GENERAL CONDITIONS OF THE

CONTRACT FOR CONSTRUCTION

Articles 19 through 24
ARTICLE 19 :
PROTECTION OF THE WORK, PERSONS
AND PROPERTY

19.5 The Contractor shall designate a qualified and

responsible on site staff person, whose duty shall be
the prevention of accidents.

“The name and position of the designated person shall be

reported to the Owner by the Contractor at the
commencement of the Contract.”
ARTICLE 19:
PROTECTION OF THE WORK,
PERSONS AND PROPERTY

19.8 The Contractor shall remove all snow and ice as

may be required for access to the site and proper
protection and prosecution of the Work.
ARTICLE 19:
PROTECTION OF THE WORK, PERSONS
AND PROPERTY

19.10 During cold weather the Contractor shall protect

all work from damage.

If low temperature makes it impossible to continue

operations safely in spite of cold weather precautions, the
Contractor may cease Work upon the written approval of
the Commissioner.
ARTICLE 20:
TEMPORARY UTILITIES
20.1
 Unless expressly provided for otherwise in the
Contract Documents, the Contractor shall include in
the proposed contract bid price as stated on the Bid
Proposal Form the costs of all temporary utilities
required for Project completion and protection of the
Work.
 Said temporary utilities include but are not limited
to lighting, heating, cooling, electrical power, water,
telephone, sanitary facilities, and potable water.
ARTICLE 21:
CORRECTIONS TO THE WORK
21.5
 No extension of time will be given to the Contractor
for correction of rejected or unacceptable Work.
 All significant punchlist Work shall be completed
before Substantial Completion is determined.
 The remaining minor punchlist Work, as determined
by the Commissioner, shall be completed within 60
Days of established Substantial Completion date.
ARTICLE 22:
GUARANTEES AND WARRANTEES
22.1
 Unless expressly provided for otherwise in the
Contract Documents, the Contractor shall provide a
Warranty on the Work for an 18-Month period from
the date of Substantial Completion.
 The Contractor shall warrant that the equipment,
materials and workmanship are of good quality and
new, unless permitted elsewhere by the Contract
Documents, and that the Work shall be free from
defects not inherent in the quality required or
permitted and that the Work conforms to the
Contract Documents.
ARTICLE 22:
GUARANTEES AND WARRANTEES (CONT.)

22.2
 Disclaimers and limitations from manufactures,
Subcontractors, suppliers or installers to the
Contractor shall not relieve the Contractor of the
Warranty on the Work.
 The Contract Documents detail the related damages,
reinstatement of Warranty, replacement cost and
Owner’s recourse.
ARTICLE 23:
CUTTING, FITTING, PATCHING, AND DIGGING
23.1
 The Contractor will perform or will cause the
Subcontractors to perform all cutting, fitting or
patching of the portion(s) of the Work that may be
required to make the several parts thereof joined and
coordinated in a manner satisfactory to the
Commissioner and in accordance with the Plans and
Specifications.
ARTICLE 24 : CLEANING UP
24.2
 Prior to Acceptance of the Work, the Contractor shall
remove from and about the site of the Work, all rubbish
and all temporary structures, tools, scaffolding and surplus
materials, supplies and equipment which may have been
used in the performance of the Work.
 If the Commissioner in his sole discretion determines that
the Contractor has failed to clean the work site, the Owner
may remove the rubbish and charge the cost of such
removal to the Contractor.
 A deduct Change Order will be issued by the Owner to
recover such cost.
General conditions of contract comprise clauses that cover the
following items:
 Definitions and interpretations.
 Engineer and Engineer's representative.
 Assignment and sub-contracting.
 Contract documents.
 General obligations.
 Labor, Materials, plant, and workmanship.
 Suspension.
 Commencement and delays.
Defects liability.
 Alternations, Additions and Omissions.
 Procedure of claims.
 Contractors' equipment, temporary works and materials.
 Provisional sums.
 Certificates and payments.
 Remedies.
 Special risks.
 Release for performance. Settlement of disputes. Notices. Default of
Employer. Changes in cost and legislation. Currency and rates of exchange.
Most of the standard forms of conditions of contract contain one or more clauses, which require
completion by the Client/Engineer before the conditions are issued.
ROLE OF AN ARCHITECT IN ENSURING A POSITIVE
COMPLETION OF A CONTRACT

A contract is a vital document as it is a legally-binding commitment between

the builder and the client to deliver the project.
 The architect administers this contract impartially between both parties
(client and contractor), although the architect’s fees are generally paid by the
client.
The architect will then be responsible for ensuring that the contract
documentation is appropriate (there are many different types of contract) and
accurate and all items under the contract, such as variations and certificates,
are properly signed and issued.
ROLE OF AN ARCHITECT IN ENSURING A POSITIVE
COMPLETION OF A CONTRACT [contd…. ]

 He or she will carry out periodic site visits to monitor progress.

