You are on page 1of 17

Core Clauses (Updated as at 17.10.

2016)
In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Rationale

11.2

Add

the following after the end of the sub-clause (7):

To enhance clarity by specifying that Equipment covers Constructional Plant as defined in GCC 1
GCC 1. GCCs definition of Constructional Plant is provided in the additional condition of
contract clause "Hired and Hire-Purchase Constructional Plant". The Project Offices should
update the clause no. in square bracket.

Options A, B, C and D

To simplify calculation of fee by combining the direct and subcontract fee percentages since
we are advised that contractors in UK appear to tender the same figure for both perecentages.
Normally, certain people's expenses may not be applied with the fee percentage in pilot
projects. The Project Offices should update the item no. of the Shorter Schedule of Cost
Components in square bracket to suit their projects.

N.A.

Options A and B

To simplify calculation of fee by combining the direct and subcontract fee percentages since
we are advised that contractors in UK appear to tender the same figure for both perecentages.
Normally, certain people's expenses may not be applied with the fee percentage in pilot
projects. The Project Offices should update the item no. of the Schedule of Cost Components
in square bracket to suit their projects.

N.A.

Options C and D

Equipment also includes Constructional Plant as defined in clause [D19] of the additional conditions of contract.

11.2

Replace

the whole sub-clause (8) by the following new sub-clause (8):

The Fee is the sum of the amounts calculated by applying the fee percentage to the Defined Cost except the part of the Defined Cost under
items [11 and 12] of the Shorter Schedule of Cost Components.
11.2

Replace

the whole sub-clause (8) by the following new sub-clause (8):

The Fee is the sum of the amounts calculated by applying the fee percentage to the Defined Cost except the part of the Defined Cost under
items [13 and 15] of the Schedule of Cost Components.

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

11.2

Replace

due to Subcontractors for work which is subcontracted without taking account of amounts deducted for by due to Subcontractors being
accepted by the Project Manager for work which is subcontracted, excluding payment made in relation to contribution by the subcontractors
of all tiers to the employers mandatory provident fund for the Site Personnel under the Mandatory Provident Fund Schemes Ordinance (Cap.
485) as set out in item 15 of the Schedule of Cost Components and without taking account of amounts deducted for in the first main bullet
point in sub-clause (23).

To adopt an approach that only subcontracted work executed by the Subcontractors who are
N.A.
accepted by the Project Manager in compliance with this contract is included as a part of the
Defined Cost. Payments for the Contractors mandatory contribution under the Mandatory
Provident Fund Schemes Ordinance (Cap. 485), including contribution by his subcontractors of
all tiers to the employers mandatory provident fund for the Site Personnel under the contract,
should be made under item 15 of the Schedule of Cost Components.

Options C and D

11.2

Add

NEC Clause 26, the additional conditions of contract or before the Works Information in the first sub-bullet point of the third main bullet To modify the definition of Disallowed Cost to suit the acceptance or procurement procedures N.A.
point in sub-clause (25).
in NEC contracts in Hong Kong.

Options C and D

11.2

Add

, a mediation or arbitration after preparation for and conduct of an adjudication in the eighth main bullet point in sub-clause (25).

To modify the definition of Disallowed Cost to suit the use of mediation or arbitration as
options for settlement of disputes.

N.A.

Options C and D

11.2

Replace

forecasts will have been paid by the Contractor before the next assessment date by assesses the Contractor has paid before the
assessment date in sub-clause (29).

To modify the definition of Price for Work Done to Date by adopting cost reimbursement
approach.

N.A.

Options C and D if forecast of payment


by the Contractor is not adopted.

11.2

Replace

the whole sub-clause (29) by the following new sub-clause (29):

To modify the definition of Price for Work Done to Date by adopting an enhanced cost
reimbursement plus forecast approach.

N.A.

Options C and D if comments or


endorsement have been sought from the
Inter-departmental Working Group
and/or the Steering Committee where
appropriate.

The Price for Work Done to Date is the total Defined Cost which the Project Manager

assesses as having been paid by the Contractor before the concerned assessment date and

forecasts will have been paid by the Contractor at or after the concerned assessment date but before the next assessment date, for the cost
components in the Schedule of Cost Components shown in the Contractor 's application for payment
in accordance with the first bullet point in clause 50.1 plus the Fee.

14.1

Add

, nor do the Project Manager 's or the Supervisor 's assessments, certificates or other acts or omissions at the end of the clause.

To widen the scope of activities of the Project Manager and the Supervisor that are expressed GCC 2(4), GCC 7(5), GCC 16(2),
not to change the Contractor s responsibility for the works in order to retain the Contractor s SCC73(2)
liability despite the administrators acts.

Options A, B, C and D

19.1

Replace

an event by an event arising from the Employer or Others in the first sentence.

To better define the prevention event.

Options A, B, C and D

P. 1 of 17

N.A.

Core Clauses (Updated as at 17.10.2016)


In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

Replace

the Project Manager gives an instruction to the Contractor stating that how he is to deal with the event at the end of clause 19.1 by the
Contractor and the Project Manager notify the other as soon as either becomes aware of such event. Either the Project Manager or the
Contractor may instruct the other to attend a risk reduction meeting normally arranged under NEC Clause 16.2. Each of them may instruct
other people to attend if the other agrees. At the meeting, those who attend co-operate in making and considering proposals for how the
effects of the event can be reduced, seeking solutions that bring advantage to all those who will be affected, and deciding on the proposed
actions which will be taken and who, in accordance with this contract, will take to deal with the event. The Project Manager provides the
decision to the Contractor within six weeks after the meeting, or a longer period to which the Contractor has agreed.

To encourage the Contractor to resolve the problems rather than automatically looking to the
Project Manager for an instruction.

N.A.

Options A, B, C and D

21.1 and 21.2

Replace

the words the Works Information by the Works Information and/or the additional conditions of contract in the clauses.

To align with DEVB TCW No. 3/2014 for the alternative designs and Cost Savings Designs.

N.A.

Options A, B, C and D if the


Contractor's design, alternative designs
or Cost Savings Designs are allowed.

22.1

Replace

the whole clause 22.1 by the following new clause 22.1:


To refer to the additional conditions of contract clauses aligned with DEVB TCW No.
The Contractor shall comply with the requirements on the intellectual property rights in relation to the design and other materials and things 3/2014. The Project Offices should update the clause no. in square bracket.
provided by him as detailed in clause [F8] of the additional conditions of contract .

DEVB TCW No. 3/2014

Options A, B, C and D if the


Contractor's design, alternative designs
or Cost Savings Designs are allowed.

21, 21.1 to
21.3, 22 and
22.1

Delete

the whole clauses 21, 21.1 to 21.3, 22 and 22.1

If the Contractor's design, alternative designs and Cost Savings Designs are not allowed.

N.A.

23.1

Replace

, by or at the end of the first bullet point.

If the Contractor's design, alternative designs and Cost Savings Designs are not allowed.

N.A.

Options A, B, C and D if the


Contractor's design, alternative designs
or Cost Savings Designs are not
allowed.
Options A, B, C and D if the
Contractor's design, alternative designs
or Cost Savings Designs are not
allowed.

Delete

the whole second bullet point.

Add

a new clause 24.3 as follows:

The Project Offices should list out the key people in the Contract Data Part two for the
Contractor to input where appropriate. The Project Offices should update the time in square
bracket to suit their projects.

