PLANTCONSTRUCTIONCONTRACT.doc

PLANTCONSTRUCTIONCONTRACT article1definitions theownershallmean. thecontractorshallmean. theplantshallmeanalloranypartofthemachinery,equipmentandmaterialsformingthepermanentinstallationasspecifiedinappendix. thesiteshallmeanallthelandwheretheplantistobeconstructedinaccordancewiththiscontract. theworksshallmeantheworkstobedonebythecontractorunderthiscontract. thecontractpriceshallmeanthetotalsumpayabletothecontractorbytheownerfortheworks. article2contractorsresponsibilities 1.thecontractorshalldesign,engineer,andconstructtheplantatthesite. 2.thecontractorshallprovideallequipment,materials,tools,facilities,labourandservicesnecessaryforthesuccessfulconstructionoftheplantexceptthoseitemsandfacilitiestobesuppliedbytheownerunderarticle. 3.thecontractorshallperformtheworksinaccordancewiththescheduleinappendix. 4.thecontractorshallprovidetheownerspersonnelwithtrainingofperationandmaintenanceoftheplantinaccordancewithappendix. 5.thecontractorshallsupplytheownerwiththesparepartsspecifiedinappendix. 6.thecontractorshallsupplytheownerwiththemaintenanceequipmentspecifiedinappendix. article3ownersresponsibilities 1.theownershallmakeavailablethesiteandgrantthecontractorfreeanduninterruptedaccesstheretothroughoutthedurationofthiscontract. 2.theownershallprovidethoseitemsandfacilitiesspecifiedinappendixatthetimethereinestablished. 3.theownerwillobtainfromtherelevantauthoritiesthoselicensesandpermitsnecessarytoconstructandoperatetheplantonthesiteincludingworkpermitforthecontractorsemployees. 4.theownershallpaythecontractorfortheworksperformedthecontractpricesetoutinarticle. article4contractprice 1.withindaysaftertheeffectivedateofthiscontract,theownershallpaythecontractorasfullandpletepensationforacplishingtheworksandassumingallobligationsunderthiscontractthecontractpriceintheamountof. 2.thecontractpriceisnotsubjecttoescalation,andthecostofexecutingheworksshallbetheriskofthecontractorwhoshallbedeemedtohavebtainedallinformationandtakenintoaccountallcircumstanceswhichmayaffectthecostinagreeingthecontractprice. article5drawings 1.thecontractorshallsubmittotheownerforapprovalandreviewwithinhetimespecifiedinappendixsuchdrawingsasmayberequiredforconstructionoftheplantunderthiscontract.withinonemonthafterreceivingsuchdrawingstheownershallreviewandapproveordisapprovethedrawing. 2.thecontractorshallberesponsibleforanydefects,errorsoromissionsintheabovedrawingsunlesssuchdefects,errorsoromissionsarecausedbyinaccurateinformationfurnishedinwritingtothecontractorbytheowner. 3.alldrawingsandtechnicaldocumentationdeliveredbytheownerorthecontractortotheotherpartyshallbetreatedasconfidentialbythereceivingpartyunlessagreedotherwise,andshallnotbeusedbythatpartyforpurposesotherthanthoseconnectedwiththiscontract article6inspection 1.thecontractorshallperformallinspectionandtestingoftheplantrequiredbylawandnormalengineeringpractice. 2.theownershallbeentitledatallreasonabletimesandatitsowncosttoinspect,examineandtestthematerialsandworkmanshipoftheplantunderconstruction.suchinspection,examinationortestingifmadeshallnotreleasethecontractorfromanyobligationunderthecontract. 3.thepletedplantshallbeinspected,examinedandtestedbytheowner,andthecontractorshallgivetheownerreasonablenoticeinwritingofthedateonwhichtheplantwillbereadyfortesting. 4.thecontractorshallprovidesuchassistance,labour,materials,electricity,fuels,apparatus,storesandinstrumentsasmayberequiredandasmaybereasonablydemandedtocarryoutsuchtestsbytheownerproperlyandefficiently. 