FIDIC CONDITIONS OF CONTRACT

INTRODUCTION
The Federation Internationale des Ingenierurs-
Conseils (FIDIC) is the international federation of
consulting engineers. FIDIC is best known as the
organisation that publishes standard forms of
contract documents related to the procurement of
engineering works. These standard forms include
those for use by consulting engineers and other
forms that are suitable for the procurement of
building and engineering works. FIDIC’s previous
standard forms of contract documents for
building and engineering works have been known
by the colours of their respective covers
- Conditions of Contract for Works of Civil
Engineering Construction, Fourth Edition
1987, Reprinted 1992, also known as the “Red
Book”;
- Conditions of Contract for Electrical and
Mechanical Works, Third Edition 1987,
Reprinted 1988, also known as the “Yellow
Book”;
- Conditions of Contract for Design-Build
Turnkey, First Edition 1995, also known as the
“Orange Book”.
The New Suite
Although the above standard forms are still used
internationally, FIDIC has replaced them by the following
First Editions, published in September 1999:
-Conditions of Contract for Constitutions, which FIDIC
recommends for building or engineering works where
the Employer provides most of the design. However, the
works may include some Contractor-designed civil,
mechanical, electrical and/or construction works.
- Conditions of Contract for Plant and Design-Build,
which FIDIC recommends for the provision of electrical
and/or mechanical plant, and for the design and
execution of buildings or engineering works. The scope
of these Conditions thus embraces both old Yellow and
orange Books, for all types of Contractor-designed
works.
- Conditions of Contract for EPC/Turnkey
Projects, which may be suitable for the provision
on a turnkey basis of a process or power plant, of
a factory or similar facility, or of an infrastructure
project or other type of development, where (i) a
high degree of certainty of final price and
completion time is required, and (ii) the contractor
takes total responsibility for the design and
execution of the project.
CONDITIONS OF CONTRACT FOR
CONSTRUCTION FOR BUILDING AND
ENGINEERING WORKS DESIGNED BY THE
EMPLOYER
The Fourth Edition of the FIDIC Conditions of
Contract for Works of Civil Engineering
Construction, known as the “Red Book”, has
been updated and replaced with a new standard
form. The title of the new 1999 First Edition
construction book – which is red in colour – is
“Conditions of Contract for Construction for
Building and Engineering Works Designed by the
Employer” (“New Red Book”). An abstract of the
New Red Book is presented below.
General Provisions
The general provisions defines the important
constituents of a contract such as the contract, the
parties involved in the contract, payments, contract
agreement, etc.

The Employer
Contractor’s right of access to site is not exclusive and is
subject performance security being provided.
Contractor’s claims are applicable in case of delay by
Employer.

Employer has to provide reasonable assistance to

contractor to obtain local permits/approvals and to
confirm financial arrangement for payment to
Contractor within 28 days of request for information.
Also to convey any changes in Employer’s financial
arrangement. Employer’s claims ratified by Engineer can
be deducted from payment certificates issued to the
contractor.

The Engineer
The Engineer has no authority to amend the contract.
The Engineer’s authority & limitations can be defined in
the contract. The Engineer’s approval does not relieve
the contractor from any responsibility, he has under
contract. Engineer shall consult both parties to reach
agreement on claims otherwise proceed to make a fair
determination in accordance with the contract.
Employer can replace the ‘Engineer’ by any other
person against whom contractors does not have any
reasonable objections.
The Contractor
The contractor shall design if required to the extent
specified in the contract. The contractor shall deliver the
performance security to Employer within 28 days of
receipt of the Letter of Acceptance. The Employer shall
return the Performance Security to the contractor within
21 days of Performance certificates issued on
completion of the contract.

The subcontractor can be named in the tender for other

sub-contractors proposed during execution, the
Engineer’s approval is required. Though Employer shall
be responsible for any error any notified items of
reference an experienced contractor should discover
the error in time and seek the amendment. Claims due
to above errors shall be entertained only if an
experienced contractor could not have foreseen these
errors. The Employer provided site data to be checked &
interpreted by contractor before use.