SDEVs memo ref. DEVB(W)


510/17/01 dated 16.7.2010
SCC 68
SCC 68A

Options A, B, C and D

To refer to the additional conditions of contract clauses on tendering requirements on


subcontracting. The Project Offices should update the clause no. in square bracket.

N.A.

Options C and D

19.1

24.3

If any key person is not identified in the Contract Data, the Contractor submits the name, relevant qualifications and experience of each key
person to the Project Manager for acceptance within [two weeks] of the Contract Date.
26.1

Add

a new paragraph after the end of clause 26.1 as follows:

The Contractor complies with the requirements on subcontracting as detailed in clause [C9] of the additional conditions of contract .

26.2

Replace

The Contractor submits the name of each proposed Subcontractor to the Project Manager for acceptance. A reason for not accepting the
Subcontractor is that his appointment will not allow the Contractor to Provide the Works. by The Contractor submits the name of each
proposed Subcontractor with the relevant tendering information to the Project Manager for acceptance. A reason for not accepting the
Subcontractor is that his appointment will not allow the Contractor to Provide the Works or the tender price and rates for the subcontract
submitted by the proposed Subcontractor are not competitively tendered or open market prices or rates, or his tender for the subcontract
contains activities or items which are substantially over or under-priced, or erratically priced. in the first two sentence of the clause.

To take into account ICAC's concern on the potential erratical pricing issue in subcontracts.

N.A.

Option C and D

26.3

Delete

the first bullet point.

To delete the standard exemption (i.e. an NEC contract is proposed) for obtaining the Project
Managers acceptance on the proposed conditions of subcontracts, which is to avoid the
inclusion of subcontract terms that may be contrary to the contract terms between the
Employer and the Contractor .

N.A.

Options A, B, C and D

Replace

or at the end of the third bullet point with a comma.

To supplement potential reasons of withholding an acceptance to the Contractor s proposed


conditions of subcontracts.

N.A.

Options A, B, C and D

Replace

the full-stop at the end of the fourth bullet point with or

P. 2 of 17

26.3
Core Clauses (Updated as at 17.10.2016)
In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Add

two bullet points to the end of clause 26.3 as follows:

Rationale
To supplement potential reasons of withholding an acceptance to the Contractor s proposed
conditions of subcontracts.

Related GCC/SCC/TC/Memo
N.A.

To be applied to the stated main


Options
A, unless
B, C and
D
Option(s),
otherwise
specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

they do not require a Subcontractor to comply with the relevant subcontracting requirements set out in the additional conditions of
contract and/or in the Works Information or
they do not require a Subcontractor to be registered under the Subcontractor Registration Scheme.

26.4

Delete

the whole clause 26.4.

To omit the Project Manager s obligation to accept the proposed contract data of each
subcontract.

N.A.

Options C and D

27.1

Replace

his design by his submission, proposal, design and work in the clause.

To specify that it is the Contractor s responsibility to obtain approval from Others whenever
necessary

N.A.

Options A, B, C and D

27.4

Add

and the additional conditions of contract to the end of the clause before the full-stop.

To suit the Government practice with certain health and safety requirements covered in the
additional conditions of contract .

N.A.

Options A, B, C and D

30.2

Replace

within one week of Completion by within [three weeks] of Completion in the clause.

Options A, B, C and D

31.2

Delete

the first sub-bullet point of the seventh main bullet point.

To allow sufficient time to seek any further comments from the operation and maintenance
N.A.
parties before certifying Completion. The Project Offices should update the time in square
bracket to suit their projects.
To impose specific requirement of not allowing the Contractor having discretion on the time to N.A.
take over a part of the Site if later than its access date. Amendments to clauses 31.2, 33.1 and
60.1(2) are required if this amendment is adopted.

Replace

and at the end of the eighth main bullet point with a comma.

N.A.

Options A, B, C and D

Replace

the full stop at the end of the ninth main bullet point with a comma.

To impose specific programming requirements. The Project Offices may amend the list of
items after the ninth main bullet point to suit their projects. Also, they should modify the
interval in square bracket and include the relevant requirement in the Works Information if
appropriate.

To impose specific programming requirements.

N.A.

Options A, B, C and D

To impose specific requirement of not allowing the Contractor having discretion on the time to N.A.
take over a part of the Site if later than its access date. Amendments to clauses 31.2, 33.1 and
60.1(2) are required if this amendment is adopted.

Options A, B, C and D

To impose contract specific requirement on the time limit for the Employer to take over the
N.A.
completed works from the Contractor . The Project Offices should update the time in square
bracket to suit their projects.
To retain the Contractor s obligation to submit payment applications similar to GCC 78.
GCC 78
Since it may not be practicable for the Contractor to submit the payment applicable once
Completion is certified, the Completion of the whole of the works is not considered as an
assessment date. The Project Offices may consider to delete the requirement in square bracket
if appropriate.

Options A, B, C and D

Add

Options A, B, C and D

the following main bullet points after the ninth main bullet point:
comments and/or requirements provided by the Project Manager in the most recent programme and
[3-month] rolling sub-programme as specified in the Works Information.

32.2

Replace

the full-stop at the third bullet point by a comma.

Add

a new bullet point after the third bullet point as follows:

where there are outstanding work after Completion, at interval as decided by the Project Manager from Completion until completion of the
outstanding work or, as the case may be, when the Project Manager has decided that no further revision is required, whichever is earlier.
33.1

Replace

the whole clause 33.1 by the following new clause 33.1:

The Employer allows access to and use of each part of the Site to the Contractor which is necessary for the work included in this contract
on its access date .
35.1

Replace

two weeks by [three] weeks in the clause.

50.1

Add

a new sentence to the beginning of the clause as follows:

The Contractor submits to the Project Manager [by not later than 14 days before each assessment date a draft statement with supporting
documents showing his preliminary estimated amount due and] on or before each assessment date a statement with supporting documents
showing his estimated amount due.

P. 3 of 17

Options A, B, C and D

Core Clauses (Updated as at 17.10.2016)


In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
50.1
NEC3 ECC
Clause No.

To
retain the Contractor s obligation to submit payment applications similar to GCC 78.
GCC
78 GCC/SCC/TC/Memo
Rationale
Related
Since it may not be practicable for the Contractor to submit the payment applicable once
Completion is certified, the Completion of the whole of the works is not considered as an
assessment date. The Project Offices may consider to delete the requirement in square bracket
if appropriate.

Options
A, B, Ctoand
To be applied
theDstated main
Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

or deducted from before the Contractor . in the third bullet point.

To cater for payment deduction, if any, before arriving at the amount due.

N.A.

Options A and B

Replace

the Contractor . by or deducted from the Contractor , in the third bullet point.

Options C and D

Add

a fourth bullet point as follows:

To cater for payment deduction, if any, before arriving at the amount due, and avoid
N.A.
overpayment by specifying the Project Manager s right to deduct the Contractor s pain share
assessed during the contract period. This should be read in conjunction with clauses 53.1 to
53.4.

To impose the Project Manager 's obligation to consider the Contractor s payment application N.A.
before assessing the amount due.

Options A, B, C and D

Action

Details

Replace

and by the full-stop at the first bullet poiont.

Delete

the second bullet point.

50.2

Add

50.2

less the Project Manager 's interim assessment of the Contractor 's share, if the Project Manager s forecast of the final Price for the Work
Done to Date exceeds his forecast of the final total of the Prices.
50.4

Replace

the first sentence in the clause by the following:

In assessing the amount due, the Project Manager considers the application for payment the Contractor has submitted in accordance with
clause 50.1.
51.1

Replace

one week by two weeks in first sentence of the clause.

