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General Conditions of Contract

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

Agreement<br />

This Agreement is being made this day the ___________________________________________<br />

Between the Employer___________________________________________________________<br />

<strong>of</strong>___________________________________________________________________________<br />

And the <strong>Contract</strong>or______________________________________________________________<br />

<strong>of</strong>___________________________________________________________________________<br />

The Employer desires the execution <strong>of</strong> the Works namely the____________________________<br />

_____________________________________________________________________________<br />

at____________________________________________________________________________<br />

according to the attached <strong>Contract</strong> Documents, which include the BICC <strong>General</strong> <strong>Conditions</strong>, the<br />

Particular <strong>Conditions</strong>, the Specification, the Drawings and the priced Bills <strong>of</strong> Quantities.<br />

The <strong>Contract</strong>or has examined the <strong>Contract</strong> Documents and submitted to the Employer a priced<br />

Bill <strong>of</strong> Quantities by which he agrees to carry out the Works in conformity with the <strong>Contract</strong> for the<br />

Sum <strong>of</strong> _______________________________________________________________________<br />

_____________________________________________________________________________<br />

Or such other sum as may be ascertained under the <strong>Contract</strong>.<br />

The Employer has accepted the <strong>Contract</strong>or’s <strong>of</strong>fer and agrees that in consideration for the<br />

execution <strong>of</strong> the Works by the <strong>Contract</strong>or, the Employer shall pay the <strong>Contract</strong>or in accordance<br />

with the <strong>Contract</strong>.<br />

Signed by the Employer________________________________________________________<br />

And by the <strong>Contract</strong>or__________________________________________________________<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

<strong>General</strong> <strong>Conditions</strong> <strong>of</strong> <strong>Contract</strong><br />

1 <strong>General</strong> Provisions<br />

1.1 Definitions<br />

In this <strong>Contract</strong> the words and expressions defined below shall have the following<br />

meanings assigned to them, except where the context requires otherwise.<br />

1.1.1 “<strong>Contract</strong>” means the Agreement and other contract documents listed in the<br />

Appendix.<br />

1.1.2 “Bills <strong>of</strong> Quantities” means the priced Bill <strong>of</strong> Quantities forming part <strong>of</strong> this <strong>Contract</strong>,<br />

which sets out the items <strong>of</strong> work to be carried out, their approximate quantity and the<br />

agreed rates.<br />

1.1.3 “Specification” means the document forming part <strong>of</strong> this <strong>Contract</strong>, which sets out the<br />

Employer’s requirements in respect <strong>of</strong> the work to be carried out, and any additions and<br />

modifications to the specification in accordance with the <strong>Contract</strong>.<br />

1.1.4 “Drawings” means the <strong>Contract</strong> Drawings forming part <strong>of</strong> this <strong>Contract</strong>, any revision to<br />

such drawing and any further drawings required for the carrying out <strong>of</strong> the Works.<br />

1.1.5 “Employer” means the person named in the Agreement and his legal successors in<br />

title.<br />

1.1.6 “<strong>Contract</strong>or” means the person named in the agreement and his successors in title.<br />

1.1.7 “Party” means either the Employer or the <strong>Contract</strong>or.<br />

1.1.8 “Engineer” means the person (Perit) appointed by the Employer to act as the<br />

Engineer and named in the Appendix, or other person appointed from time to time by<br />

the Employer and notified to the <strong>Contract</strong>or.<br />

1.1.9 “Commencement Date” means that date stated in the Appendix when the Works are<br />

to start.<br />

1.1.10 “Time for Completion” means the time stated in the Appendix for completing the<br />

Works or as may be extended under this <strong>Contract</strong>.<br />

1.1.11 “Day” means a calendar day.<br />

1.1.12 “Cost” means all expenditures properly incurred or to be incurred by the <strong>Contract</strong>or in<br />

the carrying out <strong>of</strong> the Works, whether on or <strong>of</strong>f the site, including overheads and<br />

similar charges, but does not include pr<strong>of</strong>it.<br />

1.1.13 “<strong>Contract</strong>or’s Equipment” means all apparatus, machinery, vehicles, facilities and<br />

other things required for the execution <strong>of</strong> the works but does not include Materials or<br />

Plant.<br />

1.1.14 “Materials” means things <strong>of</strong> all kinds intended to form or forming part <strong>of</strong> the permanent<br />

work.<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

1.1.15 “Plant” means the machinery and apparatus intended to form part or forming part <strong>of</strong><br />

the permanent work.<br />

1.1.16 “Employer’s Liabilities” means those matters listed in Sub-Clause 5.1<br />

1.1.17 “Force Majeure” means an exceptional event or circumstance which is beyond a<br />

Party’s control, which such Party could not reasonably have foreseen and provided for<br />

before entering into the <strong>Contract</strong>, which such party could not reasonably have avoided<br />

or overcome and which is not substantially attributable to the other Party.<br />