The contractor shall

- comply with applicable safety regulations.
- institute a Quality Assurance System to demonstrate
compliance.

The contractor shall not

- revoke the appointment of contractor’s representative
without prior consent of the Engineer.
- subcontract the whole of works.
Compliance with Quality assurance system shall not
relive the contractor of any of his duties or
responsibilities. The contractor to ascertain all necessary
information regarding risks & contingencies including,
nature of site & Subsurface conditions the laws,
procedures, & labour practices of the country. If the
contractor encounters adverse physical conditions,
which were unforeseeable, the contractor to give notice
to the Engineer. The contractor shall bear all costs for
special and or temporary rights of way & shall be
deemed to have been satisfied as to the suitability and
availability of access routes to the site. Contractor’s
equipment when brought to site shall be exclusively
intended for the execution of the works & shall not be
removed without the Engineer’s consent.
Progress report
Report containing charts, photographs & other
documents showing progress of the works shall be
prepared and sent monthly. The progress report shall
cover details of contractor’s personnel & equipment,
quality assurance documents, safety statistics and
comparison of actual & planned. Also measures adopted
to overcome delays are listed.

All articles of antiquity found at the site shall be placed

under the care & authority of Employer, if found by
contractor, Any delay and extension of time due to delay
on this account along with cost can be claimed.
Nominated Subcontractor
In the Contract, “Nominated Subcontractor’’ means a
subcontractor:
i. Who is stated in the contract as being a nominated
subcontractor, or
ii. Whom the Engineer, instructs the contractor to employ
subcontractor

The contractor shall not be under any obiligation to

employ a nominated subcontractor, against whom he
raises reasonable objection. The employer may pray
direct to the nominated subcontractor, if not paid by
contractor without justification, and deduct it from
Contractor’s money dues.
Staff and Labour
Contractor shall comply with all labour laws
including those relating to health, safety, welfare
and immigration. No work shall be carried out at
suite on locally recognised holidays & days
unless specially permitted. The contractor’s
personnel shall be qualified & experienced in their
trades and provides necessary super intendance
to manage the work.
Plant Materials and Workmanship
If contractor suffers delay due to delay by
Employer’s Engineer, claims can be raised. The
contractor shall comply with the remedial
instructions within a reasonable time, otherwise
Employer shall be entitled to employ & pay other
persons to carry out the work. The contractor
shall pay all royalties rents and other payments
for natural materials obtained from outside the
site.
Commencement, Delays & Supervisions
The Engineer shall give the Contractor not less than 7
days’ notice of the commencement date of work.
Contractor should start the work within 42 days from the
Letter of Acceptance.

Contractor’s planning schedule is considered approved if

not commented by client’s engineer within 21 days.
Contractor is entitled to extension of time for variation of
scope of work. For exceptionally adverse climatic
conditions, extension can be considered.

Any additional mobilisation for catching up with delayed

project execution by contractor is at the risk and cost of
the contractor. If contractor fails to comply with time for
completion he shall pay delay damages to the Employer
for completion he shall delay damages to the Employer
for this default as per rate stated in the tender.

Suspension of work by Engineer is permitted. Contractor

can claim time extension and cost for complying with the
Engineer’s instructions provided suspension is not for
reasons on the contractor’s side.

