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SPAR ÖSTERREICHISCHE WARENHANDELS-AG<br />

GENERAL TENDER AND CONTRACT TERMS AND CONDITIONS<br />

FOR CONSTRUCTION AND AUXILIARY WORK<br />

VERSION 01/2009<br />

Effective as of 19.02.2009<br />

Definitions<br />

Employer<br />

Contractor (Tenderer)<br />

Party inviting <strong>tender</strong>s:<br />

The planner commissioned by the Employer to<br />

prepare the invitations to <strong>tender</strong> or the <strong>construction</strong><br />

department commissioned by the Employer to<br />

implement the <strong>tender</strong> or the employee<br />

commissioned by the Employer to implement the<br />

<strong>tender</strong><br />

Site Supervisors: persons commissioned by the<br />

Employer to supervise the Contractor’s work at the<br />

site.<br />

Site manager: the person commissioned by the<br />

Contractor to supervise <strong>and</strong> implement the<br />

Contractor’s work.<br />

Specs.: Specifications<br />

Construction work <strong>and</strong> services:<br />

Apart from classic <strong>construction</strong> work this term also<br />

includes the delivery, installation etc. of technical<br />

equipment, instruments, other services or parts<br />

including corresponding work.<br />

The net final account sum is the final account sum<br />

after taxes <strong>and</strong> deductions <strong>and</strong> be<strong>for</strong>e cash discount.<br />

1. Tender <strong>terms</strong> <strong>and</strong> <strong>conditions</strong><br />

1.1. The <strong>tender</strong> documents shall be signed on<br />

behalf of the company by a duly authorized person<br />

in the spaces provided. If the documents are not<br />

signed by a duly authorized person or if individual<br />

documents are unsigned or not signed by a duly<br />

authorized person, the Tenderer shall remain bound<br />

by its <strong>tender</strong> proposal, provided that the <strong>tender</strong><br />

letter is signed by a person duly authorized by the<br />

Tenderer. Changes to the specs are not permitted<br />

<strong>and</strong> shall be deemed to be not per<strong>for</strong>med. If the<br />

Tenderer wishes to offer an alternative proposal<br />

differing from the <strong>tender</strong> <strong>conditions</strong>, he may do so in<br />

a separate alternative proposal. In case of<br />

differences between the original specs <strong>and</strong> the EDP<br />

printout the original specs shall prevail. Proposals<br />

shall be submitted in German. Prices shall be quoted<br />

in euro, any additional expenses (e.g. tarriffs, import<br />

taxes, costs <strong>for</strong> work permits etc.) shall be included<br />

into the price, import/export licences shall be<br />

obtained by the Tenderer at its own expense. Unless<br />

otherwise defined in the <strong>tender</strong> documents, the<br />

prices quoted are firm prices <strong>and</strong> are not subject to<br />

a price escalator clause.<br />

The in<strong>for</strong>mation materials enclosed with the <strong>tender</strong><br />

documents, regarding e.g. soil <strong>conditions</strong>,<br />

groundwater levels, technical properties <strong>and</strong> data<br />

related to the building physics of the planned<br />

<strong>construction</strong> materials, the position of fixtures or any<br />

other circumstances pertaining to the execution of<br />

the work, shall serve <strong>for</strong> in<strong>for</strong>mation purposes only.<br />

The Employer <strong>and</strong> the party inviting <strong>tender</strong>s shall<br />

not be held liable <strong>for</strong> the correctness of these<br />

in<strong>for</strong>mation materials. The Tenderer shall be<br />

obligated to examine all documents. If it turns out<br />

during the execution of the work that the<br />

in<strong>for</strong>mation material was incorrect or incomplete, the<br />

Tenderer shall be obligated to execute the work in a<br />

technically correct manner <strong>and</strong> to bear any<br />

additional costs incurred in this connection. In<br />

addition, the Tenderer shall be obligated to submit in<br />

writing any objections to the design or <strong>construction</strong><br />

work specified in the <strong>tender</strong> documents by<br />

submission of the proposal at the latest. If such<br />

objections are not submitted in due <strong>for</strong>m or after the<br />

deadline, the Tenderer shall be deemed to regard<br />

the above-mentioned <strong>tender</strong> documents or drawings<br />

as suitable <strong>and</strong> sufficient <strong>for</strong> executing the work in<br />

an appropriate <strong>and</strong> professional manner. It must not<br />

raise any subsequent objections <strong>and</strong> shall be fully<br />

liable as skilled professional.<br />

The Tenderer shall be entitled to propose equivalent<br />

special <strong>construction</strong>s <strong>and</strong> offer them separately in an<br />

annex in the sense of these <strong>terms</strong> <strong>and</strong> <strong>conditions</strong>.<br />

The Tenderer shall guarantee <strong>for</strong> the technical<br />

correctness of these special <strong>construction</strong>s. In case<br />

the proposed special <strong>construction</strong>s require design<br />

changes, the corresponding costs shall be paid by<br />

the Tenderer, if the order is placed.<br />

1.2. The persons appointed by the Tenderer to<br />

participate in the <strong>tender</strong> negotiations shall be<br />

authorized to make amendments <strong>and</strong> additions to<br />

the proposal <strong>and</strong> to conclude a <strong>contract</strong> <strong>for</strong> work <strong>and</strong><br />

services. Corresponding restrictions of the power of<br />

attorney shall be invalid. The <strong>tender</strong> documents shall<br />

<strong>for</strong>m the basis <strong>for</strong> the preparation <strong>and</strong> submission of<br />

the <strong>tender</strong> proposal, <strong>and</strong> any documents to be<br />

submitted with the proposal must be originals. In<br />

agreement with the party inviting <strong>tender</strong>s prices<br />

quoted in the specs can also be submitted on data<br />

storage media, In this case a flawless EDP printout<br />

including the individual items of the specs with all<br />

blank spaces filled in by the Tenderer, products<br />

used, quantities, unit prices <strong>and</strong> total prices of the<br />

individual items, must be submitted. The Tenderer<br />

shall guarantee the equivalence of the products<br />

proposed <strong>and</strong> must be able to provide corresponding<br />

proof upon request. Otherwise the product proposed<br />

in the specs must be executed without premium. In<br />

case blank spaces have not been filled in by the<br />

Tenderer, the product must be constructed in<br />

accordance with specs. If the specs do not contain<br />

sufficient in<strong>for</strong>mation, the Employer shall be entitled<br />

to determine the product or <strong>for</strong>m of <strong>construction</strong>.<br />

1.3. Be<strong>for</strong>e submitting its proposal, the Tenderer<br />

shall visit <strong>and</strong> inspect the site with regard to the kind<br />

<strong>and</strong> scope of the work to be per<strong>for</strong>med. With the<br />

submission of the <strong>tender</strong> proposal, the Tenderer<br />

confirms that it has obtained sufficient in<strong>for</strong>mation<br />

about the localities, the <strong>construction</strong> site, access to<br />

the site, <strong>and</strong> other specific facts, in particular any<br />

public or private easements, pipeline wayleaves<br />

(water, drains, electricity, gas, district heating, cable<br />

TV, telephone etc.) <strong>and</strong> any wayleaves or other<br />

obstructions to be able to determine the scope of<br />

work <strong>and</strong> services adequately. For this reason the<br />

Tenderer must not raise any claims on account of<br />

ignorance of local (factual <strong>and</strong> legal) <strong>conditions</strong>.<br />

Seite 1 Version 01/2009


SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

1.4. The Tenderer shall not be entitled to any<br />

reimbursement <strong>for</strong> the preparation or revision of the<br />

<strong>tender</strong> proposal or any expenses incurred in this<br />

connection, not even if the Employer refrains from<br />

implementing the <strong>construction</strong> project. The Employer<br />

shall decide at its own absolute discretion which, if<br />

any, proposal to accept. The Tenderers shall have no<br />

right to the acceptance of their <strong>tender</strong>.<br />

1.5. By signing the proposal the Tenderer<br />

declares that the proposal is based on the Tenderer’s<br />

own price calculation only, that the prices quoted<br />

have not been adjusted <strong>and</strong> arranged with other<br />

competitors, that no agreements have been made<br />

with other companies which are detrimental to the<br />

Employer or infringe free competition <strong>and</strong> that the<br />

Tenderer has not entered into any <strong>for</strong>mal or in<strong>for</strong>mal<br />

agreements with other companies or acts in such a<br />

way that an act prohibited under competition law<br />

has been per<strong>for</strong>med. Upon the Employer’s request<br />

the Tenderer shall be obligated to prove that this is<br />

not the case. In case of a violation of this rule the<br />

Tenderer shall be obligated to pay a <strong>contract</strong> penalty<br />

in the amount of 10% of the <strong>contract</strong> price.<br />

1.6. If the proposal is submitted by a<br />

consortium, the members of the consortium shall be<br />

liable to the Employer jointly <strong>and</strong> severally <strong>for</strong> all<br />

obligations under the proposal <strong>and</strong> in case of<br />

acceptance of the propsal <strong>for</strong> all obligations under<br />

the corresponding <strong>contract</strong> <strong>for</strong> work <strong>and</strong> services.<br />

Any securities provided by any member of the<br />

consortium shall be expressly valid <strong>for</strong> claims against<br />

the other members of the consortium or the<br />

consortium as a whole. The proposal shall be signed<br />

by all consortium members, <strong>and</strong> each consortium<br />

member shall be expressly entitled to represent the<br />

other members. On submitting the proposal, the<br />

consortium shall be entitled to nominate a person<br />

authorized to act on behalf the consortium <strong>and</strong> to<br />

deal with the Employer regarding both technical <strong>and</strong><br />

commercial matters. Upon request the consortium<br />

shall be obligated to verify that it has taken out a<br />

commercial liability insurance with adequate<br />

coverage (minimum amount EUR 800,000.00). This<br />

insurance shall remain valid <strong>for</strong> the entire term of<br />

the <strong>contract</strong>.<br />

1.7. The period of validity shall be six months<br />

from the closing date. The Tenderer shall be bound<br />

by its bid <strong>for</strong> this period of time. If upon the request<br />

of the Employer or the party inviting the <strong>tender</strong>s<br />

alterations <strong>and</strong> additions are made to the proposal,<br />

which are not to be remunerated without separate<br />

agreement, this does not mean that the proposal<br />

originally submitted (original proposal) has been<br />

rejected. Any such alterations or additions made<br />

upon the request of the Employer or the party<br />

inviting the <strong>tender</strong>s are alternative proposals to<br />

which the Tenderer shall be bound until the expiry of<br />

the period of validity. Within the period of validity<br />

the Employer shall be entitled to accept the original<br />

offer or the alternative offer. The Employer shall also<br />

be entitled to freely combine at its own discretion<br />

individual items from different alternative proposals<br />

with each other or with the original proposal, thus<br />

determining a new, binding <strong>contract</strong> price, unless<br />

this is expressly excluded by the Tenderer in a clear<br />

<strong>and</strong> unambiguous statement on the cover sheet of<br />

the alternative offer. The proposal shall be accepted<br />

by a letter of acceptance issued by the Employer or<br />

the party inviting <strong>tender</strong>s. The date of shipment shall<br />

be decisive as to the deadline of accepting the<br />

proposal. If the <strong>conditions</strong> <strong>for</strong> accepting the proposal<br />

