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STANDARD

CONTRACT AGREEMENT

AND CONDITIONS OF CONTRACT

2009

ENGINEERING CONSULTANCY SERVICES

PRE CONTRACT ENGINEERING SERVICES

POST CONTRACT ENGINEERING SERVICES

PRE AND POST CONTRACT ENGINEERING SERVICES

Copyright-Ministry of Works SFMinor09

Acknowledgments

The Ministry of Works of the Government of the Kingdom of Bahrain would like to express its

deepest gratitude to the following ministries, directorates, organizations and persons for the help,

assistance and collaboration provided.

Ministry of Works

• H.E. Fahmi Bin Ali Al-Jowder - Minister of Works

• Mrs. Effat Redha Husain - Assistant Undersecretary, Technical Services

(Chairperson; Committee for Updating Conditions of Contracts)

Committee Members:

Mr. Basheer Mohammed Saleh

Mr. Rod Acosta

Mr. Colin Cunningham

Mr. Khalid Salem Bu Hamood

Mr. Saleh Ghuloom Ali

Mrs. Shaheera Mahmood Zainal

Mr. K.K. Gopinathan

Mrs. Nadia A. Aziz

Other Ministries, Directorates & Organizations

Ministry of Finance

Ministry of Housing

Ministry of Health

Ministry of Education

Ministry of Interior

Ministry of State for Defence (BDF)

Tender Board

Bahrain Chamber of Commerce & Industry

Legal Affairs Directorate

Bahrain Society of Engineers

Baker Wilkins & Smith (Middle East) - Chartered Surveyors

Trowers & Hamlins – Solicitors

Various Contracting Organizations in Kingdom of Bahrain

Various Engineering/QS Consultants in Kingdom of Bahrain

And all other organizations/personnel who contributed in the Updating of Conditions of

Contracts.

STANDARD

CONTRACT AGREEMENT


2009


Copyright-Ministry of Works ConsultEngPre09

CONDITIONS OF CONTRACT


CONTENTS

FORM OF CONTRACT AGREEMENT 1


1. Definitions 4

2. Interpretation 6

RESPONSIBILITIES OF THE CONSULTANT ENGINEER

3. Scope of Services 6

4. Duty of Care and Exercise of Authority 7

RESPONSIBILITIES OF THE EMPLOYER

5. Information Supplied by the Employer 8

PERSONNEL

6. Representatives 9

7. Appointment and Replacement of Staff 9

SECURITY

8. Performance Bond 9

COMMENCEMENT, COMPLETION AND TERMINATION

9. Contract Effective 10

10. The Consultant Engineer's Programme 10

11. Further Proposals 10

12. Delays 11

13. Abandonment Suspension or Termination 11

13.1 By Notice of the Employer 11

13.2 By Notice of the Consultant Engineer 12

13.3 Rights and Liabilities 13

13.4 Obligations at Termination 13

THE CONSULTANT ENGINEER'S REMUNERATION

14. Payment to the Consultant Engineer 13

15. Additional Services 14

16. Currency of Payment 14

17. Independent Audit 15

Copyright-Ministry of Works ConsultEngPre09

INSURANCES

18. Indemnity & Insurance 15

18.1 Indemnity 15

18.2 Insurance 15

GENERAL PROVISIONS

19. Law of Contract 16

20. Laws, Notices, Permits and Charges 16

21. Intellectual Property Rights 17

22. Trainees 18

23. Assignment and Subletting 18

24. Confidentiality 18

25. Notices 18

DISPUTES

26.1 Settlement of Disputes 19

26.2 Mediation (if applicable) 19

26.3 Arbitration 20

ANNEX 1 FORM OF PERFORMANCE BOND 22

ANNEX 2 STANDARD FORM OF REQUEST FOR PAYMENT BY DIRECT BANK

TRANSFER 24

THE FIRST SCHEDULE - THE PROJECT 27

THE SECOND SCHEDULE - THE SERVICES 28

THE THIRD SCHEDULE - THE CONSULTANT ENGINEER'S PROGRAMME 32

THE FOURTH SCHEDULE - THE CONSULTANT ENGINEER’S

REMUNERATION 33

Copyright-Ministry of Works ConsultEngPre09 1

FORM OF CONTRACT AGREEMENT

(PROJECT TITLE)

CONTRACT NUMBER: [ ]

THIS CONTRACT AGREEMENT is made the [ ] day of [ ] 20 [ ]

BETWEEN

1) THE GOVERNMENT OF THE KINGDOM OF BAHRAIN as represented by the

MINISTRY OF WORKS of P.O. Box 5, Bahrain (the

Employer); and

2) [ ] of P.O. BOX [ ] Bahrain,

Commercial Registration Number [ ] (the Consultant Engineer).

WHEREAS the Employer intends to proceed with the development of the project described in

the First Schedule hereto (the Project) and has requested the Consultant Engineer to undertake

and perform the services described in the Second Schedule hereto (the Services) which the

Consultant Engineer has agreed to do for the Remuneration upon and subject to the terms and

conditions set out in the Contract.

NOW IT IS AGREED as follows:

1 In this Contract Agreement words and expressions shall have the same meaning as in

the Conditions of Contract hereinafter referred to.

2 The following documents shall form and be read as the Contract:

a this Contract Agreement

b the Conditions of Contract

c the Letter of Award [Delete if not applicable]

3 In the event of any conflict or discrepancy between any other documents comprising

the Contract and any of the terms of this Contract Agreement the terms of this

Contract Agreement shall prevail.


4 The following Schedules (the Schedules) shall form part of and shall be read and

construed in conjunction with this Contract Agreement:

a First Schedule - the Project

b Second Schedule - the Services

c Third Schedule - the Consultant Engineer's Programme

d Fourth Schedule - the Consultant Engineer's Remuneration

5 Notwithstanding any of the terms set out in this Contract Agreement the Schedules

shall have full effect as terms of this Contract Agreement and in the case of any

conflict or discrepancy between any of the Schedules and any of the terms of this

Contract the Schedules shall prevail.

6 The Employer hereby appoints the Consultant Engineer and agrees to pay the

Consultant Engineer the Remuneration for the provision and execution of the

Services or such other sums as may become due under the Contract.

7 In consideration of the Remuneration to be paid by the Employer to the Consultant

Engineer, the Consultant Engineer hereby covenants with the Employer to provide,

execute, and complete the Services in all respects with the provisions of this

Contract.

8 The Consultant Engineer hereby warrants to the Employer:

a that he will comply with the Laws or where these are not available the

appropriate international standards duly approved by the Employer (including,

where appropriate, COEPP).

b that in the case of breach by the Consultant Engineer of this undertaking the

Employer shall have the right to terminate the Contract without prejudice to

any other remedies available to the Employer under this Contract Agreement,

and

c that the performance of the Services will conform strictly to the standards laid

down in the Contract and if no such standards are laid down to the best

accepted international standards of current professional practice.

9 The amount of third party insurance cover required under Clause 18.2a of the

Conditions of Contract shall be not less than Bahrain Dinars [ ] (BD [ ]) for any one

incident with the number of incidents unlimited and the amount of professional

indemnity insurance required under Clause 18.2b of the Conditions of Contract shall

be not less than Bahrain Dinars [ ] (BD [ ]) for any one claim, with the number of

claims unlimited.


10 Clause 26.2 of the Conditions of Contract shall apply and any dispute or difference

may be referred by either party to mediation by a mediator to be appointed by [

] who shall conduct the mediation in accordance with Clause 26.2. [Delete if not

applicable]

11 Clause 8 of the Conditions of Contract shall apply and the Consultant Engineer is

required to provide a Performance Bond for [ ]/Clause 8 shall not apply.

[Delete as applicable]

12 Pursuant to Clause 14.4 the rate of interest on overdue payments shall be [ ] per cent

([ ]%) per annum.

IN WITNESS whereof the authorised representatives of the Employer and the Consultant

Engineer have signed this Contract Agreement on the date stated at the beginning of this

Contract Agreement.

SIGNED for and on behalf of

THE KINGDOM OF BAHRAIN

MINISTRY OF WORKS

in the presence of:


The Consultant Engineer

in the presence of:



1 Definitions

1.1 The following words and expressions shall have the meanings assigned to them

except where the context otherwise requires:

Additional Services means Services requested by the Employer that are in addition

to those described in the Second Schedule hereto and as referred to in Clause 15

hereof.

approved means approved in writing and approval means approval in writing.

Authority means any duly constituted authority in Bahrain.

Bahrain means the Kingdom of Bahrain.

Building Contract means the contract entered into between the Employer and the

Contractor(s).

COEPP means the Bahrain Committee for Organising Engineering Professional

Practice.

Conditions of Contracts means these conditions of contract.

Contract means the Contract Agreement, the Conditions of Contract and the

Schedules attached to the Conditions of Contract.

Contractor means a person or company appointed by the Employer to execute the

Works (including the goods and equipment to be supplied by the Employer) for the

achievement of the Project and so notified to the Consultant Engineer.

Consultant Engineer means the party named in this Contract, who is employed as

an independent professional firm by the Employer to perform the Services and legal

successors to the Consultant Engineer and permitted assignees.

day means the twenty-four (24) hour period between any one midnight and the next.

Employer means the party named in this Contract who employs the Consultant

Engineer and legal successors in title to the Employer and permitted assignees.

Intellectual Property Rights means all intellectual property rights (including

without limitation patents, trademarks, designs, design rights, copyright, inventions,

trade secrets, know-how and confidential information) and all applications for

protection of any of the same.


Laws mean all laws applicable to the Contract and the Works including all 'Statutes',

'Decrees', 'Orders', 'Ordinances', 'Regulations' and 'Bye-laws' of any duly constituted

authority in force from time to time in Bahrain.

month means a period of one month according to the Gregorian calendar

commencing with any day of the month.

National Standard means those current professional standards applicable to the

Consultant Engineer's profession in Bahrain.

party and parties means the Employer and the Consultant Engineer and third party

means any other person or entity as the context requires.

Performance Bond means a performance bond as referred to in Clause 8 and in the

form set out in Annex 1 to the Conditions of Contract

Project means the project named in the First Schedule

Quantity Surveyor means the quantity surveyor appointed by the Employer in

relation to the Project and notified to the Consultant Engineer.

Remuneration means the remuneration to be paid by the Employer to the Consultant

Engineer further to the Fourth Schedule or such other sums as may become due under

the Contract.

Request for Payment by Bank Transfer means a request as referred to in Clause

14.3 and in the form set out in Annex 2 to the Conditions of Contract.

Representative means an official directly employed by either party to administer the

Contract as notified to the other party.

Services means the services to be performed by the Consultant Engineer stated in the

Second Schedule

Value Engineering means a structured system for the review of the design, supply

and construction process to identify options and scope for improvement, including

reduced capital and/or whole-life costs, improved buildability and improved

functionality.

Working Day means Sunday to Thursday inclusive but not including any public

holiday recognised in Bahrain.

Works means the permanent works to be executed (including the goods and

equipment to be supplied by the Employer) for the achievement of the Project.


2 Interpretation

2.1 The headings in these Conditions of Contract shall not be taken into consideration in

the interpretation of the Contract.

2.2 Words used in the singular shall have the same meaning in the plural and vice versa.

2.3 The Contract is to be construed and interpreted in the English language. All

references to dates or periods of time shall be construed in accordance with the

Gregorian calendar.

2.4 References in these Conditions of Contract to Clauses and Schedules shall, unless

otherwise stated, be treated as references respectively to Clauses in and Schedules

annexed to these Conditions of Contract.

2.5 The Contract supersedes all prior contracts, agreements and understandings between

the parties and no change termination or attempted waiver of any of the provisions

hereof shall be binding unless in writing and signed by the party against whom the

same is to be enforced. By entering into the Contract the Consultant Engineer is

deemed to have waived its general terms and/or conditions of business (if any).

2.6 Whenever the date for the performance of any term, condition, obligation, covenant,

agreement or provision required or provided under the Contract falls on a date that is

not a Working Day, such date shall be extended to the next succeeding Working Day.


3 Scope of Services

3.1 The Consultant Engineer shall perform the Services in such a way that they:

a Achieve the purpose to be served by the Project in the most practical and

economical manner.

b Accord with good professional and current practice and take into account the

particular conditions prevailing in Bahrain.

c Adopt only such changes as have been previously approved in writing by the

Employer.

d Adhere to the standard contract documents generally used by the Employer.

e Use the metric system and the English language throughout the performance

of the Services unless otherwise instructed by the Employer.


3.2 The Consultant Engineer shall be responsible for the correctness and soundness of all

documents and drawings prepared by him in connection with the Project. Neither the

approval by the Employer of such documents and drawings nor the failure of the

Employer to discern any defect in or omission from such documents and drawings

shall absolve or relieve the Consultant Engineer of any of his design responsibilities

or other duties and obligations under this Contract.

All such documents and drawings shall be the property of the Employer and shall not

be shown, given or related by the Consultant Engineer to any third party without the

prior written approval of the Employer.

3.3 The Consultant Engineer shall report to the Employer without delay any arising need

for information, investigation or analysis in connection with the Project.

3.4 The Consultant Engineer is obliged to cooperate fully with all other consultants and

experts engaged by the Employer in connection with the Project.

