outstanding work during period of maintenance, issue a certificate of completion in respect of works.

2 Period of maintenance of works shall commence from date of such certificate. 3 Provided that Engineer may give such a certificate with respect to any/every part

of works, before completion of whole of works and shall upon, written application of contractor, give such certificate with respect to any/every substantial part of works, which has been both completed to satisfaction of Engineer and occupied or used by Government and when any/every such certificate is given in respect of any/every part of works, such part shall be considered as completed and period of maintenance of such part shall commence from date of such certificate.

4 Provided also, that a certificate of completion given in accordance with foregoing provisions of any/every part of works occupied and used as aforesaid shall not be deemed to certify completion of any ground or surfaces, requiring reinstatement, unless such certificate expressly so states

Comments-1 Having tested and commissioned whole of works as required by contract

specifications, Engineer shall issue a certificate for Practical Completion or Mechanical Completion i.e. Certificate of completion and maintenance period of contract shall commence from day of issue of certificate date.

2 Some minor snags may also, be covered to be rectified within period of maintenance and a description to that may be given for these items.



General conditions of contract form used in past decades Pre FIDIC3 In case, some part of job has already been taken over by owner/government prior

to whole of job, a reference to that shall also, be mentioned in completion certificate.

4 Part completion certificate shall not be considered as a completion of surrounding ground and also, surfaces requiring re-installment

Maintenance and defects1 In these conditions expression "period of maintenance” contractually, means

period of maintenance named in tender, calculated from date of completion of works, certified by Engineer in accordance with clause hereof or in event of more than one certificate having been issued by Engineer under said clause, from respective dates, so certified and in relation to period of maintenance expression “works” shall be construed accordingly

2 To intent that works at or as soon as practicable, after expiration of period of maintenance, be delivered up to Government in as good and perfect a condition (fair wear and tear excepted) to satisfaction of Engineer as that in which they were at commencement of period of maintenance.

3 Contractor shall execute all such works of repair, amendment, reconstruction, rectification and making good of all defects during period of maintenance or within fourteen days, after its expiration as a result of an inspection made by or on behalf of Engineer prior to its expiration

4 All such works shall be carried out by contractor at his own expense if necessity thereof in opinion of Engineer, is due to use of materials or workmanship, not in accordance with contract or to neglect or failure on part of contractor, to comply with any/every obligation expressed or implied on contractor’s part under contract.

5 If in opinion of Engineer, such necessity is due to any/every other cause, value of such work shall be ascertained and paid for, as if it were additional work

6 If contractor fails to do any/every work as aforesaid required by Engineer, Government shall be entitled to carry out such work by its own workmen or by other contractors and if such work is work, which contractor should have carried out at contractor’s own cost as well as, entitled to recover from contractor cost, thereof or may deduct same from any/every monies due or that would become due to contractor

Comments-1 Generally, a 400 days or as required, period of maintenance should be provided

within appendix, to start from practical completion date and continue to end of maintenance period date, when final completion is to be decided by Engineer.

2 Contractor should return works in due specified form with acceptable wear and tear and every work to be inspected and clearance from Engineer be obtained.

3 If Engineer points out to any/every repair or rectification, which lies in contractor’s scope, contractor should do that and if, rectification does not form part of contractor’s scope and Engineer orders that, extra payment be made to contractor.



General conditions of contract form used in past decades Pre FIDIC4 Should contractor fail to carry out such rectification, as pointed out by Engineer

in prescribed time, owner/government shall get it done at contractor’s cost, recoverable from contractor’s monies.

5 Contractor shall search any/every defects or conduct investigations as ordered by Engineer and rectify all items accordingly, should that form part of contractor’s scope in job, otherwise additional payment should be made to contractor

1 Contractor shall if required by Engineer in writing, search for cause of any/every defect, imperfection or fault under directions of Engineer.

2 Unless such defects imperfection or fault be one, for which contractor is liable under contract, cost of work carried out by contractor in searching as aforesaid shall be borne by Government.

3 But if such defect, imperfection or fault be one, for which contractor is liable as aforesaid, cost of work carried out in searching as aforesaid shall be borne by contractor and he shall in such case repair, rectify and make good such defect, imperfection or fault at his own expense in accordance with provisions of clause hereof

Comments-1 Refer to foregoing explanation in comments

Alterations additions and omissions1 Engineer shall make any/every variation of form, quality of works or any/every

part thereof, that may in his opinion be necessary and for that purpose or if, for any/every other reason, it shall in his opinion be desirable, engineer use contractual power to order contractor to do and contractor shall do any/every compliance of following

2 increase or decrease quantity of any/every work included in contract 3 omit any/every such work4 change character or quality or kind of any/every such work5 change levels, lines, positions and dimensions of any/every part of works and6 execute additional work of any/every kind necessary for completion of works7 And, no such variation shall in any/every way vitiate or invalidate contract, but

value (if any/whatever) of all such variations is to be taken into account in ascertaining amount of contract price

8 No such variation shall be made by contractor, without an order in writing of Engineer.

9 Provided also, if for any/every reason Engineer considers it desirable to give any/every such order verbally, contractor shall comply with such order and any/every confirmation in writing of such verbal order given by Engineer, whether before or after carrying out of order is to be deemed to be an order in writing within meaning of this clause.

10 Provided further if contractor confirms in writing to Engineer any/every verbal order of Engineer and such confirmation is not contradicted in writing by Engineer, it shall be deemed to be an order in writing by Engineer



General conditions of contract form used in past decades Pre FIDIC11 Engineer shall determine amount (if any/whatever) which in his opinion should be

added to or deducted from sum named in tender in respect of any/every extra or additional work done or work omitted by his order.

12 All such work shall be valued at rates set out in contract if in opinion of Engineer same can be applicable.

13 If contract does not contain any/every rates applicable to extra or additional work then suitable prices shall be agreed upon between Engineer and contractor.

14 In event of disagreement, Engineer shall fix such prices as in his opinion be reasonable and proper.

15 Provided that if nature or amount of any/every omission or addition, relative to nature or amount of whole of contract work or to any/every part thereof, be such that in opinion of Engineer, rate or price contained in contract for any/every item of works is by reason of such omission or addition, rendered unreasonable or inapplicable then a suitable rate of price shall be agreed upon between Engineer and contractor.

16 In event of disagreement, Engineer has to fix such other rate or price as in his opinion be reasonable and proper, having regard to circumstances.

17 Provided also, that no such increase of contract price under sub clause of this clause or variation of rate or price under sub clause of this clause shall be made, unless as soon after date of order as, is practicable and in case of extra or additional work, before commencement of work as soon thereafter, as is practicable, notice has been given in writing by contractor to Engineer of his intention to claim extra payment or a varied rate or by Engineer to contractor of his intention to vary a rate or price as case may be.