5.whentheplantshallhavepassedtheabovetests,theownershallfurnishthecontractorwithacertificateinwritingtothateffect.noplantshallbedelivereduntilanyfaultsdiscoveredduringinspectionaresatisfactorilyrectified. article7inspection 1.thecontractorshallprovideatthesitetothereasonablesatisfactionoftheownerallmaterials,labour,equipment,servicesandfacilitiesthatmaybenecessaryfortheproperexecutionandpletionoftheworks. 2.withoutprejudicetothegeneralityoftheabove,thecontractorshallprovide,asmaybenecessary,thefollowing: a.constructionequipment. b.meansoftransportwithinthesiteincludingtemporaryroadways. c.fencing,lightingandguardingandallothermaterialsandservicesnecessaryforthesafetyandsecurityofpersonsandproperty. d.temporarystores,officesandotherbuildingsorstructuresformaterialsandpersonsengagedinthewords,includingpersonsemployedbytheowner. e.telephones,firefightingequipmentandfirstaidequipmentuntilthewholeworkshavebeentakenover. f.sanitaryandcanteenfacilitiesfortheuseofpersonsengagedintheworks. 3.thecontractorshallobserveallsafetyandotherregulationsimposedonthesitebylocallaws. 4.thecontractorshallatalltimeskeeptheownerspropertyandtheadjoiningpremises,drivewaysandstreetsfreeofconstructionmaterialsandrubbishcausedbytheworks,andatthepletionoftheworksshallremoveallremainingmaterialsfromandaboutthepremisesandshallleavethesiteandplantsafe,cleanandreadyforuse. article8inspection 1.thecontractorwillsupplyathisowncostfood,transprotandallnecessaryfacilitiesforallhisownpersonnel. 2.onsigningthecontract,thecontractorshallappointaprojectmanagerwhowillrepresentthecontractoratalltimesbepresentatthesiteduringworkinghours.allmunicationsissuedbytheownertotheprojectmanagershallbebindingasifgiventothecontractor. 3.theownermayrequesttheremovalandreplacementofanypersonemployedbythecontractoronthesiteifsuchpersonisintheownersopinionguiltyofmisconduct,inpetenceornegligence. article9inspection 1.thecontractorshallberesponsibleforalllossesofordamagetotheplantbeforefinalacceptance,andshallmakegoodalsuchlossordamageatthecostofthecontractorandtothereasonablesatisfactionoftheownerprovided,however,inthecaseoflossordamagetotheplantarisingfromoroccasionedbycausesforwhichthecontractorismotresponsibleunderthecontract,thesameshallbemadegoodbythecontractorbutatthecostoftheowner,iftheownersodirects. 2.thecontractorshallindemnifytheownerinrespectofalldamageandinjuryoccurringbeforetheissueofthefinalacceptancecertificatetoanypropertyandpersonandagainstallactions,suits,claims,demands,chargesandexpensesarisinginconnectiontherewithwhichshallbeoccasionedbythenegligenceofthecontractororanyofhissubcontractorsorbydefectivedesign,materialsorworkmanshipbutnototherwise. 3.intheeventofanyclaimbeingmadeoractionsbroughtagainsttheownerarisingoutofanymatterinrespectofwhichthecontractorisormaybeliableunderthisarticle,theownershallpromptlynotifythecontractorinwritingthereofandthecontractorshallathisownexpensetakeoverandconductinthenameoftheownerallnegotiationsforthesettlementofthesameandanylitigationthatmayarisetherefrom.theownershallattherequestofthecontractoraffordallsuchinformationandassistanceasthecontractormayreasonablyrequireforthepurposeofdealingwithanysuchclaimoraction. article10inspection 1.withoutlimitingthecontractorsliabilitiesthecontractorwillathisownexpensetakeoutthefollowinginsurance: a.transportationinsuranceonthemachineandequipmentfromitsdeliveryexworkstoarrivalatthesite. b.workerspensationinsuranceforallcontractorsandsubcontractorsemployeesengagedorsimilarstatutorysocialinsuranceinaccordancewiththeapplicablelawsandregulations. ductliabilityinsuranceagainstdamagetopropertyorinjurytopersonsuntiltheendofthemaintenanceperiodinthesumnotlessthat(amount)usdollarsperoccurrence. d.prehensiveautomobileliabilityinsuranceinrespectofallvehiclesusedbythecontractororhissubcontractorinconnectionwithhiscontract. 