3.5 The Consultant Engineer is obliged to follow all the Employer’s instructions in

relation to the Project but shall inform the Employer immediately in writing if it feels

that any such instruction is contradictory to the efficient execution and completion of

the Project.

4 Duty of Care and Exercise of Authority

4.1 The Consultant Engineer shall exercise all reasonable skill, care and diligence in the

performance of his obligations under this Contract.

4.2 The Consultant Engineer acknowledges that the Employer shall be deemed to have

relied on the Consultant Engineer’s professional skill and judgement in respect of

those matters relating to the Project which lie within the scope of the Consultant

Engineer’s responsibilities hereunder and that accordingly the Consultant Engineer

owes to the Employer a professional duty of care.

4.3 The Consultant Engineer shall perform the Services in such manner and at such times

that no negligent or intentional act, omission or default by the Consultant Engineer in

relation to the Services shall constitute, cause or contribute to any breach by the

Employer of any of the Employer’s obligations in respect of the Project of which the

Consultant Engineer is aware.

4.4 Where the Services include the exercise of powers or performance of duties

authorised or required by the terms of a contract between the Employer and any third

party, the Consultant Engineer shall:

a Act in accordance with the contract provided that the details of such powers

and duties are acceptable to him where they are not described in the Second

Schedule.


b If authorised to certify, decide or exercise discretion, do so fairly between the

Employer and the third party, not as an arbitrator but in accordance with the

skill and judgement expected from an independent professional advisor.

c If so authorised vary the obligations of any third party, subject to obtaining

the prior approval of the Employer to any variation which can have an

important effect on costs or quality or time (except in any emergency when

the Consultant Engineer shall inform the Employer as soon as practicable).

4.5 The Consultant Engineer shall not accept any trade commission, discount, allowance,

indirect payment or other consideration from any third party in connection with the

Project.

4.6 The Consultant Engineer shall not have the benefit whether directly or indirectly of

any royalty, gratuity or commission in respect of any patented or protected article or

process used on or for the purposes of the Project.

4.7 Subject as hereinafter mentioned the Consultant Engineer shall not specify any

particular trade or proprietary name in any documents or drawings prepared by him

in the course of the performance of the Services. In cases where in order to identify

the type and/or quality of any article or process the use of a trade or proprietary name

is unavoidable the Consultant Engineer shall nominate at least one such name and

shall add the words “or approved equivalent”. The prior approval of the Employer

shall be obtained to such nomination of a trade or proprietary name.


5 Information Supplied by the Employer

5.1 The Employer shall supply the Consultant Engineer in such time as may be

reasonable with the information and data in the Employer's possession as is relevant

to the Services and this Contract. Further to supplying this information and data the

Employer is under no obligation to secure information and data from other sources.

5.2 On all matters properly referred to him in writing by the Consultant Engineer the

Employer shall within a reasonable period of time, give his decision in writing so as

not to delay the Services.

5.3 The Employer shall not give an instruction to the Consultant Engineer which would

require him to act in a way that is outside his professional code of conduct.


PERSONNEL

6 Representatives

6.1 For the administration of this Contract each party shall designate an official or

individual to be his Representative.

7 Appointment and Replacement of Staff

7.1 The Services shall be performed by skilled, experienced and qualified members of

the Consultant Engineer’s staff who shall have the required permits and licences

issued by the appropriate Authority to work in Bahrain.

7.2 The Consultant Engineer shall submit for the approval of the Employer a complete

résumé of the training, qualifications and experience of each professional member of

the Consultant Engineer’s staff prior to his appointment in connection with the

Services. The Employer’s approval shall not unreasonably be withheld but shall not

relieve the Consultant Engineer of any of his duties and obligations under this

Contract. Following the Employer’s approval no change shall be made in the

Consultant Engineer’s professional staff without the Employer’s further approval,

which shall be duly requested by the Consultant Engineer at least thirty (30) days in

advance of any proposed change unless in the event of an emergency the Employer

shall accept a shorter period of notice.

7.3 Should the Employer for any reason whatsoever be of the opinion that any member

of the staff appointed by the Consultant Engineer is unsatisfactory, the Consultant

Engineer will upon receipt of written instructions from the Employer immediately

terminate the assignment of such person and make arrangements for a suitable

replacement within thirty (30) days, without in any way interrupting the performance

of the Services during this time.

7.4 Should the Consultant Engineer fail to comply with the Employer’s written

instructions, the Employer reserves the right to withhold payment in respect of the

proportion of the Remuneration that the Employer in his discretion deems attributable

to the unsatisfactory member of staff.

SECURITY

8 Performance Bond

8.1 If Article 11 of the Contract Agreement provides for the Consultant Engineer to

obtain and provide a Performance Bond, then the Consultant Engineer shall have

obtained and provided to the Employer prior to the date of the Contract Agreement

such Performance Bond in the sum stated in the Contract Agreement and

substantially in the form set out in Annex 1.


8.2 If the Consultant Engineer shall fail to comply with Clause 8.1, the Employer shall be

entitled to treat the Contract as repudiated by the Consultant Engineer and upon such

repudiation to recover all loss, cost and expense occasioned by such repudiation.


9 Contract Effective

9.1 This Contract is effective from the date of the latest signature necessary to complete

this Contract and shall govern the Services performed prior to that date.

10 The Consultant Engineer's Programme

10.1 The Services shall be performed in accordance with the Consultant Engineer’s

programme set out in the Third Schedule hereto (the Consultant Engineer’s

Programme) subject to extensions in accordance with this Contract.

10.2 Completion of each stage of the Services shall be deemed to occur upon receipt by

the Consultant Engineer of the approval thereof from the Employer.

10.3 If the Consultant Engineer at any time has reason to believe that the Time for

Completion of the Building Contract or the Consultant Engineer's Programme will be

delayed, the Consultant Engineer shall promptly notify the Employer of the fact, of

the expected period of delay, of the cause of the delay and the steps proposed by the

Consultant Engineer to minimise the delay.

10.4 Subject to any extension of time granted by the Employer in writing to the Consultant

Engineer, if the Consultant Engineer fails to complete any stage of the Services

within the period specified in the Consultant Engineer's Programme, then it should be

liable to pay to the Employer a sum of Bahrain Dinars equivalent to 1% of the

Remuneration of the relevant stage of the Services for each week of delay up to a

maximum of 5% of the Remuneration, being the penalty for delay. The penalty for

delay may be deducted by the Employer from the Consultant Engineer's

Remuneration but shall not relieve the Consultant Engineer from any of its

responsibilities and obligations under this Agreement.

11 Further Proposals

11.1 If requested by the Employer in writing, the Consultant Engineer shall submit

proposals for altering the Services.


12 Delays

12.1 If the Consultant Engineer considers the Services are impeded or delayed by the

Employer or any third party so as to increase the amount or duration of the Services,

the Consultant Engineer shall give immediate notice to the Employer of the

circumstances of such impediment/delay together with the additional Services

required, additional time for completion and associated costs.

12.2 In the event that such notice as described in 12.1 is issued by the Consultant Engineer

the Employer shall review the contents of the notice and confirm his acceptance in

full or in part, which shall not be unreasonably withheld. If approved by the

Employer, the increase shall be regarded as Additional Services and the time for

completion of the Services shall be increased accordingly. If rejected by the

Employer and the parties cannot reach agreement within seven (7) days of the

Employer notifying the Consultant Engineer of his rejection, the matter shall be

determined in accordance with Clause 26.

13 Abandonment Suspension or Termination

13.1 By Notice of the Employer

a The Employer may suspend all or part of the Services or terminate this

Contract by notice of at least thirty (30) days to the Consultant Engineer who

shall immediately make arrangements to stop the Services and minimise

expenditure.

b If the Employer considers that the Consultant Engineer is without good reason

not discharging his obligations he can inform the Consultant Engineer by

notice stating the grounds for the notice. If a satisfactory reply is not received

within fourteen (14) days the Employer can by a further notice terminate the

appointment of the Consultant Engineer under this Contract with immediate

effect.

c In the event that the whole or any part of the Project shall be postponed or

abandoned by the Employer, then the payment to be made to the Consultant

Engineer for the Services performed in respect of that part of the Project so

postponed or abandoned shall be calculated on the basis of the Remuneration

according to the proportion of the Services which has been wholly or partially

performed by the Consultant Engineer at such time. If the Project is finally

abandoned, then such payment shall be accepted by the Consultant Engineer

in full and final settlement of his entitlement to the Remuneration.


d If within one (1) year of its postponement the Employer shall wish to resume

the development of the postponed whole or part of the Project then any

payments made to the Consultant Engineer pursuant to this Clause shall rank

as payments on account and the Consultant Engineer shall be obliged to

resume the performance of the Services in accordance with the Contract and

the Employer shall pay the Consultant Engineer's Remuneration in accordance

with Schedule 4.

e If in the second year of its postponement the Employer shall wish to resume





the Consultant Engineer's Remuneration shall be revised by the parties

(subject to both party's approval). In the event that the Project or any part

thereof shall be postponed for a period longer than two (2) years then the

Contract or such part thereof shall, immediately on service of notice by the

Employer, be considered to have been abandoned.

13.2 By Notice of the Consultant Engineer

a After giving at least thirty (30) days notice to the Employer, the Consultant

Engineer can by a further notice of fourteen (14) days terminate this Contract,

or at his discretion without prejudice to the right to terminate, can suspend or

continue suspension of performance of the whole or part of the Services

i when twenty-eight (28) days after the due date for payment in accordance

with Clause 14.1 of this Contract, of an invoice it has not received payment of

that part of it which has not, by that time, been contested in writing by the

Employer

ii when Services have been suspended under Clause 13.1 and the period of

suspension has exceeded one (1) year.

iii if circumstances arise beyond the control of the Consultant Engineer which

the Consultant Engineer could not reasonably have foreseen and which make

it impossible for it to perform in whole or in part the Services in accordance

with this Contract

b provided that should the Employer’s default be remedied within such notice

period then this Contract shall automatically remain in full force and effect.


13.3 Rights and Liabilities

a If this Contract is terminated by either of the parties hereto in accordance with

the provisions of Clauses 13.1 and 13.2 above then the Employer shall have

the right to receive and use the originals of all documents and drawings

prepared by the Consultant Engineer prior to the date of such termination

providing the Consultant Engineer has received the Remuneration due to him

pursuant to Clause 13.1 c above.

b Termination of this Contract shall not prejudice or affect the accrued rights or

claims and liabilities of the parties.

13.4 Obligations at Termination

In the event that the Employer has appointed another consultant to complete the

Services following termination of the Consultant Engineer’s appointment under this

Contract by either party the Consultant Engineer shall:

a co-operate fully with such consultant for the orderly transfer of the Services;

and

b deliver to the Employer within two (2) weeks from the date of notice issued

by the Employer confirming that another consultant has been appointed all

documents and other work prepared by the Consultant Engineer pursuant to

this Contract.

If the Consultant Engineer does not comply with its obligations under this Clause

13.4 the Employer shall be entitled to withhold any monies owed to the Consultant

Engineer under this Contract.

THE CONSULTANT ENGINEER’S REMUNERATION

14 Payment to the Consultant Engineer

14.1 In consideration of the due and diligent performance of the Services by the

Consultant Engineer in accordance with the Contract the Employer shall pay to the

Consultant Engineer the Remuneration in accordance with the provisions of the

Fourth Schedule and within forty-two (42) days from the presentation to the

Employer by the Consultant Engineer of itemised invoices in the amount agreed by

the Employer and the Consultant Engineer (the due date).

14.2 All costs, penalties, damages or expenses for which under this Contract the

Consultant Engineer is liable to the Employer may be deducted by the Employer

from any monies due or becoming due to the Consultant Engineer under this Contract

or may be recovered by action at law or otherwise from the Consultant Engineer.


14.3 If the Consultant Engineer wishes payment of any monies due under this Contract to

be made to his bank then it shall arrange for its bank to complete and shall then itself

complete and deliver to the Employer a Form of Request for Payment by Bank

Transfer in the form set out in Annex 2. Any such payment by the Employer to the

Consultant Engineer’s bank shall be subject to and on the basis of the conditions and

provisions set forth in the Form of Request for Payment by Bank Transfer.

14.4 In the event of failure by the Employer to make payment in accordance with Clauses

14.1, 14.2 and 14.3, the Employer shall pay to the Consultant Engineer interest upon

any overdue payment at the rate stated in Article 12 of the Contract Agreement from

the latest date when the payment should have been made.

15 Additional Services

15.1 The Employer may at any time require the performance by the Consultant Engineer

of Additional Services in relation to the Project, which additional services the

Consultant Engineer shall duly perform in consideration of appropriate additional

remuneration to be mutually agreed in writing in advance between the parties hereto.

15.2 The above Additional Services shall not include the correction or re-execution of all

or any part of any stage of the Services in the event that such correction or re-

execution is required by the Employer as a result of the action, inaction, default or

negligence of the Consultant Engineer or any member of his staff.

15.3 In the event that after the completion of any stage of the Services the Employer shall

require the complete or partial modification of any aspect of the Services by virtue of

a revision of the design brief or of the Employer’s requirements in relation to the

Project then such modification shall constitute Additional Services and shall attract

additional remuneration as shall be mutually agreed in writing in advance between

the parties hereto.

