10.

1 Act as stated in this contract

10.2 Mutual trust & co-operation

30 Programme 21 Contractor's Design

31.1 Timescale of programme
31.2 Items in the programme

CE is difficult to assess without

Aceepted Programme
Defined Terms in Cl. 11

Ø Accepted Programme, Cl. 11.2(1)

31 The programme
32 Revised programme
50.5 Hold 25% payment for no 1st programme (accumulative)

Ø Completion, Cl. 11.2(2)

30.1 Starting date and completion date
X7.1 Delayed damages

Ø Defect, Cl. 11.2(6)

41 Tests and inspections
42 Testing and inspection before delivery
43 Searching for and notifying Defects
44 Correcting Defects
45 Accepting Defects
46.1 Uncorrected Defects with access to C
46.2 Uncorrected Defects without access to C

Ø Early Warning Register, Cl. 11.2(8)

CD Contract Data
15.2 Timescale of 1st Early Warning Register (within 1 week of starting date) and 1st early warning meetin
15.3 What to do in the early warning meeting
15.4 Timescale for issuing the revised Early Warning Register (within 1 week of the early warning meeting

Ø Key Date, Cl. 11.2(11)

30.3 Meeting Key Dates
14.3 PM's instruction to change Scope or Key Date
25.3 Recovery of additional cost for carrying out the work by the Key Date

Ø Others, Cl. 11.2(12)

25.1 C co-operate with Others
60.1(5) Client or Others not work on time, within the conditions stated in the Scope

Ø Scope, Cl. 11.2(16)

14.3 PM's instruction to change Scope or Key Date
20.1 C provides works according to the Scope
60.1(1) Exceptions of CE for changing the Scope by PM, e.g. accept Defects,a change to Scope at the requests
Ø Site Information, Cl. 11.2(18)
60.1(12) CE for encountering physical conditions (difference between physical conditions and that are reasonab
60.2 Judging the physical conditions in CE
60.3 ambiguity or inconsistency within the Site Information, more favourable physical conditions shall be a

Ø Working Areas, Cl. 11.2(20)

16.3 Proposed addition of area to the Working Areas (reason for refusal)
SCC Schedule of Cost Component
SSCC Short Schedule of Cost Component
nd 1st early warning meeting (within 2 weeks of starting date)

f the early warning meeting)

nge to Scope at the requests from C, to comply with the Scope provided by the Client
ditions and that are reasonably allowed are assessed in CE)

hysical conditions shall be assumed

List of Notifications with separate commmunication (13.7)

14.2 Delegation of PM/S's action

14.4 Replacement of the Project Manager or Supervisor
15.1, X10.3, X29 Early warning
17.1 Ambiguities and inconsistencies
17.2 Illegal or impossible requirements
28.1 Assignment
31.3 Programmes and failure to respond to notification
36.1 Acceleration
42.1 Tests and inspections
43.2 Defects
50.9 Finalising Defined Cost (Options C to F)
61.1, 61.3, 61.4 Compensation events
61.6 Assumptions on compensation events
62.6 Quotations for compensation events
64.3 Assessment of compensation events
64.4 Late assessment of compensation events
65.2, 65.3 Proposed instructions
66.1 Implementation of compensation events
90.1 Reasons for termination
W1.1, W2.1 Referring disputes to, or changing Senior Representatives
W3.2 Referring disputes to the Dispute Avoidance Board
W1.4, W2.4, W3.3 Referring dispute to tribunal
X10.4 Information Execution Plan
X11.1 Client termination
X22.2 Forecast of Defined Cost
X22.6 Changes to the Budget
X29.4 Climate Change Plan
Y1.9 C hange of amount due to a Named Supplier
Y2.3 P aying less than notified sum
Y3.3 B eneficiaries
Contractor's Design

Contractor submits a design

ò
31.3 PM vets the design
Ø Response within the period for reply
ò
Acceptance of C's design 21.2 (i) Accept the design
21.1 C submit design for PM acceptance 21.2 (ii) Reasons for rejecting the design
21.2 Reason for not accepting C's design
C does not proceed until accepted by PM

Contractor's Proposal
16.1 Contractor may submi its proposal for changing Client's scope for reducing the cost
ò
16.2 PM vets the proposal, consult the Clients and C
Response within 4 weeks
ò
16.2 (i) Accept the proposal and issue instruction for changing the Scope
(ii) Inform C that Client is considering the proposal, instructs C to submit quotation 65
(iii) Inform C that the proposal is not accepted (may give reasons for not accepting the proposal)
ò
A63.12
B63.12
Assessment of CE for the acceptance of C's proposal
C63.13
D63.13