1.1.18 “Variation” means any material change to the Specifications or drawings, any addition<br />

to the works, or any omission <strong>of</strong> any part <strong>of</strong> the works as required by the Employer<br />

under Sub-Clause 9.1<br />

1.1.19 “Works” means all the work to be carried out under this contract including any<br />

temporary work and any Variation.<br />

1.1.20 “Site” means the places provided by the Employer where the Works are to be carried<br />

out and any other place specified in the <strong>Contract</strong> as forming part <strong>of</strong> the Site.<br />

1.1.21 ”Country” means the country in which the Site is located.<br />

1.2 Interpretation<br />

Words importing persons or parties shall include firms and organizations. Words<br />

importing singular or one gender shall include plural or the other gender where the<br />

context requires.<br />

1.3 Priority <strong>of</strong> <strong>Contract</strong> Documents<br />

The documents forming the <strong>Contract</strong> are to be taken as mutually explanatory <strong>of</strong> one<br />

another. If an ambiguity or discrepancy is found in the documents, the Engineer shall<br />

issue any necessary instructions to the <strong>Contract</strong>or and the priority <strong>of</strong> the documents<br />

shall be in accordance with the order as listed in the Appendix.<br />

1.4 Law <strong>of</strong> the <strong>Contract</strong><br />

The Law <strong>of</strong> the <strong>Contract</strong> shall be Maltese Law<br />

1.5 Communications<br />

Wherever provision is made in this <strong>Contract</strong> for the giving or issuing <strong>of</strong> any notice,<br />

instruction, certificate or other communication by any person, such communication<br />

shall, unless otherwise specified, be in writing, in the language stated in the Appendix<br />

and shall be communicated within any stipulated period and shall not be unreasonably<br />

delayed or withheld.<br />

1.6 Statutory Obligations<br />

The <strong>Contract</strong>or shall comply with the laws <strong>of</strong> Malta being the place where the work is to<br />

be carried out. The <strong>Contract</strong>or shall give all notices and pay all fees and other charges<br />

required by any law or statute in respect <strong>of</strong> the carrying out <strong>of</strong> the Works.<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

2 Employer<br />

2.1 Provision <strong>of</strong> Site<br />

The Employer shall provide the Site and right <strong>of</strong> access thereto on the date stated in<br />

the Appendix.<br />

If the <strong>Contract</strong>or suffers delay and/or incurs cost as a result <strong>of</strong> a failure by the Employer<br />

to give any right or possession within such time, the <strong>Contract</strong>or shall give notice to the<br />

Engineer and shall be entitled to:<br />

(a) an extension <strong>of</strong> time for any such delay, if completion is or will be delayed, and<br />

(b) payment <strong>of</strong> any such Cost which shall be included in the final <strong>Contract</strong> Price.<br />

After receiving this notice, the Engineer shall proceed to agree or determine these<br />

matters.<br />

However, if to the extent the Employer’s failure was caused by an error or delay by the<br />

<strong>Contract</strong>or, including an error in, or delay in the submission <strong>of</strong>, any <strong>of</strong> the <strong>Contract</strong>or’s<br />

Documents, the <strong>Contract</strong>or shall not be entitled to such an extension <strong>of</strong> time or Cost.<br />

2.2 Authorised Person<br />

The Employer may appoint a person to represent him. This person shall have the<br />

authority to act for him and shall be notified to the <strong>Contract</strong>or in writing.<br />

3 Engineer<br />

3.1 Engineer’s Duties<br />

The Engineer named in the Appendix is appointed by the Employer to design and direct<br />

the Works and shall carry out the duties specified in the contract.<br />

The Engineer shall have no authority to amend the <strong>Contract</strong>.<br />

Except as otherwise stated in these <strong>Conditions</strong><br />

(a) the Engineer has no authority to relieve either party <strong>of</strong> any duties, obligations or<br />

responsibilities under the contract, and,<br />

(b) any notice, check, certificate, consent, examination, inspection, instruction,<br />

notice, proposal, request, test or similar act by the Engineer, (including absence<br />

or disapproval) shall not relieve the <strong>Contract</strong>or from any responsibility he has<br />

under the <strong>Contract</strong>, including responsibility for errors, omissions, discrepancies<br />

and non-compliances.<br />

3.2 Instructions and Further Drawings<br />

The Engineer shall issue all instructions and any further drawings as may be required<br />

for the proper execution <strong>of</strong> the works. Such instructions shall be given in writing,<br />

provided that if for any reason the Engineer considers it necessary to give an<br />

instruction orally, the <strong>Contract</strong>or shall comply with such instruction. The Engineer shall<br />

confirm such oral instruction in writing, provided that the <strong>Contract</strong>or may otherwise<br />

communicate a written record <strong>of</strong> the instruction to the Engineer, and if such record is<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

not contradicted by the Engineer within seven days, it shall be deemed to be an<br />

instruction <strong>of</strong> the Engineer.<br />

3.3 Engineer’s Representative<br />

The Engineer may appoint a suitable person to act as his representative and may<br />

delegate to his representative any <strong>of</strong> his duties under this contract. Any such<br />

appointment and delegation shall be communicated to the <strong>Contract</strong>or in writing.<br />