15.4 In the event that the whole or any part of the Project shall be damaged or destroyed

before its completion then provided such damage or destruction is not attributable to

the action, inaction, default or negligence of the Consultant Engineer or any member

of his staff, any Additional Services required by the Employer to be performed by the

Consultant Engineer as a result of such damage or destruction shall attract such


the parties hereto.

16 Currency of Payment

The currency applicable to this Contract is Bahrain Dinars, unless otherwise agreed

between the parties.


17 Independent Audit

17.1 Except where this Contract provides for lump sum payments, the Consultant

Engineer shall maintain up-to-date records which clearly identify relevant time and

expense.

17.2 Except where this Contract provides for lump sum payments, not later than twelve

(12) months after the completion of the Services, the Employer can at notice of not

less than seven (7) days require that a reputable firm of accountants nominated by

him audit any amount claimed by the Consultant Engineer by attending during

normal working hours at the office where the records are maintained.

INSURANCES

18 Indemnity and Insurance

18.1 Indemnity

The Consultant Engineer shall be liable for and shall indemnify the Employer against

any expense, liability, loss, claim or proceedings whatsoever in respect of death or

personal injury to any person or material or physical loss of or damage to any

property whatsoever which may arise out of or in consequence of the performance of

the Contract unless due to any act or neglect of the Employer or of any person for

whom the Employer is responsible.

18.2 Insurance

a Third Party Insurance

Without prejudice to its liability to indemnify the Employer under Clause 18.1

the Consultant Engineer shall on or before the date of Contract in the joint

names of the Employer and the Consultant Engineer take out insurances for at

least the amount stated in Article 9 of the Contract Agreement against its

liability for any death of or injury to any person (including any employee of

the Employer) or any damage or loss to any property (including any property

of the Employer) caused by or arising out of or in consequence of the

execution of the Contract and as are necessary to cover the liability of the

Consultant Engineer under Clause 18.1. Such insurance shall include cross

liability clauses indemnifying each of the jointly insured against claims made

on it by the other.

b Professional Indemnity Insurance

The Consultant Engineer shall take out and maintain professional indemnity

insurance, without unusual or onerous conditions attached to it, in the amount

stated in Article 9 for any one claim with the number of claims unlimited,


commencing no later than the date of the Contract Agreement and ending ten

(10) years after the date the last of the Services was completed.

c Recognised Insurers

The insurance policies required under Clause 18 shall be taken out with one of

the insurance companies for the time being recognised by the Employer in

terms approved by the Employer, which approval shall not be unreasonably

withheld and the Consultant Engineer shall ensure the continued adequacy of

the insurances at all times in accordance with the terms of the Contract.

d Insurance Policies

As and when required so to do by the Employer the Consultant Engineer shall

produce for inspection the insurance policies required under Clause 18 and the

receipts for payment of the current premiums and in default of the Consultant

Engineer so insuring or continuing to insure as required the Employer may

itself insure against any risk with respect to which the default shall have

occurred and may deduct a sum or sums equivalent to the amount paid or

payable in respect of such premiums from any monies due or to become due

to the Consultant Engineer, or recover the same as a debt due from the

Consultant Engineer. The Employer reserves the right to suspend all or part of

the Services by immediate notice to the Consultant Engineer until the

Consultant Engineer takes out such insurances. Any costs Incurred by the

Employer as a result of such suspension shall be borne by the Consultant

Engineer and such suspension shall not entitle the Consultant Engineer to an

extension of the Consultant Engineer's Programme or any additional

Remuneration.

18.3 The above insurance policies shall in no way limit the liability of the Consultant


GENERAL PROVISIONS

19 Law of Contract

This Contract is made in Bahrain and is subject to the laws of Bahrain.

20 Laws, Notices, Permits and Charges

The Consultant Engineer shall give all notices and shall obtain all visas, licences and

permits as may be required by the relevant Laws and shall pay all appropriate charges

and fees therefore and shall pay all such custom duties, levies and taxes as may be

required by Law and shall keep the Employer indemnified against all penalties and

liability of every kind for breach of any such Laws.


21 Intellectual Property Rights

21.1 The Consultant Engineer warrants to the Employer that no design or document that it

prepares and nothing else that it contributes to the Works shall infringe any

Intellectual Property Rights, and undertakes to indemnify the Employer in respect of

any legal liability and related costs arising out of or in connection with any such

infringement of any Intellectual Property Rights.

21.2 The Consultant Engineer shall retain Intellectual Property Rights in all documents

that it prepares in relation to the Works, and as beneficial owner grants to the

Employer an irrevocable non-exclusive royalty-free licence to copy and use all such

designs and documents for any purpose relating to completion and use of the Works,

in all cases with the right to transfer and sub-licence such rights for the same

purposes, and shall ensure that such licence shall have the support of such rights from

third parties as are necessary to allow the grant of such licence.

21.3 The Consultant Engineer shall not be liable for the use of any document that it

prepares for any purpose other than for which it was agreed to be prepared as stated

in, or reasonably inferred from, the Contract.

21.4 Subject to the Intellectual Property Rights described in Clause 21.2, ownership in all

the existing documents and other physical embodiments of designs relating to the

Works shall transfer from the Consultant Engineer to the Employer immediately prior

to the Consultant Engineer suffering an event of termination of his employment as

described in Clause 13. In such circumstances, the Consultant Engineer shall hand

over all such documents and designs to the Employer immediately upon request.

21.5 In the event of any claim being made or action being brought against the Employer

arising out of the matters referred to in this Clause 21 the Consultant Engineer shall

be promptly notified thereof and may at his own expense conduct all negotiation for

the settlement of the same and any litigation that may arise therefrom. The Employer

shall not unless and until the Consultant Engineer shall have failed to take over the

conduct of the negotiations or litigation make any admission which might be

prejudicial upon the Consultant Engineer having first given to the Employer such

reasonable security as shall from time to time be required by the Employer to cover

the amount ascertained or agreed or estimated as the case may be of any

compensation, damages, expenses and costs for which the Employer may become

liable in respect of such infringement as aforesaid. The Employer shall, at the request

of the Consultant Engineer, afford all available assistance for the purpose of

contesting any such claim or action and shall be repaid any expenses incurred in so

doing.


22 Trainees

The Employer reserves the right during any stage of the Services to appoint any

reasonable number of suitably qualified trainees to be trained by the Consultant

Engineer. All salaries and costs in respect of such trainees shall be borne by the

Employer and the Consultant Engineer shall be reimbursed net, upon production of

invoices, any direct additional costs arising provided that any such costs shall be

approved in advance by the Employer.

23 Assignment and Subletting

23.1 The Consultant Engineer shall not, without the prior consent of the Employer, assign

or transfer the benefit or duties of this Contract or any part thereof provided that it

shall be lawful for the Consultant Engineer at any time to take into partnership

another partner or partners whereupon it or they or the survivors of them shall

thenceforth automatically be deemed to be included in the expression “the Consultant

Engineer” for all the purposes of this Contract.

23.2 Notwithstanding the provisions of Clause 23.1 above the Consultant Engineer may

subject to the prior approval of the Employer sub-let to a specialist sub-consultant

any part of the Services which is customary or of necessity and because of its nature

required to be performed by such a specialist sub-consultant. The provisions of

Clause 23.1 shall apply to the staff of any approved specialist sub-consultant but the

Employer’s approval of any specialist sub-consultant or any member of the staff of

such specialist sub-consultant shall in no way relieve the Consultant Engineer of any

of its duties and obligations under this Contract.

24 Confidentiality

The Consultant Engineer shall not, except where strictly necessary for the purposes

of the Contract, during or after the expiry of this Contract disclose or suffer any

employee of the Consultant Engineer to disclose to any person whatsoever any

information of which the Consultant Engineer or any such employee has or shall

hereafter become possessed by virtue of this Contract. The Consultant Engineer shall

keep with inviolable secrecy any document or drawings supplied by the Employer

pursuant to this Contract and shall not use the same except in the performance of the

Services.

25 Notices

25.1 Any notice to be given under the terms of this Contract shall be properly served by

sending the same by registered mail or fax to the following respective addresses and

fax numbers of the parties hereto:


The Employer:

Attn:

Fax.

The Consultant Engineer:

Attn:

Fax.

25.2 The parties hereto shall promptly notify one another of any change of address or fax

number.

DISPUTES

26.1 Settlement of Disputes

If any dispute or difference of any kind whatsoever shall arise between the Employer

and the Consultant Engineer in connection with or arising out of the Contract

(whether during the progress of the Contract or after its completion and whether

before or after any determination abandonment or breach of the Contract) both parties

shall endeavour to amicably resolve the dispute. Unless the Contract shall have

already been determined or abandoned the parties shall in every case continue to

proceed with the Services unless and until the same shall be referred to Mediation

pursuant to Clause 26.2 (if stated in Article 10 of the Contract Agreement to apply)

or an Arbitration Committee as appointed in accordance with Clause 26.3.

26.2 Mediation (if applicable)

If this Clause 26.2 is stated to be applicable in Article 10 of the Contract Agreement

and if the parties are unable to reach agreement on any matter then the matter shall

immediately be referred by the parties to a neutral mediator (the Mediator) whose

costs shall be paid in equal shares by the parties and the following clauses shall

apply:

a if the parties are unable to agree on the choice of a Mediator, or if the chosen

Mediator is unable or unwilling to act, then either party may immediately

apply to the organisation stated in Article 10 of the Contract Agreement, to

appoint a Mediator;

b the parties shall, within fourteen (14) days of the appointment of a Mediator,

or any other such period as the parties may subsequently agree, jointly meet


with it to agree a programme for the exchange of any relevant information and

the structure to be adopted for the negotiations;

c all negotiations shall be conducted in confidence and are not to be referred to

in any concurrent or subsequent proceedings, unless they conclude with a

written legally binding agreement. If the parties accept the Mediator's

recommendations, or otherwise reach agreement on the resolution of the

dispute, such agreement shall be recorded in writing and, once signed by the

designated representatives, shall be binding on the parties;

d if no agreement is reached, either party may invite the Mediator to provide to

both parties a non-binding opinion in writing. Such opinion shall not be used

in evidence in any concurrent or subsequent proceeding without the prior

written consent of both parties;

e the parties shall bear their own costs of preparing and submitting evidence to

the Mediator. If the Mediator finds that the mediation has been initiated or

conducted frivolously or vexatiously, then it shall have the power to order the

party so initiating or conducting the mediation to pay the reasonable costs of

the other party for preparing for and attending the mediations and if the costs

cannot be agreed, they shall be assessed by the Mediator, whose decision shall

be binding on the parties; and

f if the parties fail to reach agreement within twenty-eight (28) days of the

Mediator being appointed, or such other period as the parties may agree, then

both parties shall be entitled to submit the dispute to arbitration under the

terms of Clause 26.3. With the agreement of the parties, the Mediator shall

record those facts that the parties have agreed. All other matters in dispute

shall be referred to an Arbitration Committee who shall be allowed access to

the recorded and agreed facts. The Mediator's role shall cease on the

appointment of the Arbitration Committee. The Mediator shall not be

available to appear as a witness in the arbitration, or to provide any additional

evidence obtained during the mediation.

26.3 Arbitration

If either the Employer or the Consultant Engineer is dissatisfied with the process of

resolving the dispute amicably and the option of Mediation as defined in Clause 26.2

is not applicable, (if stated in Article 10 of the Contract Agreement to be not

applicable) then either the Employer or the Consultant Engineer may require that the

matter be referred to the arbitration of an arbitration committee (the Arbitration

Committee) to be formed of three (3) members in the following manner: the

Employer and the Consultant Engineer shall each appoint one member thereto: if one

party fails so to appoint within fifteen (15) days of being requested by the other party

so to do, H.E. Minister of Justice of the Kingdom of Bahrain (upon a written request


from the party who has so appointed a member) shall appoint a member for the party

who has so failed to appoint. The third member, who shall be the Chairman of the

Arbitration Committee, shall be appointed reasonably promptly by agreement

between the other two members; if such agreement is not reached within fifteen (15)

days after their appointment, the said H.E. Minister of Justice of the Kingdom of

Bahrain shall appoint the third member upon the request of either party.

In any arbitration:

a the award of the Arbitration Committee shall be reached if not unanimously

by a majority of the Arbitration Committee;

b the award of the Arbitration Committee shall be final and binding on the

parties;

c the costs of the arbitration shall be within the discretion of the Arbitration

Committee; and

d such arbitration shall take place in Bahrain and shall be conducted in the

English Language.


ANNEX 1

TO CONDITIONS OF CONTRACT

FORM OF PERFORMANCE BOND

(see Clause 8 of the Conditions of Contract)

To be engrossed on Insurance Company / Bank headed paper and addressed to the Employer.

No terms shall be deleted from this Performance Bond nor shall any terms be added

Bank ref: Dated:

Dear Sirs,

Performance Bond number:

Project:

Consultant Engineer:

Date of Contract:

In consideration of you, [ ] (the Employer) having agreed to enter into the

above contract (the Contract) with [ ] (the Consultant Engineer), we, the [

] Insurance Company / Bank of [ ] irrevocably and unconditionally guarantee

to the Employer subject to the terms below, that the Consultant Engineer shall perform and

fulfil all undertakings, covenants, terms and conditions of the Contract for [ ] (the Services)

and any extensions of the Contract, and that the Consultant Engineer shall perform and fulfil all

the undertakings, covenants, terms and conditions of the Contract and all changes,

modifications, additions or amendments to the Contract that may be made, and that the

Consultant Engineer shall also fully indemnify, defend and hold harmless the Employer from

all costs, liability and damage which the Employer may suffer by reason of the failure of the

Consultant Engineer so to do.