18 A variation order may provide that work done pursuant thereto, shall be executed as day work.

19 Contractor shall then be paid for such work under conditions set out in day work schedule included in Bill of Quantities and at rates/prices affixed thereto by him in his tender

Comments-1 On lump sum contracts, where contractor has to produce a functional job

irrespective of, whether bill of quantities or specification contradict. 2 To achieve goal of contract requirement of functional production, Engineer is

legally, authorized to order variations to design and alter quantities, for which Engineer shall issue site instruction or Engineer’s instruction.

3 Contractor has a right to raise claim, for which proper notification shall be given from either party.

4 Prices are to be fixed for added items, in case bill of quantities does not permit that as a reasonable price. In case of unacceptable prices, day work should be resorted to.

5 Claims details or at least intention with approximate magnitude must be included within monthly valuation by quantity surveyor in agreement with site agent

Claims1 Contractor shall send to Engineer, once in every month an account, giving

particulars (as full and as detailed as possible) pertinent all claims for any/every



General conditions of contract form used in past decades Pre FIDICadditional expense, to which contractor may consider himself entitled, which he has executed during preceding month and no claim for payment for any/every such work shall be considered, which has not been included in such particulars.

2 Provided always that Engineer shall be entitled to authorize payment to be made for any/every such work, notwithstanding contractor’s failure to comply with this condition, if contractor has at earliest practicable opportunity, notified Engineer that he intends to make a claim for such work.

Comments-1 On lump sum contracts, where contractor has to produce a functional job

irrespective of, whether bill of quantities or specification contradictions. 2 To achieve goal of contract requirement of functional production, Engineer is

legally, authorized to order variations, do design and alter quantities for Engineer shall issue site instruction or Engineer’s instruction.

3 Contractor has a right to raise claim and for that proper notification shall be given from either party.

4 Prices are to be fixed for added items, in case bill of quantities does not permit that as a reasonable price.

5 In case of unacceptable prices, day work should be resorted to. claims details or at least intention with approximate magnitude must be included within month valuation by quantity surveyor in agreement with site agent

Plant temporary works and materials1 For purpose of this clause expression “Constructional Plant” shall be deemed to

exclude vehicles engaged transporting any/every plant equipment or materials to or from site

2 Expression “ Essential Hired Plant” shall mean all constructional Plant Temporary works and materials for temporary works, withdrawal of which in event of a forfeiture under clause hereof, might (having regard to methods of construction employed prior to failure) endanger safety of, stability of or result in serious disturbance to execution of any/every part of works and which are held by contractor under certain agreement for hire thereof

3 Expression “Hired Plant” shall mean constructional plant temporary works and materials for temporary works (other than essential hired plant) held by contractor under certain agreement for hired thereof

4 Expression “agreement for hire” shall be deemed, not to include an agreement for hire purchase

5 Expression “Hire purchase plant” shall mean any/every constructional plant temporary works and materials for temporary works, held by contractor under an agreement for hire purchase thereof

6 All constructional plant temporary works and materials owned by contractor or by any/every company in which contractor has a controlling interest shall when brought on to site (or in case of hire purchase plant on site on its becoming property of contractor) immediately, be deemed to become property of Government.

7 With a view to securing, in event of a forfeiture under clause hereof, continued availability for purpose of executing works of any/every essential hired plant or



General conditions of contract form used in past decades Pre FIDIChired plant, contractor shall not bring onsite any/every essential hired plant or hired plant, unless agreement for hire thereof, contains a provision that owner thereof, shall on request in writing made by Government within seven days, after date on, which any/every such forfeiture has become effective and Government undertaking to pay all hire charges in respect thereon from such date, hire such essential hired plant or hired plant to Government on same terms in all respects as was hired to contractor, save that Government shall be entitled to permit use thereof, by any/every other contractor employed by him for purpose of completing works under terms of said clause

8 In event of Government entering into any/every agreement for hire of essential hired plant or hired plant pursuant to provisions of sub clause of this clause, all sums properly paid by Government under provisions of any/every such agreement and all expenses incurred by him (including stamp duties) in entering into such agreement shall be deemed for purpose of clause hereof to be part of cost of completing works.

9 Contractor shall upon request by Engineer at any/every time in relation to any/every item of essential hired plant or hired plant forthwith, notify to Engineer in writing name and address of owner thereof and shall certify that agreement for hire thereof, contains a provision in accordance with requirements of sub clause of this clause.

10 Contractor shall also, upon request as aforesaid, give a like notification (but without certificate) in regard to any/every hire purchase plant.

11 Contractor shall also, upon request made by Engineer, provide Engineer with a true copy of such agreements

12 Government shall in order to avoid seizure by owner of any/every essential hired plant or hire purchase plant, be entitled to pay to such owner amount of any/every overdue installment or other sum payable under any/every agreement relating to such plant and in event of his doing so, any/every amount so paid by him shall be a debt due from contractor to Government and may be deducted by Government from any/every monies due or that may become due to contractor, under contract or may be recovered by Government from contractor at Law.

13 No constructional plant temporary works or materials or any/every part thereof shall be removed from site without written consent of Engineer, which consent is not be unreasonably, withheld where same is no longer immediately, required for purposes of completion of works, but Government shall permit contractor exclusive use of all such constructional plants temporary works and materials in and for completion of works, until occurrence of any/every event which gives Government right to exclude contractor from site and proceed with completion of works

14 Upon removal of any/every such constructional plant temporary works or materials as have been deemed to become property of Government under sub clause of this clause with consent as aforesaid, property therein shall re vest in contractor and upon completion of works, property in remainder of such constructional plant temporary works and materials as aforesaid shall subject to provision of clause hereof re vest in contractor, who shall remove same together with any/every essential hired plant, hired plant and hire purchase plant.



General conditions of contract form used in past decades Pre FIDIC15 If contractor fails to remove any/every constructional plant temporary works or

materials as aforesaid or any/every essential hired plant hired plant or hire purchase plant, within such reasonable time, after completion of works as may be allowed by Engineer then Government may sell any/every such constructional plant temporary works and materials as aforesaid and return at contractor’s expense to person firm or company, from whom any/every essential hired plant, hired plant or hire purchase plant were sourced

16 And after deducting from proceeds of sale, costs charges and expenses of and in connection with such sale and of and in connection with return as aforesaid shall pay balance (if any/whatever) to contractor, but to extent that proceeds of any/every sale are insufficient to meet all such costs charges and expenses, excess shall be a debt due from contractor to Government and shall be deductible or recoverable by Government accordingly as aforesaid

17 Government shall not at any time be liable for loss or injury to any of constructional plant temporary works or materials, which have become property of Government under sub clause of this clause, save as mentioned in clauses hereof

18 Contractor shall when entering into any/every subcontract for execution of any/every part of works, incorporate in such subcontract (by reference or otherwise) provisions of this clause in relation to constructional plants temporary works and materials essential hired plant, hired plant and hired purchase plant brought onto site by subcontractor

Comments-1 Plants are brought to site by contractor either owned by himself or essential hired

plant, hired plant or hire purchase plant, which having arrived on to site for inclusion in works become part of work and should be exclusively, used for job activities whenever required, but removable temporarily subject to Engineer’s permission.

