Addis Ababa University

Adds Ababa Institute of Technology Department of Civil Engineering Postgraduate Program in: Construction Technology & Management Construction Law & Contract Course

MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law

Name of Students & ID No.; 1. Abebe Wasihun Mekonen 2. Abinet Dametachew Alemu ID No GSE/1697/11 ID No GSE/1699/11

Submitted to: Zewdu Tefera Worke May 29, 2012

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No The Clause & Title Subject Matter Description Remarks

1.
1

General Provisions
1.4: Law & Language The Contract shall be governed by the law of the country or other jurisdiction stated in the Contract Data Documents incorporated in contract in their priority sequence for propose of solving controversies. Within 28 days after the contractor receives the Letter of Acceptance, the parties shall enter into a contract Agreement based upon the form annexed. The contractor should perform the contract with obey subjective applicable laws. a) The employer should make clear permission regarding permanent works b) with regarding the work and contract the contractor should pay all taxes and duties and fee as required by law In Joint venture or grouping of two or more persons: a) all should be legally responsible to the employer b) These persons shall notify the leader c) They should have consent of the employer to alter any of legal status. The Employer shall request Copies of the Law of country and any documents required by law of the Country. The Employer shall submit evidence to show that, the Employer will pay the contract price punctually. The Employer shall notice to the contractor when the Employer considers any claim under this clause. The Employer shall appoint the Engineer to exercises a specified authority stated in contract The Engineer and any of his staff can delegations; and can be revoked.

1.5: Priority of Documents 1.6:Contract Agreement

Any document which intended to be part of contract should be listed. Shall refer with Art. 1678 of CCE*

1.13: Compliance with Law

1.14: Joint and Several Liability

2.
6

The Employer
2.2: Permits, Licences or Approvals 2.4: Employers Financial Arrangements 2.5: Employers Claims

3.
9

The Engineer
3.1: Engineers Duties and Authority 3.2: Delegation by the Engineer

10

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No 11 The Clause & Title 3.3: Instructions of the Engineer 3.5: Determinations Subject Matter Description The Engineer can issue the contractor instruction and additional or modification drawings and also any remedial. When two parities cant reach in agreement, the Engineer makes Determinations. The Contractor shall design and, execute the whole work in accordance with the contract. The Contractor should bring performance Security for works in contract. The Contractor shall assign his representative to act on his behalf. Remarks

12

4.
13 14 15

The Contractor
4.1:Contractors General Obligations 4.2: Performance Security 4.3: Contractors Representative

Should Cross referred with Article 28 Ethiopian Building Proclamation No 624/2009 For Administrative contracts Shall refer with Art. 3295 of CCE* Shall refer with Art. 1713 of CCE* For Public Administrative contracts Shall refer with Art. 3183 & 3185 of CCE* Should Cross referred with Article 29 Ethiopian Building Proclamation No 624/2009 Should Cross referred with Article 32 Ethiopian Building Proclamation No 624/2009

16

4.4: Subcontractors

17

18

4.11: Sufficiency of the Accepted Contract Amount 4.12: Unforeseeable Physical Conditions

The whole work shall not give for subcontracts. In any faller and due to subcontractor the Contractor will be the one who is responsible. The contractor should be content for the contract price. When the contractor encounters natural and manmade conditions and if adverse considers unforeseeable. The contactor shall give notice to the Engineer. The Employer shall give access and possession of site, unless stated in contract.

19

4.13: Rights of Way and Facilities

20

4.22: Security of the Site

The contractor is responsible for security of the site unless specified in particular condition.

5.
21

Nominated Subcontractors
5.2: Objection to Nomination Nominated subcontractor may be rejected if they are not full fill the employers need requirements The Contractor shall obey all Labour Laws.

6.
22

Staff and Labour

6.4: Labour Law

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No 23 The Clause & Title 6.9: Contractors Personnel Subject Matter Description The Contractors Personnel must be appropriately qualified. Remarks Should Cross referred with Article 28 Ethiopian Building Proclamation No 624/2009

24 25

26

6.11: Disorderly Conduct 6.20: Prohibition of Forced or Compulsory Labour 6.21: Prohibition of Harmful Child Labour 7.5: Rejection

The Contractor shall prevent unlawful and any other unnecessary actions by law. The Contractor shall not employ force or compulsory labour in any for the work. The Contractor shall not Employee any Child to perform any part of work. Any part of work fund to be defective the contractor shall ensure that reject the item with the defection. Should Cross referred with Article 53 Ethiopian Building Proclamation 624/2009 & Shall refer with Art. 2614 of CCE* Shall refer with Art. 1703 of CCE*