In the event that the Employer, in its absolute discretion, gives written notice to us at any time

of the failure of the Consultant Engineer to perform or fulfil any of the acts or obligations set

out in the above paragraph, we unconditionally and irrevocably undertake, without any right of

set off or counterclaim whether on our behalf or on behalf of the Consultant Engineer, to pay to

the Employer the sum of BD[ ] ([ ]) being an amount equal to [ ] per cent ([


]%) of the price recorded in the Contract. Such written notice of the Employer shall

be conclusively binding on us for all purposes under this Performance Bond.

We further agree that any change, modification, addition or amendment which may be made to

the terms and conditions of the Contract, or to the Services to be performed pursuant to the

Contract, or to the payments to be made on account pursuant to the Contract, or any extension

of the time of performance of the Services or any settlement, promise not to sue or other action

on the part of either the Employer or the Consultant Engineer to the other shall not in any way

release us from our continuing liability under this Performance Bond, and we expressly waive

our right to consent to or to receive notice of any such change, modification, addition,

amendment, extension, settlement, promise or action.

This Performance Bond shall be valid until the [ ] day of [ ] 20[ ].

This Performance Bond shall be governed by and interpreted under the Laws of the Kingdom of

Bahrain. It shall be returned to us on its expiry.

SIGNED

(as appropriate by properly authorised officials for and on behalf of the guaranteeing

Bank / Insurance Company)

To:


ANNEX 2


STANDARD FORM OF

REQUEST FOR PAYMENT BY DIRECT BANK TRANSFER

To be engrossed on Consultant Engineer’s headed paper and addressed to the Employer.

No terms shall be deleted from this Request nor shall any terms be added

To: The Employer

Re: Project name:

Contract no:


Dear Sirs,

We refer to the Contract dated [ ] for [ ]

(the Contract) between you (the Employer) and us (the Consultant Engineer). We have made

no previous request to you regarding the method of payment of monies falling due under the

Contract (the Contract Proceeds).

We hereby request and authorise you to pay as from the date of this Request the Contract

Proceeds into our Account No.[ ] with [ ] (the Bank).

In submitting this authority and Request it is hereby agreed as follows:

a the receipt of the Bank shall constitute a complete discharge in favour of the

Employer of all payments so made;

b the Consultant Engineer undertakes to raise no claim in respect of and to accept

liability for and to indemnify and hold harmless the Employer from any and all

claims made by third parties including the Bank and from any and all costs and losses

arising in connection with:

i the making by the Employer of any payments of the Contract Proceeds to

the Bank pursuant to this authority and Request;


ii the failure of the Employer howsoever caused to commence, continue or

cease making any payments of the Contract Proceeds to the Bank pursuant

to this authority and Request provided that in such case payment is

otherwise made as required by law or order of the Courts of the Kingdom

of Bahrain.

c This authority and Request neither is nor constitutes notice of and assignment of the

Contract Proceeds in favour of the Bank.

d Contract Proceeds shall mean those sums which are due to the Consultant Engineer

under the Contract between the Employer and the Consultant Engineer and which

sums are subject to any deductions or set off made by the Employer in accordance

with the provisions of the Contract.

e This authority and Request cannot be varied or cancelled without the prior written

consent of the Bank.

Yours faithfully,

CONSULTANT ENGINEER:

Signature:

1. We hereby confirm our understanding and unqualified acceptance of the terms of this

letter and agree that neither this letter nor any payment made pursuant to this letter

shall create any contractual or fiduciary relationship between the Employer and the

Bank.

Countersigned:

for and on behalf of the Bank.

Dated:

2. We hereby acknowledge receipt of the original of this letter and confirm that we have

no objection to the method of payment suggested.

Countersigned:

for and on behalf of the Employer.

Dated:


SCHEDULES

The information contained in Schedules 1-4 is indicative only and shall vary in relation to each

project.


THE FIRST SCHEDULE

THE PROJECT

1. The Project comprises:

2. The target cost for the Project (the Target Cost) shall be Bahrain Dinars: [ ] BD [ ]

and shall be subject to revision from time to time on the basis of probable

construction costs


THE SECOND SCHEDULE

THE SERVICES

Note:- When Consultant QS is appointed directly by Employer, Items 4 & 5 detailed below

have to be modified.

The Services shall comprise the design of the Project and shall include but not be limited to the

following:

1. Investigation

2. Preliminary Design

3. Detailed Design

4. Working Drawings and Tender Documents

5. Tendering and Recommendation of Contractor

6. Building Permit

7. Monthly Reports

The design of the Project is described in more detail below:

1 Investigation

a The Consultant Engineer shall investigate all available data relevant to the

Project and shall initiate and supervise all normal soil investigations on the

site of the Project.

b The Consultant Engineer shall advise the Employer of the need for any

special surveys, investigations or tests necessary for the safe and proper

design and execution of the Project, shall with the Employer’s prior written

approval arrange for these to be carried out on the Employer’s behalf and

shall study, analyse and report in full to the Employer on the results thereof.

c The Consultant Engineer shall approach all relevant Authorities in order to

establish basic approval criteria relevant to the design and execution of the

Project.

2 Preliminary Design

a The Consultant Engineer shall prepare and present for the Employer’s

approval outline plans for the Project which meet the Employer’s

requirements and objectives in conformity with the Contract, the Target Cost

and the results of the Consultant Engineer’s investigations described in

paragraph 1 (the Preliminary Design).


b The Consultant Engineer shall submit to the Employer a probable

construction costs based on current area, volume and cost in Bahrain.

3 Detailed Design

a Upon receipt of written approval from the Employer of the Preliminary

Design the Consultant Engineer shall prepare for the Employer’s approval

drawings, designs and specifications to a sufficient level of detail to fix and

describe the size and character of the Project (the Detailed Design). The

Consultant Engineer shall submit the Detailed Design together with such

other information as may be required to the relevant Authorities for planning

and approval and (subject to reimbursement by the Employer) shall pay any

necessary fees and shall report to the Employer as soon as planning approval

has been granted.

b The Consultant Engineer shall submit to the Employer a statement of probable


4 Working Drawings and Tender Documents

Upon receipt of written approval from the Employer of the Detailed Design the

Consultant Engineer shall prepare:

a Working drawings of the Project (the Working Drawings).

b All such documents as together with the Working Drawings shall enable the

Employer to put the Project to tender (the Tender Documents). The Tender

Documents shall include general and special conditions of contract,

invitations to tender, forms of tender, architectural, electrical and mechanical

specifications and bills of quantities/schedules of rates and prices and such

other forms and documents as may from time to time be required by the

Employer. The Consultant Engineer may allow in the Tender Documents for

the provision and maintenance by the selected Contractor of air-conditioned,

furnished office accommodation for the Consultant Engineer on the site of the

Project and for the connection and maintenance of water, electricity and

telephone services for such accommodation at no cost to the Consultant

Engineer (with the exception only of international telephone calls, telexes and

cables). A draft copy of the Tender Documents shall be submitted to the

Employer for approval not less than one month prior to going to tender.

c Priced bills of quantities/schedule of rates and prices based on the latest

estimated rates and realistic cost of materials prevailing in Bahrain which bills

of quantities/schedule of prices shall be used for comparison of tenders

received (the Rates and Priced Documents).


5 Tendering and Recommendation of Contractor

Upon receipt of written approval from the Employer of the Working Drawings, the

Tender Documents and the Priced Documents and subject to formal planning

approval having been granted for the execution of the Project the Consultant

Engineer shall undertake the following duties (the Tender Procedure):

a Pre-qualifying and selection, after obtaining the Employer’s approval, of

suitable contractors to participate in the tender for the execution of the

Project.

b Assisting in the tender as required and advising the Employer on tenders

received, including providing financial and technical evaluations of such

tenders and submitting a detailed written recommendation regarding the

award of the Contract for the execution of the Project. No tender shall be

accepted or award placed by the Consultant Engineer except on behalf of the

Employer and with his prior authority in writing.

c In the event that no tender for the Project is received which is satisfactory to

the Employer in every respect and which is for a total amount less than the

Target Cost and provided that:

i any excess over the Target Cost is not due to delays by the Employer in the

award of a Building Contract; or

ii the scale of the project finally set by the Employer is not such as to render the

Target Cost inadequate in the event that the Consultant Engineer shall have so

advised the Employer prior to the issue of the Tender Documents

then the Consultant Engineer shall without any further charge to the Employer

take all necessary additional action either by redesign or by alteration to the

scope of the Project as requested by the Employer to ensure that subsequent

satisfactory tenders are submitted within the Target Cost.

d Advising on the preparation and award of the Building Contract.

e Engrossing the approved form of Building Contract and arranging for the

signing of the Building Contract and for the delivery to the Employer of the

signed and dated Building Contract.

6 Building Permit

It is the Consultant Engineer’s responsibility to apply for the building permit in

sufficient time that the permit is available to allow construction to start as scheduled.


7 Monthly Reports

The Consultant Engineer shall submit monthly reports which shall advise on:

o Milestone events since the previous report

o Progress compared to programme

o Financial implications of instructions received and anticipated to be received

from the Employer

o Financial implications as a result of other factors

o Information or instructions required from the Employer and the date by when it

is required in order to maintain programme

o Milestone events programmed to occur within the month following the report.


THE THIRD SCHEDULE

THE CONSULTANT ENGINEER'S PROGRAMME

The Consultant Engineer shall complete the Services in accordance with the following

programme commencing:[ ] (the Commencement Date):

a The Preliminary Design and the statement of probable construction costs

within [ ] ([ ]) weeks from the Commencement Date.

b The Detailed Design and the statement of probable construction costs within [

] ([ ]) weeks from the Commencement Date.

c The Working Drawings, the Tender Documents and the Priced Documents


d The Tender Procedure within [ ] ([ ]) weeks from the

Commencement Date.


THE FOURTH SCHEDULE


In consideration of the due and diligent performance of the Services the Employer shall pay the

Consultant Engineer a total inclusive fee made up as follows:

a A sum equivalent to the lesser of [ ] percent ([ ]%) of the actual

cost of execution of the project and BD [ ]

b The fee described in this Schedule shall be payable in the following manner:

i [ ] percent ([ ]%) of the Preliminary Design and construction

costs on the approval by the Employer the statement of probable construction

costs

ii [ ] percent ([ ]%) on the approval by the Employer of the

Detailed Design and the statement of probable construction costs.

iii [ ] percent ([ ]%) on the approval by the Employer of the

Working Drawings and the Priced Documents.

c Prior to receipt of tenders, payment under paragraph a above of this Schedule

shall be calculated in accordance with the Target Cost. Such payment shall

not be regarded as a valuation of the duties performed at the respective stages

but shall rank solely as payment on account towards the total fee payable.

d The above fees are fully inclusive of all costs and overheads that the

Consultant Engineer may incur at any time during the performance of the

Services.

e The above fees shall be payable in Bahrain Dinars, unless otherwise agreed

between the parties, within forty-two (42) days from the presentation to the

Employer by the Consultant Engineer of itemised invoices in the appropriate

amounts.

STANDARD

CONTRACT AGREEMENT


2009


Copyright-Ministry of Works ConsultEngPost09



CONTENTS



1. Definitions 5

2. Interpretation 7






PERSONNEL



SECURITY






12. Delays 12











Copyright-Ministry of Works ConsultEngPost09

INSURANCES


18.1 Indemnity 16

18.2 Insurance 16

GENERAL PROVISIONS




22. Trainees 19



25. Notices 20

DISPUTES



26.3 Arbitration 22

ANNEX 1 FORM OF PERFORMANCE BOND 23

ANNEX 2 FORM OF KEY DATES SCHEDULE 25

ANNEX 3 FORM OF REQUEST FOR PAYMENT BY BANK TRANSFER 28



THE THIRD SCHEDULE - THE CONSULTANT ENGINEER'S PROGRAMME 37

THE FOURTH SCHEDULE -THE CONSULTANT ENGINEER'S

REMUNERATION 38

Copyright-Ministry of Works ConsultEngPost09 1


(PROJECT TITLE)



BETWEEN


MINISTRY OF WORKS of P.O. BOX 5, Bahrain (the Employer); and







conditions set out in this Contract.







c the Key Dates Schedule [Delete if not applicable]

d the Letter of Award [Delete if not applicable]





















Contract.



appropriate international standards duly approved by the Employer

(including, where appropriate, COEPP).



any other remedies available to the Employer under this Agreement, and





Conditions of Contract shall be not less than Bahrain Dinars [ ] (BD [ ]) for any

one incident with the number of incidents unlimited and the amount of professional



claims unlimited.

10 The Key Dates Schedule set out in Annex 2 to the Conditions of Contract shall apply

and the Employer and the Consultant Engineer shall adhere to the Schedule. [Delete

if not applicable].

