FIDIC Construction Contract 1st Edition 1999

1 MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009 FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILSINTERNATIONAL FEDERATION OF CONSULTING ENGINEERSINTERNATIONALE VEREINIGUNG BERATENDER INGENIEUREFEDERACION INTERNACIONAL DE INGENIEROS CONSOLTORESC onditions of ContractforCONSTRUCTIONFOR BUILDING AND ENGINEERING WORKSDESIGNED BY THE EMPLOYERG eneral Conditions MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009iGeneral ConditionsCONTENTS1 GENERAL PROVISIONS .. and of and Supply of Drawings or Employer s Use of Contractor s Contractor s Use of Employer s Confidential Compliance with Joint and Several Liability2 THE EMPLOYER .. of Access to the , Licences or s s Financial s Claims3 THE ENGINEER .. s Duties and by the of the of the CONTRACTOR .. s General s of Benefit of SubcontractERRATA to the First Edition 1999.

2 Inside back cover MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL Site Sufficiency of the Accepted Contract Unforeseeable Physical Rights of Way and Avoidance of Access Transport of Contractor s Protection of the Electricity, Water and Employer s Equipment and Free-Issue Progress Security of the Contractor s Operations on Fossils5 NOMINATED SUBCONTRACTORS .. of nominated Subcontractor to to nominated of Payments6 STAFF AND LABOUR .. of Staff and of Wages and Conditions of in the Service of for Staff and Labour and s s Records of Contractor s Personnel and Disorderly Conduct7 PLANT, MATERIALS AND WORKMANSHIP .. of of Plant and , DELAYS AND SUSPENSION .. of for Completion MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL of Time for Caused by of of of Payment for Plant and Materials in Event of Prolonged Resumption of Work9 TESTS ON COMPLETION.

3 S to Pass Tests on Completion10 EMPLOYER S TAKING OVER .. Taking Over of the Works and Taking Over of Parts of the Interference with Tests on Surfaces Requiring Reinstatement11 DEFECTS LIABILITY .. Completion of Outstanding Work and Remedying Cost of Remedying Extension of Defects Notification Failure to Remedy Removal of Defective Further Right of Contractor to Performance Unfulfilled Clearance of Site12 MEASUREMENT AND EVALUATION .. Works to be Method of Omissions13 VARIATIONS AND ADJUSTMENTS .. Right to Value Variation Payment in Applicable Provisional Adjustments for Changes in Adjustments for Changes in Cost MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-2009iv14 Contract PRICE AND PAYMENT .. The Contract Advance Application for Interim Payment Schedule of Plant and Materials intended for the Issue of Interim Payment Delayed Payment of Retention Statement at Application for Final Payment Issue of Final Payment Cessation of Employer s Currencies of Payment15 TERMINATION BY EMPLOYER.

4 Notice to Termination by Valuation at Date of Payment after Employer s Entitlement to Termination16 SUSPENSION AND TERMINATION BY CONTRACTOR .. Contractor s Entitlement to Suspend Termination by Cessation of Work and Removal of Contractor s Payment on Termination17 RISK AND RESPONSIBILITY .. Contractor s Care of the Employer s Consequences of Employer s Intellectual and Industrial Property Limitation of Liability18 INSURANCE .. General Requirements for Insurance for Works and Contractor s Insurance against Injury to Persons and Damage to Insurance for Contractor s Personnel19 FORCE MAJEURE .. Definition of Force Notice of Force Duty to Minimise Consequences of Force Force Majeure Affecting Subcontractor MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL Optional Termination, Payment and Release from Performance under the Law20 CLAIMS, DISPUTES AND ARBITRATION.

5 Contractor s Appointment of the Dispute Adjudication Failure to Agree Dispute Adjudication Obtaining Dispute Adjudication Board s Amicable Failure to Comply with Dispute Adjudication Board s Expiry of Dispute Adjudication Board s AppointmentAPPENDIXGENERAL CONDITIONS OF DISPUTE ADJUDICATION AGREEMENT ..63 INDEX OF SUB-CLAUSES .. i MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL Contract to of s s s s Notification s s Payment Payment of of after on for listed alphabetically MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20091 General ConditionsIn the Conditions of Contract ( these Conditions ), which include Particular Conditionsand these General Conditions, the following words and expressions shall have themeanings stated.

