CONDITIONS OF CONTRACT

FOR WORKS OF CIVIL ENG. CONSTRUCTION

FIDIC RED BOOK 1987/92

PART I - GENERAL CONDITIONS
GENERAL PROVISIONS
1.1 DEFINITION AND INTERPRETATION
Employer means the person named as such in part II of these conditions and the legal
successor in the title to such person.
Contractor means the person whose tender has been accepted by the employer & the legal
successor in title to such person.
Sub Contractor means any persons named in the contract as a sub contractor for a part of
the works or any person to whom a part of work has been sub contracted with the consent of
engineer and the legal successor in title to such person.
Engineer means the person appointed by the employer to act as engineer for the purpose of
the and named as such in part II of these conditions.
Contract means these condition (part I & Part II) the specification, the drawing, the bill of
quantities, the tender, the letter of acceptance, the contract agreement (if completed) and such
further documents, as may be expressly incorporated in the letter of acceptance or contract
agreement.
bill of quantities means the priced and completed bill of quantities forming part of the tender.
tender means the contractors priced offer to the employer for the execution and
completion of the works and the remedying of any defect therein.
Commencement Date means the which the contractor received the notice to
commence issued by the engineer as per clause 41.

Plant means machinery apparatus and the like intended to form or forming part of the permanent
works.
Contractor equipment means all appliances and things of whatsoever nature required for the
execution and completion of the works and the remedying of any defect therein.
Cost means all expenditure properly incurred or to be incurred, whether on or off the site, including
overhead and other charges properly allocable thereto but does not include any allowance for profit.
foreign currency means a currency of the country other than that in which the work is to be located.
1.2 HEADINGS AND MARGINAL NOTES
The heading and marginal notes used should be assumed as coherent part of the actual clause.
1.3 Words importing person or parties shall include team and corporation and any organization having legal
capacity.
1.4 Word importing the singular only also includes the plural and vice versa where the context requires.
1.5 NOTICES AND CONSENTS ETC
Notice, consent, approval, certificate or determination shall be in writing and the words notify, certify
or determine shall be construed accordingly. Any such consent, approval, certificate or determination
shall not unreasonably be withheld or delayed.


2.1 ENGINEER AND ENGINEERS REPRESENTATIVE
a) The engineer shall carryout duties specified in the contract.
b) The engineer may exercise the authorities specified to him, which imply from the contract. But
during the appointment of the engineer if employer has stated a need for specific approval from
him (employer) to execute the powers then the engineer should acquire such permissions. The
contractor shall take it for granted that such permissions have been taken by engineer.
2.2 The engineer can delegate any of his authorities vested in him to the engineers representative and
also revocate such authorities from time to time.
2.5 INSTRUCTIONS IN WRITING
Instructions given by the engineer shall be in writing, provided that if for any reason the Engineer
considers it necessary to give any such instruction orally. Provided further that if the contractor
confirms within 7 days such instructions in writing and if such confirmation is not contradicted by the
engineer in writing, within 7 days.
2.6 ENGINEER TO ACT IMPARTIALLY
Wherever, under the contract, the Engineer is required to exercise his discretion by:
a) Giving his decision, opinion or consent
b) Expressing his satisfaction or approval
c) Determining value or
d) Other wise taking action which may affect the rights and obligations of the Employer
or Contractor.


He shall exercise such discretion impartially within the terms of the contract and having
regard to all the circumstances. Any such decisions, opinion, consent; expression of
satisfaction, or approval, determination of value or action may be opened up, reviewed or
revised as provided in clause 67.
3.1 ASSIGNMENT AND SUBCONTRACTING
The contractor shall not without the prior consent of the employer, assign the contract.
4.1 SUB CONTRACTING
The Contractor cannot subcontract the whole of the Works. Contractor can subcontract a
part of the Works only with the prior consent of the Engineer. Such consent does not
relieve the contractor from any of his obligations and liabilities from that part of work. The
Contractor is completely responsible for the acts, defaults and neglects of any
subcontractor.

Provided that the contractor shall not be required to obtain such consent for:
a) The provision of labour
b) The purchase of materials
c) The sub contracting of any part of the Works for which the Subcontractor is named in
the Contract.

6.1 DRAWINGS AND DOCUMENTS
The drawings remain in the custody of the engineer and two copies are provided to the contractor free
of charge.
The contractor shall supply to the Engineer four copies of all Drawings, Specification and other
documents submitted by the Contractor and approved by the Engineer.
6.2 DRAWING AT SITE
One copy of the drawings shall always be kept on the site by the contractor.
6.3 DISRUPTION OF PROCESS
In case any delay or disruption of planning or execution works is anticipated or likely to occur, due to
lack of further issuing of drawings by the Engineer, the Contractor shall give Notice to the Engineer with
a copy of it to the Employer. The Contractors notice shall include details of the drawing or instruction
required and of why and by, when it is required and of any delay or disruption likely to be suffered if it is
late.
6.4 COST OF DELAY OF DRAWINGS
If the Engineer fails to issue the drawings or instruction then the Engineer shall after due consultation
with the employer and the contractor determine:
- any extension of time to which the contractor is entitled
- the amount of such costs which shall be added to the contractor price.

6.5 FAILURE BY CONTRACTOR TO SUBMIT DRAWINGS
If the above delay is due to failure by contractor to submit drawings engineer shall take failure by
contractor into account while acting upon clause 6.4.
7.1 SUPPLEMENTARY INSTRUCTIONS
This clause allows the engineer to issue the contractors supplementary drawings or instructions, and
the contractor shall have to abide by it and work accordingly.
7.2 PERMANENT WORKS DESIGNED BY CONTRACTOR
Where the contract expresses that part of the permanent works shall be designed by the contractor he
shall submit to the engineer, for approval: such drawings and calculations along with operation and
Maintenance manuals.
7.3 RESPONSIBILITY UNAFFECTED BY APPROVAL
Approval by the engineer, according to the permanent works designed by the contractor shall not relieve
the contractor of any of his responsibilities under the contract.
8.1 CONTRACTORS GENERAL RESPONSIBILITY
The Contractor shall design (to the extent required) execute and complete the works and remedy any
defects by providing all superintendence, labour materials, Plant Contractors Equipment and other
things, as specified or as inferred from the contract.