The Core Group and Early Warning provisions set out in the Second Schedule of the

Conditions of Contract shall apply and the Consultant Engineer shall participate in


the Core Group (in accordance with the Second Schedule of the Contract) from the

date of this Contract and the members of the Core Group shall be:

For the Employer –

For the Contractor –

For the Consultant Engineer -

For the Quantity Surveyor –

If the Contractor and/or Quantity Surveyor has not been appointed, their identity and

their Core Group member shall be notified to the Consultant Engineer following their

appointment. Upon notification to the Consultant Engineer the relevant party shall

become a member of the Core Group.

[Delete if not applicable]




applicable]





([ ]%) per annum.




Contract Agreement.



MINISTRY OF WORKS

in the presence of:



in the presence of:



1 Definitions





hereof.





Contractor.


Practice.










Core Group if stated in Article 11 of the Contract Agreement to be applicable, the

Core Group shall be formed of the individuals identified in Article 11 of the Contract

Agreement as Core Group members, subject only in each case to replacement in

accordance with the Second Schedule and the Core Group will carry out the

functions set out in the Second Schedule and references to the Core Group shall

apply to each and all Core Group members.



Early Warning if stated in Article 11 of the Contract Agreement to be applicable,

means early warning in accordance with the system described in the Second

Schedule







Key Dates Schedule if stated in Article 10 of the Contract Agreement to be

applicable, means any key dates schedule as described in the Second Schedule and

forming part of the Contract.



authority in force from time to time in Bahrain.








form set out in Annex 1 to the Conditions of Contract

Project means the project named in the First Schedule



Remuneration means the remuneration to be paid by the Employer to the

Consultant Engineer further to the Fourth Schedule or such other sums as may

become due under the Contract.







Second Schedule




functionality.





2 Interpretation






Gregorian calendar.











not a Working Day, such date shall be extended to the next succeeding Working

Day.



3 Scope of Services



economical manner.




Employer.




















the Project.










4.3 The Consultant Engineer shall perform the Services in such manner and at such

times that no negligent or intentional act, omission or default by the Consultant

Engineer in relation to the Services shall constitute, cause or contribute to any breach

by the Employer of any of the Employer’s obligations in respect of the Project of

which the Consultant Engineer is aware.






Schedule.










Project.










shall add the words "or approved equivalent". The prior approval of the Employer









Employer shall, within a reasonable period of time, give his decision in writing so as




PERSONNEL

6 Representatives


























proportion of the Remuneration that the Employer in his discretion deems

attributable to the unsatisfactory member of staff.

SECURITY

8 Performance Bond






8.2 If the Consultant Engineer shall fail to comply with Clause 8.1, the Employer shall

be entitled to treat the Contract as repudiated by the Consultant Engineer and upon

such repudiation to recover all loss, cost and expense occasioned by such

repudiation.






10.1 The Services shall be performed in accordance with the Consultant Engineer’s

programme set out in the Third Schedule hereto (the Consultant Engineer’s

Programme) subject to extensions in accordance with this Contract.




Completion of the Building Contract or the Consultant Engineer's Programme will

be delayed, the Consultant Engineer shall promptly notify the Employer of the fact,


of the expected period of delay, of the cause of the delay and the steps proposed by

the Consultant Engineer to minimise the delay.

10.4 Subject to any extension of time granted by the Employer in writing to the

Consultant Engineer, if the Consultant Engineer fails to complete any stage of the

Services within the period specified in the Consultant Engineer's Programme, then it

should be liable to pay to the Employer a sum of Bahrain Dinars equivalent to 1% of

the Remuneration of the relevant stage of the Services for each week of delay up to a








12 Delays






12.2 In the event that such notice as described in 12.1 is issued by the Consultant

Engineer the Employer shall review the contents of the notice and confirm his

acceptance in full or in part, which shall not be unreasonably withheld. If approved

by the Employer, the increase shall be regarded as Additional Services and the time

for completion of the Services shall be increased accordingly. If rejected by the


Employer notifying the Consultant Engineer of his rejection the matter shall be







expenditure.

b If the Employer considers that the Consultant Engineer is without good

reason not discharging his obligations he can inform the Consultant Engineer


by notice stating the grounds for the notice. If a satisfactory reply is not

received within fourteen (14) days the Employer can by a further notice

terminate the appointment of the Consultant Engineer under this Contract

with immediate effect.














the Employer shall pay the Consultant Engineer’s Remuneration in

accordance with Schedule 4.






the Consultant Engineer’s Remuneration shall be revised by the parties

(subject to both party's approval). In the event that the Project or any part

thereof shall be postponed for a period longer than two (2) years then the







continue suspension of performance of the whole or part of the Services:


with Clause 14.1 of this Contract, of an invoice it has not received payment

of that part of it which has not, by that time, been contested in writing by the

Employer;



suspension has exceeded one (1) year;




with this Contract




a If this Contract is terminated by either of the parties hereto in accordance

with the provisions of Clauses 13.1 and 13.2 above then the Employer shall

have the right to receive and use the originals of all documents and drawings











and




this Contract.















from any monies due or becoming due to the Consultant Engineer under this

Contract or may be recovered by action at law or otherwise from the Consultant

Engineer.


























the parties hereto.




of his staff, any Additional Services required by the Employer to be performed by

the Consultant Engineer as a result of such damage or destruction shall attract such


the parties hereto.







expense.






INSURANCES

18 Indemnity and Insurance

18.1 Indemnity







18.2 Insurance


Without prejudice to its liability to indemnify the Employer under Clause

18.1 the Consultant Engineer shall on or before the date of Contract in the


joint names of the Employer and the Consultant Engineer take out insurances

for at least the amount stated in Article 9 of the Contract Agreement against

its liability for any death of or injury to any person (including any employee

of the Employer) or any damage or loss to any property (including any

property of the Employer) caused by or arising out of or in consequence of

the execution of the Contract and as are necessary to cover the liability of the



on it by the other.




stated in Article 9 for any one claim with the number of claims unlimited,


(10) years after the date the last of the Services was completed.


The insurance policies required under Clause 18 shall be taken out with one

of the insurance companies for the time being recognised by the Employer in






produce for inspection the insurance policies required under Clause 18 and

the receipts for payment of the current premiums and in default of the

Consultant Engineer so insuring or continuing to insure as required the

Employer may itself insure against any risk with respect to which the default

shall have occurred and may deduct a sum or sums equivalent to the amount

paid or payable in respect of such premiums from any monies due or to

become due to the Consultant Engineer, or recover the same as a debt due

from the Consultant Engineer. The Employer reserves the right to suspend all

or part of the Services by immediate notice to the Consultant Engineer until

the Consultant Engineer takes out such insurances. Any costs incurred by the




Remuneration.




GENERAL PROVISIONS

19 Law of Contract




permits as may be required by the relevant Laws and shall pay all appropriate

charges and fees therefore and shall pay all such custom duties, levies and taxes as

may be required by Law and shall keep the Employer indemnified against all

penalties and liability of every kind for breach of any such Laws.












purposes, and shall ensure that such licence shall have the support of such rights

from third parties as are necessary to allow the grant of such licence.






Works shall transfer from the Consultant Engineer to the Employer immediately

prior to the Consultant Engineer suffering an event of termination of his employment

as described in Clause 13. In such circumstances, the Consultant Engineer shall

hand over all such documents and designs to the Employer immediately upon

request.





the settlement of the same and any litigation that may arise therefrom. The

Employer shall not unless and until the Consultant Engineer shall have failed to take

over the conduct of the negotiations or litigation make any admission which might be








doing.

22 Trainees












thenceforth automatically be deemed to be included in the expression "the

Consultant Engineer" for all the purposes of this Contract.





Clause 23.1 shall apply to the staff of any approved specialist sub-consultant but the

Employer’s approval of any specialist sub-consultant or any member of the staff of

such specialist sub-consultant shall in no way relieve the Consultant Engineer of any

of its duties and obligations under this Contract.


24 Confidentiality








Services.

25 Notices




The Employer:

Attn:

Fax.


Attn:

Fax.


number.

DISPUTES





before or after any determination abandonment or breach of the Contract) both

parties shall endeavour to amicably resolve the dispute. Unless the Contract shall

have already been determined or abandoned the parties shall in every case continue

to proceed with the Services unless and until the same shall be referred to Mediation









apply:




appoint a Mediator;



with it to agree a programme for the exchange of any relevant information

and the structure to be adopted for the negotiations;
















cannot be agreed, they shall be assessed by the Mediator, whose decision

shall be binding on the parties; and












26.3 Arbitration
















In any arbitration:




parties;


Committee; and


English Language.


ANNEX 1




To be engrossed on Insurance Company/Bank headed paper and addressed to the Employer.


Bank ref: Dated:

Dear Sirs,

Performance Bond number:

Project:


Date of Contract:


above contract (the Contract) with [ ] (the Consultant Engineer), we, the [ ]

Insurance Company / Bank of [ ] irrevocably and unconditionally guarantee


fulfil all undertakings, covenants, terms and conditions of the Contract for [ ]

(the Services) and any extensions of the Contract, and that the Consultant Engineer shall

perform and fulfil all the undertakings, covenants, terms and conditions of the Contract and all

changes, modifications, additions or amendments to the Contract that may be made, and that the

Consultant Engineer shall also fully indemnify, defend and hold harmless the Employer from

all costs, liability and damage which the Employer may suffer by reason of the failure of the

Consultant Engineer so to do.



out in the above paragraph, we hereby unconditionally and irrevocably undertake, without any

right of set off or counterclaim whether on our behalf or on behalf of the Consultant Engineer,

to pay to the Employer the sum of BD[ ] ([ ]) being an amount equal to [ ]


per cent ([ ]%) of the price recorded in the Contract. Such written notice of the Employer shall













SIGNED



To:


ANNEX 2


(Delete if not applicable)

Form of Key Dates Schedule

(see Article 10 of the Contract Agreement )

Activity Responsible

party

Relevant

Dates/Periods of Time

Comments

1 Possession and Taking

Over of the Works and

each Section of the

Works

• Commencement of

Works/each Section

• Date for Completion of

Works/each Section

• Preconditions for

commencement of

Works/each Section and

Site access and

possession/issue of

Taking Over Certificate

• Procedures for

commencement of


Site access and

possession

• Procedures for

inspections, tests,

commissioning and

issue of Taking Over

Certificate for

Works/Sections

2 Restrictions caused by

work being carried out

by other contractors

• Dates/periods when

parts of Site shall be

unavailable



subject to restricted

access



party

Relevant


Comments

• Relevant procedures

3 Deadlines for

preparation and issue of

remaining Drawings and

Specifications and other

documents necessary for

the Works/each Section

to be constructed

• Deadlines for Drawings

and Specifications and

other documents

required by the

Engineer from the

Contractor (and its

relevant Sub-

Contractors)

• Period for approval by

the Engineer of

Drawings and


documents as submitted

• Related Drawings and


documents of the

Engineer to be

completed utilising

Drawings and


documents submitted by

the Contractor

• Remaining Drawings


other documents to be

issued to the Contractor

by the Engineer



party

Relevant


Comments

4 Provisional Sums

• Deadlines for

preparation of



documents required for

each Provisional Sum

item

• Periods for the

Contractor to invite

Sub-Contractors to bid

against completed

design information

• Periods for Sub-

Contractors' bids to be

reviewed and approved

by the Engineer

• Deadline for the

Engineer to authorise

relevant Provisional

Sum item


ANNEX 3


STANDARD FORM OF

REQUEST FOR PAYMENT BY BANK TRANSFER



To: The Employer

Re: Project name:

Contract no.


Dear Sirs,


(the Contract) between you (the Employer) and us (the Consultant Engineer). We have made

no previous request to you regarding the method of payment of monies falling due under the

Contract (the Contract Proceeds).

We hereby request and authorise you to pay as from the date of this Request the Contract

Proceeds into our Account No.[ ] with [ ] (the Bank).






claims made by third parties including the Bank and from any and all costs and losses

arising in connection with:





cease making any payments of the Contract Proceeds to the Bank pursuant

to this authority and Request provided that in such case payment is

otherwise made as required by law or order of the Courts of the Kingdom

of Bahrain.









Yours faithfully,


Signature:

1. We hereby confirm our understanding and unqualified acceptance of the terms of this

letter and agree that neither this letter nor any payment made pursuant to this letter

shall create any contractual or fiduciary relationship between the Employer and the

Bank.

Countersigned:


Dated:

2. We hereby acknowledge receipt of the original of this letter and confirm that we have

no objection to the method of payment suggested.

Countersigned:


Dated:


SCHEDULES

The information contained in Schedules 1-4 is indicative only and shall vary in relation to each

project.