3.5 Engineer to act impartially<br />

Wherever the Engineer is required under this contract to exercise his discretion by<br />

giving a decision, opinion or consent, by expressing satisfaction or approval, by<br />

determining value or by otherwise taking action which may affect the rights <strong>of</strong> the<br />

Employer or the <strong>Contract</strong>or, he shall exercise his discretion impartially within the terms<br />

<strong>of</strong> the <strong>Contract</strong>, having regard to all the circumstances.<br />

4 The <strong>Contract</strong>or<br />

4.1 <strong>General</strong> Obligations<br />

The <strong>Contract</strong>or shall carry out the works properly and in accordance with the <strong>Contract</strong>.<br />

The <strong>Contract</strong>or shall provide all supervision, labour, materials, plant and contractor’s<br />

equipment, which may be required for the proper execution <strong>of</strong> the Works.<br />

4.2 <strong>Contract</strong>or’s Representative<br />

The <strong>Contract</strong>or shall nominate a person to represent him on the site, who shall be<br />

authorized to receive instructions on his behalf and shall submit the name and<br />

particulars <strong>of</strong> such person to the Employer or the Engineer.<br />

4.3 Engineer’s Instructions<br />

The <strong>Contract</strong>or shall comply with all instructions given by the Engineer in respect <strong>of</strong> the<br />

works including the suspension <strong>of</strong> all or part <strong>of</strong> the Works.<br />

4.4 Sub-contracting<br />

The <strong>Contract</strong>or shall not sub-contract the whole <strong>of</strong> the Works under this <strong>Contract</strong>. The<br />

<strong>Contract</strong>or shall neither sub-contract any part <strong>of</strong> the <strong>Contract</strong> without the consent <strong>of</strong> the<br />

Employer and <strong>of</strong> the Engineer.<br />

4.5 Design by <strong>Contract</strong>or<br />

Where any part <strong>of</strong> the Works under this contract is required to be designed by the<br />

<strong>Contract</strong>or, to specifications supplied by the Engineer, the <strong>Contract</strong>or shall, before<br />

carrying out any such work, submit detailed drawings <strong>of</strong> his design to the Engineer for<br />

approval. Such approval shall not relieve the <strong>Contract</strong>or from any <strong>of</strong> his obligations<br />

under this contract and he shall remain responsible for the adequacy <strong>of</strong> the design.<br />

Where works to be designed by the <strong>Contract</strong>or involves the design <strong>of</strong> structural<br />

elements the design shall be certified by a registered Architect and Civil Engineer<br />

(Perit) employed by the <strong>Contract</strong>or.<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

5 Employer’s Liabilities<br />

5.1 Employer’s Liabilities<br />

In this <strong>Contract</strong> any consequence arising out <strong>of</strong> the following shall be the liability <strong>of</strong> the<br />

Employer.<br />

a) war, hostilities (whether war be declared or not), invasion act <strong>of</strong> foreign enemies<br />

within the country,<br />

b) rebellion, terrorism, revolution, insurrection, military or usurped power, or civil war<br />

within the country,<br />

c) riot, commotion or disorder by persons other than the <strong>Contract</strong>or’s personnel and<br />

other employees, affecting the site and/or the Works.<br />

d) Ionizing radiations or contamination by radio-activity from any nuclear fuel, or<br />

from any nuclear waste from the combustion <strong>of</strong> nuclear fuel, radio-active toxic<br />

explosive, or other hazardous properties <strong>of</strong> any explosive nuclear assembly or<br />

nuclear component <strong>of</strong> such an assembly, except to the extent to which the<br />

contractor may be responsible for the use <strong>of</strong> radio-active material,<br />

e) Pressure waves caused by aircraft or other aerial devices traveling at sonic or<br />

supersonic speeds;<br />

f) Any operation <strong>of</strong> the forces <strong>of</strong> nature affecting the site and/or the works, which<br />

was unforeseeable or against which an experienced contractor could not<br />

reasonably have been expected to take precautions;<br />

g) Exceptionally adverse climatic conditions;<br />

h) Force Majeure;<br />

i) Use or occupation by the Employer <strong>of</strong> any part <strong>of</strong> the Works, except as may be<br />

specified in the <strong>Contract</strong>;<br />

j) Design <strong>of</strong> any part <strong>of</strong> the Works by the Employer, his personnel, the Engineer<br />

nominated by the Employer, except where design <strong>of</strong> any part <strong>of</strong> the Works is<br />

required to be carried out by the <strong>Contract</strong>or;<br />

k) Any action <strong>of</strong>, or attributable to, the Employer, the Employer’s personnel, or the<br />

