closing date: 01 february 2017 @11h00. · 3.2 design and construction of nursery and hydroponics...

Chief Directorate: Supply Chain & Facilities Management Services: Directorate: Demand and Acquisition Management: Sub-Directorate: Acquisition Management: Infrastructure Procurement,184 Jeff Masemola Street, Pretoria, 0001; Tel: 012 312 8369/9876/9315; Fax: 086 570 9467

INVITATION TO BID

BID NO: 5/2/2/1 CON 0069 (2016/2017): TURN-KEY PROJECT FOR THE DEVELOPMENT OF

HYDROPONIC TUNNELS IN DR J S MOROKA LOCAL MUNICIPALITY AT NKANGALA DISTRICT

MUNICIPALITY IN MPUMALANGA PROVINCE.

The two envelope system is required for this BID. The service provider is required to

submit two proposals; one clearly marked ‘technical proposal’ and another proposal

clearly marked ‘financial proposal’. Each envelope shall state on the outside the

Employer’s address and identification details, as well as the tenderer's name and contact

address.

NB: A TENDER CLARIFICATION MEETING WILL BE HELD FOR THIS PROJECT A COMPULSORY TENDER CLARIFICATION MEETING will be held on MONDAY 23 JANUARY 2017 at 11h00 at: Department of Rural Development and Land Reform; Provincial Shared Service Centre: Mpumalanga, 18 Bell Street, Bell Towers Building, 7

th Floor Boardroom, Nelspruit.

NON-ATTENDANCE OF THE COMPULSORY MEETING WILL RENDER THE TENDER A RISK TO THE EMPLOYER AND THEREFORE BE EXCLUDED FROM FURTHER CONSIDERATION. Prospective bidders who wish to claim points should attach their B- BBEE status level of contribution certificate (s) or certified copies thereof in order to qualify for points claimed. In the case of Bidders who qualifies as Exempted Micro Enterprises, in terms of B-BBEE Act, must submit a certificate issued by an Accounting Officer as contemplated in the Close Corporation Act or Verification Agency accredited by SANAS or Registered Auditor. The 90/10 preference points system as prescribed in the Preferential Procurement Policy Framework Act (PPPFA) will be applied to evaluate this bid. Kindly note that in bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must submit a separate Valid Original Tax Clearance Certificate. Failure to comply with this requirement will invalidate your offer.

Closing date: 01 February 2017 @11H00. Interested service providers can obtain a full bid document with the evaluation criteria as follows:

Bid Documents can be issued electronically (i.e. by email) at no cost to prospective

bidders upon request.

OR

OBTAINED AS WALK IN AT THE FOLLOWING OFFICES : NATIONAL DEPARTMENT OF RURAL DEVELOPMENT 184 Jeff Masemola Street, Pretoria, 0001 Or DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM; PROVINCIAL SHARED SERVICE CENTRE: MPUMALANGA, 18 Bell Street, Bell Towers Building, 7th Floor, Nelspruit upon on receipt of proof of payment. A non – refundable amount of R 100.00 (One Hundred Rand) which is payable in cash, or deposit. BANKING DETAILS: Account name: Department of Rural Development and Land Reform Bank: ABSA Branch number: 632005 Account number: 40-5400-6793 Physical address: 184 Jeff Masemola Street, Pretoria, 0001. Reference number: National Office 04009549 –con 0069 (2016/2017)

Tenders will be received on the closing date and time shown above. All tenders must be enclosed in

sealed envelopes bearing the applicable tender heading and contract number, as well as the closing

time and due date, and must be addressed to the CHIEF DIRECTOR: SUPPLY CHAIN AND

FACILITIES MANAGEMENT SERVICES, DEPARTMENT OF RURAL DEVELOPMENT

AND LAND REFORM, and must be submitted in the tender box situated at : Physical address: DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM: NATIONAL OFFICE 184 JEFF MASEMOLA STREET, PRETORIA 0001

ENQUIRIES SHOULD BE DIRECTED TO THE RELEVANT OFFICIALS TECHNICAL ENQUIRIES Name: Ms Xoliswa Ngcobo

Tel. No: 079 898 5236 Fax: 013 656 0848 email: [email protected]

Name: Mr T Mokoena

Tel. No.: 076 253 1697 Fax No.: 086 570 9467 Email: [email protected]

BID RELATED ENQUIRIES: Ms. R Goolam / Mr. GI Sekwale Tel: (012) 312 8369/9876/9315 E: [email protected] or [email protected] BID DOCUMENT COLLECTION ENQUIRIES PRETORIA Mr. GI Sekwale/ Mr M Ngobese Tel: 012 312 9876/8369/9315 Email: [email protected] NELSPRUIT Mr. D Rudolph Tel: 013 754 8034 Email: [email protected]

mailto:[email protected]





PROVINCIAL SHARED SERVICE CENTRE: MPUMALANGA

DIRECTORATE: RURAL INFRASTRUCTURE DEVELOPMENT

Private Bag X11305, Nelspruit, 1200; Tel: 013 755 3499; Fax: 013 755 2820; Web: www.drdlr.gov.za

INVITATION TO SUBMIT TURN KEY PROPOSALS FOR THE DEVELOPMENT OF HYDROPONIC

TUNNELS IN DR J S MOROKA LOCAL MUNICIPALITY AT NKANGALA DISTRICT MUNICIPALITY IN

MPUMALANGA PROVINCE

1 Employer‟s objectives

This tender is for the development of hydroponic project in Dr. J S Moroka Local

Municipality.

2 Project description

2.1 Background

The Department of Rural Development and Land Reform is looking for a service

provider that can supply and install hydroponic tunnels and nursery in Dr J S

Moroka local municipality. The projects will be located in Kammeelrivier village.

This initiative is aimed to improve livelihoods and contribute towards the

development of rural communities through job creation, skills development and

food security

2.2 Site location



MPUMALANGA PROVINCE

The location where the hydroponic structures will be required is set out in Table

1 and Error! Reference source not found. below.

Table 1: Location of project

HYDROPONIC STRUCTURES AND NURSERY

District

Municipality Nkangala District Municipality

Local

Municipality

Dr. J S Moroka Local Municipality

Approximate

coordinates

29°43'38.7"S

30°49'45.4"E

Closest town Siyabuswa

Access Road R568

3. SCOPE OF REQUIREMENTS

The purpose of this RFP is to procure services for the development of hydroponic

structures. The project must FULLY comply with the following requirements:

3.1 Feasibility study

The feasibility study shall entail

Conduct a site assessment

crop analysis and potential

technical analysis including production and operational analysis

Recommend suitable infrastructure based on the feasibility study for the

project



MPUMALANGA PROVINCE

Market analysis study

Financial feasibility analysis

Skills development and training requirements

The Service Provider must be able to supply a suitable qualified

professional(s) (resources) with sufficient knowledge; experience in

developing business plans, conducting analysis/ assessment; evaluation

of business plans and providing advisory services on the market linkages

and value chain(s), as well as any professional services deemed suitable

for PEP

3.2 Design and construction of nursery and hydroponics structures

Design and construct suitable 2 multi – span hydroponic structures with a

nursery as per the technical and project parameters.

Design and construct nursery and hydroponics irrigation system which

incorporates the fertilisers distribution system.

Design and construct necessary ventilation, heating and cooling system

Sitting, drilling and equipping of one borehole.

Supply, deliver and 10 000L storage tank with steel stand.

3.3 Agricultural inputs and implements

Provision of relevant agricultural inputs and implements

A provisional sum of R 500 000 will be allowed for this item.

The service provider must include an attendance fee on the provisional

amount



MPUMALANGA PROVINCE

3.4 Mentoring and training

Prepare and mentoring plan for a period of 24 months

Provide training from an accredited institution by AgriSETA

The client reserves the right to approve the proposed training institution

The service provider must allow 5 (five) percent of the total project cost

towards training and development.

The service provider must include an attendance fee on the training and

development cost.

4. METHOD OF PROCUREMENT TO BE FOLLOWED

The contract will be based on the New Engineering Contract (version 3).

4.1 MANDATORY REQUIREMENTS

Valid tax clearance certificates issued by the South African Revenue Services,

where consortium/joint ventures / sub-contractor are involved each party must

submit a separate valid Tax Clearance Certificate;

A company resolution authorising a particular person to sign the bid document

Attendance of compulsory briefing session;

Only those Tenderers who are registered with the CIDB, in a contractor

grading designation equal to or higher than a contractor grading

designation determined in accordance with the sum tendered for a 5CE OR

5SH or Higher Class of construction work, are eligible to submit tenders.

Joint ventures are eligible to submit tenders provided that they comply with all three of the following conditions:

1. Every member of a joint venture is registered with the CIDB;

2. The lead partner has a contractor grading designation of not lower than

one level below the required grading designation of 5CE or 5SH or

higher of construction work.



MPUMALANGA PROVINCE

3. The combined contractor grading designation calculated in accordance

with the Construction Industry Development Regulations is equal to or

higher than a contractor designation determined in accordance with the

sum tendered for a 5CE or 5SH of construction work, is eligible to submit

tenders.

Senior Economist with Honours in Economics and a minimum of 3 to 5 years’

post-graduation working experience. (attach cv and qualification certificate)

4.2 Bid Evaluation Criteria

The bid will be evaluated using the TWO ENVELOPE SYSTEM. Each of the two

sealed envelopes should be clearly marked “THE DEVELOPMENT OF HYDROPONIC


MPUMALANGA PROVINCE” and tenderers are to place and seal the technical proposal in

an envelope marked „TECHNICAL PROPOSAL” and place the financial proposal in a

separate envelope marked “FINANCIAL PROPOSAL”.

4.2.1 Evaluation on functionality

4.2.1.1 First stage – Evaluation of Functionality

BID EVALUATION CRITERIA

The 90/10 Preference Points System as prescribed in the Preferential Procurement Policy Framework Act (PPPFA) will be applied to evaluate this bid. The lowest acceptable bid will score 90 points for price and maximum of 10 points will be awarded for attaining the Broad-Based Black Economic Empowerment (B-BBEE) status level of contribution.

The evaluation of functionality will be evaluated individually by Members of the Bid

Evaluation Committee in accordance with the below functionality criteria and values.



MPUMALANGA PROVINCE

The applicable values that will be utilised when scoring each criteria ranges from

0 – very poor, 1 – poor, 2 – average, 3 – good, 4 – very good and 5 – Excellent

Evaluation Criteria Application Weight

Ability and Capacity

Experience

Project management

experience

An overview of each team

members area of expertise

including CV and

qualifications(Preference will be

given to a team with

background in Civil engineering

preferably irrigation system,

water related projects and

Agricultural engineering )

Company’s previous

experience in similar projects

(Attach previous experience of

similar work undertaken- list

names, addresses, telephone

numbers and email addresses

of at least three (3) references

and describe the type of

service provided

20

30

Project programme Attach a project programme

indicating the proposed time

frames for the delivery of the

project including time frames for

the following stages

Feasibility study

15



MPUMALANGA PROVINCE

Design

construction of nursery

and hydroponic structures

Provision of required

implements

Commissioning

Mentoring stage

Approach and

Methodology

(ability to

demonstrate a

thorough

understanding of

the scope of work)

Bidder will be evaluated on a

proposal that describes the

approach and methodology for

the implementation of the project

in relation to the scope outlined in

item 3 above. E.g. The service

provider must elaborate on how

they will undertake the feasibility

study.

(Attach a proposal on the

approach and methodology that

will be followed in implementation

of the project)

35

NB: The Bids that fail to achieve a minimum of 60 points for functionality will be disqualified.

4.2.1.2 SECOND STAGE – TWO ENVELOPE SYSTEM

The two envelope system is required for this BID. The service provider is

required to submit two proposals; one clearly marked ‘technical proposal’ and

another proposal clearly marked ‘financial proposal’. Each envelope shall state

on the outside the Employer’s address and identification details, as well as the

tenderer's name and contact address.



MPUMALANGA PROVINCE

5. PROCUREMENT PROGRAMME

The programme of the implementation of these contracts is indicated in the table

below:

Activity Due Date

1. Feasibility study 20 February 2017

2. Due date for designs Submitted with the proposal

3. Construction of hydroponics and

nursery

28 April 2017

4. Provision of agricultural implements 8 May 2017

5. Training for beneficiaries 15 May 2017 – 19 May 2017

6. FORMAT OF BID

The bidder is required to provide the following:

Breakdown of service cost and delivery as per the scope of works.

The BID must reflect an expiry date and be on the basis of new item.

The BID must also reflect a discounted price if any.

The proposal should be in a written typed format, prepared in accordance with

the specifications given above.

The BID must include the items listed in the specifications

A fixed price of fees must be quoted and should be inclusive of all related costs

and discounts. Expiry date of the BID should be reflected.



MPUMALANGA PROVINCE

7. TERMS AND CONDITIONS

7.1 Awarding the bid will be subject to the Service Provider’s express of acceptance of the general conditions of contract.

7.2 The DRDLR and the Service Provider will sign a Service Level Agreement upon

appointment. Such SLA will include but not limited to the following:

Period of agreement

Project objectives and scope

Staffing

Project Plan and Project Plan Management

Budget

Cost and fee payment

Method of Communication

Reporting Relationship

Deliverables and terms of deliverables

Reviews

Uncompleted work

Confidentiality

Disputes

Financial penalties and termination of contract

7.3 Administrative issues

Persons assigned to the project

The persons proposed for use on the project shall be identified at the outset and

remains in use on the project unless prior written permission is granted by the

Department to change the staffing proposal. Such permission will only be granted

in exceptional cases.

Use of Material and Information

No material or information derived from the provision of the services under the

contract may be used for any purposes other than those of the Department,

except where authorised in writing to do so.

Designs and reports submitted will be ceded to the Department in soft copy

and hardcopy.



MPUMALANGA PROVINCE

8. BID RELATED ENQUIRIES

Technical

Enquiries

Xoliswa Ngcobo [email protected] 079 898 5236

SCM Related

Enquiries

Ms. R.Goolam/ Mr.G.I Sekwale

[email protected] /

[email protected]

012 3128369

012 312 9876


mailto:[email protected]%20%20/


Annex F (normative)

Standard Conditions of Tender

As published in Annexure F of the cidb Standard for Uniformity for construction Procurement, Board Notice 136 Government Gazette No 38960 of 10 July 2015

F.1 General

F.1.1 Actions F.1.1.1 The employer and each tenderer submitting a tender offer shall comply with these conditions of tender. In their dealings with each other, they shall discharge their duties and obligations as set out in F.2 and F.3, timeously and with integrity, and behave equitably, honestly and transparently, comply with all legal obligations and not engage in anticompetitive practices. F.1.1.2 The employer and the tenderer and all their agents and employees involved in the tender process shall avoid conflicts of interest and where a conflict of interest is perceived or known, declare any such conflict of interest, indicating the nature of such conflict. Tenderers shall declare any potential conflict of interest in their tender submissions. Employees, agents and advisors of the employer shall declare any conflict of interest to whoever is responsible for overseeing the procurement process at the start of any deliberations relating to the procurement process or as soon as they become aware of such conflict, and abstain from any decisions where such conflict exists or recuse themselves from the procurement process, as appropriate. Note: 1) A conflict of interest may arise due to a conflict of roles which might provide an incentive for improper acts in

some circumstances. A conflict of interest can create an appearance of impropriety that can undermine

confidence in the ability of that person to act properly in his or her position even if no improper acts result.

2) Conflicts of interest in respect of those engaged in the procurement process include direct, indirect or family

interests in the tender or outcome of the procurement process and any personal bias, inclination, obligation,

allegiance or loyalty which would in any way affect any decisions taken.

F.1.1.3 The employer shall not seek and a tenderer shall not submit a tender without having a firm intention and the capacity to proceed with the contract. F.1.2 Tender Documents The documents issued by the employer for the purpose of a tender offer are listed in the tender data. F.1.3 Interpretation F.1.3.1 The tender data and additional requirements contained in the tender schedules that are included in the returnable documents are deemed to be part of these conditions of tender. F.1.3.2 These conditions of tender, the tender data and tender schedules which are only required for tender evaluation purposes, shall not form part of any contract arising from the invitation to tender.

F.1.3.3 For the purposes of these conditions of tender, the following definitions apply: a) conflict of interest means any situation in which:

i) someone in a position of trust has competing professional or personal interests which make it difficult to fulfill his or her duties impartially;

ii) an individual or organisation is in a position to exploit a professional or official capacity in some way for their personal or corporate benefit; or

iii) incompatibility or contradictory interests exist between an employee and the organisation which employs that employee.

b) comparative offer means the price after the factors of a non-firm price and all unconditional discounts it can be utilised to have been taken into consideration;

c) corrupt practice means the offering, giving, receiving or soliciting of anything of value to influence the action of the employer or his staff or agents in the tender process;

d) fraudulent practice means the misrepresentation of the facts in order to influence the tender process or the award of a contract arising from a tender offer to the detriment of the employer, including collusive practices intended to establish prices at artificial levels;

e) organization means a company, firm, enterprise, association or other legal entity, whether incorporated or not, or a public body;

f) functionality means the measurement according to the predetermined norms of a service or commodity designed to be practical and useful, working or operating, taking into account quality, reliability, viability and durability of a service and technical capacity and ability of a tenderer.

F.1.4 Communication and employer’s agent Each communication between the employer and a tenderer shall be to or from the employer's

agent only, and in a form that can be readily read, copied and recorded. Communications shall be in the English language. The employer shall not take any responsibility for non-receipt of communications from or by a tenderer. The name and contact details of the employer’s agent are stated in the tender data.

F.1.5 Cancellation and Re-Invitation of Tenders

F1.5.1 An organ of state may, prior to the award of the tender, cancel a tender if-

(a) due to changed circumstances, there is no longer a need for the services, works or goods

requested; or

(b) funds are no longer available to cover the total envisaged expenditure; or

(c) no acceptable tenders are received.

F1.5.2 The decision to cancel a tender must be published in the cidb website and in the

government Tender Bulletin for the media in which the original tender invitation was advertised.

F.1.6 Procurement procedures

F.1.6.1 General Unless otherwise stated in the tender data, a contract will, subject to F.3.13, be concluded with the tenderer who in terms of F.3.11 is the highest ranked or the tenderer scoring the highest

http://en.wikipedia.org/wiki/Duty

http://en.wikipedia.org/wiki/Impartiality

number of tender evaluation points, as relevant, based on the tender submissions that are received at the closing time for tenders.

F.1.6.2 Competitive negotiation procedure

F.1.6.2.1 Where the tender data require that the competitive negotiation procedure is to be followed, tenderers shall submit tender offers in response to the proposed contract in the first round of submissions. Notwithstanding the requirements of F.3.4, the employer shall announce only the names of the tenderers who make a submission. The requirements of F.3.8 relating to the material deviations or qualifications which affect the competitive position of tenderers shall not apply. F.1.6.2.2 All responsive tenderers, or not less than three responsive tenderers that are highest ranked in terms of the evaluation method and evaluation criteria stated in the tender data, shall be invited in each round to enter into competitive negotiations, based on the principle of equal treatment and keeping confidential the proposed solutions and associated information. Notwithstanding the provisions of F.2.17, the employer may request that tenders be clarified, specified and fine-tuned in order to improve a tenderer’s competitive position provided that such clarification, specification, fine-tuning or additional information does not alter any fundamental aspects of the offers or impose substantial new requirements which restrict or distort competition or have a discriminatory effect. F.1.6.2.3 At the conclusion of each round of negotiations, tenderers shall be invited by the employer to make a fresh tender offer, based on the same evaluation criteria, with or without adjusted weightings. Tenderers shall be advised when they are to submit their best and final offer. F.1.6.2.4 The contract shall be awarded in accordance with the provisions of F.3.11 and F.3.13 after tenderers have been requested to submit their best and final offer. F.1.6.3 Proposal procedure using the two stage-system F.1.6.3.1 Option 1 Tenderers shall in the first stage submit technical proposals and, if required, cost parameters around which a contract may be negotiated. The employer shall evaluate each responsive submission in terms of the method of evaluation stated in the tender data, and in the second stage negotiate a contract with the tenderer scoring the highest number of evaluation points and award the contract in terms of these conditions of tender.

F.1.6.3.2 Option 2 F.1.6.3.2.1 Tenderers shall submit in the first stage only technical proposals. The employer shall invite all responsive tenderers to submit tender offers in the second stage, following the issuing of procurement documents. F.1.6.3.2.2 The employer shall evaluate tenders received during the second stage in terms of the method of evaluation stated in the tender data, and award the contract in terms of these conditions of tender. F.2 Tenderer’s obligations

F.2.1 Eligibility F.2.1.1 Submit a tender offer only if the tenderer satisfies the criteria stated in the tender data and the tenderer, or any of his principals, is not under any restriction to do business with employer. F.2.1.2 Notify the employer of any proposed material change in the capabilities or formation of the tendering entity (or both) or any other criteria which formed part of the qualifying requirements used by the employer as the basis in a prior process to invite the tenderer to submit a tender offer and obtain the employer’s written approval to do so prior to the closing time for tenders. F.2.2 Cost of tendering

F2.2.1 Accept that, unless otherwise stated in the tender data, the employer will not

compensate the tenderer for any costs incurred in the preparation and submission of a tender

offer, including the costs of any testing necessary to demonstrate that aspects of the offer

complies with requirements.

F2.2.2 The cost of the tender documents charged by the employer shall be limited to the actual cost incurred by the employer for printing the documents. Employers must attempt to make available the tender documents on its website so as not to incur any costs pertaining to the printing of the tender documents. F.2.3 Check documents Check the tender documents on receipt for completeness and notify the employer of any discrepancy or omission. F.2.4 Confidentiality and copyright of documents Treat as confidential all matters arising in connection with the tender. Use and copy the documents issued by the employer only for the purpose of preparing and submitting a tender offer in response to the invitation. F.2.5 Reference documents Obtain, as necessary for submitting a tender offer, copies of the latest versions of standards, specifications, conditions of contract and other publications, which are not attached but which are incorporated into the tender documents by reference. F.2.6 Acknowledge addenda Acknowledge receipt of addenda to the tender documents, which the employer may issue, and if necessary apply for an extension to the closing time stated in the tender data, in order to take the addenda into account. F.2.7 Clarification meeting

Attend, where required, a clarification meeting at which tenderers may familiarize themselves with aspects of the proposed work, services or supply and raise questions. Details of the meeting(s) are stated in the tender data. F.2.8 Seek clarification Request clarification of the tender documents, if necessary, by notifying the employer at least five working days before the closing time stated in the tender data. F.2.9 Insurance Be aware that the extent of insurance to be provided by the employer (if any) might not be for the full cover required in terms of the conditions of contract identified in the contract data. The tenderer is advised to seek qualified advice regarding insurance. F.2.10 Pricing the tender offer F.2.10.1 Include in the rates, prices, and the tendered total of the prices (if any) all duties, taxes (except Value Added Tax (VAT), and other levies payable by the successful tenderer, such duties, taxes and levies being those applicable 14 days before the closing time stated in the tender data. F2.10.2 Show VAT payable by the employer separately as an addition to the tendered total of the prices. F.2.10.3 Provide rates and prices that are fixed for the duration of the contract and not subject to adjustment except as provided for in the conditions of contract identified in the contract data. F.2.10.4 State the rates and prices in Rand unless instructed otherwise in the tender data. The conditions of contract identified in the contract data may provide for part payment in other currencies. F.2.11 Alterations to documents Do not make any alterations or additions to the tender documents, except to comply with instructions issued by the employer, or necessary to correct errors made by the tenderer. All signatories to the tender offer shall initial all such alterations. F.2.12 Alternative tender offers F.2.12.1 Unless otherwise stated in the tender data, submit alternative tender offers only if a

main tender offer, strictly in accordance with all the requirements of the tender documents, is

also submitted as well as a schedule that compares the requirements of the tender documents

with the alternative requirements that are proposed.

F.2.12.2 Accept that an alternative tender offer may be based only on the criteria stated in the

tender data or criteria otherwise acceptable to the employer.

F.2.12.3 An alternative tender offer may only be considered in the event that the main tender offer is the winning tender.

F.2.13 Submitting a tender offer F.2.13.1 Submit one tender offer only, either as a single tendering entity or as a member in a joint venture to provide the whole of the works, services or supply identified in the contract data and described in the scope of works, unless stated otherwise in the tender data. F.2.13.2 Return all returnable documents to the employer after completing them in their entirety, either electronically (if they were issued in electronic format) or by writing legibly in non-erasable ink. F.2.13.3 Submit the parts of the tender offer communicated on paper as an original plus the number of copies stated in the tender data, with an English translation of any documentation in a language other than English, and the parts communicated electronically in the same format as they were issued by the employer. F.2.13.4 Sign the original and all copies of the tender offer where required in terms of the tender data. The employer will hold all authorized signatories liable on behalf of the tenderer. Signatories for tenderers proposing to contract as joint ventures shall state which of the signatories is the lead partner whom the employer shall hold liable for the purpose of the tender offer. F.2.13.5 Seal the original and each copy of the tender offer as separate packages marking the packages as "ORIGINAL" and "COPY". Each package shall state on the outside the employer's address and identification details stated in the tender data, as well as the tenderer's name and contact address. F.2.13.6 Where a two-envelope system is required in terms of the tender data, place and seal the returnable documents listed in the tender data in an envelope marked “financial proposal” and place the remaining returnable documents in an envelope marked “technical proposal”. Each envelope shall state on the outside the employer’s address and identification details stated in the tender data, as well as the tenderer's name and contact address. F.2.13.7 Seal the original tender offer and copy packages together in an outer package that states on the outside only the employer's address and identification details as stated in the tender data. F.2.13.8 Accept that the employer will not assume any responsibility for the misplacement or premature opening of the tender offer if the outer package is not sealed and marked as stated. F.2.13.9 Accept that tender offers submitted by facsimile or e-mail will be rejected by the employer, unless stated otherwise in the tender data. F.2.14 Information and data to be completed in all respects Accept that tender offers, which do not provide all the data or information requested completely and in the form required, may be regarded by the employer as non-responsive. F.2.15 Closing time

F.2.15.1 Ensure that the employer receives the tender offer at the address specified in the tender data not later than the closing time stated in the tender data. Accept that proof of posting shall not be accepted as proof of delivery. F.2.15.2 Accept that, if the employer extends the closing time stated in the tender data for any reason, the requirements of these conditions of tender apply equally to the extended deadline. F.2.16 Tender offer validity F.2.16.1 Hold the tender offer(s) valid for acceptance by the employer at any time during the validity period stated in the tender data after the closing time stated in the tender data. F.2.16.2 If requested by the employer, consider extending the validity period stated in the tender data for an agreed additional period with or without any conditions attached to such extension. F.2.16.3 Accept that a tender submission that has been submitted to the employer may only be withdrawn or substituted by giving the employer’s agent written notice before the closing time for tenders that a tender is to be withdrawn or substituted. F.2.16.4 Where a tender submission is to be substituted, submit a substitute tender in accordance with the requirements of F.2.13 with the packages clearly marked as “SUBSTITUTE”. F.2.17 Clarification of tender offer after submission Provide clarification of a tender offer in response to a request to do so from the employer during the evaluation of tender offers. This may include providing a breakdown of rates or prices and correction of arithmetical errors by the adjustment of certain rates or item prices (or both). No change in the competitive position of tenderers or substance of the tender offer is sought, offered, or permitted. Note: Sub-clause F.2.17 does not preclude the negotiation of the final terms of the contract with a preferred tenderer

following a competitive selection process, should the Employer elect to do so.

F.2.18 Provide other material F.2.18.1 Provide, on request by the employer, any other material that has a bearing on the tender offer, the tenderer’s commercial position (including notarized joint venture agreements), preferencing arrangements, or samples of materials, considered necessary by the employer for the purpose of a full and fair risk assessment. Should the tenderer not provide the material, or a satisfactory reason as to why it cannot be provided, by the time for submission stated in the employer’s request, the employer may regard the tender offer as non-responsive. F.2.18.2 Dispose of samples of materials provided for evaluation by the employer, where required. F.2.19 Inspections, tests and analysis Provide access during working hours to premises for inspections, tests and analysis as provided for in the tender data.