THE FIRST SCHEDULE

THE PROJECT


2. The target cost for the Project (the Target Cost) shall be Bahrain Dinars: [ ] BD [ ]

and shall be subject to revision from time to time on the basis of probable

construction costs


THE SECOND SCHEDULE

THE SERVICES

The Services shall comprise the supervision of the Project and shall include but not be limited

to the following:

1) Supervising Construction

2) Monthly Reports

3) Core Group and Early Warning (if Applicable)

4) Key Dates Schedule (if Applicable)

The supervision of the Project are described in more detail below:

1 Supervising Construction

The Consultant Engineer shall be responsible for the administration and supervision

of the Project during the construction and maintenance period and shall in this

connection undertake the following duties (the Supervisory Duties):

a Issue to the Contractor such orders and instructions and give such professional

opinions as are necessary for the execution of the Project in accordance with

the Building Contract.

b Examine and approve the programme of work of the Contractor and all

drawings, reports and proposals submitted by the Contractor from time to

time.

c Rectify any errors revealed in the detailed design or the Working Drawings

during the course of the execution of the Project and prepare and obtain the

Employer’s written approval of any further detailed designs and Working

Drawings that may be required for the proper execution of the Project.

d Measure the progress of the execution of the Project and prepare and issue

interim and final certificates of payment, such certificates to be in a form

approved by the Employer, in accordance with the Building Contract.

e Submit to the Employer monthly reports on the progress of the Project,

together with photographs of all stages in the execution of the Project, inform

the Employer immediately in writing of any accident or damage that may

occur on the site of the Project and instruct the Contractor to make accident

reports as required by the Employer. Where delays on the site of the Project or

other problems occur, the Consultant Engineer with the Contractor shall

prepare and submit to the Employer proposals designed to rectify the

situation.


f Advise the Employer on the necessity for the inspection and testing of

materials and plant supplied for the incorporation in the Project and arrange

for such inspection and testing to be carried out on the Employer’s behalf

within the costs allowed for in the Tender Documents.

g Supervise inspection and testing (including acceptance tests) upon

manufacture, prior to shipment, upon delivery and during and after

installation of all electrical and mechanical materials, machinery and plant

supplied for incorporation in the Project.

h Prepare and submit to the Employer at quarterly intervals or more frequently

as required, a review of the estimated final cost of the Project.

i Keep in Bahrain full and proper records of the progress of the Project and

deliver to the Employer on the completion of the Project a maintenance

manual in three (3) copies incorporating instructions, as built drawings, spare

parts listed and all such other records and information as are necessary for the

operation and maintenance of the Project.

j Assist in settling any disputes or differences which may arise between the

Employer and the Contractor. The Consultant Engineer and its resident site

supervisory staff shall continuously exert its utmost efforts to avoid the

submission of claims by the Contractor.

k In the event that any claim shall be received from the Contractor prior to the

issue of the final certificate at the end of the maintenance period of the Project

the Consultant Engineer shall immediately inform the Employer in writing

and then shall study such claim and prepare and submit to the Employer a

detailed report incorporating the Consultant Engineer's comments and

recommendations (within the cope of the Consultant Engineer's professional

and technical expertise) for the settlement and upon demand shall supply the

Employer with any information and documents as may reasonably be required

by the Employer in connection with such claim.

l During the execution of the Project act as "Engineer", as defined in the

Building Contract and carry out all the duties of the "Engineer" under the

Building Contract although the Consultant Engineer shall not be entitled to

amend or vary the Building Contract nor to give any instructions (except for

pressing reasons of safety) that could increase or decrease the overall cost of

the Project nor to authorise expenditure from provisional or contingency sums

without prior written approval of the Employer. The Consultant Engineer

shall promptly submit to the Employer copies of any variation orders or

equivalent instructions as soon as these are issued to the Contractor and shall

use the prescribed forms to issue variations and instructions under the

Building Contract.


m Together with the Contractor hold regular site meetings to be chaired by the

Consultant Engineer. The Employer reserves the right for himself and his duly

authorised representative to attend and participate at all such site meetings.

Minutes shall be prepared by the Consultant Engineer and shall be submitted

to the Employer within seven (7) days of each such site meeting.

n Obtain and present to the Employer on the completion of the Project final

certificates relative to the Project issued by all the relevant Authorities.

o Employ full time on the site of the Project throughout the period of

construction a resident engineer together with such other specialist personnel

as listed in paragraph b of Part I to the Fourth Schedule hereto as may be

required from time to time during the various stages of the construction and

provide for the resident engineer and such other specialist personnel full time

office support from all necessary administrative staff.

2 Monthly Reports





from the Employer





3 Core Group and Early Warning (if applicable)

The defined terms used in this clause shall, unless defined in this Contract, have the

meaning as given to them in the Building Contract.

If stated to be applicable in Article 11 of the Contract Agreement and subject to the

Core Group and Early Warning mechanisms being implemented under the Building

Contract, the Core Group and the Early Warning system will function as set out in

9a-9c and the Consultant Engineer will become a member of the Core Group and will

participate in the Early Warning system in accordance with 9d below and perform the

roles of the "Consultant Engineer" as set out below.

a The Employer, the Contractor, the Quantity Surveyor and the Consultant

Engineer shall establish a Core Group who shall meet regularly to review and


stimulate the progress of the Works and the implementation of the Building

Contract. Members of the Core Group shall include the individuals so listed

in Article 11 of the Contract Agreement subject to replacement only with the

prior consent of the Employer, the Contractor, the Quantity Surveyor and the

Consultant Engineer;

b A meeting of the Core Group members shall be convened by the Consultant

Engineer at the request of any Core Group member, at not less than seven (7)

days notice to all Core Group members stating its agenda (unless all Core

Group members agree a shorter period). Each such meeting shall be chaired

by the Consultant Engineer and shall deal only with the matters listed in its

agenda (unless all Core Group members agree otherwise);

c Decisions of the Core Group shall be by unanimous agreement of all Core

Group members present at that meeting and any decision of the Core Group

shall be confirmed by an instruction of the Consultant Engineer. The

Employer, the Contractor, the Quantity Surveyor and the Consultant Engineer

shall comply with any decision of the Core Group made within the scope of

its agreed functions and confirmed by an instruction of the Consultant

Engineer; and

d The Employer, the Contractor, the Quantity Surveyor and the Consultant

Engineer shall operate an Early Warning system, whereby the Employer, the

Contractor, the Quantity Surveyor and the Consultant Engineer shall notify

the others as soon as they are aware of any matter adversely affecting or

threatening the Works or the Contractor’s or the Employer’s performance

under the Building Contract, and (within the scope of its agreed role, expertise

and responsibilities) shall include in such notification proposals for avoiding

or remedying such matter.

4 Key Dates Schedule (if applicable)



a If stated to be applicable in Article 10 of the Contract Agreement, the


shall agree the Key Dates Schedule, which shall from part of the Building

Contract and the Consultant Engineer shall comply with the Key Dates

Schedule which shall identify the following:

i times for Completion of particular Sections and parts of the Works, and

dates/periods for agreed pre-conditions and procedures for Site

access/possession, for the issue of Taking Over Certificates and for

inspections, tests and commissioning;


ii deadlines for preparation and issue of all remaining Drawings and

Specifications and other documents necessary for the Works to be executed

and deadlines for submission by the Contractor of all Drawings and

Specifications and other documents required by the Engineer from the

Contractor (and its Sub-Contractors) and otherwise necessary for the

Engineer to complete its own Drawings and Specifications and other

documents;

iii in relation to each Provisional Sum, deadlines for the preparation of all

remaining Drawings and Specifications and other documents with further

periods of time for the Contractor to invite Sub-Contractor bids, for those bids

to be reviewed and approved by the Employer and for the Engineer to

authorise the Provisional Sum item.


THE THIRD SCHEDULE


The Consultant Engineer shall complete the Supervisory duties in accordance with a

detailed programme to be approved by the Employer based on an estimated total

construction period of [ ] ([ ]) months and a subsequent maintenance period

of [ ] ([ ]) months.


THE FOURTH SCHEDULE


OPTION - 1



a a sum equivalent to the lesser of [ ] percent [ %] of the actual cost of the

execution of the Project/and BD [ ].

b On the issue by the Consultant Engineer of the final payment certificate upon

the expiry of the maintenance period following the completion of the Project,

the actual cost of the execution of the Project shall be agreed between the

Employer and the Consultant Engineer and in the event that the Consultant

Engineer have been paid more or less than the sum referred to in paragraph a

of Option 1 then the difference shall be paid as appropriate by the Employer

to the Consultant Engineer in the event of an underpayment or by the

Consultant Engineer to the Employer in the event of an overpayment within a

period of sixty (60) days from the issue of the said final payment certificate.

c The agreed fee shall be payable monthly in arrears.


OPTION - 2

a man/month rates in accordance with the scale of supervision rates approved

for the time being by H.E. the Minister of Works throughout the

original/extended construction period of the Construction Contract in respect

of each month that each of the listed members of the supervisory staff of the

Consultant Engineer is employed exclusively full time on the Project together

with a sum equivalent to the lesser of ten percent (10%) of the monthly total

man supervision rates and BD 3000/- in respect of local administrative costs.

The approved scale of supervision rates for the time being is as follows:

SUPERVISION RATES

EFFECTIVE FROM [ ]

MAN/MONTH RATES

LEVEL

SUPERVISION

CATEGORIES

LOCAL EXPATRIATE

(BD) (BD) (QUALIFICATION)

1 PROJECT MANAGER

2 RESIDENT ENGINEER

3 SENIOR ENGINEER

4 ENGINEER

QUANTITY SURVEYOR

5 LAND SURVEYOR

JUNIOR ENGINEER

6 SENIOR INSPECTOR

7 INSPECTOR

b After award of contract and until completion of the Works, payment shall be

calculated as above in this Schedule.

c The fee described shall be payable monthly in arrears throughout the

construction period of the construction contract.


GENERAL

a The above fees are fully inclusive of all costs and overheads that the


Services.

b The above fees shall be payable in Bahrain Dinars, unless otherwise agreed



amounts.

STANDARD

CONTRACT AGREEMENT


2009


Copyright-Ministry of Works ConsultEngPrePost09



CONTENTS



1. Definitions 5

2. Interpretation 7






PERSONNEL



SECURITY






12. Delays 12









Copyright-Ministry of Works ConsultEngPrePost09



INSURANCES


18.1 Indemnity 16

18.2 Insurance 17

GENERAL PROVISIONS




22. Trainees 19



25. Notices 20

DISPUTES



26.3 Arbitration 22

ANNEX 1 Form of Performance Bond 23

ANNEX 2 Form of Key Dates Schedule 25

ANNEX 3 Standard Form for Request for Payment by Bank Transfer 28



THE THIRD SCHEDULE - THE CONSULTANT ENGINEER'S

- PROGRAMME 40

THE FOURTH SCHEDULE - THE CONSULTANT ENGINEER'S

REMUNERATION 41

Copyright-Ministry of Works ConsultEngPrePost09 1


(PROJECT TITLE)



BETWEEN


MINISTRY OF WORKS of P.O. BOX 5, Bahrain (the Employer);

and







conditions set out in this Contract.







c the Key Dates Schedule [Delete if not applicable]

d the Letter of Award [Delete if not applicable]





















Contract.



appropriate international standards duly approved by the Employer (including,

where appropriate, COEPP),



any other remedies available to the Employer under this Contract Agreement,

and





Conditions of Contract shall be not less than Bahrain Dinars [ ] (BD [ ]) for any one

incident with the number of incidents unlimited and the amount of professional



claims unlimited.


10 The Key Dates Schedule set out in Annex 2 to the Conditions of Contract shall apply

and the Employer and the Consultant Engineer shall adhere to the Schedule. [Delete

if not applicable].

11 The Core Group and Early Warning provisions set out in the Second Schedule of the

Conditions of Contract shall apply and the Consultant Engineer shall participate in

the Core Group (in accordance with the Second Schedule of the Contract) from the

date of this Contract and the members of the Core Group shall be:

For the Employer -

For the Contractor -

For the Consultant Engineer –

For the Quantity Surveyor -

If the Contractor and/or the Quantity Surveyor has not been appointed, their identity

and their Core Group member shall be notified to the Consultant Engineer following

their appointment. Upon notification to the Consultant Engineer the relevant party

shall become a member of the Core Group.

[Delete if not applicable]




applicable]





([ ]%) per annum.




Contract Agreement.



MINISTRY OF WORKS

in the presence of:



in the presence of:



1 Definitions





hereof.





Contractor(s).


Practice.










Core Group if stated in Article 11 of the Contract Agreement to be applicable, the

Core Group shall be formed of the individuals identified in Article 11 of the Contract

Agreement as Core Group members, subject only in each case to replacement in

accordance with the Second Schedule and the Core Group will carry out the functions

set out in the Second Schedule and references to the Core Group shall apply to each

and all Core Group members.



Early Warning if stated in Article 11 of the Contract Agreement to be applicable,

means early warning in accordance with the system described in the Second Schedule







Key Dates Schedule if stated in Article 10 of the Contract Agreement to be

applicable, means any key dates schedule as described in the Second Schedule and

forming part of the Contract.



authority in force from time to time in the Bahrain.








form set out in Annex 1 to the Conditions of Contract.

Project means the project named in the First Schedule.



Remuneration means the remuneration to be paid by the Employer to the Consultant

Engineer further to the Fourth Schedule or such other sums as may become due under

the Contract.







Second Schedule




functionality.





2 Interpretation






Gregorian calendar.











not a Working Day, such date shall be extended to the next succeeding Working Day.



3 Scope of Services



economical manner.




Employer.




















the Project.










4.3 The Consultant Engineer shall perform the Services in such manner and at such times

that no negligent or intentional act, omission or default by the Consultant Engineer in

relation to the Services shall constitute, cause or contribute to any breach by the

Employer of any of the Employer’s obligations in respect of the Project of which the

Consultant Engineer is aware.






