Civil Engineering Project Management (4th Edition)

Contract conditions used for civil engineering work 41
and in arbitration so that the parties to a contract can be confident as to the
meaning and interpretation to be placed on these conditions.
The latest edition is the 7th, published in 1999 together with guidance
notes, reprinted with amendments in 2003. This edition is known as the
Measurement Version to distinguish it from other ICE types of contract based
on this established standard.
The principal provisions of the Measurement Version are as follows:
• The contractor constructs the works according to the designs and details
given in drawings and specifications provided by the employer.
• The contractor does not design any major permanent works, but may be
required to design special items (such as bearing piles whose choice may
depend on the equipment he owns) and building services systems, etc.
• An independent engineer, designated ‘the Engineer’ is appointed by the
employer to supervise construction, ensure compliance with the contract,
authorize variations, and decide payments due; but his decisions can be
taken by the employer or contractor to conciliation procedures, adjudication
and/or arbitration.
• The contractor can claim extra payment and/or extension of time for overcoming
unforeseen physical conditions, other than weather, which ‘could
not … reasonably have been foreseen by an experienced contractor’ (Clause
12) and for other delays for which the employer is responsible.
• Payment is normally made by re-measurement of work done at rates tendered
against items listed in bills of quantities, which can also include lump sums.
A particular advantage of the ICE conditions is that interpretation of the
provisions of the contract lies in the hands of an independent Engineer, who
is not a party to the contract, but is required to ‘act impartially within the
terms of the contract having regard to all the circumstances’ (Clause 2(7)).
This gives assurance to both employer and contractor that their interests and
obligations under the contract will be fairly dealt with. Also the contractor is
paid for overcoming difficulties he could not reasonably have foreseen. Both
these matters reduce the contractor’s risks, making it possible for him to bid
his lowest economic price. This benefits the employer, since the initial price is
low and he does not pay out to cover risks which may not occur.
The ICE conditions contain many other provisions that have stood the test
of time. These include requirements for early notice of potential delays and problems
such as adverse ground conditions and provisions for submission and
assessment of claims and valuation of variations. Properly drawn up and administered,
a contract under these conditions appears fair to both parties, and the percentage
of contracts ending in a dispute which goes to arbitration is very small.
(b) ICE Conditions for Ground Investigation
These conditions are based on those described under (a) but allow for the
investigative nature of the work and the need for reports and tests. A schedule