F.2.20 Submit securities, bonds and policies If requested, submit for the employer’s acceptance before formation of the contract, all securities, bonds, guarantees, policies and certificates of insurance required in terms of the conditions of contract identified in the contract data. F.2.21 Check final draft Check the final draft of the contract provided by the employer within the time available for the employer to issue the contract. F.2.22 Return of other tender documents If so instructed by the employer, return all retained tender documents within 28 days after the expiry of the validity period stated in the tender data. F.2.23 Certificates Include in the tender submission or provide the employer with any certificates as stated in the tender data. F.3 The employer’s undertakings F.3.1 Respond to requests from the tenderer F.3.1.1 Unless otherwise stated in the tender Data, respond to a request for clarification received up to five working days before the tender closing time stated in the Tender Data and notify all tenderers who drew procurement documents. F.3.1.2 Consider any request to make a material change in the capabilities or formation of the tendering entity (or both) or any other criteria which formed part of the qualifying requirements used to prequalify a tenderer to submit a tender offer in terms of a previous procurement process and deny any such request if as a consequence: a) an individual firm, or a joint venture as a whole, or any individual member of the joint

venture fails to meet any of the collective or individual qualifying requirements; b) the new partners to a joint venture were not prequalified in the first instance, either as

individual firms or as another joint venture; or c) in the opinion of the Employer, acceptance of the material change would compromise the

outcome of the prequalification process. F.3.2 Issue Addenda If necessary, issue addenda that may amend or amplify the tender documents to each tenderer during the period from the date that tender documents are available until three days before the tender closing time stated in the Tender Data. If, as a result a tenderer applies for an extension to the closing time stated in the Tender Data, the Employer may grant such extension and, shall then notify all tenderers who drew documents. F.3.3 Return late tender offers

Return tender offers received after the closing time stated in the Tender Data, unopened, (unless it is necessary to open a tender submission to obtain a forwarding address), to the tenderer concerned. F.3.4 Opening of tender submissions F.3.4.1 Unless the two-envelope system is to be followed, open valid tender submissions in the presence of tenderers’ agents who choose to attend at the time and place stated in the tender data. Tender submissions for which acceptable reasons for withdrawal have been submitted will not be opened. F.3.4.2 Announce at the meeting held immediately after the opening of tender submissions, at a venue indicated in the tender data, the name of each tenderer whose tender offer is opened and, where applicable, the total of his prices, number of points claimed for its BBBEE status level and time for completion for the main tender offer only. F.3.4.3 Make available the record outlined in F.3.4.2 to all interested persons upon request. F.3.5 Two-envelope system F.3.5.1 Where stated in the tender data that a two-envelope system is to be followed, open only the technical proposal of valid tenders in the presence of tenderers’ agents who choose to attend at the time and place stated in the tender data and announce the name of each tenderer whose technical proposal is opened. F.3.5.2 Evaluate functionality of the technical proposals offered by tenderers, then advise tenderers who remain in contention for the award of the contract of the time and place when the financial proposals will be opened. Open only the financial proposals of tenderers, who score in the functionality evaluation more than the minimum number of points for functionality stated in the tender data, and announce the score obtained for the technical proposals and the total price and any points claimed on BBBEE status level. Return unopened financial proposals to tenderers whose technical proposals failed to achieve the minimum number of points for functionality. F.3.6 Non-disclosure Not disclose to tenderers, or to any other person not officially concerned with such processes, information relating to the evaluation and comparison of tender offers, the final evaluation price and recommendations for the award of a contract, until after the award of the contract to the successful tenderer. F.3.7 Grounds for rejection and disqualification Determine whether there has been any effort by a tenderer to influence the processing of tender offers and instantly disqualify a tenderer (and his tender offer) if it is established that he engaged in corrupt or fraudulent practices. F.3.8 Test for responsiveness

F.3.8.1 Determine, after opening and before detailed evaluation, whether each tender offer properly received: a) complies with the requirements of these Conditions of Tender, b) has been properly and fully completed and signed, and c) is responsive to the other requirements of the tender documents. F.3.8.2 A responsive tender is one that conforms to all the terms, conditions, and specifications of the tender documents without material deviation or qualification. A material deviation or qualification is one which, in the Employer's opinion, would: a) detrimentally affect the scope, quality, or performance of the works, services or supply

identified in the Scope of Work, b) significantly change the Employer's or the tenderer's risks and responsibilities under the

contract, or c) affect the competitive position of other tenderers presenting responsive tenders, if it were to

be rectified. Reject a non-responsive tender offer, and not allow it to be subsequently made responsive by correction or withdrawal of the non-conforming deviation or reservation. F.3.9 Arithmetical errors, omissions and discrepancies F.3.9.1 Check the highest ranked tender or tenderer with the highest number of tender

evaluation points after the evaluation of tender offers in accordance with F.3.11 for:

a) the gross misplacement of the decimal point in any unit rate;

b) omissions made in completing the pricing schedule or bills of quantities; or

c) arithmetic errors in:

i) line item totals resulting from the product of a unit rate and a quantity in bills of

quantities or schedules of prices; or

ii) the summation of the prices.

F3.9.2 The employer must correct the arithmetical errors in the following manner:

a) Where there is a discrepancy between the amounts in words and amounts in figures, the

amount in words shall govern.

b) If bills of quantities or pricing schedules apply and there is an error in the line item total

resulting from the product of the unit rate and the quantity, the line item total shall govern

and the rate shall be corrected. Where there is an obviously gross misplacement of the

decimal point in the unit rate, the line item total as quoted shall govern, and the unit rate

shall be corrected.

c) Where there is an error in the total of the prices either as a result of other corrections

required by this checking process or in the tenderer's addition of prices, the total of the

prices shall govern and the tenderer will be asked to revise selected item prices (and their

rates if bills of quantities apply) to achieve the tendered total of the prices.

Consider the rejection of a tender offer if the tenderer does not correct or accept the correction

of the arithmetical error in the manner described above.

F.3.10 Clarification of a tender offer Obtain clarification from a tenderer on any matter that could give rise to ambiguity in a contract arising from the tender offer. F.3.11 Evaluation of tender offers F.3.11.1 General Appoint an evaluation panel of not less than three persons. Reduce each responsive tender offer to a comparative offer and evaluate them using the tender evaluation methods and associated evaluation criteria and weightings that are specified in the tender data. F.3.11.2 Method 1: Price and Preference In the case of a price and preference: 1) Score tender evaluation points for price 2) Score points for BBBEE contribution 3) Add the points scored for price and BBBEE.

F.3.11.3 Method 2: Functionality, Price and Preference In the case of a functionality, price and preference: 1) Score functionality, rejecting all tender offers that fail to achieve the minimum number of

points for functionality as stated in the Tender Data. 2) No tender must be regarded as an acceptable tender if it fails to achieve the minimum

qualifying score for functionality as indicated in the tender invitation. 3) Tenders that have achieved the minimum qualification score for functionality must be

evaluated further in terms of the preference points system prescribed in paragraphs 4 and 4 and 5 below.

The 80/20 preference point system for acquisition of services, works or goods up to Rand value of R1 million

4) (a)(i) The following formula must be used to calculate the points for price in respect of tenders( including price quotation) with a rand value equal to, or above R 30 000 and up to Rand value of R 1 000 000 ( all applicable taxes included):

min

min180

P

PPtPs

Where

Ps = Points scored for comparative price of tender or offer under consideration;

Pt = Comparative price of tender or offer under consideration; and

Pmin = Comparative price of lowest acceptable tender or offer.

(4)(a)(ii) An employer of state may apply the formula in paragraph (i) for price quotations with a value less

than R30 000, if and when appropriate:

(4)(b) Subject to subparagraph(4)(c), points must be awarded to a tender for attaining the B-BBEE status

level of contributor in accordance with the table below:

B-BBEE status level of contributor Number of points

1 20

2 18

3 16

4 12

5 8

6 6

7 4

8 2

Non-compliant contributor 0

(4)(c) A maximum of 20 points may be allocated in accordance with subparagraph (4)(b)

(4)(d) The points scored by tender in respect of B-BBEE contribution contemplated in

contemplated in subparagraph (4) (b) must be added to the points scored for price as

calculated in accordance with subparagraph (4)(a).

(4)(e) Subject to paragraph 4.3.8 the contract must be awarded to the tender who scores the

highest total number of points.

The 90/ 10 preference points system for acquisition of services, works or goods with a

Rand value above R 1 million

(5)(a) The following formula must be used to calculate the points for price in respect of tenders

with a Rand value above R1 000 000 (all applicable taxes included):

Where Ps = Points scored for comparative price of tender or offer under consideration;

Pt = Comparative price of tender or offer under consideration; and

Pmin = Comparative price of lowest acceptable tender or offer.

(5)(b) Subject to subparagraph(5)(c), points must be awarded to a tender for attaining the B-

BBEE status level of contributor in accordance with the table below:


1 10

2 9


3 8

4 5

5 4

6 3

7 2

8 1

Non-compliant contributor 0

(5)(c) A maximum of 10 points may be allocated in accordance with subparagraph (5)(b).

(5)(d) The points scored by tender in respect of B-BBEE contribution contemplated in

contemplated in subparagraph (5) (b) must be added to the points scored for price as

calculated in accordance with subparagraph (5)(a).

(5)(e) Subject to paragraph 4.3.8 the contract must be awarded to the tender who scores the highest total number of points.

F.3.11.6 Decimal places Score price, preference and functionality, as relevant, to two decimal places. F.3.11.7 Scoring Price Score price of remaining responsive tender offers using the following formula: NFO = W1 x A

where: NFO is the number of tender evaluation points awarded for price. W1 is the maximum possible number of tender evaluation points awarded for price as stated in the Tender Data. A is a number calculated using the formula and option described in Table F.1 as stated in the Tender Data.

Table F.1: Formulae for calculating the value of A

Formula Comparison aimed at achieving Option 1

a Option 2

a

1 Highest price or discount A = (1 +( P - Pm)) Pm

A = P / Pm

2 Lowest price or percentage commission / fee

A = (1 - (P - Pm)) Pm

A = Pm / P

a Pm is the comparative offer of the most favourable comparative offer.

P is the comparative offer of the tender offer under consideration.

F.3.11.8 Scoring preferences Confirm that tenderers are eligible for the preferences claimed in accordance with the provisions of the tender data and reject all claims for preferences where tenderers are not eligible for such preferences. Calculate the total number of tender evaluation points for preferences claimed in accordance with the provisions of the tender data. F.3.11.9 Scoring functionality Score each of the criteria and subcriteria for quality in accordance with the provisions of the Tender Data. Calculate the total number of tender evaluation points for quality using the following formula: NQ = W2 x SO / MS

where: SO is the score for quality allocated to the submission under consideration;

MS is the maximum possible score for quality in respect of a submission; and

W2 is the maximum possible number of tender evaluation points awarded for the quality as stated in the

tender data

F.3.12 Insurance provided by the employer If requested by the proposed successful tenderer, submit for the tenderer's information the policies and / or certificates of insurance which the conditions of contract identified in the contract data, require the employer to provide. F.3.13 Acceptance of tender offer Accept the tender offer, if in the opinion of the employer, it does not present any risk and only if

the tenderer:

a) is not under restrictions, or has principals who are under restrictions, preventing

participating in the employer’s procurement,

b) can, as necessary and in relation to the proposed contract, demonstrate that he or she

possesses the professional and technical qualifications, professional and technical

competence, financial resources, equipment and other physical facilities, managerial

capability, reliability, experience and reputation, expertise and the personnel, to perform

the contract,

c) has the legal capacity to enter into the contract,

d) is not insolvent, in receivership, under Business Rescue as provided for in chapter 6 of the

Companies Act, 2008, bankrupt or being wound up, has his affairs administered by a court

or a judicial officer, has suspended his business activities, or is subject to legal

proceedings in respect of any of the foregoing,

e) complies with the legal requirements, if any, stated in the tender data, and

f) is able, in the opinion of the employer, to perform the contract free of conflicts of interest. F.3.14 Prepare contract documents F.3.14.1 If necessary, revise documents that shall form part of the contract and that were issued by the employer as part of the tender documents to take account of: a) addenda issued during the tender period, b) inclusion of some of the returnable documents, and c) other revisions agreed between the employer and the successful tenderer. F.3.14.2 Complete the schedule of deviations attached to the form of offer and acceptance, if any. F.3.15 Complete adjudicator's contract Unless alternative arrangements have been agreed or otherwise provided for in the contract, arrange for both parties to complete formalities for appointing the selected adjudicator at the same time as the main contract is signed. F.3.16 Notice to unsuccessful tenderers F.3.16.1 Notify the successful tenderer of the employer's acceptance of his tender offer by completing and returning one copy of the form of offer and acceptance before the expiry of the validity period stated in the tender data, or agreed additional period. F.3.16.2 After the successful tenderer has been notified of the employer’s acceptance of the tender, notify other tenderers that their tender offers have not been accepted. F.3.17 Provide copies of the contracts Provide to the successful tenderer the number of copies stated in the Tender Data of the signed copy of the contract as soon as possible after completion and signing of the form of offer and acceptance. F.3.18 Provide written reasons for actions taken Provide upon request written reasons to tenderers for any action that is taken in applying these conditions of tender, but withhold information which is not in the public interest to be divulged, which is considered to prejudice the legitimate commercial interests of tenderers or might prejudice fair competition between tenderers. F3.19 Transparency in the procurement process

F3.19.1 The cidb prescripts require that tenders must be advertised and be registered on the cidb

i.Tender system.

F3.19.2 The employer must adopt a transparency model that incorporates the disclosure and

accountability as transparency requirements in the procurement process.

F3.19.3 The transparency model must identify the criteria for selection of projects, project

information template and the threshold value of the projects to be disclosed in the public domain

at various intervals of delivery of infrastructure projects.

F3.19.4 The client must publish the information on a quarterly basis which contains the following

information:

Procurement planning process

Procurement method and evaluation process

Contract type

Contract status

Number of firms tendering

Cost estimate

Contract title

Contract firm(s)

Contract price

Contract scope of work

Contract start date and duration

Contract evaluation reports

F3.19.5 The employer must establish a Consultative Forum which will conduct a random audit in

the implementation of the transparency requirements in the procurement process.

F3.19.6 Consultative Forum must be an independent structure from the bid committees.

F3.19.7 The information must be published on the employer’s website.

F 3.19.8 Records of such disclosed information must be retained for audit purposes.

BID NUMBER: 5/2/2/1 CON 0069 (2016/2017) CSD REGISTRATION AND CRS INFORMATION

TENDERERS ARE ENCOURAGED TO REGISTER AND SUBMIT THE FOLLOWING NATIONAL TREASURY CENTRAL SUPPLIER DATABASE (CSD) AND CRS DETAILS WITH THIS TENDER. CRS DETAILS

Document

Tenderers should provide their CSD Supplier Number and Unique registration reference number of registered

Contractor as well as JV Partner. CSD Registration Number of Tenderers and JV Partners needs to be filled in below:

NB: In cases where a bidder intends to form a Joint Venture, the CSD Registration number/s Must be filled in

below i.e. the lead partner and Joint Venture partner/s

Tenderer/Leading JV Partner

Name of Company:

CSD Supplier Number:

Unique Registration Reference Number:

JV Partner

Name of Company:

CSD Supplier Number: Unique Registration Reference Number: JV Partner

Name of Company: CSD Supplier Number: Unique Registration Reference Number:

*NB: All contractors, even tendering in JV, must be registered with National Treasury Central Suppler Database

BID NUMBER: 5/2/2/1 CON 0069 (2016/2017) CSD REGISTRATION AND CRS INFORMATION

Clause referred to in

Standard Conditions of

Tender

Document: CRS Number/s

F.2.1 Tenderers must provide their CRS Numbers of the registered Contractor as well JV Partner*. CRS

numbers of Tenderers or JV partners needs to be filled in below:

Tenderer/Leading JV Partner

CRS Number :

Name of Company:

JV Partner

CRS Number :

Name of Company:

JV Partner

CRS Number :

Name of Company:

*NB: Recent printout from CIDB website indicating the CRS number will also be accepted.

SBD 4 5/2/2/1 CON 0069 (2016/2017)

DECLARATION OF INTEREST

1. Any legal person, including persons employed by the state¹, or persons having a kinship with persons

employed by the state, including a blood relationship, may make an offer or offers in terms of this

invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view

of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons

employed by the state, or to persons connected with or related to them, it is required that the bidder or

his/her authorised representative declare his/her position in relation to the evaluating/adjudicating

authority where-

- the bidder is employed by the state; and/or

- the legal person on whose behalf the bidding document is signed, has a relationship with

persons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or where

it is known that such a relationship exists between the person or persons for or on whose behalf

the declarant acts and persons who are involved with the evaluation and or adjudication of the

bid.

2. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

2.1 Full Name of bidder or his or her representative: ………………………………………………………….

2.2 Identity Number: …………………………………………………………………………………………………

2.3 Position occupied in the Company (director, trustee, shareholder²): ……………………………………..

2.4 Company Registration Number: ………………………………………………………………………..…….

2.5 Tax Reference Number: ………………………………………………………………………………….………

2.6 VAT Registration Number: ………………………………………………………………………………....

2.6.1 The names of all directors / trustees / shareholders / members, their individual identity numbers, tax

reference numbers and, if applicable, employee / persal numbers must be indicated in paragraph 3

below. ¹“State” means –

(a) any national or provincial department, national or provincial public entity or constitutional institution within the meaning of

the Public Finance Management Act, 1999 (Act No. 1 of 1999);

(b) any municipality or municipal entity;

(c) provincial legislature;

(d) national Assembly or the national Council of provinces; or

(e) Parliament.

²”Shareholder” means a person who owns shares in the company and is actively involved in the management of the enterprise or

business and exercises control over the enterprise.

2.7 Are you or any person connected with the bidder YES / NO

presently employed by the state?

2.7.1 If so, furnish the following particulars:

Name of person / director / trustee / shareholder/ member: ……....………………………………

Name of state institution at which you or the person

connected to the bidder is employed : ………………………………………

Position occupied in the state institution: ………………………………………

Any other particulars:

………………………………………………………………

………………………………………………………………

………………………………………………………………

2.7.2 If you are presently employed by the state, did you obtain YES / NO

the appropriate authority to undertake remunerative

work outside employment in the public sector?

2.7.2.1 If yes, did you attached proof of such authority to the bid YES / NO

document?

(Note: Failure to submit proof of such authority, where

applicable, may result in the disqualification of the bid.

2.7.2.2 If no, furnish reasons for non-submission of such proof:

…………………………………………………………………….

…………………………………………………………………….

…………………………………………………………………….

2.8 Did you or your spouse, or any of the company’s directors / YES / NO

trustees / shareholders / members or their spouses conduct

business with the state in the previous twelve months?

2.8.1 If so, furnish particulars:

…………………………………………………………………..

…………………………………………………………………..

…………………………………………………………………...

2.9 Do you, or any person connected with the bidder, have YES / NO

any relationship (family, friend, other) with a person

employed by the state and who may be involved with

the evaluation and or adjudication of this bid?

2.9.1If so, furnish particulars.

……………………………………………………………...

…………………………………………………………..….

………………………………………………………………

2.10 Are you, or any person connected with the bidder, YES/NO

aware of any relationship (family, friend, other) between

any other bidder and any person employed by the state

who may be involved with the evaluation and or adjudication

of this bid?

2.10.1 If so, furnish particulars.

………………………………………………………………

………………………………………………………………

………………………………………………………………

2.11 Do you or any of the directors / trustees / shareholders / members YES/NO

of the company have any interest in any other related companies

whether or not they are bidding for this contract?


…………………………………………………………………………….

…………………………………………………………………………….

…………………………………………………………………………….

3 Full details of directors / trustees / members / shareholders.

Full Name Identity

Number

Personal Tax

Reference Number

State Employee

Number / Persal

Number

4 DECLARATION

I, THE UNDERSIGNED (NAME)………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT.

I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF

PARAGRAPH 23 OF THE GENERAL CONDITIONS OF CONTRACT SHOULD THIS DECLARATION

PROVE TO BE FALSE.

………………………………….. ..……………………………………………

Signature Date

…………………………………. ………………………………………………

Position Name of bidder

May 2011

SBD 6.1 5/2/2/1 CON 0069 (2016/2017)

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011

This preference form must form part of all bids invited. It contains general information and serves as

a claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE)

Status Level of Contribution NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS,

DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE

PREFERENTIAL PROCUREMENT REGULATIONS, 2011.

1. GENERAL CONDITIONS

1.1 The following preference point systems are applicable to all bids:

- the 80/20 system for requirements with a Rand value of up to R1 000 000 (all applicable taxes

included); and - the 90/10 system for requirements with a Rand value above R1 000 000 (all applicable taxes

included). 1.2 The value of this bid is estimated to exceed R1 000 000 (all applicable taxes included) and therefore

the 90/10 system shall be applicable.

1.3 Preference points for this bid shall be awarded for:

(a) Price; and (b) B-BBEE Status Level of Contribution.

1.3.1 The maximum points for this bid are allocated as follows:

POINTS

1.3.1.1 PRICE ……90…..

1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION ……10...

Total points for Price and B-BBEE must not exceed 100

1.4 Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification

Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.

1.5. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time

subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser.

2 2. DEFINITIONS

2..1 “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance

fund contributions and skills development levies;

2.2 “B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad

-Based Black Economic Empowerment Act;

2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity based

on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act;

2.4 “bid” means a written offer in a prescribed or stipulated form in response to an invitation by an

organ of state for the provision of services, works or goods, through price quotations, advertised competitive bidding processes or proposals;

2.5 “Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic

Empowerment Act, 2003 (Act No. 53 of 2003);

2.6 “comparative price” means the price after the factors of a non-firm price and all unconditional

discounts that can be utilized have been taken into consideration;

2.7 “consortium or joint venture” means an association of persons for the purpose of combining their

expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract;

2.8 “contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.9 “EME” means any enterprise with an annual total revenue of R5 million or less .

2.10 “Firm price” means the price that is only subject to adjustments in accordance with the actual increase or

decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract;

2.11 “functionality” means the measurement according to predetermined norms, as set out in the bid

documents, of a service or commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality, reliability, viability and durability of a service and the technical capacity and ability of a bidder;

2.12 “non-firm prices” means all prices other than “firm” prices;

2.13 “person” includes a juristic person;

2.14 “rand value” means the total estimated value of a contract in South African currency, calculated at

the time of bid invitations, and includes all applicable taxes and excise duties;

2.15 “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or employing,

another person to support such primary contractor in the execution of part of a project in terms of the contract;

2.16 “total revenue” bears the same meaning assigned to this expression in the Codes of Good

Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February

3

Ps Ps

2007; 2.17 “trust” means the arrangement through which the property of one person is made over or

bequeathed to a trustee to administer such property for the benefit of another person; and

2.18 “trustee” means any person, including the founder of a trust, to whom property is bequeathed in

order for such property to be administered for the benefit of another person.

3. ADJUDICATION USING A POINT SYSTEM

3.1 The bidder obtaining the highest number of total points will be awarded the contract.

3.2 Preference points shall be calculated after prices have been brought to a comparative basis taking into

account all factors of non-firm prices and all unconditional discounts;. 3.3 Points scored must be rounded off to the nearest 2 decimal places.

3.4 In the event that two or more bids have scored equal total points, the successful bid

must be the one scoring the highest number of preference points for B-BBEE.

3.5 However, when functionality is part of the evaluation process and two or more bids have scored equal points including equal preference points for B-BBEE, the successful bid must be the one scoring the highest score for functionality.

3.6 Should two or more bids be equal in all respects, the award shall be decided by the

drawing of lots.

4. POINTS AWARDED FOR PRICE

4.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

801

Pt P min

or 901

Pt P min

Where

P min P min

Ps = Points scored for comparative price of bid under consideration

Pt = Comparative price of bid under consideration

Pmin = Comparative price of lowest acceptable bid 5. Points awarded for B-BBEE Status Level of Contribution

5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must

be awarded to a bidder for attaining the B-BBEE status level of contribution in accordance with the table below:

4

B-BBEE Status Level of Contributor

Number of points

(90/10 system)

Number of points

(80/20 system)

1

10

20

2

9

18

3

8

16

4

5

12

5

4

8

6

3

6

7

2

4

8

1

2

Non-compliant contributor

0

0

5.2 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an Accounting Officer as contemplated in the CCA or a Verification Agency accredited by SANAS or a

Registered Auditor. Registered auditors do not need to meet the prerequisite for IRBA’s approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates.

5.3 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate or

a certified copy thereof, substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS.

5.4 A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal entity,

provided that the entity submits their B-BBEE status level certificate. 5.5 A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated

entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is prepared for every separate bid.

5.6 Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in

terms of the specialized scorecard contained in the B-BBEE Codes of Good Practice. 5.7 A person will not be awarded points for B-BBEE status level if it is indicated in the bid documents that

such a bidder intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a bidder qualifies for, unless the intended subcontractor is an EME that has the capability and ability to execute the sub-contract.

5.8 A person awarded a contract may not sub-contract more than 25% of the value of the contract to any other

enterprise that does not have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an EME that has the capability and ability to execute the sub-contract.

5

6. BID DECLARATION 6.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following:

7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2 AND 5.1

7.1 B-BBEE Status Level of Contribution: ……………… = …………… (Maximum of 10 points)

(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in

paragraph 5.1 and must be substantiated by means of a B-BBEE certificate issued by a

Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an

Accounting Officer as contemplated in the CCA).

8 SUB-CONTRACTING

8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable)

8.1.1 If yes, indicate:

(i) what percentage of the contract will be subcontracted? ............……………….…%

(ii) the name of the sub-contractor? …………………………………………………………..

(iii) the B-BBEE status level of the sub-contractor? ……………..

(iv) whether the sub-contractor is an EME? YES / NO (delete which is not applicable) 9 DECLARATION WITH REGARD TO COMPANY/FIRM

9.1 Name of company/firm .............................................................................................. :

9.2 VAT registration number :.............................................................................................

9.3 Company registration number …………………………………………………………………….

:

9.4 TYPE OF COMPANY/ FIRM Partnership/Joint Venture / Consortium

One person business/sole propriety

Close corporation

Company

(Pty) Limited [TICK APPLICABLE BOX]

9.5 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES

………….. ..................................................................................................................................................

……………… .............................................................................................................................................

9.6 COMPANY CLASSIFICATION

Manufacturer

Supplier

Professional service provider

Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX]

6 9.7 Total number of years the company/firm has been in business? ……………………………………

9.8 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify

that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 7 of the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we acknowledge that:

(i) The information furnished is true and correct;

(ii) The preference points claimed are in accordance with the General Conditions as

indicated in paragraph 1 of this form.

(iii) In the event of a contract being awarded as a result of points claimed as shown in paragraph 7, the contractor may be required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct;

(iv) If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent

basis or any of the conditions of contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have –

(a) disqualify the person from the bidding process;

(b) recover costs, losses or damages it has incurred or suffered as a result of that

person’s conduct;

(c) cancel the contract and claim any damages which it has suffered as a result of

having to make less favourable arrangements due to such cancellation;

(d) restrict the bidder or contractor, its shareholders and directors, or only the shareholders and directors who acted on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; and

(e) forward the matter for criminal prosecution

WITNESSES:

1. ………………………………………

…………………………………… SIGNATURE(S) OF BIDDER(S)

2. ………………………………………

DATE:………………………………..

ADDRESS:…………………………..

….………………………………

……………………………………….

SBD 8

5/2/2/1 CON 0069 (2016/2017)

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT

PRACTICES

1 This Standard Bidding Document must form part of all bids invited.

2 It serves as a declaration to be used by institutions in ensuring that when goods

and services are being procured, all reasonable steps are taken to combat the

abuse of the supply chain management system.

3 The bid of any bidder may be disregarded if that bidder, or any of its directors

have-

a. abused the institution’s supply chain management system;

b. committed fraud or any other improper conduct in relation to such system; or

c. failed to perform on any previous contract.

4 In order to give effect to the above, the following questionnaire must be

completed and submitted with the bid.

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of

Restricted Suppliers as companies or persons prohibited from doing business with the

public sector?

(Companies or persons who are listed on this Database were informed in writing

of this restriction by the Accounting Officer/Authority of the institution that

imposed the restriction after the audi alteram partem rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s

website(www.treasury.gov.za) and can be accessed by clicking on its link at the

bottom of the home page.

Yes

No


4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in

terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12

of 2004)?

The Register for Tender Defaulters can be accessed on the National Treasury’s

website (www.treasury.gov.za) by clicking on its link at the bottom of the home

page.

Yes

No


4.3 Was the bidder or any of its directors convicted by a court of law (including a court

outside of the Republic of South Africa) for fraud or corruption during the past five

years?

Yes

No


4.4 Was any contract between the bidder and any organ of state terminated during the past

five years on account of failure to perform on or comply with the contract?

Yes

No


http://www.treasury.gov.za/

http://www.treasury.gov.za/

SBD 8

CERTIFICATION

I, THE UNDERSIGNED (FULL NAME)…………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION

FORM IS TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT,

ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION

PROVE TO BE FALSE.

………………………………………... …………………………..

Signature Date

………………………………………. …………………………..

Position Name of Bidder Js365bW

SBD 9 5/2/2/1 CON 0069 (2016/2017)

1

CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 This Standard Bidding Document (SBD) must form part of all bids¹ invited.

2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an

agreement between, or concerted practice by, firms, or a decision by an association of

firms, if it is between parties in a horizontal relationship and if it involves collusive

bidding (or bid rigging).² Collusive bidding is a pe se prohibition meaning that it cannot

be justified under any grounds.

3 Treasury Regulation 16A9 prescribes that accounting officers and accounting authorities must take all reasonable steps to prevent abuse of the supply chain management system and authorizes accounting officers and accounting authorities to:

a. disregard the bid of any bidder if that bidder, or any of its directors have abused

the institution’s supply chain management system and or committed fraud or any other improper conduct in relation to such system.

b. cancel a contract awarded to a supplier of goods and services if the supplier

committed any corrupt or fraudulent act during the bidding process or the execution of that contract.

4 This SBD serves as a certificate of declaration that would be used by institutions to

ensure that, when bids are considered, reasonable steps are taken to prevent any form

of bid-rigging.

5 In order to give effect to the above, the attached Certificate of Bid Determination (SBD 9)

must be completed and submitted with the bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or

lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services through a bidding process. Bid

rigging is, therefore, an agreement between competitors not to compete.