8.2 SITE OPERATIONS AND METHODS
The Contractor shall take full responsibility for the adequacy, stability and safety of all site operations
and methods of contraction provided that the contractor shall not be responsible for Permanent or
Temporary works not designed by him.
9.1 CONTRACT AGREEMENT
The contractor shall enter into and execute the Contract Agreement to be Prepared and completed at
the cost of the Employer.
10.1 PERFORMANCE SECURITY
If contract requires performance security the contractor shall obtain it and provide to Employer within 28
days after the receipt of the Letter of Acceptance.
10.2 PERIOD OF VALIDITY
Duration of validity of performance security is till the employer issues the defect liability certificate in
accordance with sub clause 62.1 to the contractor. Employer should return the performance security to
the contractor within 14 days of issue of the above mentioned defect liability certificate.
10.3 CLAIMS UNDER PERFORMANCE SECURITY
If the employer under the performance security makes any claims, detailed notification should be given
to the contractor stating the nature of the default.
11.1 INSPECTION OF SITE
It is assumed that the contractor has already examined and inspected the site is satisfied with it before
submitting the tender, with regard to:
a) The form and nature of the site including sub surface condition.
b) The hydrological and climatic condition.
c) The extent and nature of the work and the material; necessary for the execution.
d) The means of access to the site and the accommodation he may require and is deemed to
have obtained all the information he may require as to risks and contingencies.
12.1 SUFFICIENCY OF TENDER
It is assumed that the contractor has done all the research work about the correctness and sufficiency
of tender related to execution and completion of the work and the remedying of any defect which may
occur.
12.2 NOT FORESEEABLE PHYSICAL CONDITION
Other than climatic conditions, if contractor finds an adverse physical obstruction or
condition which is not foreseeable by an experienced contractor should inform the engineer.
Engineer after consultation with both may grant.
a) The time extension needed in the completion of the work.
b) And the amount of cost increase needed by the contractor for the above reason.
Such time and cost increase may include any proper and reasonable measures acceptable
to the Engineer which the contractor may take in the absence of specific instructions from
the engineer.

13.1 WORK TO BE IN ACCORDANCE WITH CONTRACT
Unless it is legally or physically impossible the contract shall execute and complete the
works and remedy any defects in accordance with contract to the Engineers satisfaction.
14.1 PROGRAMME TO BE SUBMITTED
Within a specified time (in days), after the date of the Letter Of Acceptance, the contractor shall submit a
programme to the engineer for his consent in such a way and detail as the engineer shall reasonable
prescribe for the execution of the works. It is also required that whenever the engineer requires, the
contractor shall provide in writing, for his information, a general description of the arrangement and
methods which the contractor proposes to adopt for the execution of the works.
14.2 REVISED PROGRAMME
If it appears to the engineer, at any time, that the actual progress of the works does not conform to the
progamme to which consent, is given; the contractor at the request of the engineer, is required to
produce a revised programme necessary to ensure completion of the works within the Time for
Completion.
14.3 CASHFLOW ESTIMATE
The contractor shall within time stated in Part II provide a detailed cash flow estimate, in quarterly
period, for all payments to which the contractor will be entitled under the contract (to the engineer) and
the contractor shall subsequently supply revised cash flow estimates at quarterly intervals, if required to
do so by the engineer.

14.4.CONTRACTOR NOT RELIEVED OF DUTIES
Such cash flow statements do not relieve the contractor of any of this duties or responsibilities under the
contract.
15.1 CONTRACTORS SUPERITENDENCE
The contractor is needed to provide all necessary superintendence during the execution of the work and
thereafter, as long as the engineer consider it necessary for proper fulfillment of the contractors
obligations under the contract.
If the approval of Contractors representative is withdrawn by the Engineer then Contractor shall replace
him by any other representative approved by the Engineer.
16.1 CONTRACTORS EMPLOYEES
The contractor shall provide on the site only skilled and experienced technical
assistants and foremen to provide proper superintendence to skilled, semiskilled
and unskilled labour as is necessary.
16.2 ENGINEER AT LIBERTY TO OBJECT
The Clients engineer having object on the contractors worker when they misconduct themselves, or
are incompetent or negligent in the proper performance of his duties. Such workers should be
replaced as soon as possible.


17.1 SETTING OUT
The contractor has to look after about the accurate setting out of the works and the provision of all
necessary instruments, appliances and labour in connection with the foregoing responsibilities.
The contractor shall rectify any error if caused regarding setting out unless it was caused due to
incorrect data provided by Engineer in writing.
18.1 BORE HOLES AND EXPLORATORY EXCAVTION
The Engineer has rights to ask the Contractor to do Boreholes or to carry out exploratory execution of
works if the item or provisional sum for the work is included in the bill of Quantities.
19.1 SAFETY, SECURITY, AND PROTECTION OF THE ENVIRONMENT
- To safeguard the working person from the danger/injury during execution.
- To provide and maintain lights, guards, fencing, warning signs and watchman at his own cost.
- To protect the environment and to avoid the public damage, or nuisance and pollution arising out
of his methods of operations.
19.2 EMPLOYERS RESPONSIBILITIES
The employer has to safeguard the working ;person and to avoid danger to the workmen in the site, if he
employs his own labour or other contractors to carry out some work.
20.1 CARE OF WORKS
The contractor has to take care of all the materials and plants at his own risk starting from the
commencement of the project to the date of issue of Taking over Certificate by the Employer.
The contractor has to be responsible for the plants and materials until the outstanding works are
completed during Defects Liability Period.
20.2 RESPONSIBILITY TO RECTIFY
The Contractor has responsibility to rectify the cause, other than the causes mentioned in sub-clause
20.4 at his own cost to the satisfaction of the Engineer.
20.3 DAMAGE DUE TO EMPLOYERS RISK
The contractor shall rectify the loss or damage occurred due to the causes mentioned in sub-clause
20.4 or in combination with the other risks. The Engineer will pay an addition to the contract price to the
contractor with a copy to the Employer.

20.4 THE EMPLOYERS RISK
- War, Hostilities, Invasion, Act of Foreign enemies.
- Rebellion, Revolution, Insurrection, Military or usurped power or civil.
- Ionizing radiation, Contamination by radio activity.
- Pressure waves from aircraft travelling at sonic or super sonic speed.
- Riot, disorder unless it is restricted to Employees of the Contractor or of his sub
Contractors
- The loss or damages caused to contractor due to take over of part of works by
employer.
- Loss or damage, caused due to the design of works provided by employer
- The causes due to the forces of nature which could not have been foreseen by an
experienced contractor.


21.1 INSURANCE OF WORKS AND EQUIPMENT
The Contractor shall insure the following
The full replacement cost for the plant and materials to be incorporated in the works
plus 15 percent of the full replacement cost in addition to be insured for the additional
costs like rectification of loss or damage, Professional fees, Demolishing cost and
removing the debris from the work.
The Contractors Equipment and other things brought to the site for a sum sufficient for
its replacement.
21.2 SCOPE OF COVER
For the cases mentioned in sub-clause 21.1 the insurance will be in the joint names of the contractor
and the employer, and shall cover
(a) the employer and the contractor against all loss or damage other than force Majeure causes
stated in 21.4 from start of work till take over by Employer.
(b) the contractor during Defects Liability Period for loss or damage caused prior to
beginning of Defects Liability Period and for any causes arising out of clause 49 & 50
related to Defects Liability.
21.3 Any amount not insured or recovered by both the parties according to provisions in clause
20.