Contractor is entitled to pay the value of undelivered

plant and/or Materials if work is suspended for more
than 28 days. If work is suspended beyond 84 days, the
contractor may give 28 days notice to resume the work,
beyond which the work (whole/part) shall be treated as
omission or contractor may give notice of termination.
Test on Completion
Notice of 21 days from contractor is necessary for
conducting Tests on Completion. The test may be
conducted within 14 days thereafter even if
client’s engineer is not available. If contractor fails
to pass the tests on Completion within 21 days of
notice from Engineer to carry out the test, client is
free to proceed with tests at the risk and cost of
the contractor.
Employer’s Taking Over
Employer is required to take over the work when
completed according to the contract within14 days of
notice from contractor. The Engineer is required to issue
the Taking Over Certificates to the contractor within 28
days of above notice or reject the application giving
reasons. If Engineer fails in either to take over or to
reject, with 28 days, but the work is substantially
complete; the certificates shall be deemed to have been
issued on the last day of that period. If contractor is
prevented for more than 14 days from carrying out the
Test on Completion, the Employer shall be deemed to
have taken over, the works or section.
Defects Liability
Any work by contractor within Defects Notification
Period as pointed out by Employer, well within
contract requirement is to be carried at the risk
and cost of the contractor. The Employer can
seek extension of Defects Notification Period if a
major item of plant cannot be used for purposes
for which they are intended, but not exceeding
Two years in extension. If above remedy is not
carried out, the Employer can carry out the work
himself or by others at contractor’s cost, but the
contractor shall have no responsibility for this
work. If employ agrees, the defective material can
be removed for the site for repairs.
The contractor can be asked by the Engineer to
search for the cause of any defect. The cost plus
profit shall be paid to the contractor unless the
cause noticed is due to defective workmanship of
contractor. Contractor’s obligations are not
complete until Engineer issued Performance
certificates with 28 days of expiry date of Defects
Notification Period. Only the performance
certificates constitutes acceptance of the work.
Both parties are liable for any unperformed
obligation & contract remains in force to that
extent.
Measurement and Evaluation
Evaluation of work shall be carried out by new
rate other than agreed in the BOQ if the quantity
is increased by more than 10% and value by
more than 0.01% of accepted contract amount
provided the rate revision sought by contractor
exceed 1% of the cost per unit quantity as per
rate schedule.
Variation and Adjustment
Variation of work can be initiated by the Engineer at any
time upto Taking over stage. Contract is required to
execute each variation unless contractor writes to
Engineer about his inability to perform. Contractor may
propose improvement or changes if beneficial to
Employer due to lower value or better performance. The
reduction in cost to contract price due to above change
shall be shared between Employer to contract price due
to above change shall be shared between Employer &
the contract after adjusting for loss if any in quality, life
and operational performance. The provisional sum
available in the contract price shall be used per
Engineer’s instructions, after obtaining quotations,
invoices, vouchers and receipts in substantiation.
The contract price is adjusted for any increase or
decrease in cost resulting from a change in the
Laws of the Country made after the Base Date in
the contract. Escalation clause applies only if
provided for in the contract. Such clause may or
may not be sufficient for compensation due to rise
in costs, which have gone up compared to ‘Base
Date’ data. If contractor fails to complete works
within Time for Completion adjustment of price
will be linked to date 49 days prior to Date of
Completion or current prices whichever more
favourable to Employer under Escalation clause.
Contract Price and Payment
Any quantities as per BOQ are estimated
quantities and are not being taken as the actual &
correct quantities. The Employer shall make an
advance payment as interest free loan for
mobilisation, when contractor submits. Advance
payment guarantee, when such a provision of
advance payment is made in the Appendix to
Tender. If contract includes schedule of payment,