6 Words indicating persons or parties include corporations and otherlegal entities, except where the context requires Contract means the Contract Agreement, the Letter of Acceptance, theLetter of Tender, these Conditions, the Specification, the Drawings, theSchedules, and the further documents (if any) which are listed in theContract Agreement or in the Letter of Contract Agreement means the Contract agreement (if any) referred to inSub-Clause [ Contract Agreement]. Letter of Acceptance means the letter of formal acceptance, signed bythe Employer, of the Letter of Tender, including any annexed memorandacomprising agreements between and signed by both Parties. If there is nosuch letter of acceptance, the expression Letter of Acceptance means theContract Agreement and the date of issuing or receiving the Letter ofAcceptance means the date of signing the Contract Letter of Tender means the document entitled letter of tender, which wascompleted by the Contractor and includes the signed offer to the Employerfor the Specification means the document entitled specification, as included inthe Contract , and any additions and modifications to the specification inaccordance with the Contract .

7 Such document specifies the Drawings means the drawings of the Works, as included in the Contract ,and any additional and modified drawings issued by (or on behalf of) theEmployer in accordance with the Schedules means the document(s) entitled schedules, completed by theContractor and submitted with the Letter of Tender, as included in theContract. Such document may include the Bill of Quantities, data, lists, andschedules of rates and/or Tender means the Letter of Tender and all other documents which theContractor submitted with the Letter of Tender, as included in the Appendix to Tender means the completed pages entitled appendix totender which are appended to and form part of the Letter of Bill of Quantities and Daywork Schedule mean the documents sonamed (if any) which are comprised in the Contract1 General ProvisionsGeneral Conditions MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20092 Conditions of Contract for Party means the Employer or the Contractor, as the context Employer means the person named as employer in the Appendix toTender and the legal successors in title to this Contractor means the person(s) named as contractor in the Letter ofTender accepted by the Employer and the legal successors in title to thisperson(s).

8 Engineer means the person appointed by the Employer to act as theEngineer for the purposes of the Contract and named in the Appendix toTender, or other person appointed from time to time by the Employer andnotified to the Contractor under Sub-Clause [Replacement of the Engineer]. Contractor s Representative means the person named by theContractor in the Contract or appointed from time to time by the Contractorunder Sub-Clause [Contractor s Representative], who acts on behalf ofthe Employer s Personnel means the Engineer, the assistants referred to inSub-Clause [Delegation by the Engineer] and all other staff, labour andother employees of the Engineer and of the Employer; and any otherpersonnel notified to the Contractor, by the Employer or the Engineer, asEmployer s Contractor s Personnel means the Contractor s Representative and allpersonnel whom the Contractor utilises on Site, who may include the staff,labour and other employees of the Contractor and of each Subcontractor.

9 And any other personnel assisting the Contractor in the execution ofthe Subcontractor means any person named in the Contract as asubcontractor, or any person appointed as a subcontractor, for a part of theWorks; and the legal successors in title to each of these DAB means the person or three persons so named in the Contract , orother person(s) appointed under Sub-Clause [Appointment of theDispute Adjudication Board] or Sub-Clause [Failure to Agree DisputeAdjudication Board] FIDIC means the F d ration Internationale des Ing nieurs-Conseils, theinternational federation of consulting engineers. Base Date means the date 28 days prior to the latest date for submissionof the Commencement Date means the date notified under Sub-Clause [Commencement of Works]. Time for Completion means the time for completing the Works or aSection (as the case may be) under Sub-Clause [Time for Completion],as stated in the Appendix to Tender (with any extension under Sub-Clause [Extension of Time for Completion]), calculated from theCommencement Tests on Completion means the tests which are specified in the Contractor agreed by both Parties or instructed as a Variation, and which are and , Tests, Periodsand Completion MCC AND MCC ENTITIES - LICENSED USE - FIDIC 2007 - UNTIL END-20093 General Conditionsout under Clause 9 [Tests on Completion] before the Works or a Section (asthe case may be) are taken over by the Taking-Over Certificate means a certificate issued under Clause 10[Employer s Taking Over].

10 Tests after Completion means the tests (if any) which are specified in theContract and which are carried out in accordance with the provisions of theParticular Conditions after the Works or a Section (as the case may be) aretaken over by the Defects Notification Period means the period for notifying defects in theWorks or a Section (as the case may be) under Sub-Clause [Completion of Outstanding Work and Remedying Defects], as stated in theAppendix to Tender (with any extension under Sub-Clause [Extensionof Defects Notification Period]), calculated from the date on which the Worksor Section is completed as certified under Sub-Clause [Taking Over ofthe Works and Sections]. Performance Certificate means the certificate issued under Sub-Clause [Performance Certificate]. day means a calendar day and year means 365 Accepted Contract Amount means the amount accepted in the Letter ofAcceptance for the execution and completion of the Works and theremedying of any Contract Price means the price defined in Sub-Clause [TheContract Price], and includes adjustments in accordance with the Cost means all expenditure reasonably incurred (or to be incurred) by theContractor, whether on or off the Site, including overhead and similarcharges, but does not include Final Payment Certificate means the payment certificate issued underSub-Clause [Issue of Final Payment Certificate].