The architect will make a professional judgment regarding the required
frequency of these visits, unless an alternative programme of visits has been
agreed with the client.
An architect engaged to monitor construction of the project (which should not
be confused with contract administration) will be responsible for checking that
the construction conforms to the planning permission and Building Regulations
and all stages are properly completed to a satisfactory standard of
workmanship.
ROLE OF AN ARCHITECT IN ENSURING A POSITIVE
COMPLETION OF A CONTRACT [contd…… ]

This will involve periodic site visits to monitor progress (visually), but will not
normally involve the architect in detailed checking of dimensions or testing
materials.
The contractor, on site, will supervise the work on a day-to-day basis and be
responsible for the proper carrying out and completion of construction works
and for health and safety provisions on the site.
Some architects will offer more detailed inspection services for an additional
fee.
ROLE OF AN ARCHITECT IN ENSURING A POSITIVE
COMPLETION OF A CONTRACT [contd…… ]

If the architect is neither administering the contract, nor monitoring the
construction, he or she may undertake site visits at the client’s request, in order
to advise on progress.
 In this role of project adviser, it is understood that the architect will be acting
for the client, and not in the neutral, impartial role required of a contract
administrator or construction overseer.
The architect is not responsible for managing the builder’s programme of
works, nor for organizing the work on site – responsibility rests with the
builder/contractor, including the responsibility to notify expected problems.
ROLE OF AN ARCHITECT IN ENSURING A POSITIVE
COMPLETION OF A CONTRACT [contd…… ]
The architect is however in a position to advise the client on the
circumstances and if those are reasonable may, on the client’s behalf and if
acting as contract administrator, award extensions of time.
Such work which is beyond the architect’s control may result in additional
fees.
The architect is not responsible for the work undertaken by any other
consultant (such as a structural engineer) engaged on the project.
Other consultants will usually be engaged directly by the client and fees
should be paid directly to them.
It is possible to engage an architect to provide all consultancy services.
 In this arrangement the other consultants are sub-consultants of the architect
and responsible to him or her rather than the client direct.
They are paid by the architect whose fees will reflect this.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES.
When claims are asserted by either party to the construction contract, owner or
contractor, the architect should immediately commence the process of
resolution.
ORIGINATION OF A CLAIM

Any claim or demand by the contractor against the owner or by the owner
against the contractor should be reduced to writing.
 It should be directed to the other party with a copy to the architect.
Contractor claims are often in the form of a request asking for adjustments in
the contract price or time, or both, usually on account of changed or
unexpected conditions or adverse weather.
Many owner claims are an expression of dissatisfaction of some facet of the
contractor’s performance.
Continuing Contract Performance.
During the architect’s consideration of a claim, the contractor is required to
continue diligently with the work of the contract and the owner is required to
continue making payments according to the contract.
This, of course, can be changed by mutual written agreement of the parties,
if that is what they want.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES. [ Contd…… ]

REFERRAL TO THE ARCHITECT FOR DESIGN

The architect’s initial decision is necessary as a condition precedent to the

next steps in the process.
The architect should treat this contractual duty as a high priority assignment.
 Should the architect delay this decision for 30 days, then the mediation and
arbitration procedures will, by then, be set in train without the architect.
In making the decision, the architect must be fair and should obtain the
complete views of both sides before making the decision.
The decision must be based on the actual provisions of the contract
documents, not what the architect wishes were in the documents.
Sometimes the claim will be based on an alleged error or omission of the
architect.
This will be the litmus test of the fairness capacity of the architect.
All of the architect’s decision-making procedures should be in writing.
 In the event that either or both of the parties are dissatisfied with the
decision, or the procedure, higher authorities (arbitrators) will undoubtedly
review, and possibly overturn, the architect’s decision.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES. [ Contd…… ]