it shall include an amount for plant & Materials,
which have been sent to the site for incorporation
in the permanent works. If contract does not
includes schedule of payments, contractor to
submit non-binding estimate of payment
during each quarterly period starting from 42 days
after the commencement date. The Engineer may
make any corrections of necessary to any
previous payment certificates since payment
certificates shall not be deemed to indicate
Engineer’s acceptance of work. If contractor does
not receive payments within 56 days of
submission to Engineer with necessary
supporting document, he shall be entitled to
receive financing charges compounded monthly
on the amount unpaid. Financing charges for
delayed payment is 3% above central bank’s
discount rate.
Termination by Employer
Employer can terminate contract on many
grounds such as failure to carry out the contract,
subcontracting the whole of works or assign the
contract without agreement. The bribing for
undue favour can be the basis for Termination.
Even Employer can terminate the contract with 28
days notice without any reason but not for
executing the work himself or to appoint another
contractor.
Suspension & Termination by Contractor
Contractor is allowed to terminate the contract if
contractor is not provided
i. Employer’s financial arrangement
ii. Lack of interim payment when due
iii. Prolonged suspension of work by Employer
iv. Bankruptcy or insolvent Employer
v. Substantial failure of Employer to perform
his obligation under contract.
Risk & Responsibility
The contractor indemnifies and holds
harmless the Employer on following issues.
a. Injury, Disease or Death due to contractor’s
execution of work (including design if any) or
during remedy of defects in works offer
completion.
b. Damages or Losses to property arising out of
execution of work (including design if any) or
attribute to negligence, willful act or breach of
the contact by the contractor.
The Employer to indemnify and hold harmless the
contractor for similar actions carried out by
Employer’s personnel during execution or after
completion during remedial work. The contractor
takes full responsibility for the care of the works
from commencement Date till taking over by
client, after which the responsibility passes to the
Employer. In case of loss or damage during care
of the works from commencement Date will taking
over by client, after which the responsibility on
contractor continuous even after Hand over to
Employer, if some balance work is still being
carried.
Employer is required to meet the risks
out
- War, Hostilities & invasion
- Rebellion, Terrorism & civil war
- Riot, Commotion or disorder (provided it is not caused
by contractor’s personnel)
- Explosives, ionizing radiation or contamination by
radioactivity except for those caused due to use of
such material by contractor, for construction purposes.
- Pressure waves caused by aircraft caused by sonic or
supersonic speeds.
- Design of any part of works by the Employer.
- Forces of Nature, which an experienced contractor
could not have foreseen.
Contractor is expected to make good loss or
damage caused by above issue, but will be
reimbursed for the same along with time
extension for delays. The Employer shall
indemnify Contractor from any claim arising out
compliance of the contract conditions or works
being used for the Employer. Similarly Contractor
shall indemnify Employer for any claim arising out
design of supply of goods made under the scope
of the contract. The total liability of the Contractor
under above issue shall not exceed the value of
contract except for in case of fraud, misconduct &
default.
Insurance
The Terms of Insurance to be effected by any
Insuring Party shall be consistent with any terms
agreed by both parties before the date of Letter of
Acceptance. This type of agreement shall take
precedence over the provisions of this clause.
The relevant insuring party shall within the
respective periods stated in Tender Submit to
other party evidence of insurance being effected
along with details of premium. Neither party shall
change terms of insurance without approval of
other party. Also payment not made by one party
despite being due, can be made by other party
and adjusted in contract value or adjusted against
payment due. Any insurance claim, uninsured obligation,
not received fully from insurance shall be borne by the
party, which is responsible for these issue as per
contract. Payment by one party to the other party shall
be subjected to ‘Employer’s claim’ or ‘contractor’s claim’
as applicable.