To allow sufficient time for vetting payment applications.

N.A.

Options A, B, C and D

51.2

Replace

the first word Each by Subject to the Employer 's rights of set-off in law or equity, each in the clause.

To reserve the Employer s rights of set-off in law or equity when certifying payments

N.A.

Options A, B, C and D

51.3

Delete

either" in the first line of the clause.

To omit the Employer s liability to pay interest if the Project Manager corrects in a later
certificate due to compensation events or other reasons.

GCC 79(4)

Options A, B, C and D

Delete

the first bullet point.

Replace

the whole clause 51.4 by the following new clause 51.4:

To follow GCC 79 that the interest to be paid by the Employer on any late payment should be
on simple interest basis. Also, the High Court Ordinance (Cap. 4) Section 49 stipulates that
judgment debts shall carry simple interest.

GCC 79

Options A, B, C and D

51.4

Interest is calculated on a simple interest basis at the interest rate ..

53.2A

60.1

Add

a new clause 53.2A after clause 53.2 as follows:

Replace

The Project Manager makes interim assessments of the Contractor 's share on each assessment date using his forecast of the final Price for
Work Done to Date and his forecast of the final total of the Prices. The Project Manager informs the Contractor of his interim assessment
of the Contractor 's share.
sub-clause (2) by the following new sub-clause (2):

To specify the Project Manager 's right to make interim assessment of the Contractor s share N.A.
and the Project Manager s obligation to inform the Contractor of his assessment. This clause
should be read in conjection with clause 50.2. The Project Offices should update the clause no.
in square bracket.

Options C and D

To impose contract specific requirement of not allowing the Contractor having discretion on
the time to take over a part of the Site if later than its access date. Amendments to clauses
31.2, 33.1 and 60.1(2) are required if this amendment is adopted.

N.A.

Options A, B, C and D

To modify weather-related compensation events similar to those being adopted under GCC.

GCC clause 50(1)(b)(i), (ii) and (iia) Options A, B, C and D

The Employer does not allow access to and use of a part of the Site on its access date .

60.1

Replace

sub-clause (13) by the following new sub-clause (13):

One or more of the following weather conditions affecting the Site:


(i) the hoisting of tropical cyclone warning signal No. 8 or above, or
(ii) Black Rainstorm Warning.
(iii) Red Rainstorm Warning, or

P. 4 of 17

Core Clauses (Updated as at 17.10.2016)


In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
60.1
NEC3 ECC
Clause No.

Replace
Action

Details

To modify weather-related compensation events similar to those being adopted under GCC.
Rationale

GCC clause 50(1)(b)(i), (ii) and (iia) Options A, B, C and D


Related GCC/SCC/TC/Memo
To be applied to the stated main
Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

N.A.

(iv) Amber Rainstorm Warning, or


(v) inclement weather and/or its consequences adversely affecting the progress of the works

60.1

Replace

an event by an event arising from the Employer or Others in the first sentence of sub-clause (19).

To better define the prevention event.

60.1

Add

a new sub-clause (20) after sub-clause (19) as follows:

To adopt an approach of introducing Change in Law as a compensation event under Clause 60 ETWBTCW No. 23/2004
rather than adopting Option X2.
SCC 60(5)

Options A, B, C and D

To address the mandatory policy of entitling the Contractor to claim extension of time due to
shortage of labour.

Options A, B, C and D

Options A, B, C and D

A Change in Law as defined in clause [A1] of the additional conditions of contract .

60.1

Add

Sub-clause (21) after sub-clause (20) as follows:

DEVB TCW No. 5/2013

A shortage of labour which would have been unreasonable for an experienced contractor to have allowed for at the tender closing date.

60.4

Add

or [$300,000], whichever is the largest at the end of the third bullet point.

To impose contract specific requirement in relation to substantial change in the quantity of the N.A.
work. The Project Offices should update the figure in square bracket to suit their projects.

Options B and D (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause or not.

60.8

Add

a new clause 60.8 as follows:

To add new compensation event for the contract requiring re-measurement of provisional
quantities. This amendment should then be made in conjunction with clause 60.8, 60.9, 63.1
and 63.14.

N.A.

Options A (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

To add new compensation event for the contract requiring re-measurement of provisional
quantities. This amendment should then be made in conjunction with clause 60.8, 60.9, 63.1
and 63.14.

N.A.

Options A (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

A difference between the final total quantity of work done and the provisional quantity for an item stated in the Activity Schedule which
delays Completion or the meeting of the Condition stated for a Key Date is a compensation event.
60.9

Add

a new clause 60.9 as follows:

The Project Manager corrects mistakes for items with provisional quantities in the Activity Schedule which are departures from the rules for
item descriptions and for division of the work into items in the preambles and method of measurement or are due to ambiguities or
inconsistencies. Each such correction is a compensation event which may lead to reduced Prices.
61.4

Replace

one week with [six weeks for events requiring to obtain confirmation of no objection from the Employer in accordance with clause [B1] of To impose specific time limit for the Project Manager to notify his decision on compensation N.A.
the additional conditions of contract , or three weeks for other events] at the first bullet point of the third paragraph in the clause.
events to the Contractor . Approval should be sought from the relevant authorities in
accordance with the Stores and Procurement Regulations (SPR) 520 and Appendix V(B) and
the consultancy agreement terms where appropriate. The Project Offices should update the
time in square bracket to suit their projects and clause no. of the additional conditions of
contracts on the Project Manager 's powers.

Options A, B, C and D

62.2

Replace

the first sentence by the following:

To impose specific conditions where the Contractor is only entitled for extension of time due to N.A.
certain compensation events. This amendment should be made in conjunction with clause 62.2
and 63.4.

Options A and B unless comments or


endorsement obtained for amendments

To impose specific conditions where the Contractor is only entitled for extension of time due N.A.
to certain compensation events. This amendment should be made in conjunction with clause
62.2 and 63.4. The Project Offices may add any of clauses 60.1(13)(iii) after reviewing their
project specific situations and such proposal or other amendments shall be approved by DEVB.

Options C and D unless comments or


endorsement obtained for amendments

Quotations for compensation events comprise, where applicable, proposed changes to the Prices, and/or any delay to the Completion Date
and/or Key Dates assessed by the Contractor. For the avoidance of doubt, quotations for compensation events under clauses 60.1(5),
60.1(13), 60.1(19) and 60.1(21) only comprise proposed changes to the Completion Date and/or Key Dates assessed by the Contractor , but
not changes to the Prices.
62.2

Replace

the first sentence by the following:

Quotations for compensation events comprise, where applicable, proposed changes to the Prices, and/or any delay to the Completion Date
and/or Key Dates assessed by the Contractor. For the avoidance of doubt, quotations for compensation events under clauses 60.1(5),
60.1(13)(iv)&(v), 60.1(19) and 60.1(21) only comprise proposed changes to the Completion Date and/or Key Dates assessed by the
Contractor , but not changes to the Prices.

P. 5 of 17

Core Clauses (Updated as at 17.10.2016)


In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

62.3

Replace

The Project Manager replies within two weeks of the submission. by The Project Manager replies within six weeks for events requiring
to obtain confirmation of no objection from the Employer in accordance with clause [B1] of the additional conditions of contract , or three
weeks for other events after receiving the submission, or a longer period to which the Contractor has agreed. in the second sentence of the
clause.