7.
27

Plant, Materials and Workmanship

28 29

7.6: Remedial Work 7.7: Ownership of Plant and Materials

The Contractor oblique to rework for defected and rejected works. Unless specified in law of the Country all works plan and materials become property of the Employer. The Contractor shall complete the whole of the work or the section in accordance with contract. The Contractor shall be entitled to Extension of time in causes; variation, Taking- Over of tasks, Unforeseeable shortages, and any delay caused by attributable to the Employer. The Contractor shall carryout Tests on completions. Unless it falls to pass Testes on Completion the work shall be taken over by the Employer. The Engineer may issue to take over Certificate for part of the work to the Employer.

8.
30

Commencement, Delays and Suspension

8.2: Time for Completion 8.4: Extension of Time for Completion

31

9.
32

Tests on Completion
9.1: Contractors Obligation 10.1: Taking Over of the Works and Section 10.2: Taking Over of Parts of the Works

10.
33

Employers Taking over

34

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No The Clause & Title Subject Matter Description Remarks

11.
35

Defects Liability
11.1: Completion of Outstanding Work and Remedying Defects 11.3: Extension of Defects Notification Period 11.4: Failure to Remedy Defects 11.9: Performance Certificate 11.10: Unfulfilled Obligations 12.4: Omissions When the contractor complete the whole works as per contract In appearance of defect or by reason of damage the Employer entitled in extension of defect notification period. If the Contractor falls to make remedy defects, the Contractor shall notify the Employer. Contractor Discharges all responsibilities up on contract the Engineer shall issue Performance Certificate. Unperformed obligation of each party shall remain liable for fulfillment. The omission of any work if considered as Variation; the Contractor shall give notice the Engineer. Variation may be initiated by the Engineer at any time prior to issuing the Taking Over Certificate. The Engineer request a proposal, The Contractor responds, Accordingly the Engineer shall proceed contractually. The Contract Price shall be adjusted due to introduction of new Laws and the repeal or modification of existing Law of the Country. The Contractor liable for falls and rises of costs of mentioned construction equipment, Material and Labour. No Interim Payments Certificates will be certified until the Employer approved the Performance Security. The Contractors Advance Payment shall reimburse in each Interim Payment Certificate. The Contractor is entitled to receive financial charges for delayed payments. Shall refer with Art. 1740(1) & 1774 of CCE* Shall refer with Art. 1771(2) of CCE* Shall refer with Art. 1773 of CCE* Shall refer with Art. 1806 of CCE*

36

37

38

39

12.
40

Measurement and Evaluation

For Administrative contracts Shall refer with Art. 3285(2) of CCE* Shall refer with Art. 17631770 of CCE* & For Administrative contracts Shall refer with Art. 3284 &3885 of CCE*

13.
41

Variations and Adjustments

13.1: Right to Vary

42

13.3: Variation Procedure 13.7: Adjustments for Changes in Legislation 13.8: Adjustments for Changes in Cost

43

44

For Administrative contracts Shall refer with Art. 3186 of CCE*

14.
45

Contract Price and Payments

14.6: Issue of Interim Payment Certificates 14.7: Payment

46

47

14.8: Delayed Payment

Shall refer with Art. 1691(2) of CCE*

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No 48 The Clause & Title 14.9: Payment of Retention money Subject Matter Description The first half of Retention money shall be released when the Taking Over Certificate issued, the second half of Retention Money shall be released after the latest of expiry of the Defects Notification Periods. The Contractor shall submit Statement at Completion to the Engineer. The Engineer shall deliver, to the Employer and to the Contractor, Final payment Certificate. The Employer shall not be liable to the Contractor for any matter. The Engineer shall give notice when the Contractor falls to discharge his obligations under the contract. The Employer shall be entitled to terminate the Contract; if the contractor falls to bring Performance Security, falls to line up with his performance, if the Contractor assigns subcontractor or the whole work, if the contractor becomes bankrupt or fraud act. After notice of termination the Employer may shall precede Employers claims, withhold further payments or the Employer shall pay balance to the contractor. The Employer shall entitle to terminate the contract at any time for the Employers convenience by giving notice. The Employer may terminate the Contractors employment under the contract if the contractor conducts in corrupt, fraudulent, collusive or coercer practice. If the Engineer fails to certify issue of Interim Payment Certificate, or the Employer fails to pay accordingly, the Contractor shall suspend work after giving notice to the Engineer. Shall refer with Art. 1772, 1773 & 1775 of CCE* Remarks