SBD 9 5/2/2/1 CON 0069 (2016/2017)

2

SBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________

(Bid Number and Description)

in response to the invitation for the bid made by:

______________________________________________________________________________

(Name of Institution)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:_______________________________________________________that:

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

2. I understand that the accompanying bid will be disqualified if this Certificate is found not

to be true and complete in every respect;

3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying

bid, on behalf of the bidder;

4. Each person whose signature appears on the accompanying bid has been authorized by

the bidder to determine the terms of, and to sign the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the

word “competitor” shall include any individual or organization, other than the bidder,

whether or not affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;

(b) could potentially submit a bid in response to this bid invitation, based on

their qualifications, abilities or experience; and

(c) provides the same goods and services as the bidder and/or is in the same

line of business as the bidder

SBD 9

SBD 9 5/2/2/1 CON 0069 (2016/2017)

3

6. The bidder has arrived at the accompanying bid independently from, and without

consultation, communication, agreement or arrangement with any competitor. However

communication between partners in a joint venture or consortium³ will not be construed

as collusive bidding.

7. In particular, without limiting the generality of paragraphs 6 above, there has been no

consultation, communication, agreement or arrangement with any competitor regarding:

(a) prices;

(b) geographical area where product or service will be rendered (market

allocation)

(c) methods, factors or formulas used to calculate prices;

(d) the intention or decision to submit or not to submit, a bid;

(e) the submission of a bid which does not meet the specifications and

conditions of the bid; or

(f) bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or

arrangements with any competitor regarding the quality, quantity, specifications and

conditions or delivery particulars of the products or services to which this bid invitation

relates.

9. The terms of the accompanying bid have not been, and will not be, disclosed by the

bidder, directly or indirectly, to any competitor, prior to the date and time of the official

bid opening or of the awarding of the contract.

³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract.

SBD 9 5/2/2/1 CON 0069 (2016/2017)

4

SBD 9

10. I am aware that, in addition and without prejudice to any other remedy provided to

combat any restrictive practices related to bids and contracts, bids that are suspicious

will be reported to the Competition Commission for investigation and possible imposition

of administrative penalties in terms of section 59 of the Competition Act No 89 of 1998

and or may be reported to the National Prosecuting Authority (NPA) for criminal

investigation and or may be restricted from conducting business with the public sector

for a period not exceeding ten (10) years in terms of the Prevention and Combating of

Corrupt Activities Act No 12 of 2004 or any other applicable legislation.

………………………………………………… …………………………………

Signature Date

…………………………………………………. …………………………………

Position Name of Bidder

Js914w 2

PA-15.1: RESOLUTION OF BOARD OF DIRECTORS

RESOLUTION of a meeting of the Board of *Directors / Members / Partners of:

______________________________________________________________________________________

______________________________________________________________________________________ (legally correct full name and registration number, if applicable, of the Enterprise)

Held at ______________________________________________ (place)

on __________________________________________________ (date) RESOLVED that:

1 The Enterprise submits a Tender to the Department of Rural Development and Land Reform in respect of the following project: ___________________________________________________________________________________

___________________________________________________________________________________ (project description as per Tender Document)

Tender Number: ___________________________________________(Tender Number as per Tender Document)

2 *Mr/Mrs/Ms: __________________________________________________________________________

in *his/her Capacity as: ________________________________________________(Position in the Enterprise) and who will sign as follows: ___________________________________________________________

be, and is hereby, authorised to sign the Tender, and any and all other documents and/or correspondence in connection with and relating to the Tender, as well as to sign any Contract, and any and all documentation, resulting from the award of the Tender to the Enterprise mentioned above.

Name Capacity Signature

1

2

3

4

5

6

7

8

Note: ENTERPRISE STAMP

1. * Delete which is not applicable.

2. NB. This resolution must be signed by all the Directors / Members / Partners of the Tendering Enterprise.

3. Should the number of Directors / Members / Partners exceed the space available above, additional names capacity and signatures must be supplied on a separate page.

Page 1 of 1

PA-15.2: RESOLUTION OF BOARD OF DIRECTORS TO ENTER INTO CONSORTIA OR JOINT VENTURES RESOLUTION of a meeting of the Board of *Directors / Members / Partners of: _________________________________________________________________________________ _________________________________________________________________________________

(Legally correct full name and registration number, if applicable, of the Enterprise)

held at ______________________________________________ (place)

on __________________________________________________ (date) RESOLVED that: 1 The Enterprise submits a Tender, in consortium/joint venture with the following Enterprises:

_________________________________________________________________________________________ (List all the legally correct full names and registration numbers, if applicable, of the Enterprises forming the consortium/joint venture)

to the Department of Rural Development and Land Reform in respect of the following project: ________________________________________________________________________________

________________________________________________________________________________ (Project description as per Tender Document)

Tender Number: ______________________________________(Tender Number as per Tender Document)

2 *Mr/Mrs/Ms: _________________________________________________________________________

in *his/her Capacity as: _________________________________________(Position in the Enterprise) and who will sign as follows:

________________________________________________________ be, and is hereby, authorised to sign a consortium/joint venture agreement with the parties listed under item 1 above, and any and all other documents and/or correspondence in connection with and relating to the consortium/joint venture, in respect of the project described under item 1 above.

3 The Enterprise accept joint and several liability with the parties listed under item 1 above for the due

fulfilment of the obligations of the joint venture deriving from, and in any way connected with, the Contract to be entered into with the Department in respect of the project described under item 1 above.

4 The Enterprise choose as its domicilium citandi et executandi for all purposes arising from this joint venture agreement and the Contract with the Department in respect of the project under item 1 above:

Physical address: _______________________________

_______________________________ _______________________________ _________________________ (code)

Postal Address: _______________________________

_______________________________

_______________________________ _________________________ (code)

Telephone number: _________________________ (code) Fax number: _________________________ (code)


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Note: ENTERPRISE STAMP

1. * Delete which is not applicable.

2. NB. This resolution must be signed by all the Directors / Members / Partners of the Tendering Enterprise.

3. Should the number of Directors / Members / Partners exceed the space available above, additional names, capacity and signatures must be supplied on a separate page.

PA-15.3: SPECIAL RESOLUTION OF CONSORTIA OR JOINT VENTURES RESOLUTION of a meeting of the duly authorised representatives of the following legal entities who have entered into a consortium/joint venture to jointly tender for the project mentioned below: (legally

correct full names and registration numbers, if applicable, of the Enterprises forming a consortium/joint venture)

1 _______________________________________________________________________________

_____________________________________________________________________________

2 ____________________________________________________________________________

_____________________________________________________________________________ _____________________________________________________________________________

_____________________________________________________________________________

4 _____________________________________________________________________________

_____________________________________________________________________________

5 _____________________________________________________________________________

_____________________________________________________________________________

6 _____________________________________________________________________________

_____________________________________________________________________________

7 _____________________________________________________________________________

_____________________________________________________________________________

8 _____________________________________________________________________________

_____________________________________________________________________________

Held at ______________________________________________ (place) on __________________________________________________ (date) RESOLVED that: A. The above-mentioned Enterprises submit a tender in consortium/joint venture to the Department

of Rural Development and Land Reform in respect of the following project: ______________________________________________________________________________ ______________________________________________________________________________ (Project description as per Tender Document)

Tender Number: ___________________________________________(Tender Number as per Tender

Document)

Page 1 of 3 PA-15.3 Version: 1.0

B. Mr/Mrs/Ms: _________________________________________________________________________ in *his/her Capacity as: _______________________________________________(Position in the

Enterprise)

and who will sign as follows: ___________________________________________________________ be, and is hereby, authorised to sign the tender, and any and all other documents and/or correspondence in connection with and relating to the tender, as well as to sign any Contract, and any and all documentation, resulting from the award of the tender to the Enterprises in consortium/joint venture mentioned above.

C. The Enterprises constituting the consortium/joint venture, notwithstanding its composition, shall conduct all business under the name and style of:

_____________________________________________________________________________

D. The Enterprises to the consortium/joint venture accept joint and several liability for the due

fulfilment of the obligations of the consortium/joint venture deriving from, and in any way connected with, the Contract entered into with the Department in respect of the project described under item A above.

E. Any of the Enterprises to the consortium/joint venture intending to terminate the consortium/joint

venture agreement, for whatever reason, shall give the Department 30 days written notice of such intention. Notwithstanding such decision to terminate, the Enterprises shall remain jointly and severally liable to the Department for the due fulfilment of the obligations of the consortium/joint venture as mentioned under item D above.

F. No Enterprise to the consortium/joint venture shall, without the prior written consent of the other

Enterprises to the consortium/joint venture and of the Department, cede any of its rights or assign any of its obligations under the consortium/joint venture agreement in relation to the Contract with the Department referred to herein.

G. The Enterprises choose as the domicilium citandi et executandi of the consortium/joint venture for

all purposes arising from the consortium/joint venture agreement and the Contract with the Department in respect of the project under item A above:

Physical address: _______________________________ _______________________________

_______________________________ _________________________ (code) Postal Address: _______________________________ _______________________________

_______________________________ _________________________ (code) Telephone number: _________________________ (code) Fax number: ______________________________ (code)

Page 2 of 3

PA-15.3 Version: 1.0


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Note:

1 * Delete which is not applicable. 2. NB: This resolution must be signed by all the Duly Authorised Representatives of the Legal Entities to the consortium/joint

venture submitting this tender. 3. Should the number of Duly Authorised Representatives of the Legal Entities joining forces in this tender exceed the space

available above, additional names, capacity and signatures must be supplied on a separate page. 4. Resolutions, duly completed and signed, from the separate Enterprises who participate in this consortium/joint venture

must be attached to the Special Resolution.

P

SUPPLIER MAINTENANCE:

Head Office Only

Captured By:

Date Captured:

Authorised By:

Date Authorised:

Supplier code:

W1423

BAS PMIS LOGIS WCS

CONTRACTOR

CONSULTANT

Enquiries. :

Tel. No.:

OFFICE: …………………………… The Director General: DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM

I/We hereby request and authorise you to pay any amounts, which may accrue to me/us to the credit of my/our

account with the mentioned bank.

I/we understand that the credit transfers hereby authorised will be processed by computer through a system known as "ACB -

Electronic Fund Transfer Service", and I/we understand that not additional advice of payment will be provided by my/our bank,

but that the details of each payment will be printed on my/our bank statement or any accompanying voucher. (This does not

apply where it is not customary for banks to furnish bank statements).

I/we understand that the Department will supply a payment advice in the normal way, and that it will indicate the date on

which the funds will be made available on my/our account.

This authority may be cancelled by me/us by giving thirty days notice by prepaid registered post.

Please ensure

information is validate as per required bank screens .

I/We understand that bank details provided should be exactly as per the records held by the bank.

I/We understand that the Department will not assume responsibiliy for any delayed payments, as a result of incorrect

information supplied.

Company / Personal Details

Registered Name

Trading Name

Tax Number

VAT Number

Title:

Initials:

First Name:

Surname:

Address Detail

Payment Address

( Compulsory if Supplier )

Postal Code

New Detail

New Supplier information Update Supplier information

Supplier Type: Individual Department Partnership

Company Trust

CC Other ( Specify )

Department Number

PW142

/ /

Supplier Account Details 3

(Please note that this account MUST be in the name of the supplier. No 3rd party payments allowed).

Account Name

Account Number

Branch Name

Branch Number

Account Type Cheque Account

Savings Account

Transmission Account

Bond Account

Other (Please Specify)

ID Number

Passport Number

Company Registration Number

*CC Registration

*Please include CC/CK where applicable

Practise Number

Bank stamp

It is hereby confirmed that this details have been verified

against the following screens

ABSA-CIF screen

FNB-Hogans system on the CIS4

STD Bank-Look-up-screen

Nedbank- Banking Platform under the Client Details Tab

Business

Home

Fax

Cell

Email Address

Contact Person:

Contact Details

Area Code Telephone Number Extension

Area Code Telephone Number Extension

Area Code Fax Number

Cell Code Cell Number

Supplier Signature Regional Office Sender

Print Name Print Name

Rank

/ / / /

Date (dd/mm/yyyy) Date (dd/mm/yyyy)

NB: All relevant fields must be completed

PLEASE RETURN TO THE RELEVANT REGIONAL

OFFICE THAT SUPPLIED THE FORM OR

THE FOLLOWING ADDRESS:

Engineering and Construction ContractThis contract should be used for the appointment of a contractor for

engineering and construction work, including any level ofdesign responsibility

An NEC document

June 2005

OGC endorsement of NEC3

OGC advises public sector procurers that the form of contract used has to be selectedaccording to the objectives of the project, aiming to satisfy the

Achieving Excellence in Construction (AEC) principles.

This edition of the NEC (NEC3) complies fully with the AEC principles. OGC recommendsthe use of NEC3 by public sector construction procurers on their construction projects.

NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary ofthe Institution of Civil Engineers (ICE), the owner and developer of the NEC.

The NEC is a family of standard contracts, each of which has thesecharacteristics:

. Its use stimulates good management of the relationship between the twoparties to the contract and, hence, of the work included in the contract.

. It can be used in a wide variety of commercial situations, for a widevariety of types of work and in any location.

. It is a clear and simple document – using language and a structurewhich are straightforward and easily understood.

NEC3 Engineering and Construction Contract is one of the NEC family and isconsistent with all other NEC3 documents. Also available are the Engineeringand Construction Contract Guidance Notes, Flow Charts and Options A, B, C,D, E and F.

ISBN (complete box set) 0 7277 3382 6ISBN (this document) 0 7277 3359 1ISBN (Engineering and Construction Contract Guidance Notes) 0 7277 3366 4ISBN (Engineering and Construction Contract Flow Charts) 0 7277 3367 2ISBN (Option A: Priced contract with activity schedule) 0 7277 3360 5ISBN (Option B: Priced contract with bill of quantities) 0 7277 3361 3ISBN (Option C: Target contract with activity schedule) 0 7277 3362 1ISBN (Option D: Target contract with bill of quantities) 0 7277 3363 XISBN (Option E: Cost reimbursable contract) 0 7277 3364 8ISBN (Option F: Management contract) 0 7277 3365 6

Consultative edition 1991First edition 1993Second edition 1995Reprinted November 1995 with amendmentsReprinted with corrections May 1998Third edition June 2005

Cover photo, Golden Jubilee Bridge, courtesy of City of Westminster

9 8 7 6 5 4 3 2 1

British Library Cataloguing in Publication Data for this publication is availablefrom the British Library.

# Copyright nec 2005

All rights, including translation, reserved. The owner of this document mayreproduce the Contract Data for the purpose of obtaining tenders, awardingand administering contracts. Except as permitted by the Copyright, Designsand Patents Act 1988, no part of this publication may be otherwisereproduced, stored in a retrieval system or transmitted in any form or by anymeans, electronic, mechanical, photocopying, recording or otherwise, withoutthe prior written permission of the NEC Director, NEC, Thomas Telford Ltd,1 Heron Quay, London E14 4JD.

Typeset by Academic + Technical, Bristol

Printed and bound in Great Britain by Bell & Bain Limited, Glasgow, UK

CONTENTS

Acknowledgements iv

Schedule of Options 1

Core clauses 1 General 32 The Contractor’s main responsibilities 73 Time 94 Testing and Defects 115 Payment 136 Compensation events 157 Title 208 Risks and insurance 219 Termination 24

Main Option clauses A Priced contract with activity schedule 27B Priced contract with bill of quantities 29C Target contract with activity schedule 31D Target contract with bill of quantities 34E Cost reimbursable contract 38F Management contract 40

Dispute resolution W Option W1 42Option W2 45

Secondary Option clauses X1 Price adjustment for inflation 48X2 Changes in the law 49X3 Multiple currencies 49X4 Parent company guarantee 49X5 Sectional Completion 49X6 Bonus for early Completion 50X7 Delay damages 50X12 Partnering 50X13 Performance bond 52X14 Advanced payment to the Contractor 52X15 Limitation of the Contractor’s liability for his design to reasonable

skill and care52

X16 Retention 53X17 Low performance damages 53X18 Limitation of liability 53X20 Key Performance Indicators 54

Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996 55Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 55

Z Additional conditions of contract 55

Note Options X8 to X11, X19 and Y(UK)1 are not used

Schedule of CostComponents

56

Shorter Schedule of CostComponents

59

Contract Data 61

Index 74

ACKNOWLEDGEMENTS

The NEC first edition was produced by the Institution of Civil Engineersthrough its NEC Working Group.

The original NEC was designed and drafted by Dr Martin Barnes then ofCoopers and Lybrand with the assistance of Professor J. G. Perry then of theUniversity of Birmingham, T. W. Weddell then of Travers Morgan Management,T. H. Nicholson, Consultant to the Institution of Civil Engineers, A. Normanthen of the University of Manchester Institute of Science and Technology andP. A. Baird, then Corporate Contracts Consultant, Eskom, South Africa.

The second edition of the NEC documents for engineering and constructioncontracts was produced by the Institution of Civil Engineers through its NECPanel.

The third edition of the NEC Engineering and Construction Contract wasproduced by the Institution of Civil Engineers through its NEC Panel. TheFlow Charts were produced by John S. Gillespie with assistance from TomNicholson.

The members of the NEC Panel are:

P. Higgins, BSc, CEng, FICE, FCIArb (Chairman)P. A. Baird, BSc, CEng, FICE, M(SA)ICE, MAPMM. Barnes, BSc(Eng), PhD, FREng, FICE, FCIOB, CCMI, ACIArb, MBCS,

FInstCES, FAPMA. J. Bates, FRICS, MInstCESA. J. M. Blackler, BA, LLB(Cantab), MCIArbP. T. Cousins, BEng(Tech), DipArb, CEng, MICE, MCIArb, MCMIL. T. Eames, BSc, FRICS, FCIOBF. Forward, BA(Hons), DipArch, MSc(Const Law), RIBA, FCIArbProfessor J. G. Perry, MEng, PhD, CEng, FICE, MAPMN. C. Shaw, FCIPS, CEng, MIMechET. W. Weddell, BSc, CEng, DIC, FICE, FIStructE, ACIArb

NEC Consultant:

R. A. Gerrard, BSc(Hons), MRICS, FCIArb, FInstCES

Secretariat:

A. Cole, LLB, LLM, BLJ. M. Hawkins, BA(Hons), MScF. N. Vernon (Technical Adviser), BSc, CEng, MICE

The Institution of Civil Engineers acknowledges the help in preparing the thirdedition given by many other people, in particular, by:

J. C. Broome, BEngA. Else, BSc, CEng, FICEC. Flook, Esq.R. Lewendon, FICE, MIHT, MCIArb, MAPMT. H. Nicholson, BSc, FICER. Patterson, BA, MA(Cantab), MBA, CEng, MICEC. Reed, CEng, MA, MSc, FICED. Weeks, FRICSS. Zarka, FRICS

SCHEDULE OF OPTIONS

The strategy for choosing the form of contract starts with a decision betweensix main Options, one of which must be chosen.

Option A Priced contract with activity schedule

Option B Priced contract with bill of quantities

Option C Target contract with activity schedule

Option D Target contract with bill of quantities

Option E Cost reimbursable contract

Option F Management contract

One of the following dispute resolution Options must be selected to completethe chosen main Option.

Option W1 Dispute resolution procedure (used unless the United Kingdom HousingGrants, Construction and Regeneration Act 1996 applies).

Option W2 Dispute resolution procedure (used in the United Kingdom when the HousingGrants, Construction and Regeneration Act 1996 applies).

The following secondary Options should then be considered. It is not necessaryto use any of them. Any combination other than those stated may be used.

Option X1 Price adjustment for inflation (used only with Options A, B, C and D)

Option X2 Changes in the law

Option X3 Multiple currencies (used only with Options A and B)

Option X4 Parent company guarantee

Option X5 Sectional Completion

Option X6 Bonus for early Completion

Option X7 Delay damages

Option X12 Partnering

Option X13 Performance bond

Option X14 Advanced payment to the Contractor

Option X15 Limitation of the Contractor’s liability for his design to reasonable skill andcare

Option X16 Retention (not used with Option F)

Option X17 Low performance damages

Option X18 Limitation of liability

Option X20 Key Performance Indicators (not used with Option X12)

The following Options dealing with national legislation should be included ifrequired.

Option Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996

Option Y(UK)3 The Contracts (Rights of Third Parties) Act 1999

Option Z Additional conditions of contract

Note Options X8 to X11, X19 and Y(UK)1 are not used.

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Engineering and Construction Contract

CORE CLAUSES

1 General

Actions 1010.1 The Employer, the Contractor, the Project Manager and the Supervisor shall

act as stated in this contract and in a spirit of mutual trust and co-operation.

Identified and definedterms

1111.1 In these conditions of contract, terms identified in the Contract Data are in

italics and defined terms have capital initials.

11.2 (1) The Accepted Programme is the programme identified in the ContractData or is the latest programme accepted by the Project Manager. The latestprogramme accepted by the Project Manager supersedes previous AcceptedProgrammes.

(2) Completion is when the Contractor has

. done all the work which the Works Information states he is to do by theCompletion Date and

. corrected notified Defects which would have prevented the Employer fromusing the works and Others from doing their work.

If the work which the Contractor is to do by the Completion Date is not statedin the Works Information, Completion is when the Contractor has done all thework necessary for the Employer to use the works and for Others to do theirwork.

(3) The Completion Date is the completion date unless later changed inaccordance with this contract.

(4) The Contract Date is the date when this contract came into existence.

(5) A Defect is

. a part of the works which is not in accordance with the Works Informationor

. a part of the works designed by the Contractor which is not in accordancewith the applicable law or the Contractor’s design which the ProjectManager has accepted.

(6) The Defects Certificate is either a list of Defects that the Supervisor hasnotified before the defects date which the Contractor has not corrected or, ifthere are no such Defects, a statement that there are none.

(7) Equipment is items provided by the Contractor and used by him to Providethe Works and which the Works Information does not require him to include inthe works.

(8) The Fee is the sum of the amounts calculated by applying the subcon-tracted fee percentage to the Defined Cost of subcontracted work and thedirect fee percentage to the Defined Cost of other work.


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(9) A Key Date is the date by which work is to meet the Condition stated. TheKey Date is the key date stated in the Contract Data and the Condition is thecondition stated in the Contract Data unless later changed in accordance withthis contract.

(10) Others are people or organisations who are not the Employer, the ProjectManager, the Supervisor, the Adjudicator, the Contractor or any employee,Subcontractor or supplier of the Contractor.

(11) The Parties are the Employer and the Contractor.

(12) Plant and Materials are items intended to be included in the works.

(13) To Provide the Works means to do the work necessary to complete theworks in accordance with this contract and all incidental work, services andactions which this contract requires.

(14) The Risk Register is a register of the risks which are listed in theContract Data and the risks which the Project Manager or the Contractor hasnotified as an early warning matter. It includes a description of the risk and adescription of the actions which are to be taken to avoid or reduce the risk.

(15) The Site is the area within the boundaries of the site and the volumesabove and below it which are affected by work included in this contract.

(16) Site Information is information which

. describes the Site and its surroundings and

. is in the documents which the Contract Data states it is in.

(17) A Subcontractor is a person or organisation who has a contract with theContractor to

. construct or install part of the works,

. provide a service necessary to Provide the Works or

. supply Plant and Materials which the person or organisation has whollyor partly designed specifically for the works.

(18) The Working Areas are those parts of the working areas which are

. necessary for Providing the Works and

. used only for work in this contract

unless later changed in accordance with this contract.

(19) Works Information is information which either

. specifies and describes the works or

. states any constraints on how the Contractor Provides the Works

and is either

. in the documents which the Contract Data states it is in or

. in an instruction given in accordance with this contract.

Interpretation and the law 1212.1 In this contract, except where the context shows otherwise, words in the

singular also mean in the plural and the other way round and words in themasculine also mean in the feminine and neuter.

12.2 This contract is governed by the law of the contract.

12.3 No change to this contract, unless provided for by the conditions of contract,has effect unless it has been agreed, confirmed in writing and signed by theParties.

12.4 This contract is the entire agreement between the Parties.


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Communications 1313.1 Each instruction, certificate, submission, proposal, record, acceptance,

notification, reply and other communication which this contract requires iscommunicated in a form which can be read, copied and recorded. Writing is inthe language of this contract.

13.2 A communication has effect when it is received at the last address notified bythe recipient for receiving communications or, if none is notified, at theaddress of the recipient stated in the Contract Data.

13.3 If this contract requires the Project Manager, the Supervisor or the Contractorto reply to a communication, unless otherwise stated in this contract, hereplies within the period for reply.

13.4 The Project Manager replies to a communication submitted or resubmitted tohim by the Contractor for acceptance. If his reply is not acceptance, theProject Manager states his reasons and the Contractor resubmits the commu-nication within the period for reply taking account of these reasons. A reasonfor withholding acceptance is that more information is needed in order toassess the Contractor’s submission fully.

13.5 The Project Manager may extend the period for reply to a communication if theProject Manager and the Contractor agree to the extension before the reply isdue. The Project Manager notifies the Contractor of the extension which hasbeen agreed.

13.6 The Project Manager issues his certificates to the Employer and the Contrac-tor. The Supervisor issues his certificates to the Project Manager and theContractor.

13.7 A notification which this contract requires is communicated separately fromother communications.

13.8 The Project Manager may withhold acceptance of a submission by theContractor. Withholding acceptance for a reason stated in this contract is nota compensation event.

The Project Manager andthe Supervisor

1414.1 The Project Manager’s or the Supervisor’s acceptance of a communication

from the Contractor or of his work does not change the Contractor’s responsi-bility to Provide the Works or his liability for his design.

14.2 The Project Manager and the Supervisor, after notifying the Contractor, maydelegate any of their actions and may cancel any delegation. A reference toan action of the Project Manager or the Supervisor in this contract includes anaction by his delegate.

14.3 The Project Manager may give an instruction to the Contractor which changesthe Works Information or a Key Date.

14.4 The Employer may replace the Project Manager or the Supervisor after he hasnotified the Contractor of the name of the replacement.

Adding to the WorkingAreas

1515.1 The Contractor may submit a proposal for adding an area to the Working

Areas to the Project Manager for acceptance. A reason for not accepting isthat the proposed area is either not necessary for Providing the Works or usedfor work not in this contract.

Early warning 1616.1 The Contractor and the Project Manager give an early warning by notifying the

other as soon as either becomes aware of any matter which could

. increase the total of the Prices,

. delay Completion,

. delay meeting a Key Date or

. impair the performance of the works in use.

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The Contractor may give an early warning by notifying the Project Manager ofany other matter which could increase his total cost. The Project Managerenters early warning matters in the Risk Register. Early warning of a matterfor which a compensation event has previously been notified is not required.

16.2 Either the Project Manager or the Contractor may instruct the other to attend arisk reduction meeting. Each may instruct other people to attend if the otheragrees.

16.3 At a risk reduction meeting, those who attend co-operate in

. making and considering proposals for how the effect of the registeredrisks can be avoided or reduced,

. seeking solutions that will bring advantage to all those who will beaffected,

. deciding on the actions which will be taken and who, in accordance withthis contract, will take them and

. deciding which risks have now been avoided or have passed and can beremoved from the Risk Register.

16.4 The Project Manager revises the Risk Register to record the decisions made ateach risk reduction meeting and issues the revised Risk Register to theContractor. If a decision needs a change to the Works Information, the ProjectManager instructs the change at the same time as he issues the revised RiskRegister.

Ambiguities andinconsistencies

1717.1 The Project Manager or the Contractor notifies the other as soon as either

becomes aware of an ambiguity or inconsistency in or between the documentswhich are part of this contract. The Project Manager gives an instructionresolving the ambiguity or inconsistency.

Illegal and impossiblerequirements

1818.1 The Contractor notifies the Project Manager as soon as he considers that the

Works Information requires him to do anything which is illegal or impossible.If the Project Manager agrees, he gives an instruction to change the WorksInformation appropriately.

Prevention 1919.1 If an event occurs which

. stops the Contractor completing the works or

. stops the Contractor completing the works by the date shown on theAccepted Programme,

and which

. neither Party could prevent and

. an experienced contractor would have judged at the Contract Date tohave such a small chance of occurring that it would have been unreason-able for him to have allowed for it,

the Project Manager gives an instruction to the Contractor stating how he is todeal with the event.



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2 The Contractor’s main responsibilities

Providing the Works 2020.1 The Contractor Provides the Works in accordance with the Works Information.

The Contractor’s design 2121.1 The Contractor designs the parts of the works which the Works Information

states he is to design.

21.2 The Contractor submits the particulars of his design as the Works Informationrequires to the Project Manager for acceptance. A reason for not acceptingthe Contractor’s design is that it does not comply with either the WorksInformation or the applicable law.

The Contractor does not proceed with the relevant work until the ProjectManager has accepted his design.

21.3 The Contractor may submit his design for acceptance in parts if the design ofeach part can be assessed fully.

Using the Contractor’sdesign

2222.1 The Employer may use and copy the Contractor’s design for any purpose

connected with construction, use, alteration or demolition of the works unlessotherwise stated in the Works Information and for other purposes as stated inthe Works Information.

Design of Equipment 2323.1 The Contractor submits particulars of the design of an item of Equipment to

the Project Manager for acceptance if the Project Manager instructs him to. Areason for not accepting is that the design of the item will not allow the Con-tractor to Provide the Works in accordance with

. the Works Information,

. the Contractor’s design which the Project Manager has accepted or

. the applicable law.

People 2424.1 The Contractor either employs each key person named to do the job stated in

the Contract Data or employs a replacement person who has been acceptedby the Project Manager. The Contractor submits the name, relevant qualifica-tions and experience of a proposed replacement person to the ProjectManager for acceptance. A reason for not accepting the person is that hisrelevant qualifications and experience are not as good as those of the personwho is to be replaced.

