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CONDITIONS OF SUBCONTRACT FOR WORKS OF CIVIL ENGINEERING COSNTRUCTIONPart I- General ConditionsPart II- Guidance for the Preparation of Condition of Particular ApplicationWith Forms of Offer and Agreement(For use in conjunction with the Conditions of Contract for Works of Civil Engineering Construction, Forth Edition 1987 Reprinted 1992 with further amendments)1st Edition 1994ACKNOWLEDGEMENTSFIDIC extends special thanks to Christopher R. Seppala and Maurizio Ragazzi, White & Case, Paris, for acting as the principal drafter of this document. This contribution to FIDIC and the profession is highly appreciated.The draft was reviewed initially by Mario Asin of TAMS, USA and Edward Corbett of Corbett & Co., UK and subsequently by the World Bank, European International Contractors, the International Bar Association and ConSpec, all of whom provided valuable comments. Advice on insurance matters was provided by Martyn J. Nixon of Willis Corron, London.The preparation was carried out under the general direction of the FIDIC Contracts Committee comprising K.B (Tony) Norris, Consulting Engineer, UK; Michael Mortimer-Halwkins of SwedPower, Sweden; and John Bowcock of Sir Alexander Gibb & Partner Ltd. UK.FIDIC wishes to record its appreciation of the time and effort devoted by all the above.The ultimate decision on the form and content of the document rests with FIDIC.CONTENTSPART I:GENERAL CONDITIONSDefinitions and Interpretation1.1Definitions1.2Headings and Marginal Notes1.3Interpretation1.4Singular and Plural1.5Notices, Consents, Approvals, Certificates, Confirmation and Determinations1.6Instructions in WritingGeneral Obligations 2.1Subcontractors General Responsibilities2.2Performance Security2.3Programme to be submitted by Subcontractor2.4Assignment of Subcontract2.5Sub-contractingSubcontract Documents3.1Language/s3.2Governing Law3.3Subcontract Agreement3.4Priority of Subcontract DocumentsMain Contract4.1Subcontractors Knowledge of Main Contract4.2Subcontractors Responsibilities in Relation to Subcontract Works4.3No Privity of Contract with Employer4.4Possible Effects of Subcontractors Breaches of SubcontractTemporary Works, Contractors Equipment and/or Other Facilities (if Any)5.1Subcontractors Use of Temporary Works5.2Subcontractors Use of Contractors Equipment and/or Other Facilities (if any) in Common with Other Subcontractors5.3Subcontractors Exclusive Use of Contractors Equipment and/or Facilities (if Any)5.4Indemnification for Misuse of Temporary Works, Contractors Equipment and/or Other Facilities (if Any)Site Working and Access6.1Working Hours on Site; Subcontractors Compliance with Rules and Regulations6.2Availability of Site to Subcontractor and Access to Site6.3Subcontractors Obligation to Permit Access to Subcontract WorksCommencement and Completion7.1Commencement of Subcontract Works;Subcontracts Time for Completion7.2Extension of Subcontractors Time for Completion7.3Contractors Obligation to NotifyInstructions and Decision8.1Instruction and Decision under Main Contract8.2Instruction under SubcontractVariations9.1Variation of Subcontract Works9.2Instructions for VariationValuation of Variations10.1Manner of Valuation10.2Assessment of Value of Variation10.3Valuation by Reference to Measurement under Main Contract10.4Quantity Estimated and Quantity Executed10.5DayworkNotices and Claims11.1Notices11.2Claims11.3Effects of Failure to Give NoticeSubcontractors Equipment, Temporary Works and Materials12.1Incorporation by ReferenceIndemnities13.1Subcontractors Obligation to Indemnify13.2Contractors Obligation to IndemnifyOutstanding Work and Defects14.1Subcontractors Obligation before Taking-Over14.2Subcontractors Obligation after Taking-Over14.3Defects Caused by Contractors Act or DefaultInsurance15.1Subcontractors obligation to InsureContractors Obligation to Insure; Subcontract Works at Subcontractors RiskEvidence of Insurance; Remedy on Failure to InsurePayment16.1Subcontractors Monthly Statements16.2Contractors Monthly Statements16.3Payment Due; Payment Withheld or Deferred; Interest16.4Payment of Retention Money16.5Payment of Subcontract Price and Other Sums Due16.6Cessation of Contractors LiabilityTermination of Main Contract17.1Termination of Subcontractors Employment17.2Payment after Termination17.3Termination of Main Contract in Consequence of Breach of SubcontractDefault of Subcontractor18.1Termination of Subcontract18.2Contractors and Subcontractors Rights and Liabilities upon Termination18.3Contractors PowersSettlement of Disputes19.4Amicable Settlement and Arbitration19.2Dispute in Connection with or Arising out of Main Contract Touching or Concerning Subcontract WorksNotices and Instructions20.1Giving of Notices and Instructions20.2Change of AddressChanges in Cost and Legislation21.1Increase or Decrease of Cost21.2Subsequent LegislationCurrency and Rates of Exchange22.1Currency Restriction22.2Rates of ExchangeREFERENCE TO PART IIPART II:GUIDANCE FOR THE PREPARATION OF CONDITIONS OF PARTICULAR APPLICATION1Definitions and Interpretation2General Obligations3Subcontract Document4Main Contract5Temporary Works, Contracts Equipment and/or Other Facilities (if Any)6Site Working and Access7Commencement and Completion12Subcontractors Equipment, Temporary Works and Materials14Outstanding Work and Defects15Insurances16Payment19Settlement of Disputes22Currency and Rates of ExchangeSUBCONTRACTORS OFFERAPPENDIX TO SUBCONTRACTORS OFFERSUBCONTRACT AGREEMENTPART I GENERAL CONDITIONSDefinitions and Interpretation1.1In the Subcontract (as hereinafter defined) all words and expression shall have the same meanings as are respectively assigned to them in the Main Contract (as hereinafter defined), except where the context otherwise requires and except that the following words and expressions shall have the meanings hereby assigned to them:(a) (i) “Employer” means the person named as such in Part II of the Conditions of Subcontract and the legal successors in title to, or assignees of, such person, as the Contractor shall notify the Subcontractor from time to time.