Insurance for works & Contractor’s equipment shall be

affected by the contractor, as insuring party in the joint
name for the full value of cost or replacement. The
Payment shall be jointly received & allocated between
the parties for the sole purpose if rectifying the loss or
damage. Such insurance excludes losses due to defects
in design, materials and workmanship. Such insurance
cover excludes part of work taken over by the Employer.
If one year after the Base date the insurance cover is not
available at commercially reasonable terms. The
contractor shall give the notice to the Employer with
supporting particulars. The contractor shall also insure
against injury to persons & Damage to Employer’s
Property arising out of contractor is performance of the
contract other than already covered under Insurance of
Works & Contractor’s Equipment or personnel As stated
earlier, the insurance will be in joint name of both the
parties. Similar to Works & Contractor’s equipment,
contractor’s personnel shall be insured by contractor for
injury, sickness, disease or death. The insurance shall
be maintained in full force in effect through out the
execution of works. For subcontractor’s employees
subcontractor may draw insurance, but contractor shall
be responsible for the compliance by the subcontractor.
Force Majeure
Force Majeure is an exceptional event or circumstances,
which concerned party could not have provided against
& even could not have avoided having arisen in the
given circumstances. Force Majeure includes, war,
hostilities or invasion, rebellion, terrorism or civil war. It
also covers riots commotion, disorder or strike & lockout
other than those by contractor or subcontractor’s
personnel. It includes issue such as explosives,
ionishing radiation or contamination by radioactivity
except those specially utilised by contractor for
construction. It does cover natural catastrophes, such as
earthquake, hurricane, typhoon or volcanic activity.
If a party is prevented from performing any of its
obligations, a notice shall be given within 14 days of the
event constituting Force Majeure. The party shall be
excused from performance of its obligation as long as
Force Majeure persists except for obligation of the party
to make payments if due. If contractor suffers delays &
costs due to Force Majeure he shall be compensated by
necessary time extension & cost compensation. If force
Majeure clauses for subcontractor are broader/wider
than contractor’s projections under this clause, then
those issue cannot be the excuse of contractor for non-
performance or basis for relief under the clause.

If a single Force Majeure event persists for 84 days or

cumulatively for 140 days due to multiple occasions,
then either party may give notice to the other party a
notice of 7 days for termination of contract. In
such situation further process of determining the
value of work done shall commence will include.
-Value of completed item of work which price is stated in
the contract.
- Cost of plant & Material delivered or which has left
vendors for delivery.
- Any other cost/liability reasonably incurred by the
contractor for completing the works.
- Cost or removal of Temporary Works & Contractor’s
Equipment.
-Cost of repatriation of the contractor’s staff & labour
employed wholly in connection with the work.
Not withstanding above if any event outside the
control of parties arises, which makes if
impossible or unlawful for either party to fulfill its
contract obligations parties are entitled to be
released from further performance of the contract.
Money payable to the contractor by employer
shall be same as stated above.
Claim, Disputes & Arbitration
If contractor considers himself eligible for any extension
of the Time and or additional payment, a notice shall be
given within 28 days of the event. Any claims beyond
this period will not be effective and the Employer shall
be discharged of any liability on that account. Contractor
shall maintain all relevant and contemporary record to
substantiate his claims to the engineer. Without
admitting the Employer’s liability the Engineer may
inspect the record and seek necessary details to verify
such claims. Within 42 days of becoming aware of
claims, contractor shall send to the Engineer a fully
detailed claim, which includes full supporting particulars
of the basis of the claim. Further details, if any, can be
provided within the time agreed between Contractor &
Employer.
The parties shall jointly appoint a DAB by the date stated
in the Appendix to Tender, Disputes shall be
adjudicated by a Dispute Adjudication Board consisting
of one or three suitable qualified persons. In case of
three member DAB, one member each shall be
appointed by the Employer and the contractor & third
member shall be appointed by mutual consultation to act
as chairman. However, if a list of potential members is
included in the contract, the member shall be selected
from those on the list. In case of failure to appoint DAB,
due to any disagreements, the appointing entity or
official named in the particular conditions shall appoint
member/ members of DAB.

Appointment of any existing member of the DAB may be

terminated by mutual agreement of both the parties.
If a disputes arised between parties under the contract,
either party can refer the disputes to DAB for its
decisions with copies to other party. Within 84 days of
such reference or such other period as may be proposed
by the DAB & approved by both parties, DAB shall give
the reasoned decision. The decision shall be binding on
both parties who shall act on it unless it is revised in an
amicable settlement or arbitral award. If either party is
dissatisfied with decision, then within 28 days of decision
shall give notice to the other party of its dissatisfaction.
Also if DAB fails to give decision within above stipulated
period, then within 28 days of expiry of the period, notice
of dissatisfaction can be issued.