2 From whatever source, these plants temporary works are procured, must incorporate condition in hired plant agreement that hire deal is transferable on owner/ government on same terms and conditions in case contractor is excluded from job due to whatever reason and government/owner shall act accordingly, as if that were a contractor or permit a substitute contractor.

3 Contractor is not allowed to bring these plants to site, in case deal of hired plants does not include this condition and Engineer is legal and contractual authority to conduct this examination.

4 In case, this clause is operated fully, contractor shall be liable for all consequences, whatsoever by application of this clause and this clause does not imply material approval or rejection

1 Operation of clause hereof shall not be deemed to imply any/every approval by Engineer of materials or other matters referred to therein nor shall it prevent rejection of any/every such materials at anytime/ by Engineer

Comments- 1 As in above clause

Measurements



General conditions of contract form used in past decades Pre FIDIC1 Except as provided for under clause hereof, quantities set out in bills of quantities

are taken to be actual and correct quantities of works to be executed by contractor in fulfillment of his obligations under contract.

2 Any error in or omission from Bill of Quantities shall not in any way, vitiate or invalidate contract nor be grounds for adjusting contract price

Comments-1 On lump sum itemized contracts, there is no major requirement to take actual

measurements of works carried out and bill of quantities generally, forms basis of valuations, but in case of variations, measurements are to be taken jointly by Engineer and contractor, for which Engineer notifies to contractor to either to attend personally or depute some agent to exercise measurements take off, failing which Engineer records quantities himself and that is considered/accepted final.

2 Engineer also, records works done monthly and in whatever forms, drawings are recorded and a 14 day/s notice is given to contractor, which contractor must examine and sign if agreed and if not, let that go for Engineer’s decision, in case of disagreement if contractor notifies.

1 Engineer shall ascertain by ad-measurement or other means, value in accordance with contract work done or omitted as provided for under clause hereof.

2 He shall when he requires any/every part or parts of works to be measured, give notice to contractor’s authorized agent or representative, who has to forthwith attend or send a qualified agent to assist Engineer or Engineer’s Representative in making such measurement and furnish all particulars required by either of them.

3 Should contractor not attend or neglect or omit to send such agent then measurement made by Engineer or approved by him shall be taken to be correct measurement of work.

4 For purpose of measuring such permanent work as is to be measured by records and drawings, Engineer’s Representative shall prepare records and drawings, month by month of such works and contractor as and when, called upon to do so in writing, has to within 14 days, attend to examine and agree such records and drawings with Engineer’s Representative, sign same when so agreed, and if contractor does not so attend to examine and agree any such records and drawings, they shall be taken to be correct.

5 If after examination of such records and drawings, contractor does not agree same or does not sign same as agreed, they shall nevertheless be taken to be correct, unless contractor within 14 days of such examination lodges with Engineer’s Representative for decision by Engineer, notice in writing of respects in which, such records and drawings are claimed by him to be correct

6 In case of foundation works or where Engineer considers it necessary, contractor shall before surface of any/every portion of ground is interfered with or work is put in hand in conjunction with Engineer, shall examine site, plans and sections of works and take such additional levels or other measurements, as may be necessary and agree as to surface levels etc. with Engineer and form basis of measurement of permanent works

Comments-1 As in above clause




1 A bills of quantities have been prepared generally, in accordance with standard method of measurement work dated 28 Feb 1973 by director of Engineering ministry of public works State of ……… but nothing contained in Bill of Quantities shall override, modify or affect in any way whatsoever, application of interpretation of that, which is contained in these conditions

2 Works shall be measured net, notwithstanding any/every general or local custom except, where otherwise specifically, described or prescribed in contract

3 Note: delete either sub clause as case may be4 In respect of all day work, contractor shall furnish to Engineer such receipts or

other vouchers, as may be necessary to prove amounts paid and before ordering materials submit to Engineer quotations for same for his approval and during continuance of such work, deliver each day to Engineer’s Representative an extract list in duplicate of names, occupation and time of all workman employed on such work as well as, a statement also, in duplicate showing description and quantity of all materials and plants used thereon or thereof (other than plant, which is included in percentage addition in accordance with schedule hereinbefore referred to).

5 One copy of each list and statement shall if correct or when agreed, be signed by Engineer’s Representative and returned to contractor.

6 At end of each month, contractor shall deliver to Engineer’s Representative, a priced Statement of labour material and plant (except as aforesaid) used

7 Contractor shall not be entitled to any payment, unless all Lists and Statements referred to in sub clause have been fully and punctually, rendered.

8 Provided always that if Engineer considers that for any/whatever reason, sending of such List or Statement by contractor in accordance with foregoing provision was impracticable, he shall nevertheless, be entitled to authorize payment for such work either as day work (on being satisfied, as to time employed and plant and materials used on such work) or at such value, as shall in his opinion be fair and reasonable.

Comments-1 Exercise of day work records is carried out by a responsible person as all details

are to be submitted to Engineer/Resident Engineer and contractor is contractually, bound to provide all details as asked for by Engineer.

2 Contractor should also, submit a statement every month recording prices of materials, plants and labour paid by him, which may form a basis for solving many disputes arising out of contractor’s valuations

Provisional and prime cost sums1 Every provisional sum (other than P C prices under sub clause of this clause

including sums arrived at by extending provisional quantities at tendered rates, set out in Bill of Quantities (whether for work to be executed by contractor, which has not been specified in detail, when contract is entered into or for work to be executed by a nominated subcontractor as herein after defined) together with charges and profits (if any/some), which contractor added to such sums, shall be deducted from contract price and in lieu thereof, there shall be added to contract



General conditions of contract form used in past decades Pre FIDICprice, where work to which provisional sum relates, has been ordered by Engineer and executed by contractor, value of work so executed valued in accordance with clause hereof and where work to which provisional sum relates, has been ordered by Engineer and executed by a nominated subcontractor (as hereinafter defined), sum or sums actually paid (subject however to provisions of sub clause hereof by contractor to such subcontractor on direction of Engineer and (if contractor added to provisional sum, to which work relates any/every sums in respect of charges and profits) a sum in same proportion to sum, so actually paid as said charges and profits, bear to said provisional sum

2 Every sum in Bill of Quantities, which contains (either as whole or part of sum), a prime cost (PC) price for goods or materials to be supplied for or for incorporation into works shall be varied by substitutions for prime cost price of actual price (subject however to provisions of sub clause hereof) paid by contractor for goods or materials on direction of Engineer and contract price shall be increased or decreased (as case may be) by amount, by which sum in Bill of Quantities is increased or decreased by such substitution.