2.theaforesaidpoliciesofinsurancewillbetakenoutinthenamesofthecontractoranditssubcontractors,theowner,theirengineer,consultantandemployeesandagentsasthejointinsuredandthepoliciesshallcontainawaiverofinsurersrightsofsubrogationagainsttheowner,itsengineer,consultantandemployeesandagents. 3.thecontractorshallmaintaintheaforesaidpoliciesinfullforceandeffectuntilthedischargeofhisobligationsunderthiscontract,andtheownershallhavetherighttodemandfromtimetotimecopiesofthepolicies,endorsementsandrenewalsandreceiptsforpaymentofinsurancepremiums.ifthecontractorfailstomaintainanyofthesepoliciesinfullforceandeffect,theownershallhavetherighttorakeoutsuchpoliciesandpayallrelativepremiumsonbehalfofthecontractorandtodeducttherelevantcostsfromandsumsowingtothecontractor. article11inspection 1.onpletionofallconstructionanderectionworkoftheplant,thecontractorshallinformtheownerandshallcarryoutmechanicalerectionpletiontestsspecifiedinappendixtothesatisfactionoftheowner. 2.onsatisfactorypletionofsuchteststheownerwillissueacertificateofpletionoferectionoftheplant.nofeedstockshallbefedintotheplantuntilacertificateofpletionoferectionhasbeenissued. 3.intheeventofminordeficienciesintheconstructionanderectionworkwhichdonotpreventerectionpletionand/orintheeventofdefectsrevealedbythetestswhichdonotpreventthestartupoftheplant,theownershallissueacertificateofpletionoferectionandthecontractorshallbeobligedtorectifythedeficienciesasquicklyaspossiblethereafter. article12inspection 1.followingtheissueofthecertificatesofpletionoferectionthecontractorshallgivetheownerdaysnoticeofthedatewhenhewillbereadytocarryoutperformancetestsoftheplant. 2.theownershallprovidethefeedstockandotherfacilitiesrequiredinappendixtoenabletheteststomenceontimeandthecontractorshallbegintheperformancetestsatthetimesonotified. 3.theperformancetestswillbecarriedoutinacceptancewiththeprovisionsofappendixandontheirsuccessfulpletion,theownershallissueafinalacceptancecertificatestatingthattheplanthasbeentakenoverbytheownerasfromthedatethereof. 4.iftheplantfailstopassitsperformancetest,thenthecontractor,aftermakingsuchadjustmentsasheconsidersnecessary,shallrepeatsuchtestsinthepresenceoftheowneratatimetobeagreeduponunderthesametermsandconditionsastheoriginaltests. 5.theplantshallnotbemerciallyoperatedbeforetheissueofthefinalacceptancecertificate.notwithstandingthefailureoftheplanttopassitsperformancetests,theownermayathisdiscretionissueafinalacceptancecertificatesubjecttothecontractorremedyingtheplantdefectsassoonaspossible. article13inspection 1.intheeventofanyrepeatofaperformancetestfailingforreasonsimputabletothecontractor,andtherebeingnomutualagreementtocontinueretesting,theresultsofthefinaltestwillbemeasuredandthecontractorwillbeliabletopaytotheownerliquidateddamagesonthescalesetoutinappendixuptoamaximumof%ofthecontractprice. 2.ifthecontractorisunableforreasonswithinhiscontroltoobtainafinalacceptancecertificateforthewholeplantbymonthsfromtheeffectivedateofthiscontract,heshallbeliabletopaytotheownerforeachmonthsdelayliquidateddamagesof%ofthecontractpriceuptoamaximumof%ofthecontractpriceinaccordancewithappendix. 