24.2 The Project Manager may, having stated his reasons, instruct the Contractorto remove an employee. The Contractor then arranges that, after one day, theemployee has no further connection with the work included in this contract.

Working with the Employerand Others

2525.1 The Contractor co-operates with Others in obtaining and providing information

which they need in connection with the works. He co-operates with Others andshares the Working Areas with them as stated in the Works Information.

25.2 The Employer and the Contractor provide services and other things as statedin the Works Information. Any cost incurred by the Employer as a result of theContractor not providing the services and other things which he is to provide isassessed by the Project Manager and paid by the Contractor.

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25.3 If the Project Manager decides that the work does not meet the Conditionstated for a Key Date by the date stated and, as a result, the Employer incursadditional cost either

. in carrying out work or

. by paying an additional amount to Others in carrying out work

on the same project, the additional cost which the Employer has paid or willincur is paid by the Contractor. The Project Manager assesses the additionalcost within four weeks of the date when the Condition for the Key Date is met.The Employer’s right to recover the additional cost is his only right in thesecircumstances.

Subcontracting 2626.1 If the Contractor subcontracts work, he is responsible for Providing the Works

as if he had not subcontracted. This contract applies as if a Subcontractor’semployees and equipment were the Contractor’s.

26.2 The Contractor submits the name of each proposed Subcontractor to theProject Manager for acceptance. A reason for not accepting the Subcontractoris that his appointment will not allow the Contractor to Provide the Works. TheContractor does not appoint a proposed Subcontractor until the ProjectManager has accepted him.

26.3 The Contractor submits the proposed conditions of contract for each subcon-tract to the Project Manager for acceptance unless

. an NEC contract is proposed or

. the Project Manager has agreed that no submission is required.

The Contractor does not appoint a Subcontractor on the proposed subcontractconditions submitted until the Project Manager has accepted them. A reasonfor not accepting them is that

. they will not allow the Contractor to Provide the Works or

. they do not include a statement that the parties to the subcontract shallact in a spirit of mutual trust and co-operation.

Other responsibilities 2727.1 The Contractor obtains approval of his design from Others where necessary.

27.2 The Contractor provides access to work being done and to Plant and Materialsbeing stored for this contract for

. the Project Manager,

. the Supervisor and

. Others notified to him by the Project Manager.

27.3 The Contractor obeys an instruction which is in accordance with this contractand is given to him by the Project Manager or the Supervisor.

27.4 The Contractor acts in accordance with the health and safety requirementsstated in the Works Information.



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3 Time

Starting, Completion andKey Dates

3030.1 The Contractor does not start work on the Site until the first access date and

does the work so that Completion is on or before the Completion Date.

30.2 The Project Manager decides the date of Completion. The Project Managercertifies Completion within one week of Completion.

30.3 The Contractor does the work so that the Condition stated for each Key Dateis met by the Key Date.

The programme 3131.1 If a programme is not identified in the Contract Data, the Contractor submits

a first programme to the Project Manager for acceptance within the periodstated in the Contract Data.

31.2 The Contractor shows on each programme which he submits for acceptance

. the starting date, access dates, Key Dates and Completion Date,

. planned Completion,

. the order and timing of the operations which the Contractor plans to doin order to Provide the Works,

. the order and timing of the work of the Employer and Others as lastagreed with them by the Contractor or, if not so agreed, as stated in theWorks Information,

. the dates when the Contractor plans to meet each Condition stated forthe Key Dates and to complete other work needed to allow the Employerand Others to do their work,

. provisions for

. float,

. time risk allowances,

. health and safety requirements and

. the procedures set out in this contract,

. the dates when, in order to Provide the Works in accordance with hisprogramme, the Contractor will need

. access to a part of the Site if later than its access date,

. acceptances,

. Plant and Materials and other things to be provided by the Employerand

. information from Others,

. for each operation, a statement of how the Contractor plans to do thework identifying the principal Equipment and other resources which heplans to use and

. other information which the Works Information requires the Contractor toshow on a programme submitted for acceptance.

31.3 Within two weeks of the Contractor submitting a programme to him foracceptance, the Project Manager either accepts the programme or notifies theContractor of his reasons for not accepting it. A reason for not accepting aprogramme is that

. the Contractor’s plans which it shows are not practicable,

. it does not show the information which this contract requires,

. it does not represent the Contractor’s plans realistically or

. it does not comply with the Works Information.

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Revising the programme 3232.1 The Contractor shows on each revised programme

. the actual progress achieved on each operation and its effect upon thetiming of the remaining work,

. the effects of implemented compensation events and of notified earlywarning matters,

. how the Contractor plans to deal with any delays and to correct notifiedDefects and

. any other changes which the Contractor proposes to make to theAccepted Programme.

32.2 The Contractor submits a revised programme to the Project Manager foracceptance

. within the period for reply after the Project Manager has instructed himto,

. when the Contractor chooses to and, in any case,

. at no longer interval than the interval stated in the Contract Data fromthe starting date until Completion of the whole of the works.

Access to and use ofthe Site

3333.1 The Employer allows access to and use of each part of the Site to the Contrac-

tor which is necessary for the work included in this contract. Access and useis allowed on or before the later of its access date and the date for accessshown on the Accepted Programme.

Instructions to stop or notto start work

3434.1 The Project Manager may instruct the Contractor to stop or not to start any

work and may later instruct him that he may re-start or start it.

Take over 3535.1 The Employer need not take over the works before the Completion Date if it is

stated in the Contract Data that he is not willing to do so. Otherwise theEmployer takes over the works not later than two weeks after Completion.

35.2 The Employer may use any part of the works before Completion has beencertified. If he does so, he takes over the part of the works when he begins touse it except if the use is

. for a reason stated in the Works Information or

. to suit the Contractor’s method of working.

35.3 The Project Manager certifies the date upon which the Employer takes overany part of the works and its extent within one week of the date.

Acceleration 3636.1 The Project Manager may instruct the Contractor to submit a quotation for an

acceleration to achieve Completion before the Completion Date. The ProjectManager states changes to the Key Dates to be included in the quotation. Aquotation for an acceleration comprises proposed changes to the Prices and arevised programme showing the earlier Completion Date and the changed KeyDates. The Contractor submits details of his assessment with each quotation.

36.2 The Contractor submits a quotation or gives his reasons for not doing sowithin the period for reply.



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4 Testing and Defects

Tests and inspections 4040.1 The subclauses in this clause only apply to tests and inspections required by

the Works Information or the applicable law.

40.2 The Contractor and the Employer provide materials, facilities and samples fortests and inspections as stated in the Works Information.

40.3 The Contractor and the Supervisor each notifies the other of each of histests and inspections before it starts and afterwards notifies the other of itsresults. The Contractor notifies the Supervisor in time for a test or inspectionto be arranged and done before doing work which would obstruct the test orinspection. The Supervisor may watch any test done by the Contractor.

40.4 If a test or inspection shows that any work has a Defect, the Contractorcorrects the Defect and the test or inspection is repeated.

40.5 The Supervisor does his tests and inspections without causing unnecessarydelay to the work or to a payment which is conditional upon a test or inspec-tion being successful. A payment which is conditional upon a Supervisor’s testor inspection being successful becomes due at the later of the defects dateand the end of the last defect correction period if

. the Supervisor has not done the test or inspection and

. the delay to the test or inspection is not the Contractor’s fault.

40.6 The Project Manager assesses the cost incurred by the Employer in repeatinga test or inspection after a Defect is found. The Contractor pays the amountassessed.

Testing and inspectionbefore delivery

4141.1 The Contractor does not bring to the Working Areas those Plant and Materials

which the Works Information states are to be tested or inspected beforedelivery until the Supervisor has notified the Contractor that they have passedthe test or inspection.

Searching for andnotifying Defects

4242.1 Until the defects date, the Supervisor may instruct the Contractor to search for

a Defect. He gives his reason for the search with his instruction. Searchingmay include

. uncovering, dismantling, re-covering and re-erecting work,

. providing facilities, materials and samples for tests and inspections doneby the Supervisor and

. doing tests and inspections which the Works Information does notrequire.

42.2 Until the defects date, the Supervisor notifies the Contractor of each Defect assoon as he finds it and the Contractor notifies the Supervisor of each Defectas soon as he finds it.

Correcting Defects 4343.1 The Contractor corrects a Defect whether or not the Supervisor notifies him of

it.

43.2 The Contractor corrects a notified Defect before the end of the defectcorrection period. The defect correction period begins at Completion forDefects notified before Completion and when the Defect is notified for otherDefects.

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43.3 The Supervisor issues the Defects Certificate at the later of the defects dateand the end of the last defect correction period. The Employer’s rights inrespect of a Defect which the Supervisor has not found or notified are notaffected by the issue of the Defects Certificate.

43.4 The Project Manager arranges for the Employer to allow the Contractor accessto and use of a part of the works which he has taken over if they are neededfor correcting a Defect. In this case the defect correction period begins whenthe necessary access and use have been provided.

Accepting Defects 4444.1 The Contractor and the Project Manager may each propose to the other that

the Works Information should be changed so that a Defect does not have tobe corrected.

44.2 If the Contractor and the Project Manager are prepared to consider thechange, the Contractor submits a quotation for reduced Prices or an earlierCompletion Date or both to the Project Manager for acceptance. If the ProjectManager accepts the quotation, he gives an instruction to change the WorksInformation, the Prices and the Completion Date accordingly.

Uncorrected Defects 4545.1 If the Contractor is given access in order to correct a notified Defect but he

has not corrected it within its defect correction period, the Project Managerassesses the cost to the Employer of having the Defect corrected by otherpeople and the Contractor pays this amount. The Works Information is treatedas having been changed to accept the Defect.

45.2 If the Contractor is not given access in order to correct a notified Defectbefore the defects date, the Project Manager assesses the cost to the Contrac-tor of correcting the Defect and the Contractor pays this amount. The WorksInformation is treated as having been changed to accept the Defect.



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5 Payment

Assessing the amount due 5050.1 The Project Manager assesses the amount due at each assessment date. The

first assessment date is decided by the Project Manager to suit theprocedures of the Parties and is not later than the assessment interval afterthe starting date. Later assessment dates occur

. at the end of each assessment interval until four weeks after the Supervisorissues the Defects Certificate and

. at Completion of the whole of the works.

50.2 The amount due is

. the Price for Work Done to Date,

. plus other amounts to be paid to the Contractor,

. less amounts to be paid by or retained from the Contractor.

Any tax which the law requires the Employer to pay to the Contractor isincluded in the amount due.

50.3 If no programme is identified in the Contract Data, one quarter of the Pricefor Work Done to Date is retained in assessments of the amount due untilthe Contractor has submitted a first programme to the Project Manager foracceptance showing the information which this contract requires.

50.4 In assessing the amount due, the Project Manager considers any applicationfor payment the Contractor has submitted on or before the assessment date.The Project Manager gives the Contractor details of how the amount due hasbeen assessed.

50.5 The Project Manager corrects any wrongly assessed amount due in a laterpayment certificate.

Payment 5151.1 The Project Manager certifies a payment within one week of each assessment

date. The first payment is the amount due. Other payments are the change inthe amount due since the last payment certificate. A payment is made by theContractor to the Employer if the change reduces the amount due. Otherpayments are made by the Employer to the Contractor. Payments are in thecurrency of this contract unless otherwise stated in this contract.

51.2 Each certified payment is made within three weeks of the assessment date or,if a different period is stated in the Contract Data, within the period stated. Ifa certified payment is late, or if a payment is late because the ProjectManager does not issue a certificate which he should issue, interest is paidon the late payment. Interest is assessed from the date by which the latepayment should have been made until the date when the late payment ismade, and is included in the first assessment after the late payment is made.

51.3 If an amount due is corrected in a later certificate either

. by the Project Manager in relation to a mistake or a compensation eventor

. following a decision of the Adjudicator or the tribunal,

interest on the correcting amount is paid. Interest is assessed from the datewhen the incorrect amount was certified until the date when the correctingamount is certified and is included in the assessment which includes thecorrecting amount.

51.4 Interest is calculated on a daily basis at the interest rate and is compoundedannually.

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Defined Cost 5252.1 All the Contractor’s costs which are not included in the Defined Cost are

treated as included in the Fee. Defined Cost includes only amounts calculatedusing rates and percentages stated in the Contract Data and other amountsat open market or competitively tendered prices with deductions for alldiscounts, rebates and taxes which can be recovered.



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6 Compensation events

Compensation events 6060.1 The following are compensation events.

(1) The Project Manager gives an instruction changing the Works Informationexcept

. a change made in order to accept a Defect or

. a change to the Works Information provided by the Contractor for hisdesign which is made either at his request or to comply with other WorksInformation provided by the Employer.

(2) The Employer does not allow access to and use of a part of the Site by thelater of its access date and the date shown on the Accepted Programme.

(3) The Employer does not provide something which he is to provide by thedate for providing it shown on the Accepted Programme.

(4) The Project Manager gives an instruction to stop or not to start any workor to change a Key Date.

(5) The Employer or Others

. do not work within the times shown on the Accepted Programme,

. do not work within the conditions stated in the Works Information or

. carry out work on the Site that is not stated in the Works Information.

(6) The Project Manager or the Supervisor does not reply to a communicationfrom the Contractor within the period required by this contract.

(7) The Project Manager gives an instruction for dealing with an object ofvalue or of historical or other interest found within the Site.

(8) The Project Manager or the Supervisor changes a decision which he haspreviously communicated to the Contractor.

(9) The Project Manager withholds an acceptance (other than acceptance ofa quotation for acceleration or for not correcting a Defect) for a reason notstated in this contract.

(10) The Supervisor instructs the Contractor to search for a Defect and noDefect is found unless the search is needed only because the Contractor gaveinsufficient notice of doing work obstructing a required test or inspection.

(11) A test or inspection done by the Supervisor causes unnecessary delay.

(12) The Contractor encounters physical conditions which

. are within the Site,

. are not weather conditions and

. an experienced contractor would have judged at the Contract Date tohave such a small chance of occurring that it would have been unreason-able for him to have allowed for them.

Only the difference between the physical conditions encountered and thosefor which it would have been reasonable to have allowed is taken into accountin assessing a compensation event.

(13) A weather measurement is recorded

. within a calendar month,

. before the Completion Date for the whole of the works and

. at the place stated in the Contract Data

the value of which, by comparison with the weather data, is shown to occur onaverage less frequently than once in ten years.

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Only the difference between the weather measurement and the weather whichthe weather data show to occur on average less frequently than once in tenyears is taken into account in assessing a compensation event.

(14) An event which is an Employer’s risk stated in this contract.

(15) The Project Manager certifies take over of a part of the works beforeboth Completion and the Completion Date.

(16) The Employer does not provide materials, facilities and samples for testsand inspections as stated in the Works Information.

(17) The Project Manager notifies a correction to an assumption which he hasstated about a compensation event.

(18) A breach of contract by the Employer which is not one of the othercompensation events in this contract.

(19) An event which


. stops the Contractor completing the works by the date shown on theAccepted Programme,

and which

. neither Party could prevent,

. an experienced contractor would have judged at the Contract Date tohave such a small chance of occurring that it would have been unreason-able for him to have allowed for it and

. is not one of the other compensation events stated in this contract.

60.2 In judging the physical conditions for the purpose of assessing a compensa-tion event, the Contractor is assumed to have taken into account

. the Site Information,

. publicly available information referred to in the Site Information,

. information obtainable from a visual inspection of the Site and

. other information which an experienced contractor could reasonably beexpected to have or to obtain.

60.3 If there is an ambiguity or inconsistency within the Site Information (includingthe information referred to in it), the Contractor is assumed to have taken intoaccount the physical conditions more favourable to doing the work.

Notifying compensationevents

6161.1 For compensation events which arise from the Project Manager or the Supervi-

sor giving an instruction or changing an earlier decision, the Project Managernotifies the Contractor of the compensation event at the time of giving theinstruction or changing the earlier decision. He also instructs the Contractor tosubmit quotations, unless the event arises from a fault of the Contractor orquotations have already been submitted. The Contractor puts the instructionor changed decision into effect.

61.2 The Project Manager may instruct the Contractor to submit quotations for aproposed instruction or a proposed changed decision. The Contractor does notput a proposed instruction or a proposed changed decision into effect.

61.3 The Contractor notifies the Project Manager of an event which has happenedor which he expects to happen as a compensation event if

. the Contractor believes that the event is a compensation event and

. the Project Manager has not notified the event to the Contractor.

If the Contractor does not notify a compensation event within eight weeksof becoming aware of the event, he is not entitled to a change in the Prices,the Completion Date or a Key Date unless the Project Manager should havenotified the event to the Contractor but did not.



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61.4 If the Project Manager decides that an event notified by the Contractor

. arises from a fault of the Contractor,

. has not happened and is not expected to happen,

. has no effect upon Defined Cost, Completion or meeting a Key Date or

. is not one of the compensation events stated in this contract

he notifies the Contractor of his decision that the Prices, the Completion Dateand the Key Dates are not to be changed.

If the Project Manager decides otherwise, he notifies the Contractor accord-ingly and instructs him to submit quotations.

If the Project Manager does not notify his decision to the Contractor withineither

. one week of the Contractor’s notification or

. a longer period to which the Contractor has agreed,

the Contractor may notify the Project Manager to this effect. A failure by theProject Manager to reply within two weeks of this notification is treated asacceptance by the Project Manager that the event is a compensation eventand an instruction to submit quotations.

61.5 If the Project Manager decides that the Contractor did not give an earlywarning of the event which an experienced contractor could have given, henotifies this decision to the Contractor when he instructs him to submitquotations.

61.6 If the Project Manager decides that the effects of a compensation event aretoo uncertain to be forecast reasonably, he states assumptions about theevent in his instruction to the Contractor to submit quotations. Assessment ofthe event is based on these assumptions. If any of them is later found to havebeen wrong, the Project Manager notifies a correction.

61.7 A compensation event is not notified after the defects date.

Quotations forcompensation events

6262.1 After discussing with the Contractor different ways of dealing with the com-

pensation event which are practicable, the Project Manager may instruct theContractor to submit alternative quotations. The Contractor submits therequired quotations to the Project Manager and may submit quotations forother methods of dealing with the compensation event which he considerspracticable.

62.2 Quotations for compensation events comprise proposed changes to the Pricesand any delay to the Completion Date and Key Dates assessed by theContractor. The Contractor submits details of his assessment with eachquotation. If the programme for remaining work is altered by the compensa-tion event, the Contractor includes the alterations to the Accepted Programmein his quotation.

62.3 The Contractor submits quotations within three weeks of being instructed todo so by the Project Manager. The Project Manager replies within two weeks ofthe submission. His reply is

. an instruction to submit a revised quotation,

. an acceptance of a quotation,

. a notification that a proposed instruction will not be given or a proposedchanged decision will not be made or

. a notification that he will be making his own assessment.

62.4 The Project Manager instructs the Contractor to submit a revised quotationonly after explaining his reasons for doing so to the Contractor. The Contractorsubmits the revised quotation within three weeks of being instructed to do so.

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62.5 The Project Manager extends the time allowed for

. the Contractor to submit quotations for a compensation event and

. the Project Manager to reply to a quotation

if the Project Manager and the Contractor agree to the extension before thesubmission or reply is due. The Project Manager notifies the extension thathas been agreed to the Contractor.

62.6 If the Project Manager does not reply to a quotation within the time allowed,the Contractor may notify the Project Manager to this effect. If the Contractorsubmitted more than one quotation for the compensation event, he states inhis notification which quotation he proposes is to be accepted. If the ProjectManager does not reply to the notification within two weeks, and unless thequotation is for a proposed instruction or a proposed changed decision,the Contractor’s notification is treated as acceptance of the quotation by theProject Manager.

Assessing compensationevents

6363.1 The changes to the Prices are assessed as the effect of the compensation

event upon

. the actual Defined Cost of the work already done,

. the forecast Defined Cost of the work not yet done and

. the resulting Fee.

The date when the Project Manager instructed or should have instructed theContractor to submit quotations divides the work already done from the worknot yet done.

63.2 If the effect of a compensation event is to reduce the total Defined Cost, thePrices are not reduced except as stated in this contract.

63.3 A delay to the Completion Date is assessed as the length of time that, due tothe compensation event, planned Completion is later than planned Completionas shown on the Accepted Programme. A delay to a Key Date is assessed asthe length of time that, due to the compensation event, the planned datewhen the Condition stated for a Key Date will be met is later than the dateshown on the Accepted Programme.

63.4 The rights of the Employer and the Contractor to changes to the Prices, theCompletion Date and the Key Dates are their only rights in respect of acompensation event.

63.5 If the Project Manager has notified the Contractor of his decision that theContractor did not give an early warning of a compensation event which anexperienced contractor could have given, the event is assessed as if theContractor had given early warning.

63.6 Assessment of the effect of a compensation event includes risk allowancesfor cost and time for matters which have a significant chance of occurring andare at the Contractor’s risk under this contract.

63.7 Assessments are based upon the assumptions that the Contractor reactscompetently and promptly to the compensation event, that any Defined Costand time due to the event are reasonably incurred and that the AcceptedProgramme can be changed.

63.8 A compensation event which is an instruction to change the Works Informationin order to resolve an ambiguity or inconsistency is assessed as if the Prices,the Completion Date and the Key Dates were for the interpretation mostfavourable to the Party which did not provide the Works Information.

63.9 If a change to the Works Information makes the description of the Conditionfor a Key Date incorrect, the Project Manager corrects the description. Thiscorrection is taken into account in assessing the compensation event for thechange to the Works Information.



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The Project Manager’sassessments

6464.1 The Project Manager assesses a compensation event

. if the Contractor has not submitted a quotation and details of his assess-ment within the time allowed,

. if the Project Manager decides that the Contractor has not assessed thecompensation event correctly in a quotation and he does not instruct theContractor to submit a revised quotation,

. if, when the Contractor submits quotations for a compensation event, hehas not submitted a programme or alterations to a programme whichthis contract requires him to submit or

. if, when the Contractor submits quotations for a compensation event, theProject Manager has not accepted the Contractor’s latest programme forone of the reasons stated in this contract.

64.2 The Project Manager assesses a compensation event using his own assess-ment of the programme for the remaining work if

. there is no Accepted Programme or

. the Contractor has not submitted a programme or alterations to aprogramme for acceptance as required by this contract.

64.3 The Project Manager notifies the Contractor of his assessment of a compen-sation event and gives him details of it within the period allowed for theContractor’s submission of his quotation for the same event. This periodstarts when the need for the Project Manager’s assessment becomesapparent.

64.4 If the Project Manager does not assess a compensation event within the timeallowed, the Contractor may notify the Project Manager to this effect. If theContractor submitted more than one quotation for the compensation event,he states in his notification which quotation he proposes is to be accepted. Ifthe Project Manager does not reply within two weeks of this notification thenotification is treated as acceptance of the Contractor’s quotation by theProject Manager.

Implementingcompensation events

6565.1 A compensation event is implemented when

. the Project Manager notifies his acceptance of the Contractor’squotation,

. the Project Manager notifies the Contractor of his own assessment or

. a Contractor’s quotation is treated as having been accepted by theProject Manager.

65.2 The assessment of a compensation event is not revised if a forecast uponwhich it is based is shown by later recorded information to have been wrong.

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7 Title

The Employer’s title toPlant and Materials

7070.1 Whatever title the Contractor has to Plant and Materials which is outside the

Working Areas passes to the Employer if the Supervisor has marked it as forthis contract.

70.2 Whatever title the Contractor has to Plant and Materials passes to theEmployer if it has been brought within the Working Areas. The title to Plantand Materials passes back to the Contractor if it is removed from the WorkingAreas with the Project Manager’s permission.

Marking Equipment,Plant and Materials

outside the Working Areas

7171.1 The Supervisor marks Equipment, Plant and Materials which are outside the

Working Areas if

. this contract identifies them for payment and

. the Contractor has prepared them for marking as the Works Informationrequires.

Removing Equipment 7272.1 The Contractor removes Equipment from the Site when it is no longer needed

unless the Project Manager allows it to be left in the works.

Objects and materialswithin the Site

7373.1 The Contractor has no title to an object of value or of historical or other

interest within the Site. The Contractor notifies the Project Manager when suchan object is found and the Project Manager instructs the Contractor how todeal with it. The Contractor does not move the object without instructions.

73.2 The Contractor has title to materials from excavation and demolition only asstated in the Works Information.



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8 Risks and insurance

Employer’s risks 8080.1 The following are Employer’s risks.

. Claims, proceedings, compensation and costs payable which are due to

. use or occupation of the Site by the works or for the purpose of theworks which is the unavoidable result of the works,

. negligence, breach of statutory duty or interference with any legal rightby the Employer or by any person employed by or contracted to himexcept the Contractor or

. a fault of the Employer or a fault in his design.

. Loss of or damage to Plant and Materials supplied to the Contractor bythe Employer, or by Others on the Employer’s behalf, until the Contractorhas received and accepted them.

. Loss of or damage to the works, Plant and Materials due to

. war, civil war, rebellion, revolution, insurrection, military or usurpedpower,

. strikes, riots and civil commotion not confined to the Contractor’semployees or

. radioactive contamination.

. Loss of or wear or damage to the parts of the works taken over by theEmployer, except loss, wear or damage occurring before the issue of theDefects Certificate which is due to

. a Defect which existed at take over,

. an event occurring before take over which was not itself an Employer’srisk or

. the activities of the Contractor on the Site after take over.

. Loss of or wear or damage to the works and any Equipment, Plant andMaterials retained on the Site by the Employer after a termination,except loss, wear or damage due to the activities of the Contractor on theSite after the termination.

. Additional Employer’s risks stated in the Contract Data.

The Contractor’s risks 8181.1 From the starting date until the Defects Certificate has been issued, the risks

which are not carried by the Employer are carried by the Contractor.

Repairs 8282.1 Until the Defects Certificate has been issued and unless otherwise instructed

by the Project Manager, the Contractor promptly replaces loss of and repairsdamage to the works, Plant and Materials.

Indemnity 8383.1 Each Party indemnifies the other against claims, proceedings, compensation

and costs due to an event which is at his risk.

83.2 The liability of each Party to indemnify the other is reduced if events at theother Party’s risk contributed to the claims, proceedings, compensation andcosts. The reduction is in proportion to the extent that events which were at theother Party’s risk contributed, taking into account each Party’s responsibilitiesunder this contract.

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Insurance cover 8484.1 The Contractor provides the insurances stated in the Insurance Table except

any insurance which the Employer is to provide as stated in the Contract Data.The Contractor provides additional insurances as stated in the Contract Data.

84.2 The insurances are in the joint names of the Parties and provide cover forevents which are at the Contractor’s risk from the starting date until theDefects Certificate or a termination certificate has been issued.

INSURANCE TABLE

Insurance against Minimum amount of cover orminimum limit of indemnity

Loss of or damage to the works, Plantand Materials

The replacement cost, including theamount stated in the Contract Datafor the replacement of any Plantand Materials provided by theEmployer

Loss of or damage to Equipment The replacement cost

Liability for loss of or damage toproperty (except the works, Plant andMaterials and Equipment) andliability for bodily injury to or death ofa person (not an employee of theContractor) caused by activity inconnection with this contract

The amount stated in the ContractData for any one event with crossliability so that the insuranceapplies to the Parties separately

Liability for death of or bodily injury toemployees of the Contractor arisingout of and in the course of theiremployment in connection with thiscontract

The greater of the amount requiredby the applicable law and theamount stated in the Contract Datafor any one event

Insurance policies 8585.1 Before the starting date and on each renewal of the insurance policy until the

defects date, the Contractor submits to the Project Manager for acceptancecertificates which state that the insurance required by this contract is in force.The certificates are signed by the Contractor’s insurer or insurance broker. Areason for not accepting the certificates is that they do not comply with thiscontract.

85.2 Insurance policies include a waiver by the insurers of their subrogation rightsagainst directors and other employees of every insured except where there isfraud.

85.3 The Parties comply with the terms and conditions of the insurance policies.

85.4 Any amount not recovered from an insurer is borne by the Employer for eventswhich are at his risk and by the Contractor for events which are at his risk.

If the Contractordoes not insure

8686.1 The Employer may insure a risk which this contract requires the Contractor to

insure if the Contractor does not submit a required certificate. The cost of thisinsurance to the Employer is paid by the Contractor.

Insurance by the Employer 8787.1 The Project Manager submits policies and certificates for insurances provided

by the Employer to the Contractor for acceptance before the starting date andafterwards as the Contractor instructs. The Contractor accepts the policiesand certificates if they comply with this contract.



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87.2 The Contractor’s acceptance of an insurance policy or certificate provided bythe Employer does not change the responsibility of the Employer to providethe insurances stated in the Contract Data.

87.3 The Contractor may insure a risk which this contract requires the Employer toinsure if the Employer does not submit a required policy or certificate. Thecost of this insurance to the Contractor is paid by the Employer.

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9 Termination

Termination 9090.1 If either Party wishes to terminate the Contractor’s obligation to Provide the

Works he notifies the Project Manager and the other Party giving details of hisreason for terminating. The Project Manager issues a termination certificate toboth Parties promptly if the reason complies with this contract.

90.2 The Contractor may terminate only for a reason identified in the TerminationTable. The Employer may terminate for any reason. The procedures followed andthe amounts due on termination are in accordance with the Termination Table.