3 No variation shall be made to or in respect of any sum added for labourers to prime cost price, on account of said actual price being greater or less than prime cost concerned or (if none), as is inserted by contractor in forms of tender as percentage for adjustment of prime cost sums

4 All sums, set out in Bill of Quantities, which are Stated to be provisional or for contingencies, shall be used only, at direction and discretion of Engineer and if not used, either wholly or in part, shall as to amount not used be deducted from contract price

5 Contractor shall when required by Engineer, produce all quotations, invoices, vouchers and accounts or receipts, in connection with expenditure in respect of provisional or prime cost items

6 In so far as, any/every sum is paid by contractor to a nominated subcontractor (as hereinafter defined), by Engineer under sub clause of this clause, before contractor has received payment of that sum from employer, there shall for purpose of adjusting contract price under sub clauses hereof (as case may be), be added to actual sum paid by contractor as aforesaid, 2.5 percent of amount of such actual payment and benefit of any/every cash discount allowed in respect thereof, be passed to Government

7 In event of a nominated subcontractor (as hereinafter defined) having undertaken towards contractor, in respect of work executed or goods or materials supplied by nominated subcontractor any/every continuing obligation, extending for a period exceeding that of period of maintenance under this contract, contractor shall at any/every time after expiration of period of maintenance, assign to Government at Government’s request and cost, benefit of such obligation for un-expired duration thereof

Comments-1 Whenever provisional and prime costs sums are included in contracts bill of

quantities, applicability of those comes/is ruled under direction of Engineer or under some of special requirement for job.



General conditions of contract form used in past decades Pre FIDIC2 Provisional sum shall not be used if not required or substituted should there be

any variation in the actual construction cost, for which this sum has been included.

3 Whenever contractor executes such work, variation shall go to his account/credit, otherwise to nominated subcontractor if such may be case

1 Whenever there exists, a provision of prime cost sum for supply of goods or materials, actual cost shall be substituted in place of prime cost including profit of contractor, excluding labour cost profit.

2 All sums are used only, on Engineer’s direction and contractor has to produce all financial records on this account to Engineer and also, 2.5% of amount paid, to nominated subcontractor is added to credit of contractor and benefits of cash discount are passed to owner/government.

3 Contractor shall assign cost of additional guarantee over maintenance period as provided by nominated subcontractor to government/owner on government request for un-expired period.

4 Whatever contract terms and conditions bind contractor or deemed to be nominated subcontractor in all respects and construction of subcontract shall be interpreted accordingly

5 All specialists merchants, tradesmen and others executing any/whatever work or supplying any/whatever goods, for which provisional or prime cost sums are included within Bill of Quantities, who may have been or be nominated or selected or approved by Government or Engineer and all persons to whom by virtue of provisions of Bill of Quantities or specification, contractor is required to sublet any/every work, shall in execution of such work or supply of such goods, be deemed to be subcontractors, employed by contractor and are hereinafter, referred to as “nominated subcontractors”.

6 Provided always that contractor shall not be required by Government or Engineer or be deemed to be under any/every obligation to employ any nominated subcontractor, who declines to enter into a subcontract with contractor containing provisions

7 That in respect of work or goods subject of subcontract, nominated subcontractor shall undertake towards contractor, like obligations and liabilities as are imposed upon contractor towards Government by terms of contract and save harmless and indemnify contractor from and against same and from all claims, demands, proceedings, damages, costs charges and expenses, whatsoever arising out of or in connection therewith or arising out of or in connection with any/every failure to perform such obligations or to fulfill such liabilities and

8 That nominated subcontractor shall save harmless and indemnify contractor from and against any/every negligence by nominated subcontractor, his agents, workmen and servants and from and against any/every misuse by him or them of any/every constructional plant or temporary works, provided by contractor for purpose of contract and from all claims as aforesaid

9 Before issuing under clause hereof, any/every certificate, which includes any/every payment in respect of work done or goods supplied by any/every nominated subcontractor, Engineer shall be entitled to demand from contractor,



General conditions of contract form used in past decades Pre FIDICreasonable proof that all payments (less retentions), included in previous certificates in respect of works or goods of such nominated subcontractors have been paid or discharged by contractor in default whereof, unless contractor shall inform Engineer in writing that he has reasonable cause for withholding or refusing to make such payment and produce to Engineer reasonable proof that he has so informed such nominated subcontractor in writing,

10 Government shall be entitled to pay to such nominated subcontractor direct upon certificate of Engineer, all payments (less retention), which contractor has failed to make to such nominated subcontractor and to deduct by way of setting off amount so paid by Government from any/every sums due or which become due from Government to contractor

11 Provided always that where Engineer has certified and Government has paid direct as aforesaid, Engineer shall in issuing any/every further certificate in favour of contractor, deduct from amount thereof, amount so paid direct as aforesaid, but not withhold or delay issue of certificate itself, when due to be issued under terms of contract


Certificates and payments1 Contractor shall submit to Engineer at end of each month, a Statement in form

approved by Engineer showing amounts to, which contractor may consider himself entitled up to end of month in respect of

2 Estimated value in accordance with contract of permanent work executed on site and forming part of works

3 Estimated value in accordance with contract of any/every materials on site for permanent work supplied by contractor, but not yet incorporated on permanent work

4 Payments on account of such items in Bill of Quantities not included 5 Any/every other sums or charges, to which contractor may consider himself under

terms of contract6 Engineer shall after examining each monthly, issue an interim certificate to

Government with a copy to contractor certifying amount of payment to contractor, which Engineer considers due and payable in accordance with terms of contract, subject to deduction of percentage of retention, stated in tender, until amount so retained reaches limit of retention money stated in tender, provided that Engineer shall not issue an interim certificate if amount thereof, would be less than minimum amount of interim certificates stated in tender, after deducting retention money and any/every sums, which are due and payable to Government by contractor in terms of contract

7 Upon issue of certificate of completion with respect to whole of works, one half of retention money (or where a certificate of completion is issued with respect to part of works, only such proportion of one half of retention funds, as Engineer determines having regard to relative value of such part of works), which becomes due and payable to contractor

8 Upon expiration of period of maintenance for whole of works, other half of retention money shall become due and payable to contractor



General conditions of contract form used in past decades Pre FIDIC9 Provided that if at such time, there remains to be executed by contractor any/every

work ordered pursuant to clauses hereof in respect of whole or any/every part of works, Government shall be entitled to withhold payment, until completion of such work of so much of such half of retention money or such proportion thereof, as case may be as may in opinion of Engineer, represent cost of work remaining to be executed

10 Payment upon each of Engineer’s interim certificate shall be made by Government within time stated in tender, after such certificate has been delivered to Government to make payment within such time.