Option A and B
63.12 Prices are reduced by an amount of calculated by multiplying the assessed effect of the CE (price reduction) by th
Option C and D
63.13 Prices are not reduced, C share the pain/gain benefit
bmits a design

the design PM may extend the period for reply

Ø 13.5
(mutually agreed)
he period for reply

the design Ø PM/S does not reply within the period required
60.1(6)
ejecting the design a CE

until accepted by PM

e proposal)

he CE (price reduction) by the value engineering percentage

Inconsistent Scope

(1) Inconsistency between the Scope provided by the C for its design and the Scope provided by the Client
21.2 C submits its design for PM acceptance as Scope requires
ò Solution
17.1 PM/C notifies each other when aware of inconsistency/ambiguity
13.7 Separate communication for each notification
15.1 Gives an early warning
ò
14.3 PM may give an instruction to change Scope or a Key Date
ò
60.1(1) Not a CE

(2) Inconsistency/ambiguity between the Scope provided by the Client Client compensate

17.1 PM/C notifies each other when aware of inconsistency/ambiguity

13.7 Separate communication for each notification
15.1 Gives an early warning
ò
14.3 PM may give an instruction to change Scope or a Key Date
ò
60.1(1) PM gives instruction changing the Scope
ò
61.1 Notification of CE Notification of CE
ò
63.10 Interpretation most favourable to the Parties who did not provie the Scope Assessment of CE

Ambiguity/inconsistency within the Site Information

60.3 C is assumed to take into account the physical conditions more favourable to doing the work

If no early warning is given by C

61.5 C fails to give an early warning which an experienced C could, PM stated in the struction to C to submit quotatio
63.7 the CE is assessed as if C had given the early warning
 C may propose the Scope provided by the Client to be changed for
16.1
- reducing the amount the Client pays to C for Providing the Works

27.3 C obeys PM/S's instructinon in accordance with the contract

Notification of CE

Assessment of CE

tion to C to submit quotation

Programme

Contractor submits a programme

ò
First programme 31.2 Items in the programme
31.1 Timescale of submission ò
Retention of 25% payment if no 1st 31.3 PM vets the programme
50.5
programme (accumulative) Ø Response within 2 weeks
ò
31.3 (i) Accept programme
31.3 (ii) Reasons for rejecting programme

31.2 Items to be shown in programme

Obligations Programme CE 32.2
21.2 submit design 31.2, bullet 13 60.1(6)
23.1 submit details of Equipment design 31.2, bullet 13 60.1(6) 13.4
25.1 co‐operate with Others 31.2, bullet 4 60.1(5)
25.2 compliance with the Scope 31.2, bullet 17 60.1(3)
33.1 access 31.2, bullet 1 60.1(2)
41.1 tests and inspections 31.2, bullet 17 60.1(11)

Delay to the Completion Date

63.5 A delay to the Completion Date is assessed as the length of time that, due to the compensation event,
planned Completion is later than planned Completion as shown on the Accepted Programme current at the dividi

Delay to the Key Date

A delay to a Key Date is assessed as the length of time that, due to the compensation event,
the planned date when the Condition stated for a Key Date will be met is later than the date
shown on the Accepted Programme current at the dividing date.

Planned Completion reflects Actual progress

Dividing date
63.1 Ø CE arising from PM/S's instruction/notification, issuing a certificate or changing an earlier decision, it
Ø Other Ces, it refers to the date of the notification of CE

32.2 Conditions for revising the programme

Complete CE assessment one by one

Parties who get the float first own the float
Terminal float belongs to C
Include time risk allowance in the programme

Time risk allowance

1. Physical Conditions
C shall reasonably allow the defined risk of encountering physical conditions in his programme
60.1(12) Encountering physical conditions above defined risk is CE
60.2 Information stating the physical conditions shall be catered for

2. Weather
60.1(12) Only the difference with the weather measurement stated in CDP1 is CE

Assessment of CE
63.1 Decide the dividing date
ò
Use the Accepted Programme current
63.5
at the dividing date
ò
62.2
Update for progress and other events
63.5
ò
63.5 Impact the CE
mits a programme

e programme PM may extend the period for reply

Ø 13.5
(mutually agreed)
e programme
ithin 2 weeks Ø No response within 2 weeks
ò
programme 31.3 C may notify PM of that failure
jecting programme No response for further 1 week
ò
31.3 Programme deem accepted by PM

Conditions for revising the programme

e.g. submit revised programme not longer than interval stated in the Contract Data
Withhold acceptance if more information is needed

pensation event,
ramme current at the dividing date.

nging an earlier decision, it refers to the date of that communication

Early warning

Ø Early Warning Register do not change the risk allocation

11.2(8) Definition of Early Warning Register

PM prepares the first Early Warning Register and issue to C within 1 week of the starting date.
15.2
PM instructs C to attend the first early warning meeting within 2 weeks of the starting date.