TERMINATION TABLE

Terminating Party Reason Procedure Amount due

The Employer A reason otherthan R1–R21

R1–R15 or R18

R17 or R20

R21

P1 and P2

P1, P2 and P3

P1 and P3

P1 and P4

A1, A2 and A4

A1 and A3

A1 and A2

A1 and A2

The Contractor R1–R10, R16 orR19

R17 or R20

P1 and P4

P1 and P4

A1, A2 and A4

A1 and A2

90.3 The procedures for termination are implemented immediately after the ProjectManager has issued a termination certificate.

90.4 Within thirteen weeks of termination, the Project Manager certifies a finalpayment to or from the Contractor which is the Project Manager’s assessmentof the amount due on termination less the total of previous payments.Payment is made within three weeks of the Project Manager’s certificate.

90.5 After a termination certificate has been issued, the Contractor does no furtherwork necessary to Provide the Works.

Reasons for termination 9191.1 Either Party may terminate if the other Party has done one of the following or

its equivalent.

. If the other Party is an individual and has

. presented his petition for bankruptcy (R1),

. had a bankruptcy order made against him (R2),

. had a receiver appointed over his assets (R3) or

. made an arrangement with his creditors (R4).

. If the other Party is a company or partnership and has

. had a winding-up order made against it (R5),

. had a provisional liquidator appointed to it (R6),

. passed a resolution for winding-up (other than in order to amalgamateor reconstruct) (R7),

. had an administration order made against it (R8),

. had a receiver, receiver and manager, or administrative receiverappointed over the whole or a substantial part of its undertaking orassets (R9) or

. made an arrangement with its creditors (R10).



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91.2 The Employer may terminate if the Project Manager has notified that theContractor has defaulted in one of the following ways and not put the defaultright within four weeks of the notification.

. Substantially failed to comply with his obligations (R11).

. Not provided a bond or guarantee which this contract requires (R12).

. Appointed a Subcontractor for substantial work before the ProjectManager has accepted the Subcontractor (R13).

91.3 The Employer may terminate if the Project Manager has notified that theContractor has defaulted in one of the following ways and not stoppeddefaulting within four weeks of the notification.

. Substantially hindered the Employer or Others (R14).

. Substantially broken a health or safety regulation (R15).

91.4 The Contractor may terminate if the Employer has not paid an amount certifiedby the Project Manager within thirteen weeks of the date of the certificate(R16).

91.5 Either Party may terminate if the Parties have been released under the lawfrom further performance of the whole of this contract (R17).

91.6 If the Project Manager has instructed the Contractor to stop or not to start anysubstantial work or all work and an instruction allowing the work to re-start orstart has not been given within thirteen weeks,

. the Employer may terminate if the instruction was due to a default by theContractor (R18),

. the Contractor may terminate if the instruction was due to a default bythe Employer (R19) and

. either Party may terminate if the instruction was due to any other reason(R20).

91.7 The Employer may terminate if an event occurs which


. stops the Contractor completing the works by the date shown on theAccepted Programme and is forecast to delay Completion by more than13 weeks,

and which

. neither Party could prevent and

. an experienced contractor would have judged at the Contract Date tohave such a small chance of occurring that it would have been unreason-able for him to have allowed for it (R21).

Procedures on termination 9292.1 On termination, the Employer may complete the works and may use any Plant

and Materials to which he has title (P1).

92.2 The procedure on termination also includes one or more of the following asset out in the Termination Table.

P2 The Employer may instruct the Contractor to leave the Site, remove anyEquipment, Plant and Materials from the Site and assign the benefit ofany subcontract or other contract related to performance of this contractto the Employer.

P3 The Employer may use any Equipment to which the Contractor has title tocomplete the works. The Contractor promptly removes the Equipmentfrom Site when the Project Manager notifies him that the Employer nolonger requires it to complete the works.

P4 The Contractor leaves the Working Areas and removes the Equipment.

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Payment on termination 9393.1 The amount due on termination includes (A1)

. an amount due assessed as for normal payments,

. the Defined Cost for Plant and Materials

. within the Working Areas or

. to which the Employer has title and of which the Contractor has toaccept delivery,

. other Defined Cost reasonably incurred in expectation of completing thewhole of the works,

. any amounts retained by the Employer and

. a deduction of any un-repaid balance of an advanced payment.

93.2 The amount due on termination also includes one or more of the following asset out in the Termination Table.

A2 The forecast Defined Cost of removing the Equipment.

A3 A deduction of the forecast of the additional cost to the Employer of com-pleting the whole of the works.

A4 The direct fee percentage applied to

. for Options A, B, C and D, any excess of the total of the Prices at theContract Date over the Price for Work Done to Date or

. for Options E and F, any excess of the first forecast of the Defined Costfor the works over the Price for Work Done to Date less the Fee.



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MAIN OPTION CLAUSES

Option A: Priced contract with activity schedule


1111.2 (20) The Activity Schedule is the activity schedule unless later changed in

accordance with this contract.

(22) Defined Cost is the cost of the components in the Shorter Schedule ofCost Components whether work is subcontracted or not excluding the cost ofpreparing quotations for compensation events.

(27) The Price for Work Done to Date is the total of the Prices for

. each group of completed activities and

. each completed activity which is not in a group.

A completed activity is one which is without Defects which would either delayor be covered by immediately following work.

(30) The Prices are the lump sum prices for each of the activities on theActivity Schedule unless later changed in accordance with this contract.

The programme 3131.4 The Contractor provides information which shows how each activity on the

Activity Schedule relates to the operations on each programme which hesubmits for acceptance.

Acceleration 3636.3 When the Project Manager accepts a quotation for an acceleration, he

changes the Prices, the Completion Date and the Key Dates accordingly andaccepts the revised programme.

The Activity Schedule 5454.1 Information in the Activity Schedule is not Works Information or Site Information.

54.2 If the Contractor changes a planned method of working at his discretion sothat the activities on the Activity Schedule do not relate to the operations onthe Accepted Programme, he submits a revision of the Activity Schedule to theProject Manager for acceptance.

54.3 A reason for not accepting a revision of the Activity Schedule is that

. it does not comply with the Accepted Programme,

. any changed Prices are not reasonably distributed between the activitiesor

. the total of the Prices is changed.


6363.10 If the effect of a compensation event is to reduce the total Defined Cost and

the event is

. a change to the Works Information or

. a correction of an assumption stated by the Project Manager for assessingan earlier compensation event,

the Prices are reduced.

63.12 Assessments for changed Prices for compensation events are in the form ofchanges to the Activity Schedule.


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63.14 If the Project Manager and the Contractor agree, rates and lump sums may beused to assess a compensation event instead of Defined Cost.


6565.4 The changes to the Prices, the Completion Date and the Key Dates are

included in the notification implementing a compensation event.

Payment on termination 9393.3 The amount due on termination is assessed without taking grouping of

activities into account.



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Option B: Priced contract with bill of quantities


1111.2 (21) The Bill of Quantities is the bill of quantities as changed in accordance

with this contract to accommodate implemented compensation events and foraccepted quotations for acceleration.

(22) Defined Cost is the cost of the components in the Shorter Schedule ofCost Components whether work is subcontracted or not excluding the cost ofpreparing quotations for compensation events.

(28) The Price for Work Done to Date is the total of

. the quantity of the work which the Contractor has completed for eachitem in the Bill of Quantities multiplied by the rate and

. a proportion of each lump sum which is the proportion of the workcovered by the item which the Contractor has completed.

Completed work is work without Defects which would either delay or becovered by immediately following work.

(31) The Prices are the lump sums and the amounts obtained by multiplyingthe rates by the quantities for the items in the Bill of Quantities.



The Bill of Quantities 5555.1 Information in the Bill of Quantities is not Works Information or Site Information.

Compensation events 6060.4 A difference between the final total quantity of work done and the quantity

stated for an item in the Bill of Quantities is a compensation event if

. the difference does not result from a change to the Works Information,

. the difference causes the Defined Cost per unit of quantity to changeand

. the rate in the Bill of Quantities for the item multiplied by the final totalquantity of work done is more than 0.5% of the total of the Prices at theContract Date.

If the Defined Cost per unit of quantity is reduced, the affected rate isreduced.

60.5 A difference between the final total quantity of work done and the quantity foran item stated in the Bill of Quantities which delays Completion or the meet-ing of the Condition stated for a Key Date is a compensation event.

60.6 The Project Manager corrects mistakes in the Bill of Quantities which aredepartures from the rules for item descriptions and for division of the workinto items in the method of measurement or are due to ambiguities orinconsistencies. Each such correction is a compensation event which maylead to reduced Prices.

60.7 In assessing a compensation event which results from a correction of aninconsistency between the Bill of Quantities and another document, theContractor is assumed to have taken the Bill of Quantities as correct.

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the event is

. a change to the Works Information or

. a correction of an assumption stated by the Project Manager for assessingan earlier compensation event,


63.13 Assessments for changed Prices for compensation events are in the form ofchanges to the Bill of Quantities.

. For the whole or a part of a compensation event for work not yet doneand for which there is an item in the Bill of Quantities, the changes are

. a changed rate,

. a changed quantity or

. a changed lump sum.

. For the whole or a part of a compensation event for work not yet doneand for which there is no item in the Bill of Quantities, the change is anew priced item which, unless the Project Manager and the Contractoragree otherwise, is compiled in accordance with the method of measure-ment.

. For the whole or a part of a compensation event for work already done,the change is a new lump sum item.

If the Project Manager and the Contractor agree, rates and lump sums may beused to assess a compensation event instead of Defined Cost.






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Option C: Target contract with activity schedule


1111.2 (20) The Activity Schedule is the activity schedule unless later changed in

accordance with this contract.

(23) Defined Cost is

. the amount of payments due to Subcontractors for work which is subcon-tracted without taking account of amounts deducted for

. retention,

. payment to the Employer as a result of the Subcontractor failing tomeet a Key Date,

. the correction of Defects after Completion,

. payments to Others and

. the supply of equipment, supplies and services included in the chargefor overhead cost within the Working Areas in this contract

and

. the cost of components in the Schedule of Cost Components for otherwork

less Disallowed Cost.

(25) Disallowed Cost is cost which the Project Manager decides

. is not justified by the Contractor’s accounts and records,

. should not have been paid to a Subcontractor or supplier in accordancewith his contract,

. was incurred only because the Contractor did not

. follow an acceptance or procurement procedure stated in the WorksInformation or

. give an early warning which this contract required him to give

and the cost of

. correcting Defects after Completion,

. correcting Defects caused by the Contractor not complying with aconstraint on how he is to Provide the Works stated in the WorksInformation,

. Plant and Materials not used to Provide the Works (after allowing forreasonable wastage) unless resulting from a change to the WorksInformation,

. resources not used to Provide the Works (after allowing for reasonableavailability and utilisation) or not taken away from the Working Areaswhen the Project Manager requested and

. preparation for and conduct of an adjudication or proceedings of thetribunal.

(29) The Price for Work Done to Date is the total Defined Cost which theProject Manager forecasts will have been paid by the Contractor before thenext assessment date plus the Fee.

(30) The Prices are the lump sum prices for each of the activities on theActivity Schedule unless later changed in accordance with this contract.

Providing the Works 2020.3 The Contractor advises the Project Manager on the practical implications of

the design of the works and on subcontracting arrangements.

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20.4 The Contractor prepares forecasts of the total Defined Cost for the whole ofthe works in consultation with the Project Manager and submits them tothe Project Manager. Forecasts are prepared at the intervals stated in theContract Data from the starting date until Completion of the whole of theworks. An explanation of the changes made since the previous forecast issubmitted with each forecast.

Subcontracting 2626.4 The Contractor submits the proposed contract data for each subcontract for

acceptance to the Project Manager if

. an NEC contract is proposed and

. the Project Manager instructs the Contractor to make the submission.

A reason for not accepting the proposed contract data is that its use will notallow the Contractor to Provide the Works.

The programme 3131.4 The Contractor provides information which shows how each activity on the

Activity Schedule relates to the operations on each programme which hesubmits for acceptance.



Tests and inspections 4040.7 When the Project Manager assesses the cost incurred by the Employer in

repeating a test or inspection after a Defect is found, the Project Managerdoes not include the Contractor’s cost of carrying out the repeat test orinspection.

Assessing the amount due 5050.6 Payments of Defined Cost made by the Contractor in a currency other than the

currency of this contract are included in the amount due as payments to bemade to him in the same currency. Such payments are converted to thecurrency of this contract in order to calculate the Fee and any Contractor’sshare using the exchange rates.

Defined Cost 5252.2 The Contractor keeps these records

. accounts of payments of Defined Cost,

. proof that the payments have been made,

. communications about and assessments of compensation events forSubcontractors and

. other records as stated in the Works Information.

52.3 The Contractor allows the Project Manager to inspect at any time withinworking hours the accounts and records which he is required to keep.

The Contractor’s share 5353.1 The Project Manager assesses the Contractor’s share of the difference

between the total of the Prices and the Price for Work Done to Date. The differ-ence is divided into increments falling within each of the share ranges. Thelimits of a share range are the Price for Work Done to Date divided by thetotal of the Prices, expressed as a percentage. The Contractor’s share equalsthe sum of the products of the increment within each share range and thecorresponding Contractor’s share percentage.

53.2 If the Price for Work Done to Date is less than the total of the Prices, theContractor is paid his share of the saving. If the Price for Work Done to Date isgreater than the total of the Prices, the Contractor pays his share of theexcess.



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53.3 The Project Manager makes a preliminary assessment of the Contractor’sshare at Completion of the whole of the works using his forecasts of the finalPrice for Work Done to Date and the final total of the Prices. This share isincluded in the amount due following Completion of the whole of the works.

53.4 The Project Manager makes a final assessment of the Contractor’s shareusing the final Price for Work Done to Date and the final total of the Prices.This share is included in the final amount due.

The Activity Schedule 5454.1 Information in the Activity Schedule is not Works Information or Site Information.

54.2 If the Contractor changes a planned method of working at his discretion sothat the activities on the Activity Schedule do not relate to the operations onthe Accepted Programme, he submits a revision of the Activity Schedule to theProject Manager for acceptance.

54.3 A reason for not accepting a revision of the Activity Schedule is that

. it does not comply with the Accepted Programme,

. any changed Prices are not reasonably distributed between the activitiesor

. the total of the Prices is changed.



the event is

. a change to the Works Information, other than a change to the WorksInformation provided by the Employer which the Contractor proposed andthe Project Manager has accepted or

. a correction of an assumption stated by the Project Manager for asses-sing an earlier compensation event,


63.12 Assessments for changed Prices for compensation events are in the form ofchanges to the Activity Schedule.

63.15 If the Project Manager and the Contractor agree, the Contractor assesses acompensation event using the Shorter Schedule of Cost Components. TheProject Manager may make his own assessments using the Shorter Scheduleof Cost Components.




Payment on termination 9393.4 If there is a termination, the Project Manager assesses the Contractor’s share

after he has certified termination. His assessment uses, as the Price for WorkDone to Date, the total of the Defined Cost which the Contractor has paid andwhich he is committed to pay for work done before termination. The assess-ment uses as the total of the Prices

. the lump sum price for each activity which has been completed and

. a proportion of the lump sum price for each incomplete activity which isthe proportion of the work in the activity which has been completed.

93.6 The Project Manager’s assessment of the Contractor’s share is added to theamount due to the Contractor on termination if there has been a saving ordeducted if there has been an excess.

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Option D: Target contract with bill of quantities


1111.2 (21) The Bill of Quantities is the bill of quantities as changed in accordance

with this contract to accommodate implemented compensation events and foraccepted quotations for acceleration.

(23) Defined Cost is


. retention,





and









and the cost of


. correcting Defects caused by the Contractor not complying with a con-straint on how he is to Provide the Works stated in the Works Information,

. Plant and Materials not used to Provide the Works (after allowing forreasonable wastage) unless resulting from a change to the Works Infor-mation,



(29) The Price for Work Done to Date is the total Defined Cost which theProject Manager forecasts will have been paid by the Contractor before the nextassessment date plus the Fee.

(31) The Prices are the lump sums and the amounts obtained by multiplyingthe rates by the quantities for the items in the Bill of Quantities.

(33) The Total of the Prices is the total of

. the quantity of the work which the Contractor has completed for eachitem in the Bill of Quantities multiplied by the rate and

. a proportion of each lump sum which is the proportion of the workcovered by the item which the Contractor has completed.

Completed work is work without Defects which would either delay or becovered by immediately following work.



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20.4 The Contractor prepares forecasts of the total Defined Cost for the whole ofthe works in consultation with the Project Manager and submits them to theProject Manager. Forecasts are prepared at the intervals stated in theContract Data from the starting date until Completion of the whole of theworks. An explanation of the changes made since the previous forecast issubmitted with each forecast.











currency of this contract are included in the amount due as payments to bemade to him in the same currency. Such payments are converted to thecurrency of this contract in order to calculate the Fee and any Contractor’sshare using the exchange rates.







The Contractor’s share 5353.5 The Project Manager assesses the Contractor’s share of the difference

between the Total of the Prices and the Price for Work Done to Date. Thedifference is divided into increments falling within each of the share ranges.The limits of a share range are the Price for Work Done to Date divided by theTotal of the Prices, expressed as a percentage. The Contractor’s share equalsthe sum of the products of the increment within each share range and thecorresponding Contractor’s share percentage.

53.6 If the Price for Work Done to Date is less than the Total of the Prices, theContractor is paid his share of the saving. If the Price for Work Done to Date isgreater than the Total of the Prices, the Contractor pays his share of theexcess.

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53.7 The Project Manager makes a preliminary assessment of the Contractor’sshare at Completion of the whole of the works using his forecasts of the finalPrice for Work Done to Date and the final Total of the Prices. This share isincluded in the amount due following Completion of the whole of the works.

53.8 The Project Manager makes a final assessment of the Contractor’s shareusing the final Price for Work Done to Date and the final Total of the Prices.This share is included in the final amount due.

The Bill of Quantities 5555.1 Information in the Bill of Quantities is not Works Information or Site Informa-

tion.

Compensation events 6060.4 A difference between the final total quantity of work done and the quantity

stated for an item in the Bill of Quantities is a compensation event if

. the difference does not result from a change to the Works Information,

. the difference causes the Defined Cost per unit of quantity to changeand

. the rate in the Bill of Quantities for the item multiplied by the final totalquantity of work done is more than 0.5% of the total of the Prices at theContract Date.

If the Defined Cost per unit of quantity is reduced, the affected rate isreduced.

60.5 A difference between the final total quantity of work done and the quantity foran item stated in the Bill of Quantities which delays Completion or the meet-ing of the Condition stated for a Key Date is a compensation event.

60.6 The Project Manager corrects mistakes in the Bill of Quantities which aredepartures from the rules for item descriptions and for division of the workinto items in the method of measurement or are due to ambiguities orinconsistencies. Each such correction is a compensation event which maylead to reduced Prices.

60.7 In assessing a compensation event which results from a correction of aninconsistency between the Bill of Quantities and another document, theContractor is assumed to have taken the Bill of Quantities as correct.



the event is

. a change to the Works Information, other than a change to the WorksInformation provided by the Employer which the Contractor proposed andthe Project Manager has accepted or

. a correction of an assumption stated by the Project Manager for asses-sing an earlier compensation event,


63.13 Assessments for changed Prices for compensation events are in the form ofchanges to the Bill of Quantities.

. For the whole or a part of a compensation event for work not yet doneand for which there is an item in the Bill of Quantities, the changes are

. a changed rate,

. a changed quantity or

. a changed lump sum.

. For the whole or a part of a compensation event for work not yet done andfor which there is no item in the Bill of Quantities, the change is a newpriced item which, unless the Project Manager and the Contractor agreeotherwise, is compiled in accordance with the method of measurement.



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. For the whole or a part of a compensation event for work already done,the change is a new lump sum item.

If the Project Manager and the Contractor agree, rates and lump sums may beused to assess a compensation event instead of Defined Cost.

63.15 If the Project Manager and the Contractor agree, the Contractor assesses acompensation event using the Shorter Schedule of Cost Components. TheProject Manager may make his own assessments using the Shorter Scheduleof Cost Components.




Payment on termination 9393.5 If there is a termination, the Project Manager assesses the Contractor’s share

after he has certified termination. His assessment uses, as the Price for WorkDone to Date, the total of the Defined Cost which the Contractor has paid andwhich he is committed to pay for work done before termination.

93.6 The Project Manager’s assessment of the Contractor’s share is added to theamounts due to the Contractor on termination if there has been a saving ordeducted if there has been an excess.

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Option E: Cost reimbursable contract


1111.2 (23) Defined Cost is


. retention,





and









and the cost of


. correcting Defects caused by the Contractor not complying with a const-raint on how he is to Provide the Works stated in the Works Information,

. Plant and Materials not used to Provide the Works (after allowing forreasonable wastage) unless resulting from a change to the Works Infor-mation,




(32) The Prices are the Defined Cost plus the Fee.






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changes the Completion Date, the Key Dates and the forecast of the totalDefined Cost of the whole of the works accordingly and accepts the revisedprogramme.




currency of this contract are included in the amount due as payments to bemade to him in the same currency. Such payments are converted to thecurrency of this contract in order to calculate the Fee using the exchangerates.








6363.15 If the Project Manager and the Contractor agree, the Contractor assesses a

compensation event using the Shorter Schedule of Cost Components. TheProject Manager may make his own assessments using the Shorter Scheduleof Cost Components.


6565.3 The changes to the forecast amount of the Prices, the Completion Date and

the Key Dates are included in the notification implementing a compensationevent.

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Option F: Management contract


1111.2 (24) Defined Cost is


. retention,



. payments to Others,


and

. the prices for work done by the Contractor himself



. is not justified by the accounts and records provided by the Contractor,




. give an early warning which this contract required him to give or

. is a payment to a Subcontractor for

. work which the Contract Data states that the Contractor will do himselfor

. the Contractor’s management.


(32) The Prices are the Defined Cost plus the Fee.

Providing the Works 2020.2 The Contractor manages the Contractor’s design, the provision of Site services

and the construction and installation of the works. The Contractor subcon-tracts the Contractor’s design, the provision of Site services and theconstruction and installation of the works except work which the ContractData states that he will do himself.

20.3 The Contractor advises the Project Manager on the practical implications ofthe design of the works and on subcontracting arrangements.




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20.5 If work which the Contractor is to do himself is affected by a compensationevent, the Project Manager and the Contractor agree the change to the pricefor the work and any change to the Completion Date and Key Dates. If theycannot agree, the Project Manager decides the change.







changes the Completion Date, the Key Dates and the forecast of the totalDefined Cost of the whole of the works accordingly and accepts the revisedprogramme.


currency of this contract are included in the amount due as payments to bemade to him in the same currency. Such payments are converted to thecurrency of this contract in order to calculate the Fee using the exchangerates.








6565.3 The changes to the forecast amount of the Prices, the Completion Date and

the Key Dates are included in the notification implementing a compensationevent.

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DISPUTE RESOLUTION

Option W1

Dispute resolution procedure (used unless the United Kingdom Housing Grants, Construction and Regeneration Act1996 applies).

Dispute resolution W1W1.1 A dispute arising under or in connection with this contract is referred to and

decided by the Adjudicator.

The Adjudicator W1.2 (1) The Parties appoint the Adjudicator under the NEC Adjudicator’s Contractcurrent at the starting date.

(2) The Adjudicator acts impartially and decides the dispute as an indepen-dent adjudicator and not as an arbitrator.

(3) If the Adjudicator is not identified in the Contract Data or if the Adjudicatorresigns or is unable to act, the Parties choose a new adjudicator jointly. If theParties have not chosen an adjudicator, either Party may ask the Adjudicatornominating body to choose one. The Adjudicator nominating body chooses anadjudicator within four days of the request. The chosen adjudicator becomesthe Adjudicator.

(4) A replacement Adjudicator has the power to decide a dispute referred tohis predecessor but not decided at the time when the predecessor resigned orbecame unable to act. He deals with an undecided dispute as if it had beenreferred to him on the date he was appointed.

(5) The Adjudicator, his employees and agents are not liable to the Partiesfor any action or failure to take action in an adjudication unless the action orfailure to take action was in bad faith.

The adjudication W1.3 (1) Disputes are notified and referred to the Adjudicator in accordance withthe Adjudication Table.


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ADJUDICATION TABLE

Dispute about Which Party mayrefer it to theAdjudicator?

When may it be referred to theAdjudicator?

An action of theProject Manager orthe Supervisor

The Contractor Between two and four weeksafter the Contractor’snotification of the dispute to theEmployer and the ProjectManager, the notification itselfbeing made not more than fourweeks after the Contractorbecomes aware of the action

The Project Manageror Supervisor nothaving taken anaction

The Contractor Between two and four weeksafter the Contractor’snotification of the dispute to theEmployer and the ProjectManager, the notification itselfbeing made not more than fourweeks after the Contractorbecomes aware that the actionwas not taken

A quotation for acompensation eventwhich is treated ashaving beenaccepted

The Employer Between two and four weeksafter the Project Manager’snotification of the dispute to theEmployer and the Contractor,the notification itself beingmade not more than four weeksafter the quotation was treatedas accepted

Any other matter Either Party Between two and four weeksafter notification of the disputeto the other Party and theProject Manager

(2) The times for notifying and referring a dispute may be extended by theProject Manager if the Contractor and the Project Manager agree to the exten-sion before the notice or referral is due. The Project Manager notifies theextension that has been agreed to the Contractor. If a disputed matter is notnotified and referred within the times set out in this contract, neither Party maysubsequently refer it to the Adjudicator or the tribunal.

(3) The Party referring the dispute to the Adjudicator includes with his referralinformation to be considered by the Adjudicator. Any more information from aParty to be considered by the Adjudicator is provided within four weeks of thereferral. This period may be extended if the Adjudicator and the Parties agree.

(4) If a matter disputed by the Contractor under or in connection with asubcontract is also a matter disputed under or in connection with this contractand if the subcontract allows, the Contractor may refer the subcontract dis-pute to the Adjudicator at the same time as the main contract referral. TheAdjudicator then decides the disputes together and references to the Partiesfor the purposes of the dispute are interpreted as including the Subcontractor.

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(5) The Adjudicator may

. review and revise any action or inaction of the Project Manager orSupervisor related to the dispute and alter a quotation which has beentreated as having been accepted,

. take the initiative in ascertaining the facts and the law related to thedispute,

. instruct a Party to provide further information related to the disputewithin a stated time and

. instruct a Party to take any other action which he considers necessary toreach his decision and to do so within a stated time.

(6) A communication between a Party and the Adjudicator is communicated tothe other Party at the same time.

(7) If the Adjudicator’s decision includes assessment of additional cost ordelay caused to the Contractor, he makes his assessment in the same way asa compensation event is assessed.

(8) The Adjudicator decides the dispute and notifies the Parties and theProject Manager of his decision and his reasons within four weeks of the endof the period for receiving information. This four week period may be extendedif the Parties agree.

(9) Unless and until the Adjudicator has notified the Parties of his decision,the Parties, the Project Manager and the Supervisor proceed as if the matterdisputed was not disputed.

(10) The Adjudicator’s decision is binding on the Parties unless and untilrevised by the tribunal and is enforceable as a matter of contractual obligationbetween the Parties and not as an arbitral award. The Adjudicator’s decisionis final and binding if neither Party has notified the other within the timesrequired by this contract that he is dissatisfied with a decision of the Adjudica-tor and intends to refer the matter to the tribunal.

(11) The Adjudicator may, within two weeks of giving his decision to theParties, correct any clerical mistake or ambiguity.

Review by the tribunal W1.4 (1) A Party does not refer any dispute under or in connection with thiscontract to the tribunal unless it has first been referred to the Adjudicator inaccordance with this contract.

(2) If, after the Adjudicator notifies his decision a Party is dissatisfied, he maynotify the other Party that he intends to refer it to the tribunal. A Party may notrefer a dispute to the tribunal unless this notification is given within fourweeks of notification of the Adjudicator’s decision.

(3) If the Adjudicator does not notify his decision within the time provided bythis contract, a Party may notify the other Party that he intends to refer thedispute to the tribunal. A Party may not refer a dispute to the tribunal unlessthis notification is given within four weeks of the date by which the Adjudicatorshould have notified his decision.

(4) The tribunal settles the dispute referred to it. The tribunal has the powersto reconsider any decision of the Adjudicator and review and revise any actionor inaction of the Project Manager or the Supervisor related to the dispute. AParty is not limited in the tribunal proceedings to the information, evidence orarguments put to the Adjudicator.

(5) If the tribunal is arbitration, the arbitration procedure, the place where thearbitration is to be held and the method of choosing the arbitrator are thosestated in the Contract Data.

(6) A Party does not call the Adjudicator as a witness in tribunal proceedings.



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Option W2

Dispute resolution procedure (used in the United Kingdom when the Housing Grants, Construction and RegenerationAct 1996 applies).

Dispute resolution W2W2.1 (1) A dispute arising under or in connection with this contract is referred to

and decided by the Adjudicator. A Party may refer a dispute to the Adjudicatorat any time.

(2) In this Option, time periods stated in days exclude Christmas Day, GoodFriday and bank holidays.

The Adjudicator W2.2 (1) The Parties appoint the Adjudicator under the NEC Adjudicator’s Contractcurrent at the starting date.

(2) The Adjudicator acts impartially and decides the dispute as an indepen-dent adjudicator and not as an arbitrator.