11 Government has to pay to contractor an interest at rate of ….. percent per annum upon all overdue payments, from date on which same should have been made

12 Engineer may by any/every interim certificate make any/every correction or modification in any/every previous certificate, which has been issued by him and shall have power to withhold any/every interim certificate if works or any/every part thereof, are not being carried out to his satisfaction

13 All payments shall be made in currency of ………..14 Contractor shall apply terms of retention and release all retention monies on

nominated subcontractors accounts, in manner set forth in instructions given by Engineer, under terms of clause

15 Such instructions shall be similar, to those set out in sub clause of this clause, but related to terms of nominated subcontract in place of terms for this contract and release of retention monies to nominated subcontractors shall not affect in any/whatever way, terms for release of retention monies referred to in sub clause of this clause

16 As soon as possible, after issue of certificate of completion for whole of works, contractor shall submit to Engineer, a Statement of final account showing in detail, in form approved by Engineer, value in accordance with contract of all works executed, under contract.

17 Engineer shall after examining final account, certify to Government, amount of payment, which Engineer considers due and payable in accordance with terms of contract.

18 Government shall pay sum so certified within 28 days, after such certificate from Engineer has been delivered to Government

Comments-1 Monthly valuations of works carried out are submitted by contractor including

quantities of works, materials delivered to onsite and all other variations as ordered by Engineer, to Engineer for verification and Engineer having examined submitted statement, issue an interim certificate every month, retaining security money as mentioned within contract/tender documents, which retention money is deducted only, up to prescribed limits.

2 Engineer does not issue payment certificate in case, when payable money falls short of minimum required claim.

3 Retention money has to be paid to contractor half at time, when practical completion certificate is issued.



General conditions of contract form used in past decades Pre FIDIC4 Remaining half is released at time of issuing of maintenance certificate, provided

for some remedial actions as agreed, proportional amount representing estimated expenditure towards that (rectification) is held by Engineer.

5 Amount for which interim certificate issued to owner/government under copy to contractor should be released within time prescribed or else regulatory interest has to be paid.

1 Contractor has to produce all final accounts statement at time of final completion, when maintenance certificate is to be issued by Engineer and whatever amount is certified has to be paid to contractor in 28 days.

2 That certificate is delivered to owner/government under copy to contractor 3 No certificate other than maintenance certificate referred to in clause hereof shall

be deemed to constitute approval of any work or other matter, in respect of which, it is issued or shall be taken as an admission of due performance of contract or any/every part thereof or of accuracy of any/every claim or demand, made by contractor or of additional or varied work having been ordered by Engineer nor shall any other certificate conclude or prejudice any of powers of Engineer

Comments-1 Maintenance certificate is an authentic document, which contractually/legally

confirms that contract has been performed under Contracts Act.2 Notwithstanding issue of maintenance certificate, all defects left without remedial

action, contractor has to rectify those defects under assumption that contract still exists

1 Contract shall not be considered as completed, until a maintenance certificate has been signed by Engineer and delivered to Government stating that works have been completed and maintained to his satisfaction.

2 Maintenance certificate shall be given by Engineer twenty eight days (28days) after expiration of period of maintenance (or if different periods of maintenance shall become applicable to different parts of works expiration of latest such period) or as soon thereafter, as any/every work/s ordered during such period, pursuant to clauses hereof, shall have been completed to satisfaction of Engineer and full effect be given to this clause, notwithstanding any/every previous entry on works or taking possession working of using thereof or any/every part thereof by Government

3 Provided always that issue of maintenance certificate shall not be a condition, precedent to payment to contractor of second portion of retention money in accordance with conditions set in clause hereof

4 Government shall not be liable to contractor for any matter or things arising out of or in connection with contract or execution of works, unless contractor has made a claim in writing in respect thereof, before giving of maintenance certificate under this clause

5 Notwithstanding, issue of maintenance certificate, contractor and (subject to sub clause of this clause ) Government shall remain liable for fulfillment of any/every obligation incurred under provisions of contract, prior to issue of maintenance certificate, which remains unperformed at time, such certificate is issued and for



General conditions of contract form used in past decades Pre FIDICthat purposes of determining nature and extent of any/every such obligation, contract shall be deemed to remain in force between parties hereto


Remedies and powers1 If contractor becomes bankrupt or has a receiving order made against him or

presents his petition in bankruptcy or makes an arrangement with or assignment in favour of his creditors or agrees to carry out contract under a committee of inspection of his creditors or (being a corporation) go into liquidation (other than a voluntary liquidation for purpose of amalgamation or reconstruction) or if contractor assigns contract without consent in writing of Government first obtained or has an execution levied on his goods or if Engineer certifies in writing to Government that in his opinion contractor has abandoned contract or without reasonable excuse, has failed to commence works or has suspended progress of works for 28 days, after receiving from Engineer written notice to proceed or

2 has failed to remove materials from site or to pull down and replace works for 28 days, after receiving from Engineer written notice that said materials or work had been condemned and rejected by Engineer under these conditions or is not executing works in accordance with contract or is persistently or flagrantly, neglecting to carry out his obligations under contract or has been to detriment of good workmanship or in defiance of Engineer’s instructions to contrary sub let any/every part of contract

3 Then Government may after giving 14 days notice in writing to contractor, enter upon site, works and expel contractor therefrom, without thereby avoiding contract or releasing contractor from any/every of his obligations or liabilities, under contract or affecting rights and powers conferred on Government or Engineer by contract and may himself complete works or may employ any/some other contractor to complete works and Government or such other contractor may use for such completion, so much of constructional plant temporary works and materials, which have been deemed to become property of Government for construction and completion of works, under provision of contract as he or they may think proper and Government may at any/every time sell any/each of said constructional plant temporary works and unused materials and apply proceeds of sale in or towards satisfaction of any/every sums due or which may become due to him from contractor under contract

4 Engineer shall as soon as, may be practicable, after any/every such entry and expulsion by Government, fix and determine ex parte or by or after reference to parties or after such investigation or inquiries, as he may think fit to make or institute and certify, what amount (if any/each) had at time of such entry and expulsion, been reasonably earned by or would reasonably accrue to contractor in respect of work then actually, done by him under contract and what was value of any/each of said unused or partially, used materials any/every constructional plant and any/every temporary works

5 If Government enter and expel contractor under this clause, Government shall not be liable to pay to contractor any money on account of contract, until expiration



General conditions of contract form used in past decades Pre FIDICof period of maintenance and thereafter, until costs of completion and maintenance, damages for delay in completion (if any/some) and all other expenses incurred by Government, have been ascertained and amount thereof, certified by Engineer.