21.4 EXCLUSIONS
There shall be no obligation of insurance under clause 21.1 to cover force Mejure issues such as
War, Hostilities, Invasion, Act of Foreign enemies.
Rebellion, Revolution, Insurrection, Military or usurped power or civil war.
ionizing radiation, Contamination by radioactivity
Pressure waves from aircraft or other aerial devices
22.1 DAMAGE TO PERSONS AND PROPERTY
The Contractor indemnifies and holds harmless, the Employer on following issues.
a) Death of or Injury to any person or
b) Loss of or damage to any property other than Works which may arise out of execution and
completion of the works, subject exceptions defined in sub-clause 22.2
22.2 EXCEPTIONS
The exceptions referred above in 22.1 are
a) The permanent use or occupation of land by the works.
b) The right of employer to execute the works over under or through the land.
c) Damage to the property during the execution of the work if the damage is unavoidable in the
process of execution and remedying the defects as per the Contract.
d) Damage to property and persons who are either injured or dead because of any act or neglect of
the Employer, his agents, other Contractors who are not directly employed by the contractor.
22.3 The Employer shall indemnify the Contractor against all claims arising out of exceptions provided in
23.1 THIRD PARTY INSURANCE
The Contractor shall insure in the joint names of the Employer and himself, without limiting his or
Employer obligations and responsibilities, against injury or death to any person, loss or damages to the
property arising out of the performance of contract. This insurance is not to cover the exceptions given
in sub clause 22.2
23.2 MINIMUM AMOUNT OF INSURANCE
The insurance made shall be for at least the amount specified in the appendix of the Tender.
23.3 CROSS LIABILITIES
The insurance policy shall include a cross liability clause i.e. separate insurance coverages are
provided for the Contractor and Employer.
26.1 COMPLIANCE WITH STATUTES
The Contractor should give all notices and pay all fees within the provisions stated in any of the National
or State Statute, Ordinance, or other law or any regulation, and Contractor should confirm to the rules
and regulations of all public bodies and companies whose property or rights which will or which may get
affected in any way by the works.
Also, the Contractor shall keep the Employer indemnified against all penalties and liabilities of every
kind if the Contractor breaches any of the above said provisions.

27.1 FOSSILS
All fossils, coins, articles of value or antiquity and structure and other remains or things of geological or
archaeological interest that are discovered on the site shall be considered as the property of the
Employer. The Contractor must take necessary precautions to prevent his workmen or any other
persons from removing/damaging any such article. By doing so, if the Contractor suffers delay and /or
incurs costs, then the Engineer shall, after due consultation with the Employer and the Contractor,
determine. If any extension of time which the Contractor is entitled under Clause 44 and the amount
of such costs, which shall be added to the Contract Price and should notify the Contractor accordingly,
with a copy to the Employer.
28.1 PATENT RIGHTS
The Contractor shall indemnify the Employer from all claims that may arise due to infringement of any
patent rights or design trademark, in respect of any Contractors Equipment, materials or Plan used for
in connection with the Work.
28.2 ROYALTIES
The Contractor shall pay for all costs, royalties, rent and other payments or compensation, if any, for
procuring stone, sand gravel or other materials required for the given Works.
29.1 INTERFERENCE WITH TRAFFIC AND ADJOINING PROPERTIES
All operations and activities necessary for the successful completion of the Works and remedying any
defects shall be carried out as not to interfere unnecessarily with
The convenience of the public
The access to use and occupation of private or public roads and footpaths of the properties.
The Contractor, at such situations, indemnify the Employer in respect of all claims, so far as it is found
that the Contractor was responsible for it.
30.1 AVOIDANCE OF DAMAGE TO ROADS
The Contractor should use every reasonable means to prevent any of the roads/bridges that link the
route to the Site, from being damaged by any traffic of the Contractor or his Sub-contractors.
30.2 TRANSPORT OF CONTRACTORS EQUIPMENT OR TEMPORARY WORKS.
Contractor shall be responsible for and pay for the cost of strengthening any bridges to facilitate the
movement of Contractors Equipment or Temporary Works and the Contractor shall keep the Employer
indemnified against claims that may arise due to damage to any such road or bridge.
30.3 TRANSPORT OF MATERIALS AND PLANT
In spite of following clause 20.1, if any damage occurs to any bridge or roads, the Contractor shall notify
the Engineer, with a copy forwarded to the Employer, about the occurrence of such damage. Where, if
stated under any law or regulation, the haulers of such materials or Plant is required to indemnify the
road authority, and the Employer will not be liable for any costs or charges.
In other cases, the Employer shall negotiate the settlement and pay any such claims, provided, if
Engineer, found, the Contractor failed to comply with the sub clause 30.1 then the amount should be
recovered from the Contractor by the Employer.

30.4 WATERBORNE TRAFFIC
If at all the nature of the Works is such that it required waterborne transport then the earlier provisions
stated within this clause shall be interpreted as though road included dock, sea wall or other structure
related to a waterway and vehicle includes craft, ad shall have effect accordingly.
31.1 OPPORTUNITIES FOR OTHER CONTRACTORS
The Contractor in conformity with the requirement of the Engineer, afford all reasonable opportunities
for carrying out their work to: any other Contractor appointed by Employer to carry such work not
included in the contract.
31.2 FACILITIES FOR OTHER CONTRACTOR
Facilities for other Contractors on request from engineer, the contractor shall permit the use of road
maintained by him along with Contractors equipment or temporary works and any other service. The
Engineer shall determine any addition to contract price due to above provision.
32.1 CONTRACTOR TO KEEP THE SITE CLEAR
During the execution of the works the contractor shall keep the site reasonally free from from
unnecessary obstruction and remove surplus equipment, material, or temporary works no longer
required.
33.1 CLEARANCE OF SITE ON COMPLETION
Upon the issue of Taking Over Certificate, the Contractor shall clear away all Contractors Equipment,
Surplus material, rubbish and Temporary Works. Unless such materials, like Contractors Equipment
and Temporary Works, would be required by the Contractor to fulfill his obligations during Defects
Notification period should be left on the site.