49 50

14.10: Statement at Completion 14.13: Issue of Final Payment Certificate 14.14: Cessation of Employers Liability 15.1: Notice to Correct

51

15.
52

Termination by Employer

53

15.2: Termination by Employer

Shall refer with Art. 1704 & 1771 (1) of CCE*

54

15.4: Payment after Termination

55

56

15.5: Employers Entitlement to Termination for Convenience 15.6: Corrupt or Fraudulent Practices

Shall refer with Art. 1784 of CCE* (Permissive Article) Shall refer with Art. 1704 of CCE*

16.
57

Suspension and Termination by Contractor

16.1: Contractors Entitlement to suspend Work

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No 58 The Clause & Title 16.2: Termination by Contractor 16.3: Cessation of Work and Removal of Contractors Equipment 16.4: Payment on Termination Subject Matter Description The Contractor entitled to terminate the Contract under stated condition in contract. After a notice of termination the Contractor leave the site remove all Goods from site. After a notice of termination of contractor has taken effect. The Employer shall; return the Performance Security to the Contractor, pay to the Contractor the amount of any loss and optional termination payment and Release. The Contractor shall take care of whole works and Goods under contract. The Employer take risks affect directly execution of work like; war terrorism, design of any Employers Personnel and unforeseeable nature happen in the Country. The contractor entitled to Extension of Time for Completion and Cost plus profit due to Employers risk. Neither party shall be liable to the other party of loss of use of any works. The insuring party shall insure the works, plan, materials and Documents until the date of issue of the performance Certificate. If any party is prevented from performing its substantial obligations under force majeure shall be give notice to other. The Contractor shall be entitled extension of time and cost due to Force Majeure and having proper notice. If the execution of work in progress is prevented by reason of force majeure and notice has been given then either party may give to the other party a notice termination of contract. Shall refer with Art. 1793 & 1794 of CCE* For Administrative contracts Shall refer with Art. 3181 of CCE* Remarks For Administrative contracts Shall refer with Art. 3180 of CCE*

59

60

17.
61 62

Risk and Responsibility

17.2: Contractors Care of the Works 17.3: Employers Risks

63

17.4: Consequences of Employers Risk 17.6: Limitation of Liability

64

18.
65

Insurance
18.2: Insurance for Works and Contractors Equipment

19.
66

Force Majeure
19.2: Notice of Force Majeure 19.3: Consequence of Force Majeure 19.6: Optional Termination, Payment and Release

67

68

*CCE is to paraphrase 1960 Civil Code of Ethiopia

Construction Technology & Management

Assignment one On Applicable Law

Construction Law & Contract Course MDB-FIDIC Clauses & their Cross-Reference to the Applicable Law
No 69 The Clause & Title 19.7: Release from Performance Subject Matter Description Upon notice by either party to other party; the parties shall be discharged from further performance. The Contractor shall notify to the Engineer; if the Contractor considers himself to be entitled for extension of completion time or any payment under or in contract. The parties shall have Dispute Board as stared contract data. The parties fall to agree upon the appointment of the dispute board, either party fall to nominate a member approved by another; in such condition the parties fall to agree on DB. Then the appointed entity named in Contract Data shall be appointed final and conclusive. If a dispute of any kind arises between the parties either party may refer the dispute in writing to DB for its discussion. Where notice of Dispute Decision given to the parties and if there any dispute did not settle the parties shall settle amicably before go to Arbitration. If any dispute did not settled by Dispute Board, or amicably by the parities finally settled by Arbitration. In the event that the party falls to comply with final binding decision of DB, then the party shall refers to failure to Arbitration. When the dispute arises between the parties and no DB appointed or the parities gate in to Arbitration directly, made settlement by amicable way. Then there is no DB in place. Remarks

20.
70

Claims, Disputes and Arbitration

20.1: Contractors Claims

71 72

20.2: Appointment of the Dispute Board 20.3: Failure to Agree on the Composition of the Dispute Board

73

20.4: Obtaining Dispute Decision 20.5: Amicable Settlement

74

75

20.6: Arbitration

Shall refer with Art. 3331 of CCE*

76

77

20.7: Failure to Comply with Dispute Boards Decision 20.8: Expiry of Dispute Boards Appointment

Shall refer with Art. 3336 of CCE*

*CCE is to paraphrase 1960 Civil Code of Ethiopia