(ii) “Contractor” means the person named as such in Part II of the Conditions of the Subcontract and the legal successors in title to such person, but not (except with the consent of the Subcontractor) any assignee of such person.(iii) “Subcontractor” means the person whose offer has been accepted by the Contractor and the legal successors in title to such person, but not (except with the consent of the Subcontractor) any assignee of such person.(iv) “Engineer” means the person appointed by the Employer to act as Engineer for the purposes of the Main Contract and named as such in Part II of the Conditions of Subcontract.(b) (i) “Main Contract” means the contract entered into between the Employer and the contractor, Particulars of Which are given in Part II of the Conditions of Subcontract.(ii) “Subcontract” means the Conditions of Subcontract (Part I and II), the Subcontract Specification, the Subcontract Drawings, the Subcontract Bill of Quantities, the Subcontracts Offer, the Contracts Letter of Acceptance, the Subcontract Agreement (if completed) and such further documents as may be expressly incorporated in the Contractors Letter of Acceptance or Subcontract Agreement (if competed).(iii) “Subcontract Specification” means the specification of the Subcontract Works included in the Subcontract and any modification thereof or addition thereto made pursuant to Clause 9.(iv) “Subcontract Drawings” means all drawings, calculations and technical information of a like nature under the Subcontract.(v) “Subcontract Bill of Quantities” means the priced and completed bill of quantities forming part of the Subcontractors Offer.(vi) “Subcontractors Offer” means the Subcontractors priced offer to the Contractor for the execution and completion of the Subcontract Works and the remedying of any defects therein in accordance with the provisions of the Subcontract, as accepted by the Contractors Letter of Acceptance.(vii) “Contractors Letter of Acceptance” means the formal acceptance by the Contractor of the Subcontractors Offer.(viii) “Subcontract Agreement” means the subcontract agreement (if any) referred to in Sub-Clause 3.3.(ix) “Appendix to Subcontractors Offer” means the appendix comprised in the form of Subcontractors Offer annexed to the Conditions of Subcontract.(x) “Conditions of Subcontract” means Parts I and II of the FIDIC “Conditions of Subcontract for Works of Civil Engineering Construction (for use in conjunction with the Conditions of Contract for Works of Civil Engineering Construction, Forth Edition 1987 Reprinted 1922 with further amendments)”, 1994, as adapted by the Contractor and the Subcontractor and forming part of the Subcontract.(xi) “Conditions of Main Contract” means Part I of the FIDIC “Conditions of Contract for Works of Civil Engineering Construction, Forth Edition 1987 Reprinted 1922 with further amendments”, and Part II such Conditions as adapted by the Employer and the Contractor, which form part of the Main Contract.(c) (i) “Subcontractors Commencement Date” means the time for completion of the Subcontract Works or any section thereof as stated in the Appendix to Subcontractors Offer (or as extended under Clause 7) calculated from the Subcontractors Commencement Date.(ii) “Subcontractors Time for Completion” means the time for completion of the Subcontract Works or any Section thereof for the execution and completion of the Subcontract Works and the remedying of any defects therein in accordance with the provisions of the Subcontract.(d) “Subcontract Price” means the sum stated in the Contractors Letter of Acceptance as payable to the Subcontractor for the execution and completion of the Subcontract Works and the remedying of any defects therein in accordance with the provisions of the Subcontract.(e) (i) “Main Works” means the Works as defined in the Main Contract.(ii) “Subcontract Works” means the Works described in Part II of the Conditions of Subcontract.(iii) “Subcontractors Equipment” means all appliances and things of whatsoever nature (other than Temporary Works) required for the execution and completion of the Subcontract Works and the remedying of any defects therein, but dose not include Plant, materials or other things intended to form or forming part of the Subcontract Works.Headings and Marginal Notes1.2The headings and marginal notes in the Conditions of Subcontract shall not be deemed part thereof or be taken into consideration in the interpretation or construction thereof or of the Subcontract.Interpretation1.3Words importing persons or parties shall include firms and corporations and any organization having legal capacity.Singular andPlural1.4Words importing the singular only also include the plural and vice versa where the context requires.Notices, Consents, Approvals, Certificates, Confirmations and Determinations1.5Whatever in the Subcontract provision is made for the giving or issue of any notice, consent, approval, certificate, confirmation or determination by any person, unless otherwise specified such notice, consent, approval, certificate, confirmation or determination shall be in writing and the words “notify”, “certify”, “confirm” or determine” shall be construed accordingly. Any such notice, consent, approval, certificate, confirmation