differ from the <strong>conditions</strong> specified in the proposal,<br />

the Tenderer shall notify the Employer of this fact in<br />

writing within 8 days. If the Employer receives no<br />

such written notification within 8 days the <strong>contract</strong><br />

<strong>for</strong> work <strong>and</strong> services shall be deemed to be<br />

concluded under the <strong>conditions</strong> specified in the letter<br />

of acceptance. If a corresponding notification is sent<br />

within eight days, the Tenderer shall remain bound<br />

by its proposal <strong>for</strong> an additional period of two weeks<br />

(from the Employer’ receipt of the notification). The<br />

letter of acceptance shall be signed by the person<br />

duly authorized to act on behalf of the Tenderer <strong>and</strong><br />

returned to the Employer within one week of receipt.<br />

The contents of the letter of acceptance shall be<br />

deemed to be accepted by the Tenderer, <strong>and</strong> the<br />

<strong>contract</strong> <strong>for</strong> work <strong>and</strong> services has been concluded in<br />

accordance with the contents of the letter of<br />

acceptance, if the Tenderer starts or continues with<br />

the execution of the work.<br />

The Tenderer shall waive the right to assert that it<br />

has made an error in the preparation of the proposal<br />

<strong>and</strong> to withdraw the proposal <strong>for</strong> this reason or<br />

dispute the <strong>contract</strong> <strong>for</strong> work <strong>and</strong> services on<br />

account of error in case the proposal is accepted.<br />

Upon request the Tenderer shall be obligated to<br />

submit within three days of the request all sheets<br />

<strong>and</strong> documents from which the price calculation can<br />

be deduced (in particular so-called “K-Blätter” or<br />

calculation sheets in accordance with Austrian<br />

st<strong>and</strong>ard ÖNORM B2061 as well as basic principles of<br />

calculation such as total surcharge – <strong>general</strong><br />

overhead, interest during <strong>construction</strong>, imputed risk,<br />

profit margin, total material surcharge / external<br />

labour surcharge <strong>and</strong> gross average wage price).<br />

2. Contract <strong>terms</strong> <strong>and</strong> <strong>conditions</strong><br />

2.1 The <strong>contract</strong> <strong>terms</strong> <strong>and</strong> <strong>conditions</strong> shall<br />

apply to all work <strong>and</strong> services to be per<strong>for</strong>med by<br />

the Contractor in connection with the <strong>construction</strong><br />

project. The Contractor’s <strong>general</strong> <strong>terms</strong> <strong>and</strong><br />

<strong>conditions</strong> shall not apply. The <strong>contract</strong> <strong>terms</strong> <strong>and</strong><br />

<strong>conditions</strong> shall also apply to follow-up orders,<br />

unless otherwise specified in the follow-up orders.<br />

The Contractor acknowledges that alterations <strong>and</strong><br />

additions to the work specified in the <strong>contract</strong> may<br />

arise during implementation of the <strong>construction</strong><br />

project <strong>and</strong> detailed design. The Employer shall be<br />

entitled to make such alterations <strong>and</strong> additions, <strong>and</strong><br />

the Contractor shall be obligated to per<strong>for</strong>m the<br />

work accordingly.<br />

2.2 The Contractor shall be obligated to execute<br />

all work in a competent <strong>and</strong> professional manner in<br />

accordance with the design drawings <strong>and</strong><br />

in<strong>for</strong>mation provided by the Employer <strong>and</strong> examined<br />

by the Contractor, the planners <strong>and</strong> designers<br />

commissioned by the Employer <strong>and</strong> the instructions<br />

of the site supervisors. The Contractor shall be fully<br />

liable to the Employer, planners <strong>and</strong> designers<br />

commissioned by the Employer <strong>and</strong> to the<br />

authorities <strong>for</strong> the work it has executed, particularly<br />

with regard to structural engineering, functionality,<br />

fire protection engineering, building physics etc.. The<br />

building shell (especially <strong>for</strong>mwork <strong>and</strong> concreting)<br />

must be executed in accordance with the architect’s<br />

execution drawings. In case of discrepancies with<br />

other drawings the Contractor shall be obligated to<br />

notify the Employer in due time to avoid any delays.<br />

2.3 The Contractor shall be obligated to<br />

carefully examine all execution drawings <strong>and</strong><br />

instructions provided to him, any materials made<br />

available to him by the Employer, preliminary work<br />

per<strong>for</strong>med by other companies as well as the<br />

prevailing soil <strong>conditions</strong> at the site etc, <strong>and</strong> it shall<br />

notify the Employer in writing of any concerns<br />

irrespective of article 1.1. <strong>and</strong> 1.3 of these <strong>terms</strong><br />

<strong>and</strong> <strong>conditions</strong> no later than two weeks be<strong>for</strong>e the<br />

beginning of the <strong>construction</strong> work <strong>and</strong> to make<br />

proposals as to the technically correct / suitable<br />

design <strong>and</strong> execution. If the Contractor fails to carry<br />

out an examination <strong>and</strong> notify the Employer in<br />

writing, it shall be obligated to pay <strong>for</strong> any additional<br />

expenses or disadvantages in connection with the<br />

above <strong>conditions</strong> <strong>and</strong> be held liable <strong>for</strong> any damage<br />

incurred by this. The Contractor shall have a<br />

comprehensive duty to examine <strong>and</strong> warn that<br />

excludes any joint liability of the Employer.<br />

Every <strong>contract</strong>or shall be obligated to take actual<br />

measurements in due time be<strong>for</strong>e starting the<br />

<strong>construction</strong> work <strong>and</strong> to request <strong>and</strong> examine all<br />

drawings required <strong>for</strong> the work to be per<strong>for</strong>med.<br />

The Employer <strong>and</strong> its authorized representative shall<br />

be notified in writing of any discrepancies between<br />

drawings <strong>and</strong> actual measurements be<strong>for</strong>e the<br />

beginning of the <strong>construction</strong> work. Any work<br />

previously per<strong>for</strong>med by other companies shall be<br />

examined in time <strong>and</strong> self responsibly. If the<br />

Contractor fails to carry out an examination the<br />

preceding article shall apply correspondingly.<br />

Page 2 of 10 Version 01/2009


SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

2.4 Unless the Contractor raises objections<br />

against any in<strong>for</strong>mation materials / drawings /<br />

execution instructions included in the <strong>tender</strong><br />

documents on submitting the proposal, any<br />

objections raised at a later time do not entitle the<br />

Contractor to claim additional compensation. The<br />

Contractor shall be obligated to execute the work at<br />

its own expense in a technically correct way. If a<br />

lump sum price has been agreed the Contractor shall<br />

not be entitled to dem<strong>and</strong> reimbursement of<br />

additional expenses; if a settlement based on unit<br />

prices has been agreed, the Contractor shall be<br />

entitled to invoice only those quantities (volumes)<br />

which would have resulted from the execution<br />

drawings on which the <strong>tender</strong> had been based or,<br />

respectively, the items included in the specs, even if<br />

changed or additional work is necessary <strong>for</strong> the<br />

technically correct execution. Additional work of any<br />

kind is acknowledged <strong>and</strong> reimbursed only if the<br />

Employer has placed a corresponding written order.<br />

Verbally placed orders shall be ineffective.<br />

2.5 Access roads from public roads to the<br />

building site <strong>and</strong> transportation routes necessary <strong>for</strong><br />

the implementation of the building project <strong>for</strong> all<br />

companies working at the <strong>construction</strong> site shall be<br />

constructed, safeguarded <strong>for</strong> the duration of<br />

<strong>construction</strong> works, if necessary relocated, <strong>and</strong><br />

maintained by the company commissioned with the<br />

<strong>construction</strong> of the building shell. The company<br />

constructing the building shell shall also be<br />

responsible <strong>for</strong> any traffic management required on<br />

public roads. The company constructing the building<br />

shell shall also be obligated to fulfil all obligations of<br />

the Employer or l<strong>and</strong>owner under public law with<br />

regard to road maintenance <strong>and</strong> safety measures,<br />

de-icing <strong>and</strong> snow clearance alongside public roads<br />

<strong>and</strong> to indemnify the principal <strong>and</strong> l<strong>and</strong>owner against<br />

any liability in this connection. If requested by the<br />

Employer to allow it to continue to run its business<br />

or if necessary <strong>for</strong> the execution of the work or on<br />

account of rules imposed by public authorities, the<br />

transportation routes must be changed accordingly<br />

<strong>and</strong> the site facilities relocated – even repeatedly, if<br />

necessary; the above regulations shall apply<br />

accordingly. All measures specified in article 2.5.<br />

shall not be reimbursed separately.<br />

Each <strong>contract</strong>or shall obtain be<strong>for</strong>e the beginning of<br />

its work <strong>and</strong> at its own expense any permissions that<br />

may be required <strong>for</strong> the use of public or private<br />

property. The level reference marker shall be<br />

executed without separate remuneration by the<br />

company constructing the building shell in<br />

accordance with the requirements of the site<br />

supervisor, using V2A bolts. This level reference<br />

marker must be maintained by the company<br />

constructing the building shell <strong>for</strong> the entire duration<br />

of finishing works. The companies <strong>and</strong> craftsmen<br />

executing the finishing works shall adhere to the<br />

reference markers made by the company<br />

constructing the building shell <strong>and</strong> transfer them to<br />

the required positions.<br />

2.6 The Contractor shall prepare at its own<br />

expense all execution drawings, documents <strong>and</strong><br />

statistical calculations required <strong>for</strong> the execution of<br />

its work, unless they have to be provided by the<br />

Employer in accordance with written agreements.<br />

All execution drawings prepared by the Contractor<br />

shall be submitted to the Employer <strong>for</strong> approval not<br />

later than two weeks be<strong>for</strong>e the execution of the<br />

corresponding work. The release of the documents<br />

by the Employer does not exempt the Contractor<br />

from its liability <strong>for</strong> their technical correctness. The<br />

release of the execution drawings by the Employer<br />

only means that the Employer has approved the<br />

architectural design. Any documents provided by the<br />

Employer shall be examined be<strong>for</strong>e execution in<br />

accordance with article 2.3. of this document.<br />

2.7 The Contractor shall prepare all data<br />

required <strong>for</strong> the execution of its work that concern<br />

preliminary work per<strong>for</strong>med by other companies,<br />

such as clearances, apertures <strong>and</strong> special provisions<br />

<strong>for</strong> installations or building services (utilities) well in<br />

time <strong>and</strong> submit them to the site supervisor in<br />

writing. If the Contractor fails to make a<br />

corresponding notification, it shall reimburse to the<br />

Employer any additional expenses incurred as a<br />

result of this omission.<br />

2.8 The Contractor shall be solely responsible<br />

<strong>for</strong> the correctness of its execution drawings,<br />

documents <strong>and</strong> calculations. The Contractor shall be<br />

obligated to convince itself be<strong>for</strong>e the beginning <strong>and</strong><br />

during the execution of the work, if the preliminary<br />

work required <strong>for</strong> the work to be per<strong>for</strong>med by the<br />

Contractor has been executed according to schedule;<br />

in case of discrepancies it shall in<strong>for</strong>m the Employer<br />

in writing in a timely manner.<br />

2.9 Upon the Employer’s request the Contractor<br />

shall be obligated to provide free of charge samples<br />

of the materials <strong>and</strong> instruments used <strong>for</strong> the<br />

execution of the work. This concerns all assemblies,<br />

materials, surface qualities, mounting parts in<br />

different <strong>for</strong>ms, qualities <strong>and</strong> colours, all<br />

instruments, fixtures <strong>and</strong> fittings <strong>and</strong> visible joints.<br />