6 Contractor shall then be entitled to receive only, such sum or sums (if any/some) as Engineer may certify, would have been due to him upon due completion by him, after deducting same amount of such excess and it shall be deemed a debit due by contractor to Government and be recoverable accordingly

Comments-1 What way Engineer/owner can remove difficulties, in case of contractor having

been given statutory bankrupt status by operation of law, which state necessitates/ requires contractually/statutorily, contract be abandoned by contractor if so adjudged in opinion of Engineer, while non starter duration, which is unreasonably long without Engineer’s permission, progress is suspended for more than 28 days having received Engineer’s instruction to pull down and replace works for 28 days as well as, does remove rejected material.

2 Does not carry out works according to specification persistently or flagrantly or spoils workmanship and defies Engineer’s instruction continues or work is sublet to any/other party without obtaining Engineer’s approval, owner/government has/have to carry out work themselves or by employing another contractor at risk and cost of original contractor.

3 Engineer shall take up valuation at time, when contractor is expelled and before recommencement of job and notify amount to owner/government and contractor and nothing can be taken off site by contractor.

4 Whatsoever amount is incurred by new management, shall be borne by expelled contractor

1 If by reason of any/certain accident or failure or other event occurring to, in or in connection with works or any/every part thereof, either during execution of works or during period of maintenance, any/every remedial or other work or repair shall in opinion of Engineer or Engineer’s Representative, be urgently necessary for security and contractor is unable or unwilling at once, to do such work or repair, Government may by its own or other workmen, do such work or repair as Engineer or Engineer’s Representative may consider necessary

2 If work or repair so done by Government is work, which in opinion of Engineer, contractor was liable to do at his own expense under contract, all costs and charges properly, incurred by Government in so doing shall on demand be paid by contractor to Government or may be by Government from any/every monies due or which may become due to contractor.

3 Provided always that Engineer or Engineer’s Representative (as case may be), shall as soon after occurrence of any/every such emergency as may be reasonably practicable, notify contractor thereof in writing.

Comments-1 All repairs, till maintenance period of, whatever nature or magnitude are to be

carried out shall be transacted to debit account of contractor and if for operations of all above conditions, contractor has to deposit to owner/government



General conditions of contract form used in past decades Pre FIDICany/certain amount that amount is considered legally as a debt to contractor to be recovered by owner/government

Special risks1 Notwithstanding anything in contract contained:2 Contractor shall be under no liability, whatsoever by way of indemnity or

otherwise, for or in respect of destruction of or damage to works (save to work condemned under provisions of clause hereof, prior to occurrence of any/every special risk hereafter mentioned) or temporary works or to property, whether Government or third parties or for or in respect of injury or loss of life, which is consequence, whether direct or indirect, of war hostilities (whether war be declared or not) invasion act of foreign enemies, rebellion revolution, insurrection or military or usurped power civil war or (otherwise than among contractor’s own employees), riot commotion or disorder (hereinafter comprehensively, referred to as ‘ said special risks’) and Government shall indemnify and save harmless contractor against and from same, against and from all claims, demands, proceedings, damages, costs charges and expenses, whatsoever arising thereout or in connection therewith and shall compensate contractor for any/every loss of or damage to property of contractor used or intended to be used for purpose of works (including property in transit to site) and occasioned either directly or indirectly by said special risks.

3 For purpose of this clause expression "property of contractor” shall include any/every plant brought on to site by contractor, property in which under terms of clause hereof is deemed to become property of Government

4 If works or temporary works or any/every materials (whether for former or later) on or near or in transit to site, sustains destruction or damage by reason of any/each of said special risks, contractor shall nevertheless be entitled to payment for any/every permanent work and for any/every materials so destroyed or damaged and contractor be entitled to be paid by Government, cost of making good any/every such destruction or damage, whether to works or to temporary works and of replacing or making good such materials in so far as, may be required by Engineer or as may be necessary for completion of works on a prime costs basis plus such profit as Engineer may certify to be reasonable.

5 Destruction, damage, injury or loss of life caused by expulsion or impact, wherever occurring of any/every mine bomb, shell, grenade or other projectile, missile or explosive of war shall be deemed to be consequence of said special risks

6 Government shall repay to contractor any/every increased cost of or incidental to execution of works (other than such as may be attributable to cost of reconstructing work, condemned under provisions of clause hereof, prior to occurrence of any/every special risk), which is however, attributable to or consequent on or result of or in any/every way, whatsoever connected with said special risks (subject however to provisions in this clause, hereinafter contained in regard to outbreak of war), but contractor shall as soon as any/every such increase of cost comes to his knowledge forthwith, notify Engineer thereof in writing



General conditions of contract form used in past decades Pre FIDIC7 If during currency of contract, there shall be an outbreak of war (whether or not

war is declared) in any/whatever part of world, which whether financially or otherwise, materially affects execution of works, contractor shall unless and until contract is terminated under provisions in this clause contained, use his best endeavors to complete execution of works, provided always that Government is entitled at any/every time, after such outbreak of war to terminate this contract, by giving notice in writing to contractor and upon such notice being given, this contract shall (save as to rights of parties under this clause and to operation of clause hereof) terminate, but without prejudice to rights of either party in respect of any/every antecedent breach thereof.

8 If contract is terminated under provisions of last preceding sub clause, contractor shall with all reasonable dispatch, remove from site all constructional plant and give similar facilities to his subcontractors to remove similarly, all constructional plant belonging to them and in event of any/certain failure so to do, Government shall have like powers as are contained in clause hereof in regard to failure so to do, Government shall have like powers, as are contained in clause hereof, in regard to failure to remove construction plant on completion of works, but subject to same condition, as is contained in clause hereof

9 If contract is terminated as aforesaid, contractor shall be paid by Government (in so far as, such amounts or items shall not have already been covered by payments on account made to contractor) for all work executed, prior to date of termination at rates and prices provided in contract and in addition, amounts payable in respect of any/every preliminary items, so far as work or service comprised therein, has been carried out or performed and a proper proportion as certified by Engineer of any/every such items, work or service comprised in which has been partially, carried out or performed

10 Cost of materials or goods reasonably, ordered for works or temporary works, which shall have been delivered to contractor or of which contractor is legally, liable to accept delivery (such materials or goods becoming property of Government, upon such payment being made by him)

11 A sum to be certified by Engineer being amount of any/every expenditure reasonably incurred by contractor in expectation of completing whole of works in so far as, such expenditure shall not have been covered by payments in this sub clause before mentioned

12 Any additional sum payable under provisions of sub clauses of this clause13 Reasonable cost of removal under sub clause of this clause and (if required by

contractor), return thereof to contractor’s main plant yard or to any/every other destination at no greater cost

14 Reasonable cost of repatriation of all contractor’s staff and workmen employed on or in connection with works at time of such termination

15 Provided always that against any/every payments due from Government under this sub clause, Government shall be entitled to be credited with any/every outstanding balances, due from contractor for advance, in respect of plant and materials and any/every sum previously, paid by Government to contractor in respect of execution of works

Comments-



General conditions of contract form used in past decades Pre FIDIC1 Due to outbreak of war or some other natural hazards, which are

unexpected/unforeseen, contractor, is not liable for anything, but government/owner shall have to compensate contractor for various damages caused by such risks.