Early warning process

Step 1: Notify 15.1
13.7 Separate communication for each notification
Reasons
15.1 4 reasons under 15.1 Time, Cost & Quality
15.2 Matters that could increase C's total cost
X10.3 Adversely affect the creation or use of Information Model
X12.3 Matters affect the achievement of Partner's objectives
X29.3 Matters affect the achievement of Climate Change Requirements
ò
Step 2: Instruct a meeting 15.2
May instruct other people to attend if PM & C agrees
Timescale of early warning meeting
15.2 1st meeting: within 2 weeks of starting date
other meetings - when instructed by PM/C
other meetings - no longer than intervals stated in Contract Data
ò
Step 3: Mitigate 15.3
Ø Discuss how to avoid/reduce;
Ø seek solutions
15.3 Ø made decision;
Ø update;
Ø review
ò
Step 4: Update and issue 15.4
Ø Revise
15.4
Ø Issue the updated Early Warning Register to C

Failure to notify an early warning

1. PM fails to notify an early warning

31.2 Client agreed to an action in the programme
bullet 4
 31.2
bullet 4 Order and timing of the work of the Client
ò
15.1 Fail to notify as soon as they became aware of a problem
ò
C is compensated under CE
60.1(5)
Client or Others do not work within the times shown on the Accepted Programme

2. C fails to notify an early warning

C notifies a CE which should have been notified as an early warning
ò
61.5 C fails to give an early warning which an experienced C could, PM stated in the struction to C to submit quotatio
ò
63.7 the CE is assessed as if C had given the early warning
ò
C11.2(26) Disallowed Cost: costs incurred only because C did not give an early warning
D11.2(26)
E11.2(26)
F11.2(27)
Time, Cost & Quality
tion to C to submit quotation
Useful

10.1 Act as stated in this contract

10.2 Mutual trust & co-operation

13.1 Communication can be read, copied and recorded

13.3 PM/S/C to reply to a communication within the period for reply
13.4 Withhold acceptance if more information is needed
13.5 PM may extend the period for reply to a communication, mutually agreement

13.7 Separate communication for a notification or certificate (e.g. early warnings, defects, CE)
13.8 PM withhold acceptance for a reason stated in the conditions of contract

14.1 PM/S's acceptance of the work does not change C's responsility to Provide the Works or liability for its design
14.2 Delegation of PM/S's action
14.3 PM may give an instruction to change Scope or a Key Date
15.1 Reasons for giving early warning
15.2 Early Warning Register & early warning meeting
15.3 Aims of early warning meeting
16.1 C may propose to change the Client's scope for reducing the cost
16.2 Timescale to reply on C's proposal
16.3 Adding an area to Working Areas

17.1 PM/C notifies each other when aware of inconsistency/ambiguity

20.1 C Provides the Works according to the Scope.

20.4 Options C, D, E and F, C prepares the forecasts of Defined Cost in consultation with PM

21.2 C submits its design for PM acceptance as Scope requires

25.2 C not providing the services and the other things as stated in the Scope
25.3 the works does not meet the Condition stated for a Key Date by the date stated
 27.3 C obeys PM/S's instructinon in accordance with the contract

31.2 Items to be shown in the programme, including float & time risk allowance

32.1 Items to be shown in the revised programme

32.2 Conditions for revising the programme
34.1 PMI to stop or not start any works

36 Accleration

43.1 S's instruction to search for a Defect with reasons

50.3 Amount due at the assessment date
50.4 Payment to C if no application for payment has been submitted
50.5 Retention of 25% payment if no 1st programme (accumulative)
50.6 PM corrects any incorrect assessed payment in subsequent payment certificates
50.9 Finalising Defined Cost
51.1 Timescale for PM certifies a payment
51.2 Timescale for making the certified payment, interest for late payment
52.1 C'costs that are not included in the Defined Cost are treated as included in the Fee
52.2 C shall keep records and proof for open book inspection (Option C, D and E)
52.3 C shall keep records and proof for open book inspection (Option F)
52.4 Allow PM to inspect the accounts and records during working hours
54 Pain / Gain
60.1 21 reasons for CE
60.1(1) Change to the Scope
60.1(2) Access and use of the Site
60.1(3) Client providing something
60.1(4) Stop or not start any work
60.1(5) Client and Others working times and conditions
60.1(6) Replying to communications
60.1(7) Object of value
60.1(8) Changing decisions
60.1(9) Withholding acceptance
60.1(10) Instructions to search
60.1(11) Test or inspection causing delay
60.1(12) Physical conditions
60.1(13) Weather
60.1(14) Client's liability
60.1(15) Take over
60.1(16) Client provides materials, facilities and samples
60.1(17) Correction to an assumption
60.1(18) Breach of contract
60.1(19) Unforeseen events
60.1(20) A quotation for a proposed instruction is not given
60.1(21) Additional CE stated in CDP1
B60.4, D60.4 Difference between the final total quantity of work done and the quantity stated for an item in the Bill
B60.5, D60.5 A difference between the final total quantity of work done and the quantity for an item stated in the Bi
B60.6, D60.6 PMI to correct a mistake in the Bill of Quantities
60.1(17) Correction to an assumption which PM stated about a CE (is a reason of CE)
60.3 C is assumed to have taken account of the physical conditions more favourable to doing the work if there are inco
61.1 Notification of CE by PM due to instruction of change of earlier decision
61.2 PM instruction to C to submit quotations
61.3 Notification of CE given by C, Timescale for C gives NCE
61.4 Timescale for PM to reply C's NCE
61.5 C fails to give an early warning which an experienced C could, PM stated in the struction to C to submit quotatio
61.6 PM state assumptions about the CE in the instruction to C to submit quotations. Assessment is based on these as
62.1 Discussed with C, if practicable, PM may instruct C to submit alternative quotations.
62.2 Informations in the quotation, use latest Accepted Programme at the dividing date
62.3 Timescale for C to submit quotation
62.4 Timescale for C to submit revised quotation
62.5 Extension of time allowed for quotation submission/reply to a quotation