Employer’s other contractors on the Site;<br />

l) Any failure <strong>of</strong> the Employer;<br />

m) A suspension under Sub-clause 4.3 unless it is attributable to the <strong>Contract</strong>or’s<br />

failure;<br />

n) Physical obstructions or physical conditions other than climatic conditions<br />

encountered on the site during the performance <strong>of</strong> the Works, which obstructions<br />

or conditions were not reasonably foreseeable by an experienced contractor and<br />

which the <strong>Contract</strong>or immediately notified to the Employer;<br />

o) Unforeseeable shortages in availability, or increase in cost, <strong>of</strong> personnel or<br />

goods caused by epidemic or governmental actions, except for normal cost <strong>of</strong><br />

living increases;<br />

p) Any change to the law <strong>of</strong> the <strong>Contract</strong> after the date <strong>of</strong> the agreement;<br />

q) Losses arising out <strong>of</strong> the Employer’s right to have the permanent work executed<br />

on, over or under in or through any land, and to occupy this land for the<br />

permanent work, and<br />

r) Damage, which is an unavoidable result <strong>of</strong> the <strong>Contract</strong>or’s obligations to<br />

execute the Works and to remedy any defects.<br />

s) A Variation or substantial change in the quantity <strong>of</strong> an item <strong>of</strong> work included in<br />

the <strong>Contract</strong>.<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

6 Time for Completion<br />

6.1 Execution <strong>of</strong> the Works<br />

The <strong>Contract</strong>or shall commence the Works on the Commencement Date and shall<br />

proceed expeditiously and without delay and shall complete the Works within the Time<br />

for Completion.<br />

6.2 Programme <strong>of</strong> Works<br />

Within the time stipulated in the Appendix, the <strong>Contract</strong>or shall submit to the Engineer a<br />

programme for the Works.<br />

6.3 Extension <strong>of</strong> Time for Completion<br />

Subject to Sub-clause 9.4, the <strong>Contract</strong>or shall be entitled to an extension to the Time<br />

for Completion if he is or will be delayed by any <strong>of</strong> the Employer’s liabilities listed in<br />

Sub-clause 5.1 or any other cause <strong>of</strong> delay giving an entitlement to extension <strong>of</strong> time<br />

under any other Sub-clause <strong>of</strong> these <strong>Conditions</strong>.<br />

On receipt <strong>of</strong> an application from the <strong>Contract</strong>or, the Engineer shall consider all<br />

supporting details provided by the <strong>Contract</strong>or and shall extend the Time for Completion<br />

as he considers appropriate. When determining each extension <strong>of</strong> time under the<br />

<strong>Contract</strong>, the Engineer may review previous determinations and may increase, but not<br />

decrease, the total extension <strong>of</strong> time.<br />

6.4 Late Completion<br />

If the <strong>Contract</strong>or fails to complete the Works within the Time for Completion, the<br />

<strong>Contract</strong>or’s only liability to the Employer for such failure shall be to pay the amount<br />

stated in the Appendix for each day, which he fails to complete the Works.<br />

7 Taking Over<br />

7.1 Completion<br />

The <strong>Contract</strong>or may notify the Engineer when he considers that the Works are<br />

complete.<br />

7.2 Completion Certificate<br />

When the Engineer considers that the <strong>Contract</strong>or has completed the Works, he shall<br />

issue a certificate <strong>of</strong> completion to the Employer and to the <strong>Contract</strong>or, stating the date<br />

<strong>of</strong> completion. Alternatively the Engineer may consider that the Works, although not<br />

fully complete, are ready for taking over and issue a certificate <strong>of</strong> Practical Completion<br />

to that effect, stating the date accordingly. The Employer shall take over the Works<br />

upon the issue <strong>of</strong> this certificate. The <strong>Contract</strong>or shall promptly complete any<br />

outstanding work and, subject to Clause 8, clear the site.<br />

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BICC Form <strong>of</strong> <strong>Contract</strong> for Civil Works<br />

8 Defects<br />

8.1 Remedying Defects<br />

The Engineer may at any time prior to the expiry <strong>of</strong> the Defects Liability Period stated in<br />

the Appendix, notify the <strong>Contract</strong>or <strong>of</strong> any defects or outstanding work. The <strong>Contract</strong>or<br />

shall remedy, at no cost to the Employer, any defects due to the contractor’s<br />

workmanship, materials, plant or design, if any, not being in accordance with the<br />

<strong>Contract</strong>. Failure to remedy any defects or complete outstanding work within a<br />

reasonable time <strong>of</strong> the Engineer’s notice, shall entitle the Employer to carry out all<br />

necessary work at the cost <strong>of</strong> the contractor. The cost <strong>of</strong> remedying defects attributable<br />

to any cause, which is not the liability <strong>of</strong> the <strong>Contract</strong>or, shall be valued as a Variation.<br />

8.2 Uncovering and Testing<br />

The Engineer may give instruction as to the uncovering and/or testing <strong>of</strong> any work.<br />

Unless as a result <strong>of</strong> any uncovering and/or testing it is established that the<br />

<strong>Contract</strong>or’s workmanship, materials, plant or design, if any, are not in accordance with<br />

the contract, the <strong>Contract</strong>or shall be paid for such uncovering and/or testing as a<br />