DAB’s decision is final & binding if no notice of

dissatisfaction is issued by either party. If notice of
dissatisfaction is issued in time, Parties shall attempt to
settle the dispute amicably before the commencement of
arbitration. Arbitration shall be carried out as per rules of
arbitration of the International Chamber of Commerce.
Arbitrators shall give full power to open up, review &
revise any decision by DAB or engineer. Neither party
shall be limited by the arguments previously put before
the DAB. Arbitration may commence prior to or after
completion of works. The obligation of all parties shall
not be altered by reason of any arbitration being
conducted during the progress of works. In case of
award of DAB not being implemented without giving
notice of dissatisfaction , the failure can be referred to
arbitration. In case of any dispute not getting resolved
due to absence or expiry of DAB arrangement, the
matter may be referred directly to arbitration.
In the preparation of these Conditions of Contract
for Construction, it was recognised that, while
there are many sub-clauses which must
necessarily vary to take account of the
circumstances relevant to the particular contract.
The sub-clauses which were considered to be
applicable to many (but not all) contracts have
been included in the General conditions, in order
to facilitate their incorporation each contract.
NEW PROVISIONS MADE BY THE NEW
RED BOOK FOR CONSTRUCTION
Provisions Related to the Contractor
i. The employer is required to submit, within 28 days
after receiving any request from the contractor,
‘reasonable evidence that financial arrangements
have been made and are being maintained’ which
will enable the employer to the contract price in
accordance with the contract. If the employer
intends to make any material change to his financial
arrangements, he is required to give notice to the
contractor with detailed particulars (Sub-Clause 2.4
– Employer’s Financial Arrangements).
ii. If the employer considers himself to be entitled to
any payment under or in connection with the
 contract, and/or any extension of the Defects
Notification period (the new name for the Defects
Liability Period), the employer or the engineer must
give ‘notice and particular’ to the contractor. The
particulars must specify the clause or other basis of
the claim…and…include substantiation of the amount
and/or extension to which the Employer considers
himself to be entitled. The notice must be given as
soon as practicable after the employer is expressly
denied the right to set off against or make any
deduction from a certified amount or otherwise claim
against the contractor, except in accordance with this
provision (Sub-Clause 2.5 – Employer claims).
iii. The employers in expressly entitled to extend the
Defects Notification Period for the works or a section
 of the works for up to two years if it cannot be used for
the purpose for which it was intended by reason of a
defect or damage (Sub-Clause 11.3 – Extension of
defects Notification period).
iv. The contractor right adjustment of the contract price
to take account of any increase or decrease in cost
(as defined) resulting from a change in law in the
country where the site is located has been extended
(beyond ‘changes in legislation’, as in e.g. the orange
book) to include changed in the judicial or official
government interpretation of laws made after the base
date (as defined) which effect the contract in the
performance of his obligations (sub-clause 13.7 –
adjustment for changes in Legislation.
v. If the contractor is not paid on time, the
contractor is entitled to receive financing
charges compounded monthly on the amount
unpaid during the period of delay. Unless
otherwise stated in the Particular Conditions,
these financing charges are to be calculated at
the annual rate of three percentage points
above the discount rate of the central bank in
the country of the currency of payment and
should be paid in such currency (Sub-Clause
14.8 – delayed payment). The above provision
is derived from the Orange Book. While the old
Red Book provided that the contractor was
entitled to interest on late payments, it did not
specify how this was to be calculated.
vi. The contractor is now entitled, after giving notice, to
suspend or reduce the rate of work where the
engineer fails to certify an interim payment certificates
or the employer fails to provide information about the
employees financial arrangements for paying the
contract price (see point (1) above) (Sub-Clause 16.1
– Contractors Entitlement to Suspend Work). Under
the old Red Book (Sub-Clause 69.4 – Contractors
Entitlement to Suspend Work), the contractor was only