LABOUR
34.1 ENGAGEMENT OF STAFF AND LABOUR
It may become necessary to add a number of subs-clauses, to take account of the circumstances and locality
of the works, which covers matters such as: Permits and registration of expatriate employees; repatriation to
place of recruitment; provision of temporary housing for employees; requirements in respect of
accommodation for staff of employer and engineer; standards of accommodation to be provided; provision of
access roads, hospital, school, power, water drainage, fire services, refuse collection, communal buildings,
shops, telephones, conditins of working, rates of pay, compliance with labour legislation, maintenance of
records of safety and health under part II of particular conditions of cotnract.
The contractor has to make his own arrangements for engagement of all staff and labour. The labour can be
local or other. The contractor has to take care for their payment, housing, feeding and transport.
35.1 RETURNS OF LABOUR AND CONTRACTOR EQUIPMENT
If the engineer requires, the contractor shall deliver a return showing in details the staff and number of labour
of each class employed time to time by the contractor on the site. The contractor shall also provide all such
information of contractors equipments if required by the engineer.
MATERIALS, PLANT AND WORKMANSHIP
36.1 QUALITY OF MATERIALS, PLANT AND WORKMANSHIP
All material, plant and workmanship shall be as described in the contract and according to the engineers
instructions. The tests may be carried out at the place of manufacture, fabrication or preparation or on the site
as required by the engineer.
The contractor shall supply samples of materials, before incorporation of works for testing as may be required
by engineer.
36.2 COST OF SAMPLES
All samples shall be supplied by the contractor at his own cost if provided in the contract.
36.3 COSTS OF TESTS
- The cost of making any test shall be borne by the contractor if such test is:
- Clearly mentioned or provided in the contract.
36.4 COST OF TESTS NOT PROVIDED FOR
If any tests required by the engineer which is :
Not so intended or provided for in the contract is required by engineer to be carried out at any place
other than the site or place of manufacture, fabrication or preparation.
Shows the materials, plant, or workmanship not in accordance with the provisions of the contract
then the cost of such tests shall be borne by the contractor.
36.5 ENGINEERS DETERMINATION WHERE TESTS NOT PROVIDED FOR
This sub-clause applies where pursuant the sub-clause 36.4 the engineer shall after due consultation
with the employer and the contractor, determine;
Any extension of time to which the contractor is entitled and the amount of such costs, which shall be
added to the contract price.
37.1 INSPECTION OF OPERATIONS
The engineer and any authorized person by him, shall at all times have access to the site and to all
workshops and places where materials or plant are being manufactured, fabricated or prepared for
the works and the contractor shall afford facility for and every assistance in obtaining the right to such
access.
37.2 INSPECTIONS AND TESTING
The engineer shall be entitled, during manufacture fabrication or preparation to inspect and test the
materials and planned to supply under the contract. Such inspection shall not release the contractor
from any obligation under the contract.
37.3 DATES FOR INSPECTION AND TESTING
The engineer shall give the contractor not less than 24 hours notice of his intention to carry out the
inspection or test. If the engineer or his authorized representative does not attend on the date
agreed, the contractor shall proceed with the test which the contractor shall forward to the engineer
duly certified copies of the test readings.
37.4 REJECTION
If at the time and place agreed the engineer determines that the materials or plant are defective, he
may reject the materials or plant and shall notify the contractor immediately. If the engineer so
request the test of rejected materials shall be repeated under same conditions. All cost incurred for
the repetition to be determined by the engineer and shall be recoverable from the contractor.
37.5 INDEPENDENT INSPECTION
The engineer may delegate inspection and testing of materials to an independent inspector. Any
such delegation shall be affected in accordance with sub clause 2.4
38.1 EXAMINATION OF WORK BEFORE COVERING UP
The contractor shall afford the opportunity for the engineer to examine and measure the work which
is about to be covered up or put out of view and to examine foundations before any part of the work is
placed.
38.2 UNCOVERING AND MAKING OPENINGS
The contractor shall uncover any part of work or make openings as the engineer may instruct and
shall make good such part. If any such part has been covered up or put out of view after compliance
and is found to be executed in accordance with the contract, the engineer after consultation of
employer and contractor determine the amount of contractors cost of such uncovering, reinstating
and making good the same, shall be added to the contract price.
39.1 REMOVAL OF IMPROPER WORK, MATERIALS OR PLANT
The engineer shall have authority to issue instructions from time to time.
- Removal from the site, of any material or plant which are not in accordance with the contract.
- Substitution of proper and suitable materials or plant
- Removal and proper re-execution, not with standing any previous test,
- Design by he contractor or for which he is responsible is not in accordance with the contract.

39.2 DEFAULT ON THE CONTRACTOR IN COMPLIANCE
In case of default on the part of contractor the employer, shall be entitled to employ and pay other
person to carry out the same and all cost be determined by the engineer and shall be recoverable
from the contractor by employer.
40.1 SUSPENSION OF WORK
The contractor shall, on the instructions of the engineer suspend the progress of work. During such
suspension he must protect and secure the work. Unless such suspension is;
- Provided for in the contract
- Necessary in case of breach or default by the contractor.
- Necessary because of poor climatic conditions.
- Necessary for proper execution of work.
40.2 ENGINEERS DETERMINATION FOLLOWING SUSPENSION OF WORK
The engineer shall after consulting the contractor and the employer determine,
- Any extension of time
- The amount to be added to the contract price, due to suspension.
40.3 SUSPENSION OF WORK FOR MORE THAN 84 DAYS
If the progress of the work is suspended for more than 84 days then the contractor can give a notice for
resumption of work within 28 days of receipt of order. If permission for resumption is not given within the
said period then the contractor can consider it as termination of contract.
COMMENCEMENT AND DEALYS
41.1 COMMENCEMENT OF WORKS
The Contractor shall commence the works as soon as is reasonably possible after the receipt by him of a
notice to this effect from the Engineer, such notice shall be issued within the time stated in the appendix to
tender after the date of the letter of acceptance.
42.1 POSSESSION OF SITE AND ACCESS THERE
Employer will, with the Engineers notice to commence the works, give to the contractor possession
of so much of the site, and such access as, in accordance with the Contract, is to be provided by the
Employer, in accordance with the programme referred to in clause 14.
42.2 FAILURE TO GIVE POSSESSION
If employer fails to give possession of site to the contractor the Engineer shall, after due consultation
with the employer and the contractor, determine:
- Extension of time
- Additional cost to be added to contract price
42.3 RIGHTS OF WAY AND FACILITIES
The contractor should bear the cost for any right of way required by him for access to the site.
43.1 TIME FOR COMPLETION
The complete project or any part of the project should be completed within the time specified in the
Appendix to tender in accordance to clause 48. If extension is given then the works are to e
completed as per clause 44.
44.1 EXTENSION OF TIME FOR COMPLETION
The contractor is entitled for extension of time, if
- Amount of extra work is to be done
- Adverse climatic conditions,
- Delay due to hurdles created by employer
- Any special circumstance other than breach by the contractor.
44.2 CONTRACTOR TO PROVIDE NOTIFICATION AND DETAILED PARTICULARS.
The engineer is not bound to make decision regarding the extension if the contractor has not notified
the engineer within 28 days after such situation has aroused.
44.3 INTERIM DETERMINATION OF EXTENSION
If it is impracticable for contractor to provide details of delay within 28 days, the extension shall still be
granted, if contractor can provide interim details. But the full details of event need to be provided
within 28 days of the end of the effects resulting from events.
45.1 RESTRICTION ON WORKING HOURS
If not specifically mentioned in the contract then no work should be carried out in the night or on local
days of rest. If absolutely necessary and unavoidable the work at night can be allowed if the
contractor takes prior permission from the engineer.
46.1 RATE OF PROGRESS
If for any reason the rate of progress is delayed and the contractor is not entitled for an extension the
engineer should advise the contractor to expedite his work so as to complete the project in time. The
contractor shall take steps to expedite his work after consulting the engineer. The contractor is not
entitled for payment of any extra cost incurred. If any overtime work is carried out to catch with the
progress of work. The extra supervision cost of employer/engineer shall be deductible from the
contractors monies.
47.1 LIQUIDATED DAMAGES FOR DELAY
If the contractor fails to complete the project within stipulated time then he shall pay the employer
relevant sum as mentioned in the appendix to tender as liquidated damages and not as penalty. The
employer is free to deduct this amount from the payment of the contractor. Still this does not relieve
the contractor from his obligations as mentioned in the contract to complete the works.
47.2 REDUCTION OF LIQUIDATED DAMAGES
if the taking over certificate is issued for any part of work before the completion of the work then the
amount payable as liquidated damages shall be reduced to that extent.
48.1 TAKING OVER CERTIFICATE
When major part of the project has been substantially completed and passed the test of completion
then the contractor can send a notice to the engineer, stating that all outstanding works will be
completed in the defect liability period with due expedition.
48.2 TAKING OVER OF PARTS
In accordance with the procedure of clause 48.1 the engineer shall issue on request of the contractor
a taking over certificate in respect of
- Any section for which a separate time of completion is mentioned in the original contract.
48.3 SUBSTANTIAL COMPLETION OF PARTS
If any part of the project has been substantially completed than the engineer has the authority to issue
taking over certificate on receipt of such notice the contractor is liable to complete any outstanding
work within the defect liability period.
48.4 SURFACES REQUIRING REINSTATEMENT
Unless specially mentioned any taking over certificate should not be considered as certification for
completion of any ground or surfaces requiring reinstatement.