63.5 A delay to the Completion Date is assessed as the length of time that, due to the compensation event,
planned Completion is later than planned Completion as shown on the Accepted Programme current at the dividi
63.7 the CE is assessed as if C had given the early warning
63.8 Include time and cost risk allowance in the assessment of CE

63.10 Interpretation most favourable to the Parties who did not provie the Scope

65.1 PM's instruction to submit a quotation for a proposed instruction

65.2 C submit the propoesd instruction within 3 weeks of being instructed to do so by PM

66.3 The assessment of an implemented CE is not revised except as stated in these conditions of contract.

No early warning
61.5 C fails to give an early warning which an experienced C could, PM stated in the struction to C to submit quotatio
63.7 the CE is assessed as if C had given the early warning
C11.2(26) Disallowed Cost: costs incurred only because C did not give an early warning
D11.2(26)
E11.2(26)
F11.2(27)

80.1 Client's liabilities

81.1 Contractor's liabilities
83.3 Insurance to be provided by C unless provided by the Client

11.2(29) PWDD of Option A

11.2(30) PWDD of Option B
11.2(31) PWDD of Option C to F
11.2(32) the Prices for Option A and C
11.2(33) the Prices for Option B and D
11.2(34) the Prices for Option E and F
 Essay
Ø Direct
Ø Risk Managemagent & Communication (early warning)
Ø Reply
Ø Solution

Equipment: used to Provide the Works which does not required to be included in the works, e.g. temp. works

or liability for its design

tated for an item in the Bill of Quantities
for an item stated in the Bill of Quantities which delays Completion or the meeting of the Condition stated for a Key Date

ng the work if there are inconsisteny/ambituity within the Site Information

tion to C to submit quotation

ssment is based on these assumptions. PM notifies correction of assumptions if it is found wrong.

pensation event,
ramme current at the dividing date.

ons of contract.

tion to C to submit quotation

works, e.g. temp. works
for a Key Date
Compensation Events

Ø Time & cost

Sources of CE
Ø 60.1 21 reasons
Ø B60.4, D60.4 Difference between the final total quantity of work done and the quantity stated for an item
B60.5, D60.5 A difference between the final total quantity of work done and the quantity for an item state
B60.6, D60.6 PMI to correct a mistake in the Bill of Quantities
Ø X2.1 Changes in the law
Ø X12.3(6), (7) Collaboration
Ø X14.2 Advanced payment
Ø X15.2 C corrects a Defect for which it is not liable under the contract in his design
Ø Y2.5 Suspension of performance (due to the outstanding payment)
Ø Potentially additional CE in CDP1 and/or Z Clauses

Reasons of CE
Ø A change of mind/decision
Ø Failure to do something (many related back to the programme)
Ø Something has happened that is beyond a specified reasonable risk level

Summary of CE clauses
60.1(1) Change to the Scope 14.3, 27.3 and 45
60.1(2) Access and use of the Site 33.1
60.1(3) Client providing something 31.2
60.1(4) Stop or not start any work 34.1
60.1(5) Client and Others working times and conditions 31.2
60.1(6) Replying to communications 13.3
60.1(7) Object of value 73.1
60.1(8) Changing decisions -

13.4, 13.8, 16.

60.1(9) Withholding acceptance 26.3, 31.3, 40.2, 8
X14.2, X16.3

60.1(10) Instructions to search 43.1

60.1(11) Test or inspection causing delay 41.5
60.1(12) Physical conditions 60.2 and 60.3
60.1(13) Weather -
60.1(14) Client's liability 80.1
60.1(15) Take over 35.2
60.1(16) Client provides materials, facilities and samples 41.2
60.1(17) Correction to an assumption 61.6
60.1(18) Breach of contract -
60.1(19) Unforeseen events 19.1
60.1(20) A quotation for a proposed instruction is not given 65
60.1(21) Additional CE stated in CDP1 Contract Data

60.1(13) C takes all weather risk AFTER the Completion Date (not CE), only BEFORE the Completion Date is CE
60.1(15) Take over works before BOTH Completion and the Completion Date is CE
Ø X7.3 If Client takes over the works before Completion and after the Completion Date, DD is reduced from t