Schedule.










Project.










shall add the words “or approved equivalent”. The prior approval of the Employer









Employer shall, within a reasonable period of time, give his decision in writing so as




PERSONNEL

6 Representatives


























proportion of the Remuneration that the Employer in his discretion deems attributable

to the unsatisfactory member of staff.

SECURITY

8 Performance Bond






8.2 If the Consultant Engineer shall fail to comply with Clause 8.1, the Employer shall be

entitled to treat the Contract as repudiated by the Consultant Engineer and upon such

repudiation to recover all loss, cost and expense occasioned by such repudiation.






10.1 The Services shall be performed in accordance with the consultant’s programme set

out in the Third Schedule hereto (the Consultant Engineer’s Programme) subject to

extensions in accordance with this Contract.




Completion of the Building Contract or the Consultant Engineer's Programme will be

delayed, the Consultant Engineer shall promptly notify the Employer of the fact, of

the expected period of delay, of the cause of the delay and the steps proposed by the

Consultant Engineer to minimise the delay.


10.4 Subject to any extension of time granted by the Employer in writing to the Consultant

Engineer, if the Consultant Engineer fails to complete any stage of the Services

within the period specified in the Consultant Engineer's Programme, then it should be

liable to pay to the Employer a sum of Bahrain Dinars equivalent to 1% of the

Remuneration of the relevant stage of the Services for each week of delay up to a








12 Delays






12.2 In the event that such notice as described in Clause 12.1 is issued by the Consultant

Engineer the Employer shall review the contents of the notice and confirm his

acceptance in full or in part, which shall not be unreasonably withheld. If approved

by the Employer, the increase shall be regarded as Additional Services and the time

for completion of the Services shall be increased accordingly. If rejected by the


Employer notifying the Consultant Engineer of his rejection, the matter shall be







expenditure.

b If the Employer considers that the Consultant Engineer is without good reason

not discharging his obligations he can inform the Consultant Engineer by

notice stating the grounds for the notice. If a satisfactory reply is not received

within fourteen (14) days the Employer can by a further notice terminate the


appointment of the Consultant Engineer under this Contract with immediate

effect.














the Employer shall pay the Consultant Engineer's Remuneration in

accordance with Schedule 4.






the Consultant Engineer's Remuneration shall be revised by the parties

(subject to the approval of both parties). In the event that the Project or any

part thereof shall be postponed for a period longer than two (2) years then the







continue suspension of performance of the whole or part of the Services:


with Clause 14.1 of this Contract, of an invoice it has not received payment of

that part of it which has not, by that time, been contested in writing by the

Employer;


suspension has exceeded one (1) year; or





with this Contract




a If this Contract is terminated by either of the parties hereto in accordance with

the provisions of Clauses 13.1 and 13.2 above then the Employer shall have

the right to receive and use the originals of all documents and drawings











and




this Contract.















from any monies due or becoming due to the Consultant Engineer under this Contract

or may be recovered by action at law or otherwise from the Consultant Engineer.


























the parties hereto.




of his staff, any Additional Services required by the Employer to be performed by the

Consultant Engineer as a result of such damage or destruction shall attract such


the parties hereto.







expense.






INSURANCES

18. Indemnity and Insurance

18.1 Indemnity








18.2 Insurance


Without prejudice to its liability to indemnify the Employer under Clause 18.1

the Consultant Engineer shall on or before the date of Contract in the joint

names of the Employer and the Consultant Engineer take out insurances for at

least the amount stated in Article 9 of the Contract Agreement against its

liability for any death of or injury to any person (including any employee of

the Employer) or any damage or loss to any property (including any property

of the Employer) caused by or arising out of or in consequence of the

execution of the Contract and as are necessary to cover the liability of the



on it by the other.




stated in Article 9 for any one claim with number of claims unlimited,


(10) years after the date the last of the Services was completed .


The insurance policies required under Clause 18 shall be taken out with one of

the insurance companies for the time being recognised by the Employer in






produce for inspection the insurance policies required under Clause 18 and the

receipts for payment of the current premiums and in default of the Consultant

Engineer so insuring or continuing to insure as required the Employer may

itself insure against any risk with respect to which the default shall have

occurred and may deduct a sum or sums equivalent to the amount paid or

payable in respect of such premiums from any monies due or to become due

to the Consultant Engineer, or recover the same as a debt due from the

Consultant Engineer. The Employer reserves the right to suspend all or part of

the Services by immediate notice to the Consultant Engineer until the


Consultant Engineer takes out such insurances. Any costs incurred by the




Remuneration.



GENERAL PROVISIONS

19 Law of Contract




permits as may be required by the relevant Laws and shall pay all appropriate charges

and fees therefore and shall pay all such custom duties, levies and taxes as may be

required by Law and shall keep the Employer indemnified against all penalties and

liability of every kind for breach of any such Laws.












purposes, and shall ensure that such licence shall have the support of such rights from

third parties as are necessary to allow the grant of such licence.






Works shall transfer from the Consultant Engineer to the Employer immediately prior


to the Consultant Engineer suffering an event of termination of his employment as

described in Clause 13. In such circumstances, the Consultant Engineer shall hand

over all such documents and designs to the Employer immediately upon request.




the settlement of the same and any litigation that may arise therefrom. The Employer

shall not unless and until the Consultant Engineer shall have failed to take over the

conduct of the negotiations or litigation make any admission which might be








doing.

22 Trainees












thenceforth automatically be deemed to be included in the expression “the Consultant

Engineer” for all the purposes of this Contract.





Clause 23.1 above shall apply to the staff of any approved specialist sub-consultant

but the Employer’s approval of any specialist sub-consultant or any member of the

staff of such specialist sub-consultant shall in no way relieve the Consultant Engineer

of any of its duties and obligations under this Contract.


24 Confidentiality








Services.

25 Notices




The Employer:

Attn:

Fax.


Attn:

Fax.


number.

DISPUTES





before or after any determination abandonment or breach of the Contract) both

parties shall endeavour to amicably resolve the dispute. Unless the Contract shall

have already been determined or abandoned the parties shall in every case continue to

proceed with the Services unless and until the same shall be referred to Mediation









apply:




appoint a Mediator;



with it to agree a programme for the exchange of any relevant information and

the structure to be adopted for the negotiations;
















cannot be agreed, they shall be assessed by the Mediator, whose decision shall

be binding on the parties; and












26.3 Arbitration
















In any arbitration:




parties;


Committee; and


English Language.


ANNEX 1




To be engrossed on Insurance Company / Bank headed paper and addressed to the Employer.


Bank Ref: Dated:

Dear Sirs,

Performance Bond Number:

Project:


Date of Contract:


above contract (the Contract) with [ ] (the Consultant Engineer), we, the [

] Insurance Company / Bank of [ ] irrevocably and unconditionally guarantee


fulfil all undertakings, covenants, terms and conditions of the Contract for [ ] (the

Services) and any extensions of the Contract, and that the Consultant Engineer shall well and

truly perform and fulfil all the undertakings, covenants, terms and conditions of the Contract

and all changes, modifications, additions or amendments to the Contract that may be made, and

that the Consultant Engineer shall also fully indemnify, defend and hold harmless the Employer

from all costs, liability and damage which the Employer may suffer by reason of the failure of

the Consultant Engineer so to do.



out in the above paragraph, we unconditionally and irrevocably undertake, without any right of

set off or counterclaim whether on our behalf or on behalf of the Consultant Engineer, to pay to

the Employer the sum of BD[ ] ([ ]) being an amount equal to [ ] per cent ([

]%) of the price recorded in the Contract. Such written notice of the Employer shall














SIGNED



To:


ANNEX 2


(Delete if not applicable)

Form of Key Dates Schedule

(see Article 10 of the Contract Agreement )


party

Relevant

Dates/Periods of

Time

Comments

1 Possession and Taking

Over of the Works and

each Section of the

Works

• Commencement of

Works/each Section

• Date for Completion of

Works/each Section

• Preconditions for

commencement of


Site access and

possession/issue of

Taking Over Certificate

• Procedures for

commencement of


Site access and

possession

• Procedures for

inspections, tests,

commissioning and

issue of Taking Over

Certificate for

Works/Sections

2 Restrictions caused by

work being carried out

by other contractors



unavailable



subject to restricted



party

Relevant

Dates/Periods of

Time

Comments

access

• Relevant procedures

3 Deadlines for

preparation and issue of



documents necessary for

the Works/each Section

to be constructed

• Deadlines for Drawings


other documents

required by the

Engineer from the

Contractor (and its

relevant Sub-

Contractors)

• Period for approval by

the Engineer of

Drawings and


documents as submitted

• Related Drawings and


documents of the

Engineer to be

completed utilising

Drawings and


documents submitted by

the Contractor

• Remaining Drawings


other documents to be

issued to the Contractor

by the Engineer



party

Relevant


Comments

4 Provisional Sums

• Deadlines for

preparation of



documents required for

each Provisional Sum

item

• Periods for the

Contractor to invite

Sub-Contractors to bid

against completed

design information

• Periods for Sub-

Contractors' bids to be

reviewed and approved

by the Engineer

• Deadline for the

Engineer to authorise

relevant Provisional

Sum item


ANNEX 3


STANDARD FORM OF

REQUEST FOR PAYMENT BY BANK TRANSFER



To: The Employer

Re: Project Name:

Contract No.


Dear Sirs,


(the Contract) between you (the Employer) and us (the Consultant Engineer). We have

made no previous request to the Employer regarding the method of payment of monies falling

due under the Contract (the Contract Proceeds).

We hereby request and authorise you to pay as from the date at this Request the Contract

Proceeds into our Account No.[ ] with [ ] (the

Bank).






claims made by third parties including the Bank and from any and all costs and

losses arising in connection with:





cease making any payments of the Contract Proceeds to the Bank

pursuant to this authority and Request provided that in such case payment

is otherwise made as required by law or order of the Courts of the

Kingdom of Bahrain.









Yours faithfully,


Signature:

1. We hereby confirm our understanding and unqualified acceptance of the terms of

this letter and agree that neither this letter nor any payment made pursuant to this

letter shall create any contractual or fiduciary relationship between the Employer

and the Bank.

Countersigned:


Dated:

2. We hereby acknowledge receipt of the original of this letter and confirm that we

have no objection to the method of payment suggested.

Countersigned:


Dated:


SCHEDULES

The information contained in Schedules 1-4 is indicative only and shall vary in relation to

each project.


THE FIRST SCHEDULE

THE PROJECT


2. The target cost for the Project (the Target Cost) shall be Bahrain Dinars: [ ] BD

[ ] and shall be subject to revision from time to time on the basis of probable

construction costs


THE SECOND SCHEDULE

THE SERVICES

Note:- When Consultant QS is appointed directly by Employer, Items 4 and 5 detailed below

have to be modified.

The Services shall comprise the design of the Project and shall include but not be limited to the

following:

1. Investigation

2. Preliminary Design

3. Detailed Design

4. Working Drawings and Tender Documents

5. Tendering and Recommendation of Contractor

6. Building Permit

7. Monthly Reports

8. Supervising Construction

9. Core Group and Early Warning (if applicable)

10. Key Dates Schedule (if applicable)

The design and management of the Project are described in more detail below:

1 Investigation

a The Consultant Engineer shall investigate all available data relevant to the

Project and shall initiate and supervise all normal soil investigations on the

site of the Project.

b The Consultant Engineer shall advise the Employer of the need for any

special surveys, investigations or tests necessary for the safe and proper

design and execution of the Project, shall with the Employer’s prior written

approval arrange for these to be carried out on the Employer’s behalf and

shall study, analyse and report in full to the Employer on the results thereof.

c The Consultant Engineer shall approach all relevant Authorities in order to

establish basic approval criteria relevant to the design and execution of the

Project.

2 Preliminary Design

a The Consultant Engineer shall prepare and present for the Employer’s

approval outline plans for the Project which meet the Employer’s


requirements and objectives in conformity with the Contract, the Target Cost

and the results of the Consultant Engineer’s investigations described in

paragraph 1 (the Preliminary Design).

b The Consultant Engineer shall submit to the Employer a probable


3 Detailed Design

a Upon receipt of written approval from the Employer of the Preliminary

Design the Consultant Engineer shall prepare for the Employer’s approval

drawings, designs and specifications to a sufficient level of detail to fix and

describe the size and character of the Project (the Detailed Design). The

Consultant Engineer shall submit the Detailed Design together with such

other information as may be required to the relevant Authorities for planning

and approval and (subject to reimbursement by the Employer) shall pay any

necessary fees and shall report to the Employer as soon as planning approval

has been granted.

b The Consultant Engineer shall submit to the Employer a statement of probable


4 Working Drawings and Tender Documents

Upon receipt of written approval from the Employer of the Detailed Design the

Consultant Engineer shall prepare:

a Working drawings of the Project (the Working Drawings).

b All such documents as together with the Working Drawings shall enable the

Employer to put the Project to tender (the Tender Documents). The Tender

Documents shall include general and special conditions of contract,

invitations to tender, forms of tender, architectural, electrical and mechanical

specifications and bills of quantities/schedules of rates and prices and such

other forms and documents as may from time to time be required by the

Employer. The Consultant Engineer may allow in the Tender Documents for

the provision and maintenance by the selected Contractor of air-conditioned,

furnished office accommodation for the Consultant Engineer on the site of the

Project and for the connection and maintenance of water, electricity and

telephone services for such accommodation at no cost to the Consultant

Engineer (with the exception only of international telephone calls, telexes and

cables). A draft copy of the Tender Documents shall be submitted to the

Employer for approval not less than one month prior to going to tender.


c Priced bills of quantities/schedule of rates and prices based on the latest

estimated rates and realistic cost of materials prevailing in Bahrain which bills

of quantities/schedule of prices shall be used for comparison of tenders

received (the rates and Priced Documents).