DEFECT LIABILITY
49.1 DEFECT LIABILITY PERIOD
Defect liability period means period so named in he Appendix calculated from.
- The date of substantial completion of work as certified by the engineer as per clause 48 or from
respective part completion dates.
49.2 COMPLETION OF OUTSTANDING WORKS AND REMEDYING DEFECTS
Contractor shall complete the work if any outstanding on the date stated in the taking over certificate
as soon as practicable after such date.
- Execute all such work of amendment reconstruction and remedying defects as the engineer may
during the defect liability period or within 14 days after expiration of such period.
49.3 COST OF REMEDYING DEFECTS
All work referred to in clause 49.2 (b) shall be executed by the contractor at his own cost unless
remedy work is due to any other cause, for which Engineer will determine addition to Contract price.
49.4 CONTRACTORS FAILURE TO CARRY OUR INSTRUCTIONS
If there is any default on the part of the contractor in carrying out the work of remedy within
reasonable time the employer shall be entitled to employ and pay other person whom he thinks
suitable to carry out the same work. All the cost incurred for doing the work by the other person will
deducted from the contractors bills.
50.1 CONTRACTOR TO SEARCH
If any defects or fault appears in the work done by the contractor before the completion of the defect
liability period the engineer may instruct the contractor to find out the cause of such a defect. The
cost of such a search be added to the contract price only if the contractor is not liable for the defect
caused.
51.1 VARIATIONS:
If the Engineer feels the necessity to make any variations of the form, quality or quantity of the
Works he has the authority to instruct the Contractor to do so and the Contractor shall do any of the
following:
a) Increase or decrease the quantity of any work included in the contract.
b) Omit any such work (but not if the omitted work is to be carried out by the Employer or by
another contractor).
c) Change the character or quality or kind of any such work.
d) Change the levels, lines, position and dimensions of any part of the works.
e) Execute additional work of any kind necessary for the completion of the works.
f) Change sequence or timing of construction.
51.2 INSTRUCTIONS FOR VARIATIONS:
The Contractor is not supposed to make any variation without an instruction of the Engineer. No
instructions are required if work execution results into increase/decrease of quantities than those
stated in the Bill of quantities.
52.1 VALUATION OF VARIATIONS
All variations and any additions to the Contract Price shall be as per the rates and price of variations
present in the Contract. If the Contract does not contain any rates or prices applicable to varied work,
the rates and prices of the Contract shall be used as the basis for valuation. In the event of
disagreement the Engineer shall notify the Contractor with a copy to the Employer. Till the time the
rates are agreed or fixed, the Engineer shall determine provisional rates or prices to enable on-
account payments to be included in certificates issued in accordance with Clause 60.
52.2 POWER OF ENGINEER TO FIX RATES
The Engineer shall determine the rate for varied work if existing rates in the contract are
inappropriate, in consultation with Employer and Contractor. If agreement is not reached on the
rates, the engineer shall fix provisional rates which are appropriate in his opinion, to enable on
account payment for payment certificates issued under clause 60, untill such time as rates or prices
are agreed, provided Contractor or engineer has given notice of 14 days to each other about their
intention to seek varied rates.
52.3 VARIATIONS EXCEEDING 15 PERCENT
If, on the issue of the Taking-Over Certificate for the Whole of the Works, it is found that as a result of:
a) all varied work valued under Sub-Clause 52.1 and 52.2 and
b) all adjustments upon measurement of the estimated quantities set out in the Bill Of Quantities,
excluding Provisional Sums, day works and adjustments of price made under Clause 70 that the
contract price has varied in excess of 15% then Engineer will decide increase/decrease to
contract price having regards to Contractors site and general overhead cost. This change if any
shall be related to 15% excess level over contract price.
52.4 DAY WORK
The Engineer if he feels that it is necessary, can issue a instruction that any varied work shall be
executed on a day work basis according to the terms and conditions provided in the day work
schedule.
53.1 NOTICE OF CLAIMS
If the Contractor want to raise any additional claim for payment pursuant to any provision of Contract,
he shall give a notice of his intentions to the Engineers with a copy of the Employer within 28 days
after the event giving rise to the claim.
53.2 CONTEMPORARY RECORDS
If any event happens and the Contractor wants to claim for additional payments for such events he
shall keep contemporary records without necessarily admitting the Employers liability.
53.3 SUBSTANTIATION OF CLAIMS
Within 28 days or such other reasonable time under Sub-Clause 53.1, the Contractor shall send to
the Engineer an account giving details of the amount claimed and the grounds upon which the claim
is based. In case the event giving rise to the claims has a continuing effect, within 28 days of the end
of the effect of the event, the Contractor shall send a final account to the Engineer.
53.4 FAILURE TO COMPLY
If the Contractor cannot fulfill any of the provisions of this Clause in respect to any claims which he
desires to make, his entitlement to payment shall not exceed such amount as the Engineer or any
arbitrators appointed under sub-Clause 67.3 and assessing the claims considers to be verified by
contemporary records.