Correction of assumptions in quotation

61.6 PM state assumptions about the CE in the instruction to C to submit quotations. Assessment is based on these as
ò
60.1(17) PM notifies C of a correction of assumption which PM stated about a CE
 63.8 Include time and cost risk allowance in the assessment of CE

Propoase instructions
65.1 PM's instruction to submit a quotation for a proposed instruction
ò
65.2 C submit the propoesd instruction within 3 weeks of being instructed to do so by PM
ò
65.3 If quotation is not accepted, it is a CE. 60.1(20)

Contractor's fault
60.1(XX) The C may submit a NCE under 60.1(XX).
ò
61.3 C gives NCE when C believes it is a CE
ò
61.4 PM check against the 5 scenarios and reply C's NCE
Ø Response within 1 week after the issue of NCE
Ø A longer period to which the C has agreed
Result: The event arises from a fault of C, PM notifies C that the Prices, the Completion Date and the Key Dates are not to b

IF PM fails to reply
61.4 PM fail to reply C's NCE within the period allowed
ò
61.4 C may notify PM of that failure
ò
61.4 Failure continue for further 2 weeks
ò
61.4 C's NCE is deemed accepted, and the event is a CE and C is required to submit quotations

Commercial management
(I) Notificaion of CE
Notification of CE by PM
61.1 PM is requried to notify C for CE under clauses 60,1(1), (4), (7), (8), (10), (15), (17) & (20)
13.7 Separate communication for each notification
ò
61.2 PM instruction to C to submit quotations in the NCE except events
Ø arises from a fault of C
Ø No effect upon the Defined Cost ,Completion or meeting a Key Date

IF C fails to notify a early warning / NCE

61.3 C lost the right to entitle the CE if fail to notify CE within 8 weeks of becoming aware of

61.5 C fails to give an early warning which an experienced C could, PM stated in the struction to C to submit quotatio
ò
63.7 the CE is assessed as if C had given the early warning

(II) Submit quotations for CE

62.1 PM may instruct C to submit an alternative quotation
or
61.4 PM instructed C to submit quotation
ò
62.2 Informations in the quotation, use latest Accepted Programme at the dividing date
63.8 Allows the time and cost risk allowances in the assessment
63.9 Assessment are made on the basis of C acts competently and promptly, and time and cost are reasonably incurred
 ò
62.3 C to submit quotations within 3 weeks of being instructed
or
62.5 (ii) PM to extend the time allowed with PM and C agreement

(III) Assessment of CE
PM action
62.3 Ø Acceptance of quotation
62.3 Ø Instruction to submit a revised quotation
62.3 Ø Notification that PM will make its own assessment

(A) quotations submitted by C

ò (B) Revised quotation requ
62.3 (i) PM to reply C within 2 weeks of the submission ð 62.4 (i) C to submit the revised
or
62.5 (ii) PM to extend the time allowed with PM and C agreement 62.5 (ii) PM to extend the time
ò ò
62.3 Quotations is accepted by PM 62.3 (i) PM to reply C wi
ò
66.1 CE is implemented 62.5 (ii) PM to extend the time

62.3 Quotations is accept

ò 66.1 CE is impleme
IF PM fails to reply within the time allowed,
ò
62.6 C may notify PM of that failure
No response for further 2 weeks
ò
62.6 Quotations deem accepted by PM
ò
66.1 CE is implemented
66.3 The assessment of an implemented CE is not revised except as stated in these conditions of contract.
Proposed Instruction
65.1 PM instructs C to submit quotation for a proposed instruction
ò
65.2 C to submit quotation within 3 weeks

PM action
65.2 Ø Acceptance of quotation
65.2 Ø Instruction to submit a revised quotation
65.2 Ø Notification that the quotation is not accepted ð 60.1(20) C is compensated for the c
65.3 PM may issue instruction a
If PM does not reply to the quotation within the time allowed,
the quoation is NOT accepted.
e quantity stated for an item in the Bill of Quantities
he quantity for an item stated in the Bill of Quantities which delays Completion or the meeting of the Condition stated for a Key Date

n his design

14.3, 27.3 and 45

13.4, 13.8, 16.3, 21.2, 23.1, 24.1, 26.2,

26.3, 31.3, 40.2, 84.1, X4.2, X10.4(2), X13.1,
X14.2, X16.3, X22.2(2), Y1.4, Y1.6

60.2 and 60.3

82.2
 82.2
X7.3

Contract Data

ompletion Date is CE

Date, DD is reduced from the date on which the part is taken over.

ssment is based on these assumptions. PM notifies correction of assumptions if it is found wrong.

nd the Key Dates are not to be changed and stated the reasons in the notification. No quotation is required to be submitted.