Unless another product / another type with type<br />

specification was specified in the corresponding<br />

blank provided in the <strong>tender</strong> documents, the product<br />

exemplarily specified in the corresponding item must<br />

be used. If no indications were made in the<br />

corresponding blanks to be filled in by the Tenderer,<br />

the materials selected by the Employer shall be<br />

utilized.<br />

2.10 The Contractor shall provide all test<br />

certificates, quality inspection reports <strong>and</strong><br />

verifications required on the territory of the<br />

<strong>construction</strong> site <strong>for</strong> all work executed to ensure that<br />

the local authorities will grant all required licences<br />

<strong>and</strong> concessions. The Employer shall be entitled to<br />

dem<strong>and</strong> additional quality inspections of substances,<br />

building materials or instruments / products used.<br />

The expenses <strong>for</strong> such certificates <strong>and</strong> quality<br />

inspections shall be paid by the Contractor. The<br />

same applies to documents requested by public<br />

authorities or public utility companies. The<br />

Contractor shall be obligated to obtain <strong>for</strong> the<br />

Employer all licences <strong>and</strong> certificates from public<br />

authorities which specifically concern its assemblies<br />

(e.g. permissions <strong>for</strong> elevators or escalators) at its<br />

own expense.<br />

The Contractor shall guarantee that it fulfils all legal<br />

<strong>and</strong> actual requirements <strong>for</strong> the per<strong>for</strong>mance of the<br />

<strong>construction</strong> work (e.g. requirements under trade<br />

law etc.) <strong>and</strong> shall be obligated to submit<br />

corresponding proof to the Employer at any time<br />

upon request. The Contractor shall be obligated to<br />

prepare logs <strong>and</strong> reports of the <strong>construction</strong> work<br />

per<strong>for</strong>med on a daily basis <strong>and</strong> to submit them to<br />

the Employer or site supervisor at any time upon<br />

request.<br />

The company commissioned with the execution of<br />

the building shell shall assume the responsibilities of<br />

project manager <strong>and</strong> site coordinator in accordance<br />

with the Act on Coordination of Construction Works<br />

(BauKG) without remuneration <strong>and</strong> shall indemnify<br />

the Employer against any liability in this connection.<br />

If a <strong>general</strong> <strong>contract</strong>or is commissioned, this <strong>general</strong><br />

<strong>contract</strong>or shall take over the above tasks.<br />

2.11 For the execution of the work the<br />

Contractor shall use only the best, newest <strong>and</strong><br />

flawless materials <strong>and</strong> employ only well-trained <strong>and</strong><br />

reliable professional staff executing the work in a<br />

professional manner in accordance with <strong>general</strong>ly<br />

accepted technical st<strong>and</strong>ards <strong>and</strong> codes of practice<br />

<strong>and</strong> state-of-the-art technology. All deliveries <strong>and</strong><br />

work <strong>and</strong> services per<strong>for</strong>med shall at least meet the<br />

corresponding Austrian st<strong>and</strong>ards ÖNORM valid at<br />

the time of execution.<br />

The Contractor shall coordinate its work <strong>and</strong> the<br />

way, circumstances <strong>and</strong> time of execution with the<br />

other companies working at the site to avoid mutual<br />

obstructions; Obstructions usually arising during the<br />

implementation of building projects shall not entitle<br />

the Contractor to additional claims or an extension of<br />

time.<br />

The Contractor shall be obligated to participate in<br />

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SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

the coordination meetings set by the site supervisor,<br />

also after execution of the work, without<br />

reimbursement or to assign a representative who is<br />

in<strong>for</strong>med <strong>and</strong> authorized to act <strong>and</strong> make decisions<br />

on behalf of the Contractor. The Contractor shall be<br />

subject to the decisional authority of the project<br />

manager <strong>and</strong> site coordinator appointed in<br />

accordance with the Act on Coordination of<br />

Construction Works (BauKG). The appointment of a<br />

site coordinator by the Employer does not release<br />

the Contractor from compliance with applicable<br />

protective regulations. The Employer shall be<br />

entitled to supervise the process of work per<strong>for</strong>med<br />

at the site or the production at the Contractor’s<br />

plant.<br />

The Contractor shall be obligated to take adequate<br />

measures at its own expense <strong>for</strong> the protection of its<br />

work from damage caused by other professionals.<br />

Until the <strong>for</strong>mal acceptance of the work by the<br />

Employer the Contractor shall bear all risks <strong>for</strong> its<br />

work.<br />

The Contractor shall guarantee the existence of a<br />

valid commercial liability insurance in the amount of<br />

at least EUR 800.000,- <strong>for</strong> damage to persons <strong>and</strong><br />

property <strong>for</strong> the entire duration of the <strong>construction</strong><br />

work <strong>and</strong> to verify it by submission of the insurance<br />

policy <strong>and</strong> a confirmation of insurance premium<br />

payment.<br />

2.12 In cooperation with the site supervisor <strong>and</strong><br />

other <strong>contract</strong>ors working at the site, the Contractor<br />

shall be obligated to prepare a site facility layout<br />

scheme which is based on a minimization of the area<br />

required <strong>for</strong> the site facilities. In case of necessity<br />

the Contractor shall be obligated to relocate site<br />

facilities at the site supervisor’s request. The<br />

installation <strong>and</strong> connection of the utilities required<br />

<strong>for</strong> operating the <strong>construction</strong> site (especially<br />

electricity, water, telephone etc.) <strong>and</strong> <strong>general</strong><br />

facilities <strong>and</strong> equipment (building site fencing,<br />

signboards, site lighting etc.) shall be arranged by<br />

the company constructing the building shell. Be<strong>for</strong>e<br />

starting work, all other Contractors working at the<br />

building site have to reach an agreement with the<br />

company constructing the building shell regarding<br />

electricity <strong>and</strong> water consumption, the use of<br />

telephones <strong>and</strong> signboards <strong>and</strong> the corresponding<br />

payment be<strong>for</strong>e starting their work; arrangements<br />

must also be made by the company constructing the<br />

building shell regarding the use of the access road to<br />

the building site. Any claims made to the Employer<br />

in connection with the above paragraph shall be<br />

excluded. Each <strong>contract</strong>or shall be responsible <strong>for</strong><br />

installing <strong>and</strong> maintaining its work area lighting <strong>and</strong><br />

shall include the costs into its lumpsum or unit<br />

prices.<br />

The company constructing the building shell shall be<br />

obligated to protect the <strong>construction</strong> - without<br />

special remuneration, repeatedly <strong>and</strong> <strong>for</strong> the entire<br />

duration of <strong>construction</strong> work - from intrusion of<br />

precipitation <strong>and</strong> to remove precipitation that has<br />

entered the building to make the per<strong>for</strong>mance of<br />

finishing works possible. Every <strong>contract</strong>or shall be<br />

obligated to take adequate measures allowing it to<br />

per<strong>for</strong>m its work during bad weather <strong>conditions</strong> (in<br />

particular <strong>construction</strong> work during winter) <strong>and</strong> to<br />

take the necessary precautions <strong>for</strong> the protection of<br />

its work from climatic influence (water, snow, frost,<br />

storm etc.) <strong>and</strong> actions of third parties (v<strong>and</strong>alism,<br />

theft etc.)<br />

The Contractor shall notify the Employer <strong>and</strong> site<br />

supervisor immediately after placement of the order<br />

of the name of a person authorized to represent the<br />

company in technical <strong>and</strong> commercial matters, who<br />

is represented by the local site manager. A person<br />

participating in coordination talks, meetings etc. on<br />

behalf of the Contractor shall be deemed to be an<br />

authorized representative. If the authorized person<br />

is permanently prevented from fulfilling its duties on<br />

account of death or resignation, the Contractor shall<br />

be obligated to nominate a new authorized person<br />

without delay. Until a new appointment has been<br />

made it shall be agreed that the site manager or<br />

<strong>for</strong>eman working at the site shall be solely<br />

responsible <strong>for</strong> making binding decisions on behalf<br />

<strong>and</strong> <strong>for</strong> account of the Contractor. The company<br />

constructing the building shell shall be obligated to<br />

nominate a site manager who is responsible <strong>for</strong> the<br />

<strong>construction</strong> work <strong>and</strong> authorized to act on behalf of<br />

the Contractor without limitations in dealings with<br />

competent authorities regarding security matters,<br />

<strong>and</strong> it shall be obligated to make all the required<br />

statements to the authorities. All site managers <strong>and</strong><br />

representatives of all <strong>contract</strong>ors shall be equipped<br />

with mobile phones at the Contractors’ expense.<br />

3. Prices <strong>and</strong> settlements<br />

Contract with unit prices <strong>and</strong> scope of work<br />

compensated with unit prices<br />

3.1.1. Unit prices shall be firm prices valid until<br />

two months after faultless per<strong>for</strong>mance of the entire<br />

<strong>contract</strong> work <strong>and</strong> shall be divided into wage <strong>and</strong><br />

other shares. The unit prices quoted shall apply to<br />

the entire building project without making any<br />

differences between individual building units, floor<br />

levels, floor plans, <strong>construction</strong> depth, room sizes<br />

<strong>and</strong> time of execution, including unexpected delays<br />

in execution, unless otherwise expressly specified in<br />

the specs. The necessary auxiliary <strong>and</strong><br />

complementary works shall also be compensated<br />

with the unit prices so that the sum total of all work<br />

items contained in the specs will correspond to a<br />

<strong>construction</strong> complying with <strong>general</strong>ly accepted<br />

technical st<strong>and</strong>ards <strong>and</strong> codes of practice <strong>and</strong><br />

meeting regulatory requirements.<br />

In case of technical plants the unit prices must be<br />

quoted in such a way that the sum total of all items<br />

of the specs result in an installed, regulated,<br />

accepted <strong>and</strong> ready-to-operate plant with all<br />

necessary accessories, even if the latter are not<br />

specifically listed in the specs, which can be put into<br />

operation, including documentation, operating <strong>and</strong><br />

user manuals, as-built drawings, official licences <strong>and</strong><br />

training, if required also repeatedly.<br />

In case of deliveries only, unit prices include the<br />

shipment to the place of installation at the site <strong>and</strong><br />

the place specified by the site supervisor <strong>for</strong><br />

intermediate storage within the building. If the<br />

supplier has made no arrangements <strong>for</strong> the<br />

transportation of the goods within the building site /<br />

the building, the Employer shall be entitled to<br />

commission someone with the transportation at the<br />

supplier’s expense. The Employer shall be entitled to<br />

dem<strong>and</strong> partial shipments of the delivery quantities.<br />

3.1.2. The unit prices also include compensation<br />

<strong>for</strong> all work <strong>and</strong> services to be per<strong>for</strong>med in<br />

accordance with these <strong>contract</strong> <strong>terms</strong> <strong>and</strong> <strong>conditions</strong><br />

or which are part of the complete <strong>and</strong> faultless<br />

execution of the work in accordance with <strong>general</strong>ly<br />

accepted codes of practice, including in particular<br />

also the as-built drawings, documentation etc.<br />

specified in article 3.1.1..<br />

3.1.3. An extended or reduced scope of individual<br />

work or delivery items do not entitle the Contractor<br />

to increase unit prices or dem<strong>and</strong> any additional<br />

compensation whatsoever. The Employer shall be<br />

entitled also after conclusion or during execution of<br />

the <strong>contract</strong> to cancel the per<strong>for</strong>mance of individual<br />