53.5 PAYMENT OF CLAIMS
The Contractor shall be entitled to have included in any interim payment certified by the Engineer
pursuant to Clause 60 such amount in respect of any claim as the Engineer, may consider due to the
Contractor provided that the Contractor has supplied sufficient particulars to enable the Engineer to
determine the amount due. If the particulars are insufficient to substantiate the whole of the claim
then the Contractor shall be paid only for that part of the claim for which the particulars may
substantiate to the satisfaction of the Engineer.
54.1 CONTRACTORS EQUIPMENT, TEMPORARY WORKS AND MATERIALS
All the Contractors Equipment, Temporary works and Materials provided by the Contractor when
once brought on to the Site, should be used exclusively for the execution of works and the Contractor
shall not remove the same without the consent of the Engineer.
54.2 EMPLOYER NOT LIABLE FOR DAMAGE
The Employer shall not at any time be liable, save as mentioned in Clauses 20 and 65, for the loss of
or damage to any of the said Contractors Equipment, Temporary Works or Materials.
54.3 CUSTOMS CLEARANCE
The Employer will try his level best in helping the Contractor in obtaining clearance through the
Customs of Contractors Equipment, materials and other things required for the Works.
54.4 RE-EXPORT OF CONTRACTORS EQUIPMENT
If the Contractor has imported any Equipment for the purposes of the Works, the Employer will use
his best endeavors to assist the Contractor in seeking Government consent to re-export.
54.5 CONDITIONS OF HIRE OF CONTRACTORS EQUIPMENT
In case of termination of contract, the employer is free to use Contractors equipment at site by paying
hire-charges and requesting for this within seven days of termination.
54.6 COSTS FOR THE PURPOSE OF CLAUSE 63
In the event of the Employer entering into any agreement for the hire of Contractors Equipment
pursuant to Sub-Clause 54.5, all sums properly paid by the Employer and all costs incurred by him
shall be deemed, for the purpose of Clause 63, to be part of the cost of executing and completing the
Works and the remedying of any defects therein.
54.7 INCORPORATION OF CLAUSE IN SUB-CONTRACTS
The Contractor while entering the execution of any part of the works shall keep the provisions of this
clause in relation to Contractors Equipment, Temporary Works or Materials brought on to the Site by
the Sub-Contractor also.
54.8 APPROVAL OF MATERIALS NOT IMPLIED
The operation of this Clause shall not be deemed to imply any approval by the engineer of the
material or other matters referred. Engineer is also free to reject at any time.
55.1 QUANTITIES
The quantities provided in the Bill of Quantities are the estimated quantities of work and are not the
actual or correct quantities which a Contractor is supposed to do under a contract.
56.1 WORKS TO BE MEASURED
The Engineer shall measure the value of the works done in accordance with the contract and the
Contractor shall be paid in accordance to Clause 60.
For Permanent Works which are measured by records and drawings, the Engineer shall prepare the
measurement and the Contractor when called upon in writing to examine and agree them shall do so
within 14 days and sign them. If the Contractor does not sign them they are deemed correct. If the
contractor after examination finds them incorrect he shall within 14 days of such examination sent a
notice of his dis-agreement with the Engineer who shall review the records and drawings and either
confirm or vary them.
57.1 METHOD OF MEASUREMENT
The works shall be measured net, not withstanding any general or local custom, except where
otherwise provided for in the contract.
57.2 BREAKDOWN OF LUMP SUM ITEMS
Wihtin 28 days after the receipt of the Letter Of Acceptance, the Contractor shall submit in
accordance with clause 60.1 a breakdown for each of the lump sum items which are contained in the
tender. Such breakdowns shall be subject to approval of Engineer.
58.1 DEFINITION OF PROVISIONAL SUM
Provisional Sum means a sum (if any) which is specified in the contract as a provisional sum.
Provisional Sum shall only be used in whole or in part, in accordance with the Engineers instructions
and the Contract Price shall be adjusted accordingly.
58.2 USE OF PROVISIONAL SUMS
The engineer shall have authority to issue instruction for the execution of work or for supply of goods
or services under provisional sum.
58.3 PRODUCTION OF VOCHERS
The Contractor shall, when required by the Engineer, produce quotations, invoices, vouchers and
accounts or receipts in connection with the expenditure made under the Provisional Sums, except
where work is valued in accordance with the rates or prices set out in the Tender.
59.1 DEFINITION OF NOMINATED SUBCONTRACTOR
All specialist, merchants, tradesmens supplying any goods, material, plant or services for which
provisional sums are included in the contract, and all persons to whom by value of the provisions of
the contract the contractor is required to subcontract shall, in the execution of such work be deemed
to be subcontractors to the contractor and are referred to in the contract as Nominated
Subcontractors.
59.2 NOMINATED SUBCONTRACTORS; OBJECTION TO NOMINATION
The Contractor shall not be required by Employer or Engineer to be under any obligation to employ
any nominated subcontractor against whom contractor may raise reasonable objection or who
declines to enter into sub contract with contractor containing provision.
a) The nominated sub contractor will undertake towards the contractor obligation and liabilities
towards the Employer arising out of any failure to perform such obligations.
b) The nominated subcontractor will save harmless and indemnity the contractor from and against
any negligence by nominated subcontractor, his men and from any mistake by him.
59.3 DESIGN REQUIREMENTS TO BE EXPRESSLY STATED
If in the connection with any provisional sum the service to be provided in to any mater of design or
specification, such requirement shall be expressly stated in the contract and shall be included in any
nominated sub contract. The nominated subcontract shall specify that the nominated subcontractor
providing such services will save harmless and indemnity the contractor.
59.4 PAYMENT TO NOMINATED SUBCONTRACTORS
For all works, goods or services supplied by any nominated subcontractor, contractor shall be entitled
to
a) The actual price paid as per the instruction of Engineer and according to the Subcontract.
b) In case of labour supplied by contractor.
c) In respect of all charges and profit of all sum of price is to be calculated. Where provision has
been made in the bill of quantities for rate to be set against the relevant provisional sum at rate
inserted by the contractor.