X1: Price fluctuation

X6: Bonus for early completion
X7: Delayed damages
 Notification of CE by C
61.3 C is requried to notify PM for CE under clauses 60,1(2), (3), (5), (6), (9), (11), (12), (13), (1
61.3 C lost the right to entitle the CE if fail to notify CE within 8 weeks of becoming aware of
ò
61.4 PM check against the 5 scenarios and reply C's NCE
Ø 61.4 (i) Response within 1 week after the issue of NCE
Ø 61.4 A longer period to which the C has agreed

ò
61.6 PM may state the assumptions of quotations (Optional)
or
62.1 PM requests alternative quotations (Optional)
tion to C to submit quotation ò
C submits quotations

IF PM failes to reply to NCE

61.4 PM fail to reply C's NCE within the period allowed
ò
61.4 C may notify PM of that failure
ò
61.4 Failure continue for further 2 weeks
ò
61.4 C's NCE is deemed accepted, and the event is a CE and C is required to submit quotations

cost are reasonably incurred

(B) Revised quotation requiring reasons to be stated ð (C) If C not submit a quota
(i) C to submit the revised quotations within 3 weeks of being instructed 64.1 PM made his own assessm
or ò
(ii) PM to extend the time allowed with PM and C agreement 64.3 PM notifies C the assessme
ò ò
(i) PM to reply C within 2 weeks of the submission IF PM fails to assess the CE within th
or ò
(ii) PM to extend the time allowed with PM and C agreement 64.4 C may notify PM of t
ò No response for furth
Quotations is accepted by PM
ò 64.4 Quotations deem accep
CE is implemented
66.1 CE is impleme
ons of contract.
C is compensated for the cost in preparing the quotation
PM may issue instruction as a CE and instruct C to submit a quotation
tion stated for a Key Date
o be submitted.
), (6), (9), (11), (12), (13), (14), (16), (18) & (19)
eks of becoming aware of

e of NCE
greed

uired to submit quotations

 (C) If C not submit a quotation within time limit
PM made his own assessment of CE
ò
PM notifies C the assessment of CE and gives details of assessment within 3 weeks
ò
ls to assess the CE within the time allowed (3 weeks),
ò
C may notify PM of that failure
No response for further 2 weeks
ò
Quotations deem accepted by PM
ò
CE is implemented
Insurance

80.1 Client's liabilities

81.1 Contractor's liabilities
83.3 Insurance to be provided by C unless provided by the Client
X10 C's PII for Information Modelling
X15 C's PII for C's design

Risk allocation
Client could change the risk allocation by
Ø include additional Client's liability in CDP1
60.1(14) become a CE
82.2 Client will pay back to C for items liable by the Client
80.1
C does not have to insure against Client's liabilities
83.3
Ø include additional CE in CDP1
60.1(21) become a CE
Ø through Option Z clauses
Payment

50.1 PM decide the 1st assessment date, no later than the assessment interval after the starting date until
Ø S issues the Defects Certificate or
Ø PM issues a termination certificate
50.1 PM assesses payment amount due
50.2 C submits an application for payment details how the amount has been assessed

Final Assessment
53.1 final assessment at 4 weeks after the issue of Defects Certificate or
53.1 final assessment at 13 weeks after termination certificate

50.4 Amount of payment to C if no application for payment has been submitted

50.5 Retention of 25% payment if no 1st programme (accumulative)

50.6 PM corrects any incorrect assessed payment in subsequent payment certificates

51.1 PM certifies a payment within 1 week of each assessment date

51.2 Each certified payment is made within 3 weeks of the assessment date, interest for late payment
11.2(10) Fee = fee percentage x Defined Cost
Option A
Price for Work Done to Date
11.2(29) PWDD: (1) each group of completed activities; and (2) each completed activity which is not in a group
A completed activity is one without notified Defects the correction of which will delay following work.
Option B
11.2(30) PWDD: (1) total quanity of the work which C has completed for each item in the BQ x rate; and (2) a proportion
Completed work is the work without notified Defects the correction of which will delay following work.

Option C&D
11.2(31) PWDD: Total defined cost which PM forecasts will have been paid by C before the next assessment date plus the
Option E
11.2(31) PWDD: Total defined cost which PM forecasts will have been paid by C before the next assessment date plus the

Option E
11.2(31) PWDD: Total defined cost which PM forecasts will have been paid by C before the next assessment date plus the

52.1 All the C's cost that are not included in the Defined Cost are treated as included in the Fee.
Defined Cost:
Ø Amounts calculated using rates and percentages stated in the Contract Data
Ø Other amounts at open market or competitively tendered prices with deduction for all discounts, rebates and taxes
Option F

Schedule of Cost Components

11.2(24) used under Options C, D and E
SCC is not used for Option F
Items in the SCC shall only be counted only if incurred for Providing the Works

Short Schedule of Cost Components

11.2(23) used under Options A and B
Items in the SCC shall only be counted only if incurred for Providing the Works