Variation.<br />

8.3 <strong>Contract</strong>or’s Liability<br />

The provisions <strong>of</strong> this <strong>Contract</strong> do not relieve the <strong>Contract</strong>or <strong>of</strong> any <strong>of</strong> his liabilities and<br />

responsibilities under any law or statute.<br />

9 Variations and Claims<br />

9.1 Right to Variation<br />

The Employer has the right to require variations to be made to the Works described in<br />

the <strong>Contract</strong> Documents. The Engineer may also make any variation he considers<br />

necessary for the proper execution <strong>of</strong> the Works. Such variations may include any<br />

increase or decrease in quantity, any modification to or omission <strong>of</strong> any part <strong>of</strong> the<br />

Works, or any additional work, except that no part <strong>of</strong> the Works may be omitted, to be<br />

carried out by the Employer or any other <strong>Contract</strong>or.<br />

9.2 Instructions as to Variations<br />

The Engineer shall issue a written instruction to the <strong>Contract</strong>or whenever a variation is<br />

required to be made under this <strong>Contract</strong>.<br />

9.3 Valuation <strong>of</strong> Variations<br />

Variations shall be valued by one <strong>of</strong> the following methods:<br />

a) As a lump sum price agreed to by the Parties;<br />

b) Where appropriate, according to the rates in the <strong>Contract</strong>;<br />

c) In the absence <strong>of</strong> appropriate rates, the rates in the <strong>Contract</strong> may be used as a<br />

basis for valuation where possible;<br />

d) Where this is not possible according to new rates agreed to by the Parties or<br />

which the Engineer considers appropriate;<br />

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e) Where the Engineer so instructs, by daywork rates set out in the <strong>Contract</strong> for<br />

which the <strong>Contract</strong>or shall keep adequate records <strong>of</strong> hours <strong>of</strong> labour,<br />

contractor’s equipment and materials used.<br />

9.4 Early Warning for Claim<br />

A Party shall notify the other as soon as he is aware <strong>of</strong> any circumstance which may<br />

delay or disrupt the Works, or which may give rise to a claim for additional payment.<br />

The <strong>Contract</strong>or shall take all reasonable steps to minimise these effects. The<br />

<strong>Contract</strong>or’s entitlement to extension to the Time for Completion or additional payment<br />

shall be limited to the time and payment which would have been due if he had given<br />

prompt notice and had taken all reasonable steps.<br />

9.5 Right to Claim<br />

If the <strong>Contract</strong>or incurs Cost as a result <strong>of</strong> any <strong>of</strong> the Employer’s Liabilities listed in<br />

Sub-clause 5.1, or any other cause giving an entitlement to additional payment under<br />

any other Sub-clause <strong>of</strong> these <strong>Conditions</strong>, the contractor shall be entitled to the amount<br />

<strong>of</strong> such Cost. If as a result <strong>of</strong> any <strong>of</strong> the Employer’s Liabilities, it is necessary to modify<br />

the Works, this shall be dealt with as a Variation.<br />

9.6 Variation and Claim Procedure<br />

The <strong>Contract</strong>or shall submit to the Engineer an itemised make-up <strong>of</strong> the value <strong>of</strong><br />

Variations and claims within twenty eight days <strong>of</strong> the instruction <strong>of</strong> the variation or <strong>of</strong><br />

the completion <strong>of</strong> any work required by the Variation or <strong>of</strong> the event giving rise to the<br />

claim as appropriate. The Engineer shall check and approve or otherwise determine<br />

the value <strong>of</strong> the Variation or claim.<br />

10 <strong>Contract</strong> Price and Payment<br />

10.1 Valuation <strong>of</strong> the Works<br />

The Works shall be re-measured after completion and valued according to the rates<br />

agreed to in the Bills <strong>of</strong> Quantities forming part <strong>of</strong> the <strong>Contract</strong> Documents.<br />

10.2 Interim Certificate for Payment<br />

The <strong>Contract</strong>or shall be entitled to interim payments at monthly intervals. The Engineer<br />

shall within seven days <strong>of</strong> the end <strong>of</strong> each monthly interval, certify the amount <strong>of</strong> interim<br />

payment due to the <strong>Contract</strong>or. The amount to be included in an interim certificate shall<br />

be:<br />

a) The total value <strong>of</strong> Work properly executed by the <strong>Contract</strong>or including the value<br />

<strong>of</strong> any Variation;<br />

b) The percentage stated in the Appendix <strong>of</strong> the value <strong>of</strong> Materials and Plant<br />

delivered to the Site at a reasonable time;<br />

Less any sums previously certified for payment, subject to the percentage retention<br />

stated in the Appendix and to any additions or deductions which may be due under this<br />

<strong>Contract</strong>.<br />

The <strong>Contract</strong>or shall submit each month to the Engineer a statement indicating the<br />

quantity and value <strong>of</strong> work carried out, the quantity <strong>of</strong> any materials and plant and the<br />

amount to which he considers himself entitled to assist the Engineer in his valuation.<br />