items of work either partially or completely or to<br />

have them executed in a different way without<br />

consequences as to the costs. The Employer shall<br />

also be entitled to remove individual items from the<br />

specs / scope of supply or reduce them without<br />

changing the unit prices. The Contractor shall<br />

examine the building ground during the execution of<br />

the <strong>construction</strong> work <strong>and</strong> take all measures<br />

necessary <strong>for</strong> the successul execution of the work. If<br />

it turns out that excess quantities in addition to<br />

those listed in the specs or the per<strong>for</strong>mance of<br />

additional or changed work is necessary <strong>for</strong> the<br />

successful <strong>construction</strong> of the building, article 3.1.5<br />

shall apply accordingly. If the Contractor does not<br />

notify the Employer of this <strong>and</strong> does not prepare a<br />

supplementary proposal, it shall lose its claim <strong>for</strong><br />

additional compensation.<br />

3.1.4. If it turns out during the per<strong>for</strong>mance of<br />

the work that the quantities of individual items are<br />

exceeded by more than 5%, the Contractor shall<br />

notify the Employer of this circumstance without<br />

delay, providing detailed in<strong>for</strong>mation in writing on<br />

the individual items concerned. The invoicing of<br />

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SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

additional quantities in partial invoices does not<br />

constitute a written notification. Additional quantities<br />

may be executed only after written approval of the<br />

excess quantities by the Employer. If the Contractor<br />

fails to notify the Employer, it loses any claims <strong>for</strong><br />

the compensation of excess quantities.<br />

3.1.5. If changes in the execution drawings<br />

require the per<strong>for</strong>mance of additional work which<br />

was not <strong>for</strong>eseeable from the descriptions of the<br />

work in the specs, the drawings on which the <strong>tender</strong><br />

was based <strong>and</strong> official notices (<strong>for</strong>eseeable changes<br />

shall not be compensated with the unit prices as<br />

auxiliary work), the price <strong>for</strong> the additional work<br />

shall be determined by the Contractor on the basis<br />

of the price <strong>for</strong>mation of the unit prices quoted in<br />

the proposal, proven <strong>and</strong> submitted to the Employer<br />

in the <strong>for</strong>m of a supplementary proposal. In addition<br />

the basic calculation principles necessary <strong>for</strong><br />

assessing the supplementary proposal (in particular<br />

total surcharge, interest during <strong>construction</strong>,<br />

imputed risk, profit margin, total material surcharge<br />

/ external labour surcharge <strong>and</strong> gross average wage<br />

price etc.) shall be provided to the Employer without<br />

request. The Employer shall examine the<br />

supplementary proposal, determining its price on the<br />

basis of the above-mentioned criteria <strong>and</strong><br />

commission the additional work. If the Contractor<br />

fails to submit a supplementary proposal be<strong>for</strong>e<br />

execution of the work or if it executes the additional<br />

work be<strong>for</strong>e the Employer has placed the order, it<br />

has lost its claim <strong>for</strong> additional compensation. The<br />

remuneration determined by the Employer as<br />

mentioned above <strong>for</strong> additional work per<strong>for</strong>med may<br />

be contested by the Contractor only, if the<br />

remuneration specified by the Employer is overtly<br />

inadequate. The same applies to project extensions.<br />

In this case the Contractor shall also be obligated to<br />

per<strong>for</strong>m the additional work necessitated by the<br />

project extension at the price determined in<br />

accordance with the above principles.<br />

3.2. Contract with lump sum price <strong>and</strong> scope of<br />

work <strong>and</strong> service compensated with lump sum price:<br />

3.2.1. The lump sum price agreed shall constitute<br />

a guaranteed lump sum price in accordance with<br />

article 1170 a Austrian Civil Code (ABGB), shall be<br />

understood as price <strong>for</strong> the complete work faultlessly<br />

executed in accordance with <strong>general</strong>ly accepted<br />

technical st<strong>and</strong>ards <strong>and</strong> codes of practice <strong>and</strong> with<br />

these <strong>general</strong> <strong>tender</strong> <strong>and</strong> <strong>contract</strong> <strong>terms</strong> <strong>and</strong><br />

<strong>conditions</strong>. The lump sum price shall compensate all<br />

work <strong>and</strong> services to be per<strong>for</strong>med in accordance<br />

with the <strong>general</strong> <strong>contract</strong> <strong>terms</strong> <strong>and</strong> <strong>conditions</strong>,<br />

which are part of a complete <strong>and</strong> faultless execution<br />

of the building in accordance with <strong>general</strong>y accepted<br />

codes of practice, including in particular as-built<br />

drawings, documentation, operating <strong>and</strong><br />

maintenance manuals <strong>and</strong> – upon request –<br />

trainings. Unless otherwise specified in the letter of<br />

acceptance the lump sum price shall also comprise<br />

additional expenses <strong>and</strong> remuneration <strong>for</strong> additional<br />

or altered work per<strong>for</strong>med as a result of worse site<br />

<strong>conditions</strong> than expected. The lump sum price shall<br />

also include changes, additions <strong>and</strong> more detailed<br />

specs of the <strong>tender</strong> project <strong>and</strong> the additional work<br />

<strong>and</strong> expenses <strong>for</strong> the execution. The agreed lump<br />

sum price shall remain unchanged, if excess <strong>and</strong><br />

additional work becomes necessary as a result of<br />

changes in the execution drawings, unless the<br />

changes in the drawings are considered as a major<br />

project change; e.g. the lump sum price is not<br />

changed on account of alterations to the room layout<br />

<strong>and</strong> a subsequent increase in the number of partition<br />

walls, doors, windows <strong>and</strong> outlets, or on account of<br />

the relocation of stairways, elevators etc. .<br />

3.2.2. If major changes in the project result in<br />

additional <strong>construction</strong>-related expenses <strong>for</strong> the<br />

Contractor exceeding 3 per cent of the <strong>contract</strong> sum,<br />

article 3.1.5 shall apply accordingly.<br />

If work included in the lump sum price need not be<br />

executed as a result of project changes, the lump<br />

sum price shall be reduced by the corresponding<br />

reduction in the scope of work; in case of doubt the<br />

reduction in the scope of work shall be determined<br />

on the basis of the – otherwise irrelevant – unit<br />

prices of the specs of the original proposal. In case<br />

of deliveries only, the lump sum price shall include<br />

the delivery to the place of installation at the<br />

building site <strong>and</strong> the place specified by the site<br />

supervisor <strong>for</strong> intermediate storage within the<br />

building. If the supplier has made no arrangements<br />

<strong>for</strong> the transportation of the goods within the<br />

building site / the building, the Employer shall be<br />

entitled to commission someone with the<br />

transportation at the Contractor’s expense. The<br />

Employer shall be entitled to dem<strong>and</strong> partial<br />

shipments of the delivery quantities.<br />

3.3. Cost-plus work<br />

Cost-plus work is work required <strong>for</strong> the execution of<br />

the order, but not included in the price as specified<br />

in article 3.1. <strong>and</strong> 3.2.. The Employer shall be<br />

obligated to prepare separate <strong>and</strong> clearly marked<br />

reports on cost-plus work per<strong>for</strong>med; corresponding<br />

entries into the <strong>construction</strong> log book are invalid.<br />

Cost-plus work may be executed only after written<br />

approval by the Employer or its authorized<br />

representative. Cost-plus work is specially ordered<br />

by the site supervisor in separate cost-plus reports.<br />

If cost-plus reports are not signed by the site<br />

supervisor the corresponding work shall be deemed<br />

to be not per<strong>for</strong>med <strong>and</strong> thus cannot be<br />

remunerated irrespective of its usual<br />

reimbursement. The cost-plus hours actually<br />

per<strong>for</strong>med shall be recorded by the Contractor, <strong>and</strong><br />

the original records shall be submitted to the site<br />

supervisor <strong>for</strong> examination <strong>and</strong> approval on a daily<br />

basis. Cost-plus work shall be settled in separate<br />

partial invoices at the end of each calendar month.<br />

Article 5 shall apply accordingly with regard to<br />

payment. The sum total of the partial invoices <strong>for</strong><br />

cost-plus work shall be included in the final account.<br />

The following basic principles shall apply to the<br />

settlement of cost-plus hours. Foreman hours are<br />

reimbursed only if ordered; only hours during which<br />

actual work is per<strong>for</strong>med will be recognized; work<br />

breaks, bad weather times, expenses <strong>for</strong> the<br />

procurement of equipment, travel time or time spent<br />

<strong>for</strong> the preparation of the place of work are not<br />

recognized. The hourly rates charged <strong>for</strong> cost-plus<br />

work shall include the required supervision <strong>and</strong> the<br />

use <strong>and</strong> maintenance of the necessary equipment<br />

<strong>and</strong> tools. Only <strong>construction</strong> machinery,<br />

jackhammers <strong>and</strong> pumps may be invoiced<br />

separately. If the work per<strong>for</strong>med is inadequate, the<br />

Employer shall be entitled to make deductions.<br />

Invoices must specify the number of cost-plus hours<br />

per<strong>for</strong>med <strong>and</strong> the corresponding work executed.<br />

The Employer shall reserve the right to examine at a<br />

later time, if the work verified <strong>and</strong> per<strong>for</strong>med is not<br />

comprised in the work <strong>and</strong> services included in the<br />

lump sum price or the items of the specs.<br />

4. Time Schedule <strong>and</strong> Deadlines<br />

4.1. The beginning of the <strong>construction</strong> work,<br />

intermediate deadlines <strong>for</strong> specific <strong>construction</strong><br />

milestones <strong>and</strong> the completion of the <strong>construction</strong><br />

work are specified in the letter of acceptance <strong>and</strong><br />

the <strong>construction</strong> time schedule. If the letter of<br />

acceptance does not specify deadlines, but <strong>terms</strong> <strong>for</strong><br />

the completion of works or, respectively, the<br />

fulfilment of specific milestones, the <strong>terms</strong> start with<br />

the beginning of the relevant <strong>construction</strong> work by<br />

the Contractor. The day agreed with or specified by<br />

the site supervisor <strong>for</strong> the beginning of <strong>construction</strong><br />

work shall be deemed to be the first working day. If<br />

no such date has been specified the day of the first<br />

daily log of <strong>construction</strong> shall apply. Bad weather<br />

days or other non-working days shall have no<br />

influence on the above <strong>terms</strong> <strong>and</strong> deadlines.<br />

4.2. The Contractor shall undertake to prepare a<br />

time schedule in cooperation with the Employer, to<br />

regularly update this time schedule <strong>and</strong> notify the<br />

Employer accordingly in a way ensuring receipt. If<br />

no agreement can be reached the Contractor shall<br />

be obligated to accept a <strong>construction</strong> time schedule<br />

specified by the Employer which corresponds to the<br />

overall time schedule on which the <strong>tender</strong> was based<br />

<strong>and</strong> which allows a coordinated implementation of all<br />

assemblies by third parties within the overall time<br />

schedule.<br />

4.3. Upon the Employer’s request the Contractor<br />

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SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

shall be obligated to prepare a complete <strong>and</strong> detailed<br />

time schedule <strong>and</strong> revise it repeatedly in accordance<br />

with the actual progress of the <strong>construction</strong> work; if<br />

the Contractor refuses to collaborate in the<br />

preparation of the detailed time schedule in a timely<br />

manner, the Employer shall be entitled to specify the<br />

detailed time schedule with binding effect <strong>for</strong> the<br />

Contractor, also with regard to the consequences of<br />

delays in the execution. The Employer shall be<br />

entitled to dem<strong>and</strong> changes of the time schedule <strong>and</strong><br />

the execution of specific work ahead of schedule<br />

without additional reimbursement, if this is essential<br />

<strong>for</strong> the progress of the entire project.<br />

4.4. The Contractor shall bear the risk <strong>for</strong><br />

impediments as a result of extraordinary events or<br />

work per<strong>for</strong>med under difficult working <strong>conditions</strong>.<br />