(3) If the Adjudicator is not identified in the Contract Data or if the Adjudicatorresigns or becomes unable to act

. the Parties may choose an adjudicator jointly or

. a Party may ask the Adjudicator nominating body to choose an adjudicator.

The Adjudicator nominating body chooses an adjudicator within four days ofthe request. The chosen adjudicator becomes the Adjudicator.

(4) A replacement Adjudicator has the power to decide a dispute referred tohis predecessor but not decided at the time when his predecessor resigned orbecame unable to act. He deals with an undecided dispute as if it had beenreferred to him on the date he was appointed.

(5) The Adjudicator, his employees and agents are not liable to the Parties forany action or failure to take action in an adjudication unless the action orfailure to take action was in bad faith.

The adjudication W2.3 (1) Before a Party refers a dispute to the Adjudicator, he gives a notice ofadjudication to the other Party with a brief description of the dispute and thedecision which he wishes the Adjudicator to make. If the Adjudicator is namedin the Contract Data, the Party sends a copy of the notice of adjudication tothe Adjudicator when it is issued. Within three days of the receipt of the noticeof adjudication, the Adjudicator notifies the Parties

. that he is able to decide the dispute in accordance with the contract or

. that he is unable to decide the dispute and has resigned.

If the Adjudicator does not so notify within three days of the issue of thenotice of adjudication, either Party may act as if he has resigned.

(2) Within seven days of a Party giving a notice of adjudication he

. refers the dispute to the Adjudicator,

. provides the Adjudicator with the information on which he relies, includingany supporting documents and

. provides a copy of the information and supporting documents he has pro-vided to the Adjudicator to the other Party.

Any further information from a Party to be considered by the Adjudicator isprovided within fourteen days of the referral. This period may be extended ifthe Adjudicator and the Parties agree.

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(3) If a matter disputed by the Contractor under or in connection with asubcontract is also a matter disputed under or in connection with thiscontract, the Contractor may, with the consent of the Subcontractor, refer thesubcontract dispute to the Adjudicator at the same time as the main contractreferral. The Adjudicator then decides the disputes together and references tothe Parties for the purposes of the dispute are interpreted as including theSubcontractor.

(4) The Adjudicator may

. review and revise any action or inaction of the Project Manager orSupervisor related to the dispute and alter a quotation which has beentreated as having been accepted,

. take the initiative in ascertaining the facts and the law related to thedispute,

. instruct a Party to provide further information related to the disputewithin a stated time and

. instruct a Party to take any other action which he considers necessary toreach his decision and to do so within a stated time.

(5) If a Party does not comply with any instruction within the time stated bythe Adjudicator, the Adjudicator may continue the adjudication and make hisdecision based upon the information and evidence he has received.

(6) A communication between a Party and the Adjudicator is communicated tothe other Party at the same time.

(7) If the Adjudicator’s decision includes assessment of additional cost ordelay caused to the Contractor, he makes his assessment in the same way asa compensation event is assessed.

(8) The Adjudicator decides the dispute and notifies the Parties and theProject Manager of his decision and his reasons within twenty-eight days ofthe dispute being referred to him. This period may be extended by up to four-teen days with the consent of the referring Party or by any other period agreedby the Parties.

(9) Unless and until the Adjudicator has notified the Parties of his decision,the Parties, the Project Manager and the Supervisor proceed as if the matterdisputed was not disputed.

(10) If the Adjudicator does not make his decision and notify it to the Partieswithin the time provided by this contract, the Parties and the Adjudicator mayagree to extend the period for making his decision. If they do not agree to anextension, either Party may act as if the Adjudicator has resigned.

(11) The Adjudicator’s decision is binding on the Parties unless and untilrevised by the tribunal and is enforceable as a matter of contractual obligationbetween the Parties and not as an arbitral award. The Adjudicator’s decisionis final and binding if neither Party has notified the other within the timesrequired by this contract that he is dissatisfied with a matter decided by theAdjudicator and intends to refer the matter to the tribunal.

(12) The Adjudicator may, within fourteen days of giving his decision to theParties, correct a clerical mistake or ambiguity.

Review by the tribunal W2.4 (1) A Party does not refer any dispute under or in connection with thiscontract to the tribunal unless it has first been decided by the Adjudicator inaccordance with this contract.

(2) If, after the Adjudicator notifies his decision a Party is dissatisfied, thatParty may notify the other Party of the matter which he disputes and statethat he intends to refer it to the tribunal. The dispute may not be referred tothe tribunal unless this notification is given within four weeks of the notifica-tion of the Adjudicator’s decision.



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(3) The tribunal settles the dispute referred to it. The tribunal has the powersto reconsider any decision of the Adjudicator and to review and revise anyaction or inaction of the Project Manager or the Supervisor related to thedispute. A Party is not limited in tribunal proceedings to the information orevidence put to the Adjudicator.

(4) If the tribunal is arbitration, the arbitration procedure, the place where thearbitration is to be held and the method of choosing the arbitrator are thosestated in the Contract Data.

(5) A Party does not call the Adjudicator as a witness in tribunal proceedings.

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SECONDARY OPTION CLAUSES

Option X1: Price adjustment for inflation (used only with Options A, B, C and D)

Defined terms X1X1.1 (a) The Base Date Index (B) is the latest available index before the base date.

(b) The Latest Index (L) is the latest available index before the date ofassessment of an amount due.

(c) The Price Adjustment Factor is the total of the products of each of theproportions stated in the Contract Data multiplied by (L – B)/B for the indexlinked to it.

Price Adjustment Factor X1.2 If an index is changed after it has been used in calculating a Price AdjustmentFactor, the calculation is repeated and a correction included in the nextassessment of the amount due.

The Price Adjustment Factor calculated at the Completion Date for the wholeof the works is used for calculating price adjustment after this date.

Compensation events X1.3 The Defined Cost for compensation events is assessed using the

. Defined Cost current at the time of assessing the compensation eventadjusted to base date by dividing by one plus the Price AdjustmentFactor for the last assessment of the amount due and

. Defined Cost at base date levels for amounts calculated from ratesstated in the Contract Data for employees and Equipment.

Price adjustment OptionsA and B

X1.4 Each amount due includes an amount for price adjustment which is the sumof

. the change in the Price for Work Done to Date since the last assessmentof the amount due multiplied by the Price Adjustment Factor for the dateof the current assessment,

. the amount for price adjustment included in the previous amount dueand

. correcting amounts, not included elsewhere, which arise from changes toindices used for assessing previous amounts for price adjustment.

Price adjustment OptionsC and D

X1.5 Each time the amount due is assessed, an amount for price adjustment isadded to the total of the Prices which is the sum of

. the change in the Price for Work Done to Date since the last assessmentof the amount due multiplied by (PAF/(1þPAF)) where PAF is the PriceAdjustment Factor for the date of the current assessment and

. correcting amounts, not included elsewhere, which arise from changes toindices used for assessing previous amounts for price adjustment.


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Option X2: Changes in the law

Changes in the law X2X2.1 A change in the law of the country in which the Site is located is a compensa-

tion event if it occurs after the Contract Date. The Project Manager may notifythe Contractor of a compensation event for a change in the law and instructhim to submit quotations. If the effect of a compensation event which is achange in the law is to reduce the total Defined Cost, the Prices are reduced.

Option X3: Multiple currencies (used only with Options A and B)

Multiple currencies X3X3.1 The Contractor is paid in currencies other than the currency of this contract for

the items or activities listed in the Contract Data. The exchange rates areused to convert from the currency of this contract to other currencies.

X3.2 Payments to the Contractor in currencies other than the currency of thiscontract do not exceed the maximum amounts stated in the Contract Data.Any excess is paid in the currency of this contract.

Option X4: Parent company guarantee

Parent companyguarantee

X4X4.1 If a parent company owns the Contractor, the Contractor gives to the Employer

a guarantee by the parent company of the Contractor’s performance in theform set out in the Works Information. If the guarantee was not given by theContract Date, it is given to the Employer within four weeks of the ContractDate.

Option X5: Sectional Completion

Sectional Completion X5X5.1 In these conditions of contract, unless stated as the whole of the works, each

reference and clause relevant to

. the works,

. Completion and

. Completion Date

applies, as the case may be, to either the whole of the works or any section ofthe works.

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Option X6: Bonus for early Completion

Bonus for early Completion X6X6.1 The Contractor is paid a bonus calculated at the rate stated in the Contract

Data for each day from the earlier of

. Completion and

. the date on which the Employer takes over the works

until the Completion Date.

Option X7: Delay damages

Delay damages X7X7.1 The Contractor pays delay damages at the rate stated in the Contract Data

from the Completion Date for each day until the earlier of

. Completion and

. the date on which the Employer takes over the works.

X7.2 If the Completion Date is changed to a later date after delay damages havebeen paid, the Employer repays the overpayment of damages with interest.Interest is assessed from the date of payment to the date of repayment andthe date of repayment is an assessment date.

X7.3 If the Employer takes over a part of the works before Completion, the delaydamages are reduced from the date on which the part is taken over. TheProject Manager assesses the benefit to the Employer of taking over the partof the works as a proportion of the benefit to the Employer of taking over thewhole of the works not previously taken over. The delay damages are reducedin this proportion.

Option X12: Partnering


X12X12.1 (1) The Partners are those named in the Schedule of Partners. The Client is a

Partner.

(2) An Own Contract is a contract between two Partners which includes thisOption.

(3) The Core Group comprises the Partners listed in the Schedule of CoreGroup Members.

(4) Partnering Information is information which specifies how the Partnerswork together and is either in the documents which the Contract Data statesit is in or in an instruction given in accordance with this contract.

(5) A Key Performance Indicator is an aspect of performance for which atarget is stated in the Schedule of Partners.



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Actions X12.2 (1) Each Partner works with the other Partners to achieve the Client’s objectivestated in the Contract Data and the objectives of every other Partner stated inthe Schedule of Partners.

(2) Each Partner nominates a representative to act for it in dealings withother Partners.

(3) The Core Group acts and takes decisions on behalf of the Partners onthose matters stated in the Partnering Information.

(4) The Partners select the members of the Core Group. The Core Groupdecides how they will work and decides the dates when each member joinsand leaves the Core Group. The Client’s representative leads the Core Groupunless stated otherwise in the Partnering Information.

(5) The Core Group keeps the Schedule of Core Group Members and theSchedule of Partners up to date and issues copies of them to the Partnerseach time either is revised.

(6) This Option does not create a legal partnership between Partners who arenot one of the Parties in this contract.

Working together X12.3 (1) The Partners work together as stated in the Partnering Information and ina spirit of mutual trust and co-operation.

(2) A Partner may ask another Partner to provide information which he needsto carry out the work in his Own Contract and the other Partner provides it.

(3) Each Partner gives an early warning to the other Partners when hebecomes aware of any matter that could affect the achievement of anotherPartner’s objectives stated in the Schedule of Partners.

(4) The Partners use common information systems as set out in the Partner-ing Information.

(5) A Partner implements a decision of the Core Group by issuing instructionsin accordance with its Own Contracts.

(6) The Core Group may give an instruction to the Partners to change thePartnering Information. Each such change to the Partnering Information is acompensation event which may lead to reduced Prices.

(7) The Core Group prepares and maintains a timetable showing the proposedtiming of the contributions of the Partners. The Core Group issues a copy ofthe timetable to the Partners each time it is revised. The Contractor changeshis programme if it is necessary to do so in order to comply with the revisedtimetable. Each such change is a compensation event which may lead toreduced Prices.

(8) A Partner gives advice, information and opinion to the Core Group and toother Partners when asked to do so by the Core Group. This advice, informa-tion and opinion relates to work that another Partner is to carry out under itsOwn Contract and is given fully, openly and objectively. The Partners showcontingency and risk allowances in information about costs, prices and timingfor future work.

(9) A Partner notifies the Core Group before subcontracting any work.

Incentives X12.4 (1) A Partner is paid the amount stated in the Schedule of Partners if thetarget stated for a Key Performance Indicator is improved upon or achieved.Payment of the amount is due when the target has been improved upon orachieved and is made as part of the amount due in the Partner’s OwnContract.

(2) The Client may add a Key Performance Indicator and associated paymentto the Schedule of Partners but may not delete or reduce a payment stated inthe Schedule of Partners.



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Option X13: Performance bond

Performance bond X13X13.1 The Contractor gives the Employer a performance bond, provided by a bank or

insurer which the Project Manager has accepted, for the amount stated in theContract Data and in the form set out in the Works Information. A reason fornot accepting the bank or insurer is that its commercial position is not strongenough to carry the bond. If the bond was not given by the Contract Date, it isgiven to the Employer within four weeks of the Contract Date.

Option X14: Advanced payment to the Contractor

Advanced payment X14X14.1 The Employer makes an advanced payment to the Contractor of the amount

stated in the Contract Data.

X14.2 The advanced payment is made either within four weeks of the Contract Dateor, if an advanced payment bond is required, within four weeks of the later of

. the Contract Date and

. the date when the Employer receives the advanced payment bond.

The advanced payment bond is issued by a bank or insurer which the ProjectManager has accepted. A reason for not accepting the proposed bank orinsurer is that its commercial position is not strong enough to carry the bond.The bond is for the amount of the advanced payment which the Contractorhas not repaid and is in the form set out in the Works Information. Delay inmaking the advanced payment is a compensation event.

X14.3 The advanced payment is repaid to the Employer by the Contractor in instal-ments of the amount stated in the Contract Data. An instalment is included ineach amount due assessed after the period stated in the Contract Data haspassed until the advanced payment has been repaid.

Option X15: Limitation of the Contractor’s liability for his design toreasonable skill and care

The Contractor’s design X15X15.1 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 designcomplied with the Works Information.

X15.2 If the Contractor corrects a Defect for which he is not liable under this contractit is a compensation event.



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Option X16: Retention (not used with Option F)

Retention X16X16.1 After the Price for Work Done to Date has reached the retention free amount,

an amount is retained in each amount due. Until the earlier of

. Completion of the whole of the works and

. the date on which the Employer takes over the whole of the works

the amount retained is the retention percentage applied to the excess of thePrice for Work Done to Date above the retention free amount.

X16.2 The amount retained is halved

. 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 ofthe works if this is before Completion of the whole of the works.

The amount retained remains at this amount until the Defects Certificate isissued. No amount is retained in the assessments made after the DefectsCertificate has been issued.

Option X17: Low performance damages

Low performancedamages

X17X17.1 If a Defect included in the Defects Certificate shows low performance with

respect to a performance level stated in the Contract Data, the Contractorpays the amount of low performance damages stated in the Contract Data.

Option X18: Limitation of liability

Limitation of liability X18X18.1 The Contractor’s liability to the Employer for the Employer’s indirect or conse-

quential loss is limited to the amount stated in the Contract Data.

X18.2 For any one event, the liability of the Contractor to the Employer for loss of ordamage to the Employer’s property is limited to the amount stated in theContract Data.

X18.3 The Contractor’s liability to the Employer for Defects due to his design whichare not listed on the Defects Certificate is limited to the amount stated in theContract Data.

X18.4 The Contractor’s total liability to the Employer for all matters arising under orin connection with this contract, other than the excluded matters, is limited tothe amount stated in the Contract Data and applies in contract, tort or delictand otherwise to the extent allowed under the law of the contract.

The excluded matters are amounts payable by the Contractor as stated in thiscontract for

. loss of or damage to the Employer’s property,

. delay damages if Option X7 applies,

. low performance damages if Option X17 applies and

. Contractor’s share if Option C or Option D applies.

X18.5 The Contractor is not liable to the Employer for a matter unless it is notified tothe Contractor before the end of liability date.



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Option X20: Key Performance Indicators (not used with Option X12)

Incentives X20.1 A Key Performance Indicator is an aspect of performance by the Contractor forwhich a target is stated in the Incentive Schedule. The Incentive Schedule isthe incentive schedule unless later changed in accordance with this contract.

X20.2 From the starting date until the Defects Certificate has been issued, theContractor reports to the Project Manager his performance against each of theKey Performance Indicators. Reports are provided at the intervals stated inthe Contract Data and include the forecast final measurement against eachindicator.

X20.3 If the Contractor’s forecast final measurement against a Key PerformanceIndicator will not achieve the target stated in the Incentive Schedule, hesubmits to the Project Manager his proposals for improving performance.

X20.4 The Contractor is paid the amount stated in the Incentive Schedule if thetarget stated for a Key Performance Indicator is improved upon or achieved.Payment of the amount is due when the target has been improved upon orachieved.

X20.5 The Employer may add a Key Performance Indicator and associated paymentto the Incentive Schedule but may not delete or reduce a payment stated inthe Incentive Schedule.



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OPTION Y

Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996

Definitions Y(UK)2Y2.1 (1) The Act is The Housing Grants, Construction and Regeneration Act 1996.

(2) A period of time stated in days is a period calculated in accordance withSection 116 of the Act.

Dates for payment Y2.2 The date on which a payment becomes due is seven days after the assess-ment date.

The final date for payment is fourteen days or a different period for payment ifstated in the Contract Data after the date on which payment becomes due.

The Project Manager’s certificate is the notice of payment from the Employerto the Contractor specifying the amount of the payment made or proposed tobe made and stating how the amount was calculated.

Notice of intention towithhold payment

Y2.3 If either Party intends to withhold payment of an amount due under thiscontract, he notifies the other Party not later than seven days (the prescribedperiod) before the final date for payment by stating the amount proposed tobe withheld and the reason for withholding payment. If there is more than onereason, the amount for each reason is stated.

A Party does not withhold payment of an amount due under this contractunless he has notified his intention to withhold payment as required by thiscontract.

Suspension ofperformance

Y2.4 If the Contractor exercises his right under the Act to suspend performance, itis a compensation event.

Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999

Third party rights Y(UK)3Y3.1 A person or organisation who is not one of the Parties may enforce a term of

this contract under the Contracts (Rights of Third Parties) Act 1999 only ifthe term and the person or organisation are stated in the Contract Data.

Option Z: Additional conditions of contract

Additional conditions ofcontract

Z1Z1.1 The additional conditions of contract stated in the Contract Data are part of

this contract.



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SCHEDULE OF COST COMPONENTS

This schedule is part of the conditions of contract only when Option C, D or Eis used. In this schedule the Contractor means the Contractor and not hisSubcontractors. An amount is included only in one cost component and only ifit is incurred in order to Provide the Works.

People 1 The following components of the cost of

. people who are directly employed by the Contractor and whose normalplace of working is within the Working Areas and

. people who are directly employed by the Contractor and whose normalplace of working is not within the Working Areas but who are working inthe Working Areas.

11 Wages, salaries and amounts paid by the Contractor for people paid accordingto the time worked while they are within the Working Areas.

12 Payments to people for

(a) bonuses and incentives(b) overtime(c) working in special circumstances(d) special allowances(e) absence due to sickness and holidays(f) severance related to work on this contract.

13 Payments made in relation to people for

(a) travel(b) subsistence and lodging(c) relocation(d) medical examinations(e) passports and visas(f) travel insurance(g) items (a) to (f) for dependants(h) protective clothing(i) meeting the requirements of the law(j) pensions and life assurance(k) death benefit(l) occupational accident benefits(m) medical aid(n) a vehicle(o) safety training.

14 The following components of the cost of people who are not directly employedby the Contractor but are paid for by him according to the time worked whilethey are within the Working Areas.

Amounts paid by the Contractor.

Equipment 2 The following components of the cost of Equipment which is used within theWorking Areas (including the cost of accommodation but excluding Equipmentcost covered by the percentage for Working Areas overheads).

21 Payments for the hire or rent of Equipment not owned by

. the Contractor,

. his parent company or

. by a company with the same parent company

at the hire or rental rate multiplied by the time for which the Equipment isrequired.


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22 Payments for Equipment which is not listed in the Contract Data but is

. owned by the Contractor,

. purchased by the Contractor under a hire purchase or lease agreementor

. hired by the Contractor from the Contractor’s parent company or from acompany with the same parent company

at open market rates, multiplied by the time for which the Equipment isrequired.

23 Payments for Equipment purchased for work included in this contract listedwith a time-related on cost charge, in the Contract Data, of

. the change in value over the period for which the Equipment is requiredand

. the time-related on cost charge stated in the Contract Data for theperiod for which the Equipment is required.

The change in value is the difference between the purchase price and eitherthe sale price or the open market sale price at the end of the period for whichthe Equipment is required. Interim payments of the change in value are madeat each assessment date. A final payment is made in the next assessmentafter the change in value has been determined.

If the Project Manager agrees, an additional item of Equipment may beassessed as if it had been listed in the Contract Data.

24 Payments for special Equipment listed in the Contract Data. These amountsare the rates stated in the Contract Data multiplied by the time for which theEquipment is required.

If the Project Manager agrees, an additional item of special Equipment maybe assessed as if it had been listed in the Contract Data.

25 Payments for the purchase price of Equipment which is consumed.

26 Unless included in the hire or rental rates, payments for

. transporting Equipment to and from the Working Areas other than forrepair and maintenance,

. erecting and dismantling Equipment and

. constructing, fabricating or modifying Equipment as a result of acompensation event.

27 Payments for purchase of materials used to construct or fabricate Equipment.

28 Unless included in the hire rates, the cost of operatives is included in the costof people.

Plant and Materials 3 The following components of the cost of Plant and Materials.

31 Payments for

. purchasing Plant and Materials,

. delivery to and removal from the Working Areas,

. providing and removing packaging and

. samples and tests.

32 Cost is credited with payments received for disposal of Plant and Materialsunless the cost is disallowed.

Charges 4 The following components of the cost of charges paid by the Contractor.

41 Payments for provision and use in the Working Areas of

. water,

. gas and

. electricity.

Schedule of Cost Components


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42 Payments to public authorities and other properly constituted authorities ofcharges which they are authorised to make in respect of the works.

43 Payments for

(a) cancellation charges arising from a compensation event(b) buying or leasing land(c) compensation for loss of crops or buildings(d) royalties(e) inspection certificates(f) charges for access to the Working Areas(g) facilities for visits to the Working Areas by Others(h) specialist services(i) consumables and equipment provided by the Contractor for the Project

Manager’s and Supervisor’s offices.

44 A charge for overhead costs incurred within the Working Areas calculated byapplying the percentage for Working Areas overheads stated in the ContractData to the total of people items 11, 12, 13 and 14. The charge includesprovision and use of equipment, supplies and services, but excludes accom-modation, for

(a) catering(b) medical facilities and first aid(c) recreation(d) sanitation(e) security(f) copying(g) telephone, telex, fax, radio and CCTV(h) surveying and setting out(i) computing(j) hand tools not powered by compressed air.

Manufacture andfabrication

5 The following components of the cost of manufacture and fabrication of Plantand Materials which are

. wholly or partly designed specifically for the works and

. manufactured or fabricated outside the Working Areas.

51 The total of the hours worked by employees multiplied by the hourly ratesstated in the Contract Data for the categories of employees listed.

52 An amount for overheads calculated by multiplying this total by the percen-tage for manufacturing and fabrication overheads stated in the ContractData.

Design 6 The following components of the cost of design of the works and Equipmentdone outside the Working Areas.


62 An amount for overheads calculated by multiplying this total by the percen-tage for design overheads stated in the Contract Data.

63 The cost of travel to and from the Working Areas for the categories of designemployees listed in the Contract Data.

Insurance 7 The following are deducted from cost

. the cost of events for which this contract requires the Contractor toinsure and

. other costs paid to the Contractor by insurers.



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SHORTER SCHEDULE OF COST COMPONENTS

This schedule is part of the conditions of contract only when Option A, B, C, Dor E is used. When Option C, D or E is used, this schedule is used by agree-ment for assessing compensation events. When Option C, D or E is used, inthis schedule the Contractor means the Contractor and not his Subcontrac-tors. An amount is included only in one cost component and only if it isincurred in order to Provide the Works.

People 1 The following components of the cost of

. people who are directly employed by the Contractor and whose normalplace of working is within the Working Areas,

. people who are directly employed by the Contractor and whose normalplace of working is not within the Working Areas but who are working inthe Working Areas and

. people who are not directly employed by the Contractor but are paid forby him according to the time worked while they are within the WorkingAreas.

11 Amounts paid by the Contractor including those for meeting the requirementsof the law and for pension provision.

Equipment 2 The following components of the cost of Equipment which is used within theWorking Areas (including the cost of accommodation but excluding Equipmentcost covered by the percentage for people overheads).

21 Amounts for Equipment which is in the published list stated in the ContractData. These amounts are calculated by applying the percentage adjustmentfor listed Equipment stated in the Contract Data to the rates in the publishedlist and by multiplying the resulting rate by the time for which the Equipmentis required.

22 Amounts for Equipment listed in the Contract Data which is not in thepublished list stated in the Contract Data. These amounts are the ratesstated in the Contract Data multiplied by the time for which the Equipment isrequired.

23 The time required is expressed in hours, days, weeks or months consistentlywith the list of items of Equipment in the Contract Data or with the publishedlist stated in the Contract Data.

24 Unless the item is in the published list and the rate includes the cost compo-nent, payments for

. transporting Equipment to and from the Working Areas other than forrepair and maintenance,

. erecting and dismantling Equipment and

. constructing, fabricating or modifying Equipment as a result of acompensation event.

25 Unless the item is in the published list and the rate includes the cost compo-nent, the purchase price of Equipment which is consumed.

26 Unless included in the rate in the published list, the cost of operatives isincluded in the cost of people.

27 Amounts for Equipment which is neither in the published list stated in theContract Data nor listed in the Contract Data, at competitively tendered oropen market rates, multiplied by the time for which the Equipment is required.


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Plant and Materials 3 The following components of the cost of Plant and Materials.

31 Payments for

. purchasing Plant and Materials,

. delivery to and removal from the Working Areas,

. providing and removing packaging and

. samples and tests.

32 Cost is credited with payments received for disposal of Plant and Materialsunless the cost is disallowed.

Charges 4 The following components of the cost of charges paid by the Contractor.

41 A charge calculated by applying the percentage for people overheads statedin the Contract Data to people item 11 to cover the costs of

. payments for the provision and use in the Working Areas of water, gasand electricity,

. payments for buying or leasing land, compensation for loss of crops orbuildings, royalties, inspection certificates, charges for access to theWorking Areas, facilities for visits to the Working Areas by Others and

. payments for equipment, supplies and services for offices, drawing office,laboratories, workshops, stores and compounds, labour camps, cabins,catering, medical facilities and first aid, recreation, sanitation, security,copying, telephone, telex, fax, radio, CCTV, surveying and setting out,computing, and hand tools not powered by compressed air.

42 Payments for cancellation charges arising from a compensation event.

43 Payments to public authorities and other properly constituted authorities ofcharges which they are authorised to make in respect of the works.

44 Consumables and equipment provided by the Contractor for the Project Man-ager’s and Supervisor’s office.

45 Specialist services.

Manufacture andfabrication

5 The following components of the cost of manufacture and fabrication of Plantand Materials, which are

. wholly or partly designed specifically for the works and

. manufactured or fabricated outside the Working Areas.

51 Amounts paid by the Contractor.

Design 6 The following components of the cost of design of the works and Equipmentdone outside the Working Areas.


62 An amount for overheads calculated by multiplying this total by the percen-tage for design overheads stated in the Contract Data.

63 The cost of travel to and from the Working Areas for the categories of designemployees listed in the Contract Data.

Insurance 7 The following are deducted from cost

. costs against which this contract required the Contractor to insure and

. other costs paid to the Contractor by insurers.



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CONTRACT DATA

Part one – Data provided by the Employer

Completion of the data in full, according to the Options chosen, is essential tocreate a complete contract.

Statements given in allcontracts

1 General . The conditions of contract are the core clauses and the clauses for mainOption . . . . . , dispute resolution Option . . . . . and secondary Options . . . . .of the NEC3 Engineering and Construction Contract (June 2005).

. The works are

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Employer is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Project Manager is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Supervisor is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Adjudicator is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Works Information is in

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Site Information is in

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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. The boundaries of the site are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The language of this contract is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The law of the contract is the law of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The period for reply is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.

. The Adjudicator nominating body is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The tribunal is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The following matters will be included in the Risk Register

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Time . The starting date is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The access dates are

Part of the Site Date

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Contractor submits revised programmes at intervals no longer than

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.

4 Testing and Defects . The defects date is . . . . . weeks after Completion of the whole of the works.

. The defect correction period is . . . . . . . . . . . . . . . . . . . . . . weeks except that

. The defect correction period for . . . . . . . . . . . . . is . . . . . . . . . . . . weeks

. The defect correction period for . . . . . . . . . . . . is . . . . . . . . . . . . . weeks.

5 Payment . The currency of this contract is the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The assessment interval is . . . . . . . . . . . . . . . . . weeks (not more than five).

. The interest rate is . . . . . % per annum (not less than 2) above the . . . . . .

rate of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . bank.



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6 Compensation events . The place where weather is to be recorded is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The weather measurements to be recorded for each calendar month are

. the cumulative rainfall (mm)

. the number of days with rainfall more than 5 mm

. the number of days with minimum air temperature less than 0 degreesCelsius

. the number of days with snow lying at . . . . . . . . . . . . . . . . . . hours GMT

. and these measurements:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The weather measurements are supplied by . . . . . . . . . . . . . . . . . . . . . . . . . .