To impose specific time limit for the Project Manager to reply to the Contractor for his
N.A.
quotation for compensation events. Approval should be sought from the relevant authorities in
accordance with the Stores and Procurement Regulations (SPR) 520 and Appendix V(B) and
the consultancy agreement terms where appropriate. The Project Offices should update the
time in square bracket to suit their projects and clause no. of the additional conditions of
contracts on the Project Manager's powers.

Options A, B, C and D

62.6

Replace

within two weeks by within two weeks or a longer period to which the Contractor has agreed in the last sentence of the clause.

To impose specific time limit for the Project Manager to reply to the Contractor for his
quotation for compensation events.

Options A, B, C and D

63.1

Replace

the first word The by Subject to the provisions of clause 63.14, the.

To impose specific conditions that compensation events are primarily based on rates and lump N.A.
sums in the Activity Schedule. This amendment is made in conjunction with clause 63.1 and
63.14.

Option A and C (Optional). The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

63.1

Replace

the first word The by Subject to the provisions of clause 63.13A, the.

To impose specific conditions that compensation events are primarily based on rates and lump N.A.
sums in the Bill of Quantities. This amendment is made in conjunction with clause 63.1, 63.13
and 63.13A.

Options B and D (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

63.4

Replace

the whole clause 63.4 by the following new clause 63.4:

To impose specific conditions where the Contractor is only entitled for extension of time due to N.A.
certain compensation events. This amendment should be made in conjunction with clause 62.2
and 63.4.

Options A and B unless comments or


endorsement obtained for amendments

N.A.

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

The rights of the Employer and the Contractor to changes to, where applicable, the Prices and/or the Completion Date and/or the Key Dates
are their only rights in respect of a compensation event. For compensation events under clauses 60.1(5), 60.1(13), 60.1(19) or 60.1(21), the
Contractor is only entitled to changes to the Completion Date and/or the Key Dates but not changes to the Prices. For other compensation
events, the assessment of changes to the Prices, if any, is not affected by any concurrent compensation event under clauses 60.1(5), 60.1(13),
60.1(19) or 60.1(21).
the whole clause 63.4 by the following new clause 63.4:
To impose specific conditions where the Contractor is only entitled for extension of time due to N.A.
certain compensation events. This amendment should be made in conjunction with clause 62.2
and 63.4.
The rights of the Employer and the Contractor to changes to, where applicable, the Prices and/or the Completion Date and/or the Key Dates
are their only rights in respect of a compensation event. For compensation events under clauses 60.1(5), 60.1(13)(iv)&(v), 60.1(19) or
60.1(21), the Contractor is only entitled to changes to the Completion Date and/or the Key Dates but not changes to the Prices. For other
compensation events, the assessment of changes to the Prices, if any, is not affected by any concurrent compensation event under clause
60.1(5), 60.1(13)(iv)&(v), 60.1(19) or 60.1(21).

Options C and D unless comments or


endorsement obtained for amendments

63.4

Replace

63.11

Replace

the Contractor proposed and the Project Manager has accepted by the Contractor proposed and the Project Manager has accepted
under clause [F4] of the additional conditions of contract in the first bullet point.

To align with DEVB TCW No. 3/2014 for the Cost Savings Designs. The Project Offices
should update the clause no. in square bracket.

DEVB TCW No. 3/2014

Options C and D if Costing Savings


Designs are allowed.

63.11

Delete

other than a change to the Works Information provided by the Employer which the Contractor proposed and the Project Manager has
accepted in the first bullet point.

If the Contractor 's Cost Savings Designs are not allowed.

N.A.

Options C and D if Costing Savings


Designs are not allowed.

63.13

Delete

63.13A

Add

If the Project Manager and the Contractor agree, rates and lump sums may be used to assess a compensation event. from the last sentence To impose specific conditions that compensation events are primarily based on rates and lump N.A.
of the clause.
sums in the Bill of Quantities. This amendment is made in conjunction with clause 63.1, 63.13
and 63.13A.
a new clause 63.13A with the following:

Where the effect of a compensation event is changes to the Prices, the assessment of the compensation event will be based on the rates and
lump sums in the Bill of Quantities, instead of the Defined Cost and the resulting Fee, under the scenarios specified in sub-clauses (i) to (iii)
below:
(i) Any item of work omitted is assessed at the rate or lump sum set out in the Bill of Quantities except that in the absence of such a rate or
lump sum in the Bill of Quantities, the assessment of the item of work omitted is at a rate or price based on Defined Cost and the resulting Fee.

P. 6 of 17

Option B and D (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

To impose specific conditions that compensation events are primarily based on rates and lump N.A.
sums in the Bill of Quantities. This amendment is made in conjunction with clause 63.1, 63.13
and 63.13A.

Option B and D (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause.

Rationale

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

63.13A
Add
Core Clauses (Updated
as at 17.10.2016)
In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Related GCC/SCC/TC/Memo

(ii) Any work carried out which is the same as or similar in character to and executed under the same or similar conditions and circumstances
to any item of work priced in the Bill of Quantities is assessed at the rate or lump sum set out in the Bill of Quantities for such item of work.
(iii) Any work carried out which is not the same as or similar in character to or is not executed under the same or similar conditions or
circumstances to any item of work priced in the Bill of Quantities is assessed at a rate or lump sum based on the rates or lump sums in the Bill
of Quantities so far as may be reasonable, failing which, at a rate or lump sum based on Defined Cost and the resulting Fee.
For the avoidance of doubt, any assessment based on rates or lump sums in the Bill of Quantities is not subject to adjustment of the fee
percentage .
63.14

Replace

the whole clause 63.14 by the following new clause 63.14:


Where the effect of a compensation event is changes to the Prices, the assessment of the compensation event will be based on the rates and
lump sums in the Activity Schedule, instead of the Defined Cost and the resulting Fee, under the scenarios specified in sub-clauses (i) to (iii)
below:

To impose specific conditions that compensation events are primarily based on rates and lump N.A.
sums in the Activity Schedule. This amendment is made in conjunction with clause 63.1 and
63.14.

Option A and C (Optional) The Project


Office shall seek seek approval from a
public officer of D2 rank or above for
use of this clause.

(i) Any item of work omitted is assessed at the rate or lump sum set out in the Activity Schedule except that in the absence of such a rate or
lump sum in the Activity Schedule, the assessment of the item of work omitted is at a rate or price based on Defined Cost and the resulting
Fee.
(ii) Any work carried out which is the same as or similar in character to and executed under the same or similar conditions and circumstances
to any item of work priced in the Activity Schedule is assessed at the rate or lump sum set out in the Activity Schedule for such item of work.
(iii) Any work carried out which is not the same as or similar in character to or is not executed under the same or similar conditions or
circumstances to any item of work priced in the Activity Schedule is assessed at a rate or lump sum based on the rates or lump sums in the
Activity Schedule so far as may be reasonable, failing which, at a rate or lump sum based on Defined Cost and the resulting Fee.
For the avoidance of doubt, any assessment based on rates or lump sums in the Activity Schedule is not subject to adjustment of the fee
percentage .
63.15

Delete

the whole clause 63.15

To impose specific condition that the Shorter Schedule of Cost Components is not used in
assessing compensation events. The Project Offices should evaluate whether to delete this
clause or not to suit their projects.

N.A.

Options C and D (Optional) The Project


Office shall seek approval from a
public officer of D2 rank or above for
use of this clause or not.