Such impediments <strong>and</strong> work per<strong>for</strong>med under<br />

difficult working <strong>conditions</strong> such as bad weather,<br />

frost, cold temperatures etc. do not extend the<br />

<strong>construction</strong> period or defer intermediate or final<br />

deadlines. Irrespective of this the Contractor shall be<br />

obligated to notify the Employer immediately in<br />

writing about any delays in the <strong>construction</strong> work,<br />

specifying the corresponding reasons.<br />

4.5. If intermediate deadlines or the final<br />

deadline or <strong>terms</strong> <strong>for</strong> the fulfilment of specific<br />

milestones specified by the Employer in the letter of<br />

acceptance or in the above <strong>contract</strong> provisions are<br />

exceeded, the Contractor shall have to pay a<br />

<strong>contract</strong> penalty. Unless otherwise agreed in the<br />

letter of acceptance, the following <strong>contract</strong> penalties<br />

shall be paid:<br />

a) If agreed deadlines are exceeded, <strong>for</strong> each<br />

calendar day of delay, in per cent of the <strong>contract</strong><br />

sum (known at the time of delay) (incl. VAT) <strong>for</strong><br />

<strong>contract</strong> sums<br />

- up to € 10,000.-- 1 %<br />

- up to € 100,000.-- 0.5 %<br />

- up to € 1.000,000.-- 0.10 %<br />

- up to € 1.000,000.-- 0.05 %<br />

b) If the <strong>contract</strong>ually agreed final <strong>construction</strong><br />

deadline is exceeded, 2.5% of the final account sum<br />

plus the corresponding percentage specified in lit. a)<br />

above <strong>for</strong> each calendar day of delay.<br />

If the Contractor does not submit <strong>construction</strong><br />

drawings or samples in accordance with art. 2.9 by<br />

the agreed deadline despite a one-time written<br />

request, the Employer shall be entitled to have these<br />

drawings prepared by a third party at the<br />

Contractor’s expense, <strong>and</strong> the Contractor shall be<br />

entitled to the payment of a <strong>contract</strong> penalty in the<br />

amount of 1.0% of the net costs of production.<br />

The <strong>contract</strong> penalty shall be payable irrespective of<br />

whether the Employer has suffered damage as a<br />

result of the delay or not or whether the Contractor<br />

is responsible <strong>for</strong> the delay/missed deadline or not.<br />

The Employer reserves the right to make an<br />

additional claim <strong>for</strong> damages, if the actual damage<br />

suffered exceeds the <strong>contract</strong> penalty. The work is<br />

considered sucessfully completed, if the work is<br />

completed free of defects <strong>and</strong> if the Employer has<br />

been notified in writing thereof. Contract penalties<br />

can be deducted from partial payments or shall be<br />

paid to the Employer upon its request without raising<br />

counter claims.<br />

5. Partial payments<br />

5.1. Partial paymnents are made by the<br />

Employer on condition that the letter of acceptance<br />

has been signed without reservation by the<br />

Contractor’s authorized representative <strong>and</strong> that the<br />

Contractor has submitted the required per<strong>for</strong>mance<br />

bond to the Employer. Unless otherwise agreed in<br />

the letter of acceptance, partial payments comprise<br />

the work <strong>and</strong> services per<strong>for</strong>med during one<br />

calender month. Irrespective of the - if necessary<br />

extended - <strong>construction</strong> period, partial invoices can<br />

be made out if expressly agreed in writing <strong>and</strong> only<br />

to the maximum number of partial invoices specified<br />

in the letter of acceptance.<br />

Partial payments are effected only to a maximum<br />

amount of 80% of the total <strong>contract</strong> sum, if the<br />

partial invoice meets the requirements of the<br />

applicable sales tax law <strong>and</strong> the documents required<br />

<strong>for</strong> examining the partial invoice (jointly examined<br />

measurement sheets signed by the site supervisor,<br />

drawings, proof of delivery <strong>and</strong> work per<strong>for</strong>med etc.)<br />

have been submitted to the Employer together with<br />

the partial invoice. Examination, payment <strong>and</strong> cash<br />

discount periods shall not start be<strong>for</strong>e receipt of all<br />

documents required <strong>for</strong> partial invoices. One original<br />

of the partial invoice plus corresponding documents<br />

shall be submitted directly to the Employer by the<br />

tenth day of each calender month; two copies of the<br />

partial invoice plus corresponding documents shall<br />

be submitted by the same date to the site<br />

supervisor. For partial invoices received by the<br />

Employer or site supervisor after the 10 th day of the<br />

relevant calendar month, the period specified in<br />

article 5.2. below starts only on the 10th day of the<br />

following calendar month.<br />

The submission of a proper invoice in accordance<br />

with the <strong>terms</strong> of this <strong>contract</strong> <strong>and</strong> the applicable<br />

legislation is the prerequisite <strong>for</strong> the payment period<br />

to start.<br />

5.2. Unless otherwise agreed in the letter of<br />

acceptance,<br />

- 10% of the amount of the partial invoice shall be<br />

retained <strong>for</strong> coverage by the Employer<br />

- partial invoices submitted with all the required<br />

documents shall be examined within two weeks<br />

after the deadline <strong>for</strong> the submission of invoices<br />

(10th day of each calendar month),<br />

- payments of partial invoices shall be effected net<br />

within 45 days after the end of the examination<br />

period <strong>and</strong> with 3% cash discount within 30 days<br />

after the end of the examination period.<br />

5.3. If partial payments to be made in<br />

accordance with the progress of the <strong>construction</strong><br />

work or a payment schedule have been agreed in<br />

case of lump sum <strong>contract</strong>, the above provisions<br />

shall apply accordingly, <strong>and</strong> partial invoices <strong>for</strong> the<br />

agreed payments shall be made out. Instead of<br />

measurement sheets the Contractor shall verify that<br />

at the end of the month preceding the submission of<br />

an invoice the progress of the <strong>construction</strong> work<br />

scheduled <strong>for</strong> that month has been achieved. If the<br />

progress required according to the time schedule has<br />

not been achieved that partial invoice shall be<br />

deemed to be submitted only on the 10th day of the<br />

month following the month in which the<br />

corresponding progress of the <strong>construction</strong> work has<br />

been achieved. The coverage retention shall be<br />

deducted also from partial invoices based on agreed<br />

partial payments or payment schedules.<br />

5.4. Payments shall be effected by means of<br />

bank transfer to the Contractor’s account or by<br />

issuing a cheque. The day on which the Employer<br />

has instructed its bank to transfer the money or - in<br />

case of payment by cheque - the day the cheque has<br />

been <strong>for</strong>warded to the Contractor shall be decisive<br />

<strong>for</strong> timeliness of payment. The payment of partial<br />

invoices by the Employer does not mean that the<br />

Contractor’s work has been approved or accepted by<br />

the Employer with regard to quality or quantity.<br />

Claims <strong>for</strong> structural damage repairs shall be<br />

invoiced by the Contractor separately <strong>and</strong> no later<br />

than two weeks after per<strong>for</strong>mance; otherwise the<br />

Contractor shall lose its claims.<br />

5.5. Cash discounts may be deducted from all<br />

payments effected within the cash discount period in<br />

accordance with lit. d) irrespective of whether parts<br />

of the invoice amount have not been paid completely<br />

<strong>for</strong> justified or unjustified reasons. The agreed<br />

deductions <strong>and</strong> cash discounts shall also apply to<br />

selective items, additions, subsequent proposals,<br />

cash-plus work <strong>and</strong> partial invoices.<br />

6. Final account<br />

6.1. The final account shall be submitted<br />

within 120 days after completion of the work. All<br />

documents <strong>and</strong> verifications required <strong>for</strong> the<br />

examination of the invoice shall be enclosed with the<br />

final account (e.g. article 2.10., 11.11., 9.13.).<br />

Unless otherwise agreed in the letter of acceptance,<br />

the period of examination shall be 60 days <strong>and</strong> the<br />

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payment shall be effected after the end of the<br />

examination period net within 45 days <strong>and</strong> with 3%<br />

cash discount within 30 days. In addition, articles<br />

5.1. to 5.5. shall apply accordingly; the coverage<br />

retention shall be replaced by a 5% liability retention<br />

of the sum total <strong>for</strong> the duration of the warranty<br />

period plus three months. In case of defects the<br />

period of payment <strong>and</strong> cash discount period shall<br />

start to run after removal of all defects. If the<br />

Contractor does not submit the final account despite<br />

a reminder <strong>and</strong> grace period, the Employer shall be<br />

entitled, but not obligated, to have the final account<br />

prepared by a third party at the Contractor’s<br />

expense. The submission of a proper invoice in<br />

accordance with the <strong>terms</strong> of this <strong>contract</strong> <strong>and</strong> the<br />

applicable legislation is the prerequisite <strong>for</strong> the<br />

payment period to start.<br />

6.2. The Employer <strong>and</strong> its affiliated companies<br />

shall be entitled to withhold receivables <strong>and</strong> claims<br />

due to the Contractor or its affiliated companies<br />

from the Employer or its affiliated companies,<br />

without interest until the Contractor or its affiliated<br />

company has fulfiled these receivables or claims<br />

(also including imperfect obligations or warranty<br />

claims, if the warranty period has already expired<br />

but the claim has been raised within the warranty<br />

period). The Contractor shall guarantee that its<br />

affiliated companies shall recognize this right of<br />

retention of the Employer <strong>and</strong> its affiliated<br />

companies. In case the Contractor’s affiliated<br />

companies do not recognize this right of retention,<br />

the Contractor shall undertake to indemnify the<br />

Employer <strong>and</strong> its affiliated companies against any<br />

claims; this means in particular that the Contractor<br />

shall reimburse to the Employer or its affiliated<br />

company in case of defeat in a lawsuit all costs <strong>and</strong><br />

disadvantages incurred by the Employer or its<br />

affiliated company as a result of the fact that the<br />

Contractor’s affiliated company has not recognized<br />

the Employer’s right of retention. The Contractor<br />

further undertakes to become a joint <strong>and</strong> several codebtor<br />

of all liabilities due to the Employer from the<br />

Contractor’s affiliated companies. (A company<br />

affiliated to the Contractor or the Employer is a<br />

company affiliated to the Contractor or Employer by<br />

a direct or indirect participation at the time of<br />

placing the order or of exercising the right of<br />

retention or at the time the claim arises).<br />

7. Preliminary assessment <strong>and</strong> site<br />

inspection, <strong>for</strong>mal acceptance, warranty, final<br />

warranty inspection<br />

7.1 The Employer can set a date <strong>for</strong> a<br />

preliminary assessment <strong>and</strong> site inspection (PA/SI)<br />

be<strong>for</strong>e or on the date of completion. During the<br />

PA/SI the degree of completion is determined <strong>and</strong><br />

defects are identified by the Employer. Minutes of<br />

the PA/SI shall be prepared. The PA/SI does not<br />

constitute an acceptance, but only serves to<br />

determine the state of the work. Any deadlines<br />

specified in the minutes of the PA/SI <strong>for</strong> the repair of<br />

defects or completion of outst<strong>and</strong>ing work are no<br />

indication that the <strong>contract</strong>ually agreed date of<br />

completion has been extended or that the Employer<br />

waives the <strong>contract</strong> penalty.<br />

7.2. The <strong>for</strong>mal acceptance of the<br />

Contractor’s work shall be carried out at the<br />

Contractor’s request on completion of the entire<br />

building project. A certificate of acceptance is<br />

prepared in which the <strong>for</strong>mal acceptance is<br />

confirmed <strong>and</strong> any existing defects are listed. A<br />

<strong>for</strong>mal acceptance without the Employer’s written<br />

confirmation shall not be permissible. The start of<br />

utilization does not constitute a <strong>for</strong>mal acceptance.<br />

Be<strong>for</strong>e the Contractor <strong>for</strong>mally h<strong>and</strong>s over the site to<br />

the Employer, a final cleaning must be carried out; if<br />

necessary the cleaning must be repeated be<strong>for</strong>e the<br />

entire project is <strong>for</strong>mally h<strong>and</strong>ed over to the<br />