59.5 CERTIFICATION OF PAYMENT TO NOMINATED SUBCONTRACTOR
Any certificate which includes any payment in respect of nominated subcontractor, the Engineer shall
be entitled to demand from the contractor reasonable proof that all payments, less retentions have
been made to nominated sub contractor.
a) Satisfies the Engineer in writing that he has reasonable cause for with-holding or refusing to
make such payment.
b) Contractor to produces the Engineer reasonable proof that he has so informed the nominated
subcontractor in the writing about reasons for with-holding.
The Employer shall be entitled to pay to such nominated subcontractor direct as per the certificate of
the Engineer, all payments, less retention provided for in nominated sub contract if contractor has failed
to make payment to nominated sub-contractor and deduct the same by way of set off the amount from
any sums due to contractor.
60.1 MONTHLY STATEMENTS
The contractor shall submit to the Engineer after the end of each month six copies of statements
showing the amounts to which the contractor considers himself to be entitled up to the end of the
month in respect of:
a) The value of the permanent work.
b) Any other item in the Bill of Quantities including those for contractors equipment.
c) And plant delivery by the contractor on the sire for incorporation in the permanent works but not
incorporated in such works.
d) Adjustment under the clause 70.
e) Any other sum to which the contractor may be entitled under the contract.
60.2 MONTHLY PAYMENTS
The Engineer shall, within 28 days of receiving such statement, deliver to the employer an interim
payment certificate stating the amount of payment due to the contractor subject.
a) Firstly to retention of the amount calculated by applying the percentage of retention stated in the
appendix to tender until the amount so retained reaches the limit or retention money stated in the
appendix to Tender.
b) Secondly to the deduction other than pursuant to clause 47 of any sums which may have
become due and payable by the contractor to the Employer.
Provided that the engineer shall not be bound to certify any payment in the net amount thereof,
after the retention and deduction, would be less than the minimum Amount of interim payment
certificate stated in the appendix to tender.
60.3 PAYMENT OF RETENTION MONEY
a) Upon the issue of the taking-Over Certificate with respect to the whole of the works, one half of
the retention money, shall be certified by the Engineer for payment to the Contractor.
b) Upon the expiration of the Defect Liability Period for the work other half of the Retention Money
shall be certified by the Engineer for payment to the contractor. The expression expiration of the
Defect Liability Period shall for the purpose of the clause, be deemed to mean the expiration of
the latest of such periods provided also that if at such time there shall remain to be executed by
the contractor any work instructed, pursuant to clause 49 and 50 in respect of the works the
Engineer shall be entitled to withhold certification until completion of such work.
60.4 CORRECTION OF CERTIFICATES
The Engineer May in any interin Payment Certificate carryout any correction or modification in any
previous Interim Payment Certificate.
60.5 STATEMENT AT COMPLETION
Not later than 84 days after the issue of the Taking-Over Certificate in respect of the whole of the
works, the contractor shall submit to the Engineer six copies of Statement of completion showing in
detail,
a) The final value of all work done
b) Any further sums which the contractor considerers to be due and
c) An estimate of amount which contractor considers will become due. The engineer shall certify
payment in accordance with sub-clause 60.2.
60.6 FINAL STATEMENT
Not later than 56 days after the issue of Defect Liability Certificate the contractor shall submit to the
Engineer for six copies of draft final statement showing in detail.
a) The value of all the work done in accordance with the contract
b) Any further sum which contractor consider to be due to him. If the Engineer disagree or cannot
verify any part of draft final statement, contractor shall submit any further information required.
The Engineer shall deliver to the Employer an Interim Payment Certificate for those part of the draft
final statement, which are not in dispute. The dispute may be settled in accordance with clause 67.
60.7 DISCHARGE
Upon submission of final statement, the contractor shall give to the Employer, written discharge
confirming that the total of the final statement represent full and final settlement of all monies due to the
contractor. Provided that such discharge become effective only after payment due under the final
payment certificate has been paid to the contractor and the performance security is returned.
60.8 FINAL PAYMENT CERTIFICATE
Within 28 days after receipt of final statement, and written discharge the Engineer shall issue a final
payment certificate stating:
a) The amount which is finally due under the contract .
b) After giving credit to Employer for all amount previously paid other than under clause 47 and all
sums to which Employer is entitled under the contract.
60.9 CESSATION OF EMPLOYERS LIABILITY
The employer shall not be liable to the contractor connection with the contract or execution of the work
unless the contractor shall have included a claim in respect thereof in his final statement.
60.10 TIME OF PAYMENT
i. The amount due to the Contractor under any interim Certificate issued by the Engineer be paid
by Employer to the contractor within 56 days.
ii. Final payment Certificate within 56 days after such Final Payment Certificate has been delivered
to the Employer. In the event of the failure of employer to make the payment within the time
stated the Employer shall pay contractor interest at the rate stated in appendix to tender.
61.1 APPROVAL ONLY BY DEFECTS LIABILITY CERTIFICAE
Only the Defects Liability Certificate, referred to clause 62 shall be deemed to constitute approval of the
works.
62.1 DEFECT LIABILITY CERTIFICATE
The Defects Liability Certificate shall given by the Engineer within 28 days after the expiration of the
Defects liability period or if different defect liability periods shall become applicable for different section
or part of the works, the expiration of latest such period.
62.2 UNFULFILLED OBLIGATIONS
Notwithstanding the issue of defects Liability Certificate the contractor and the Employer shall be
remain liable for fulfillment of any obligation which remain unperformed.
63.1 DEFAULT OF CONTRACTOR
If in the opinion of Engineer, the contractor
a) has repudiated the Contract, or
b) without reasonable excuse has failed to commence the work accordance with sub-clause 41.1
c) has failed to comply with notice under sub clause 37.4.
d) despite previous warning from the Engineer, neglecting to comply with any of his obligations
under the Contract then the Employer may, after giving notice 14 days notice to the Contractor,
terminate the Employment of the Contractor, then remaining work may be completed by
Employer himself or may employ any other Contractor to complete of work. The Employer or
such contractor may use Contractors Equipment, Temporary Work and materials as he or
they may think proper.
63.2 VALUATION AT DATE OF TERMINATION
As soon as after any such termination by Employer, engineer may fix ex-parte or by reference to
parties and shall certify,
a) what amount is due at the time of termination in respect of the work done by Contractor.
b) value of any of the said unused or partially used materials and any of Contractors Equipment
and Temporary Work retained.
63.3 PAYMENT AFTER TERMINATION
Client shall not be liable to pay any further amount in respect contract until expiration of defects liability
period and thereafter until cost of remedying of defects, damages for delays is ascertained.
63.4 ASSIGNMENT OF BENEFIT OF AGREEMENT
Unless prohibited by law, the Contractor shall, if so instructed by engineer within 14 days of such
termination.
Assign to the Employer the benefit of any agreement for the supply of any goods, materials, or services
and / or execution of any work for the purpose of the Contract, which the Contractor may have entered
in to with any other sub-contractor.
64.1 URGENT REMEDIAL WORK
If during execution of the work or during the defect liability period, any accident or failure or any other
emergency arise in relation to the work in opinion of the Engineer, urgently necessary for safety of the
work and Contractor shows un-willingness to do so. Employer shall be entitled to employ and pay
other persons to carry out such work.