70

Add

a new clause 70.3 after clause 70.2 as follows:

To promote clarity in respect of the Employer s title to Plant and Materials being full
unencumbered

N.A.

Options A, B, C and D

GCC 21(4)

Options A, B, C and D

The Contractor procures that the title passed to the Employer pursuant to this clause 70 is full unencumbered title.

80.1

81.1

Delete

strikes, in the second sub-bullet point of the third main bullet point.

To omit strikes from the Employer s risks so as to follow the scope of excepted risks under
GCC 21(4)

Replace

before the issue of the Defects Certificate ... on the Site after take over by which is due to breach of this contract or other default of the
Contractor in the fourth main bullet point.

To ensure that the Employer s risks do not cover loss, wear or damage to the works occurring N.A.
which is due to breach of this contract or other default of the Contractor

Replace

activities of the Contractor on the Site after termination by breach of this contract or other default of the Contractor in the fifth bullet
point.

Add

a new sentence to the end of the clause as follows:

To hold the Contractor liable, after the issuance of the Defect Certificate, for the risks
resulting from his breach of this contract or other default

N.A.

Options A, B, C and D

To promote clarity in indemnity from the Contractor to the Employer under this clause.
Under Clause 60.1(14), the Contractor already has the right to claim compensation due to
events which are at the Employer s risks

N.A.

Options A, B, C and D

Thereafter the risks carried by the Contractor are those resulting from his breach of this contract or other default.

83.1

Replace

the whole clause 83.1 by the following new clause 83.1:

The Contractor indemnifies the Employer against claims, proceedings, compensation and costs due to an event which is at the Contractor s
risk.

P. 7 of 17

Core Clauses (Updated as at 17.10.2016)


In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

83.2

Replace

the whole clause 83.2 by the following new clause 83.2:

To tally with the amendments made to clause 83.1

N.A.

Options A, B, C and D

ETWB TCW No. 7/2005


SCC 11
SCC 12

Options A, B, C and D

ETWB TCW No. 7/2005


SCC 11
SCC 12
To impose specific requirements for procurement of construction related insurance according ETWB TCW No. 7/2005
to ETWB TCW No. 7/2005. The Project Offices should conduct assessment in accordance
SCC 11
with the systematic risk management (SRM) process promulgated in ETWB TCW No. 6/2005 SCC 12
and other relevant guidelines to determine the types and coverage of the insurances required for
the contract and then update the information in square bracket accordingly.

Options A, B, C and D

To impose specific requirements for procurement of construction related insurance according


to ETWB TCW No. 7/2005. The Project Offices should include the relevant form in the
Works Information.

ETWB TCW No. 7/2005


SCC 11
SCC 12

Options A, B, C and D

ETWB TC(W) No. 23/2004


SCC 59

Options A, B, C and D

The liability of the Contractor to indemnify the Employer is reduced if events at the Employer s risk contributed to the claims, proceedings,
compensation and costs. The reduction is in proportion to the extent that events which were at the Employer s risk contributed, taking into
account the Contractor s responsibilities under this contract.
a new sentence after the first sentence as follows:
To impose specific requirements for procurement of construction related insurance according
to ETWB TCW No. 7/2005. The Project Offices should include the relevant form in the
Works Information.
The Contractor provides such insurance(s) for at least the amount(s), with deductibles (if any) specified in the Contract Data, and in the
form(s) (if applicable) specified in the Works Information.

84.1

Add

84.2

Replace

the Parties by the Employer , the Contractor together with his subcontractors of all tiers in the first line of the clause.

Delete

the [first, second and fourth] row (or insurance) in the Insurance Table.

Add

the following new clause 86.2 after clause 86.1:

86.2

To impose specific requirements for procurement of construction related insurance according


to ETWB TCW No. 7/2005.

If through no fault of the Contractor or for reasons not attributable to the Contractor or his past records it becomes impracticable for the
Contractor to provide the insurance(s) in form(s) specified in the Works Information, the Contractor proposes to the Project Manager for
acceptance any necessary change to the Works Information for providing insurance(s) as close as practically possible to the form(s) specified.
The Contractor submits with the proposed change a quotation for a reduction to the Prices as a result of the proposed change. If the Project
Manager accepts the proposed change, he gives an instruction to change the Works Information accordingly and the Prices are reduced as
quoted.
A1, A2 and A4 by A1 and A2 in the first line of the table.
To effect the right of the Government to terminate for convenience under ETWB TC(W) No.
23/2004.

Options A, B, C and D

90.2

Replace

90.4

Add

or such longer period as may reasonably be necessary after thirteen weeks in the first sentence of the clause.

To effect the right of the Government to terminate for convenience under ETWB TC(W) No.
23/2004.

ETWB TC(W) No. 23/2004


SCC 59

Options A, B, C and D

90.5

Replace

the whole clause 90.5 by the following new clause 90.5:

To effect the right of the Government to terminate for convenience under ETWB TC(W) No.
23/2004.

ETWB TC(W) No. 23/2004


SCC 59

Options A, B, C and D

Termination is without prejudice to any other rights and remedies of the Parties.

91.7

Replace

an event by an event arising from the Employer or Others in the first sentence.

To better define the prevention event.

N.A.

Options A, B, C and D

93.2

Replace

direct fee percentage by fee percentage in the clause.

To align with the use of fee percentage to replace direct fee percentage and
subcontracted fee percentage .

N.A.

Options A, B, C and D

93.4

Delete

and at the end of the first bullet point.

If the Contractor 's Cost Savings Designs are allowed.

DEVB TCW No. 3/2014

Options C and D if Costing Savings


Designs are allowed.

Delete

the full stop at the end of the second bullet point.

Add

a third bullet point as follows:

P. 8 of 17

Core Clauses (Updated as at 17.10.2016)


93.4
In the contract, the core clauses are the ECC core clauses and the clauses set out in the ECC as main Option clauses for the respective main Options.
NEC3 ECC
Clause No.

Action

Details

If the Contractor 's Cost Savings Designs are allowed.

DEVB TCW No. 3/2014

Options C and D if Costing Savings


Designs are allowed.

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group
and/or the Steering Committee

for the avoidance of doubt, if any agreed construction cost savings under clause [F4] of the additional conditions of contract is applicable
to an activity referred to in the two bullet points above, the lump sum price for such activity should be reduced by the amounts of the
applicable agreed construction cost savings when assessing the total of the Prices.

P. 9 of 17

Secondary Options (Updated as at 17.10.2016)


NEC3 ECC
Clause No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

X1

Replace

the word index by index figure wherever it appears in all sub-clauses of this Option.

To match with the price fluctuation mechanism


promulgated through ETWB TCW No. 21/2003 and
associated guidelines. "index figure " should be well
defined in the Contract Data Part two.

ETWB TCW No. 21/2003


DEVB memo ref. DEVB(PS)
107/3 dated 18.7.2008
SCC 10A-C

Options A, B, C and D if contract price


fluctuation is applicable.

X1.1

Replace

the whole sub-clause X1.1(a) by the following new sub-clause X1.1(a):


The Base Date Index (B) is the latest available index figure applicable to the base date.

X1.1

Replace

the whole sub-clause X1.1(b) by the following new sub-clause X1.1(b):


The Latest Index (L) is the latest available index figure applicable to the date 42 days before the date of assessment
of an amount due.

X1.1

Replace

the whole sub-clause X1.1(c) by the following new sub-clause X1.1(c):


The Price Adjustment Factor is the total of the products of each of the calculated proportions stated in the Schedule
of Proportions in the Contract Data multiplied by (L B)/B for the index figure linked to it. Differences between the
actual proportions of the works and the calculated proportions stated in the Schedule of Proportions in the Contract
Data shall not constitute a compensation event.