Employer. No later than two weeks be<strong>for</strong>e <strong>for</strong>mal<br />

acceptance the Contractor shall submit to the<br />

Employer all as-built drawings (on paper <strong>and</strong> data<br />

carrier), operating manuals, certificates, test log<br />

books, maintenance instructions, official notices,<br />

reports etc. in three copies. Without these<br />

documents no <strong>for</strong>mal acceptance is possible.<br />

7.3. Building services (HAVCR) plants <strong>and</strong><br />

equipment <strong>and</strong> operational systems, plants <strong>and</strong><br />

installations, including EDP systems, shall be put into<br />

operation <strong>for</strong> the site inspection; documentation,<br />

maintenance <strong>and</strong> operating instructions shall be<br />

h<strong>and</strong>ed over during site inspection <strong>and</strong> the staff of<br />

the Employer <strong>and</strong> user shall be trained accordingly.<br />

7.4. Until <strong>for</strong>mal acceptance of the work the<br />

Contractor shall bear all risks <strong>and</strong> responsibilities<br />

related to its work <strong>and</strong> <strong>for</strong> its materials stored at the<br />

site. The Contractor shall provide a complete set of<br />

wear parts free of charge <strong>for</strong> building services<br />

(HAVCR equipment).<br />

7.5. The warranty period shall start with the<br />

<strong>for</strong>mal acceptance of the entire building project. If<br />

defects are identified during <strong>for</strong>mal acceptance, the<br />

warranty period <strong>for</strong> the entire work executed by the<br />

Contractor starts with the moment the Contractor<br />

has repaired the defects specified in the certificate of<br />

acceptance <strong>and</strong> notified the Employer in writing.<br />

7.6. Three months be<strong>for</strong>e expiry of the<br />

warranty period the Contractor shall request the<br />

Employer in writing to carry out a final warranty<br />

inspection. The Employer shall set a date <strong>for</strong> the<br />

final warranty inspection. The warranty period shall<br />

expire three months after receipt of the request <strong>for</strong><br />

final warranty inspection at the earliest. At the final<br />

warranty inspection the Contractor’s work is reexamined<br />

<strong>and</strong> any existing defects or new defects<br />

identified after <strong>for</strong>mal acceptance are recorded. The<br />

defects identified at the final warranty inspection<br />

shall be repaired as soon as possible. For defects<br />

repaired during the warranty period or identified at<br />

the final warranty inspection a new three-year or<br />

seven-year warranty period shall start.<br />

7.7. The Contractor shall guarantee the<br />

completion of its work without defects <strong>and</strong> in a<br />

timely manner <strong>and</strong> in compliance with all <strong>contract</strong>ual<br />

provisions <strong>and</strong> legal regulations. It shall further<br />

guarantee that the work has been executed in<br />

accordance with <strong>general</strong>ly accepted technical<br />

st<strong>and</strong>ards <strong>and</strong> codes of practice <strong>and</strong> correspond to<br />

the state-of-the-art. The warranty period <strong>for</strong> tiling<br />

<strong>and</strong> sealing works <strong>and</strong> <strong>construction</strong>s made of watertight<br />

concrete shall be seven years, the warranty<br />

period <strong>for</strong> all other works shall be three years,<br />

unless otherwise specified in the letter of<br />

acceptance.<br />

7.8. Defects arising during the warranty<br />

period <strong>and</strong> any damage caused by such defects shall<br />

be repaired by the Contractor free of charge within<br />

the period of time set by the Employer without<br />

prejudicing any other rights the Employer may have.<br />

In case of urgency the Employer shall be entitled to<br />

take measures itself to repair defects or prevent the<br />

consequences of defects without prior notification<br />

<strong>and</strong> at the Contractor’s expense. If the Contractor<br />

does not repair the defects despite setting of a<br />

period of grace, the Employer shall have the right to<br />

have the defects <strong>and</strong> the damage caused by the<br />

defects repaired by third parties at the Contractor’s<br />

expense. The Employer shall also be entitled to<br />

dem<strong>and</strong> an adequate price reduction instead of a<br />

repair.<br />

7.9. The Contractor shall be obligated to<br />

reimburse to the Employer the expenditure of time<br />

of the Employer’s own staff or the person<br />

commissioned by the Employer with the<br />

identification fo defects, the supervision of repairs<br />

<strong>and</strong> the inspection of the adequacy of repairs carried<br />

out, at 1.5 times the applicable hourly rates <strong>for</strong> civil<br />

engineering services.<br />

7.10. The liability retention shall be withheld<br />

<strong>for</strong> the duration of the warranty period. If agreed in<br />

the letter of acceptance that the liability retention<br />

can be replaced by a bank guarantee, the liability<br />

retention amount shall be paid within thirty days<br />

after receipt of the bank guarantee which shall be<br />

valid <strong>for</strong> the term of the warranty period plus three<br />

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months. The term of payment <strong>for</strong> the liability<br />

retention to be paid out on account of the<br />

submission of a bank guarantee shall start with the<br />

removal of all defects specified in the certificate of<br />

acceptance.<br />

7.11. If notices of defects are issued or warranty<br />

claims are raised be<strong>for</strong>e the end of the warranty<br />

period, corresponding warranty claims can be<br />

brought be<strong>for</strong>e a court also after expiry of the<br />

warranty period.<br />

8. Withdrawal, cancellation, downtime<br />

periods<br />

8.1. The Employer shall be entitled to<br />

withdraw from the <strong>contract</strong><br />

- if insolvency proceedings have been opened<br />

against the Contractor’s assets or if the application<br />

to open insolvency proceedings has been refused <strong>for</strong><br />

lack of assets.<br />

- if the Contractor is in delay with the per<strong>for</strong>mance<br />

of its work <strong>and</strong> has not made up <strong>for</strong> the delay<br />

despite a reminder,<br />

- in the event of circumstances justifying the<br />

assumption that the Contractor will not or<br />

inadequately fulfil its obligations. Such circumstances<br />

prevail in particular, if the Contractor continues to<br />

execute its work inadequately or contrary to the<br />

<strong>contract</strong> despite warnings, uses building materials<br />

rejected by the site supervisor or repeatedly<br />

misses intermediate deadlines, thereby preventing<br />

other professionals working at the site from<br />

continuing their work.<br />

- if the Contractor has not per<strong>for</strong>med <strong>contract</strong>ually<br />

agreed work or failed to submit documents or<br />

verifications (e.g. per<strong>for</strong>mance bond or countersigned<br />

letter of acceptance) despite a reminder <strong>and</strong><br />

setting of an adequate period of grace. If the<br />

Employer withdraws from the <strong>contract</strong>, the<br />

Contractor shall not be entitled to any further<br />

payments; the Contractor shall be obligated to<br />

reimburse to the Employer additional expenses<br />

calculated in the following way: payments already<br />

made to the Contractor plus costs <strong>for</strong> the execution<br />

of the work by third parties minus reimbursement<br />

that would have been due to the Contractor, if it had<br />

completed the work as <strong>contract</strong>ually agreed. In<br />

addition the Contractor shall be obligated to pay a<br />

<strong>contract</strong> penalty in the amount of 5 per cent of the<br />

net <strong>contract</strong> sum specified in the letter of<br />

acceptance. Article 4.5. shall apply accordingly.<br />

8.2. In the event that the Contractor does<br />

not meet a <strong>contract</strong>ual obligation (including the<br />

removal of defects) or does not meet it in a timely<br />

manner despite the setting of an adequate period of<br />

grace, or if immediate action is necessary to avoid<br />

damage or meet intermediate or final deadlines, the<br />

Employer shall be entitled to commission third<br />

parties with the substitute per<strong>for</strong>mance of work or<br />

deliveries not carried out by the Contractor without<br />

prejudicing the other <strong>contract</strong>ual obligations.<br />

8.3. In any case any additional expenses<br />

incurred as a result of substitute per<strong>for</strong>mance, in<br />

particular any differences in price between the<br />

Contractor’s gross <strong>contract</strong> sum <strong>and</strong> the price at<br />

which the work is actually completed shall be<br />

reimbursed by the Contractor. The Employer shall<br />

not be obligated to issue a <strong>tender</strong> <strong>for</strong> the work<br />

executed by substitute per<strong>for</strong>mance. The Employer<br />

may decide at its own absolute discretion, whether<br />

to commission substitute per<strong>for</strong>mances at lump sum<br />

or unit prices or on a cash-plus basis. The objection<br />

that the substitute per<strong>for</strong>mance has been<br />

commissioned at an inadequately high price, shall<br />

not be permissible, if the additional expenses of the<br />

substitute per<strong>for</strong>mance do not exceed 50% of the<br />

prices agreed with the Contractor.<br />

8.4. The Employer shall be entitled to cancel<br />

the <strong>contract</strong>ual work be<strong>for</strong>e or during its execution.<br />