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10.3 Interim Payments<br />

Within fourteen days <strong>of</strong> the issue <strong>of</strong> each Interim Certificate for Payment by the<br />

Engineer, the Employer shall pay to the <strong>Contract</strong>or the amount stated in the certificate.<br />

10.4 Release <strong>of</strong> Retention<br />

One half <strong>of</strong> the percentage retention stated in the appendix withheld by the Employer<br />

shall be paid by the Employer to the <strong>Contract</strong>or within fourteen days <strong>of</strong> the issue by the<br />

Engineer <strong>of</strong> a certificate <strong>of</strong> Practical Completion under Sub-clause 7.2. The remainder<br />

<strong>of</strong> the retention shall be paid by the Employer to the <strong>Contract</strong>or within fourteen days <strong>of</strong><br />

either the Defects Liability Period stated in the Appendix, or the remedying <strong>of</strong> notified<br />

defects or the completion <strong>of</strong> outstanding work as stated in Sub-clause 8.1, whichever is<br />

the later.<br />

10.5 Final Certificate for Payment<br />

Within forty two days <strong>of</strong> the latest <strong>of</strong> the events listed in Sub-clause 10.4, the Engineer<br />

shall certify the amount <strong>of</strong> final payment due to the <strong>Contract</strong>or. The amount to be<br />

included in the Final Certificate for Payment shall be:<br />

a) The total value <strong>of</strong> Work properly executed by the <strong>Contract</strong>or including the value <strong>of</strong><br />

any Variation;<br />

b) any additions or deductions which may be due under this <strong>Contract</strong>;<br />

Less any sums previously certified for payment, subject to half the percentage retention<br />

stated in the Appendix.<br />

The <strong>Contract</strong>or shall submit to the Engineer a statement indicating the quantity and<br />

value <strong>of</strong> work carried out and the amount to which he considers himself entitled to<br />

assist the Engineer in his valuation.<br />

10.6 Final Payment<br />

Within twenty eight days <strong>of</strong> the issue <strong>of</strong> the Final Certificate for Payment by the<br />

Engineer, the Employer shall pay to the <strong>Contract</strong>or any amount stated in the Certificate.<br />

10.7 Currency<br />

Payment shall be made in Malta Liri.<br />

10.8 Delayed Payment<br />

The <strong>Contract</strong>or shall be entitled to interest at the rate stated in the Appendix for each<br />

day the Employer fails to pay beyond the prescribed payment period.<br />

11 Default<br />

11.1 Default by <strong>Contract</strong>or<br />

If the <strong>Contract</strong>or abandons the Works, refuses or fails to comply with a valid instruction<br />

<strong>of</strong> the Engineer or fails to proceed expeditiously and without delay, or is, despite written<br />

complaint, in breach <strong>of</strong> the <strong>Contract</strong>, the Employer or the Engineer, may give notice to<br />

the <strong>Contract</strong>or <strong>of</strong> the default, referring to this Sub-Clause.<br />

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If the <strong>Contract</strong>or has not taken all practicable steps to remedy the default within<br />

fourteen days after the <strong>Contract</strong>or’s receipt <strong>of</strong> such notice, the Employer may by a<br />

second notice given within a further twenty one days terminate the <strong>Contract</strong>. The<br />

<strong>Contract</strong>or shall then demobilise from the Site leaving behind all Materials and Plant.<br />

11.2 Default by Employer<br />

If the Employer fails to pay in accordance with the <strong>Contract</strong>, or is, despite a written<br />

complaint, in breach <strong>of</strong> the <strong>Contract</strong>, the <strong>Contract</strong>or may give notice <strong>of</strong> the default<br />

referring to this Sub-Clause. If the default is not remedied within seven days after the<br />

Employer’s receipt <strong>of</strong> this notice, the <strong>Contract</strong>or may suspend the execution <strong>of</strong> all or<br />

part <strong>of</strong> the Works.<br />

If the default is not remedied within twenty eight days after the Employer’s receipt <strong>of</strong> the<br />

<strong>Contract</strong>or’s notice, the <strong>Contract</strong>or may by a second notice given within a further twenty<br />

one days, terminate the <strong>Contract</strong>. The <strong>Contract</strong>or shall then demobilise from the Site.<br />

11.3 Insolvency<br />

If a party is declared insolvent under any applicable law, the other Party may by notice<br />

terminate the <strong>Contract</strong> immediately. The <strong>Contract</strong>or shall then demobilise from the site<br />

leaving behind, in the case <strong>of</strong> the <strong>Contract</strong>or’s insolvency all materials and Plant.<br />