5 Tendering and Recommendation of Contractor

Upon receipt of written approval from the Employer of the Working Drawings, the

Tender Documents and the Priced Documents and subject to formal planning

approval having been granted for the execution of the Project the Consultant

Engineer shall undertake the following duties (the Tender Procedure):

a Pre-qualifying and selection, after obtaining the Employer’s approval, of

suitable contractors to participate in the tender for the execution of the

Project.

b Assisting in the tender as required and advising the Employer on tenders

received, including providing financial and technical evaluations of such

tenders and submitting a detailed written recommendation regarding the

award of the Contract for the execution of the Project. No tender shall be

accepted or award placed by the Consultant Engineer except on behalf of the

Employer and with his prior authority in writing.

c In the event that no tender for the Project is received which is satisfactory to

the Employer in every respect and which is for a total amount less than the

Target Cost and provided that:

i any excess over the Target Cost is not due to delays by the Employer in the

award of a Building Contract; or

ii the scale of the Project finally set by the Employer is not such as to render the

Target Cost inadequate in the event that the Consultant Engineer shall have so

advised the Employer prior to the issue of the Tender Documents

then the Consultant Engineer shall without any further charge to the Employer

take all necessary additional action either by redesign or by alteration to the

scope of the Project as requested by the Employer to ensure that subsequent

satisfactory tenders are submitted within the Target Cost.

d Advising on the preparation and award of the Building Contract.

e Engrossing the approved form of Building Contract and arranging for the

signing of the Building Contract and for the delivery to the Employer of the

signed and dated Building Contract.


6 Building Permit

It is the Consultant Engineer’s responsibility to apply for the building permit in

sufficient time that the permit is available to allow construction to start as scheduled.

7 Monthly Reports





from the Employer





8 Supervising Construction

The Consultant Engineer shall be responsible for the administration and supervision

of the Project during the construction and maintenance period and shall in this

connection undertake the following duties (the Supervisory Duties):

a Issue to the Contractor such orders and instructions and give such professional

opinions as are necessary for the execution of the Project in accordance with

the Building Contract.

b Examine and approve the programme of work of the Contractor and all

drawings, reports and proposals submitted by the Contractor from time to

time.

c Rectify any errors revealed in the detailed design or the Working Drawings

during the course of the execution of the Project and prepare and obtain the

Employer’s written approval of any further detailed designs and Working

Drawings that may be required for the proper execution of the Project.

d Measure the progress of the execution of the Project and prepare and issue

interim and final certificates of payment, such certificates to be in a form

approved by the Employer, in accordance with the Building Contract.

e Submit to the Employer monthly reports on the progress of the Project,

together with photographs of all stages in the execution of the Project, inform

the Employer immediately in writing of any accident or damage that may


occur on the site of the Project and instruct the Contractor to make accident

reports as required by the Employer. Where delays on the site of the Project or

other problems occur, the Consultant Engineer with the Contractor shall

prepare and submit to the Employer proposals designed to rectify the

situation.

f Advise the Employer on the necessity for the inspection and testing of

materials and plant supplied for the incorporation in the Project and arrange

for such inspection and testing to be carried out on the Employer’s behalf

within the costs allowed for in the Tender Documents.

g Supervise inspection and testing (including acceptance tests) upon

manufacture, prior to shipment, upon delivery and during and after

installation of all electrical and mechanical materials, machinery and plant

supplied for incorporation in the Project.

h Prepare and submit to the Employer at quarterly intervals or more frequently

as required, a review of the estimated final cost of the Project.

i Keep in Bahrain full and proper records of the progress of the Project and

deliver to the Employer on the completion of the Project a maintenance

manual in three (3) copies incorporating instructions, as built drawings, spare

parts listed and all such other records and information as are necessary for the

operation and maintenance of the Project.

j Assist in settling any disputes or differences which may arise between the

Employer and the Contractor. The Consultant Engineer and its resident site

supervisory staff shall continuously exert its utmost efforts to avoid the

submission of claims by the Contractor.

k In the event that any claim shall be received from the Contractor prior to the

issue of the final certificate at the end of the maintenance period of the Project

the Consultant Engineer shall immediately inform the Employer in writing

and then shall study such claim and prepare and submit to the Employer a

detailed report incorporating the Consultant Engineer's comments and

recommendations (within the scope of the Consultant Engineer's professional

and technical expertise) for the settlement and upon demand shall supply the

Employer with any information and documents as may reasonably be required

by the Employer in connection with such claim.

l During the execution of the Project act as “Engineer”, as defined in the

Building Contract and carry out all the duties of the "Engineer" under the

Building Contract although the Consultant Engineer shall not be entitled to

amend or vary the Building Contract nor to give any instructions (except for

pressing reasons of safety) that could increase or decrease the overall cost of


the Project nor to authorise expenditure from provisional or contingency sums

without prior written approval of the Employer. The Consultant Engineer

shall promptly submit to the Employer copies of any variation orders or

equivalent instructions as soon as these are issued to the Contractor and shall

use the prescribed forms to issue variations and instructions under the

Building Contract.

m Together with the Contractor hold regular site meetings to be chaired by the

Consultant Engineer. The Employer reserves the right for himself and his duly

authorised representative to attend and participate at all such site meetings.

Minutes shall be prepared by the Consultant Engineer and shall be submitted

to the Employer within seven (7) days of each such site meeting.

n Obtain and present to the Employer on the completion of the Project final

certificates relative to the Project issued by all the relevant Authorities.

o Employ full time on the site of the Project throughout the period of

construction a resident engineer together with such other specialist personnel

as listed in paragraph b of Part I to the Fourth Schedule hereto as may be

required from time to time during the various stages of the construction and

provide for the resident engineer and such other specialist personnel full time

office support from all necessary administrative staff.

9 Core Group and Early Warning (if applicable)



If stated to be applicable in Article 11 of the Contract Agreement and subject to the

Core Group and Early Warning mechanisms being implemented under the Building

Contract, the Core Group and the Early Warning system will function as set out in

9a-9c and the Consultant Engineer will become a member of the Core Group and will

participate in the Early Warning system in accordance with 9d below and perform the

roles of the "Consultant Engineer" as set out below.

a The Employer, the Contractor, the Quantity Surveyor and the Consultant

Engineer shall establish a Core Group who shall meet regularly to review and

stimulate the progress of the Works and the implementation of the Building

Contract. Members of the Core Group shall include the individuals so listed

in Article 11 of the Contract Agreement subject to replacement only with the

prior consent of the Employer, the Contractor, the Quantity Surveyor and the

Consultant Engineer;

b A meeting of the Core Group members shall be convened by the Consultant

Engineer at the request of any Core Group member, at not less than seven (7)

days notice to all Core Group members stating its agenda (unless all Core


Group members agree a shorter period). Each such meeting shall be chaired

by the Consultant Engineer and shall deal only with the matters listed in its

agenda (unless all Core Group members agree otherwise);

c Decisions of the Core Group shall be by unanimous agreement of all Core

Group members present at that meeting and any decision of the Core Group

shall be confirmed by an instruction of the Consultant Engineer. The


shall comply with any decision of the Core Group made within the scope of

its agreed functions and confirmed by an instruction of the Consultant

Engineer; and

d The Employer, the Contractor, the Quantity Surveyor and the Consultant

Engineer shall operate an Early Warning system, whereby the Employer, the

Contractor, the Quantity Surveyor and the Consultant Engineer shall notify

the others as soon as they are aware of any matter adversely affecting or

threatening the Works or the Contractor’s or the Employer’s performance

under the Building Contract, and (within the scope of its agreed role, expertise

and responsibilities) shall include in such notification proposals for avoiding

or remedying such matter.

10. Key Dates Schedule (if applicable)



a If stated to be applicable in Article 10 of the Contract Agreement, the


shall agree the Key Dates Schedule, which shall from part of the Building

Contract and the Consultant Engineer shall comply with the Key Dates

Schedule which shall identify the following:

i times for Completion of particular Sections and parts of the Works, and

dates/periods for agreed pre-conditions and procedures for Site

access/possession, for the issue of Taking Over Certificates and for

inspections, tests and commissioning;

ii deadlines for preparation and issue of all remaining Drawings and

Specifications and other documents necessary for the Works to be executed

and deadlines for submission by the Contractor of all Drawings and

Specifications and other documents required by the Engineer from the

Contractor (and its Sub-Contractors) and otherwise necessary for the

Engineer to complete its own Drawings and Specifications and other

documents;


iii in relation to each Provisional Sum, deadlines for the preparation of all

remaining Drawings and Specifications and other documents with further

periods of time for the Contractor to invite Sub-Contractor bids, for those bids

to be reviewed and approved by the Employer and for the Engineer to

authorise the Provisional Sum item.


THE THIRD SCHEDULE


The Consultant Engineer shall complete the Services in accordance with the following

programme commencing:[ ] (the Commencement Date):

a The Preliminary Design and the statement of probable construction costs


b The Detailed Design and the statement of probable construction costs within [

] ([ ]) weeks from the Commencement Date.

c The Working Drawings, the Tender Documents and the Priced Documents


d The Tender Procedure within [ ] ([ ]) weeks from the

Commencement Date.

e The Supervisory duties in accordance with a detailed programme to be

approved by the Employer based on an estimated total construction period of [

] ([ ]) months and a subsequent maintenance period of [ ] ([

]) months.


THE FOURTH SCHEDULE


OPTION - 1



a a sum equivalent to the lesser of [ ] percent [ %] of the actual cost of the

execution of the Project/and BD [ ] for Pre Contract Engineering Services,

and a sum equivalent to the lesser of [ ] percent [%] of the agreed final

account sum and BD [ ] for Post Contract Engineering Services.

b The fee described in paragraph (a) of Part I of this Schedule shall be payable

in the following manner:

Pre Contract Engineering Services

i [ ] percent ([ ]%) / BD.............. for the Preliminary Design and

construction costs on the approval by the Employer the statement of probable

construction costs

ii [ ] percent ([ ]%) on the approval by the Employer of the

Detailed Design and the statement of probable construction costs.

iii [ ] percent ([ ]%) on the approval by the Employer of the

Working Drawings and the Priced Documents.

Post Contract Engineering Services

iv [ ] percent ([ ]%) / BD ............... payable in equal instalments in

arrears during the construction period of the Contract.

v [ ] percent ([ ]%) / BD ............... payable on the issue by the

Consultant Engineer of a certificate of final completion/maintenance

certificate in respect of the execution of the Project.

c Prior to award of contract, payment under Option 1 paragraph a above of this

Schedule shall be calculated in accordance with the Target Cost. Prior to

agreement of the Final Account, Post Contract Services shall be calculated in

accordance with the Contract Sum. Such payments shall not be regarded as a

valuation of the duties performed at the respective stages but shall rank solely

as payments on account towards the total fee payable.


d On the issue by the Consultant Engineer of the final payment certificate upon

the expiry of the maintenance period following the completion of the Project,

the actual cost of the execution of the Project shall be agreed between the

Employer and the Consultant Engineer and in the event that the Consultant

Engineer have been paid more or less than the sum referred to in paragraph a

of Option 1 of this Schedule then the difference shall be paid as appropriate

by the Employer to the Consultant Engineer in the event of an underpayment

or by the Consultant Engineer to the Employer in the event of an overpayment

within a period of sixty (60) days from the issue of the said final payment

certificate.


OPTION - 2

Alternatively, as Option 2; fees shall be payable for Post Contract Engineering

Services as detailed below:-

a man/month rates in accordance with the scale of supervision rates approved

for the time being by H.E. the Minister of Works throughout the construction

period of the Construction Contract in respect of each month that each of the

listed members of the supervisory staff of the Consultant Engineer is

employed exclusively full time on the Project together with a sum equivalent

to the lesser of ten percent (10%) of the monthly total/man supervision rates

and BD 3000/- in respect of local administrative costs. The approved scale of

supervision rates for the construction period is as follows:

SUPERVISION RATES

EFFECTIVE FROM [ ]

MAN/MONTH RATES – [ ] REVISION

LEVEL

SUPERVISION

CATEGORIES

LOCAL EXPATRIATE

(BD) (BD) (QUALIFICATION)

1 PROJECT MANAGER

2 RESIDENT ENGINEER

3 SENIOR ENGINEER

4 ENGINEER

QUANTITY SURVEYOR

5 LAND SURVEYOR

JUNIOR ENGINEER

6 SENIOR INSPECTOR

7 INSPECTOR


GENERAL

a The above fees are fully inclusive of all costs and overheads that the


Services.

b The above fees shall be payable in Bahrain Dinars, unless otherwise agreed



amounts.