. The weather data are the records of past weather measurements for each

calendar month which were recorded at . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and which are available from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Where no recorded data are available

. Assumed values for the ten year return weather data for each weathermeasurement for each calendar month are

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8 Risks and insurance . The minimum limit of indemnity for insurance in respect of loss of ordamage to property (except the works, Plant and Materials and Equipment)and liability for bodily injury to or death of a person (not an employee of theContractor) caused by activity in connection with this contract for any oneevent is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The minimum limit of indemnity for insurance in respect of death of orbodily injury to employees of the Contractor arising out of and in the courseof their employment in connection with this contract for any one event is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Optional statements If the tribunal is arbitration

. The arbitration procedure is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The place where arbitration is to be held is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The person or organisation who will choose an arbitrator

. if the Parties cannot agree a choice or

. if the arbitration procedure does not state who selects an arbitrator is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contract Data Part 1


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If the Employer has decided the completion date for the whole of the works

. The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .

If the Employer is not willing to take over the works before the CompletionDate

. The Employer is not willing to take over the works before the CompletionDate.

If no programme is identified in part two of the Contract Data

. The Contractor is to submit a first programme for acceptance within . . . . . . .weeks of the Contract Date.

If the Employer has identified work which is to meet a stated condition by akey date

. The key dates and conditions to be met are

condition to be met key date

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the period in which payments are made is not three weeks and Y(UK)2 isnot used

. The period within which payments are made is . . . . . . . . . . . . . . . . . . . . . . . .

If Y(UK)2 is used and the final date for payment is not 14 days after the datewhen payment is due

. The period for payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If there are additional compensation events

. These are additional compensation events

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If there are additional Employer’s risks

. These are additional Employer’s risks

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the Employer is to provide Plant and Materials

. The insurance against loss of or damage to the works, Plant and Materialsis to include cover for Plant and Materials provided by the Employer for anamount of

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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If the Employer is to provide any of the insurances stated in the InsuranceTable

. The Employer provides these insurances from the Insurance Table

1. Insurance against . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cover/indemnity is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The deductibles are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .







If additional insurances are to be provided

. The Employer provides these additional insurances










. The Contractor provides these additional insurances







If Option B or D is used

. The method of measurement is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

amended as follows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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If Option C or D is used

. The Contractor’s share percentages and the share ranges are

share range Contractor’s share percentage

less than . . . . . . . . . . . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %

from . . . . . . . . .% to . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %

from . . . . . . . . .% to . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %

greater than. . . . . . . . . . . . . . . . . % . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

If Option C, D, E or F is used

. The Contractor prepares forecasts of Defined Cost for the works at intervals

no longer than . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks.

. The exchange rates are those published in. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (date).

If Option X1 is used

. The proportions used to calculate the Price Adjustment Factor are

0. . . . . . . . . . . linked to the index for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. . . . . . . . . . . non-adjustable———————1.00

. The base date for indices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The indices are those prepared by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


. The Employer will pay for the items or activities listed below in the currenciesstated

items and activities other currency total maximum paymentin the currency

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The exchange rates are those published in . . . . . . . . . . . . . . . . . . . . . . . . . . .

on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (date).



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. The completion date for each section of the works is

section description completion date

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Options X5 and X6 are used together

. The bonus for each section of the works is

section description amount per day

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Options X5 and X7 are used together

. Delay damages for each section of the works are

section description amount per day

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remainder of the works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option X6 is used (but not if Option X5 is also used)

. The bonus for the whole of the works is . . . . . . . . . . . . . . . . . . . . . . . per day.


. Delay damages for Completion of the whole of the works are . . . . . . per day.


. The Client is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Client’s objective is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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. The Partnering Information is in

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


. The amount of the performance bond is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


. The amount of the advanced payment is . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Contractor repays the instalments in assessments starting not lessthan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . weeks after the Contract Date.

. The instalments are. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(either an amount or a percentage of the payment otherwise due)

. An advanced payment bond is/is not required.


. The retention free amount is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The retention percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.


. The amounts for low performance damages are

amount performance level

. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


. The Contractor’s liability to the Employer for indirect or consequential loss islimited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. For any one event, the Contractor’s liability to the Employer for loss of ordamage to the Employer’s property is limited to. . . . . . . . . . . . . . . . . . . . . . .

. The Contractor’s liability for Defects due to his design which are not listedon the Defects Certificate is limited to . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The Contractor’s total liability to the Employer for all matters arisingunder or in connection with this contract, other than excluded matters,is limited to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The end of liability date is . . . . . . . . . . . .years after the Completion of thewhole of the works.


. The incentive schedule for Key Performance Indicators is in . . . . . . . . . . . . . .

. A report of performance against each Key Performance Indicator is providedat intervals of . . . . . . . . . . months.



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If Option Y(UK)3 is used

. term . person ororganisation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option Z is used

. The additional conditions of contract are . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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Part two – Data provided by the Contractor

Completion of the data in full, according to the Options chosen, is essentialto create a complete contract.

Statements given in allcontracts

. The Contractor is

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The direct fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

. The subcontracted fee percentage is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

. The working areas are the Site and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The key people are

(1) Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Job . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The following matters will be included in the Risk Register

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Optional statements If the Contractor is to provide Works Information for his design

. The Works Information for the Contractor’s design is in

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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If a programme is to be identified in the Contract Data

. The programme identified in the Contract Data is . . . . . . . . . . . . . . . . . . . . . .

If the Contractor is to decide the completion date for the whole of the works

. The completion date for the whole of the works is . . . . . . . . . . . . . . . . . . . . . .

If Option A or C is used

. The activity schedule is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option B or D is used

. The bill of quantities is. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option A, B, C or D is used

. The tendered total of the Prices is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option F is used

. Work which the Contractor will do himself is

activity price (lump sum or unit rate)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option A or B is used

Data for the ShorterSchedule of Cost

Components

. The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

. The published list of Equipment is the last edition of the list published by

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for adjustment for Equipment in the published list is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (state plus or minus).

. The rates for other Equipment are

Equipment size or capacity rate

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The hourly rates for Defined Cost of design outside the Working Areas are

category of employee hourly rate

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.



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. The categories of design employees whose travelling expenses to and fromthe Working Areas are included in Defined Cost are

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If Option C, D or E is used

Data for Schedule of CostComponents

. The listed items of Equipment purchased for work on this contract, with anon cost charge, are

Equipment time-related charge per time period

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per . . . . . . . . .

. The rates for special Equipment are


. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for Working Areas overheads is . . . . . . . . . . . . . . . . . . . . . %.

. The hourly rates for Defined Cost of manufacture and fabrication outsidethe Working Areas are


. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for manufacture and fabrication overheads is . . . . . . . . . . %.


Data for both schedules ofcost components

. The hourly rates for Defined Cost of design outside the Working Areas are


. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for design overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.



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. The categories of design employees whose travelling expenses to andfrom the Working Areas are included as a cost of design of the works andEquipment done outside of the Working Areas are

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


Data for the ShorterSchedule of Cost

Components

. The percentage for people overheads is . . . . . . . . . . . . . . . . . . . . . . . . . . . . %.

. The published list of Equipment is the last edition of the list published by

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. The percentage for adjustment for Equipment in the published list is

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . % (state plus or minus).

. The rates for other Equipment are


. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .



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Index by clause numbers (Option clauses indicated by their letters, main clause heads by bold numbers).Terms in italics are identified in Contract Data, and defined terms have capital initial letters.

acceleration 36, A36.3, B36.3, C36.3, D36.3, E36.4,F36.4

compensation events 60.1(9)Key Date 36.1quotations 36.1, B11.2(21), D11.2(21)

acceptanceaddition to Working Areas 15.1conditions of subcontract 26.3contract data for subcontract C26.4, D26.4, E26.4,

F26.4Contractor’s communication 13.4, 13.8, 14.1Contractor’s design 21.2, 21.3Defects 44, 60.1(1)(9)Equipment design 23.1form of communication 13.1insurance policies/certificates 85.1, 87.1, 87.2programme (first/revised) 31.3, 32.2, 50.3,

64.1�2, A31.4, A36.3, B36.3, C31.4, C36.3,D36.3

quotations 44.2, 60.1(9), 62.3, 65.1, A36.3,A65.4, B36.3, C36.3, D36.3, E36.4, F36.4

reasons for withholding 13.4, 13.8, 15.1, 21.2,23.1, 24.1, 26.2�3, 31.3, 60.1(9), 85.1,87.1, A54.3, C26.4, D26.4, E26.4, F26.4,X13.1

replacement Contractor’s employee 24.1subcontract conditions 26.3Subcontractor 26.2, 91.2

acceptance procedure C11.2(25), D11.2(25),E11.2(25)

Works Information F11.2(26)Accepted Programme 62.2

absence 64.2and Activity Schedule A54.2, A54.3, C54.2, C54.3changes 32.1, 63.7dates/times 33.1, 60.1(2)(3)(5), 63.3definition 11.2(1)prevention 19.1, 60.1(19)termination 91.7see also programme

access 27.2, 43.4to Site 31.2and use of Site 33

access date 30.1, 31.2Site 33.1

accounts and records, Contractor’s C11.2(25), C52.2,C52.3, D11.2(25), D52.2�3, E11.2(25), E52.2,E52.3, F11.2(26), F52.2, F52.3

actions 10, 11.2(13,14), 14.2, 16.3, X12.2activity schedule A11.2(20), C11.2(20)Activity Schedule A11.2(20,30), A31.4, A54.1�3,

A63.12, C11.2(20)(30), C31.4, C54.1�3,C63.12

revised A54.2, A54.3, C54.2, C54.3

ActsContracts (Rights of Third Parties) (1999) Y(UK)3Housing Grants, Construction and Regeneration

(1996) W1, W2, Y(UK)2additional conditions of contract Z1adjudication

dispute resolution W1.3(1�11), W2.3(1�12)timings W1.3(8), W1.3(11), W2.3(2)(8)(11�12)

Adjudication Table W1.3(1)Adjudicator

decisions 51.3dispute resolution W1.2(1-5), W2.2(1�5)nominating body W1.2(3), W2.2(3)not arbitrator W1.2(2), W2.2(2)replacement W1.2(4), W2.2(4)resignation of W1.2(3)tribunal W1.3(2)(10), W2.3(11)tribunal reviews W1.4(1�4)(6), W2.4(1�3)

administration order 91.1advanced payment 93.1, X14.1�3

repayment X14.3advanced payment bond X14.2advanced payment(s) 93.1, X14.1�3agents of Adjudicator W1.2(5), W2.2(5)agreement, Parties/Party 12.4ambiguities 17, 60.3, 63.8, B60.6, D60.6amount due

adjustment for inflation X1.1(b), X1.2, X1.4, X1.5and advanced payment repayment 93.1, X14.3assessing 50, 51.1, 51.3, 90.4, 93.1, C50.6,

C53.3�4, D50.6, E50.7, F50.7, X1.1(b), X1.2,X1.4

Contractor’s share D53.7�8correction of assessment 50.5, 51.3, X1.2definition 50.2payment 51.1, 51.3retention in 93.1, X16.1on termination 90.2, 90.4, 93.1, 93.2, A93.3

amount retained 50.3, X16.1, X16.2applicable law 11.2(5), 21.2, 23.1, 84.2

tests and inspections 40.1approval from Others, Contractor’s design 27.1arbitration procedure W1.4(5), W2.4(4)arrangement with creditors 91.1assessment

Adjudicator W1.3(7), W2.3(7)amount due 50, 51.1, 51.3, 90.4, 93.1, C50.6,

C53.3, C53.4, D50.6, D53.7, D53.8, E50.7,F50.7, X1.1(b), X1.2, X1.4, X1.5

compensation events 62.2�3, 63, 64, 65.1�2,A63.10, A63.12, A65.4, B63.10�13, C52.2,C63.11�12, C63.15, D11.2(25), D52.2,D63.13, D63.15, E11.2(25), E52.2, E63.15,F52.2, X1.3


Contractor’s share C53.1, C53.3�4, C93.4, C93.6,D53.5, D53.7�8, D93.5�6

Defect(s) correction cost 45.2interest 51.2, 51.3tests/inspections cost 40.6

assessment date 50.1, 50.4, 51.1�2, C11.2(29),D11.2(29), E11.2(29), F11.2(29), X7.2, Y2.2

assessment interval 50.1assignment of benefit 92.2availability of resources C11.2(25), D11.2(25),

E11.2(25)

bank bonds X13.1, X14.2bankruptcy 91.1base date X1.1(a), X1.3Base Date Index X1.1(a)bill of quantities B11.2(21), D11.2(21)Bill of Quantities B11.2(21)(28)(31), B55.1,

B60.4�7, B63.13, D11.2(21)(31)(33), D55.1,D60.4�7, D63.13

binding decisions, Adjudicator W1.3(10), W2.3(11)bodily injury 84.2bond(s) 91.2, X13.1, X14.2bonus for early Completion X6boundaries of the site 11.2(15)breach of contract 60.1(18)breach of statutory duty 80.1

calculations, assessment of compensation events forSubcontractors C52.2, D52.2, E52.2, F52.2

certificate(s)/certificationcommunication of 13.1, 13.6Completion 30.2, 35.2Defects 43.3, 50.1payment 50.5, 51.1�3, 90.4, 91.4take-over date 35.3, 60.1(15)termination 90.1, 90.3, 90.5, C93.4, D93.5

changed Completion Date X7.2changed decision(s) 60.1(8), 61.1�3change(s) in Activity Schedule A54.2, A63.12, C54.2,

C63.12change(s) in forecast Prices, Completion Date and

Key Dates due to compensation events E65.3,F65.3

change(s) in the law X2change(s) of Prices, Completion Date and Key Dates

due to compensation events A65.4, B65.4,C65.4, D65.4

change(s) of Prices due to compensation events 62.2,63.1, A63.12, B60.6, B63.13, C63.11, D60.6,D63.13

change(s) in Works Information 14.3, 18.1, 44.1,44.2, 60.1(1), 63.8�9

civil commotion/war risks 80.1claims

Employer’s risk 80.1indemnity against 83.1, 83.2

co-operation at risk reduction meeting 16.3co-operation with Others 25.1�3co-operation and trust 10.1, 26.3, X12.3(1)communications 13

and acceptance of submission 13.4, 13.8, 14.1

address to which sent 13.2Adjudicator W1.3(6), W2.3(6)assessment of compensation events for

Subcontractors C52.2, D52.2, E52.2, F52.2certificate(s) 13.6form defined 13.1language for 13.1notification(s) 13.7period for reply 13.3, 13.5receipt of 13.2time allowed for reply 13.3, 13.5, 31.3, 32.2,

60.1(6)time when effective 13.2

compensationEmployer’s risk 80.1see also indemnity

compensation events 60amount due affected by 51.3assessing 62.2�3, 63, 64, 65.1�2, A63.10,

A63.12, A65.4, B63.10�13, C52.2,C63.11�12, C63.15, D11.2(25), D52.2,D63.13, D63.15, E11.2(25), E52.2, E63.15,F52.2, X1.3

assumptions made 60.1(17), 61.6, 63.7, 65.2Completion Date affected by 62.2, A65.4, B65.4,

C65.4, D65.4Completion Date notification 61.3Contractor 60.1(1)(8)(10)(12)(19), 60.2, 60.3,

61.1�6, F20.5and Defined Cost 61.4definitions 13.8, 60.1, B60.4�7, D60.4�D60.7,

X2.1, X14.2implementing 32.1, 65, A65.4, B65.4, C65.4,

D65.4, E65.3, F65.3Key Dates affected by 60.1(4), 61.3, 62.2, A65.4,

B60.5, B65.4, C65.4, D60.5, D65.4notifying 61, X2.1payment to Subcontractor D11.2(25), C11.2(25),

E11.2(25), F11.2(26)performance suspension Y2.4Prices affected by 62.2, 63.1, A63.10, A65.4,

B60.6, B63.10, B65.4, C65.4, D60.4, D60.6,D63.13, D65.4, X2.1

Prices not affected by 61.4Project Manager’s assessments 64, A63.10, A65.4,

B63.10, C63.15, D63.15, E63.15quotations 61.4, 61.5, 62, 64.1, 64.3�4, 65.1,

A11.2(22), B11.2(22), C11.2(25),D11.2(25), E11.2(25), F11.2(26), X2.1

completed activities A11.2(27)completed work, definition B11.2(28)Completion 30acceleration of 36.1bonus paid if early X6.1certification of 30.2, 35.2and compensation events 61.4, B60.5, D60.5decision on date 30.2definition 11.2(2)early warning of possible delay 16.1Key Date 16.1and programme 31.2, 32.2section of the works X5.1

Index


Completion (continued)and take over of works 35.1�2, 35.3, 60.1(15),

X16.1, X16.2whole of works 32.2, 50.1, 60.1(13), 92.1, 93.2,

C20.4, C53.3, D20.4, D53.7, E20.4, F20.4,X1.2, X16.1

work necessary 11.2(2)(13)Completion Date (completion date)

accelerated programme 36.1, A36.3, B36.3, C36.3,D36.3, E36.4, F36.4

change to later date X7.2and compensation events 60.1(13)(15), 61.4,

62.2, 63.3, A65.4, B65.4, C65.4, D65.4,E65.3, F65.3

definition 11.2(3)if Defect(s) accepted 44.2notification of compensation events 61.3Price Adjustment Factor calculation X1.2in programme (first/revised) 31.2, 36.1, A36.3,

B36.3, C36.3, D36.3rights to change 63.4section of the works X5.1and take over of works 35.1�2, 60.1(15)and weather measurement 60.1(13)work to be done by 11.2(2), 30.1

Condition 11.2(9), 25.3, 30.3, 31.2, 63.3, 63.9,B60.5, D60.5

conditions, identified and defined terms 11.2(9)conditions of contract

identified and defined terms 11.1for Subcontract 26.3

conditions of contractadditional Z1.1interpretation 12.3and sectional Completion X5.1

Contract Data/contract dataaddresses for communications 13.2Adjudicator identified W1.2(3), W2.2(3)conditions of contract Z1.1conditions of contract 11.1currencies for payment X3.1, X3.2delay damages X7.1documents referred to in 11.2(16)(19)early Completion bonus X6.1Employer’s risks 80.1forecasts of Defined Cost C20.4, D20.4, E20.4,

F20.4insurance 84.1, 87.2low performance damages X17.1named key person 24.1payment 51.2, X14.1, X14.3performance bond X13.1performance level X17.1price adjustment for inflation X1.1(c), X1.3programme 11.2(1), 31.1, 50.3start-to-Completion interval 32.2for subcontract C26.4, D26.4, E26.4, F26.4take over of works 35.1terms identified 11.1third party rights Y3.1time allowances 13.4, 31.1weather data/weather measurement 60.1(13)

Contract Date 11.2(4), B60.4, D60.4, X2.1, X4.1,X13.1, X14.2

Accepted Programme 60.1(19)compensation events 60.1(12)(19)prevention 19.1termination 91.7

Contractoracceleration 36.1, 36.2acceptance of communication/proposal/submission

13.4, 13.8, 14.1, 15.1, 21.2, 87.2access 27.2, 43.4access and use of Site 33.1accounts and records C11.2(25), C52.2�3,

D11.2(25), D52.2�3, E11.2(25), E52.2,E52.3, F11.2(26), F52.2, F52.3

actions 10.1Activity Schedule A31.4, A54.2, C31.4, C54.2adding to working areas 15.1adjudication W1.3(1�2)(4), W2.3(3)(7)advanced payment X14.1, X14.3advice to Project Manager C20.3, D20.3, E20.3,

F20.3and ambiguities/inconsistencies 17.1amount due to be paid to 50.2, 50.4, 51.1assessment of compensation events 62.2, 64.1,

B63.13, C63.15, D63.13, D63.15, E63.15Bill of Quantities B11.2(28), B63.13, D63.13certificates issued to 13.6co-operation 10.1, 25.1�3compensation events 60.1(1)(8)(10)(12)(19),

60.2, 60.3, 61.1�6, F20.5costs 52.1, C40.7, D40.7decisions communicated to 30.2, 50.1, 60.1(8)default(s) 91.2, 91.3, 91.6Defect(s) 11.2(5), 42.2Defect(s) acceptance/non-correction 44.1, 44.2Defect(s) correction 11.2(2)(6), 43.1�2, 43.4,

45.1�2, C11.2(25), D11.2(25), E11.2(25)delay damages X7.1delivery of Plant and Materials 41.1, 93.1early Completion bonus X6.1early warning 16.1, 16.2, 16.4, 61.5, 63.5Equipment 11.2(7), 23.1, 31.2, 92.2facilities and services provided/paid for by 40.2fault 61.1, 61.4, C11.2(25), D11.2(25),

E11.2(25), F11.2(26)health and safety 27.4illegal/impossible requirements 18.1implementing compensation events 32.1, 65.1,

E65.3, F65.3indemnity 83.1instruction(s) 14.3, 24.2, 27.3, 34.1, 36.1,

60.1(10), 61.2, 61.4�6, 62.1, 62.3�4, 82.1,87.1, 91.6, C26.4, D26.4, E26.4, F26.4, X2.1

insurance 84.1�2, 85.1, 85.3�4, 86.1, 87.1�3Key Date 14.3, 30.3leaving Site/Working Areas 92.2liabilities 14.1, 61.4, X15.1liability limitation X18.1�5low-performance damages X17.1management responsibility F20.2marking of Equipment, Plant and Materials 71.1



method of working 35.3, A54.2, C54.2non-corrected Defects 45.1�2notification of compensation events 61.1�6, X2.1notified of delegate for Project Manager/Supervisor

14.2notified of replacement for Project Manager/

Supervisor 14.4objects of value/historical-interest 73.1obligations 91.2parent company guarantee X4.1as Party to contract 11.2(11)payment(s) 40.6, 45.1�2, 51.1, 86.1, C50.6,

C52.2, D50.6, D52.2, E50.7, E52.2, F50.7,F52.2, X3.1, X3.2

performance bond X13.1period for reply 13.3�5, 32.2physical conditions 60.1(12), 60.2, 60.3Plant and Materials 27.2, 41.1, 80.1, 92.2, 93.1prevention 19.1programme (first/revised) 11.2(1), 31.1�3,

32.1�2, 50.3, 62.2, 64.1, 64.2proposed instruction/changed-decision 61.2quotations 36.1, 36.2, 44.2, 62.1�5, 64.1reaction to compensation event 63.7repairs/replacements 82.1reply to communication 13.3�5, 31.3, 32.2,

60.1(6), 62.3�6responsibilities 14.1, 20�7, C20.3, C20.4, C26.4,

D20.3�4, D26.4, E20.3�4, E26.4, F20.2�4,F26.4

Risk Register revision 16.4risks 63.6, 81.1, 84.2, 85.4searching (for Defects) 42.1starting/stopping work 30.1, 34.1, 91.6subcontract contract data C26.4, D26.4, E26.4,

F26.4subcontracted work C20.3, D20.3, E20.3, F20.2,

F20.3Subcontractor 11.2(17), 26.1�3take over of works 35.3, 43.4, 80.1termination 80.1, 90.2, 90.4�5, 91.2, 91.4,

91.6�7tests and inspections 40.2, 40.3, 40.5, 40.6, 41.1,

C40.7, D40.7title to objects and materials within Site 73.1, 73.2title to Plant and Materials 70.1, 70.2Works Information 11.2(19), 14.3, 63.8�9

Contractor’s design 21acceptance 21.2, 21.3approval from Others 27.1and Defects 11.2(5)and Equipment design 23.1liability of Contractor 14.1limitation of Contractor’s liability X15.1management by Contractor F20.2part submission 21.3submission to Project Manager 21.2use by Employer 22.1and Works Information 21.1, 21.2, 60.1(1)

Contractor’s employees 24.1insurance 84.1removing 24.2

Contractor’s share C50.6, C53, C53.1�C53.4, C93.4,C93.6, D50.6, D53, D93.5�6

Contractor’s share percentage C53.1, D53.5Contracts (Rights of Third Parties) Act (1999) Y(UK)3Core Group X12.2(3-5)composition X12.1(3)

correctingassessment of amount due 50.5, 51.3, X1.2assumptions about compensation events 60.1(17),

61.6Bill of Quantities mistakes B60.6, D60.6Defects 11.2(2), 32.1, 40.4, 43, 45.1�2,

C11.2(25), D11.2(25), E11.2(25)cost components data A11.2(22), C11.2(23),

C63.15, D11.2(23), D63.15, E11.2(27),E63.15

costsadditional costs 25.3Contractor 52.1, C40.7, D40.7Defect(s) correction 45.1�2due to Adjudicator’s/tribunal’s decision 51.3Employer’s risk 80.1indemnity against 83.1, 83.2insurance 86.1, 87.3test/inspection repeat 40.6see also excess costs

creditors, arrangement made with 91.1currency of this contract 51.1, C50.6, D50.6, E50.7,

F50.7, X3.1, X3.2

damage(s)delay X7.1, X7.2Employer’s risk 80.1insurance against 84.1low performance X17.1repair by Contractor 82.1

death insurance 84.1decision(s)Adjudicator or tribunal 51.3assessment date 50.1and compensation events 60.1(8), 61.1, 61.4�6date of Completion 30.2Project Manager 30.2, 50.1, 60.1(8), 61.1�2,

61.4�6, 63.5, 64.1, C11.2(25), D11.2(25),E11.2(25), F11.2(26)

risk reduction meeting 16.4default(s)Contractor’s 91.2, 91.3, 91.6Employer’s 91.6

defect correction period 40.5, 43.2�4, 45.1Defect(s)accepting 44, 60.1(1)(9)Contractor’s compensation X15.2Contractor’s liability 11.2(5), X15.1, X18.3correcting 11.2(2)(6), 32.1, 40.4, 43, 45.2,

C11.2(25), D11.2(25), E11.2(25)correction after Completion C11.2(23)defect correction period 40.5, 43.2�4, 45.1definition 11.2(5)liability limitation X18.3loss/damage/wear due to 80.1low performance damages X17.1

Index


Defect(s) (continued)notifying 11.2(6), 42.2, 43.1�2and priced contract(s) A11.2(27), B11.2(28)searching (for) 42.1, 60.1(10)and tests/inspections 40.4, 40.6uncorrected 45, 60.1(9)

Defects Certificate 11.2(6), 43.3and assessment of amount due 50.1and Contractor’s risks 81.1�2and Employer’s risks 80.1and insurance cover 84.2Key Performance Indicators X20.2liability limitation X18.3low performance damages X17.1and retention X16.2

defects date 11.2(6), 40.5and compensation events 61.7searching/notifying Defects 42.1�2testing 42.1�2

Defined Cost 52, C11.2(29), D11.2(29),E11.2(29)(32), F11.2(29)(32)

in amount due on termination 93.1, 93.2and compensation events 61.4, 63.1�2, 63.7,

A63.10, B60.4, B63.10, B63.13, C63.11,D60.4, D63.11, X1.3, X2.1

definition(s) A11.2(22), B11.2(22), C11.2(23),D11.2(23), E11.2(23), F11.2(24)

and Fee calculation 11.2(8), 63.1, C11.2(29),D11.2(29), E11.2(29)

forecast C20.4, D20.4, E20.4, F20.4payment on termination D93.5payments made by Contractor C50.6, C52.2,

C52.3, D50.6, D52.2, D52.3, E50.7, E52.2,E52.3, F50.7, F52.2, F52.3

defined terms 11, X1.1Delay/delay

and compensation events 62.2, 63.3, B60.5, D60.5damages X7.1, X7.2early warning to be given 16.1plans to deal with 32.1and priced contract(s) A11.2(27), B11.2(28)and tests/inspections 40.5, 60.1(11)

delegation by Project Manager/Supervisor 14.2delivery, testing and inspection before 41demolition 22.1, 73.2design

Contractor’s 11.2(5), 21, 22.1, 23.1, 27.1Employer’s 80.1of Equipment 23of works C20.3, D20.3, E20.3, F20.3see also Contractor’s design

direct fee percentage 11.2(8), 93.2Disallowed Cost C11.2(23), D11.2(23), E11.2(23),

F11.2(24)definition(s) C11.2(25), D11.2(25), E11.2(25),

F11.2(26)discounts, deduction from prices 52.1dismantling (during searching) 42.1dispute resolution

unless United Kingdom Housing Grants,Construction and Regeneration Act (1996)applies W1

when United Kingdom Housing Grants, Constructionand Regeneration Act (1996) applies W2

early Completion bonus X6.1early warning 16

effects 16.1, 32.1Key Date 16.1responsibility 16.1, 61.5, 63.5, C11.2(25),

D11.2(25), E11.2(25), F11.2(26)Risk Register 16.1, 16.3�4

employees, of Adjudicator W1.2(5), W2.2(5)Employer

access 43.4access and use of Site 33.1, 60.1(2)actions 10.1adjudication W1.3(1)advanced payment by X14.1�3amount due to be paid by 50.2, 51.1breach of contract by 60.1(18)certificates issued to 13.6co-operation 25.2, 25.3compensation events 60.1(1-3)(5)(14)(16)(18)Completion of works on termination 93.1, 93.2Contractor’s design 22.1Contractor’s parent company guarantee X4.1dates 31.2, 33.1, 60.1(2)(3)(5)default 91.6Defects Certificate 43.3facilities and services provided by 40.2, 60.1(16)fault 80.1hindered by Contractor 91.3indemnity 83.1insurance 84.1, 85.4, 86.1, 87as Party to contract 11.2(11)payments by 51.1payments to C11.2(23), D11.2(23), E11.2(23),