If the work or repair so done by the Employer, in opinion of the Engineer was liable to be done by
contractor then client may deduct the cost of such repair from the remaining payment of the Contractor.
65.1 NO LIABILITY FOR SPECIAL RISKS
The Contractor shall be under no liability whatsoever in consequence of any of the special risks
referred to in Sub Clause 65.2
65.2 SPECIAL RISKS
The special risk are:
a) the risk defined under paragraphs (a), (c),(d) and (e) of Sub-Clause 20.4
b) The risk defined under paragraph (b) of Sub-Clause 20.4, insofar as these relate to the country in
which the works are to be executed.
65.3 DAMAGE TO WORKS BY SPECIAL RISKS
If any loss or damage happens to the works, goods or Contractors equipment due to special risks,
then the Contractor shall be entitled to payment for rectifying any damage to the works and replacing/
rectifying such materials or Contractors Equipment.
65.4 PROJECTILE MISSILE
Destruction, damage, loss of the life caused by the explosion or impact, occurring due to shell, bomb,
mine, grenade or other projectile, missiles or explosive of war, shall be deemed to be a consequence of
the said special risk.
65.5 INCREASED COST ARISING FROM SPECIAL RISKS
If damage to work arises due to out break of war, then client shall pay to Contractor the cost of damage but the
contractor is required to bring to the notice of engineer such events of special risk.
65.6 OUTBREAK OF WAR
If, during the currency for the contract, there is an out break of war, or any part of the world which financially or
materially affects the execution of the works, Employer can terminate contract under such situation by giving notice
to the Contractor.
65.7 REMOVAL OF CONTRACTORS EQUIPMENTS ON TERMIANTION
If the Contract is terminated under the provisions of Sub-Clause 65.6, the Contractor shall, with all reasonable
dispatch, remove from the site all Contractors and sub contractors Equipment.
65.8 PAYMENT IF CONTRACT TERMIANTED
If the contract is terminated, the contractor shall be paid by the Employer at the rates and prices provided in the
contract and in addition.
a) The amount payable in respect of any preliminary items referred to in the bill of quantities.
b) The cost of good which already ordered by the contractor for execution of work which have been delivered
to contractor or of which the contractor is legally liable to accept delivery, (such materials, plant or goods
becoming properly of Employer upon such payment is made by him.)
c) It also include expenditure incurred for the Contractor in expectation of completing the work.
d) Any additional sum payable under the provision of Sub-Clauses 65.3 and 65.5
e) Some cost of removal of contractors Equipments.
f) The reasonable cost of repatriation of all the Contractors staff and workmen employed on or in connection
with work at the time of such Termination.
66.1 PAYMENT IN EVENT OF RELEASE FROM PERFORMANCE
If it becomes impossible or unlawful for any or both parties to meet the obligations of the contract then
the parties are released from the contract.
In such case contractor is entitled to payment under clause 65 of termination.
67.1 ENGINEERS DECISION
In case of a dispute between the client and the contractor, the dispute is first notified to the engineer in
writing. Engineer to settle the dispute within 84 days. If any of the parties disagrees with the decision
of the engineer they have to notify the other party within 70 days of the decision of the engineer
otherwise, such decision becomes final.
67.2 AMICABLE SETTLEMENT
Before going for arbitration both parties should try to amicably settle the dispute between them within a
period of 56 days from the date of the decision by the engineer. Or if both parties agree on arbitration
They can proceed for it earlier than 56 days also.
67.3 ARBITRATION
If Engineer's decision on dispute has not become binding and amicable settlement has not been
reached then the dispute shall be settled unless otherwise specified by the contract, under the rules of
conciliation and Arbitration of the International chamber of commerce.
Arbitration may be commenced prior to or after completion of the works without changing obligations of
all parties to dispute.

67.4 FAILURE TO COMPLY WITH ENGINEERS DECISION
When neither party has sought arbitration on the disputed matter, but is not complying with Engineers
decision, such failure can be referred to arbitration.
68.1 NOTICES TO CONTRACTOR
Notice shall be sent through post, telex, cabel, or facsimile transmission or left at contractors principle
place of business or address given by the contractor.
68.2 NOTICES TO EMPLOYER AND ENGINEER
Notice shall be sent through post, telex, cabel, or facsimile transmission or left at principle place of
business or address given by the Employer.
68.3 CHANGE OF ADDRESS
Change of address may be carried with prior notice to the other party.
69.1 DEFAULT OF EMPLOYER
a) Failing to pay amount under any certificate by the engineer within 28 days of certification.
b) Interfering, obstructing or refusing any such certificate.
c) If the employer is becoming bankrupt. In all the above conditions contractor can terminate the
employment after 14 days of giving notice.
d) Notifying that due to unforeseen reasons the employer cannot pay.
69.2 REMOVAL CONTRACTORS EQUIPMENTS
After the notice period of 14 days is over contractor can remove his equipments from the site.
69.3 PAYMENT ON TERMINATION
Employer is obliged to release payment of work already executed at the site like provisions under
clause 65 and also the compensation for the contractors loss or damage arising out of such
termination.
69.4 CONTRACTORS ENTITLEMENT TO SUSPEND WORK
If Employer fails to pay contractor amount due under certificate issued by engineer within 28 days as
per sub clause 60.10, then by giving 28 days prior notice suspend work or reduce the rate of work.
The Engineer after due consultation decide the time extension and the cost incurred which shall be
added to the contract price, when work is restarted.
69.5 RESUMPTION OF WORK
When the employer subsequently pays the contractor including interest he should resume the work as
soon as possible.
70.1 INCREASE OR DECREASE OF COST
There shall be increase/decrease in contract price based on rise and fall in cost of labour and material
as provided in the part II of these conditions.
70.2 SUBSEQUENT LEGISTATION
In case after 28 days prior to the latest date for submission of tenders for the contract, there occurs in the
country where the works are being carried out, any change in the National or State Statute, Ordinance, Decree
or other law or any regulation of any local or other duly constituted authority which causes additional or reduced
cost to the Contractor. Any such additional or reduced cost shall be determined by the Engineer shall be
added to or deducted from the actual contract price.
71.1 CURRENCY RESTRICTIONS
If after the date 28 days prior to the latest date for submission of tenders for contract, either the Government or
any authorized agency imposes restriction on the currency and or restrictions on the transfer of currency. The
Employer shall refund or repay any loss or damage to the Contractor arising out of this.
71.2 RATES OF EXCHANGE
When the provisions of the contract are such that the payment may be made in whole or in part to the
contractor in foreign currency or currencies, this payment shall not be subject to the variations in the rate or
rate of exchanges.
72.2 CURRENCY PROPORTIONS
Where the Employer has required that the tender should be expressed in a single currency but with a provision
for payment to be made in more than one currency shall unless otherwise be stated in Part II of these
conditions, be the prevailing rates as determined by the Central Bank of the country in which the works are to
be executed, as on the date 28 days prior of the latest date for submission of tenders.

72.3 CURRENCIES OF PAYMENT FOR PROVISION SUM
Where the contract has such a provision that the payment may be made in more that one currency, sums shall
be determined as per the principles set forth in the Sub-Clauses 72.1 and 72.2.