To match with the price fluctuation mechanism


promulgated through ETWB TCW No. 21/2003 and
associated guidelines. "index figure " should be well
defined in the Contract Data Part two.

ETWB TCW No. 21/2003


DEVB memo ref. DEVB(PS)
107/3 dated 18.7.2008
SCC 10A-C

Options A, B, C and D (for non-building


contracts) if contract fluctuation is
applicable.

X1.1

Replace

the whole sub-clause X1.1(c) by the following new sub-clause X1.1(c):


For each Schedule of Proportions in the Contract Data (i.e. Table A for the works other than Building Services
Works and Table B for Building Services Works), the Price Adjustment Factor is the total of the products of each of
the calculated proportions stated in that Schedule of Proportions multiplied by (L B)/B for the index figure linked to
it. Differences between the actual proportions of the works and the calculated proportions stated in these Schedule of
Proportions in the Contract Data shall not constitute a compensation event.

X1.4

Add

the following paragraph to the end of this sub-clause:


For the purpose of this sub-clause only, the reference to Price for Work Done to Date shall exclude any payment
for item [12] of the Shorter Schedule of Cost Components [and other items not subject to price adjustment for
inflation].

X1.4

Add

the following paragraph to the end of this sub-clause:


For the purpose of this sub-clause only, the reference to Price for Work Done to Date shall exclude any payment
for item [12] of the Shorter Schedule of Cost Components [and other items not subject to price adjustment for
inflation]. Further, the Price for Work Done to Date shall be separately calculated for each Schedule of Proportions in
the Contract Data (i.e. Table A for the works other than Building Services Works and Table B for Building Services
Works).

X1.5

Add

the following paragraph to the end of this sub-clause:


For the purpose of this sub-clause only, the reference to Price for Work Done to Date shall exclude any payment
for item [15] of the Schedule of Cost Components.

X1.5

Add

the following paragraph to the end of this sub-clause:


For the purpose of this sub-clause only, the reference to Price for Work Done to Date shall exclude any payment
for item [15] of the Schedule of Cost Components. Further, the Price for Work Done to Date shall be separately
calculated for each Schedule of Proportions in the Contract Data (i.e. Table A for the works other than Building
Services Works and Table B for Building Services Works).

P. 10 of 17

Options A, B, C and D (for building


contracts) if contract fluctuation is
applicable.

To match with the price fluctuation mechanism


promulgated through ETWB TCW No. 21/2003 and
associated guidelines. "index figure " should be well
defined in the Contract Data Part two. The Project Office
should review and update/delete the information in square
bracket if appropriate.

ETWB TCW No. 21/2003


DEVB memo ref. DEVB(PS)
107/3 dated 18.7.2008
SCC 10A-C

To match with the price fluctuation mechanism


promulgated through ETWB TCW No. 21/2003 and
associated guidelines. "index figure " should be well
defined in the Contract Data Part two.

ETWB TCW No. 21/2003


DEVB memo ref. DEVB(PS)
107/3 dated 18.7.2008
SCC 10A-C

Options A and B (for non-building


contracts) if contract fluctuation is
applicable.

Options A and B (for building contracts)


if contract fluctuation is applicable.

Options C and D (for non-building


contracts) if contract fluctuation is
applicable.

Options C and D (for building contracts)


if contract fluctuation is applicable.

Secondary Options (Updated as at 17.10.2016)


NEC3 ECC
Clause No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

X7

Add

a new clause X7.4 to the end as follows:


Notwithstanding clause X7.3, the resulting rate for each day of delay damages for the works or any section after
reduction in accordance with that sub-clause shall not be less than the minimum rate for each day of delay damages
for the works or, as the case may be, the relevant section as stated in the Contract Data.

To match with the delay damages assessment mechanism


promulgated through ETWB TCW No. 4/2003 and
associated guidelines.

ETWB TCW No. 4/2003


SCC 27

Options A, B, C and D

X15.1

Replace

the whole clause X15.1 by the following:


To suit the need of certain part(s) of the Contractor 's
design requiring fit for purpose standard and remaining
Save for the following part(s) of the works
part(s) requiring reasonable skill and care standard.
[Please list the part(s) of the Contractor 's design requiring fit for purpose standard.]
the Contractor is not liable for Defects in the works due to his design so far as he proves that he used reasonable skill
and care to ensure that his design complied with the Works Information.

N.A.

Options A, B, C and D if certain part(s)


of the Contractor 's design requiring fit
for purpose standard and remaining
part(s) requiring reasonable skill and
care standard.

X16.1

Add

but in any case not exceeding the limit of amount retained set out in the Contract Data before the full-stop in the
last sentence of the clause.

To match with the retention mechanism promulgated


through WBTC No. 10/97, GCC79 and associated
guidelines.

GCC 79

Options A, B, C and D (Optional). The


Project Office shall seek approval from a
public officer of D2 rank or above for
use of this clause or not.

X16.2

Replace

the whole clause X16.2 by the following:


To match with the retention mechanism promulgated
through WBTC No. 10/97, GCC79 and associated
(i) The amount retained is halved
guidelines.
in the assessment made at Completion of the whole of the works or
in the next assessment after the Employer has taken over the whole of the works if this is before Completion of the
whole of the works .
(ii) The remaining amount retained following reduction in accordance with sub-clause (i) above (the halved retained
amount) is further reduced in the next assessment following the defects date by the halved retained amount minus
the anticipated cost of rectification of the Defects requiring for correction as at the defects date as assessed by the
Project Manager .

GCC 79

Options A, B, C and D

(iii) The remaining amount retained following reduction in accordance with sub-clause (ii) remains unaltered until the
Defects Certificate is issued. No amount is retained in the assessments made after the Defects Certificate has been
issued.

P. 11 of 17

Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

Details

Rationale

Replace

the entire first bullet point by the following:


people who are directly employed by the Contractor and do not discharge the duties of the Contractor s
management and supervisory staff and whose normal place of working is within the Working Areas and

To facilitate the processing of payment applications.

Replace

the entire second bullet point by the following:


people who are directly employed by the Contractor and do not discharge the duties of the Contractor s
management and supervisory staff and whose normal place of working is not within the Working Areas but who are
working in the Working Areas.

Add

the following paragraph at the end of item 1:


For the purpose of this clause, the Contractors management and supervisory staff shall mean the Contractor s staff The Project Offices should amend the list to suit their
who are responsible for management, administration, planning, coordination or supervision of the Site, the works and projects.
this contract, preparation of technical, financial and contractual submissions and operation of the Contractor s site
accommodation. They shall include, but not limited to, the following Contractors staff and their assistants:

Related GCC/SCC/TC/Memo

N.A.

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee
Options C and D (Optional) provided
that no cashflow problem is anticipated if
the concerned cost is treated as included
in the Fee in accordance with the core
clause 52.1. The Project Office shall
seek approval from a public officer of
D2 rank or above for use of this clause or
not.