F11.2(23)performance bond X13.1Plant and Materials 31.2, 80.1programme 31.2, 60.1(5)repayment of delay damages X7.1replacement of Project Manager/Supervisor 14.4responsibilities 83.2, 87.2rights to change 63.4risks 60.1(14), 80, 81.1, 83.2, 85.4take over of works 35.1�3, 43.4, 80.1, X6.1, X7.1,

X16.1, X16.2termination 80.1, 90.2, 91.2�3, 91.6�7, 92.1�2,

93.1�2tests and inspections 40.2, 40.6, 60.1(16), C40.7,

D40.7title to Equipment, Plant and Materials 93.1title to Plant and Materials 70, 93.1use of works by 11.2(2), 35.3working with see co-operationWorks Information 22.1, 60.1(1)(5)(16)

Employer’s design 80.1Equipment

definition 11.2(7)design of 23left on Site 72.1, 80.1loss or damage 84.2



loss, damage or wear 80.1marking of 70.1, 71and programme 31.2rates in Contract Data X1.3removal of 72, 92.2, 93.2termination 92.2title 70.1, 70.2, 92.2use by Employer 92.2see also Plant and Materials

errors, Adjudicator W1.3(11)excavation materials 73.2excess costs, Contractor’s share C53.2exchange rates C50.6, D50.6, E50.7, F50.7, X3.1experienced contractor

and compensation events 60.1(12), 60.2, 61.5,63.5

and physical conditions on Site 60.1(12), 60.2and prevention 19.1, 60.1(19), 91.7

extension of time for decision/quotation/reply 13.5,62.5

facilities and servicesfor tests/inspections 40.2, 42.1, 60.1(16)see also services

failure to pay in time, actions to be taken 91.4fault of Contractor 61.1, 61.4, C11.2(25),

D11.2(25), E11.2(25), F11.2(26)fault of Employer or his design 80.1Fee C11.2(29), D11.2(29), E11.2(29)(32),

F11.2(29,32)calculation(s) 11.2(8), 63.1, 93.2, C50.6, D50.6,

E50.7, F50.7see also payment(s)

fee percentage see direct fee percentagefloat, provision in programme 31.2forecasts 61.6, 63.1, 65.2, 93.2, C20.4, C53.3,

D20.4, D53.7, E20.4, E65.3, F20.4, F65.3form of communications 13.1fraud, and insurance 85.2

grouping of activities A11.2(27)guarantee(s) 91.2, X4.1

health and safetyContractor 27.4regulation(s) 91.3requirements 31.2Works Information 27.4

historical-interest objects found within Site 60.1(7),73.1

Housing Grants, Construction and Regeneration Act(1996) W1, W2, Y(UK)2

identified terms 11illegal requirements 18implementing compensation events 32.1, 65, A65.4,

B65.4, C65.4, D65.4, E65.3, F65.3impossible requirements 18Incentive Schedule X20.1, X20.3�5incentive schedule X20.1incentives, Partnering X12.4inconsistencies 17, 60.3, 63.8, B60.6, D60.6

indemnity 83informationin Activity Schedule A54.1, C54.1in Bill of Quantities B55.1, D55.1later recorded 65.2in programme 31.2, 31.3, 50.3provided to Others 25.1publicly available 60.2see also Site Information; Works Information

injury insurance 84.1inspection(s) 40, 60.1(10)(11)before delivery 41Contractor’s cost C40.7, D40.7

instalment repayment of advanced payment X14.3instruction(s)compensation events resulting 60.1(1)(4)(7),

61.1to Contractor 27.3form of communication 13.1insurance 87.1objects of value/interest 60.1(7)quotation(s) to be submitted 36.1, 61.1�2,

61.5�6, 62.1, 62.3�4, 64.1, X2.1to remove Contractor’s employee 24.2on resolution of ambiguities and inconsistencies

17.1to search (for Defects) 42.1to stop/not start work 34, 60.1(4), 91.6and termination 91.6, 92.2that change Key Date 14.3that change Works Information 14.3, 18.1, 44.2,

60.1(1), 63.8�9insurancecertificates 85.1, 86.1, 87.1�3cover 84by Employer 84.1, 85.4, 86.1, 87policies 85, 86.1, 87.1�3signatories 85.1

Insurance Table 84.2insurer(s) 85.2, 85.4, X13.1bonds X13.1, X14.2

insurrection, risks due to 80.1interestassessment of 51.2, 51.3compound calculation 51.4on late payment 51.2and payment certificate(s) 51.3repaid delay damages X7.1

interest rate 51.4interpretationcompensation event 63.8conditions of contract 12.3legal 12

Key Date 30acceleration 36.1, A36.3, C36.3, D36.3assessment of compensation events 63.8�9and compensation events 60.1(4), 61.3, 62.2,

A65.4, B60.5, B65.4, C65.4, D60.5, D65.4Condition 25.3Contractor 14.3, 30.3definition 11.2(9)

Index


Key Date (continued)early warning 16.1notification of compensation events 61.3, 61.4and programme 31.2Project Manager 14.3, 60.1(4)rights to change 63.4Subcontractor failing to meet C11.2(23),

D11.2(23), E11.2(23), F11.2(23)Key Performance Indicators X20

aspect of performance X20.1performance reports X20.2

key person 24.1

language of communications 13.1language of this contract 13.1late payment(s) 51.2�3, X14.2later recorded information 65.2Latest Index X1.1(b)law

changes in X2, X2.1and Defect(s) 11.2(5)interpretation 12national legislation Yrelease of Party from contract 91.5tax(es) 50.2tests and inspections 40.1see also Acts

law of the contract 12.2legal rights, interference with 80.1legislation, national Yliability

Contractor’s design 14.1, X15.1and insurance 84.2limitation X18reduction 83.2

liquidator for company/partnership 91.1loss risks 80.1, 84.1low performance

damages X17see also performance impairment

lump sum(s) A11.2(30), B11.2(28), C11.2(30),C93.4, D11.2(31), D63.13

marking of Equipment, Plant and Materials 71materials

access to 27.2dates when needed 31.2testing/inspection 40.2, 41.1, 42.1, 60.1(16)title to 73.2see also Plant and Materials

method of measurement B60.6, D60.6method of working 35.3, A54.2, C54.2military power, risks due to 80.1mistake(s)

assessment of amount due 51.3Bill of Quantities B60.6, D60.6

multiple currencies X3

named person 24.1national legislation YNEC Adjudicator’s Contract W1.2(1), W2.2(1)NEC contract 26.3, C26.4, D26.4, E26.4, F26.4

negligence 80.1nominating body, Adjudicator W1.2(3), W2.2(3)notification

acceptance of quotation(s) 62.3, 65.1adjudication W1.3(1�2)(8-9), W2.3(1�2)(8�9)ambiguities/inconsistencies 17.1assessment of compensation event 62.3, 64.3,

65.1communication of 13.1, 13.7compensation events and assumptions 60.1(17),

61Contractor’s default 91.2, 91.3Defects 11.2(6), 42.2, 43.1�2delegate for Project Manager/Supervisor 14.2illegal/impossible requirements 18.1implementing compensation events A65.4, B65.4,

C65.4, D65.4, E65.3, F65.3Project Manager’s assessment 64.3, 65.1Project Manager’s decision(s) 63.5, 64.1proposed instruction/changed-decision 61.2,

62.3replacement of Project Manager/Supervisor 14.4termination 90.1tests and inspections 40.3, 41.1

notified Defects, correction 32.1, 45.2

objects of value or historical interest 60.1(7), 73.1observing tests 40.3open market prices 52.1operations (in programme) 31.2, 32.1Others (other people)

approval by 27.1at risk reduction meeting 16.2co-operation with 25.1Defect(s) correction by 45.2definition 11.2(10)hindered by Contractor 91.3Plant and Materials supplied by 80.1and programme 31.2, 60.1(5)working with see co-operationand Works Information 60.1(5)

Own Contract, definition X12.1(2)

parent company guarantee X4Parties/Party

Adjudicator’s communications W1.3(6), W2.3(6)Adjudicator’s instructions W1.3(5), W2.3(4)agreement 12.4and assessment date 50.1to contract 11.2(11)indemnity liability 83.1, 83.2insurance 84.2, 85.3prevention 19.1to subcontract 26.3and termination 90.1, 91.1, 91.5third party rights Y3.1tribunal reviews W1.4(1�4), W2.4(1�3)(5)

Partnering X12actions X12.2change of Partnering information X12.3(6)Core Group X12.2(3-5)defined terms X12.1



early warning X12.3(3)incentives X12.4Key Performance Indicators X12.4(1�2)Own Contract X12.1(2)Partnering Information X12.1(4), X12.3(1)representatives X12.2(2)subcontracting X12.3(9)timetable X12.3(7)

payment(s) 51advanced 93.1, X14.1�3certified 50.5, 51.1�3, 90.4conditional on success of test or inspection 40.5Contractor 40.6, 45.2, 51.1, 86.1, C50.6, C52.2,

D50.6, D52.2, E50.7, E52.2, F50.7, F52.2,X3.1�2

dates Y2.2Employer’s insurance 87.3Housing Grants, Construction and Regeneration Act

(1996) Y2.2�3interest 51.4late 51.2�3, X14.2and marking of Equipment, Plant and Materials

71.1not made 91.4notice of intention Y2.3taxes 50.2on termination 93.1, 93.2, A93.3, C93.4, C93.6,

D93.5�6time to be made 51.2, X14.2withholding Y2.3

payment certificate 50.5, 51.1, 51.3, 91.4payment clauses 50people 24

rates in Contract Data X1.3see also employees

performance, see also Key Performance Indicatorsperformance bond X13, X13.1performance impairment

early warning of possibility 16.1see also low performance

performance reports X20.2performance suspension Y2.4period for reply 13.3, 13.4, 32.2, 36.2

extension agreed 13.5personal injury 84.1

see also insurancephysical conditions of Site 60.1(12), 60.2, 60.3Plant and Materials 11.2(12)(17)

access to 27.2, 60.1(2)dates when needed 31.2loss of or damage to 80.1, 82.1, 84.1not used to Provide the Works C11.2(25),

D11.2(25), E11.2(25)removal of 92.2replacement 82.1, 84.1and termination 92.1, 93.1testing/inspection before delivery 41.1title 70.1, 70.2, 92.1, 93.1wastage C11.2(25), D11.2(25), E11.2(25)see also Equipment

prevention 19Price Adjustment Factor(s) X1

assessment of compensation events X1.3calculation of X1.2definition X1.1(c)price adjustment use X1.4, X1.5

Price for Work Done to Dateadjustment for inflation X1.4, X1.5and assessment of amount due 50.2, 50.3, 93.2,

C93.4, D93.5and assessment of Contractor’s share C53.1�4,

D53.5�8definition(s) A11.2(27), B11.2(28), C11.2(29),

D11.2(29), E11.2(29), F11.2(29)and retention X16.1

Prices/prices/pricesand acceleration 36.1, A36.3, B36.3, C36.3,

D36.3and Activity Schedule A11.2(20)(27), A54.3,

A63.12, C11.2(30), C54.3, C63.12and Bill of Quantities B11.2(31), B60.4, B60.6,

B63.13, D11.2(31), D60.4, D60.6, D63.13changes to 63.1�2and compensation events 61.4, 62.2, 63.1�2,

A63.10, A65.4, B60.4, B60.6, B63.10,B63.13, B65.4, C63.12, C65.4, D60.4,D60.6, D63.13, D65.4, E65.3, F65.3, X2.1

competitively tendered/open market 52.1Contractor’s share C53.1�C53.4, D53.5definition A11.2(30), B11.2(31), C11.2(30),

D11.2(31), E11.2(32), F11.2(32)early warning of possible increase 16.1if Defect(s) uncorrected/accepted 44.2notification of compensation events 61.3rights to change 63.4and termination 93.2, C93.4, D93.5

procedures, termination 90.2, 90.3, 92proceedingsEmployer’s risk 80.1indemnity against 83.1, 83.2

procurement procedure C11.2(25), D11.2(25),E11.2(25), F11.2(26)

programme 11.2(1), 31, 50.3, 62.2, 64.1accelerated 36.1, A36.3, B36.3, C36.3, D36.3,

E36.4, F36.4dates to be shown 31.2, 32.1, A31.4, C31.4revised 32, 36.1, 62.2, 64.2, A36.3, B36.3, C36.3,

D36.3, E36.4, F36.4Project Manageracceleration 36.1, A36.3, B36.3, C36.3, D36.3,

E36.4, F36.4acceptance of communication/proposal/submission

13.4, 14.1, 15.1, 21.2, 31.3, 85.1acceptance of contract data for subcontract C26.4,

D26.4, E26.4, F26.4acceptance of quotation 44.2, 60.1(9), 62.3, 65.1,

A36.3, B36.3, C36.3, D36.3, E36.4, F36.4access 27.2Activity Schedule A54.2, C54.2addition to working areas 15.1Adjudicator’s reviews/revisions W1.3(5), W2.3(4)advanced payment bond X14.2and ambiguities/inconsistencies 17.1assessment of amount due 50.1, 50.4, 50.5

Index


Project Manager (continued)assessment of compensation events 61.6, 63.9,

64, A63.10, B63.10, B63.13, C63.15,D63.13, D63.15, E63.15

assessment of Contractor’s share C53.1, C53.3�4,C93.4, C93.6, D53.5, D53.7�8, D93.5�6

assessment date decided by 50.1assessment of Defect(s) correction cost 45.2assessment of test/inspection cost 40.6assumptions about compensation events 60.1(17),

61.6certificates 13.6, 30.2, 50.5, 51.1�3, 60.1(15),

82.1, 90.1, 90.3�4, C93.4, D93.5co-operation 10.1, 16.3compensation events

60.1(1)(4)(6)(7)(8)(9)(15)(17), 61.1�6,A63.10, B63.10, C63.15, D63.15, E63.15,F20.5

Completion 30.2Contractor’s advice C20.3, D20.3, E20.3, F20.3Contractor’s default 91.2, 91.3Contractor’s design 11.2(5), 21.2Contractor’s employees 24.1, 24.2correction of mistakes in Bill of Quantities B60.6,

D60.6date of Completion 30.2decisions 30.2, 50.1, 60.1(8), 61.1�2, 61.4�6,

63.5, 64.1, C11.2(25), D11.2(25),E11.2(25), F11.2(26)

Defect(s) acceptance/non-correction 44.1, 44.2delegation 14.2Disallowed Cost decision C11.2(25), D11.2(25),

E11.2(25), F11.2(26)duties required 10.1, 14early warning 16.1, 16.2, 16.4, 61.5, 63.5Equipment design 23.1forecasts of Defined Cost C20.4, D20.4, E20.4,

F20.4illegal/impossible requirements 18.1implementing compensation events 65.1, E65.3,

F65.3inspection of Contractor’s accounts and records

C52.3, D52.3, E52.3, F52.3instruction(s) 14.3, 17.1, 18.1, 24.2, 27.3, 34.1,

44.2, 60.1(1)(4)(7), 61.1�2, 61.4, 62.1,62.3�4, 82.1, 87.1, 91.6, C26.4, D26.4,E26.4, F26.4, X2.1

insurance 85.1, 87.1interest on payments 51.3Key Date 14.3, 60.1(4)Key Performance Indicators X20.3moving of Equipment, Plant and Materials 70.2, 72.1notification of compensation events 61.1�6, X2.1notification of Contractor’s default 91.2, 91.3notification of implementing compensation events

E65.3, F65.3objects of value/historical-interest 60.1(7), 73.1performance bond X13.1prevention 19.1programme 11.2(1), 31.1, 31.3, 32.2, 50.3quotations for acceleration 36.1�2, 60.1(9),

A36.3, B36.3, C36.3, D36.3

quotations for compensation events 62.1, 62.3�5replacement of 14.4reply to communication 13.3�5, 60.1(6), 62.3,

62.5�6request to remove resources from Working Areas

C11.2(25), D11.2(25), E11.2(25)Risk Register revision 16.4start/stop of work 34.1, 60.1(4), 91.6subcontract conditions 26.3subcontracting C26.4Subcontractor acceptance 26.2, 91.2take over of works 35.3, 43.4, 60.1(15)and termination 90.1, 90.3, 90.4, 91.2tests and inspections C40.7, D40.7Works Information 14.3, 18.1, 44.2, 60.1(1)

property, loss or damage 84.1proposal(s)

acceleration 36.1to add to Working Areas 15.1Defect(s) acceptance/non-correction 44.1form of communication 13.1risk reduction meeting 16.3, 16.4

proposed instruction or changed decision 61.2, 62.3Provide the Works 20

and addition to Working Areas 15.1Contractor’s responsibilities 11.2(7), 14.1, 20.1,

23.1, 26.3, C20.3�4, C26.4, D20.3�4,D26.4, E20.3�4, E26.4, F20.3�5, F26.4

and Equipment 11.2(7), 23.1meaning of term 11.2(13)Plant and Materials not used C11.2(25),

D11.2(25), E11.2(25)and programme 31.2resources not used C11.2(25), D11.2(25),

E11.2(25)and Works Information 11.2(19), 20.1, C11.2(25),

D11.2(25), E11.2(25)publicly available information 60.2

quantities B11.2(28)(31), B60.4�7, D11.2(31),D60.4�7

see also bill of quantities; Bill of Quantitiesquotations

for acceleration 36.1�2, 60.1(9), A36.3, B36.3,C36.3, D36.3, E36.4, F36.4

acceptance of 36.1, 44.2, 60.1(9), 62.3, 65.1,A36.3, B36.3, C36.3, D36.3

for compensation events 61.4, 61.5, 62, 64.1,64.3�4, 65.1, A11.2(22), C11.2(25),D11.2(25), E11.2(25), F11.2(26), X2.1

if Defect(s) accepted 44.2, 60.1(9)for proposed instruction/changed-decision 61.2revised 62.3, 62.4, 64.1

radioactive contamination 80.1rates

in assessing compensation events A63.14, B63.13,D63.13

in Bill of Quantities B11.2(28)(31), B60.4,D11.2(25,31), D60.4, D63.13

in Contract Data X1.3, X6.1, X7.1rebates, deduction from prices 52.1



rebellion, risks due to 80.1receipt of communications 13.1receiver over assets 91.1records

Contractor’s C11.2(25), C52.2�3, D11.2(25),D52.2�3, E11.2(25), E52.2�3, F11.2(26),F52.2�3

form of communication 13.1risk reduction meeting 16.4Risk Register revision 16.4

re-covering (during searching) 42.1re-erecting (during searching) 42.1referral, adjudication W1.3(1�3), W2.3(1�3)removing

Contractor’s employee 24.2Equipment 72, 92.2, 93.2Plant and Materials 92.2resources C11.2(25), D11.2(25), E11.2(25)

repairs 82replacement(s)

of Adjudicator W1.2(4), W2.2(4)Contractor’s employee 24.1Equipment 80.1, 84.1Plant and Materials 82.1, 84.1Project Manager/Supervisor 14.4

replyform of communication 13.1time allowed 13.3�5, 31.3, 32.2, 36.2, 60.1(6),

62.5�6resignation of Adjudicator W1.2(3), W2.2(3)resources not used to Provide the Works C11.2(25),

D11.2(25), E11.2(25)responsibilities

Contractor 14.1, 20�7, C20.3, C20.4, C26.4,D20.3�4, D26.4, E20.3�4, E26.4, F20.2�4,F26.4

Contractor’s 11.2(7), 14.1, 20, 83.2Employer’s 83.2, 87.2

retention 50.3, 93.1, X16retention free amount X16.1retention percentage X16.1reviews, tribunal W1.4(1�6), W2.4(1�5)revised Activity Schedule A54.2, A54.3, C54.2,

C54.3revised programme 32.1�2, 36.1, 64.2, A36.3,

B36.3, C36.3, D36.3, E36.4, F36.4revised quotation 62.3, 62.4, 64.1revolution, risks due to 80.1Rights of Third Parties (Contracts) Act Y(UK)3riot risks 80.1risk allowances 63.6risk reduction meeting

purpose 16.3records 16.4who attends 16.2

Risk Registerdefinition 11.2(14)early warning 16.1, 16.3�4Project Manager revision 16.4records revision 16.4

risksContractor’s 63.6, 81, 83.2, 84.2, 85.4

Employer’s 60.1(14), 80, 81.1, 83.2, 85.4

safety see health and safetysamples 40.2, 42.1, 60.1(16)savings, Contractor’s share C53.2Schedule of Cost Components C11.2(23), D11.2(23),

E11.2(23)Shorter Schedule A11.2(22), B11.2(22), C63.15,

D63.15, E63.15Schedule of Partners X12.1(1)searching for Defects 42.1, 60.1(10)section of the works X5.1sectional Completion X5services 11.2(13)see also facilities and services

share ranges C53.1, D53.5Shorter Schedule of Cost Components A11.2(22),

B11.2(22), C63.15, D63.15, E63.15Siteaccess to 31.2, 60.1(2)access and use of 33.1definition 11.2(15)historical-interest/valuable objects found 60.1(7),

73.1information describing 11.2(16)location X2.1physical conditions 60.1(12), 60.2, 60.3removal of Equipment, Plant and Materials 72.1,

92.2and risks 80.1starting of work 30.1termination 92.2visual inspection 60.2

Site Information 11.2(16), 60.2and Activity Schedule A54.1, A54.2, C54.1ambiguities/inconsistencies 60.3and Bill of Quantities B55.1, D55.1

starting date 31.2, 32.2, 50.1, 81.1, 84.2, 87.1,C20.4, D20.4, E20.4, F20.4

dispute resolution W1.2(1), W2.2(1)insurance 85.1

start(ing) work 30instruction(s) given not to 34.1, 60.1(4), 91.6

stopping work 34.1, 60.1(4), 91.6strikes, risks due to 80.1subcontractadjudication W1.3(4), W2.3(3)contract data C26.4, D26.4, E26.4, F26.4

subcontracted fee percentage 11.2(8)subcontracting 26, C20.3, C26.4, D20.3, D26.4,

E20.3, E26.4, F20.2, F20.3, F26.4assignment of benefits 92.2conditions 26.3Contractor’s management responsibility F20.2Defined Cost A11.2(22), C11.2(23), D11.2(23),

E11.2(23), F11.2(26)Subcontractoracceptance by Project Manager 26.2, 91.2appointment 26.2, 26.3, 91.2compensation event assessments C52.2,

D11.2(25), D52.2, E11.2(25), E52.2,F11.2(26), F52.2

Index


Subcontractor (continued)definition 11.2(17)payments made C11.2(23)(25), D11.2(23)(25),

E11.2(23)(25), F11.2(24)(26)submission(s)

addition to Working Areas 15.1communications 13.1, 13.4Contractor’s design 21.2Equipment design 23.1forecasts of total Defined Cost C20.4, D20.4,

E20.4, F20.4insurance policies/certificates 85.1, 86.1, 87.1,

87.3non-acceptance of 13.8, 15.1, 21.2, 23.1, 26.2,

26.3programme (first/revised) 31.2, 32.2, 50.3, 64.1,

64.2, A31.4, C31.4quotations 36.1, 36.2, 44.2, 61.4, 62.1, 62.3�6,

64.1, X2.1Subcontractor/subcontract conditions/contract

data 26.2, 26.3, C26.4, D26.4, E26.4, F26.4subrogation rights 85.2Supervisor

access 27.2Adjudicator’s reviews/revisions W1.3(5), W2.3(4)certificates issued by 13.6, 43.3, 50.1and compensation events 60.1(6)(8)(10)(11),

61.1Defects notified by 11.2(6), 42.2, 43.1, 43.3delegation 14.2duties required 10.1, 14instructions given by 27.3, 61.1marking of Equipment, Plant and Materials 70.1,

71.1replacement of 14.4reply to communication 13.3, 14.1, 60.1(6)searching (for Defects) 42.1, 60.1(10)tests and inspections 40.3, 40.5, 41.1, 60.1(11)

suppliers 11.2(10)(17)

take over of works 35, 43.4, 60.1(15), 80.1, X6.1,X7.1, X16.1, X16.2

taxes 52.1payment 50.2

termination 90amount due on 90.2, 90.4, 93.1, 93.2, A93.3certification of 90.1, 90.3, 90.5, C93.4, D93.5and insurance cover 84.2loss/damage risks 80.1payment on 93.1, 93.2, A93.3, C93.4, D93.5procedures 90.2, 90.3, 92reasons for 90.2, 91

Termination Table 90.2, 92.2, 93.2tests/testing 40

before delivery 41compensation events resulting 60.1(10)(11)(16)Contractor’s cost C40.7, D40.7searching/notifying Defects 42.1�2

third party rights, contracts Act Y3.1time, see also Completion; Key Date; start(ing) worktime allowed

certification of Completion 30.2

certification of payment 50.5, 51.1, 90.4certification of take over 35.3compensation events 61.1, 61.3, 61.4, 64.3�4Defect(s) correction 43.2extension(s) agreed 13.5, 62.5�6payment of amount due 51.2, 91.4programme submission/acceptance 31.1, 31.3,

32.2Project Manager not replying 64.4reply to communications 13.3, 13.5, 31.3, 32.2,

60.1(6)start/restart of work 91.6

time clauses 30time risk allowances 31.2, 63.6timings, adjudication W1.3(8)(10-11),

W2.3(2)(8)(11�12)title 70

Equipment, Plant and Materials 92.1, 92.2materials from excavation and demolition 73.2object of value or historical interest 73.1Plant and Materials 70

total of the Defined Cost, payment on terminationD93.5

Total of the PricesContractor’s share D53.5�8identified and defined terms D11.2(33)

total of the PricesActivity Schedule A54.3, C54.3adjustment for inflation X1.5compensation events B60.4, D60.4

Contractor’s share C53.1, C53.3early warning of possible increase 16.1identified and defined terms 11.2(27)

payment on termination 93.2, C93.4, C93.4tribunal

Adjudicator W1.3(2)(10), W2.3(11)arbitration W1.4(5), W2.4(4)costs D11.2(25)decisions 51.3proceedings C11.2(25), D11.2(25), E11.2(25)reviews W1.4(1�6), W2.4(1�5)

trust and co-operation 10.1, 26.3, X12.3(1)

uncorrected Defects 45, 60.1(9)uncovering work (during search) 42.1undecided disputes, Adjudicator W1.2(4), W2.2(4)United Kingdom Housing Grants, Construction and

Regeneration Act (1996) W1, W2use of works by Employer 11.2(2), 35.3usurped power, risks due to 80.1utilisation of resources C11.2(25), D11.2(25),

E11.2(25)

valuable objects found within Site 60.1(7), 73.1visual inspection of Site 60.2

waiver by insurers 85.2war 80.1wastage of Plant and Materials C11.2(25),

D11.2(25), E11.2(25)watching tests 40.3wear to works, Employer’s risk 80.1



weather conditions 60.1(12)weather data/weather measurement 60.1(13)whole of the works X5.1

Completion 32.2, 50.1, 60.1(13), 93.1�2, C20.4,C53.3, D20.4, D53.7, E20.4, F20.4, X1.2,X16.1

Defined Cost C20.4, D20.4, E20.4, F20.4winding-up order 91.1witnesses, tribunal proceedings W1.4(6), W2.4(5)Working Areas (working areas) 11.2(18)

addition 15Equipment, Plant and Materials outside 71.1Equipment, Plant and Materials removed from 92.2Equipment, Plant and Materials within 41.1, 93.1Plant and Materials outside 70.1, 70.2, 71.1Plant and Materials within 41.1, 70.2, 93.1resources removed from C11.2(25), D11.2(25),

E11.2(25)sharing with Others 25.1

working with Employer/Others see co-operationworks

Completion of whole 11.2(13), 32.2, 50.1,60.1(13), 92.1, 93.2, C20.4, C53.3, D20.4,D53.7, E20.4, F20.4, X1.2, X16.1

Contractor’s design 21.1, 22.1, X15.1Contractor’s management responsibility for design,

construction and installation F20.2and Defects 11.2(5)design C20.3, D20.3, E20.3, F20.3early warning of possible performance impairment

16.1Equipment left in 72.1information specifying/describing 11.2(19), 25.1loss of or damage to 80.1, 82.1, 84.1part provided by Subcontractor 11.2(17)Plant and Materials included 11.2(12)(17)section X5.1

taking over 35, 43.4, 60.1(15), 80.1, X6.1, X7.1,X16.1, X16.2

Works Informationacceptance/procurement procedure C11.2(25),

D11.2(25), E11.2(25), F11.2(26)accounts and records C52.2, D52.2, E52.2,

F52.2and Activity Schedule A54.1, C54.1advanced payment bond X14.2assessing compensation events A63.10, B63.10and Bill of Quantities B55.1, D55.1change(s) 14.3, 18.1, 44.1�2, 60.1(1), 63.8�9and compensation events 60.1(1)(16), 63.8�9Completion Date 11.2(2)conditions stated in 25.1, 60.1(5)Contractor’s accounts and records C52.2, D52.2,

E52.2, F52.2Contractor’s design 21.1�2, 22.1, 60.1(1), X15.1Contractor’s parent company guarantee X4.1and Defects 44.1, 44.2definition 11.2(19)Equipment 11.2(7)health and safety 27.4instructions that change 14.3, 18.1, 44.2, 60.1(1),

63.8�9marking of Equipment, Plant and Materials 71.1part of works not in accordance with 11.2(5)performance bond X13.1and programme 31.2and Providing the Works 11.2(19), 20.1,

C11.2(25), D11.2(25), E11.2(25)subcontract work F20.2take over of works 35.2tests and inspections 40.1�2, 41.1, 42.1,

60.1(16)title to materials 73.2uncorrected Defects 45.1�2

Index