2 Should government terminate contract due to indirect effect of wars from a foreign source, contractor has to be duly compensated for all contractor losses including reasonable expectations

Frustration1 In event of contact being frustrated, whether by war or otherwise howsoever, sum

payable by Government to contractor in respect of work executed shall be same as that, which would have been payable under clause hereof, if contract had been terminated under provisions of clause hereof


Settlement of disputes1 If any/every dispute or difference of any/every kind, whatsoever arises between

Government or Engineer and contractor in connection with or arising out of contract or carrying out of works (whether during progress of works or after their completion and whether before or after termination, abandonment or breach of contract), it shall in first place be refereed to and settled by Engineer, who within a period of 90 days, after being requested by either party to do so, shall give written notice of his decision to Government and contractor.

2 Save as hereinafter provided, such decision in respect of every matter so referred shall be final and binding upon Government and contractor, until completion of work and shall forthwith be given effect to by contractor, who has to proceed with works with all due diligence, whether he or Government required arbitration as hereinafter provided or not.

3 If Engineer has given written notice of his decision to Government and contractor and no claim to arbitration, has been communicated to him by either Government or contractor, within a period of 90 days from receipt of such notice, said decision shall remain final and binding upon Government and contractor.

4 If Engineer fails to give notice of his decision as aforesaid within a period of 90 days, after being requested as aforesaid or if Government or contractor be dissatisfied with any/every such decision then and in any/every such case, either Government or contractor may within 90 days, after receiving notice of such decision or within 90 days, after expiration of first named period of 90 days (as case may be), require that matter or matters in dispute be refereed to arbitration as hereinafter provided.

5 All disputes or differences in respect of, which decision (if any/every) of Engineer has not become final and binding as aforesaid, shall be finally settled under rules of conciliation and arbitration of International Chamber of Commerce by one or more arbitrators appointed in accordance with said rules.

6 Said arbitrator/s shall have full power to open up, review and revise any/every decision, opinion, direction, certificate or valuation of Engineer and neither party



General conditions of contract form used in past decades Pre FIDICshould be limited in proceedings, before such arbitrator/s to evidence or arguments, put before Engineer for purpose of obtaining his said decision.

7 No decision given by Engineer in accordance with foregoing provisions shall disqualify him for being called as a witness and giving evidence before arbitrator/s on any/every matter, whatsoever relevant to dispute or difference referred to arbitrator/s as aforesaid.

8 Arbitrator/s shall not enter on reference, until after completion or alleged completion of works, unless written consent of Government and contractor provided always

9 That such reference may be opened, before such completion or alleged completion in respect of withholding by Engineer of any/whatever certificate or withholding of any/whatever portion of retention money to which contractor claims in accordance with condition set out in clause hereof to be entitled or in respect of exercise of Engineer’s power to give a certificate under clause hereof

10 That giving of a certificate of completion under clause hereof shall not be a condition precedent to opening of any/every such reference

Comments-1 It is better if disputes are settled on site by authorities of Engineer, while

arbitration proceeding is avoided. 2 But if contractor or owner/government feel that Engineer has not decided

impartially or decision is not based on equity or judicial principles. 3 Having contract been performed, reference to Arbitration Act or Rules of

Conciliation and Arbitration of International Chamber of Commerce shall persist and remedy shall be obtained

Notices1 Any notice to be given to contractor under terms of contract shall be served by

sending same by post to or leaving same at aforementioned registered address in ………

2 Any notice to be given to Government house P O Box ………………………….3 Any notice given to Engineer under terms of contract shall be served by sending

same by post to or leaving same at Engineer’s Representative’s office at site or at Engineer’s office in ……………….

Comments-1 It proved services’ style of notices

Default of employer1 In event of Government: 2 Failing to pay to contractor, whatever amount due under any/every certificate of

Engineer within 30 days, after same shall have become due under terms of contract or

3 Interfering with or obstructing issue of any/every such certificate,4 Contractor shall be entitled without prejudice to any/every other right or remedies

to terminate employment of contractor, under contract by giving notice in writing to Government



General conditions of contract form used in past decades Pre FIDIC5 Upon giving of such notice, contractor shall (notwithstanding provisions of clause

hereof) with all reasonable dispatch, remove from site, all constructional plant brought by him thereon

6 In event of such termination, Government shall be under same obligations to contractor in regard to payment, as if contract had been terminated under provisions of clause hereof, but in addition to payments specified in clause, Government has to pay to contractor amount of any/every loss or damage to contractor, arising out of or in connection with or by consequence of such termination

7 Nothing in this clause contained, shall prejudice right of contractor to exercise in lieu of or in addition to rights and remedies in this clause, specified any/every other rights or remedies, to which contractor may be entitled

Comments-1 Provides rights conferred on contractor pertaining to payment of interim

certificates and others to be made in 30 days and there should be no obstructions directly or indirectly, caused by government or owner to Engineer to delay or obstruct to issue any certificate of payment and if so, payment stoppage should be conducted by serving on contractor a due notice, contractor may terminate job contract and enjoy all rights as if contract was terminated by owner or government

Increase or decrease of costs1 If after date of tender, any/certain new Statute ,Ordinance, Law or Regulation or

Bye Law be introduced by Government of ….. and compulsorily, applicable to this contract and this thereby, causes an increase or decrease of cost to contractor, in carrying out contract in respect of wages, rates paid by him to his employees, together with any/every adjustment in social welfare taxes applicable thereto then net increase or decrease of such cost shall be added to or deducted from contract price as case may be

2 No adjustment of contract price shall be made in respect of any/every variation in rates of pay, which contractor may arrange with his employees excepting only, where such variations are necessitated, pursuant to a condition arising in terms of preceding of this sub clause

3 No variation to contract price shall be allowed in respect of changes in personal income tax paid by contractor’s local employees

4 In determining amount of any/every increase or decrease of contract price, pursuant to this clause, no account shall be taken of any/every site or general overheads or profits related to this contract

5 Contractor shall as soon as known by him, give immediate written notification to Engineer of any/every happening or event, which may give rise to adjustment of contract price, pursuant to this clause.