or determination shall not unreasonably be withheld or delayed.Instruction in Writing1.6Instructions given by the Contractor shall be in writing, provided that if for any reason the Contractor considers it necessary to give any such instruction orally, the Subcontractor shall comply with such instruction. Confirmation in writing of such oral instruction given by the Contractor, whether before or after carrying out of the instruction shall be deemed to be an instruction within the meaning of this Sub Clause. Provided further that if the Subcontractor, within 7 days, confirms in writing to the Contractor any oral instruction of the Contractor and such confirmation is not contradicted in writing within 7 days by the Contractor, it shall be deemed to be an instruction of the Contractor. General ObligationsSubcontractors General Responsibilities2.1The Subcontractor shall, with due care and diligence, design (to the extent provided for by the Subcontract), execute and complete the Subcontract Works and remedy any defects therein in accordance with the provisions of the Subcontract. The Subcontractor shall provide all superintendence, labor, materials, Plant, Subcontractors Equipment and all other things, whether of a temporary or permanent nature, required in and for such design, execution, completion and remedying of any defects, so far as the necessity for providing the same is specified in or is reasonably to be inferred from the Subcontract, and except as otherwise agreed in accordance with Clause 5 and set out in Part II of the Conditions of Subcontract.The Subcontractor shall give prompt notice to the Contractor of any error, omission, fault or other defect in the design of or specification for the Subcontract Works which he discovers when reviewing the Subcontract and/or the Main Contract or executing the Subcontract Works. Performance Security2.2If the Subcontract requires the Subcontractor to obtain security for his proper performance of the Subcontract, he shall obtain and provide to the Contractor such security in the sum stated in the Appendix to Subcontractors Offer. Such security shall be in the form annexed to the Conditions of the Subcontract or in such form as may be agreed between the Contractor and the Subcontractor. The institution providing such security shall be subject to the approval of the Contractor. The cost of complying with the requirements of this Clause shall be borne by the Subcontractor, unless the Subcontract otherwise provides.The performance security shall be valid until the Subcontractor has executed and completed the Subcontract Works and remedied any defects therein in accordance with the Subcontract. No claim shall be made against such security after the issue of the Defects Liability Certificate in respect of the Main Works and such security shall be returned to the Subcontractor within 28 days of the issue of the said Defect Liability Certificate.Prior to making a claim under the performance security the Contractor shall, in every case, notify the Subcontractor stating the nature of the default in respect of which the claim is to be made.Programme to be Submitted by Subcontractor2.3The Subcontractor shall, within the time stated in Part II of the Conditions of Subcontract after the date of the Contractors Letter of Acceptance, submit to the Contractor for his consent a programme, in such form and detail as the Contractor shall reasonably prescribe, for the execution of the Subcontract Works. The Subcontractor shall, whenever required by the Contractor, also provide in writing for his information a general description of the arrangements and methods which the Subcontractor proposes to adopt for the execution of the Subcontract Works.If at any time it should appear to the Contractor that the actual progress of the Subcontract Works does not conform to the programme to which consent has been given, the Subcontractor shall produce, at the request of the Contractor, a revised programme showing the modifications to such programme necessary to ensure completion of the Subcontract Works within the Subcontractors Time for Completion.Assignment of Subcontract2.4The Subcontractor shall not, without the prior consent of the Contractor (which consent, notwithstanding the provisions of Sub-Clause 1.5, shall be at the sole discretion of the Contractor), assign the Subcontract or any part thereof, or any benefit or interest therein or thereunder, otherwise than by:(a) a charge in favour of the Subcontractors bankers of any monies due or to become due under the Subcontract, or(b) assignment to the Subcontractors insurers (in cases where the insurers have discharged the Subcontractors loss or liability) of the Subcontractors right to obtain relief against any other party liable.Sub- sub contracting2.5The Subcontractor shall not subcontract the whole of the Subcontract Works, nor shall he subcontract any part of the Subcontract Works without the prior consent of the Contractor. Any such consent shall not relieve the Subcontractor from any liability or obligation under the Subcontract and the Subcontractor shall be responsible for the acts, defaults and neglects of any of his subcontractors, including such subcontractors agents, servants or workmen as fully as if they were the acts, defaults or neglects of the Subcontractor, his agents, servants or workmen.Provided that the Subcontractor shall not be required to obtain such consent for:(a) the provision of labor, or(b) the purchase of materials which are in accordance with the standards specified in the Subcontract and/or the Main Contract.In the even
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