11.4 Payment upon Termination<br />

After termination, the <strong>Contract</strong>or shall be entitled to payment <strong>of</strong> the unpaid balance <strong>of</strong><br />

the value <strong>of</strong> the Works executed and <strong>of</strong> the Materials and Plant reasonably delivered to<br />

the Site, adjusted by the following:<br />

a) any sums to which the <strong>Contract</strong>or is entitled to under Sub-Clause 9.5;<br />

b) any sums to which the Employer is entitled;<br />

c) if the Employer has terminated under Sub-Clause 11.1 or 11.3, the Employer<br />

shall be entitled to a sum equal to any additional cost which the Employer may<br />

incur by employing another contractor to complete the Works not executed at the<br />

date <strong>of</strong> the termination as well as the amount stated in the Appendix for each day<br />

that completion <strong>of</strong> the Works are delayed beyond the Time for Completion,<br />

d) if the <strong>Contract</strong>or has terminated under Sub-Clause 11.2 or 11.3, the <strong>Contract</strong>or<br />

shall be entitled to the Cost <strong>of</strong> his suspension and demobilisation as well as any<br />

other cost which the <strong>Contract</strong>or may incur as a direct result <strong>of</strong> the termination.<br />

The net balance due shall be paid or repaid within twenty eight days <strong>of</strong> the notice <strong>of</strong><br />

termination.<br />

12 Risks and Responsibility<br />

12.1 <strong>Contract</strong>or’s Care <strong>of</strong> the Works<br />

The <strong>Contract</strong>or shall take full responsibility for the care <strong>of</strong> the Works from the<br />

Commencement Date until the date <strong>of</strong> the issue <strong>of</strong> the Completion Certificate by the<br />

Engineer and the Employer’s taking over <strong>of</strong> the Works under Sub-Clause 7.2.<br />

Responsibility shall then pass to the Employer. If any loss or damage happens to the<br />

Works during the above period the <strong>Contract</strong>or shall rectify such loss or damage so that<br />

the Works conform with the contract.<br />

Unless the loss or damage happens as a result <strong>of</strong> one <strong>of</strong> the Employer’s Liabilities, the<br />

<strong>Contract</strong>or shall indemnify the Employer against any loss or damage happening to the<br />

Works and against all claims or expense arising out <strong>of</strong> the Works caused by breach <strong>of</strong><br />

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the contract, by negligence or by other default <strong>of</strong> the contractor, his agents or<br />

employees.<br />

12.2 Force Majeure<br />

If a Party is or will be prevented from performing any <strong>of</strong> its obligations by Force<br />

Majeure, the Party affected shall notify the other Party immediately. If necessary, the<br />

<strong>Contract</strong>or shall suspend the execution <strong>of</strong> the Works and, to the extent agreed with the<br />

Employer, demobilise the <strong>Contract</strong>or’s equipment.<br />

If the event continues for a period <strong>of</strong> eighty four days, either Party may then give notice<br />

<strong>of</strong> termination which shall take effect twenty eight days after the giving <strong>of</strong> the notice.<br />

After termination, the <strong>Contract</strong>or shall be entitled to payment <strong>of</strong> the unpaid balance <strong>of</strong><br />

the Works executed and <strong>of</strong> the Materials and Plant reasonably delivered to the Site,<br />

adjusted by the following:<br />

a) any sums to which the <strong>Contract</strong>or is entitled to under Sub-Clause 9.5;<br />

b) the Cost <strong>of</strong> his suspension and demobilisation;<br />

c) any sums to which the Employer is entitled under this <strong>Contract</strong>.<br />

The net balance due shall be repaid within twenty eight days <strong>of</strong> the notice <strong>of</strong><br />

termination.<br />

13 Insurances<br />

13.1 Extent <strong>of</strong> Cover<br />

The <strong>Contract</strong>or shall, prior to commencing the Works, effect and thereafter maintain<br />

insurances in the joint names <strong>of</strong> the Parties:<br />

a) for loss and damage to the Works, Materials, Plant and the <strong>Contract</strong>or’s<br />

Equipment;<br />

b) for the liability <strong>of</strong> both Parties for loss, damage, death or injury to third parties or<br />

their property arising out <strong>of</strong> the <strong>Contract</strong>or’s performance <strong>of</strong> the <strong>Contract</strong>,<br />

including the <strong>Contract</strong>or’s liability for damage to the Employer’s property other<br />

than the Works; and<br />

c) for the liability <strong>of</strong> both Parties for death or injury to the <strong>Contract</strong>or’s personnel.<br />

13.2 Insurance Policies<br />

All insurances shall conform to the requirements <strong>of</strong> the <strong>Contract</strong> as detailed in the<br />

Appendix. The policies shall be issued by insurers and in terms approved by the<br />

Employer. The <strong>Contract</strong>or shall provide the Employer with evidence that any required<br />

policy is in force and that the premiums have been paid.<br />

All payments received from insurers relating to loss or damage to the Works shall be<br />

held jointly by the Parties and used for the repair <strong>of</strong> the loss or damage or as<br />

compensation for loss or damage that is not to be repaired.<br />

13.3 Failure to Insure<br />

If the <strong>Contract</strong>or fails to effect or keep in force <strong>of</strong> any <strong>of</strong> the insurances referred to in<br />

the previous Sub-Clauses, or fails to provide satisfactory evidence, policies or receipts,<br />

the Employer may, without prejudice to any other right or remedy, effect insurance for<br />

the cover relevant to such default and pay the premiums due and recover the same as<br />

a deduction from any other monies due to the <strong>Contract</strong>or.<br />

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14 Resolution <strong>of</strong> Disputes<br />