6 Contractor shall keep such books, accounts, time sheets and other documents and records, as are necessary to enable adjustment, under this clause to be made and at request of Engineer, furnish these, duly verified in such a manner as Engineer may require for examination and checking



General conditions of contract form used in past decades Pre FIDIC7 Amount of any/every adjustment to contract price, pursuant to this clause shall be

determined by Engineer in accordance with foregoing rules8 Unless Government and contractor otherwise agree, any/every increase or

decrease of this contract price as aforesaid shall be included in interim payments on account made to contractor, under terms of clause hereof

9 Provisions to like effect as those contained in sub clause of this clause shall be incorporated in subcontracts and if price payable under any/every subcontract differs from price in that subcontract, by reason of operation of such provisions then net increase or decrease of price shall be added to or deducted from contract price as case may be

Comments-1 Provides for additional payment made or a recovery effected to, in case increase

or decrease in respect of wages paid to employees by statutory enactment and Engineer has a right to examine all documents

Other conditions1 Contractor shall comply with Statute, Ordinances, Laws, Regulations and Bye

Laws of nation. 2 He shall be responsible for ascertaining extent and incidence of all taxes, customs,

rates, dues and all other charges, payable in accordance with such Statutes, Ordinances, Laws, Regulations and Bye Laws and shall give all notice in compliance therewith

3 Contractor shall be held to have included in tender for payment of all charges of whatsoever nature required to be paid in order to comply with in all respects with provisions of contract and aforementioned Statutes, Ordinances, Laws, Regulations and

4 Bye LawsComments-

1 Provides for all expenses towards complying with statutes relevant to contract should be met by contractor

1 Constructional plant temporary works, materials, transport and things of every kind necessary for construction, completion and maintenance of works shall be erected in such positions and used or executed at such times and in such a manner, as is indicated in programme to be provided by contractor, under terms of clause of these conditions of contract or any/every subsequent modifications to such programme, agreed by Engineer and as are most efficient and suitable for proper timely and safe execution of works to be undertaken under this contract

2 Contractor shall be solely, responsible for provision, sufficiency, safety and all other risks and costs of all aforesaid construction plant temporary works, materials ,transport and things of every kind and for methods adopted by him for proper execution of works in accordance with contract

3 Contractor shall at his own expense, unless otherwise specified, make all his own arrangements for supply and distribution of water, fuel, light and power to all points, where they are required for all operations, under contract and for this purpose, he shall provide and use all necessary constructional plant temporary



General conditions of contract form used in past decades Pre FIDICworks, transport materials and things of every kind, necessary to supply and distribute supplies to various parts of works including also, for a satisfactory supply of water to offices, camps, latrines and other temporary buildings, requiring it and a sufficient supply of drinking water of good quality for his employees

4 Contractor shall take all risks from water, whatever source or cause may be and at his own expense, unless otherwise specified so, properly deal with and dispose of water by use of sufficient constructional plant temporary works, materials transport and things of every kind, as to ensure whole of works being executed in a satisfactory dry and safe manner in accordance with requirements of contract

5 Contractor shall at his own expense, unless otherwise specified, provide and maintain all necessary temporary bridging, gangways, ladders, staging, railways, roads and footpaths to and about site of works, as may be necessary for construction and completion of works or transport of labour, plant and materials.

6 All of before mentioned works, which may be constructed and in use for works generally, shall be available without charge for a reasonable use of Government, Engineer and other contractors, employed by Government on site

7 Contractor shall obtain his own information with regard to granting of import and export licenses.

8 Contractor shall bear expense of and obtain all import and export licenses for constructional plant materials, equipment and other things, required for completion and maintenance of works and be deemed to have satisfied himself with regard to all his liabilities under Statutes, Ordinances, Laws, Regulations and Bye Laws governing granting of these licenses

9 Contractor shall ensure that applications for import and export licenses are submitted to appropriate Authorities in sufficient time, to clear all formalities, before licenses are required

Comments-1 Plants be positioned as agreed and planned. Safety has to be maintained as

statutorily, required and directed by Engineer and safety officer/managers. 2 All arrangements of water and fuel, contractor has to make, disposal of water and

keeping works area tidy to be used by all portions. 3 Import and export information, all form part of contractor’s responsibilities

1 Contractor shall treat details of this contract as private and confidential (save in so far as, may be necessary for purposes hereof) and not publish or disclose same or any/certain particulars thereof in any/whatever trade or technical paper or elsewhere, without previous consent in writing of Government.

2 If any/certain dispute arises, as to necessity of any/some publication or disclosure for purpose of this contract, same shall be referred to decision of Government, whose award shall be final

Comments-1 No details of contract to be given to irrelevant persons, since details are

confidential and covered under Copy Rights Acts. 2 Though, it is written in contract that permission of government should be taken

prior to publish any/every details in papers, but world government is a misnomer.



General conditions of contract form used in past decades Pre FIDIC3 It is Engineer, who enjoys Copy Right ownership and as far as, technicalities and

Engineering is concerned, he is responsible for owning Copyright

1 Government shall be entitled to cancel contract and recover from amount of any/every loss resulting from such cancellation, if contractor has offered or given or agreed to give to any/some person, any/some bribe, gift, commission of any/some kind as an inducement or reward for doing or forbearing to do or having done or forborne to do any/every action, in relation to obtaining or execution of contract or any/every other contract with Government or for showing or forbearing to show favour or disfavour to any/every person, in relation to contract or any/some other contract with Government

Comments-1 Bribery and corruption can lead to termination of contract

1 Contractor shall be bound strictly, to comply with Rules, Regulations and Laws in force in state, where contract is executed relating to any/every particular restriction pertaining to any/every national policy

Comments-1 It is a special clause for Arab world to boycott of Israel for example

1 Contract shall be construed and operated and interpreted in accordance with Laws of state, where contract is executed normally

Comments- 1 Law of nation, where job is carried out applies2 Other than above clause, general clauses, some of other conditions and terms

may be added by engineer or promoter or contractor, keeping in view requirement of project and specific function for what, contract is meant for, provided all parties come to an agreement on proposal, keep up or maintenance, resolution of probable difficulties and necessary remedial measures to be adopted, foreseeing any/every dispute cause by inclusion of these additional provisions

3 As far as, above conditions do not contravene provisions in national constitution and statutes in force for duration for, which contract remains in force, no clause shall be considered void.

4 Above prescribed references shall be construed by any/every court or relevant authority or any/every authorized official of government or an expert of any/every field for purpose to determination of meaning of included provisions, basic principle to have found these clauses is to document on a’ letter for explanations’ for conditions of contract that shall be based on specific requirement of project and natural justice as far as, is practicable for all parties to contract concerned

5 According to Contract Act, no restriction or limitation is provided or forced on parties concerned, subject to conditions included in clauses hereof are maintained for structuring of contract conditions/letter of explanations and construction of any/every clause, has to be reached by applying mind, based on General Clauses Act, specified in constitution or if no such General Clauses Act prevails, application of general meaning of words and phrases usually employed,



General conditions of contract form used in past decades Pre FIDICby common practice in profession based on expert advice and vision by authority responsible for adjudication of disputes, arbitrator, justice of high court or justice of supreme court as case may be , is to be required what parties might have thought at time of constructing contract conditions, in relevance to true intention of project meant for giving just and equal right and opportunities to parties concerned, so that principles of equity are maintained in all respects.