The work which has been per<strong>for</strong>med at the site until<br />

the time of cancellation shall be reimbursed at the<br />

unit prices agreed <strong>for</strong> the work in case of unit-price<br />

<strong>contract</strong>s; in case of a lump sum <strong>contract</strong> they shall<br />

be reimbursed with the amount corresponding to the<br />

value of the partial work which remains at the site.<br />

Unit prices <strong>for</strong> work or services calculated <strong>for</strong> the<br />

entire duration of the <strong>contract</strong> (e.g. site facilities or<br />

provision of utilities) shall be reimbursed with an<br />

amount corresponding to the period of time they<br />

have been used; the same shall apply, if the<br />

Employer withdraws from the <strong>contract</strong> in accordance<br />

with article 8.1. of this <strong>contract</strong> without any reason<br />

justifying the withdrawal. The Contractor shall not be<br />

entitled to make any additional claims.<br />

8.5. The Employer shall have the right to<br />

impose downtimes with a 10-day notification period.<br />

The Employer shall notify the Contractor of the<br />

expected duration of the downtime. The Contractor<br />

shall discontinue the work, protect the work already<br />

per<strong>for</strong>med <strong>and</strong> take adequate safety measures at<br />

the site. The work shall be resumed within 10 days<br />

after the Employer’s notification. The duration of<br />

imposed downtimes extend agreed <strong>terms</strong> <strong>and</strong><br />

deadlines (see article 4) accordingly. If the<br />

downtime imposed by the Employer exceeds 6<br />

months the Contractor shall be entitled to withdraw<br />

from the <strong>contract</strong>; in this event article 8.4. shall<br />

apply accordingly.<br />

8.6. Within 10 days of receipt of the letter of<br />

acceptance the Contractor shall submit a bank<br />

guarantee securing the fulfilment of the <strong>contract</strong><br />

(per<strong>for</strong>mance bond) in the amount of at least 15%<br />

of the gross <strong>contract</strong> sum, with the text specified by<br />

the Employer <strong>and</strong> valid until the <strong>for</strong>mal acceptance<br />

of the work in accordance with article 7.2. plus three<br />

months. Per<strong>for</strong>mance <strong>and</strong> retention bonds as well as<br />

the retention withheld in cash shall serve as security<br />

<strong>for</strong> the Employer’s claims of any kind arising from<br />

the <strong>contract</strong>, the non-per<strong>for</strong>mance of the <strong>contract</strong> or<br />

from claims due to the Employer arising from the<br />

withdrawal from the <strong>contract</strong>; in particular they also<br />

provide security <strong>for</strong> claims in accordance with<br />

sections 21 <strong>and</strong> 22 Austrian Bankruptcy Act <strong>and</strong><br />

sections 20 a, 20 b <strong>and</strong> 20 d Austrian Federal Tax<br />

Code (AO). The Employer shall also be entitled to<br />

use the per<strong>for</strong>mance <strong>and</strong> retention bonds to satisfy<br />

other claims against the <strong>contract</strong>or or claims of the<br />

Employer’s affiliated companies assigned to the<br />

Employer, even if such claims have another legal<br />

basis outside the scope of this <strong>contract</strong>. After<br />

conclusion of the <strong>contract</strong> the Employer shall be<br />

entitled to dem<strong>and</strong> additional security <strong>for</strong> work still<br />

to be per<strong>for</strong>med to a maximum amount of one fifth<br />

of the agreed gross <strong>contract</strong> sum. In case of<br />

<strong>contract</strong>s to be executed within a period of three<br />

months, up to two fifths may be dem<strong>and</strong>ed. The<br />

costs <strong>for</strong> the security, which may be in the <strong>for</strong>m of<br />

cash or bank guarantee at the Employer’s choice,<br />

<strong>and</strong> the lump sum manipulation fee in the amount of<br />

EUR 300.—plus VAT, which is due from the Employer<br />

on receipt of the invoice, shall be reimbursed by the<br />

Contractor. The security shall be submitted within<br />

two weeks after the corresponding notice by the<br />

Employer. If the Contractor does not or not fully<br />

meet its obligation to provide the above security <strong>and</strong><br />

reimburse the corresponding costs, the Employer<br />

shall be entitled to refuse any payment <strong>and</strong><br />

withdraw from the <strong>contract</strong> without setting a period<br />

of grace; article 8.1. shall apply accordingly.<br />

If the Contractor exercises its right in accordance<br />

with sections 1170 b Austrian Civil Code, the<br />

deadline <strong>for</strong> per<strong>for</strong>mance pursuant to section 1170 b<br />

par. 2 Austrian Civil Code is specified by the<br />

Contractor as eight weeks from the confirmed<br />

receipt of the corresponding notice. The Employer<br />

may choose the <strong>for</strong>m of security <strong>and</strong> be entitled to a<br />

reimbursement of expenses in the amount of EUR<br />

300.00 plus VAT which is payable on receipt of the<br />

invoice issued by the Employer.<br />

8.7. With the final account the Contractor<br />

shall assert all claims from the building project, or<br />

otherwise any additional claims will be <strong>for</strong>feited.<br />

With the submission of the final account the<br />

Contractor declares that it shall raise no further<br />

claims from the entire building project. The<br />

Contractor may raise objections to the corrected<br />

final account within two weeks after receipt of the<br />

examined final account or, in case payment has<br />

already been affected, within two weeks after receipt<br />

of payment, stating reasons <strong>for</strong> the objection.<br />

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Objections shall be submitted in writing with<br />

cofirmation of receipt. If the objection is not<br />

submitted in time or in due <strong>for</strong>m, the corrected final<br />

account shall be deemed to be acknowledged, <strong>and</strong><br />

any other claims <strong>for</strong> remuneration exceeding the<br />

amount specified in the corrected final account shall<br />

be <strong>for</strong>feited. If the final account is submitted subject<br />

to additional claims the final account will be returned<br />

to the Contractor without examination. The<br />

Contractor shall re-submit the final account to the<br />

Employer without reservations. The examination<br />

period shall start only with the submission of a final<br />

account without reservations.<br />

9. General provisions<br />

9.1. The Contractor shall be entitled to assign<br />

claims against the Employer to third parties on<br />

condition that the Contractor in<strong>for</strong>ms the Employer<br />

at least 12 weeks in advance about the intended<br />

assignment of claims, or otherwise articles 8.1. <strong>and</strong><br />

4.5 b) shall apply correspondingly. The above<br />

notification <strong>and</strong> the notice of assignment itself shall<br />

be sent to the site supervisor <strong>and</strong> the Employer’s<br />

management by way of registered letter to the<br />

address of the company’s headquarters, whereby<br />

the date of postal delivery shall apply. Notifications<br />

of any other kind, in particular notes on invoices or<br />

similar <strong>for</strong>ms shall be excluded. A written<br />

confirmation from the assignee, in which the<br />

assignee acknowledges the order plus auxiliary<br />

agreements, in particular these General Tender <strong>and</strong><br />

Contract Terms <strong>and</strong> Conditions fully <strong>and</strong> with effect<br />

<strong>for</strong> itself, shall be enclosed with the Contractor’s<br />

notification.<br />

9.2. In case of assignment the parties agree<br />

a service charge (payable <strong>for</strong> the increased<br />

administrative ef<strong>for</strong>ts) in the amount of one ‰ of<br />

the claim assigned or to be assigned plus VAT, the<br />

minimum charge being EUR 300.00 plus VAT. This<br />

service charge can be set off at the Employer’s<br />

option against any of the Contractor’s receivables<br />

from the date of receipt of the Contractor’s<br />

notification of the planned assignment or the notice<br />

of assignment itself. Irrespective of <strong>and</strong> in addition<br />

to the above provisions the Contractor expressly<br />

acknowledges that assignments of claims in the<br />

above sense may burden the credit liabilities of the<br />

Employer or of subsidiaries of SPAR group. In the<br />

event of an assignment of claims the Contractor<br />

shall there<strong>for</strong>e be obligated to compensate any<br />

financial disadvantages incurred by the Employer or<br />

other subsidiaries of SPAR group in this connection,<br />

whereby a corresponding written confirmation issued<br />

by the credit institutions involved shall be expressly<br />

agreed to constitute sufficient proof of the<br />

disadvantages incurred. The burden of proof <strong>for</strong> the<br />

non-existence of such damage shall lie with the<br />

supplier.<br />

9.3. If the Contractor is appointed <strong>general</strong><br />

<strong>contract</strong>or by the Employer, it assumes the position<br />

of site coordinator <strong>and</strong> all responsibilities connected<br />

with the supervision of adherence to <strong>contract</strong>ual<br />

obligations. The Contractor shall nominate a physical<br />

person who will be responsible <strong>for</strong> coordination tasks<br />

<strong>and</strong> <strong>for</strong> ensuring that the written declarations <strong>and</strong><br />

notices required in accordance with the current<br />

legislation are submitted. If the implementation of<br />

the work assigned to the Contractor requires the use<br />

of adjacent sites, the Contractor shall be responsible<br />

<strong>for</strong> obtaining permissions <strong>for</strong> the use of the adjacent<br />

sites. If damage is caused to the adjacent sites in<br />

connection with the Contractor’s work, <strong>for</strong> whatever<br />

reasons, the Contractor shall indemnify the<br />

Employer against any claims, in particular against<br />

claims under sections364, 354 a <strong>and</strong> b Austrian Civil<br />

Code. This shall also apply, if the Employer is not the<br />

owner of the property, but liable to the property<br />

owner on account of <strong>contract</strong>ual obligations. If<br />

dem<strong>and</strong>ed by the neighbourhood, the Contractor<br />

shall arrange proceedings <strong>for</strong> the preservation of<br />

evidence at its own expense.<br />

9.4. Disagreements <strong>and</strong> disputes on whether<br />

payments to be made by the Employer are justified<br />

or have become due, shall not entitle the Contractor<br />

to suspend or discontinue the work or to withdraw<br />

from the <strong>contract</strong>.<br />

9.5. If the Employer has to provide drawings,<br />

the Contractor shall request these drawings from the<br />

Employer in a timely manner. Unless otherwise<br />

agreed, drawings shall be submitted eight days<br />

be<strong>for</strong>e the scheduled execution of the corresponding<br />

work at the latest, in specific cases, they may be<br />

submitted three days in advance at the latest.<br />

9.6. The Contractor shall at its own expense<br />

make provisions <strong>for</strong> the proper disposal of<br />

<strong>construction</strong> wastes <strong>and</strong> packing materials, thereby<br />

complying with the applicable legislation. If the<br />

Contractor does not fulfil its obligations, the<br />

Employer shall be entitled to have the waste <strong>and</strong><br />

packing materials removed at the Contractor’s<br />

expense.<br />

9.7. The Contractor shall employ only<br />

sub<strong>contract</strong>ors <strong>and</strong> suppliers approved by the<br />

Employer in writing. The Employer shall have the<br />

right to reject sub<strong>contract</strong>ors. The Contractor shall<br />

not be entitled to dem<strong>and</strong> extra expenses because of<br />

the rejection of a sub<strong>contract</strong>or. The Employer shall<br />

have the right to inspect the Contractor’s<br />

agreements with sub<strong>contract</strong>ors <strong>and</strong> to obtain from<br />

the Contractor any in<strong>for</strong>mation requested. These<br />

<strong>general</strong> <strong>contract</strong> <strong>terms</strong> <strong>and</strong> <strong>conditions</strong> shall be<br />

imposed on the sub<strong>contract</strong>ors with binding effect. If<br />

the Contractor commissions sub<strong>contract</strong>ors, it shall<br />

be fully liable <strong>for</strong> work per<strong>for</strong>med by the<br />

sub<strong>contract</strong>ors to the same extent as <strong>for</strong> its own<br />

work. Any liability of third parties, in particular the<br />

Employer, the planner <strong>and</strong> site supervisors, shall be<br />

excluded.<br />

9.8. The Contractor shall carry out the entire<br />

communication <strong>and</strong> coordination with the Employer<br />

<strong>and</strong> its appointed <strong>general</strong> planner itself, especially if<br />

it uses sub<strong>contract</strong>ors. If design sheets, drawings<br />

etc. are submitted by sub<strong>contract</strong>ors, they must be<br />

examined <strong>and</strong> approved by the Contractor be<strong>for</strong>e<br />

being <strong>for</strong>warded to the Employer or its <strong>general</strong><br />

planner. Any departures from this procedure shall be<br />

permissible only with the written approval <strong>and</strong><br />

written authorization of the sub<strong>contract</strong>or by the<br />

Contractor. This authorization shall include the<br />

provision that the full liability <strong>for</strong> the sub<strong>contract</strong>or’s<br />

work shall remain with the Contractor also in the<br />

event of direct communication or coordination<br />

between sub<strong>contract</strong>or <strong>and</strong> Employer.<br />

9.9. Each Contractor shall pay to the Employer<br />

the following fees to partially cover the Employer’s<br />

expenses:<br />

- <strong>for</strong> a collective advertisement in the local press<br />

after completion of the building project a fee in the<br />

amount of 0.1 per cent of the net final account sum;<br />

- a fee in the amount of 0.8 per cent of the net<br />

final account sum <strong>for</strong> intermediate cleaning, disposal<br />

of building rubble, residual <strong>construction</strong> waste,<br />

wastes <strong>and</strong> packing the producer of which could not<br />

be determined <strong>and</strong> <strong>for</strong> the repair of <strong>general</strong><br />