14.1 Referral to Engineer<br />

When a dispute arises between the Employer or the <strong>Contract</strong>or on any matter arising or<br />

out <strong>of</strong>, under, or in connection with this <strong>Contract</strong>, either during the progress or after<br />

completion <strong>of</strong> the Works or other termination <strong>of</strong> the <strong>Contract</strong>, the matter shall in the first<br />

place be referred to the Engineer by either party with a copy to the other party. The<br />

Engineer shall consult with each Party in an endeavour to reach agreement. If<br />

agreement is not achieved, the Engineer shall make a fair determination in accordance<br />

with the <strong>Contract</strong>, giving due regard to all relevant circumstances. The Engineer shall<br />

give written notice <strong>of</strong> his decision to both parties within twenty one days <strong>of</strong> his receiving<br />

the reference.<br />

14.2 Arbitration<br />

Should either the Employer or the <strong>Contract</strong>or be dissatisfied with the decision <strong>of</strong> the<br />

Engineer, or if the Engineer fails to give his decision within the stipulated time, then<br />

either the employer or the <strong>Contract</strong>or may, within thirty days after the receipt <strong>of</strong> the<br />

Engineer’s decision or after the expiration <strong>of</strong> the time limit for the issue <strong>of</strong> the<br />

Engineer’s decision, inform the other party in writing <strong>of</strong> his intention to refer the matter<br />

to Arbitration and submit a notice <strong>of</strong> arbitration to the Malta Arbitration Centre. The<br />

arbitration shall be carried out in Malta, under the rules <strong>of</strong> the Malta Arbitration Centre<br />

according to the Malta Arbitration Act, as a domestic arbitration in the language <strong>of</strong> this<br />

<strong>Contract</strong> as stated in the Appendix.<br />

14.2 Appointment <strong>of</strong> Arbitrator<br />

The dispute shall be referred to a single arbitrator, appointed by the agreement <strong>of</strong> both<br />

parties. Should the parties fail to agree on the selection <strong>of</strong> an arbitrator within time<br />

limits set out in the Malta Arbitration Act, then an arbitrator shall be appointed by the<br />

Chairman <strong>of</strong> the Malta Arbitration Centre at the request <strong>of</strong> either the Employer or the<br />

<strong>Contract</strong>or.<br />

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Particular <strong>Conditions</strong><br />

_______________________________________________________<br />

1 Value Added Tax<br />

All rates and prices quoted in the priced bills <strong>of</strong> Quantities forming part <strong>of</strong> this <strong>Contract</strong><br />

are to be net <strong>of</strong> Value Added Tax which shall be added to the total <strong>of</strong> each certificate<br />

wherever it is due according to the law prevailing at the time.<br />

2 Measurement and Certification<br />

The <strong>Contract</strong>or shall pay to the Engineer 1% <strong>of</strong> the value <strong>of</strong> each certificate <strong>of</strong><br />

payment, payable upon issue <strong>of</strong> each certificate, being his share <strong>of</strong> fees due to the<br />

Engineer for certification and re-measurement.<br />

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APPENDIX<br />

_______________________________________________________<br />

1.1.1 <strong>Contract</strong> Documents in order <strong>of</strong> Priority The Agreement<br />

Particular <strong>Conditions</strong><br />

<strong>General</strong> <strong>Conditions</strong> <strong>of</strong> <strong>Contract</strong><br />

The Specifications<br />

The Drawings<br />

The Bills <strong>of</strong> Quantities<br />

1.1.8 The Engineer appointed by the Employer is________________________________<br />

<strong>of</strong> ________________________________<br />

________________________________<br />

1.1.9 Commencement Date ____________________<br />

1.1.10 Time for Completion ____________________<br />

1.5 The Language <strong>of</strong> the <strong>Contract</strong> English<br />

2.1 Date for provision <strong>of</strong> Site ____________________<br />

6.2 Period for Submission <strong>of</strong> Programme <strong>of</strong> Works ____________________<br />

6.4 Amount payable for late completion ____________________<br />

8.1 Defects Liability Period ____________________<br />

10.2 Percentage <strong>of</strong> Materials on Site __________________%<br />

10.2 Percentage <strong>of</strong> Plant on Site __________________%<br />

10.2 Percentage Retention __________________%<br />

10.8 Rate <strong>of</strong> interest __________________%<br />

13.2 Insurances: Type <strong>of</strong> Cover Amount <strong>of</strong> Cover<br />

Works, Materials, Plant & fees<br />

The <strong>Contract</strong> Sum stated<br />

in the agreement + 15%<br />

Third Party injury to persons and property ___________________<br />

<strong>Contract</strong>or’s workers and Employees<br />

___________________<br />

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