entitled to suspend or reduce the rate or work where
the employer was not paying an amount due under
any certificate.
vii. Within 42 days after receiving a claim or any further
particulars supporting a previous claim of the
contractor, the engineer is now expressly required to
 respond with approval, or with disapproval and
detailed comments’ (Sub-Clause 20.1 –
Contractors Claims) under the old Red Book,
there was no express requirement that the
engineer respond to the merits of the
contractors claims at all, except in the case of a
dispute (Clause 67 – Settlement of Disputes).
viii. Under the General conditions of the new
Books for major works, disputes are now
required to be submitted to a DAB for decision.
In the case of the new Red and Yellow Books,
the DAB must be appointed at the time the
contract is signed and remain in place until it is
concluded (under the General Conditions of the
Silver Book, a DAB is appointed for each
Dispute and ordinarily only remains in office
until that dispute is decided) (Clause 20 –
Claims, Disputes and Arbitration). Under the old
Red and Yellow Books, disputes had to be
submitted to the engineer for a decision, as a
condition to arbitration. The provision for a DAB
to replace the engineer for the settlement of
disputes in the General conditions may be the
most favorable of the innovations in the new
books from the Contractor’s point of view.
Provisions Related to the Employer
i. The employer is now entitled, on not less than 42
days notice, to replace the engineer provided that
the employer may not do so with a person against
whom the contractor raises reasonable objection by
notice to the employer (Sub-Clause 3.4 –
Replacement of the Engineers)
ii. If the contract specifies the contractor shall design
any part of the permanent works (as defined) then
such part must, when completed, be fit for such
purposes for which the part is intended as are
specified in the Contract (Sub-Clause 4.1 (c) –
Contractors General obligation). Under the old Red
Book, there was no requirement that any works
designed by the contractor be fit for purpose.
iii. Where the contractor makes a claim for adverse
‘Physical conditions’ (as defined), the engineer may
review whether other physical conditions in similar
parts of the Works (if any) were more favorable than
could reasonably have been foreseen. If so, the
engineer may reduce the amount of any cost (as
defied) claimed by the contractor for adverse physical
conditions by the amount of the reduction in cost of
such more favorable conditions, so long as the net
effect does not result in a reduction in the contract
price (Sub-Clause 4.12 – Unforeseeable Physical
Conditions).
iv. The contractor is required to submit detailed monthly
progress reports to the engineer, including charts and
detailed descriptions of progress, photograph status
 of manufacture and, of progress on the site,
details regarding the manufacture of each main
item of plant and materials, records of the
contractors personnel and equipment as well as
other information (sub-Clause 4.21 – Progress
Reports). Such progress reports are required to
accompany the contractors applications for
interim payment certificates), implying that
payment may be conditional on the receipt of
such reports.
v. The employer has the right after notice to the
contractor, to terminate the contractor at any
time for the employers convenience provided
that the employer may not do so in order to
execute the works himself or to arrange for
them to be executed by another contractor. In
the case of such termination the contractor is
paid for work done but is deprived of the right to
profit on the balance of the contract (sub-
Clause 15.5 – Employers Entitlement to
Termination and 19.6 – optional termination,
payment and release).
The contractor is required to give notice to the
engineer of any claim for an extension of time or
additional payment not later than 28 days after
the contractor became aware, or should have
become aware, of the event or circumstances’
giving rise to a claim. If he fails to do so, the
employer is stated to be discharges from all
liability in connection with the claim. In addition,
the contractor is required to send to the engineer
a fully detailed claim within 42 days after the
contractor became aware or should have
become aware of the event or circumstances
giving rise to the claim (unless the engineer
approves a longer period).
If the contractor should fail to comply with this
latter requirement, any extension of time and/or
additional payment must be adjusted to take
account of the extent to which the failure may
have prevented or prejudiced proper investigation
of the claim (Sub-Clause 20.1 – Contractors
Claims.