3.thecontractorshallestablish,infavouroftheowner,aguaranteefor%ofthecontractpriceintheformsetoutinappendixinsupportofhisobligationsunderthisarticle. article14inspection 1.thecontractorwarrants,foraperiodofmonthsfromthedateofissueofthefinalacceptancecertificateormonthsfromtheeffectivedateofthiscontractwhicheveristheearlier,thesuppliedplantagainstfaultydesign,materialandworkmanship. 2.theownershallinformthecontractorinwritingofallclaimsarisingunderthisprovisionwithindaysofthedetectionoffault,ifthecontractorsrepresentativeisonsiteorwithindaysifnot,tothecontractorsheadofficebytelexrrecordedairmaildeliverywithsupportingdata.thecontractorshallhavetheoptiontoreplaceorrepairallpartsproveddeficient.forthispurposethecontractorshallhavetheoptiontoreplaceorrepairallpartsproveddeficient.forthispurposethecontractorshallhaveanaccesstothesitetoinspectthefaultypartsatanytimeandtoenablehimtoplywiththetermsofthisguarantee.shouldthecontractorfailtocarryoutagreedremedialworkwithinanyperiodoftimereasonableintheparticularcircumstance,theownershallhavetherighttodothisworkatthecontractorsexpense. 3.thiswarrantyisgivensubjecttotheownerstoring,operatingandmaintainingtheplantinaccordancewiththecontractorsinstructionsandspecifiedoperatingparametersandmaybenullifiedintheeventoftheownerattemptingrectificationworkwithoutthecontractorsagreement. 4.thiswarrantydoesnotincludeitemswhichfailduetonaturalwearandtear,orconsumablesorsimilaritemswhosenaturallifeismonthsorless. 5.ifpursuanttotheabovewarrantythecontractorrepairsorreplacesanyequipment,materialsorworkmanship,theprovisionsofthisarticleshallthemapplytosaidrepairedorreplacedequipment,materialsorworkmanshipforaperiodofoneyearfromthedatesuchrepairsorreplacementsarepleted. article15patentrightsandroyalties 1.thecontractorshallfullyindemnifytheowneragainstallactions,claims,demands,costs,chargesandexpensesarisingfromorincurredbyreasonofanyinfringementofpatents,designorcopyrightofthirdpartiesbytheuseoftheplantsuppliedbythecontractor. 2.thecontractorshallalsoberesponsibleforthepaymenttothirdpartiesofallfees,royaltiesandothercharges,ifand,thatmaybepayableunderthetermsofanylicenseorpermissioninrespectofanydesignoftheworksprovidedbythecontractor,themanufacturedandsupplyoftheplantandanyworkdoneormethodemployedintheconstructionoftheworks.however,theownershallberesponsibleforthepaymenttothirdpartiesofallfees,royaltiesandothercharges,ifany,thatmaybepayableunderthetermsofanylicenseorpermissioninrespectoftheoperationoruseoftheplantoranypartthereof. article16suspension 1.theownershallhavetherighttoinstructthecontractortosuspendanypartorthewholeoftheworksatanytimeupongivingwrittennoticetothecontractorprovidedthatanyperiodofsuspensionexceedingdaysshallbetreatedasterminationunderarticle. 2.iftheownerfailstomakeanypaymenttothecontractorunderthiscontractwithindaysoftheduedate,orifthecontractorisotherwiseinterruptedordelayedintheperformanceoftheworksduetotheownerscontractualdefault,thecontractorshallbeentitledtosuspendperformanceofthiscontract. 3.intheeventofsuspensionoftheworksinaccordancewiththisarticlethecontractorshallbeentitledtoreceivesuchreasonableadditionalpaymentasmaybenecessarytopensatefortheadditionalcostsarisingoutofsuchsuspension,interruptionordelayandsuchreasonableextensionoftimeforperformanceofcontract. article17termination 1.intheeventofsuspensioninaccordancewitharticlelastingforaperiodofmorethandayseitherpartyshallhavetherighttogivenoticetotheotherpartyoftheimmediateterminationofthiscontract. 