52.1 C'costs that are not included in the Defined Cost are treated as included in the Fee
Disallowed Cost
11.2(26) Options C, D and E
11.2(27) Option F
to motivate C to work efficiently
Ø is not justified by C's accounts and records
Ø should not have been paid to a SubC or supplier in accordance with its contract
Ø was incurred because C did not
﹡ follow an acceptance or procurement procurement stated in the Scope
﹡ give an early warning which the contract required it to give
﹡ give notification to PM of the preparation for and conduct of an adjudication or proceedings of a tribun
Ø and the cost of
﹡ correcting Defects after Completion
﹡ correcting Defects caused by the C not complying with a contraints on how it is to Provide the Works
﹡ Plant and Materials not used to Provide the Works (after allowing for reasonable
resources unless
wastage) not used to Provide
resulting fromthe Works to
a change (after allowing for reasonable availability
the Scope
﹡ and utilisation) or not taken away from the Working Areas when the Project Manager
﹡ preparation
requested andfor and conduct of an adjudication, payments to a member of the Dispute
Avoidance Board or proceedings of the tribunal between the Parties.

Open book inspection

52.2 Options C, D and E 52.3 Option F
C shall keep records and proof for open book inspection
52.4 Allow PM to inspect the accounts and records during working hours

50.9 C notifies PM the Defined Cost for part of the works has been finalised and make available for inspection by PM
ò
PM reviews within 13 weeks
Ø accepts
 Ø notifies C for further records
Ø notifies C of errors in the assessment
ò
C provide further record or advise correction of errors in the assessment within 4 weeks
ò
PM reviews the revised records within 4 weeks
Ø accepts
Ø notifies C of correct assessment
ò
If PM fails to notify a decision within the time stated, the C's assessment is treated as correct.

Once finalised, C can not claim further costs for that part of works and the Defined Cost is not subject to further

Option A
11.2(32) The Prices are the lump sum prices for each of the activities on the Activity Schedule unless later changed in acc

Option B
11.2(33) The Prices are the lump sums and the amounts obtained by multiplying the rates by the quantities for the items in

Option C
11.2(32) The Prices are the lump sum prices for each of the activities on the Activity Schedule unless later changed in acc

Option D
11.2(33) The Prices are the lump sums and the amounts obtained by multiplying the rates by the quantities for the items in

Option E
11.2(34) The Prices are the forecast of the total Defined Cost for the whole of the works plus the Fee

Option F
11.2(34) The Prices are the forecast of the total Defined Cost for the whole of the works plus the Fee

Forecasting the total Defined Cost

20.4 Options C, D, E and F, C prepares the forecasts of Defined Cost in consultation with PM
ting date until
h is not in a group
y following work.
 x rate; and (2) a proportion of lump sum which is the proportion of the work covered by the item C has completed
ay following work.

ext assessment date plus the Fee

ext assessment date plus the Fee
ext assessment date plus the Fee

discounts, rebates and taxes which can be recovered

on or proceedings of a tribunal between C and a SubC or supplier

w it is to Provide the Works stated in the Scope

ailable for inspection by PM

ost is not subject to further audit by the Client

unless later changed in accordance with the contract.

he quantities for the items in the Bill of Quantities

unless later changed in accordance with the contract.

he quantities for the items in the Bill of Quantities.

Others

16.3 Addint to the Working Areas Working Area concept used in SCC and SSCC, affects pay
16.3 Ambiguities and inconsistencies

Acceleration
36.1 PM/C may propose acceleration
PM instructs C to submit quotation stating change of Key Dates and Completion Date
ò
C provide quotation within 3 weeks
ò
PM replies to the quotation within 3 weeks

36.2 Quotation with

Ø proposed changes to the Prices
Ø revised programme showing the earlier Completion Date and the changed Key Date

36.3 PM changes the Prices, the Completion Date and Key Dates and accept the revised programme
SCC and SSCC, affects payment
Dispute

W1: SR ð Adjudicator ð Tribunal (with deadlines for referral to SR)

W1
ò
W1.1(1) Refer the dispute to SRs FAIL to meet deadline
W1.1 Timescale in the Dispute Reference Table ð W1.3(2)
ò
W1.1(2) Each party submit statement within 1 week
ò
W1.1(3) SRs attend meeting to resolve dispute over
a period of no more than 3 weeks
ò
W1.1(3) SR produces a list of issues agreed and issues not agreed
ò
W1.1(3) PM and C put into effect the issued agreed
ò FAIL to meet deadline
W1.3(1) Dissatisfied party issue a notice of adjudication ð W1.3(2)
to other party and PM within 2 weeks
W1.3(2) PM may extend the deadline if PM and C agree
ò FAIL to meet deadline
W1.3(1) Dispute is referred to the Adjudicator within 1 week ð W1.3(2)
W1.3(2) PM may extend the deadline if PM and C agree
ò
W1.3(3) Provide information to the Adjudicator within 4 weeks
W1.3(3) the deadline may be extended if the Adjudicator, the Parties agree
ò
W1.3(8) The Adjudicator decides the dispute and inform parties
and PM its decision within 4 weeks upon receiving information
W1.3(8) the deadline may be extended if the Parties agree
ò
W1.3(9) Adjudicator's decision is binding on the Parties
unless and until revised by the tribunal
ò
W1.4(3) The dissatisfied Party must notify the Parties within 4 weeks for referring
the dispute to the tribunal.
W1.3(10) A Party does not refer a dispute to the Adjudicator that is the same or substantially the same as one that has been