Construction Manager,

Site Agent,

Site Engineer,

Site Superintendent,

Site Supervisor,

Surveyor,

Quantity Surveyor,

Foreman,

Safety Officer and Safety Supervisor,

Environmental Officer and Environmental Supervisor,

Geotechnical Engineer and Geotechnical Supervisor,

Technical Manager,

Coordinator for dealing with Excavation Permit Management System and application for Excavation Permit,

Liaison Officer,

Site Clerk, and

Any other staff responsible for management, administration, planning, coordination or supervision of the Site,
the works and this contract, preparation of technical, financial and contractual submissions and operation of the
Contractor s site accommodation
For clarity, the cost of the Contractor 's management and supervisory staff are treated as included in the Fee in
accordance with the core clause 52.1.
13

Delete

item 13(f).

This amendment is needed to match with the amendments N.A.


to item 7 of the Schedule of Cost Components which adds
a sub-clause to deduct premiums for insurances taken out
by the Contractor .

13

Replace

pensions in item 13(j) by the Contractor s mandatory contribution under the Mandatory Provident Fund Schemes To match with the approach to pay the Contractor s
Ordinance (Cap. 485) as set out in item 15 below".
mandatory contribution under the Mandatory Provident
Fund Schemes Ordinance (Cap. 485).

13

Add

a new item 13(p) after item 13(o) as follows:

N.A.

To match with the approach to reimburse the Contractor DEVD memo ref. in DEVB(Trg)
for the payment for site uniforms.
133/3(7) dated 11 May 2011
The Project Offices should update the clause no. in square
bracket.

uniform in accordance with clause [XX] of the additional conditions of contract

P. 12 of 17

Options C and D

Options C and D

Options C and D

Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

Details

Rationale

15

Add

a new item 15 after item 14 as follows:

To match with the approach to pay the Contractors


N.A.
mandatory contribution under the Mandatory Provident
Fund (MPF) Schemes Ordinance (Cap. 485).
The Project Offices should update the clause no. in square
bracket.
Also, the Project Offices should not include the
Contractor 's mandatory contribution to MPF in the
tendered total of the Prices. Otherwise, the last sentence
needs to be updated.

Payment made for the Contractor s mandatory contribution under the Mandatory Provident Fund Schemes
Ordinance (Cap. 485), including contribution by his subcontractors of all tiers to the employers mandatory provident
fund for the Site Personnel under the contract, based on the designated banks transaction records as specified in
Section [XX] of the Particular Specification identified in the Works Information. For the purposes of this item, bank
shall be an authorized institution within the meaning of Section 2 of the Banking Ordinance (Cap. 155). The actual
amount of the payment made by the Contractor , which is not subject to price adjustment for inflation, is added to the
total of the Prices.
a new item 16 after item 15 as follows:
To match with the approach to reimburse the Contractor
for the payment for LRO.
Payment made for the provision of Labour Relations Officer (LRO) including salary, overtime allowance, end-ofcontract gratuity, medical and dental care expenses for LRO and the advertisement costs incurred in the recruitment of
LRO. For the avoidance of doubt, any reimbursement of the Contractor s contributions to the mandatory provident
fund for LRO shall be made in accordance with item 15 above.

16

Add

Replace

(incuding the cost of accommodation but excluding Equipment cost covered by the percentage for Working Areas
overheads) by (incuding the cost of the Contractor 's accommodation)

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee
Options C and D

N.A.

Options C and if LRO is required to be


provided by the Contractor .

To update this cost component if the percentage for


Working Areas overheads is not adopted.

N.A.

Options C and D if the percentage for


Working Areas overheads is not adopted.

Replace

(incuding the cost of accommodation but excluding Equipment cost covered by the percentage for Working Areas
To update this cost component if the percentage for
overheads) by (incuding the cost of the Contractor 's accommodation but excluding Equipment cost covered by the Working Areas overheads is adopted.
percentage for Working Areas overheads)

N.A.

Options C and D if the percentage for


Working Areas overheads is adopted
after seeking comments/endorsement
from the Inter-departmental Working
Group and/or the Steering Committee.

23

Delete

the whole item 23.

To delete this cost component since no Equipment to be


N.A.
purchased for work is listed in the Contract Data normally.

Options C and D unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

24

Delete

the whole item 24.

To delete this cost component since no special Equipment N.A.


is listed in the Contract Data normally.

43

Delete

the full-stop at the end of item 43(i).

43

Add

new items 43(j) and (k) after item 43(i) as follows:

To match with the approach to reimburse the Contractor N.A.


for the payments for accommodation for the Project
Manager 's and Supervisor 's offices and contract transport
for the Project Manager and the Supervisor .

Options C and D unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.
Options C and D if accommodation for
the Project Manager 's and Supervisor 's
offices and contract transport for the
Project Manager and the Supervisor are
required.

(j) Accommodation for the Project Manager 's and Supervisor 's offices

(k) Contract transport for the Project Manager and the Supervisor .

44

Replace

the first paragraph by Overhead costs incurred within the Working Areas, which include provision and use of
equipment, supplies and services, but exclude accommodation, for.

P. 13 of 17

To delete this cost component if the percentage for


Working Areas overheads is not adopted.

N.A.

Options C and D if the percentage for


Working Areas overheads is not adopted.

Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

Details

Rationale

5, 51 and 52

Delete

the whole items 5, 51 and 52.

To delete this cost component since manufacture and


N.A.
fabrication of Plant and Materials which are wholly or
partly designed speciafically for the works and
manufactured or fabricated outside the Working Areas is
normally not required. Also, the work is always delivered
through subcontracting.

Options C and D unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

6, 61, 62 and 63

Delete

the whole items 6, 61, 62 and 63.

To delete this cost component since design of the works


N.A.
and Equipment outside the Working Areas is normally not
required. Also, the service is always delivered through
subcontracting.

Options C and D unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

Replace

and at the end of the first bullet point by a comma.

Options C and D

Replace

the full-stop at the end of the second bullet point by , and.

Add

a third bullet point as follows :

Premiums for insurances are generally covered under the N.A.


Fee except for the listed insurances which are reimbursed
via Defined Cost . The purpose of this amendment is to
assist cashflow of the Contractor in procuring the required
insurances subject to their substantiations and supporting
documents. The Project Offices should conduct
assessment in accordance with the systematic risk
management (SRM) process promulgated in ETWB TCW
No. 6/2005 and other relevant guidelines to determine the
types and coverage of the insurances required for the
contract and then add new items or delete item(s) from the
list accordingly.

To pay for contractual obligations regarding Subcontractor ETWB TCW 74/2002


Management Plan.
SCC44A

Options C and D

premiums for insurances taken out by the Contractor except for the premiums for insurances as stated in item 7A
below.
7A

Add

a new item 7A entitled Insurance premium as follows:

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

The cost of premiums for the following insurances:


[ insurances against loss of or damage to the works , Plant and Materials] [Optional item]
[ insurances against loss of or damage to Equipment] [Optional item]
For example, for the contract requiring third party
[ insurances against liability for loss of or damage to property (except the works , Plant and Materials and
insurance only, the three items in square brackets may not
Equipment) and liability for bodily injury to or death of a person (not an employee of the Contractor ) caused by
be required.
activity in connection with this contract] [Optional item]
[ professional indemnity insurances for (Please insert the appropriate description of the parts of the works requiring
PII. )] [Optional item]
8

Add

a new item 8 entitled Subcontractor Management Plan as follows:

The following components of the cost of Subcontractor Management Plan.

Cost of work in connection with meeting all contractual obligations regarding the Subcontractor Management Plan.

P. 14 of 17

Shorter Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

Replace

the entire first bullet point by the following:


people who are directly employed by the Contractor and do not discharge the duties of the Contractors
management and supervisory staff and whose normal place of working is within the Working Areas,

To facilitate the processing of payment applications.