REFERRAL TO THE ARCHITECT FOR DESIGN

In the event the decision is considered fair and is acceptable to the parties,
this resolves the claim and forestalls continuation of the procedure leading to
mediation and arbitration.
The parties’ acceptance of the architect’s decision is usually the most
economical way to end the controversy.
Continuation through mediation and arbitration will undoubtedly entail
considerable additional time and significant legal expense.
The result, weeks or months later, might be the same as the architect’s initial
decision.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES. [ Contd…… ]

ARCHITECT'S DECISION-MAKING PROCEDURE

Architect’s Immediate Actions. Within ten days after receiving the claim, the
architect should take one or more of the following actions:
(1) Ask the claimant to submit additional supporting data or ask the other party
to submit a response with supporting data.
(2) Reject the claim in whole or in part.
(3) Suggest a compromise.
(4) Advise the parties that the architect is unable to resolve the claim.
This would be the case if the architect feels there is insufficient information to
evaluate the merits of the claim, or if the architect concludes that it would be
inappropriate to decide the claim.

Architect’s Investigation. The architect should seek whatever relevant

information is available from the parties, and should consult with experts if
necessary. It may be necessary for the architect to seek the owner’s
authorization for the expense of retaining such experts.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES. [ Contd…… ]

ARCHITECT'S DECISION-MAKING PROCEDURE

Parties’ Response and Supporting Data.

The parties should respond and submit additional supporting data within ten
days after the architect’s request.
After receipt of responses and supporting data, if any, from both sides, the
architect should reject or approve the claim in whole or in part.
The decision should be issued within 30 days after all information from both
sides is received by the architect.

Architect’s Written Decision.

The decision should be in writing and should state the reasons for the
decision.
The decision should inform the parties of any change in the contract sum or
time, or both.
The decision is final and binding on the parties but is subject to mediation
and arbitration.
DISPUTES IN CONTRACT AND ARCHITECT'S ROLE IN RESOLVING SUCH
DISPUTES. [ Contd…… ]

ARCHITECT'S DECISION-MAKING PROCEDURE

Finality of Decision.
The written decision should include language similar to the following:
(1) This decision is final but subject to mediation and arbitration.
(2) A demand for arbitration of this claim must be made within 30 days after
the date on which the party making the demand receives the final written
decision. The failure to demand arbitration within said 30 days’ period shall
result in this decision becoming final and binding upon the owner and
contractor.
Late Decision.
If the architect renders the decision after an arbitration has been initiated,
the decision has no effect, but may be entered in the arbitration as evidence.
 However, if the parties wish to accept the architect’s late decision, then
the arbitration can be dropped and the decision accepted.
MEDIATION
If the parties cannot mutually accept the architect’s decision, then the claim is
referred to mediation under the Construction Industry Mediation Rules of the
American Arbitration Association (AAA). This must be done before the claim
can be submitted to arbitration.

Mediation is a procedure in which a mutually acceptable disinterested, impartial

intermediary meets and talks with both sides, together and separately, and
assists them in their negotiations. The mediator does not impose any decisions
on the parties but instead helps them to arrive at their own voluntary
resolution.

Mediation can be by-passed if both parties agree to do so. However, many

disputes are resolved in mediation, and if this can be done, much time, effort,
and expense can be saved. A mediated settlement, being somewhat informal,
will often leave the parties in a friendlier state so they can continue doing
business with each other.

The parties will share the AAA fees and mediator’s fees equally.
ARBITRATION
If the dispute cannot be settled by the architect’s decision or by mediation,
then it will be subject to arbitration.

Arbitration procedures will be in accordance with the Construction Industry

Arbitration Rules of the AAA.

Arbitration is a system whereby a disinterested neutral person or panel of three

hears the evidence and arguments of both sides in a dispute and then makes a
decision. The decision is final and binding on the parties, with appeals limited
to matters involving corruption of the arbitrators or other unfairness of the
procedure.

The arbitration is initiated by the claimant sending a demand to the other

party, with a copy to the AAA. The demand must be made within the 30-day
period after the architect’s initial decision.

At the time of making an arbitration demand, the claimant must include all
known claims against the other party.

The arbitrators, in their award, will determine who pays the costs of the
arbitration.