<strong>construction</strong> damage the originator of which could<br />

not be identified, without verification to be provided<br />

by the Employer; if the costs <strong>for</strong> the above<br />

measures exceed 0.8% of the total billing amount of<br />

the building project, the costs shall be divided<br />

among the Contractors which had been working at<br />

the building site at the time the damage was caused<br />

proportionately to the share of their <strong>contract</strong> value in<br />

the total billing amount of all <strong>contract</strong>ors.<br />

- A fee in the amount of 0.3% of the final account<br />

sum <strong>for</strong> a Contractor`s All Risks insurance <strong>and</strong> a fire<br />

insurance policy taken out by the Employer, without<br />

verfication to be provided. If the costs <strong>for</strong> the<br />

Contractor’s All Risks Insurance <strong>and</strong> fire insurance<br />

exceed 0.3% of the total billing amount of all<br />

companies working at the building site, the Employer<br />

will submit verification <strong>for</strong> the higher fee to be paid.<br />

The above amounts are net amounts <strong>and</strong> reduce the<br />

remuneration in the sense of sales tax law, i.e. the<br />

amounts are deducted from the net final account<br />

sum (be<strong>for</strong>e tax).<br />

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SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

- The Contractor shall further contribute to the<br />

costs of the <strong>construction</strong> sign. The Contractor’s own<br />

signs must not be affixed at the building site. If the<br />

Contractor is commissioned as <strong>general</strong> <strong>contract</strong>or<br />

the fees listed in this item are not applicable.<br />

However, the <strong>general</strong> <strong>contract</strong>or shall pay a fee <strong>for</strong> a<br />

collective advertisement in the local press after<br />

completion of the building project in the amount of<br />

0.1 per cent of the net final account some <strong>and</strong> a fee<br />

in the amount of 0.3 per cent of the net final account<br />

sum <strong>for</strong> a Contractor’s All Risks Insurance <strong>and</strong> fire<br />

insurance, without verification to be provided. The<br />

net amounts reduce the remuneration in the sense<br />

of sales tax law, i.e. the amounts are deducted from<br />

the net final account sum (be<strong>for</strong>e tax). If the actual<br />

costs should exceed the lump sum fees deducted<br />

(0.1% or, respectively, 0.3%), the higher deduction<br />

shall be verified by the Employer.<br />

9.10. Additions <strong>and</strong> amendments to the<br />

<strong>construction</strong> <strong>contract</strong> shall be approved in writing by<br />

the Employer’s authorized representatives. The same<br />

shall apply to a waiver of written <strong>for</strong>m.<br />

9.11. In case the Employer or the party<br />

inviting <strong>tender</strong>s or another third party acting on<br />

behalf of the Employer has to h<strong>and</strong> over documents<br />

to the Contractor, these documents may be h<strong>and</strong>ed<br />

over at the Employer’s choice either on paper or in<br />

digital <strong>for</strong>m via an installed internet server available<br />

to the Contractor <strong>for</strong> downloading the required<br />

documents. The Contractor shall be obligated to<br />

install a high-capacity internet access at its own<br />

expense. If the Contractor should wish to receive<br />

documents on paper despite the above possibility of<br />

data transfer via internet any costs incurred by this<br />

shall be charged to the Contractor or deducted from<br />

the Contractor’s invoices. Drawings are provided to<br />

the Contractor in digital <strong>for</strong>m only as plot plot files or<br />

in some cases as pdf files. The files are either<br />

transmitted via data carriers or by e-mail or to an<br />

internet server installed at the site. The<br />

downloading, printing <strong>and</strong> copying of all documents<br />

shall be made by the Contractor. The costs <strong>for</strong> this<br />

shall be included in the unit prices. For this purpose<br />

the Contractor shall be responsible <strong>for</strong> a suitable,<br />

high-capacity internet access <strong>and</strong> computer<br />

equipment. A fee of EUR 15.00 shall be charged <strong>for</strong><br />

each drawing transmitted on paper (hard copy),<br />

payable to the <strong>general</strong> planner or the party sending<br />

the documents.<br />

If an internet server (project plat<strong>for</strong>m) has been<br />

installed <strong>for</strong> the building project, all costs <strong>for</strong> the<br />

installation <strong>and</strong> maintenance of the internet server<br />

shall be paid by the Employer or the <strong>general</strong> planner<br />

commissioned by the Employer. The Contractor shall<br />

also receive free of charge suitable in<strong>for</strong>mation <strong>and</strong><br />

instructions on the proper use of the internet server.<br />

No additional support (e.g. trainings, hotlines etc.)<br />

shall be provided. The <strong>contract</strong>or agrees that<br />

person-related data (addresses, phone number etc.)<br />

will be stored during the use of the internet server<br />

<strong>and</strong> made available to the other participants in the<br />

project. Drawings <strong>and</strong> other materials shall be<br />

deemed to be transmitted with the moment they<br />

have been made available on the internet plat<strong>for</strong>m<br />

(upload) or sent by email. The Contractor shall be<br />

responsible <strong>for</strong> downloading drawings <strong>and</strong> other<br />

in<strong>for</strong>mation materials from the internet server or<br />

mailbox in time without prior notification (obligation<br />

to obtain). The Contractor shall be obligated to<br />

empty its mailbox regularly <strong>and</strong> in time (download).<br />

The Contractor shall not be permitted to use<br />

drawings, specs <strong>and</strong> other technical documents<br />

related to the <strong>contract</strong> <strong>for</strong> any other purpose than<br />

<strong>for</strong> the implementation of the order, unless expressly<br />

authorized to do so by the Employer in writing.<br />

9.12. The Contractor’s authorized<br />

representative responsible <strong>for</strong> matters concerning<br />

the building site shall be reachable at any time<br />

during normal working hours. The site manager<br />

appointed by the Contractor or other persons<br />

representing the Contractor at <strong>construction</strong> or<br />

project meetings shall be authorized to make legally<br />

binding decisions <strong>and</strong> receive instructions from the<br />

Employer. The Contractor shall be responsible <strong>for</strong><br />

ensuring that no administrative offences are<br />

committed in connection with the implementation of<br />

its work. In particular the Contractor shall comply<br />

with the applicable trade, labour <strong>and</strong> social<br />

legislation. The required work permits shall be<br />

submitted within two weeks after verbal placement<br />

of the order <strong>and</strong> provided <strong>for</strong> the entire <strong>contract</strong><br />

period. Non-compliance with these requirements<br />

shall entitle the Employer to withdraw from the<br />

<strong>contract</strong>. In particular the Contractor shall be<br />

obligated to fully comply with the rules <strong>and</strong><br />

regulations of the Austrian Act Governing the<br />

Employment of Foreign Nationals <strong>and</strong> to indemnify<br />

the Employers <strong>for</strong> any violations of these rules <strong>and</strong><br />

regulations.<br />

9.13. Upon the Employer’s request the<br />

Contractor shall submit a <strong>for</strong>mal declaration of<br />

approval from abutters together with the final<br />

account, or - if requested later – at the earliest. With<br />

such a declaration all neighbours, entities<br />

responsible <strong>for</strong> road maintenance or owners of<br />

pipeline wayleaves or other easements confirm that<br />

they will not file any compensation claims against<br />

the Employer <strong>and</strong>/or property owner in connection<br />

with the Contractor’s work.<br />

9.14. An inspection of the site by third parties<br />

as well as video or film recordings or photographs<br />

shall be permissible only with the Employer’s prior<br />

approval. The Contractor shall undertake to actively<br />

participate in the b2b internet plat<strong>for</strong>m offered by<br />

the Employer <strong>for</strong> the building project, in particular to<br />

facilitate <strong>and</strong> expedite correspondence.<br />

9.15. If the Contractor’s work or materials<br />

supplied are protected by industrial property rights,<br />

patents, licences etc., the Contractor shall be<br />

obligated to obtain <strong>for</strong> the employer free of charge<br />

any licences required <strong>for</strong> utilisation of the deliveries<br />

<strong>and</strong> work <strong>and</strong> submit them together with the final<br />

account or – if requested later – without delay. It<br />

shall further indemnify the Employer against any<br />

claims made by the property right owners.<br />

9.16. If the Employer defaults in payments, it<br />

shall be required to pay default interest to a<br />

maximum amount of 5 percent annually contrary to<br />

legal requirements. The Employer shall not be<br />

obligated to compensate to the Contractor any<br />

damage incurred by the default in payment, unless<br />

the Employer is guilty of gross negligence. The<br />

<strong>contract</strong>or shall not be permitted to set off pecuniary<br />

claims of the Employer against the Contractor’s own<br />

or ceded claims.<br />

9.17. This Agreement shall exclusively be<br />

governed by <strong>and</strong> construed in accordance with<br />

Austrian law, to the exclusion of Austrian<br />

international private law. All disputes arising out of<br />

this Agreement shall exclusively be referred at the<br />

customer's election either to the court having<br />

subject-matter jurisdiction in the City of Salzburg or<br />

to the court having local <strong>and</strong> subject-matter<br />

jurisdiction <strong>for</strong> the building site or the court having<br />

local <strong>and</strong> subject-matter jurisdiction <strong>for</strong> the<br />

customer's relevant branch office. Should any<br />

decision (judgment/order) of an ordinary Austrian<br />

court in the state of residence/at the corporate seat<br />

of the relevant <strong>contract</strong>ing party not be en<strong>for</strong>ceable<br />

<strong>for</strong> any reason whatsoever, any dispute arising from<br />

this Agreement or related to its violation,<br />

termination or nullity shall be finally settled under<br />

the Rules of Arbitration <strong>and</strong> Conciliation of the<br />

International Arbitral Centre of the Austrian Federal<br />

Economic Chamber in Vienna (Vienna Rules) by one<br />

arbitrator appointed in accordance with these rules.<br />

The language to be used in the arbitral proceedings<br />

shall be German. The place of arbitration shall be<br />

Salzburg. The parties agree that any communication<br />

in connection with this Agreement shall exclusively<br />

be in German. Any notice to the customer in any<br />

other language shall not have any effect.<br />

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SPAR General Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions <strong>for</strong> Building <strong>and</strong> Auxiliary Work<br />

9.18 If any of the provisions of these General<br />

Tender <strong>and</strong> Contract Terms <strong>and</strong> Conditions should be<br />

or become invalid, this does not effect the validity of<br />

the remaining provisions. The Employer shall replace<br />

the invalid provisions by valid provisions which<br />

correspond most closely to the commercial, technical<br />

<strong>and</strong> legal purpose intended with the original<br />

provisions.<br />

............................., date ....................<br />

.......................................................<br />

Contractor (Tenderer)<br />

Page 11 of 10 Version 01/2009

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