2.theownermayatanytimebywrittenordertothecontractororderthecontractortoceasefurtherexecutionoftheworks,andthecontractorshalluponreceiptofaterminationorder,ceaseallfurtherworkonthesiteotherthansuchworkthereonastheengineermayinstructforthepurposeofprotecting,makingsafeortidyingupsuchpartsoftheworksasmayalreadyhavebeenexecutedorbeincourseoferection.thecontractorshall,assoonaspracticableafterreceiptoftheterminationorder,alsoceaseallsuchfurtherworkasisbeingdoneoffthesiteintheperformanceofthiscontract. 3.uponterminationofthiscontractunderthisarticleandunderarticle,thecontractorshallbeentitledtobepaid: a.thatpartofthecontractpricewhichisproportionatetoengineeringandservicescarriedout,and b.thatpartofthecontractpricewhichisproportionatetotheplantpletedbutnotdelivered. article18forcemajeure 1.nopartytothiscontractshallbeliabletotheotherpartyforanyfailureofordelayinperformanceofitsobligationshereofnorbedeemedtobeinbreachofthiscontract,ifsuchfailureordelayhasarisenfromforcemajeure. 2.forcemajeuremeanscircumstancesandconditionsbeyondthecontrolofeitherparties,thatwouldrenderitimpossibleforeithertheownerorthecontractortofulfilltheirobligationsunderthiscontract,ordelaysuchfulfillment.anyofthefollowingmattersareconsideredforcemajeure. a.war,hostilities,actofforeignenemy,invasion,warlikeoperations(whetherwartobedeclaredornot)orcivilwar; b.mutiny,civilmotionassumingtheproportionsoforamountingtoapopularrising,militaryrising,insurrection,rebellion,revolution,militaryorusurpedpower,oranyactofanypersonactingonbehalfoforinconnectionwithanyorganizationwithactivitiesdirectedtowardstheoverthrowbyforceofthegovernmentdejureordefacto,ortotheinfluencingofitbyterrorismorviolence; c.earthquake,flood,fireorothernaturalphysicaldisaster; d.denialoftheuseofallports,airports,shippingservicesorothermeansofpublictransport; e.strikeorlockoutorotherindustrialconcertedactionbyworkers,affectingthefulfillmentofcontractorsandsubcontractorsobligations; f.andotherunforeseencircumstancesbeyondthecontrolofthepartiessoaffectedrenderingthefulfillmentoftheirobligationsimpossible. 3.ifeitherpartytothiscontractispreventedordelayedfromorinperforminganyofhisobligationsunderthiscontractbyforcemajeure,thenhemaynotifytheotherpartyofthecircumstancesconstitutingtheforcemajeureandoftheobligationperformanceofwhichistherebydelayedorpreventedandthepartygivingthenoticeshallthereuponbeexcusedfromtheperformanceorpunctualperformance,asthecasemaybe,ofsuchobligationforsolongasthecircumstancesofpreventionordelaymaycontinue. 4.ifbyvirtueoftheprecedingsubclauseditherpartyshallbeexcusedfromtheperformanceorpunctualperformanceofanyobligationforacontinuousperiodofmonths,theneitherpartymayatanytimethereafterterminatethiscontractbygivingawrittennoticetotheotherparty. article19assignmentandsubcontractors 1.thecontractorshallhavetherighttosubcontractthiscontractoranypartthereofinaccordancewithhisusualpracticewithoutrelievingthecontractoroftheobligationsofperformingthiscontract. 2.neitherpartyshallwithoutthepreviousconsentinwritingoftheotherpartyassignoranypartthereoftoanythirdparty,exceptinthecaseofapanyamalgamationorreconstruction,providedthatsuchconsentshallnotbeunreasonablywithheld. article21effectivedateofthecontract 1.theeffectivedateofthiscontractshallbet