N.A.

Replace

the entire second bullet point by the following:


people who are directly employed by the Contractor and do not discharge the duties of the Contractors
management and supervisory staff and whose normal place of working is not within the Working Areas but who are
working in the Working Areas and

Options A and B provided that no


cashflow problem is anticipated if the
concerned cost is treated as included in
the Fee in accordance with the core
clause 52.1 for compensation events.
The Project Office shall seek approval
from a public officer of D2 rank or above
for use of this clause or not.

Replace

the entire third bullet point by the following:


people who are not directly employed by the Contractor and do not discharge the duties of the Contractors
management and supervisory staff but are paid for him according to the time worked while they are within the
Working Areas.

Add

the following paragraph at the end of item 1:


For the purpose of this clause, the Contractors management and supervisory staff shall mean the Contractors staff The Project Offices should amend the list to suit their
who are responsible for management, administration, planning, coordination or supervision of the Site, the works and projects.
this contract, preparation of technical, financial and contractual submissions and operation of the Contractor s site
accommodation. They shall include, but not limited to, the following Contractor s staff and their assistants:

Construction Manager,

Site Agent,

Site Engineer,

Site Superintendent,

Site Supervisor,

Surveyor,

Quantity Surveyor,

Foreman,

Safety Officer and Safety Supervisor,

Environmental Officer and Environmental Supervisor,

Geotechnical Engineer and Geotechnical Supervisor,

Technical Manager,

Coordinator for dealing with Excavation Permit Management System and application for Excavation Permit,

Liaison Officer,

Site Clerk, and

Any other staff responsible for management, administration, planning, coordination or supervision of the Site,
the works and this contract, preparation of technical, financial and contractual submissions and operation of the
Contractor s site accommodation
For clarity, the cost of the Contractor 's management and supervisory staff are treated as included in the Fee in
accordance with the core clause 52.1.
11

Replace

pension provision by the Contractor s mandatory contribution under the Mandatory Provident Fund Schemes
Ordinance (Cap. 485) as set out in item 12 below in item 11.

To match with the approach to pay the Contractor s


mandatory contribution under the Mandatory Provident
Fund Schemes Ordinance (Cap. 485).

N.A.

Options A and B

12

Add

a new item 12 after item 11 as follows:

To match with the approach to pay the Contractors


mandatory contribution under the Mandatory Provident
Fund Schemes Ordinance (Cap. 485).

N.A.

Options A and B

P. 15 of 17

Shorter Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

12

Add

Details

Rationale

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

Payment made for the Contractor s mandatory contribution under the Mandatory Provident Fund Schemes
The Project Offices should update the clause no. in square
Ordinance (Cap. 485), including contribution by his subcontractors of all tiers to the employers mandatory provident bracket.
fund for the Site Personnel under the contract, based on the designated banks transaction records as specified in
Section [XX] of the Particular Specification identified in the Works Information. For the purposes of this item, bank
shall be an authorized institution within the meaning of Section 2 of the Banking Ordinance (Cap. 155).
2

Replace

(incuding the cost of accommodation but excluding Equipment cost covered by the percentage for people overheads) To update this cost component if the percentage for people N.A.
by (incuding the cost of accommodation)
overheads is not adopted.

Options A and B if the percentage for


people overheads is not adopted.

21

Delete

the whole item 21.

To delete this cost component since no published list of


N.A.
Equipment is stated in the Contract Data for compensation
events normally.

Options A and B unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

22

Delete

the whole item 22.

To delete this cost component since no list of Equipment is N.A.


provided in the Contract Data for compensation events
normally.

Options A and B unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

23

Delete

the whole item 23.

To delete this item if both items 21 and 22 are deleted.

N.A.

Options A and B unless


comments/endorsement has been sought
for the use of this item from the Interdepartmental Working Group and/or the
Steering Committee.

24 and 25

Replace

Unless the item is in the published list and the rate includes the cost component by Unless included in the
competitively tendered or open market rates under item 27

To take into account ICAC's comments on some pilot


projects and items 21 and 22 normally deleted.

N.A.

Options A and B

26

Replace

Unless included in the rate in the published list by Unless included in the competitively tendered or open market
rates under item 27

To take into account ICAC's comments on some pilot


projects and items 21 and 22 normally deleted.

N.A.

Options A and B

41

Delete

the whole item 41.

For simplicity, the percentage for people overheads is not


used and the concerned cost is treated as included in the
Fee in accordance with the core clause 52.1 for
compensation events.

N.A.

Options A and B unless


comments/endorsement has been sought
for the use of the percentage for people
overheads from the Inter-departmental
Working Group and/or the Steering
Committee.

5 and 51

Delete

the whole items 5 and 51.

To delete these items since manufacture and fabrication of N.A.


Plant and Materials which are wholly or partly designed
speciafically for the works and manufactured or fabricated
outside the Working Areas is normally not anticipated for
compensation events.

Options A and B unless


comments/endorsement has been sought
for the use of these items from the Interdepartmental Working Group and/or the
Steering Committee.

6, 61, 62 and 63

Delete

the whole items 6, 61, 62 and 63.

To delete these items since since design of the works and


Equipment outside the Working Areas is normally not
anticipated for compensation events.

Options A and B unless


comments/endorsement has been sought
for the use of these items from the Interdepartmental Working Group and/or the
Steering Committee.

P. 16 of 17

N.A.

Shorter Schedule of Cost Components (Updated as at 17.10.2016)


Item No.

Action

Details

Rationale

Replace

and at the end of the first bullet point by a comma.

Options A and B

Replace

the full-stop at the end of the second bullet point by , and.

Add

a third bullet point as follows :

Premiums for insurances are generally covered under the N.A.


Fee except for the listed insurances which are reimbursed
via Defined Cost. The purpose of this amendment is to
assist cashflow of the Contractor in procuring the required
insurances subject to their substantitations and supporting
documents. The Project Offices should conduct
assessment in accordance with the systematic risk
management (SRM) process promulgated in ETWB TCW
No. 6/2005 and other relevant guidelines to determine the
types of the insurances suitable for the potential
compensation events and then add new items or delete
item(s) from the list accordingly.

To pay for contractual obligations regarding Subcontractor ETWB TCW 74/2002


Management Plan.
SCC44A

Options A and B

premiums for insurances taken out by the Contractor except for the premiums for insurances as stated in item 7A
below.
7A

Add

a new item 7A entitled Insurance premium as follows:

Related GCC/SCC/TC/Memo

To be applied to the stated main


Option(s), unless otherwise specified
below or vetted by LAD(W) and
commented/endorsed by the Interdepartmental Working Group and/or
the Steering Committee

The cost of premiums for the following insurances:


[ insurances against loss of or damage to the works , Plant and Materials] [Optional item]
[ insurances against loss of or damage to Equipment] [Optional item]
For example, for the contract requiring third party
[ insurances against liability for loss of or damage to property (except the works , Plant and Materials and
insurance only, the three items in square brackets may not
Equipment) and liability for bodily injury to or death of a person (not an employee of the Contractor ) caused by
be required.
activity in connection with this contract] [Optional item]
[ professional indemnity insurances for (Please insert the appropriate description of the parts of the works requiring
PII. )] [Optional item]
8

Add

a new item 8 entitled Subcontractor Management Plan as follows:

The following components of the cost of Subcontractor Management Plan.

Cost of work in connection with meeting all contractual obligations regarding the Subcontractor Management Plan.

P. 17 of 17