W1
ò
W2.1(2) Each party submit statement within 1 week
ò
W2.1(3) SRs attend meeting to resolve dispute over
a period of no more than 3 weeks
ò
W2.1(3) SR produces a list of issues agreed and issues not agreed
ò
W2.1(3) PM and C put into effect the issued agreed
ò
W2.2(1) Dissatisfied party issue a notice of adjudication
to other party and PM at any time whether or not the dispute has been
referred to SRs
ò
W2.3(2) Dispute is referred to the Adjudicator within 1 week
ò
W2.3(4)
The Adjudicator decides the timetable and procedure to be followed

ò
W2.3(8) The Adjudicator decides the dispute and inform Parties
and PM of the decision and reasons within 28 days
the deadline may be extended to 14 days if the Parties agree
ò
W2.3(11) Adjudicator's decision is binding on the Parties
unless and until revised by the tribunal
ò
W2.4(2) The dissatisfied Party must notify the Parties within 4 weeks for referring
the dispute to the tribunal.
dlines for referral to SR)

FAIL to meet deadline

Neither party may subsequently refer it to the SRs, Adjudicator or the tribunal.

FAIL to meet deadline

Neither party may subsequently refer it to the Adjudicator or the tribunal.

FAIL to meet deadline

Neither party may subsequently refer it to the Adjudicator or the tribunal.
e same as one that has been referred to the Adjudicator.
Project Closure

C has corrected notified Defects which would have prevented the Client from using the works or Others from doi
C has done all the works which the Scope states is to be done by the Completion Date

35.1 Client need not to take over the works before the Completion Date if stated in CDP1
35.1 Otherwise, the Client takes over with 2 weeks of Completion
35.2 The Client may use any part of the works before Completion is certified.
The Client takes over the part of the works when it begins to use except
Ø for a reason stated in the Scope; or
Ø to suit C's method of working

60.1(15) it is a CE for taking over a part of the works BEFORE BOTH Completion and Completion Date

X7.3 Take over before Completion but AFTER Completion Date, C is in delay, is not a CE

Defect Certificate
Ø issued by S at
the defects date if there are no notified Defects; or
the earlier of the last defect correction period and the date when all notified Defects have been corrected

defects date runs from "Completion of the whole of the works" instead of sectional Completion or take over
 50.1 PM assess the amount due at each assesment date
50.1 until (1) S issues the Defects Certificate or PM issues a termination certificate
51.2 Late payment attracts interest

uncorrected Defects
46.1 uncorrected Defects with access given to C
46.2 uncorrected Defects without access given to C

Pain/Gain Share
54.1 Option C
54.5 Option D
PM make an assessment of C's share

Preliminary assessment
54.3 Option C
54.7 Option D
Preliminary assessment made at the Completion of the whole of the works

Final Assessment
54.4 Option C
54.8 Option D
Final assessment made after the Defects Certificate is issued

Option C: use the total of the Prices

Option D: use the Total of the Prices

54.2 Ø If the Price for Work Done to Date < total of the Prices, C is paid its share of the saving
Ø If the Price for Work Done to Date > total of the Prices, C paid its share of the excess
54.6 Ø If the Price for Work Done to Date < Total of the Prices, C is paid its share of the saving
Ø If the Price for Work Done to Date > Total of the Prices, C paid its share of the excess

Final Assessment
53.1 final assessment at 4 weeks after the issue of Defects Certificate or
53.1 final assessment at 13 weeks after termination certificate
53.2 Final payment is made within 3 weeks of the assessment date

53.2 If PM fails to make assessment within the time allowed, C may issue to the Client an assessment of final amount
ò
If Clients agrees with the assessment, final payment is made within 3 weeks of the assessment date
 53.3 An assessment of the final amount due is conclusive evidence unless disputed in accordance with procedures in th

Termination
90.1 Either Parties wish to terminate the contract, notify PM with reasons for termination
PM issue the termination certificate if complies with reasons in the Termination Table
90.2 Reasons in the Termination Table
90.3 PM implements procedures for termination upon the issue of termination certificate

50.1 PM makes no further normal assessment

90.3 Existing certified payment may be withheld if meets reasons in 90.3
53.1 final assessment at 13 weeks after termination certificate
he works or Others from doing their works

ave been corrected

or take over
 of the saving
the excess
e of the saving
of the excess

assessment of final amount due, giving details of how the final amount due has been assessed.

sessment date
rdance with procedures in the contract.